Professional Services
Incremental Contract Acquisition Cost Capitalized (IFRS 15)
Capitalizing the sales commission paid only upon winning a multi-year professional services contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Acquisition Costs (Asset) | Asset (+) | 6,000.00 | - |
| Commissions Payable | Liability (+) | - | 6,000.00 |
💡 Accountant's Note
Under IFRS 15.91, incremental costs to obtain a contract (commissions paid only on winning) are capitalized if they are recoverable and the contract exceeds 12 months. They are amortized over the expected contract period — here 24 months at JOD 250/month.
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