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How do we treat negative Net Distributive Income (NDI) when computing total revenue?

April 26, 2017computing distributive income NDI negative NET revenue total treat

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How do we treat negative Net Distributive Income (NDI) when computing total revenue?

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If NDI is a negative number, then we treat it as a negative number when computing total revenue. Keep in mind that you only subtract NDI to the extent it is included in total revenue. Based on this language, you only exclude from revenue the income items; there is no “exclusion/deduction” for the expense items as the expense items were not included in revenue.