UK Deferred Income

[adigem00]

My company has made a rent agreement and according to contract we will provide our hotel for eight months to another company and receive payments in three installments. The contract is signed and the first installment received at the time of signing the contract. I'm using the following method to record the contract in company books. All I wan to know is it valid according to IAS/IFRS

1- To Recognize complete contract:

Account Receivable Dr.1200000
Deferred Income Cr.1200000

2- To Recognize receipt of Installment:

Bank Dr.400000
Account Receivable Cr.400000

3- To Recognize the revenue at the end of month:

Deferred Income Dr.150000
Rental Income Cr.150000

I'll appreciate your guidance

 

[kirby]

Method is valid.

 

[internal auditor]

Dear,
You have received the first installment in advance and that is not earned at that time so it should also be treated as liability until it is earned e.g. at the end of a period where the first installment is earned or due.

Regards,
Manzoor ahmed

 

[accounting nerd]

Yes, looks good. At least according to US GAAP, still need to catch up on my IFRS.