Slide 1

Tp, excluding
Recognition on satifsaftion

Complexiti4es may arise on acc of 5 factors

An amount of consideration can vary because of discounts, rebates, refunds, credits, price
concessions, incentives, performance bonuses, or other similar items.
The promised consideration can also vary if an entity’s entitlement to the consideration is
contingent on the occurrence or non-occurrence of a future event. For example, an amount of
consideration would be variable if either a product was sold with a right of return or a fixed
amount is promised as a performance bonus on achievement of a specified milestone

Disc rebate ferund.

Reassessment at each bs date

Penalty incl if inherent in tp

A gift card has already been purchased, but the

timing of when the card will be used is at the
discretion of the customer.

A substantial portion of the consideration is The consideration of the transaction is sales-

variable and not under the control of the entity or based royalty.
customer.

The difference between the promised A customer withholds payment from an

consideration and the cash selling price of the entity to ensure that all performance
goods or services is due to something other than obligations are performed as specified in the
financing. contract.

Fair value