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To: Sarmad Y. Hermiz who wrote (196682)	5/13/2006 11:38:43 PM
From: firthoffourth	Read Replies (1) \| Respond to of 275872

Deferred revenue is a liability that is created when monies are received by a company for goods and services not yet provided. Revenue will be recognized, and the deferred revenue liability eliminated, when the services are performed. Deferred revenue stems from the accounting concept of revenue recognition, under which revenues are recognized only when the earnings process is complete. If funds are received and no goods or services have yet been provided, the process is not complete; thus revenue cannot be recognized, and a deferred revenue liability is recorded. investorglossary.com