IFRS 15 Step 1 identify the contract

A vendor sells 1,000 units of a product to a customer in return for a contractually agreed amount of CU 1 million. This is the vendor’s first sale to a customer in the geographic region, and the region is experiencing significant economic difficulty. The vendor believes that economic conditions will improve in future, and that by establishing a trading relationship now with the customer sales volumes in future will be enhanced. However, for this first contract, the vendor does not expect that the customer will be able to pay the full amount of the contractually agreed price.

Consequently, the vendor determines that it expects to offer a 50% discount to its customer. Having considered the customer’s intention and ability to pay, taking into account the current poor economic conditions, it is concluded that it is probable that
the estimated amount of CU 500,000 will be collected. If the other four criteria set out above are met, the contract for the sale of 1,000 units in return for estimated (and therefore variable) consideration of CU 500,000 is accounted for in accordance with
IFRS 15.

The discount offered 50,000 would be charged to P&L or just ignored?