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imported>Doug Williamson |
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| ''Financial reporting''. | | ''Eurozone - stock indices.'' |
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| Income for which payment has been received by the business, but which has not yet been earned.
| | The Euro Stoxx 50 is an index of 50 leading large capitalisation and liquid stocks in the Eurozone. |
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| <span style="color:#4B0082">'''''Example: Five year licence'''''</span>
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| Our accounting year runs from 1 January to 31 December.
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| One of our customers has paid us in advance, at the start of January for a five-year licence.
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| We recognise the revenue in our income statement spread over the full five years.
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| At the end of the first year 4/5 of the total received from the customer is Deferred income.
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| We have a liability / obligation to provide a further four years of service, for which we have already been paid in advance.
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| Deferred income is recorded as a credit balance in the balance sheet.
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| (The related accounting entries for the initial receipt being DEBIT Cash and CREDIT Deferred income.)
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| Deferred income is a liability of the reporting entity to provide the services that the customer has already paid for.
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| For reporting presentation purposes it is often aggregated with Accruals, as 'Accruals and deferred income'.
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| == See also == | | == See also == |
| * [[Accrual]] | | * [[Eurozone]] |
| * [[Accruals accounting]] | | * [[FTSE]] |
| * [[Accrued expense]] | | * [[Index]] |
| * [[Accrued income]] | | * [[S&P]] |
| * [[Balance sheet]]
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| * [[Credit]]
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| * [[Debit]]
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| * [[Financial reporting]]
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| * [[Liabilities]]
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| * [[Prepayment]]
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| * [[Reporting entity]]
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| * [[Revenue]]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:The_business_context]] |
| | [[Category:Financial_products_and_markets]] |
Revision as of 19:14, 14 April 2019
Eurozone - stock indices.
The Euro Stoxx 50 is an index of 50 leading large capitalisation and liquid stocks in the Eurozone.
See also