Yakub02
Banned
The transaction price is the amount of consideration an entity expects to be entitled to in exchange for the goods or services promised under a contract, excluding any amounts collected on behalf of third parties (for example, sales taxes).
Definition
A stand-alone selling price is the price at which an entity would sell a promised good or service separately to a customer.
Determine the transaction price -An entity must consider the terms of the contract and its customary practices in determining the transaction price.
The transaction price assumes transfers to the customer as promised in accordance with the existing contract and that the contract will not be cancelled, renewed or modified.
The transaction price is adjusted if the entity (e.g. based on its customary business practices) has created a valid expectation that it will enforce its rights for only a portion of the contract price.
The nature, timing and amount of consideration promised by a customer affect the estimate of the transaction price.
An entity must consider the effects of other factors when determining the transaction price including: variable consideration (including the constraining estimates of variable consideration); and time value of money
The objective is to allocate the transaction price to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer
Definition
A stand-alone selling price is the price at which an entity would sell a promised good or service separately to a customer.
Determine the transaction price -An entity must consider the terms of the contract and its customary practices in determining the transaction price.
The transaction price assumes transfers to the customer as promised in accordance with the existing contract and that the contract will not be cancelled, renewed or modified.
The transaction price is adjusted if the entity (e.g. based on its customary business practices) has created a valid expectation that it will enforce its rights for only a portion of the contract price.
The nature, timing and amount of consideration promised by a customer affect the estimate of the transaction price.
An entity must consider the effects of other factors when determining the transaction price including: variable consideration (including the constraining estimates of variable consideration); and time value of money
The objective is to allocate the transaction price to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which the entity expects to be entitled in exchange for transferring the promised goods or services to the customer
