Professional Services
Contract Fulfilment Cost Capitalized (Setup / Mobilization)
Capitalizing pre-delivery setup costs that directly relate to a specific client engagement — such as system configuration, onboarding scripts, and initial staff training.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Fulfilment Costs (Asset) | Asset (+) | 4,500.00 | - |
| Cash / Wages Payable | Asset/Liability (−) | - | 4,500.00 |
💡 Accountant's Note
Under IFRS 15.95, costs that directly relate to satisfying a future performance obligation and generate resources to be used in that satisfaction may be capitalized. Setup costs for a client-specific outsourcing engagement meet this test; general training does not.
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