It is the difference between gross and net revenue. It is why bookmakers don't report all the bets they take in as revenue. Banks that trade securities don't re

It is the difference between gross and net revenue. It is why bookmakers don't report all the bets they take in as revenue. Banks that trade securities don't recognise the money from securities they sell as revenue. Roughly, you only recognise revenue on the part of the transaction that economically accrues to you. If you are just a middleman, you only recognise your commission (this is, however, very complex...for example, some companies that trade in commodities recognise product sold on the top-line because they take ownership of the cargo...so it varies...the accounting in this case is what I would want to know as someone using the financial statements).