Revenue – ifrs 15 handbook

4.2 
Allocate the transaction price
Allocating the transaction price may be simple if stated contract prices are acceptable estimates of stand-alone
selling price ..................................................................................................................................................................... 99
Additional calculations are necessary if the stand-alone selling price of one or more performance obligations
differs from its stated contract price .............................................................................................................................. 100
Analysis is required when a large number of goods or services are bundled in various ways ........................................ 103
Determination of ‘regularly sells’ is a key judgement ..................................................................................................... 103
Guidance on allocating a discount typically applies to contracts with at least three performance obligations ................ 104
Variable consideration allocation guidance is applied before the guidance on allocating discounts ................................ 107
Evaluating whether the allocation objective is met when allocating variable consideration to a distinct service
period in a series ........................................................................................................................................................... 108
4.3 Changes in the transaction price
5 
Step 5 – Recognise revenue when or as the entity satisfies a performance obligation
5.1 
Transfer of control
Use of control concept to recognise revenue aligns with the accounting for assets .......................................................114
5.2 Performance obligations satisfied over time
Differences in assumptions used when applying Criteria 1 and 3 ...................................................................................117
Determining whether a commodity transfers over time may depend on Criterion 1 .......................................................117
Application to service concession arrangements ...........................................................................................................118
Many factors to consider when evaluating alternative use .............................................................................................119
Evaluating whether costs of rework are significant ....................................................................................................... 120
A right to payment may be established by relevant laws and regulations ...................................................................... 124
Use of legal opinion when assessing enforceability of right to payment........................................................................ 125
Agreements for the construction of real estate may have different patterns of transfer of control................................. 125
Enforceable right to payment for standard materials used as inputs ............................................................................. 126
Termination of an over-time contract ............................................................................................................................. 126

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358 | Revenue – IFRS 15 handbook