Module I· Revenue Recognition (IFRS 15)Intermediate
Question
How do you treat variable consideration such as bonuses and volume rebates?
Answer
Variable consideration is included only when it is highly probable that no significant reversal will occur. Estimate it using expected value or most-likely amount.
Deep diveShow more details
Rebates and penalties are classic QoE adjustment areas. In DD, reconcile accrued rebates to customer contracts and subsequent settlements.