Allocating the transaction price to the performance application in a contract with a customer is essential for revenue recognition.
First of all, identification of the performance of obligations in the contract and determination of a transaction price is beneficial for reaching the entities
Transaction price also reflects the consideration of the entity except to receive was it meets the performance of applications in the contract.
Actually, allocation of the transaction price is done totally based on the performance of applications in the contract.
The overall objective of allocating the transaction price is to arrive at an allocation that represents the amount of considering the entity.