[lemma=revenue] [lemma=be | □=□ | □] □
[lemma=revenue] [lemma=be | tag=□ | □] □
[lemma=revenue] [lemma=be | word=□ | □] □
Sales , general and administrative costs continued to be incurred , but no satellite revenues were recognized from an accounting standpoint . The audit recommended that the SEPA Section report revenues using the modified accrual basis of accounting , that revenues be recognized when they become measurable and available and that the corrected revenue totals and the current accounts receivable balance be reported to the Office of Financial Management . Traditionally , in a software licensing model , the customer paid up-front and the revenues were recognized up-front . The Company records installation and set-up fees as deferred revenue and recognize these fees ratably over the life of the customer contract . We record installation and set-up fees as deferred revenue and recognize these fees ratably over the life of the customer contract . In contrast , under the NTL method , revenue was recognized at the time of the delivery or shipment of the equipment . This category includes instances in which : revenue was improperly recognized , questionable revenues were recognized , or any number of other mistakes or improprieties that led to misreported revenue . Where some elements of customer orders had not been delivered at the date revenue was recognized , including future software upgrades ; or where interim product solutions were provided pending availability of a new release of a particular optical product . Interest receivable and interest revenue are recognized on all loans at the stated rate in the student 's promissory notes or , in cases of judgment , court-mandated rate . According to the Order , revenue also was recognized through the following improper practices : recognizing revenue in one quarter , when products were shipped to warehouses leased by Sensormatic , instead of in the next quarter , when the products were shipped to the customers ; slow shipments , whereby revenue was recognized on shipments which were made during the last days of a quarter but which were not scheduled to arrive at the customers ' location until well into the next quarter ; and recognizing revenue on goods at the time that they were shipped to customers even though the customers ' contracts with Sensormatic contained an FOB destination provision . The lawsuits , which are still pending , have accused Network Associates of " channel stuffing , " where revenues were recognized for products sold into the distribution channel , which were subject to return . " Manipulation of the computer clock allowed April shipments to be recorded as March revenue because the computer clock controlled the date that was printed on the company 's invoices and the date on which the revenue was recognized . At year-end 1998 , purported sales revenue was recognized from the shipment of millions of dollars of product between company-controlled warehouses . In addition , the actual royalty payments did not have to be paid until 60 days after the revenues were recognized .