Event finance.
Event P and L structure, revenue recognition, deferred revenue and cash timing, contribution analysis, organic growth definitions, budgeting and reforecasting a show.
21 articles · Event finance
- How an event profit and loss structure is built line by lineevent profit and loss structureAn event profit and loss structure has four blocks: revenue by line, direct show cost, sales and marketing, and allocated overhead. What each one does to the margin.
- Splitting fixed versus variable event costs before the first budget reviewfixed versus variable event costsHow to split fixed versus variable event costs by decision window, what a 10 per cent space shortfall really releases, and why step costs break the two-bucket model.
- Allocating central overhead to shows without starting a war between show directorsallocating central overhead to showsAllocating central overhead to shows changes who looks profitable. Three bases on one 8.4 million show, the ranking they invert, and the disclosure that ends the argument.
- What belongs in space revenue versus service revenue when the accounts closespace revenue versus service revenueSpace revenue versus service revenue: what belongs in each line, why folding services into space overstates yield per square foot, and the test IFRS 15 actually applies.
- Sponsorship revenue accounting when the package spans a year and one show weeksponsorship revenue accountingSponsorship revenue accounting for a package covering show week and a year of digital presence: splitting the price by standalone selling price and phasing each piece.
- Delegate fee revenue recognition for a conference running alongside the exhibitiondelegate fee revenue recognitionDelegate fee revenue recognition for a conference alongside a trade show: when the fee is earned, how no-shows are treated, and what a conference straddling a year end does.
- Gross versus net revenue presentation when the organiser resells stand build and housinggross versus net revenue presentationGross versus net revenue presentation turns on control, not on who sends the invoice. A housing block worth 4 million shows as 600,000 or 4 million of revenue.
- Venue cost in event budgets and the clauses that move it after signaturevenue cost in event budgetsVenue cost in event budgets is a contracted hall hire plus a variable tail that bills on actuals. How to rate it per square foot and budget the part nobody signed for.
- Capitalising sales commissions for events under the costs to obtain a contract rulescapitalising sales commissions for eventsCapitalising sales commissions for events: what counts as an incremental cost of obtaining a contract, when the one year expedient applies, and what a December year end does.
- Event staff cost allocation when one team runs six shows a yearevent staff cost allocationEvent staff cost allocation across six editions: four bases on one 650,000 payroll, the five point margin swing, and why timesheet percentages total 100.
- The largest direct cost lines on a trade show and how they movelargest direct cost linesThe largest direct cost lines on a trade show are floor build, venue, contracted operations and audiovisual. How to size each one and predict how it moves.
- Contribution margin per square foot tells you which halls are worth openingcontribution margin per square footContribution margin per square foot is space revenue less the direct cost that follows the floor, divided by net square feet sold. How to compute it by hall.
- The event gross margin calculation that survives a first look from group financeevent gross margin calculationAn event gross margin calculation needs a stated direct cost line. Worked on filed accounts and on a single show, with the two numbers a board confuses.
- Finding the break even point for a show before the sales team commitsbreak even point for a showThe break even point for a show is fixed cost divided by contribution per square foot. Worked with sensitivities, plus the commit date that matters more.
- Point in time revenue recognition puts a whole show into one reporting periodpoint in time revenue recognitionPoint in time revenue recognition puts a whole show into one period. What the standard requires, and what a single date change does to a half year.
- Event phasing across reporting periods and why half year numbers mislead by designevent phasing across reporting periodsEvent phasing across reporting periods makes flat years look like growth at the half. How listed groups reconcile it and what an organiser should publish.
- Revenue cutoff for a show that opens on the last day of the quarterrevenue cutoff for a showThe revenue cutoff for a show straddling a quarter end turns on the IFRS 15 tests. A worked split on 9.3 million, and why a per day split misleads.
- Deferred revenue for trade shows is the balance sheet line nobody reads carefullydeferred revenue for trade showsDeferred revenue for trade shows holds every booth, badge and sponsorship invoiced before doors open. What moves the balance, and what it cannot tell you.
- The cash profile of an annual show peaks months before the revenue doescash profile of an annual showThe cash profile of an annual show peaks before doors open and settles after breakdown. A month by month curve on one edition, and where the peak misleads.
- Why a growing event business runs on negative working capital and what breaks itnegative working capital event businessA growing event business runs on negative working capital because deferred revenue funds it. What two filed balance sheets show, and what a flat year costs.
- Forward bookings as a metric only works if the comparison date is fixedforward bookings as a metricForward bookings as a metric only compares if both figures are struck the same number of days before doors open and the basis is written down first.