Q Limited offers a new product X for sale to its customers at a price of 1,500. As a part of the Scheme, Q Limited gives the customers a discount…

Since all customers will receive a 5% discount on purchases during the next 30 days, the only additional discount that provides the customer with a material right is the incremental discount of 25% on the products purchased. The entity accounts for the promise to provide the incremental discount as a separate performance obligation in the contract for the sale of Product X. The entity believes there is 80% likelihood that a customer will redeem the voucher and, on an average, a customer will purchase - 1,000 worth of additional products. Consequently, the entity's estimated stand-alone selling price of the discount voucher is 200 (₹ 1,000 average purchase price of additional products x 25% incremental discount x 80% likelihood of exercising the option). The stand-alone selling prices of Product X and the discount voucher and the resulting allocation of the - 1,500 transaction price are as follows: Performance obligations Stand-alone selling price ₹ Product X 1,500 Discount voucher 200 Total 1,700 Performance obligations ₹ Allocated transaction price ₹ Product X (1,500 ÷ 1,700 × 1,500) 1,324 Discount voucher (200 ÷ 1,700 × 1,500) 176 Total 1,500 The entity allocates - 1,324 to Product X and recognizes revenue for Product X when control transfers. The entity allocates 176to the discount voucher and recognizes revenue for the voucher when the customer redeems it for goods or services or when it expires.