Revenue – ifrs 15 handbook

4 
Step 4 – Allocate the transaction price to the performance obligations in the contract
4.1 Determine stand-alone selling prices
Example 1 – Estimating stand-alone selling price: Residual approach ............................................................................. 96
4.2 
Allocate the transaction price
Example 2 – Allocating the transaction price ................................................................................................................... 99
Example 3 – Allocating a discount: Transaction involving a customer loyalty programme .............................................. 102
Example 4 – Allocating a discount: Discount allocated entirely to one or more, but not all, performance obligations
in a contract ................................................................................................................................................................... 104
Example 5 – Allocating a discount: Bundle discount allocated to all performance obligations in a contract .................... 105
Example 6 – Allocating variable consideration: Variable consideration allocated entirely to one performance
obligation in the contract ............................................................................................................................................... 106
Example 7 – Allocating variable consideration: Each shipment is a distinct performance obligation .............................. 107
Example 8 – Allocating variable consideration: Series of distinct services ..................................................................... 108
Example 9 – Technology company: Up-front fees and allocation of variable consideration ............................................. 109
Example 10 – Pharmaceutical company: Allocating elements of the transaction price to specific performance
obligations ......................................................................................................................................................................110
Example 11 – Pharmaceutical company: Allocating variable consideration to multiple performance obligations ............110