# How should we account for prepaid session packages?

URL: https://tymirahealth.com/resources/faqs/how-should-we-account-for-prepaid-session-packages
For: Finance | Billing and payments | Reviewed by Independent clinical reviewer, Registered mental health clinician, Kenya | Last reviewed 8 November 2026

**Answer:** Money received for sessions not yet delivered is usually treated as a liability (deferred income or a contract liability) and recognised as revenue when each session is delivered. Your written terms should cover expiry, transfers and refunds for unused sessions, and what happens if a client leaves treatment early on clinical advice. Track package balances per client so refunds and audits are straightforward. Ask your accountant to confirm treatment under the accounting framework you report under.

Sources: IFRS Foundation: https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/

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