CERTYNEX IFRS ACADEMY

Aubrac sells agricultural greenhouses payable in several annual instalments. To assess whether its contracts contain a significant financing component, which items must it in particular consider?

Merely the fact that the contract is drafted as a credit sale.

The gross margin earned on the greenhouses.

The difference from the cash price and the combined effect of the payment delay and market rates.

The nature of the greenhouse, financing being possible only for real estate.