CERTYNEX IFRS ACADEMY

The carrier Routhéa transports a customer's goods by truck over a 1,200 km route. The contract prohibits any subcontracting. If another carrier had to take over the route halfway, it would not need to repeat the first half of the journey. How should Routhéa's performance obligation be analysed?

Satisfied on delivery, as the customer benefits from the transport only on arrival.

Satisfied over time, under the no alternative use criterion.

Satisfied over time: the customer receives and consumes the benefit of the transport as it is performed.

Impossible to assess with this test, as subcontracting is prohibited by a clause of the contract.