EFRAG publishes Discussion Paper Accounting for Variable Consideration
29 September 2022
EFRAG has published a Discussion Paper Accounting for Variable Consideration: From a Purchaser’s Perspective.
The Discussion Paper focusses on two issues faced by purchaser entities on variable consideration:
1. when to recognise a liability for variable consideration
2. whether/when subsequent changes in the estimate of variable consideration should be reflected in the cost of the acquired asset.
The Discussion Paper also presents alternatives for accounting requirements for the two issues
The Discussion Paper may be accessed here.