Professional Services
Contingent Success Fee — Constraint Lifted at Deal Close
Recognizing a fully contingent M&A success fee once the transaction completes and the fee is no longer variable.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (Success Fee) | Asset (+) | 250,000.00 | - |
| Success Fee Revenue | Revenue (+) | - | 250,000.00 |
💡 Accountant's Note
Under IFRS 15.56, highly variable success fees are constrained until the uncertainty is resolved. Upon deal close (the triggering event), the constraint is lifted and the full fee is recognized immediately. No revenue was recognized during the advisory process.
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