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pretty sure that's what the "spend commitment" changes. It's a "use it or lose it" agreement. It's as good as a debt the moment it is signed, used or not.

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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

I think they declare it as pipeline revenue or something instead of current year revenue

RPO remaining performance obligations (not on balance sheet) unless prepaid then its deferred revenue (balance sheet). When it’s consumed it is recognized as revenue.

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