Testra Bundle Contracts Case Study

Individual parties that are contracting with an entity to attain the outputs of that company’s ordinary activities in reciprocation for consideration, for example, Telstra’s bundle contracts.
Therefore, the contract agreement (implied or written) becomes noted by the provider as a customer contract, hence the commitments of both parties concerning the transfer of outputs “are identifiable”, increasing the collection prospect for consideration of those goods/services while supporting economic substance. (AASB 15.9)

Contracts comprise of performance requirements that are “promises” to deliver distinct goods/services (AASB 15.22) Consequently, outputs are competently separate if it deems beneficial to its customers or is discretely classifiable from other promises. Contrarily, it’ll be acknowledged as a bundle and reallocates itself as a combined item (AASB 15.30)

Similarly, these alterations can be made on prices whether fixed or variable costs, according to the time value of money outcomes as a result of contracts financing components or consideration outstanding to consumers. Thus, deliberations on variable factors allow companies to estimate the compensation quantity the exchange grants arising from the transfer, hence recognising the transaction price and its limitations as a result. (AASB 15.53;