Jan 3 2017, 09:01 PM
QUOTE(cybpsych @ Jan 3 2017, 09:26 PM)
telco like postpaid and prepaid customers, but two different behavior 
good to lock customers with postpaid, monthly recurring income and sometime more with vas/voice/sms/etc usages. problem: revenue is delayed. billed invoice is not considered revenue until customer pays them. then only the payment is captured as revenue. a lot of ppl not paying bills is not good for telco's cashflow.
prepaid has higher sub base. still 80:20 ratio or already lesser 75:25? still, more sub base means more faster revenue. why faster revenue? sub top-up already considered revenue. fast and easy money. however, this soon to be changed with new MFRS15 whereby unusued credit should not be considered revenue, even for postpaid topup. that's why even GST may take this approach by going with usage-based GST (you use how much, GST is applied to that usage, and revenue is recognized from that usage). buying more top-up will not be considered direct revenue. good for telco because they dont need to keep chasing you to pay bills! LOL~ you dont top-up, your number/prepaid expired. so, prepaid subs keep topping up just to keep the line alive. very tedious to maintain, better go for postpaid, some might say.
Postpaid Invoice billed not consider revenue?good to lock customers with postpaid, monthly recurring income and sometime more with vas/voice/sms/etc usages. problem: revenue is delayed. billed invoice is not considered revenue until customer pays them. then only the payment is captured as revenue. a lot of ppl not paying bills is not good for telco's cashflow.
prepaid has higher sub base. still 80:20 ratio or already lesser 75:25? still, more sub base means more faster revenue. why faster revenue? sub top-up already considered revenue. fast and easy money. however, this soon to be changed with new MFRS15 whereby unusued credit should not be considered revenue, even for postpaid topup. that's why even GST may take this approach by going with usage-based GST (you use how much, GST is applied to that usage, and revenue is recognized from that usage). buying more top-up will not be considered direct revenue. good for telco because they dont need to keep chasing you to pay bills! LOL~ you dont top-up, your number/prepaid expired. so, prepaid subs keep topping up just to keep the line alive. very tedious to maintain, better go for postpaid, some might say.
I thought revenue recognition stated that, revenue recognized upon services rendered or goods delivered? When was this standard changed?
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