SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?


To: jhg_in_kc who wrote (4104)1/30/1999 5:30:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 41369
 
Okay, deferred revenue is cash you got for something you haven't yet delivered. It's like the unfilled portion of a magazine subscription, where the subscriber has paid in advance. An advertising backlog is the contractual obligations that advertisers have made to you. In other words, I you tell me that you want me to run an ad for JHG products, and sign a contract, and assuming I have not yet run the ad, that is a backlog. If you paid for the ad in advance, it is not only a backlog (which is not a balance sheet item), but it is now also a deferred revenue item (which is a balance sheet item, a liability).
Hope this helps,
TTFN,
CTC