Slide 17
Slide 17 text
Calqulate
Revenue recognition example
• Contract length 12 months
• Contract value 1,000 EUR/month, billed and paid annually
• Payment 12,000 EUR on month 1
• Revenue recognized in the Profit&Loss 1,000 EUR / month
• Advance payment in the Balance Sheet reduced by 1,000
EUR/month
Month 1 Month 2 Month 3 Month 4 Month 5 Month 11
Month
12
Cash payment 12,000.00
Revenue in P&L 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Deferred Revenue in
BS 11,000.00 10,000.00 9,000.00 8,000.00 7,000.00 1,000.00 -