CERTYNEX IFRS ACADEMY

The cooperative Sarthenay sells seeds with an additional discount if the yield of the customer's harvest exceeds a threshold. Which of the following facts increases the risk of a significant reversal of revenue recognised for this discount?

Long experience of similar contracts, with highly predictive results.

A yield that depends on the weather conditions of the season.

An uncertainty resolved a few days after the sale.

A very narrow range of possible amounts for the discount.