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IFRS 15 Revenue for contracts with customers

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 15 Revenue for contracts with customers

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarP2-D2.
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  • August 17, 2019 at 2:42 pm #527872
    Avatarresearcher1
    Member
    • Topics: 36
    • Replies: 6
    • ☆

    Under the five step model, in determining the transaction price, it is said that, ‘an entity can only include variable consideration in the transaction price to the extent that it is highly probable that a subsequent change in the estimated variable consideration will not result in a significant revenue reversal’. Can you say what this means sir?

    August 18, 2019 at 7:41 am #527929
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    Highly probable means that it is more likely than not to be received and so we can include it in the calculations.

    Thanks

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