Lesson · IFRS 15
Step 3: transaction price and variable consideration
Determine the transaction price as the amount the entity expects to be entitled to, excluding amounts collected for third parties.
9 minutes Standard as at 20 July 2026
What you will be able to do
- Determine the transaction price as the amount the entity expects to be entitled to, excluding amounts collected for third parties
- Identify variable consideration and estimate it using the expected value or the most likely amount
- Apply the constraint so that only amounts highly probable not to reverse are included
- Account for consideration payable to a customer and reassess estimates at each reporting date
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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.