CERTYNEX IFRS ACADEMY

Hexagone Mobilier sells a set of showroom furniture to a hotel. The contract includes a clause under which Hexagone may repurchase the furniture at a later date. Legal title passes on delivery. What must Hexagone do to assess whether the hotel obtains control of the furniture?

Ignore the clause, since legal title passes on delivery.

Recognise revenue on signing, as the clause is only an option.

Automatically treat the transaction as a consignment arrangement, whatever its terms.

Take the repurchase agreement into account in the control analysis.