Page 177 - F2 Integrated Workbook STUDENT 2019

Revenue from contracts with customers

Non-cash consideration

The sale may include payments in shares or goods (e.g. part exchange
arrangements) rather than cash.

Any non-cash consideration is measured at its fair value.

Consideration payable to a customer

 If consideration is paid to a customer in exchange for distinct goods or service,
then it should be accounted for as a separate purchase transaction.

e.g. a farm sells milk to a large supermarket but pays for premium shelf space

 Assuming that the consideration paid to a customer is not in exchange for
distinct goods or services, an entity should account for the payment as a

reduction in the transaction price.

e.g. an electric car manufacturer sells electric cars to dealerships and
contributes towards the cost of the dealership installing charging equipment.

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