Stand-alone selling price
Use observable separate sales where available. Otherwise estimate the price using suitable information and a method consistent with IFRS 15, such as adjusted market assessment or expected cost plus a margin. Generally allocate the contract transaction price across distinct performance obligations in proportion to these prices; a discount or variable consideration is allocated differently only when specified conditions are met.
Worked example
A product and service sell separately for $80 and $20. A bundle sells for $90. On relative stand-alone prices, allocate $72 to the product and $18 to the service, then recognise each amount as its obligation is satisfied.
Common mistake
Allocating according to the order of delivery or assuming the price printed for a bundled item always equals its stand-alone selling price.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |