How should revenue collections that are delayed due to unusual circumstances be treated?

Revenue collections that are delayed due to unusual circumstances should typically be recognized as revenue when the revenue is earned and realizable, regardless of the timing of collection. This follows the accrual basis of accounting, which requires that revenues are recognized when they are earned, not necessarily when cash is received. The unusual circumstances causing the delay do not alter the fact that the revenue has been earned and should thus be recognized.

It's important to note that while it may seem appropriate to consider the amounts as deferred revenue, deferred revenue typically applies when cash has been collected in advance of revenue being earned. Since the revenue is already earned in this scenario, it should be recognized.

Additionally, while disclosing delayed collections in the notes to financial statements can enhance transparency, it doesn't change the treatment of revenue recognition. The primary emphasis should be on recognizing revenue accurately in line with accounting standards. Thus, recognizing the amounts as revenue is the correct treatment in this scenario.