chandsingh

Unearned revenue comes about when you already receive the cash, but have not performed the service. Therefore, recognizing UR does not increase your future revenue. What is increased when you release the UR is your profit, artificially.
That said, either an increase or decrease in UR could be indicative of lower earnings quality. Decrease, for obvious reason. Increase, because you haven’t known the actual expense that would be incurred yet. For all you know, it could be well above the cash you received.