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Hi, we plan to change period of recognition of up-front/activation fee (for all contract we spread such fee over estimated expected period) and I have some questions:
1. Is it regulated by IFRS 15 (any kind of contract modification) or IAS 8 (as change of estimate)?
2. Can such change be made during a year, e.g. starting from May or should it be made starting from January even if it the decision is made in May?
3. Should such change be made prospectively?
Thanks

Why are you changing it

Currently we assess that our relalionship with customers on average will be shorter than previously estimated

Are these fees treated as separate performance obligations? If they aren't, how do you recognise revenue for the performance obligations that include these fees?

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