My client runs courses and retreats. Payments are received up to 12 months in advance of the event. I am deferring this income and recognising this when the event runs. At this point I can match the income to the associated expenditure. Clients are allowed to change dates of courses etc. Sometimes they are refunded if they can no longer attend.
The courses are run over weekends spread over the year. An advanced certificate may involve 7 weekends, 3 pre year end, 4 post year end. In this case I recognise 3/7 of the income and defer 4/7.
Can anyone confirm my understanding is correct?