Telecommunications
CAC Capitalized as Contract Cost (IFRS 15)
Capitalizing incremental commission costs to obtain a contract customer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Costs — CAC Asset | Asset (+) | 35.00 | - |
| Commission Expense (Deferred) | Expense (-) | - | 35.00 |
💡 Accountant's Note
Under IFRS 15, incremental costs to obtain a contract are capitalized if recoverable. For a 24-month postpaid contract, the JOD 35 dealer commission is capitalized and amortized over the 24-month contract term.
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