CERTYNEX IFRS ACADEMY

Orion SA closes its books on 31 December 2026. It delivered goods in December 2026 (the income is earned in 2026 under the standard that governs it, case fact) and will collect the invoice only in February 2027. An analyst summarises the treatment; which of her sentences is wrong?

The income is excluded from the 2026 result, since the statement of profit or loss follows cash receipts.

The February 2027 receipt will appear in the 2027 statement of cash flows, the year in which the cash is received.

The 2026 result includes the income, even though the cash has not yet been received.

The 2026 statement of cash flows does not include this sale, for lack of a receipt before the closing date.