IFRS revenue recognition spring 2023 by Heli Kortesalmi

Supercell selling diamonds in hay day game

2024-01-30 15:23:18 UTC

Subscription revenue model = customer pays a subscription fee regularly (for example monthly) to access a product or a service. Examples: gym subscription, Spotify Premium subscription, Microsoft Office

2024-02-05 11:36:07 UTC

merchandising company purchases goods in cheaper price and resell them to the customers at higher price

2024-02-06 11:42:51 UTC

Pay per view. Paid to get permission to watch for example a specific sporting event.

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Markup - the business takes the cost of goods it just bought -> mark it up X%-> makes a profit margin on the original purchase. For example, Amazon uses it.

Data Monetization Model --> Companies collect and analyze user data and generate revenue by selling insights, analytics, or targeted advertising based on user behavior and preferences.

2024-02-16 09:14:49 UTC

Licensing, business involves granting permission to another party to use certain product or service in exchange for a fee or royalty. Good examples we have -> Coca-Cola or softwares.

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commission

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Commission- handling transactions between parties and charging commission for it

transaction-based

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the most typical revenue model, the company generates the revenue by selling their product/service to its customers, b2b or b2c

Sales Revenue Model

2024-03-05 16:30:05 UTC

Company generates revenue by selling products services to customers

Subscription based revenue model

2024-03-12 08:47:38 UTC

This model involves customers paying a recurring fee for ongoing access to a product or service. This model gives predictability for businesses, focusing on things like value-based pricing, and opportunities for upselling. Examples include Netflix and Spotify.

Revenue based on milestones

2024-03-12 16:43:33 UTC

Some bigger projects revenue is recognized when specific milestones in a project are achieved

Revenue model: Achieved milestones (%-completion)

2024-03-16 20:37:29 UTC

A revenue model that is highly typical for larger projects that are completed within a longer period of time. The project can be recognized by achieving pre-emptively determined milestones. The milestones and recognized revenue must be carefully estimated beforehand in order to recognize revenue based on achieved milestones.

E-commerce revenue model

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Revenue by product and traffic area

2025-01-11 12:55:41 UTC

Freemium revenue model

2025-01-14 11:53:37 UTC

For example, basic functions are free, but you can pay to get extra functions or get rid of advertisement. Mostly known for example steaming services, video games and apps.

Franchise Revenue Model

2025-01-24 07:17:47 UTC

Revenue is generated by licensing the business /brand to franchises e.g. Subway, McDonald's.

Licensing revenue model

2025-01-29 20:13:01 UTC

A company grant the right to use its intellectual property (e.g. patents, softwares..).

Revenue based on percentage of completion

2025-01-30 07:41:40 UTC

This revenue recognition model is typically used for long-term construction project. The installments are paid based on the achieved project milestones.

Advertisement-based revenue model

2025-01-31 07:37:28 UTC

This model is a plan with which businesses make money by selling ad spaces. It’s often used by websites/applications/marketplaces or any other web resource that attracts huge amounts of traffic. For example: Facebook, Google...

Ad-sense Revenue Model

2025-02-04 16:08:51 UTC

The pay-per-click (PPC) and pay-per-impression (CPM) advertising systems that underpin the AdSense revenue model allow website owners, or publishers, to make money by running Google Ads advertisements on their websites.

Agency business

2025-02-05 05:03:46 UTC

or brokerage where the broker acts between the principals, who are the buyer and the seller. The broker does not own the goods at any point because he only acts between the two principals in the transaction.

Commission model, travel agencies earn commissions for example from hotel bookings

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Advertise other companies products

2025-02-11 10:29:17 UTC

When usually influencers, or people with much followers on social media advertise companies products, in order to get commission for the increased sales caused by their advertising. Usually this is made by personal link or with an personal discound code.

Subscriptions

2025-02-17 17:59:00 UTC

For example Spotify's monthly recurring payments.

Transactional revenue

2025-02-19 18:55:23 UTC

For example when a customer goes into a store and buys groceries. Revenue is created from sales of goods.

Transaction-based

2025-02-19 19:12:42 UTC

Company sells any kind of products for example on their website and gets revenue from every transaction

Saas business model

2025-02-22 21:15:16 UTC

aka software as a service is a delivery model in which a company leases its software through central cloud-based system to customers via subscription plan.

Subscription-based model

2025-02-24 09:05:49 UTC

For example Netflix subscribers pay a monthly(most of the time) fee for access to a vast library of movies, TV shows and documentaries.

Subscription-Based Revenue

2025-02-27 10:07:22 UTC

Customers pay a recurring fee (e.g., monthly or annually). For example Netflix, Spotify...

Advertising revenue model

2025-02-28 12:07:55 UTC

The revenue is made by selling advertising space on their platform for example in the form of banner ads.

Affiliate Revenue Model

2025-03-01 12:02:41 UTC

An entity acts as a facilitator between consumers and businesses that they partner with. The entity connects consumers with the businesses who have paid them to advertise their goods, usually paid as a commission per consumer conversions gained through the affiliate link.

Commission based model

2025-03-13 20:09:44 UTC

The companies earn a percentage of every sale made through their platform. For example Uber, eBay, Wolt etc.

Commission Revenue Model

2025-03-18 18:17:06 UTC

In the commission revenue model, a company or individual earns revenue by charging a fee to facilitate a transaction between buyers and sellers. The commission fee is typically a percentage of the transaction's value or a fixed fee per sale.

Financial and Consulting Service

2025-03-28 15:41:58 UTC

Accounting firms generate revenues by providing financial and consulting services to their customers.

Subscription Revenue Model

2025-03-29 12:07:11 UTC

Customers pay a recurring fee (monthly or annually) for ongoing access to a product or service. For example, steaming platforms such as Netflix, AppleTV, Viaplay, Dsiney+ and digital content providers.

2025-03-30 10:24:52 UTC

Percentage of completion = For example a construction company signs a contract for a building project that is estimated to last for 10 years. This means the revenue is recognized based on the percentage of completion each year.

Platform as a Service

2025-04-06 09:16:08 UTC

also known as PaaS, is a type of cloud computing service model that offers a flexible, scalable cloud platform to develop, deploy, run, and manage apps. Known PaaS: Vercel, AWS, Google Cloud, Supabase, etc.

netflix

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Insurance premium - Transaction price between insurance policy carrier and insurance policyholder are regarded as unearned premiums and are liabilities before they're recognised as revenue at the time the insurer earns the premium, typically at the end of certain period. Roman

Advertisement-based revenue model

2025-05-02 14:30:16 UTC

A model where businesses make money by selling ad spaces. For example, facebook marketplace, google ads, youtube ads, etc.