What is PartsBase.coms revenue recognition policy?
When an annual subscription is sold, PartsBase.com only records 1/12 the revenue in the month we make the sale. The rest of the revenue is recorded over the next 11 months of the subscription. Commissions to our salespeople for the sale are recorded in the month incurred. Therefore expenses hit us immediately while the revenue is spread out over 12 months. This obviously is the most conservative method of accounting for this type of revenue.
