DD Support Board and Research Team

[CHUNKY44]

? I think you just proved my point.

"We offset deferred revenue with the associated accounts receivable obligations in connection with our sales of licenses and first year PCS for any contracts which required deferral as of the end of a reporting period under SOP 97-2."

Quest netted the def rev against the associated A/R and did not show them on the balance sheet, then provided the guidance they used in determining that presentation:

"We have also reviewed interpretive guidance published by additional Big Four accounting firms indicating that advance billings should be presented on a net basis, such that no amounts are recorded on the balance sheet."