IFRS 15Chapter 5Lesson 3
Step 3: non-cash consideration and consideration payable to a customer
Step 1 of 8Learning objectives
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Two specific situations complete the transaction price. When the customer pays in a form other than cash (shares, goods, services, materials the entity obtains control of), the consideration is measured at fair value, or otherwise by reference to the stand-alone selling price of what the entity promises. When it is the entity that pays something to the customer (listing fees, coupons, credits), the payment reduces the transaction price unless it pays for a distinct good or service, and the reduction is recognised at the later of two dates.
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Learning objectives
- Measure non-cash consideration at fair value, or otherwise by reference to the stand-alone selling price of the promised goods or services.
- Recognise when goods or materials supplied by the customer, or a change in non-cash consideration, affect the transaction price.
- Determine whether consideration payable to a customer reduces the transaction price or pays for a distinct good or service, and calculate any excess.
- Date the recognition of the reduction of revenue.