Telecommunications
Contract Modification — Customer Upgrades Plan
A customer mid-contract upgrades from a basic plan to a premium plan.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Revenue (Old Plan Remaining) | Liability (-) | 50.00 | - |
| Deferred Revenue (New Plan) | Liability (+) | - | 80.00 |
| Cash / Receivable (Increment) | Asset (+) | 30.00 | - |
💡 Accountant's Note
Under IFRS 15, an upgrade that adds distinct goods/services is treated as a new contract. The old remaining deferred balance is closed and the new higher-value plan commences.
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