Business Pitch Dictionary by pitch.dog
Accounting policy, GAAP & adjustments · Working

Transaction price

Also called: contract consideration

ELI5

Consideration expected for a contract, adjusted as required by the applicable accounting standard.

Used in conversation

“Keep transaction price on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Transaction price” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.

Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 4

Direct term-level sources and supporting source families.