Telecommunications
Subscriber Acquisition Cost — Non-Capitalized (Prepaid)
Expensing the distribution cost of prepaid SIM activation through dealers — not meeting IFRS 15 capitalization criteria.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Subscriber Acquisition Cost (Expensed) | Expense (+) | 25,000.00 | - |
| Cash / Accounts Payable (Dealer) | Asset/Liability (-) | - | 25,000.00 |
💡 Accountant's Note
Prepaid SIM distribution costs are expensed immediately since there is no long-term contract from which to recover them. Only incremental costs to obtain contracts with expected recovery are capitalized under IFRS 15.
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