"James B. Shearer" wrote in message
om...
The 2002-2003 audit has been posted on the USCF website. The figures
in footnote 7 for life and sustaining member income seem peculiar. In
2001-2002 the USCF began with deferred revenue of $1342602 and
received dues of $124355. It recorded life and sustaining member
income of $156100. This year the USCF began with deferred revenue of
$1310857 and received dues of $64290. However it recorded life and
sustaining member income of $214589. How is this possible? How can
the dues received go down $60k and the amount recorded as income go up
almost $60k?
James B. Shearer

The amount of dues received in a given year has little to do with the income
recognized. For example, the $64k essentially represents a number of life
memberships or sustaining membership contributions. Lets say for the sake
of discussion that it was all life memberships. The differential income for
these memberships, over 20 years, is about $3k if spread evenly.

The revenue recognized is on a schedule based upon when the life memberships
started. So, the real question is why did the life membership income
increase by more than $3k at all? I don't know for sure, but could see a
couple of possibilities: 1) If the split over 20 years is not straight
line, then the curve, in combination with the start dates of the LMs
resulted, may have resulted in a bulge; 2) If a large number of sustaining
members threw in the towel on their partially paid LMs, then the forfeited
sustaining contribution balances might have been recognized immediately; 3)
The value of the life membership probably increased at some point (was $x in
1980, but was $(x+100) in 1981, perhaps). Again, if the method is not
straightline, then this may influence the income recognition.
4) Something I haven't thought of.

I'm guessing #2.

David

Bruce Draney wrote in message ...
David wrote:

"James B. Shearer" wrote in message
om...
The 2002-2003 audit has been posted on the USCF website. The figures
in footnote 7 for life and sustaining member income seem peculiar. In
2001-2002 the USCF began with deferred revenue of $1342602 and
received dues of $124355. It recorded life and sustaining member
income of $156100. This year the USCF began with deferred revenue of
$1310857 and received dues of $64290. However it recorded life and
sustaining member income of $214589. How is this possible? How can
the dues received go down $60k and the amount recorded as income go up
almost $60k?
James B. Shearer

The amount of dues received in a given year has little to do with the income
recognized. For example, the $64k essentially represents a number of life
memberships or sustaining membership contributions. Lets say for the sake
of discussion that it was all life memberships. The differential income for
these memberships, over 20 years, is about $3k if spread evenly.

The revenue recognized is on a schedule based upon when the life memberships
started. So, the real question is why did the life membership income
increase by more than $3k at all? I don't know for sure, but could see a
couple of possibilities: 1) If the split over 20 years is not straight
line, then the curve, in combination with the start dates of the LMs
resulted, may have resulted in a bulge; 2) If a large number of sustaining
members threw in the towel on their partially paid LMs, then the forfeited
sustaining contribution balances might have been recognized immediately; 3)
The value of the life membership probably increased at some point (was $x in
1980, but was $(x+100) in 1981, perhaps). Again, if the method is not
straightline, then this may influence the income recognition.
4) Something I haven't thought of.

I'm guessing #2.

David

Perhaps you are thinking too analytically here. Suppose someone just
screwed up and did it wrong? Now THAT would be absolutely shocking, and
almost impossible to believe.

It kind of looks like in 2001-2002 the amount recorded as
income, $156k, consisted of $6k from current dues ($124k/20) and $150k
recognized from prior years but in 2002-2003 the recorded as income,
$214k, was the entire current dues, $64k, plus $150k from prior years.
Of course this would be wrong and would overstate income by about
$60k.
James B. Shearer

"James B. Shearer" wrote in message
om...

The 2002-2003 audit has been posted on the USCF website. The figures
in footnote 7 for life and sustaining member income seem peculiar. In
2001-2002 the USCF began with deferred revenue of $1342602 and
received dues of $124355. It recorded life and sustaining member
income of $156100. This year the USCF began with deferred revenue of
$1310857 and received dues of $64290. However it recorded life and
sustaining member income of $214589. How is this possible?

My guess would be that is the amount amortized this year. It decreases the
deferral amount being carried on the balance sheet. The dues received in the
current year would be capitalized over the life of deferral and of the
amount deferred in previous years, some would be recognized this year. I
think this is just a disclosure of the reconciliation of the deferred
revenue account.

How can
the dues received go down $60k and the amount recorded as income go up
almost $60k?

I think the two events are mutually exclusive. I mean the dues received in
each year or what the folks send in and the revenue recognized in each year
are what's due to be recognized of the previously deferred stuff dude.

StanB

"StanB" wrote in message ...
"James B. Shearer" wrote in message
om...

The 2002-2003 audit has been posted on the USCF website. The figures
in footnote 7 for life and sustaining member income seem peculiar. In
2001-2002 the USCF began with deferred revenue of $1342602 and
received dues of $124355. It recorded life and sustaining member
income of $156100. This year the USCF began with deferred revenue of
$1310857 and received dues of $64290. However it recorded life and
sustaining member income of $214589. How is this possible?

My guess would be that is the amount amortized this year. It decreases the
deferral amount being carried on the balance sheet. The dues received in the
current year would be capitalized over the life of deferral and of the
amount deferred in previous years, some would be recognized this year. I
think this is just a disclosure of the reconciliation of the deferred
revenue account.

My guess would be in 2001-2002 the USCF recorded 1/20th of the
dues received or $6k ($124k/20) and recognized $150k of deferred
revenue for a total of $156k but in 2002-2003 the USCF recorded all of
the dues received ($64k) and recognized $150k of deferred revenue for
a total of $214k which would be a $60k error.
James B. Shearer

"James B. Shearer" wrote in message
om...

My guess would be in 2001-2002 the USCF recorded 1/20th of the
dues received or $6k ($124k/20) and recognized $150k of deferred
revenue for a total of $156k but in 2002-2003 the USCF recorded all of
the dues received ($64k) and recognized $150k of deferred revenue for
a total of $214k which would be a $60k error.

Interesting. You may be onto something here. I'll try to remember this when
I see next year's draft.

StanB