Comment by mediaman
6 hours ago
GAAP does not permit booking contracted future revenue onto the balance sheet or income statement, because the spend is not actually an unconditional debt until the service has been rendered.
It doesn't matter if it's committed or not, it still won't be recognized on the formal financial statements.
My understanding is that "use it or lose it" means you book it the last day of the contract or similar. Anyway not at the front so same point applies