SIM-Only Plan Revenue
Recognizing monthly revenue from a SIM-only postpaid plan with no handset subsidy.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accounts Receivable (SIM-Only) | Asset (+) | 18.00 | - |
| Subscription Revenue (SIM-Only) | Revenue (+) | - | 18.00 |
💡 Accountant's Note
SIM-only plans are pure service contracts with no handset component — simpler IFRS 15 treatment with a single performance obligation. Higher margins than bundled plans as there is no handset cost.
Practitioner & Systems Framework
💻 ERP Architecture
SIM-only plans have the simplest revenue recognition in telecoms — one performance obligation (ongoing connectivity service) recognised monthly. The CBS generates the monthly invoice and posts to the AR sub-ledger. No bundle allocation or contract asset accounting is required. Dealer commission for SIM-only activations is typically lower than for bundled contracts. SIM-only plans often have no minimum contract term (rolling monthly) — which simplifies the CAC capitalisation assessment (contracts under 12 months may use the practical expedient to expense acquisition costs immediately).
⚠️ Audit Flags
Auditors confirm that SIM-only plans with rolling monthly terms are treated as 12-month-or-less contracts for the IFRS 15 practical expedient on CAC capitalisation. Test revenue completeness by reconciling active SIM-only plan count to monthly revenue. Confirm that SIM-only plan subscribers who port out mid-month have revenue cut off at the porting date. Review the SIM-only margin profile compared to bundled plans — SIM-only margins should be materially higher.
📄 Required Documentation
SIM-only plan active subscriber count, billing system revenue report, IFRS 15 practical expedient election for CAC, dealer commission rate for SIM-only plans, porting-out cut-off records, and SIM-only vs. bundled plan margin comparison.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.