This portion of the book will provide a framework towards understanding unearned revenue on the balance sheet at Indiana University.

Unearned revenue is recorded for current cash receipts of student tuition and fees, certain auxiliary goods and services that are received in advance of providing services, and for amounts received from contract and grant sponsors that have not yet been earned. This represents an obligation, for IU, to fulfill future a future commitment. Understanding unearned revenue is vital for IU to accurately plan for future activities. By recognizing unearned revenue, Indiana University can ensure proper accounting treatment, maintain financial stability, and fulfill their commitments to students and stakeholders.