Lorvane sells a patent whose carrying amount is 260,000 at the date control passes to the buyer. The price of 330,000 is payable 12 months after that date, with no costs of disposal. According to the analysis performed under IFRS 15, this payment term is a significant financing component, and the appropriate discount rate is 10% a year (discounting over a single period); Lorvane does not apply the IFRS 15 practical expedient for terms of one year or less. The patent has never been classified as held for sale. Calculate the consideration included in the result on disposal and the gain on disposal.
- Carrying amount of the patent at the date control passes
- 260,000
- Nominal price payable on deferred terms
- 330,000
- Payment term (months)
- 12
- Annual discount rate (%)
- 10 %