|This article is of interest to the following WikiProjects:|
Profit vs. revenue vs. earnings
The Wiki-article about revenue, turnover and income is unusually confusing. I looked it up in order to clarify the meaning of revenue, turnover, (corporate) income, but was left with a headache instead. To start with, no clear definitions are given at all. The writer seems to assume that people already know what the words mean, in HIS version of English. Like he has some kind of interest in continuing the confusion, e.g. being an accountant. This is definitely NOT the way articles should be written in Wikepedia. Also, there is a difference in definitions of revenue and turnover between American English and British English. This is not explained as such. Better still, a really knowledgeable writer would have given examples with actual figures. A shoe is sold for €20 (not including VAT), at a cost of €9 (of which €3 for personnell and €1 for overhead) and taxes are €2. There are 40 shoes in stock and 15 shoes are sold each week and one comes back being broken in the first week of wear and has to be replaced. Now, what is meant by revenue, turnover, income, net revenue, gross turnover, net income? According to American English? According to British English? According to international accounting standards in USA? According to international accounting standards in EU? THAT is what would give clearcut definitions. As the article in Wikipedia is now, it only adds to the confusion, quite apart from being written from an American viewpoint with little or no understanding of other English speaking countries or international English or European English (quite different from British English, by the way). So, I'd like to put forward to knowledgeable people a kind but urgent request to rewrite the current unusually confusing article and include examples that clarify the matter once and for all. Yours faithfully, Charles, Amsterdam, Netherlands, EU — Preceding unsigned comment added by 184.108.40.206 (talk) 10:35, 23 January 2013 (UTC)
I read this BBC article about Google.
It says: "Revenues are in line, but it was a big earnings miss". English is not my mother tongue, and even if it would have been, i'm not sure that i would understand that.
What is the difference between revenues and earnings? And profit, for that matter?--Amir E. Aharoni 06:14, 1 February 2006 (UTC)
- It basically means that the turnover of the company is in line with its forecast, i.e. the company receives the expected amount of money, but the profit is a lot lower than expected, probably because of higher costs than what was planned. Thomas Blomberg 23:27, 8 March 2006 (UTC)
First let me say I am no expert on the topic so I don't want to edit the article. It does seem to me (in my ignorance) that the article is incorrect in stating that the accounting term revenue is used "to measure increases of assests or decrease of liabilities", surely it is profit that does this not revenue? It goes on to give the IFRS framework definition of income and indicates that income = revenue ,"income (i.e. revenue)", but is this definition of income not using the term income to mean profit, just as the article indicates is often done in America? -- Lawrence O'Reilly 21 June 2006
This article is terrible. Revenue and income are never used interchangeably, and revenue does not represent increases of assets or decreases of liabilities, that is "income", or "net income", or "profit", commonly used interchangeably. Will look into overhauling article. -- John D. 27 June 2006
I overhauled the page, but in so doing Americanized it. If there are significant things that are different internationally, I suggest creating a new heading in the body. Additionally, I wanted to graphically display the "earnings process" in terms of when cash is received, when the product is delivered, and when revenue is recognized. Also, special revenue recognition situations should be expanded. -- John D. 28 June 2006
Someone thinks Europe is a country.
Why does the article say in it's opening sentence that revenue [is called] 'turnover in Europe'? The striking thing about Europe is that the overwhelming majority of its inhabitants don't speak English. 'Revenue' would be 'recettes' in French, 'ontvangsten' in Dutch, 'Einnahmen' in German etc.
- And furthermore, the article tells us:
- "In many other countries, including the UK, revenue is referred to as turnover."
- Other than what? Are we to automatically assume it's the United States? No countries have been mentioned in the article before this point. Jellyman (talk) 21:40, 5 December 2008 (UTC)
- "In many other countries, including the UK, revenue is referred to as turnover." The way i understand this article, is that it is describing "turnover" so why the refference to the UK? OR maybe i am just stupid. — Preceding unsigned comment added by 220.127.116.11 (talk) 02:33, 1 October 2011 (UTC)
revenue vs. income
What is the difference between revenue and income? Reading the description at the start of the article makes me think they aren't very different, yet Chevron oil's revenue is many times its income (which is why I came to this page).Kdammers (talk) 04:25, 16 July 2011 (UTC)
I'd agree that the opening is misleading, particularly if you then follow the link to income and discover that 'income generally refers to "net-profit"'. Generally most definitions would see income = revenue - expenses Quarrel (talk) 14:25, 10 December 2012 (UTC)