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29-536: The Russian Far East generates much revenue from tourism at Crater Bay. The Kuril Islands , being a part of the Pacific Ring of Fire , have several volcanoes. 47°30′54″N 152°48′54″E  /  47.515°N 152.815°E  / 47.515; 152.815 This Sakhalin Oblast location article is a stub . You can help Misplaced Pages by expanding it . Revenue In accounting , revenue

58-571: A double-entry bookkeeping system , revenue accounts are general ledger accounts that are summarized periodically under the heading "revenue" or "revenues" on an income statement . Revenue account-names describe the type of revenue, such as "repair service revenue", "rent revenue earned" or "sales". For non-profit organizations , revenue may be referred to as gross receipts , support , contributions , etc. This operating revenue can include donations from individuals and corporations, support from government agencies, income from activities related to

87-434: A business's primary activities are reported as sales , sales revenue or net sales . This includes product returns and discounts for early payment of invoices . Most businesses also have revenue that is incidental to the business's primary activities, such as interest earned on deposits in a demand account . This is included in revenue but not included in net sales. Sales revenue does not include sales tax collected by

116-437: A cognitive link between a brand (sponsor) and an event (sponsoree), leading to the formation of event-linked associations in memory. Consequently, thinking of the brand can evoke these associations, influencing consumer perceptions and behaviors. Cornwell, Weeks and Roy (2005) have published an extensive review of the theories so far used to explain commercial sponsorship effects. One of the most pervasive findings in sponsorship

145-408: A company's business objectives, finding the right contacts at a company, getting buy-in from multiple constituencies and finally negotiating benefits/price. Some sales can take up to a year and sellers report spending anywhere between 1–5 hours researching each company that is viewed as a potential prospect for sponsorship. These are the terms used by many sponsorship professionals, which refer to how

174-410: A given period. In accounting , revenue is a subsection of the equity section of the balance statement, since it increases equity. It is often referred to as the "top line" due to its position at the very top of the income statement . This is to be contrasted with the "bottom line" which denotes net income (gross revenues minus total expenses). In general usage, revenue is the total amount of income by

203-466: A monetary policy statement to the reserve bank directing a positive inflation rate, the expense provision for the return of currency to the reserve bank is largely symbolic, such that to totally cancel the currency in circulation provision, all currency would have to be returned to the reserve bank and canceled. Sponsorships Sponsoring something (or someone) is the act of supporting an event, activity, person, or organization financially or through

232-456: A particular standard accounting practice or the rules established by a government or government agency. Two common accounting methods , cash basis accounting and accrual basis accounting , do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or on International Financial Reporting Standards . In

261-420: A sponsor uses the benefits they are allocated under the terms of a sponsorship agreement. Leveraging has been defined by Weeks, Cornwell and Drennan (2008) as "the act of using collateral marketing communications to exploit the commercial potential of the association between a sponsor and sponsee" while activation has been defined as those "communications that promote the engagement, involvement, or participation of

290-405: Is done with the expectation of a commercial return. While sponsorship can deliver increased awareness, brand building and propensity to purchase, it is different from advertising. Unlike advertising, sponsorship can not communicate specific product attributes. Nor can it stand alone, as sponsorship requires support elements. Proponents of sponsorship would, however, point to its unique position in

319-415: Is from something other than its core operations. The combination of all the revenue-generating systems of a business is called its revenue model . While the current IFRS conceptual framework no longer draws a distinction between revenue and gains, it continues to be drawn at the standard and reporting levels. For example, IFRS 9.5.7.1 states: "A gain or loss on a financial asset or financial liability that

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348-450: Is measured at fair value shall be recognised in profit or loss ..." while the IASB defined IFRS XBRL taxonomy includes OtherGainsLosses, GainsLossesOnNetMonetaryPosition and similar items. Revenue is a crucial part of financial statement analysis. The company's performance is measured to the extent to which its asset inflows (revenues) compare with its asset outflows ( expenses ). Net income

377-473: Is printed. This is recorded as an advance to the retail bank together with a corresponding currency in circulation expense entry, that is, the income derived from the Official Cash rate payable by the retail banks for instruments such as 90-day bills. There is a question as to whether using generic business-based accounting standards can give a fair and accurate picture of government accounts, in that with

406-525: Is projected to be the fastest-growing source of sponsorship dollars outside North America, with a forecast growth rate of 5.6 percent for 2011. Relaxed television industry legislation surrounding product placement has led to a small but increasing rise in TV programming sponsorship in the UK. However, commercial sponsorship of British sports teams and players is a multibillion-pound industry. For example, Adidas became

435-455: Is that the best effects are achieved where there is a logical match between the sponsor and sponsoree, such as a sports brand sponsoring a sports event. Work by Cornwell and colleagues however, has shown that brands that don't have a logical match can still benefit, at least in terms of memory effects, if the sponsor articulates some rationale for the sponsorship to the audience. All sponsorship should be based on contractual obligations between

464-467: Is the result of this equation, but revenue typically enjoys equal attention during a standard earnings call . If a company displays solid "top-line growth", analysts could view the period's performance as positive even if earnings growth, or "bottom-line growth" is stagnant. Conversely, high net income growth would be tainted if a company failed to produce significant revenue growth. Consistent revenue growth, if accompanied by net income growth, contributes to

493-548: Is the total amount of income generated by the sale of goods and services related to the primary operations of the business . Commercial revenue may also be referred to as sales or as turnover . Some companies receive revenue from interest , royalties , or other fees . "Revenue" may refer to income in general, or it may refer to the amount, in a monetary unit , earned during a period of time, as in "Last year, company X had revenue of $ 42 million". Profits or net income generally imply total revenue minus total expenses in

522-684: The EU member states in 2014, followed by North America, the Asia Pacific region. Growth in Central and South America during 2010 did not materialize to the extent projected—3.8 percent versus a forecast of 5.7 percent—despite the FIFA World Cup and Olympic Games in Brazil in 2014 and 2016, respectively. With the 2010 World Cup concluded, sponsorship activity should begin to heat up, thus the region

551-590: The association's digital media outlets. Business revenue is money income from activities that are ordinary for a particular corporation, company, partnership, or sole-proprietorship. For some businesses, such as manufacturing or grocery , most revenue is from the sale of goods. Service businesses such as law firms and barber shops receive most of their revenue from rendering services. Lending businesses such as car rentals and banks receive most of their revenue from fees and interest generated by lending assets to other organizations or individuals. Revenues from

580-436: The business. Other revenue (a.k.a. non-operating revenue) is revenue from peripheral (non-core) operations. For example, a company that manufactures and sells automobiles would record the revenue from the sale of an automobile as "regular" revenue. If that same company also rented a portion of one of its buildings, it would record that revenue as "other revenue" and disclose it separately on its income statement to show that it

609-534: The marketing mix. A sponsorship program can include all other marketing elements including advertising, promotions, merchandise, hospitality, PR and social media. This allows sponsorship to be used to address a much wider range of business objectives. For example, a sponsor buying the rights to a sports team or competition could achieve increased brand awareness through high profile signage, but might also use hospitality tickets for staff motivation programs or to host key trade customers. On-pack promotions could be linked to

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638-544: The organization's mission , income from fundraising activities, and membership dues. Revenue (income and gains) from investments may be categorized as "operating" or "non-operating"—but for many non-profits must (simultaneously) be categorized by fund (along with other accounts). For non-profits with substantial revenue from the dues of their voluntary members: non-dues revenue is revenue generated through means besides association membership fees. This revenue can be found through means of sponsorships , donations or outsourcing

667-451: The provision of products or services. The individual or group that provides the support, similar to a benefactor , is known as the sponsor . Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property. While the sponsoree (property being sponsored) may be nonprofit, unlike philanthropy, sponsorship

696-418: The sale of goods or services related to the company's operations. Sales revenue is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers. Fundraising revenue is income received by a charity from donors etc. to further its social purposes. In more formal usage, revenue is a calculation or estimation of periodic income based on

725-441: The specific rights being sold and confirmation that these are available for sponsorship from the rights holder. Sponsored parties should have the absolute right to decide on the value of the sponsorship rights that they are offering and the appropriateness of the sponsor with whom they contract. The sales cycle for selling sponsors is often a lengthy process that consists of researching prospects, creating tailored proposals based on

754-425: The sponsor and the sponsored party. Sponsors and sponsored parties should set out clear terms and conditions with all other partners involved, to define their expectations regarding all aspects of the sponsorship deal. Sponsorship should be recognisable as such. The terms and conduct of sponsorship should be based upon the principle of good faith between all parties to the sponsorship. There should be clarity regarding

783-545: The sponsorship audience with the sponsor." Money spent on activation is over and above the rights fee paid to the sponsored property and is often far greater than the cost of the rights fee." IEG projects spending on sponsorship globally to grow 4.5 percent in 2018 to $ 65.8 billion, including $ 24.2 billion in North America alone (a 4.5% increase from $ 24.1 billion in 2017). Europe is the largest source of sponsorship spending, with €26.44 million (US$ 29 million) in just

812-405: The sports property to create a much more compelling consumer proposition and to associate the brand directly with a sports property which has much greater image attributes than the sponsoring brand. Various psychological and communication theories have been employed to elucidate the mechanisms by which commercial sponsorship influences consumer audiences. Many theories posit that sponsorship creates

841-503: The value of an enterprise and therefore the share price. Revenue is used as an indication of earnings quality. There are several financial ratios attached to it: Government revenue includes all amounts of money (i.e., taxes and fees) received from sources outside the government entity. Large governments usually have an agency or department responsible for collecting government revenue from companies and individuals. Government revenue may also include reserve bank currency which

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