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IFRS 15Workpapers (Step 4 of 5)

Workpaper assignment

Step 4 of 5
Mission · workpaperWorkpaper · IFRS 15L3 · Advanced

Documents

Licence contract with Hôtels Belvédère

Contract

Licence contract with Hôtels Belvédère

Licence contract of 1 October 20X1 with Hôtels Belvédère SA: perpetual licence of the Orionis Hôtel software, price 300,000, invoiced and collected on signature. Case data: the licence is a performance obligation whose control transfers to the customer on 1 October 20X1, the date on which the software is made available. Under the Orionis Plus loyalty programme, the customer receives a 35% discount voucher on the purchase of the Orionis Paie module, valid for 12 months and capped at a purchase of 100,000, i.e. a maximum discount of 35,000. The payroll module is a different product from the hotel software. No voucher had been used at the reporting date.

Allocating the transaction price: Licence sold

Software publisher: loyalty programme, multi-year advance payment and costs of obtaining contracts

7 documents8 sections to document
0 / 5 sections completed
Guided mode

Section 1 of 8

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
Advanced
Estimated time
≈ 35 min
Progress
0 / 4 steps done (review excluded)

Context

Orionis Logiciels SA (a fictitious entity) publishes business software. In 20X1, three contracts call for analysis: a licence sold to Hôtels Belvédère SA (a fictitious entity) with a discount voucher from the Orionis Plus loyalty programme, a claims management module paid for by Mutuelle Horizon (a fictitious entity) 2 years before its delivery, and an online subscription concluded with Transports Lumière SA (a fictitious entity) in exchange for a commission paid to the salesperson. You are preparing the financial statements for the year ended 31 December 20X1.

Assignment

Allocation of the transaction price and customer options workpaper.

Purpose of the workpaper

Step 4: determine at inception the stand-alone selling price of each obligation (observable or estimated), estimate that of options conferring a material right, allocate discounts and allocate the transaction price proportionately.

Questions of the file covered by this workpaper

  • Does the discount voucher convey a material right?
  • Calculate the incremental discount and the stand-alone selling price of the option.
  • Allocate the price of the licence between the licence and the material right.

Documents in the file

Open the documents to pick out the relevant information.

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