Talk:Revenue

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[edit] Profit vs. revenue vs. earnings

I read this BBC article about Google.

It says: "Revenues are in line, but it was a big earnings miss". English is not my mother tongue, and even if it would have been, i'm not sure that i would understand that.

What is the difference between revenues and earnings? And profit, for that matter?--Amir E. Aharoni 06:14, 1 February 2006 (UTC)

It basically means that the turnover of the company is in line with its forecast, i.e. the company receives the expected amount of money, but the profit is a lot lower than expected, probably because of higher costs than what was planned. Thomas Blomberg 23:27, 8 March 2006 (UTC)

First let me say I am no expert on the topic so I don't want to edit the article. It does seem to me (in my ignorance) that the article is incorrect in stating that the accounting term revenue is used "to measure increases of assests or decrease of liabilities", surely it is profit that does this not revenue? It goes on to give the IFRS framework definition of income and indicates that income = revenue ,"income (i.e. revenue)", but is this definition of income not using the term income to mean profit, just as the article indicates is often done in America? -- Lawrence O'Reilly 21 June 2006

This article is terrible. Revenue and income are never used interchangeably, and revenue does not represent increases of assets or decreases of liabilities, that is "income", or "net income", or "profit", commonly used interchangeably. Will look into overhauling article. -- John D. 27 June 2006

I overhauled the page, but in so doing Americanized it. If there are significant things that are different internationally, I suggest creating a new heading in the body. Additionally, I wanted to graphically display the "earnings process" in terms of when cash is received, when the product is delivered, and when revenue is recognized. Also, special revenue recognition situations should be expanded. -- John D. 28 June 2006