Deadline approaching - Provide your comments on EFRAG’s Discussion Paper Accounting for Variable Consideration - From a Purchaser’s Perspective

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On 27 September 2022, EFRAG published its Discussion Paper on Accounting for Variable Consideration. 

The Discussion Paper focuses 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 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.

EFRAG encourages stakeholders to provide comments before 30 November 2023.