Page 540 - Large Business IRS Training Guides
P. 540
AFS Treatment
Variable Consideration
• For AFS purposes, taxpayers may be required
to take into account variable consideration
when determining the transaction price of an
item in a contract.
• What is “variable consideration”?
• Discounts, rebates, refunds, credits, price
concessions, incentives, performance
bonuses, penalties, and other similar items.
41
