neb:

 

Handle9: Carried over customer credit shows as a liability on their balance sheet without corresponding cashflow. They likely won’t be able to recognise the revenue for the credit until the credit is released, one way or the other.

 

Wouldn't that be compensated for by the breakage from the unused credit balance?

 

(You give the telco X amount of money, they invest it and collect interest while your account with them sits idle).

 

I am talking about balance sheet recognition rather than cash. They are two different things.

Generally you can't recognize revenue without taking the cost and I would assume that you can't take the cost without the credit being consumed.

On the cash side they can just use it however they like. 

Edit: Edited cash bit for clarity