Variable selling price For some sales transactions, the selling price is variable, such as for example. B guarantees of residual value. The valuation of the variable selling price uses the expected value method and the turnover is accounted for if it is very likely that there will be no reversal. Both the expected value method and the maximum probability assessment require judgments in order to make estimates. Estimates are made at the beginning of the contract, with continuous evaluation during each reference period. In the redemption provision, a franchisee often indicates that he has the first right to buy back the franchise if the franchisee opts for the sale. Another example is a manufacturer selling bulk goods to a distributor. The distributor experienced financial difficulties and decided to terminate the contract.
Sale And Buy Back Agreement
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