CERTYNEX IFRS ACADEMY

Orca SA, a joint operator, is entitled to 50% of the output of a joint operation. During the period it received more output than its entitlement and sold part of what it received to its customers (case facts). On what basis does it recognise its revenue for the period, in light of the Interpretations Committee's 2019 decision?

On its 50% entitlement to the output, whatever volume was actually received or sold to customers during the period.

On the output received from the joint operation, as soon as it is received, before any sale to a customer and regardless of the transfer of control to customers.

On the average of the volumes received and the 50% entitlement, in order to smooth output differences between successive periods.

On the transfer of the output to its customers, under IFRS 15.