REVENUE REPORTING CHALLENGES Challenge One: Customers Pay in Advance For some businesses, customers pay in advance of receiving the service or product. Examples include magazine subscriptions, insurance policies, and service contracts. For these types of products, there is no uncertainty about collectibility. The only question is when the revenue will be earned. Challenge Two: Products or Services Provided over Multiple Periods It can also be difficult to assess whether to recognize revenues for products or services that are provided over multiple years. These may or may not be paid in advance. Q. Explain the two challenges of reporting revenue with relevant examples.