Variable consideration: Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events. Transaction price: Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows: Variable amount of consideration and the restriction on its recognition Rights for sales return Whether the seller is acting as a principle or an agent Time value of money Payments by the seller to the customer To estimate: The variable consideration included in transaction price.

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Chapter 5, Problem 5.10Q

To determine

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Transaction price:

Transaction price refers to the price that is paid at the time of delivery or after delivery of goods and/or services. Specific situations affecting the transaction price are as follows:

Variable amount of consideration and the restriction on its recognition

Rights for sales return

Whether the seller is acting as a principle or an agent

Time value of money

Payments by the seller to the customer

To estimate: The variable consideration included in transaction price.

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