What do i need to change on my DCF model if it asked to ''Ensure that the DCF properly handles purchase accounting adjustments (e.g., double-check the Cash Taxes on EBIT calculation) ?''    

JEC nailed it.  Deferred Revenue will always be exist as a component of actual revenue, especially if a company enters into long term contracts and other sales that are fulfilled over a period of time.  A great way to get an idea of this is to review the notes to the financials, focusing on the revenue section.  ...

Hi ttocsik, That approach sounds correct. Deferred revenue represents the situation where the client pays in advance, such as for a subscription.  Suppose there's a one year subscription and the client pays in advance.  Cash and Deferred Revenue balances increase at that point.  Then, as the revenue is recognized, the deferred ...