CERTYNEX IFRS ACADEMY

The chief financial officer of Montbrel is preparing the presentation of balances arising from contracts with customers. Which statements are correct?

A receivable is a right to consideration whose payment becomes due only with the passage of time.

A contract asset is a right to consideration conditioned on something other than the passage of time, for example future performance.

A contract asset is presented within receivables as soon as the invoice will be issued within 30 days.

Impairment of a contract asset is measured, presented and disclosed in the same way as for a financial asset within the scope of IFRS 9.

Montbrel may use a label other than contract asset, provided it gives sufficient information to distinguish receivables from contract assets.

A contract liability only arises on receipt of cash: an amount due but unpaid before transfer is never taken into account.