Company: TCMFF
Filing Date: 2025-05-19
Form Type: 6-K
Source: 0001104659-25-050264
Chunk: 49

Company: TELECOM ARGENTINA SA
Filing Date: 2025-05-19
Form: 6-K
Chunk 49
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 used by customers, are recognized in the period in which the calls are made.

Revenues from handset and equipment sales are
recognized when the sale is considered completed. Generally, the sale is considered completed when the handsets are delivered to the end
customer. Discounts on handsets and equipment sales are recognized as a reduction in revenues.

For commercial packages combining several goods
and services such as telephone, data, internet, and television services, revenues are allocated to each performance obligation based on
the selling price of each individual component relative to the total price of the package, and is recognized when (or as) the obligation
is satisfied, regardless of whether there are pending deliverables. To the extent that packages are marketed with discounts on equipment
and penalties for terminating the service contract before a stated date, an increase in revenues from the sale of equipment is recorded,
which will be generally recognized at the time of delivery to the customer, at the expense of recurring service revenues in later periods
until the end of the period in which the termination penalty applies. The difference between the revenues from equipment and handset sales
and the amount received from the customer at the start of the contract is recorded as a contractual asset in the statement of financial
position. Also, certain contractual modifications are recorded retrospectively (as a continuation of the original contract), while others
are recognized prospectively as a separate contract, accounting for the termination of the existing contract and the creation of a new
one.

IFRS 15 establishes a global framework for determining
when and how to recognize revenue from ordinary activities and its amount. The basic principle is that an entity should recognize revenue
from ordinary activities in such a way that it reflects the transfer of goods or services committed to the customer in exchange for an
amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services.

Costs associated with contracts with customers are recognized as an asset when these costs are incremental to obtaining a contract (sales
commissions and other third-party expenses) and are expected to be recovered, with the subsequent allocation to the income statement to
the same extent as the revenue related to that asset is recognized. The Company recognizes the costs of obtaining contracts as expenses
when incurred if their expected amortization period is one year or less. A similar treatment applies to costs of contract performance,
such as labor and materials associated with that contract.

In the Company, connection fees are recognized
in the income statement on a straight-line basis over the customer’s average life span.

There are certain