For the purpose of allocating the transaction price to multiple performance obligations, if a stand-alone selling price cannot be directly observed, the seller should:______

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22-07-2022
Business

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For the purpose of allocating the transaction price to multiple performance obligations, if a stand-alone selling price cannot be directly observed, the seller should:______

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-08-01T06:00:39+02:00

For the purpose of allocating the transaction price to multiple performance obligations, if a stand-alone selling price cannot be directly observed, the seller should estimate the stand alone price by seeing all the things that maximizes the use of observable inputs.

Seller must apply different estimation methods which are consistent to similar circumstances of the not availability of stand alone price.

Different methods which can be used for estimating the stand-alone selling price of a good or service include the following:

Expected cost plus margin

Adjusted market assessment

Residual value.

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