09/03/2023 - EFRAG extends the deadline to respond to its Discussion Paper - Accounting for Variable Consideration - From a Purchaser's Perspective
EFRAG published its Discussion Paper on Accounting for Variable Consideration on 27 September 2022. To allow more time for interested stakeholders to provide their views, responses are now requested by 30 November 2023.
On 27 September 2022, EFRAG published its Discussion Paper on Accounting for Variable Consideration. To allow more time for interested stakeholders to provide their views, the deadline has been extended from 31 May 2023 to 30 November 2023.
The Discussion Paper identifies the accounting issues about variable consideration faced by purchaser entities. The Discussion Paper focusses on two issues faced by purchaser entities where there is divergence in practice. These are (a) when to recognise a liability for variable consideration; and (b) 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 and outlines the qualitative characteristics of useful information for each of these alternatives. In addition, the Discussion Paper assesses the general IFRS requirements for variable consideration.
