CERTYNEX IFRS ACADEMY

Ardelis pays its salesperson a commission of 6,000 on signing a 2-year maintenance contract. Based on its history, Ardelis has specifically identified an anticipated renewal for 2 additional years, for which no commission will be paid. The services are provided evenly and the commission meets the conditions for recognition as an asset. Over what period is the asset amortised?

Over 2 years, the term of the signed contract only.

Over 4 years: initial contract and anticipated renewal.

In full in the year of signature, since the commission is paid in a single instalment.

Over the estimated life of the relationship with this customer, without reference to the planned services.