These amounts are carried as liabilities and recognised as income as the service is provided. For customer contracts under TFRS 15, similar amounts are presented as contract liabilities.
Source: MSUGT (380 ve 480 hesaplar)
Related terms
Contract asset and contract liabilityA contract asset is an entity's right to consideration for goods or services transferred to a customer that is not yet unconditional; a contract liability is an obligation for which consideration has been received but not yet performed.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.Prepaid expensesAmounts already paid that will become expenses in future periods, such as rent or insurance premiums paid in advance.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Allowance for doubtful receivablesAn allowance made for receivables whose collection has become doubtful, recognising the expected loss as an expense.
Last updated: October 31, 2026 · This definition is for general information only.