Revenue – ifrs 15 handbook

If there is a range of observable prices, then a stated contract 
price within the range may be an acceptable stand-alone selling 
price
In some cases, an entity may sell a good or service separately for a range of 
observable prices. When this is the case and the stated contract price is within 
a sufficiently narrow range of observable selling prices, it may be appropriate 
to use a stated contract price as the estimated stand-alone selling price of the 
good or service.
To determine whether this is appropriate, the entity assesses whether an 
allocation of the transaction price based on such an estimate would meet 
the allocation objective (see 
Section 4.2
). As part of this assessment, the 
entity considers all information that is reasonably available (including market 
conditions, entity-specific factors, information about the customer or class of 
customer, how wide the range of observable selling prices is and where the 
stated price falls within the observable range).
For example, Company D sells a licence plus post-contract customer support 
(PCS) for 450. The stated price for PCS in the contract is 206. D regularly sells 
the same PCS separately for observable prices ranging from 200 to 210. In this 
example, the stated price is within a reasonably narrow range of observable 
prices and, assuming that there are no other indicators that using the stated 
price would not meet the allocation objective, it may be appropriate to conclude 
that 206 is a reasonable estimate of the stand-alone selling price for the PCS 
that can be used in determining how to allocate the contract consideration of 
450 between the licence and PCS.

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4 Step 4 – Allocate the transaction price to the performance obligations in the contract | 95
4.1 Determine stand-alone selling prices
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