contract liabilities
[/ˈkɒntrækt laɪˈbɪlɪtiz/]
noun
passivos contratuais
1. Obligations or debts arising from contractual agreements that a company or individual must fulfill, typically recorded as liabilities on a balance sheet
The company recognized contract liabilities for advance customer payments received before service delivery.
A empresa reconheceu passivos contratuais pelos pagamentos de clientes antecipados recebidos antes da entrega do serviço.
2. In accounting (IFRS 15), amounts owed to customers when advance payments are received or when performance obligations have not yet been satisfied
Under IFRS 15, contract liabilities represent the entity's obligation to transfer goods or services to customers in exchange for consideration already received.
Sob IFRS 15, os passivos contratuais representam a obrigação da entidade de transferir bens ou serviços aos clientes em troca da consideração já recebida.
This is a technical accounting term widely used in Brazil and internationally following IFRS 15 standards implementation. It's particularly important in companies dealing with advance payments, subscriptions, or long-term service contracts. The term reflects the shift from ASC 606/IFRS 15 revenue recognition standards that became effective globally.
Related Idioms & Phrases
fulfill contractual obligations
settle contract liabilities
defer revenue recognition
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