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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Israel who wrote (67845)	5/15/2002 6:33:52 PM
From: BWAC	Read Replies (1) \| Respond to of 99280

<In slow periods, however, companies are tempted to bring deferred revenues into the current quarter> Possibly during the 'slow period' the company was able to allocate more personnel and resources to completing the deferred revenue work? Thus due to the completed work, deferred revenue is brought to the current quarter. After all in most cases this deferred revenue has already been paid for and reflected in cash or accounts receivable. Get the work completed, free resources for new projects or revenues. "Tempted" infers improper. When the work is finished or certain milestones of the project are met then it becomes revenue. Even if it is ahead of schedule. Thats the proper treatment. So rather than wildly speculate about a misdeed, why not first think about what operating events might have occured to explain the question or difference.