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My question is : how should be treated unearned revenue when recognition as revenue is to be in 3 years, for example ? whether time value of money should be ignored or not?
Revenue received not earned should be treated as a liability(deferred income) and recognised over the period in a way which
reflects how its earned eg.straight line method. For a period of 3 yrs, time value would be material so discounting would apply.
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