CERTYNEX IFRS ACADEMY

Lumiréo has undertaken to deliver 1,000 light fittings at EUR 300 each; each light fitting is a distinct good whose control is transferred on delivery. After 400 deliveries, the customer orders 200 additional light fittings at EUR 285 each. The stand-alone selling price of a light fitting is EUR 300; Lumiréo has documented that the EUR 15 reduction corresponds to selling costs it does not need to incur for this existing customer, and treats it as an adjustment to the stand-alone selling price justified by the circumstances of the contract. How does Lumiréo account for the modification?

As a separate contract: the 200 additional light fittings are recognised at EUR 285 each, with no effect on the original contract.

As part of the existing contract, through a cumulative catch-up adjustment to the revenue already recognised on the 400 fittings delivered.

As the termination of the original contract and the creation of a new one, the remaining price being spread over the 800 remaining fittings.

It does not account for it: a unit price below the stand-alone selling price prevents any modification.