Transaction Price
Accounting glossary · Understand, connect, apply
Under IFRS 15, the transaction price is the consideration a seller expects to be entitled to for transferring promised goods or services. Amounts collected on behalf of third parties are excluded.
Example
A shop invoices 1,080, including 80 in sales tax collected for the government. With no other adjustments, the transaction price is 1,000.
Remember the difference
A contract amount may need adjustment for items such as discounts, rebates or financing. The cash collected to date is a separate figure.
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Published 9 November 2026. Prepared with AI assistance. Examples are fictional and simplified for learning.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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