The transaction price in a contract includes variable consideration when the amount the entity will receive is dependent on the outcome or future events, such as the success of a legal case or the achievement of specific performance targets. Let's examine each scenario:
-
For Trust in Law Inc., the variable consideration depends on the outcome of the court case, which is uncertain. The company estimates that there's an 80% chance of a positive outcome, and they've chosen the most likely amount method to determine the variable fee, which is appropriate when there is a range of possible outcomes and the most likely amount provides a better prediction of the expected consideration.
-
In the case of Build Together Ltd. and the construction of the oil rig for G&O Inc., thelice of variable consideration adds several different跨多个可能的结果，因此，Build Together Ltd. would calculate the cost of variable consideration to reflect the outcome of both parties' potential consideration. This method is consistent with the IFRS.
-
Both consideration for the warranty period, and虽然是潜在估计的损失估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计的估计
