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IFRS 15Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 15L2 · Intermediate

Documents

Lumaris – Distrimax framework agreement

Contract

Lumaris – Distrimax framework agreement

Lumaris – Distrimax framework agreement of 1 October 20X1, for the period from 1 October 20X1 to 30 September 20X2. List price: 100 per appliance, excluding VAT. Retrospective volume rebate calculated on net purchases of the period: 5% if purchases reach 20,000 appliances; 2% if they are between 12,000 and 19,999 appliances; no rebate below 12,000 appliances. To support the launch, Lumaris invoices from the outset at the price of the highest tier, i.e. 95 per appliance; if that tier is not reached, Distrimax will owe on 30 September 20X2 a price complement of 3 per appliance (2% tier) or of 5 per appliance (no rebate). Contribution by Lumaris to the costs of promoting its appliances in Distrimax stores: 4 per appliance delivered, deducted from each invoice; Distrimax organises its shelves freely and provides no identified service to Lumaris. Right of return: Distrimax may return unsold appliances within 60 days of delivery, against a refund of the net price paid, i.e. 91 per appliance. Payment at 30 days.

Specific arrangements

Distributor: volume rebate, right of return and consideration payable to a customer

5 documents9 sections to document
0 / 6 sections completed
Guided mode

Section 1 of 9

Objective

In progress
Section brief
What to document
The engagement, its scope and the working mode chosen.
Why
A workpaper answers one precise question: framing it avoids off-topic work.
How
Read the objective and the assignment, then choose the mode (guided, semi-guided, professional).
Expected result
You know which question the workpaper must settle, and for which reporting date.
Your role
Preparer of the IFRS 15 workpaper
Level
Intermediate
Estimated time
≈ 50 min
Progress
0 / 5 steps done (review excluded)

Context

Lumaris SAS (a fictitious entity) manufactures small household appliances. On 1 October 20X1, it signed a one-year framework agreement with Distrimax SA (a fictitious entity), a chain of stores that resells its appliances to consumers. The first deliveries took place in November 20X1. Case data: control of the appliances transfers to Distrimax on delivery. You are preparing, for the year ended 31 December 20X1, the determination of the transaction price of these deliveries and their accounting.

Assignment

Specific arrangements workpaper (sale with a right of return).

Purpose of the workpaper

Account for the specific arrangements of the file: right of return, principal or agent, prepayments, unexercised rights and upfront fees, licences and royalties, repurchase agreements, consignment, bill-and-hold and acceptance clauses, then record the entries.

Questions of the file covered by this workpaper

  • Calculate the refund liability and the revenue.
  • Calculate the asset for the right to recover products and the cost of sales.
  • Record the entries for the year.

Documents in the file

Open the documents to pick out the relevant information.

Choose how you want to work
View the workpaper template