CERTYNEX IFRS ACADEMY

Quillane is assessing the existence and enforceability of its right to payment for performance completed to date. Which elements must it consider?

A one-off waiver, granted once to a customer for commercial reasons, that would remove the right in all its contracts.

A law or administrative practice that gives it a right to payment even if the contract is silent.

Case law that has deprived similar payment clauses of effect.

Its customary practice of choosing not to enforce that right, which may make it unenforceable.

The credit rating assigned to the customer by an external agency.