CERTYNEX IFRS ACADEMY

Hautvallon tests for impairment an asset recognised from the costs to fulfil a services contract. Which statements about this test are correct?

The expected variable consideration is taken into account without applying the constraint on variable consideration.

The expected consideration is adjusted for the customer's credit risk.

The costs that relate directly to providing the services and have not yet been recognised as expenses are deducted from the remaining expected consideration.

Only the variable consideration already included in the transaction price after the constraint is taken into account.

Impairment losses on contract-related assets within the scope of other standards, for example inventories, are recognised before this test.

The consideration for the whole contract is used, including that for the services already provided and recognised as revenue.