AASB 15 Revenue from Contracts with Customers B77-B86: Apply the control analysis to consignment, bill-and-hold and customer acceptance arrangements: no revenue for consigned goods, bill-and-hold only when all four criteria hold, and acceptance deferred only where it is substantive

What does B77-B86 require?

Goods delivered to a dealer or distributor on consignment, indicated by the entity's control until a specified event, its ability to recall or redirect the goods and the absence of an unconditional payment obligation, are not revenue on delivery. In a bill-and-hold arrangement the customer can obtain control while the entity holds the goods only if the reason for the arrangement is substantive (such as the customer requesting it), the goods are identified separately as the customer's, they are ready for physical transfer, and the entity cannot use them or redirect them to another customer; the entity then considers whether custodial services are a separate performance obligation. Customer acceptance clauses defer recognition only where the entity cannot objectively determine that the agreed specifications are met; where it can, acceptance is a formality, and goods delivered for trial or evaluation with no commitment to pay are not transferred until acceptance or the trial period lapses.