Is unearned revenue counted as part of the Revenue line on the IS?

[quartermile]

(Under IFRS/GAAP).

I have just completed a question which inferred that unearned revenue is included in the Total Assets line on the BS, but i wondered how it would be accounted for on the IS?

Thanks

[S2000magician]

@quartermile

I have just completed a question which inferred that unearned revenue is included in the Total Assets line on the BS

First, it didn’t infer it. You inferred it. It implied it.

Second, it didn’t imply it. Unearned Revenue is a liability, not an asset.

@quartermile

. . . i wondered how it would be accounted for on the IS.

That’s easy: not at all.

[quartermile]

Thank you magician. Appreciate both the FRA and grammar* learnings.

• I note that grammar is not the right word either here, what I was looking was the word to mean using the right word, but alas my lexicon fails me.

[S2000magician]

My pleasure.

[StrategyGuy]

No. Unearned revenue is a current liability. It is usually created when a company invoices a customer for goods or services it hasn’t yet provided. When it provides the goods or services, it debits Unearned Revenue (on the Balance Sheet) and credits Revenue (on the Income Statement).