In the nineties, when the business first came to our lands, the calculation of indicators of its effectiveness was conducted fairly simple - if the money is received, then all is well and you can walk, but if there is no money, then nothing to talk about.In fact, the concept of profit is not there, and had a value of only the money from the founders were on hand.In principle, at the time, this approach made sense, because the entrepreneur had no idea how long it will survive his business, and how long he can live.
but fortunately times have changed, and today we can talk about a certain stability to our economy and to calculate profit, as is done in the West, on the basis of factors that the company is there virtually forever.And hence, profits must be determined for each individual period, depending on how much over this period was really earned it, no matter when the account of the receipt of money.Since the company is not going to be closed, the movement of money is of secondary importance, whereas the objective reflection of the profit in accounting allows to make important management decisions.
Deferred income just relate to the situation, when the arrival of money into the account and the actual receipt of income are different.In this case, we can say that the money was received earlier than the company has made the necessary efforts in order to earn them.As you know, records of income necessary to keep the organization on the fact of her actions of an economic nature (production of goods, its shipment actually providing the service to the client, etc.).However, how to determine the exact date on which the income would be attributed?
It's pretty simple.In the case of commodities, it is believed that the company earned money when these items become the property of the buyer.In the case of services, if the service has been provided, for example, the client was shorn.Movement of the money associated with the concept of liquidity of the business, but not to its profit.
fact that the money that the buyer should be responsible for product or service to the seller, called accounts receivable, you probably know.However, what to do in cases where the buyer makes an advance payment and only then receives the goods or use the services of the company?This is where we come to the aid and deferred income.Prepayment - is common to pay for internet, rent, etc.Here the customer has made a payment for two years, but really have not taken advantage of their right to stay in the apartment.So, you can not record the revenue, however, and accounts payable, too, because in reality, the company did the client does not have to.Therefore, use deferred revenue, reflecting the fact that the income is received, but some time later.
including deferred income is used in some other cases, other than the company receives payment.First of all, it's - the receipt of gifts, grants and other such not expected company earnings.Record all income in the period under review, one would be wrong, so the accountant carries his different periods, and the amount that will be recorded in earnings in the future, it remains on the account "deferred income".
Later, in the course of making the company the real income by, for example, the provision of services for the rental of premises, accountant prepdriyatiya increases profits, writing off deferred revenue.
As you can see, the general sense of accounting for future income is not a big deal.Problems, however, may arise in determining the exact amount that should be left in the account, and in determining at what point should be carried out directly with a write-off.This ability to distinguish a professional accountant, who is always in your choice guided by the interests of the company.
