CERTYNEX IFRS ACADEMY

Tarvel has entered into two separate contracts with the same customer, which do not meet the conditions to be combined. At 31 December 20X1, the maintenance contract shows a contract asset of 12,000; the training contract, paid in advance, shows a contract liability of 8,000. Case data: the presentation adopted by Tarvel does not offset balances arising from different contracts against each other. How does Tarvel present these balances in its statement of financial position?

A net contract asset of 4,000, since the customer is the same.

A net contract liability of 4,000, as prudence requires the least favourable position.

A contract asset of 12,000 and a contract liability of 8,000.

A receivable of 12,000 and a contract liability of 8,000, as the customer is creditworthy.