Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

Journal entryAdvancedVariant — group VG.IFRS15.000306Published

Question · Significant financing component

On 1 January 20X1, Kerlan installed a postal sorting system at Ardoise; control was transferred on that date. The cash price is 400,000 and Ardoise will pay 532,400 on 31 December 20X3. Kerlan recognised a receivable of 400,000 on installation; the rate of a separate financing transaction with Ardoise is 10% (case data) and interest is computed on each year's opening balance (teaching assumption). Record the financing entry at 31 December 20X2.

Cash price
400,000
Amount payable at maturity
532,400
Rate of a separate financing transaction with the customer
10 %
Your answer
  1. Line 1

    Account Receivable

  2. Line 2

    Account Interest income

← Back to the concept