Revenue – ifrs 15 handbook

Determine stand-alone
selling prices
(see Section 4.1)
Allocate the
transaction price
(see Section 4.2)

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4 Step 4 – Allocate the transaction price to the performance obligations in the contract | 91
4.1 Determine stand-alone selling prices
| 
4.1
Determine stand-alone selling prices
IFRS 15.77
The ‘stand-alone selling price’ is the price at which an entity would sell a promised 
good or service separately to a customer. The best evidence of this is an observable 
price from stand-alone sales of the good or service to similarly situated customers. 
A contractually stated price or list price may be the stand-alone selling price of that 
good or service, but this is not presumed to be the case.
IFRS 15.78
If the stand-alone selling price is not directly observable, then the entity estimates 
the amount using a suitable method (see 
4.1.1
) as illustrated below. In limited 
circumstances, an entity may estimate the amount using the residual approach 
(see 
4.1.2
).
IFRS 15.79
Adjusted
market
assessment
approach
Expected cost
plus a margin
approach
Residual
approach
(only in limited
circumstances)
Allocate based on relative stand-alone selling prices
Performance obligation 1
Performance obligation 2
Performance obligation 3