What is a Standalone Selling Price (SSP)?

The Standalone Selling Price (SSP) is the price at which an entity would sell a promised good or service separately to a customer. This is a fundamental concept in revenue recognition standards (ASC 606 and IFRS 15) for allocating the transaction price to distinct performance obligations within a contract. It represents the observable or estimated price of a good or service if it were sold on its own, not as part of a bundle.

A. The average of a bundled price is not the SSP; the SSP is for an individual item sold separately, which is then used to allocate the bundled price.
B. The sum of the SSPs of the components is the total standalone value of a bundle, not the definition of an individual SSP.
C. The list price can be a starting point or evidence for an SSP, but it is not the definition itself. The actual selling price may differ.

1. Oracle Fusion Cloud Financials

Implementing Revenue Management

24B

Chapter 5: Standalone Selling Prices. The guide states

"The standalone selling price is the price at which an entity would sell a promised good or service separately to a customer."

2. Financial Accounting Standards Board (FASB)

Accounting Standards Codification (ASC) Topic 606

"Revenue from Contracts with Customers

" section 606-10-32-33. This section defines the standalone selling price as "the price at which an entity would sell a promised good or service separately to a customer."