If high income is expected during the first reference period, the entity may include an overall deduction of $6,000 for questionable accounts during the reporting period. This would increase the cost of the error in the profit and loss account by $6,000 and reduce net income by $6,000. This would smooth out a high-income period by reducing income. It is important for companies to use judgment methods and legal accounting methods to adjust accounts. The EU and the UK have reached an agreement on the withdrawal agreement with a revised protocol on Ireland and Northern Ireland (abolition of the “backstop”) and a revised political declaration. On the same day, the European Council (Article 50) approved these texts. The real advantage of the smooth transition model via R-P or P-R is that library acquisition budgets have the ability to phase in from subscription spending to CPPs. There is no need for immediate policy changes in library funding, nor are there any massive coordination efforts. However, even with the smooth transition model, the transformation of open access will not be successful if high-level publishing companies do not commit to the principle of open access and do not receive sufficient additional resources in the long term. The appeal of the smooth transition model lies in the fact that libraries, governments and funders save time to develop, accept, evaluate and revise financial allocations and work processes during the open access transition. Temporary errors in the amendments to the directive do not cause serious damage, as library spending is largely based on historical subscriptions in the first half of the overall open access transition, even for high-publication organisations.

It also reduces uncertainty for libraries and publishers to switch from subscriptions to beekeepers or the P-R model. Income smoothing uses accounting techniques to offset fluctuations in net income from one period to the next. Companies engage in this practice because investors are generally willing to pay a premium for stocks with stable and predictable income streams, unlike stocks whose revenues are subject to more volatile schemes that may be considered riskier. Imaging technology and data complexity are constantly evolving, leading to higher-resolution images and higher image rates, greater dynamic reach and much more detailed detail. These conditions open the door to advanced video analysis – if only we could get the right film from the right frame, in the right place, at the right time and with the right quality! In short, the film should be available for live viewing or smooth playback. The objective of revenue smoothing is to reduce fluctuations in yields from one period to the next in order to present a business as if it had stable profits. It aims to smooth out high-income periods relative to periods of low income or periods of high spending compared to periods of low spending. Accountants do this by moving revenues and expenses legally. Income smoothing is not illegal if the process follows generally accepted accounting principles (GAAP). Talented accountants are able to adjust financial books in a way that goes overboard to ensure the legality of revenue smoothing. However, often income smoothing is done with fraudulent methods. On 23 March 2018, EU and UK negotiators reached an agreement on the draft withdrawal agreement allowing the European Council (Article 50) to adopt guidelines for the framework for future eu-UK relations.

There are many reasons why a company would opt for revenue smoothing.