CERTYNEX IFRS ACADEMY

Lormel sells two machines to a customer for 80,000; each machine is a separate performance obligation, to which a price of 40,000 is allocated. Payment only becomes due after delivery of the second machine. At 30 June 20X1, only the first machine has been delivered and Lormel has recognised revenue of 40,000. How does it present its right at that date?

As a receivable of 40,000, since the first machine has been delivered.

As a contract asset of 40,000.

It presents nothing as long as payment is not due; revenue is deferred.

As a contract liability of 40,000, as the second machine remains to be delivered.