Ann: Q2 FY18 Market Update - Update to Cash Revenue Guidance, page-245

Expenses are recognized as they occur, Cost Of Goods Sold. These Cost Of Goods Sold are already out there and accounted in the Quarter they occur (now, or previously as the case may be).

Deferred Revenue is "sales/raw profit*" sitting on the Balance Sheet waiting to move into 'Actual Quarterly Sales Account', without any (zero) 'deferred costs'.

Deferred Revenue is just that, cash has been received and put in the bank - just waiting for the particular Quarter where the Service is Delivered at which time the Deferred Revenue moves to this Quarter's Sales Account and therefore directly into our Profit Zone.

I'm an Expert in two other different Industries and not an Accountant, but I am telling you how it is !