IFRS 15 Constraining estimates

Last Updated on 10/02/2021 by 75385885

IFRS 15 Revenue from Contracts with CustomersIFRS 15 Constraining estimates

IFRS 15 Constraining estimates

Constraining estimates of variable consideration

Part of the main section Measurement – Determining the transaction price

IE109 Examples 22–25 illustrate the requirements in paragraphs 56–58 of IFRS 15 on constraining estimates of variable consideration. In addition, the following requirements are illustrated in these examples:

  1. paragraph 55 of IFRS 15 on refund liabilities (Example 22);
  2. paragraphs B20–B27 of IFRS 15 on sales with a right of return (Example 23); and
  3. paragraphs 84–86 of IFRS 15 on allocating variable consideration to performance obligations (Example 25).

See examples below for further explanatory information (click Example below)

Example 22—Right of return

Example 23—Price concessions

Example 24—Volume discount incentive

Example 25—Management fees subject to the constraint

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Last Updated on 10/02/2021 by 75385885

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