Asked by: Sonam Rihlasked in category: General Last Updated: 17th April, 2020
What is consideration payable to a customer?
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Also to know is, what is variable consideration ifrs15?
Under IFRS 15 these amounts are referred to as 'variable consideration'. At the start of the contract a seller must estimate the amount of consideration to which it expects to be entitled on the contract. This estimate is updated at each reporting date until no further consideration is receivable.
Additionally, is shipping a performance obligation? Shipping is not a separate performance obligation when an entity controls the goods until they are unloaded. An entity recognises revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. This is because the seller has no further obligations at that point.
Also to know is, what is non cash consideration?
Non-cash consideration can typically be defined as consideration which is received or receivable by the customer which is in a form other than cash.Examples of non-cash consideration typically include: ➢ Shares. ➢ Material, equipment and labor.
What is a material right?
A material right is an option to purchase additional goods or services at a price that is less than what the customer would have paid if they had not entered into the contract. If this right exists in the contract, then it should be accounted for as a separate performance obligation.