> The argument hing made is that the credits are what is being delivered.
Right, I understand that.
> but it is not obvious to me that the revenue should be recognised when the credits are used or expire rather than when they are sold.
The realisation (or recognition, if you want) of the revenue is irrelevant. Once you have already accepted payment for a service, that service is a liability until you deliver it.
So, unless they are cooking their books to say that they are not obligated to provide the service after accepting payment, I don't really see how they can report it on their statements as anything other than a liability.
Right, I understand that.
> but it is not obvious to me that the revenue should be recognised when the credits are used or expire rather than when they are sold.
The realisation (or recognition, if you want) of the revenue is irrelevant. Once you have already accepted payment for a service, that service is a liability until you deliver it.
So, unless they are cooking their books to say that they are not obligated to provide the service after accepting payment, I don't really see how they can report it on their statements as anything other than a liability.