Telecommunications
Early Termination Fee (ETF) Income
Charging a fee when a postpaid customer cancels their contract before the minimum term expires.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (ETF) | Asset (+) | 120.00 | - |
| Early Termination Fee Income | Revenue (+) | - | 120.00 |
💡 Accountant's Note
ETFs recover the unrecouped subsidy and acquisition cost when a customer leaves early. Under IFRS 15, the ETF is recognized when charged since the constraint on variable consideration is lifted at that point.
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