Revenue – ifrs 15 handbook

Performance 
obligation
Stand-alone 
selling price
Price 
allocation Calculation
Gift cards
200
200
Products
1,000
913 1,000 × (1,000 / 1,095)
Loyalty points
95
87 1,000 × (95 / 1,095)
Total
1,295
1,200
Analysis is required when a large number of goods or services are 
bundled in various ways
Some arrangements involve several different goods or services that may be 
sold in various bundles. In this case, an entity may need to consider numerous 
possible combinations of products to determine whether the entire discount in 
the contract can be allocated to a particular bundle. This raises the question of 
how much analysis needs to be performed by an entity that sells a large number 
of goods or services that are bundled in various ways and for which the discount 
varies based on the particular bundle.
This analysis is required only if the entity regularly sells each good or service – 
or bundle of goods or services – on a stand-alone basis. Therefore, if the entity 
regularly sells only some of the goods or services in the contract on a stand-
alone basis, then the criteria for allocating the discount entirely to one or more, 
but not all, of the performance obligations are not met and further analysis is 
not required.
Determination of ‘regularly sells’ is a key judgement
Under the guidance on allocating a discount entirely to one or more 
performance obligations, a bundle of goods or services has to be regularly 
sold on a stand-alone basis. An entity may need to establish a policy to define 
‘regularly sells’.
The entity needs processes and related controls to monitor sales transactions 
and determine which bundles are regularly sold.

---

© 2019 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
104 | Revenue – IFRS 15 handbook