Telecommunications
Contract Downgrade — Revenue Reduction
A customer mid-contract downgrades from a premium to a basic plan.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Revenue (Old Plan Remaining) | Liability (-) | 60.00 | - |
| Deferred Revenue (New Plan) | Liability (+) | - | 45.00 |
| Revenue Reversal (Modification) | Revenue (-) | 15.00 | - |
💡 Accountant's Note
Under IFRS 15, a plan downgrade is a contract modification that reduces the transaction price. The remaining contract revenue is adjusted prospectively. No catch-up adjustment to past periods is required.
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