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Gross versus net revenue: Is your company the principal or agent?
This episode begins a podcast miniseries on revenue topics with a discussion of principal versus agent (PvA) or “gross versus net” revenue. In other words, the principal in a transaction records revenue on a gross basis and the agent records revenue net. The PvA analysis can be subjective but it's important to get it right as it can materially impact a key line item in the income statement, revenue from contracts with customers.
In this episode, we discuss:
2:00 – An overview of the PvA model and reporting impacts
8:45 – Key considerations in the PvA analysis
9:50 – Assessing control
16:25 –…
The skinny
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