Let's say you have a rental contract (you're renting out equipment).

It's set for $3000 per month.

Year end is December 31st. Contract months are 2015 through to the end of 2016. So you're halfway through right now.

At December 2015, did you recognise anything on the balance sheet for the remainder of the contract in 2016?

edit - got an answer via pm but if anyone has anything to add I'm always listening

This post was edited by Canadian_Man on Apr 5 2017 11:15pm

Hold up I'm confused AF still

Well, I think the answer is:

Any future potential revenue for a contract that is in progress is not a part of the balance sheet, so long as no future consideration has been paid, and no future obligations have been satisfied yet.

So instead of increasing assets & liabilities, nothing increases. 0/0

This post was edited by Canadian_Man on Apr 6 2017 02:16am

No, none of it was prepaid