AASB 15 Revenue from Contracts with Customers 87-90: Allocate later transaction price changes on the inception basis, recognising amounts for satisfied obligations immediately, and apply the modification rules for changes that arise from a modification

What does 87-90 require?

After inception the transaction price can change as uncertainties resolve or circumstances alter. Such changes are allocated on the same basis as at inception, never reallocated for changed stand-alone selling prices, and amounts attributed to satisfied obligations are recognised as revenue or its reduction in the period of change. A change is allocated wholly to specific obligations or distinct items only when the variable consideration attribution criteria are met. A price change caused by a modification follows the modification rules; a change arising after a modification is allocated to the pre-modification obligations where it relates to variable consideration promised before a modification treated as a termination and new contract, and otherwise to the obligations of the modified contract.