Deferred Revenue (upfront fees) Explained

IN this session, I explain deferred revenue specifically how to treat upfront fee during the revenue recognition process.
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[@subhalkhanna9886]

I just read the annual report of sabre,they instead amortisize the upfront fees on a straight line basis, is that allowed ?

[@user-pe9fv5co5g]

how recognition one year non refundable fee subscription and if renewable

[@smartbusinessbroker]

WHY would they go with the 2 year estimate instead of the 1 year contract? The 1 year contract is legally enforcible, the 2 year expected contract duration isn't.

[@AccountingLectures]

You want to spread the revenue by estimating how long on average the customer keeps the contract. The &50 should be allocated over the life of the contract. Are you a studnet or studying for the CPA exam?

[@debasisjana1986]

@@AccountingLectures I think sir, if entity gives the material right to customer that means let say 2nd year activation fees are free then we can extend the recognition period to 2nd year otherwise it will be one year.

[@subramanianvenkataraman593]

Useless