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    Bluesea's Avatar
    Bluesea Posts: 9, Reputation: 1
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    #1

    Oct 8, 2009, 12:13 PM
    Straight line method under proportional performance
    Can someone please show me how to calculate revenue recognition under proportional performance by straight line method over the fixed period?
    If I have a contract for service for 1 year paid in advance ($5000), how do I calculate revenue recognized only for 1 month period? Than kyou.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Oct 9, 2009, 11:19 PM

    I'm not familiar with the term "proportional performance," but it just sounds like you got paid a year in advance and are recognizing income on an allocated basis. If $5000 is one year, then a month is just 1/12th of that.
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