When are amounts billed against a membership recognized as income if the membership does NOT use deferred revenue?

Amounts billed against a membership are recognized as income at the time of billing when the membership does not use deferred revenue. This approach aligns with the revenue recognition principle, which states that revenue should be recognized when it is earned and realizable. In the context of a membership that is billed at the time of service, the income is recognized as soon as the invoice is issued.

This reflects the nature of the service being provided: once the customer has been billed, the service is considered as completed, making it appropriate to recognize the income immediately. Therefore, for memberships that do not capitalize on deferred revenue, income recognition occurs promptly upon billing since this represents the point at which the company has a claim to the revenue.