Discuss when it is acceptable to use the residual approach to allocate the transaction price to performance obligations.

Name: Discuss when it is acceptable to use the residual approach to allocate the transaction price to performance obligations.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Answer is The residual approach may only be used if either (i)the good or service in question have a highly variable selling price, or (ii)the entity has not yet established a price for that good or service.

Discuss When It Is Acceptable to Use the Residual Approach