Quoted from OLDPINGUY:One thing, and I may be wrong, but with all those deposits, and the end of the year, isnt that income, that gets reported to be taxed?
Sales tax?
I would not want that position.....
No. It is unearned revenue. They do not report that income until the product's title passes to the customer. It would be cash receipt and also a liability on the balance sheet until the games were complete and title passed to the customer. Then DP would move get rid of the liability and record the revenue.
Edit: this is of course assuming they are filing their returns on the accrual basis.