BC184 Determining the transaction price is an important step in the revenue recognition model because the transaction price is the amount that an entity allocates to the performance obligations in a contract and ultimately recognises as revenue.
BC185 The boards decided to define the transaction price as the amount of consideration to which an entity expects to be entitled in exchange for transferring goods or services. Consequently, the objective in determining the transaction price at the end of each reporting period is to predict the total amount of consideration to which the entity will be entitled from the contract. In developing IFRS 15, the boards decided that the transaction price should not be adjusted for the effects of the customer's credit risk (see paragraphs BC259-BC265) unless the contract includes a significant financing component (see paragraphs BC229-BC247).
BC186 The boards clarified that the transaction price should include only amounts (including v
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