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THE PLAYGROUND

The two-clock experiment

Cash arrives. Revenue takes its time.

LIVE EXPERIMENT

The two-clock experiment

Revenue earned300
1202400
324
024

Before you move a sliderAfter month three, how much of a prepaid annual contract has been earned?

Revenue = 1200 × 3 / 12 = 300
READ THE MECHANISM

Moving time changes the earned amount and the remaining obligation. It does not collect the upfront cash a second time. At the end of the term, all service is delivered and the contract liability is zero.

Model assumptions & units

An evenly provided service, paid fully in advance, with no refunds or variable consideration. Revenue is capped at the contract term. Actual recognition follows the specific performance obligations.

Learn the thinking behind it