ACCOUNTING OF VARIABEL CONSIDERATION FROM THE PURCHASER´S PERSPECTIVE
DOCUMENT 33 - PRINCIPLES AND ACCOUNTING STANDARDS
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28 Pages
Publication Year: November 2025 (1st edition)
Document Speakers: ARACELI MORA, Universidad de Valencia and HORACIO MOLINA, Universidad Loyola Andalucía.
INDEX
1. INTRODUCTION
2. SCOPE
2.1. The controlled asset
2.2. The variable component in the transaction price
2.2.1. The economics of the variable consideration
2.2.2. The characteristics of the variable consideration
2.2.3. Identification of facts and circumstances of the asset existing at the transaction date
3. RECOGNITION AND VALUATION OF THE VARIABLE COMPONENT THAT FORMS PART OF THE INITIAL VALUE OF THE ASSET
3.1. Initial recognition and measurement
3.2. Subsequent measurement
4. ILLUSTRATIVE EXAMPLES
4.1. Variable components under the scope
4.2. Out-of-scope variable components
5. CONCLUSIONS
RESUMEN
The treatment of variable consideration in acquisitions of non-monetary assets from the buyer’s perspective remains an unresolved issue in international accounting standards. The reasons for incorporating a variable component into the price can be very diverse. However, in general, in a contract with economic substance, they will either be related to situations of uncertainty and/or asymmetry of information between the buyer and seller about the value of the asset at the initial moment; or it will be an agreement between the parties to participate in changes in the facts and circumstances of the asset at a time after its purchase.
This document is intended to provide principles for identifying which variable component refers to the initial circumstances of the asset, and must therefore be included in its initial value, and when it should be recognised in the accounts, which will depend on whether the requirements for recognising the corresponding liability are met, as well as the treatment when the event referred to in the variable clause is subsequently confirmed or not. To this end, the document includes a conceptual argument, a methodology for analysing situations, a list of indicators or signs for applying professional judgement, and a set of examples to help understand the principles and indicators presented.
The proposal is compatible with current Spanish regulations and can guide professional practice in situations where treatment is unclear.
