CERTYNEX IFRS ACADEMY

Saulmont sells equipment and its installation for 50,000. Two performance obligations are identified: the equipment (allocated price 35,000), handed over to the customer on 31 March 20X1, and the installation (allocated price 15,000), planned for May. The customer paid 10,000 on signing; the balance of 40,000 will only be due on completion of the installation. At 31 March 20X1, after handing over the equipment, what balance does Saulmont present for this contract?

A contract asset of 25,000.

A receivable of 25,000, as the equipment has been handed over to the customer.

A contract asset of 35,000 and, separately, a contract liability of 10,000 for the advance.

A receivable of 35,000 and a contract liability of 10,000, the advance remaining owed for the installation.