Construction
Contract Asset Reclassified to Receivable
Moving an unbilled contract asset to a trade receivable once the progress certificate is formally issued.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Certified Progress) | Asset (+) | 150,000.00 | - |
| Contract Asset (Unbilled Revenue) | Asset (-) | - | 150,000.00 |
💡 Accountant's Note
Under IFRS 15, earned-but-not-yet-billed revenue is a 'Contract Asset.' Once the right to invoice becomes unconditional (certificate issued and approved), it is reclassified to a standard trade receivable.
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