Proceeds and deferred revenue allocation

For online stores selling gift cards, prepaid service fees (such as annual VIP memberships), or subscriptions, prepaid revenue is recognized on an accrual basis. Cash received is recorded as a liability, and revenue is recognized in each period when services or goods are provided, using the straight-line method or the actual progress of fulfillment. A deferred revenue change statement is provided to ensure that revenue recognition timing complies with International Financial Reporting Standards (IFRS) and HMRC revenue recognition guidelines.