ACCA FR · Chapter 5 · Question 3 of 11
Under IFRS 15, when may variable consideration (such as a performance bonus) be included in the transaction price?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Only to the extent that it is highly probable that a significant reversal of revenue will not occur when the uncertainty is resolved
Explanation
Variable consideration is estimated using either the expected value or the most likely amount. It is then constrained: it is included only to the extent that it is highly probable a significant reversal of cumulative revenue will not occur. The estimate is reassessed at each reporting date.
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