AASB 15 Revenue from Contracts with Customers 73-80: Split the transaction price across performance obligations in proportion to stand-alone selling prices determined at inception, estimating unobservable prices with observable inputs and consistent methods

What does 73-80 require?

The allocation objective is to assign to each performance obligation the consideration the entity expects for transferring it, which is done pro rata to stand-alone selling prices except for discounts and variable amounts allocated under paragraphs 81 to 86; single-obligation contracts skip allocation unless a series with variable consideration is involved. The stand-alone selling price is what the entity would charge for that item sold separately, best evidenced by observable separate sales in similar circumstances to similar customers; a list or contract price may but need not be that price. Unobservable prices are estimated using all reasonably available information, market conditions, entity-specific factors and customer class, maximising observable inputs and applying methods consistently. Suitable methods include adjusted market assessment, expected cost plus margin, and the residual approach, which is permitted only where the selling price is highly variable or has not yet been established; combinations of methods are checked against the allocation objective.