BC248 When an entity receives cash from a customer in exchange for a good or service, the transaction price and, therefore, the amount of revenue, should be the amount of cash received (ie the value of the inbound asset). To be consistent with that approach, the boards decided that an entity should measure non-cash consideration at fair value. The non-cash consideration could be in the form of goods or services, but it may also be in the form of a financial instrument or property, plant and equipment. For example, an entity might receive an electrical substation in exchange for connecting houses in a new residential development to the electricity network.
BC249 The boards decided that if an entity cannot reasonably estimate the fair value of the non-cash consideration, it should measure the promised consideration indirectly by reference to the stand-alone selling price of the goods or services promised in exchange for the consideration. That approach is consistent both
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