Problem
October 2022, a group of fresh university graduates decided to launch a monthly magazine, On the Monthly. With a subscription period of one year, a customer would need to pay for all 12 issues in advance. By the end of December 2022, On the Monthly had over 200 subscribers who had paid their annual subscriptions in cash. The business recorded this cash as revenue in its Income Statement for the quarter ended 31 December 2022. On the Monthly's first issue is scheduled to come out in January 2023
Task
Should the business reclassify revenue recorded from subscriptions as a liability under accrual accounting and include it in the Statement of Financial Position as at 31 December 2022? Explain using the definition and recognition criteria of a liability.