Revenue – ifrs 15 handbook

Performance 
obligation
Stand-alone 
selling 
prices
Selling 
price ratio
Price 
allocation Calculation
Computer 
2,000
97.1%
1,942 (2,000 × 97.1%)
Voucher
60
1
2.9%
58 (2,000 × 2.9%)
Total
2,060
100.0%
2,000
Note
1. Stand-alone selling price for the voucher calculated as 500 estimated purchase of products 
× 15% incremental discount × 80% likelihood of exercise.

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266 | Revenue – IFRS 15 handbook
C purchases 200 of additional products (pre-discount) within 30 days of the 
original purchase for 150 cash payment.
C makes no additional purchases before the voucher expires. Therefore, at the 
expiry date R recognises the remaining amount allocated to the voucher as 
revenue.
R records the following journal entries.
Debit
Credit
Cash
2,000
Revenue
1,942
Contract liability
58
To recognise initial sale of computer and voucher
Cash
150
1
Contract liability
23
2
Revenue
173
To recognise subsequent purchase
Contract liability
35
3
Revenue
35
To recognise expiry of voucher
Notes
1. Discounted sale price of additional products purchased: 200 - (200 × 25%).
2. Partial satisfaction of performance obligation 58 × (200 purchases / 500 total expected 
purchases).
3. Settlement of performance obligation on expiry (58 - 23).
Determining whether a material right exists requires an