Hey all, ARM - memberships - we have Annual member...
# arm
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Hey all, ARM - memberships - we have Annual memberships and have the rev rec rule based on 12 months. Let’s say a membership was purchased on 01/01/2024 and ends 12/31/2024 - after 3 months 31/03/2024 membership is cancelled. Currently, we are recognising the membership monthly and releasing it from the Balance Sheet so would have the revenue for the first 3 months. Now its been cancelled, ideally everything should now be recognised straight away so by 31/03/2024, we should have the remainder of the revenue being released from the Balance sheet and also the 12 months cancellation amount should be as well however what’s happening is the remainder is still being released till December and since the cancellation was in March, it starts to release 12 months from then.. any idea how once its cancelled, we can have the remainder of both hit straightaway? (screenshot of revenue recognition rule)