CERTYNEX IFRS ACADEMY

Bâtisseurs de Lirac extends a customer's factory on the customer's land. After analysis (case data), the customer controls the extension as it is built: it can change its design, deny third parties access to it and obtain its benefits, the part built belonging to it as construction proceeds. How should revenue be recognised?

On final acceptance of the extension, when the keys are handed over.

Over time, as the performance enhances an asset that the customer controls as it is enhanced.

Over time, but only if the extension has no alternative use and a right to payment exists.

As progress billings are invoiced to the customer.