Maintenance contract - 3 years £200k per year.
accounting treatment - prepaid each instalment (annual payments up front)and release strightline each month - matching principle.
Q) If there was a condition in the contract where if you paid upfront for 3 years you would receive a 10% discount, how does this impact the accounting treatment. Or would you simply just prepay £540k and release over 36 mths. Are there any accounting standards I should be looking into/thinking of ?