Intuit Inc. (INTU)
Analysis of Revenues
Revenue Recognition Accounting Policy
Intuit derives revenue from the sale of software subscriptions, hosted services, packaged software products, financial supplies, technical support plans, transaction fees, merchant services hardware, and multiple element arrangements that may include a combination of these items. Intuit recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists, Intuit has delivered the product or performed the service, the fee is fixed or determinable, and collectibility is probable. Determining whether and when these criteria have been satisfied involves exercising judgment and using estimates and assumptions that can have a significant impact on the timing and amount of revenue that Intuit recognizes.
In some situations, Intuit receives advance payments from the customers. Intuit defers revenue associated with these advance payments and the relative fair value of undelivered elements under multiple element arrangements until Intuit ships the products or perform the services.
Intuit accounts for cash consideration (such as sales incentives) that Intuit gives to the customers or resellers as a reduction of revenue rather than as an operating expense unless Intuit receives a benefit that Intuit can identify and for which Intuit can reasonably estimate the fair value.
Source: 10-K (filing date: 2018-08-31).
Revenues as Reported
Intuit Inc., Income Statement, Revenues
USD $ in millions
|12 months ended||Jul 31, 2018||Jul 31, 2017||Jul 31, 2016||Jul 31, 2015||Jul 31, 2014|
|Small Business & Self-Employed|
|Net revenue||Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).||Intuit Inc.’s net revenue increased from 2016 to 2017 and from 2017 to 2018.|