Cross-IFRS · Case studies (Step 3 of 5)
Practical case
Arvélia Robotique SAS, a fictitious manufacturer of robotic pool cleaners (210 employees), single assembly site in Vauclaire, direct sales to households, IFRS financial statements, year end 31 December, amounts in euros excluding taxes.
L1 · Guided · Year N — the sale
Arvélia sells its Lisséo robot with a two-year manufacturer's warranty and offers an extended warranty, "Plénitude", which the customer may buy on its own or with the robot. You follow the company over three years: sale of the robot and its extension in N; warranty provision, revision and a customer claim in N+1; expiry of the first warranties, a new offer and the note in N+2. Two standards share the warranties: IFRS 15 decides whether a warranty receives part of the price and becomes revenue as the service is provided; IAS 37 measures the obligation to repair defective robots when the warranty only assures their compliance. All figures are case data; teaching assumptions and professional judgements are flagged as such. No probability or amount in the case is imposed by a standard; the straight-line pattern of the extension, charging repairs directly against the provision and the separate reversal account are choices of the case, not rules. Out of scope: production cost of the robots (IAS 2), taxes and duties.
Standards involved at this stage: IFRS 15 Revenue from Contracts with Customers (performance obligations, warranties, allocation of the price) and IAS 37 Provisions, Contingent Liabilities and Contingent Assets (warranties that only assure compliance). Read the document, then answer in order.
Fundamental level: the method, help and references are shown.
Method
File checklist
2 / 6 stages reached
Context · Dated fact of the file
Arvélia Robotique SAS, a fictitious manufacturer of robotic pool cleaners (210 employees), single assembly site in Vauclaire, direct sales to households, IFRS financial statements, year end 31 December, amounts in euros excluding taxes.
Initial event · L1·Year N — the sale · Current stage
Standards involved at this stage: IFRS 15 Revenue from Contracts with Customers (performance obligations, warranties, allocation of the price) and IAS 37 Provisions, Contingent Liabilities and Contingent Assets (warranties that only assure compliance). Read the document, then answer in order.
Pieces added
New period · L2·Year N — year end at 31 December · Upcoming: unlocks after the current stage
New period · L3·Year N+1 · Upcoming: unlocks after the current stage
New period · L4·Year N+2 · Upcoming: unlocks after the current stage
Conclusion · Upcoming: unlocks after the current stage
1 document to work from at this level.
Document 1Supporting document
| Item | Content |
|---|---|
| Lisséo robot sold on its own | 1,200; the price at which Arvélia regularly sells the robot on its own to its household customers |
| Manufacturer's warranty | included with every robot, never sold separately; 2 years from delivery; covers manufacturing defects, i.e. the robot operating in accordance with the published specifications; promised tasks: diagnosis, repair or replacement of the defective part or robot, return transport of the robot; term aligned with the applicable statutory conformity guarantee |
| Plénitude extension | sold on its own for 300, the price regularly charged to customers who buy it outside the bundle; 3 years from delivery; permanent technical assistance and remote diagnostics through the robot's app, on-demand home maintenance visits (cleaning, calibration, replacement of worn brushes and filters), and a third year of breakdown cover |
| Bundle | Lisséo robot + Plénitude extension for 1,350, paid on delivery |
| Option | a customer who bought the robot on its own may buy the extension within 60 days of delivery, at a price of 300 |
| Legal liability | the applicable law requires the manufacturer to compensate damage caused by a defective product |
| Sales for year N | 4,500 robots sold on their own and 1,500 bundles, all delivered and collected in N; no option exercised in N |
Arvélia sells no other package that includes the robot or the extension.
First level: all the data is in the brief and the pieces of this level.
5 parts to answer, marked when you submit the level.
Find the useful facts in the pieces before concluding.
Part 1 · Classification · Recognition
Classify each promise or obligation in document 1 according to its treatment at the date of sale.
The Lisséo robot delivered to the customer
The Plénitude extension bought in the bundle
The two-year manufacturer’s warranty included with every robot
Return transport of a defective robot during the manufacturer’s warranty
The legal obligation to compensate damage caused by a defective robot
The option to buy the extension within 60 days, at a price of 300
4 more questions will appear once the current question is complete.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Answer every part to submit the level and see the conclusion.
Normative references