CERTYNEX IFRS ACADEMY

Logivia sells accounting software. The signed contract does not mention updates, but the policy published by Logivia on its website, known to its customers at the time of purchase, states that regulatory updates will be provided free of charge for 2 years as soon as they become available. How does Logivia treat these updates when identifying its performance obligations?

The updates are not promised services since the written contract does not mention them; their cost will simply be recognised as an expense as they are developed.

The published policy creates a valid expectation: making the updates available is a promised service to be taken into account.

The updates are promised only if the customer requests them in writing after signing the contract.

The published policy creates an obligation, but it falls only within a provision and not within IFRS 15.