What is a standalone selling price?
The standalone selling price is the price at which an entity would sell a promised good or service separately to a customer.
How is standalone price calculated?
Under the Residual Approach method, Standalone Selling Price is estimated by subtracting the sum of all observable Standalone Selling Prices of other goods or services promised from the total transaction price.
What is SSP in accounting?
The Standalone Selling Price (SSP) is a key element of the IFRS15 / ASC 606 accounting standard. The SSP is used as a ‘weighting’ factor to allocate the total revenue accounting contract transaction value to the performance obligations (POBs) and underlying assigned sales document items.
How do you calculate standard selling price?
To calculate the average selling price of a product, divide the total revenue earned from the product or service and divide it by the number of products or services sold.
What do you mean by stand alone?
a : intended, designed, or able to be used or to function alone or separately : not connected to or requiring connection to something else in order to be used or to function Run on kerosene or diesel, stand-alone cabin heaters operate without electricity …—
What is SSP in Saas?
SSP’s Software as a Service is a fully hosted and managed, off-the-shelf service-based insurance technology solution for core business operations. It provides an easily configurable, functionally rich set of capabilities.
What is ASC 606?
ASC 606 is the new revenue recognition standard that affects all businesses that enter into contracts with customers to transfer goods or services – public, private and non-profit entities. Both public and privately held companies should be ASC 606 compliant now based on the 2017 and 2018 deadlines.
What does SSP stand for in sales?
Suggested retail price. Suggested selling price. Different ways of saying the same thing.
What is transaction price?
The Transaction Price is the amount of consideration an entity expects to receive for the transfer of goods or services to the customer. The amount can be fixed, variable, or a combination of both. Transaction Price is allocated to the identified performance obligations in the contract.
How do you determine the selling price of a small business?
There are a number of ways to determine the market value of your business.
- Tally the value of assets. Add up the value of everything the business owns, including all equipment and inventory.
- Base it on revenue.
- Use earnings multiples.
- Do a discounted cash-flow analysis.
- Go beyond financial formulas.
How do you calculate selling price and cost?
To calculate your product selling price, use the formula:
- Selling price = cost price + profit margin.
- Average selling price = total revenue earned by a product ÷ number of products sold.
What is stand alone business?
A stand-alone business or organization is independent and does not receive financial support from another organization. [business] They plan to relaunch it as a stand-alone company. 2. adjective [ADJECTIVE noun]
Exact wording: Stand-alone selling price of a good or a service. The price at which an entity would sell a promised good or service separately to a customer. The best evidence of standalone selling price is the price that the entity charges for the good or service in a separate transaction with a customer.
What is standalone selling price (SSP)?
The Standalone Selling Price is the price at which the entity would sell a good or service separately to a customer. As per the New Revenue Standard, all Standalone Selling Prices need to be estimated if the selling price is not readily available.
How can an entity estimate the standalone selling price?
An entity may estimate the standalone selling price by reference to the total transaction price less the sum of the observable standalone selling prices of other goods or services promised in the contract. However, an entity may use a residual approach to estimate standalone selling price only if one of the following criteria is met:
How to determine the standalone selling price of telephone support?
Under the residual approach, Vendor Y determines the standalone selling price of the telephone support by reducing the transaction price ($6,000) by the amount of the observable standalone selling prices, or in this case, Product A ($5,000).