What does variable consideration mean?
Variable consideration is defined broadly and can take many forms, such as price concessions, rebates or refunds. Consideration is also considered variable if the amount an entity will receive is contingent on a future event occurring or not occurring, even though the amount itself is fixed.Click to see full answer. Also to know is, what is variable consideration ifrs15?Under IFRS 15 these amounts are referred to as ‘variable consideration’. At the start of the contract a seller must estimate the amount of consideration to which it expects to be entitled on the contract.
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