CERTYNEX IFRS ACADEMY

Cassis SA grants its subsidiary a licence to use its brand in exchange for a royalty and lends it funds. An accountant thinks that only purchases and sales of goods are to be disclosed. What should he bear in mind?

Transfers under licence agreements and financing arrangements are among the examples of transactions to be disclosed.

Purchases and sales of goods are the transactions to be disclosed, the other operations entered into with the subsidiary being considered outside the scope of disclosure.

The loan is excluded, for lack of a transfer of goods; the licence is to be disclosed.

The licence is to be disclosed only if it is granted free of charge.