International GAAP 2021

Chapter 29Revenue: determine and allocate the transaction price

• 1 INTRODUCTION
• 2 DETERMINE THE TRANSACTION PRICE
  • 2.1 Presentation of sales (and other similar) taxes
  • 2.2 Variable consideration
    • 2.2.1 Forms of variable consideration
      • 2.2.1.A Implicit price concessions
      • 2.2.1.B Liquidated damages, penalties or compensation from other similar clauses: variable consideration versus warranty provisions
      • 2.2.1.C Identifying variable consideration: undefined quantities with fixed per unit contractual prices
      • 2.2.1.D If a contract is denominated in a currency other than that of the entity’s functional currency, should changes in the contract price due to exchange rate fluctuations be accounted for as variable consideration?
      • 2.2.1.E Price protection or price matching clauses
      • 2.2.1.F Early payment (or prompt payment) discounts
    • 2.2.2 Estimating variable consideration
      • 2.2.2.A Situations in which an entity would not have to estimate variable consideration at contract inception under IFRS 15
    • 2.2.3 Constraining estimates of variable consideration
      • 2.2.3.A Applying the constraint on variable consideration: contract level versus performance obligation level
      • 2.2.3.B Would an entity be required to follow a two-step approach to estimate variable consideration?
      • 2.2.3.C Applying the constraint on variable consideration to milestone payments
    • 2.2.4 Reassessment of variable consideration
  • 2.3 Refund liabilities
  • 2.4 Rights of return
    • 2.4.1 Is an entity applying the portfolio approach practical ...