Lesson · IFRS 15
Step 4: allocating the price
Allocate the transaction price in proportion to standalone selling prices at contract inception.
9 minutes Standard as at 12 October 2026
What you will be able to do
- Allocate the transaction price in proportion to standalone selling prices at contract inception
- Estimate an unobservable standalone selling price using the methods IFRS 15 permits, including when the residual approach may be used
- Decide whether a discount is spread across all obligations or allocated to a subset under the three IFRS 15.82 criteria
- Allocate variable consideration entirely to one obligation when the IFRS 15.85 criteria are met
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IFRS and SAM, one requirement at a time
Each week you get the Institute's new articles: one requirement of IFRS 17, IFRS 9, IFRS 15, IFRS 18 or SAM, worked on a South African case. You start with the free IFRS 18 readiness checklist, ten areas to work through before IFRS 18 takes effect, each with its paragraph reference.