She says that properly acknowledging and reporting deferred revenue is a requirement to comply with Generally Accepted Accounting Principles (GAAP.) She explains, “Following U.S. GAAP ...

Unearned revenue is a liability because it represents a company’s obligation to deliver goods or services in the future.

Service revenue is reported on the income statement under operating revenues, reflecting earnings from core business ...

Taxable temporary differences occur when the taxable revenue in ... in treatment between accounting and tax rules regarding goodwill, a temporary difference arises. Deferred tax liabilities ...