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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.

Determining the transaction price

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

7 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
Advanced
Estimated time
≈ 40 min
Progress
0 / 5 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

Determination of the transaction price and financing component workpaper.

Purpose of the workpaper

Step 3: start from the fixed consideration, estimate the variable consideration under the method retained and then apply the constraint, include non-cash consideration and consideration payable to the customer, assess the financing component and record the interest entries.

Questions of the file covered by this workpaper

  • Does the Mutuelle Horizon contract contain a significant financing component and which rate should be used?
  • Calculate the present value of the price payable on delivery and determine the transaction price.
  • Calculate the total interest, the interest of each year and the contract liability at the reporting date.
  • Record the interest entry 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