Telco F provides a customer with a credit in the current month due to a short period of service quality issues experienced in the prior month (often referred to as a ‘goodwill credit’). Telco F determines that this results in a change in
the transaction price, rather than variable consideration (see 4.2). Because the goodwill credit relates to a satisfied PO, the credit is recognized in its entirety in the month in which it is granted (i.e. when Telco F promises to pay the consideration).