As a CPA firm member, I have concerns about the agency's current revenue recognition method at the time of advanced billing. This approach may not adhere to GAAP or IFRS principles, which require recognizing revenue when it is earned and realizable typically when the service is performed, such as when the advertising appears in the media. Recognizing revenue as billing could lead to premature recognition, causing a mismatch between revenue and expenses and potentially distorting financial statements. Evaluation of alternative revenue recognition points: 1. **Advanced Billing**: Provides immediate revenue recognition and a predictable cash flow but risks premature revenue recognition if contracts are altered or canceled. 2. **Payment Received**: Aligns revenue with cash inflows, reducing uncollectible accounts but may not reflect when the service is performed, causing potential delays and mismatches with expenses. 3. **When Advertising Appears**: Aligns revenue with service performance, ensuring accurate recognition when earned. However, it may delay revenue recognition, affecting cash flow and financial forecasting. 4. **When Media Bill is Received**: Matches revenue with expenses for precise reporting but may cause timing issues if there are delays between service delivery and billing. Recognizing revenue when the advertising appears is the most aligned with revenue recognition principles