Professional Services
Contract Modification — Additional Scope Agreed
Recording additional revenue when a change order adds new services to an existing engagement.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Additional Scope Invoice) | Asset (+) | 18,000.00 | - |
| Professional Fee Revenue (Change Order) | Revenue (+) | - | 18,000.00 |
💡 Accountant's Note
Under IFRS 15, a contract modification adding distinct services at their standalone selling price is treated as a new contract. The additional revenue is recognized as the new services are delivered. If the price is not at SSP, the modification adjusts the original contract prospectively or as a catch-up.
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