Telecommunications
Bundle Allocation — Handset and Plan (IFRS 15)
Splitting a 24-month contract bundle between the handset (hardware) and the ongoing service plan.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Receivable (Monthly Payment) | Asset (+) | 50.00 | - |
| Handset Revenue (Recognized Upfront) | Revenue (+) | - | 20.83 |
| Deferred Service Revenue (Monthly) | Liability (+) | - | 29.17 |
💡 Accountant's Note
Under IFRS 15, a handset + plan bundle is two distinct performance obligations. The transaction price is allocated based on standalone selling prices. The handset component is recognized immediately at delivery; the service plan is deferred and released monthly.
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