Professional Services
Retainer Breakage — Unused Hours Lapsed
Recognizing revenue from retainer hours that expired unused at the end of the contract period.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Retainer Revenue (Lapsed) | Liability (−) | 1,500.00 | - |
| Retainer Breakage Revenue | Revenue (+) | - | 1,500.00 |
💡 Accountant's Note
Under IFRS 15, breakage revenue (lapsed unused entitlements) is recognized when the likelihood of the client exercising remaining rights becomes remote. Historical data on usage patterns is used to estimate the breakage rate.
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