Telecommunications
Prepaid Credit Breakage — Expired Unused Credit
Recognizing revenue from prepaid balances that have expired without being used.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Revenue (Prepaid Breakage) | Liability (-) | 15,000.00 | - |
| Breakage Revenue (Prepaid) | Revenue (+) | - | 15,000.00 |
💡 Accountant's Note
Under IFRS 15, breakage is estimated using historical data and recognized as revenue over the expected period of use. Significant breakage is common — many customers top up more than they use.
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