Deferred Income
/dɪˈfɜːrd ˈɪnkʌm/
Definitions
- (n.) Income received but not yet earned, and thus recorded as a liability on the balance sheet until earned.
The company reported deferred income from advance payments received for services to be rendered next year.
Forms
- deferred income
Related terms
See also
Commentary
Deferred income reflects a timing difference in revenue recognition to comply with accrual accounting principles.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.