Revenue – ifrs 15 handbook

Performance 
obligation
Stated 
price
Stand-
alone 
selling 
price
Selling 
price 
ratio
Price 
allocation
Medical imaging 
device (stated price 
within range)
520,000
520,000
1
89.5%
493,145
One year of PCS 
(midpoint of range)
26,000
51,250
2
8.8%
48,488
Ten days of training 
(midpoint of range)
5,000
9,750
3
1.7%
9,367
Total
551,000
581,000
100.0%
551,000
Notes
1. The stated contract price is used because it falls within the narrow range.
2. The midpoint of the range 50,000–52,500 is used because the stated contract price is 
outside the narrow range.
3. The midpoint of the range 960–990 per day × 10 days is used because the stated price is 
outside the narrow range.
4.2.1 
Allocating a discount
IFRS 15.81
If the sum of the stand-alone selling prices of a bundle of goods or services exceeds 
the promised consideration in a contract, then the discount is generally allocated 
proportionately to all of the performance obligations in the contract. However, this 
does not apply if there is observable evidence that the entire discount relates to 
only one or more but not all of the performance obligations.

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102 | Revenue – IFRS 15 handbook
IFRS 15.82
This evidence exists, and a discount is allocated entirely to one or more, but not all, 
of the performance obligations, if the following criteria are met:
– the entity regularly sells each distinct good or service, or each bundle of distinct 
goods or services, in the contract on a stand-alone basis; 
– the entity also regularly sells, on a stand-alone basis, a bundle (or bundles) of 
some of those distinct goods or services at a discount to the stand-alone selling 
prices of the goods or services in each bundle; and
– the discount attributable to each bundle of goods or services is substantially the 
same as the discount in the contract, and an analysis of the goods or services in 
each bundle provides observable evidence of the performance obligation(s) to 
which the entire discount in the contract belongs.
IFRS 15.83
Before using the residual approach, an entity applies the guidance on allocating 
a discount.