CERTYNEX IFRS ACADEMY

Bâtiplus is performing a contract with two performance obligations: the structural work phase, already satisfied and accepted in March 20X1, and the finishing work phase, in progress. In June 20X1, it incurs 14,000 of rework on the structural work and 6,000 of site costs for which it cannot determine whether they relate to one phase or the other. What treatment applies to these two amounts?

Recognise both amounts as an asset as costs to fulfil the contract.

Recognise both amounts as an expense when incurred.

Recognise the 6,000 of unattributable costs as an asset and expense the 14,000 of rework.

Recognise the 14,000 of rework, which relates to the contract, as an asset and expense the 6,000 of costs.