CERTYNEX IFRS ACADEMY

Ubrac delivers goods and recognises revenue of 50,000; its right to consideration is unconditional. Under IFRS 9 (case data, not tested here), the receivable is measured at 49,200 on initial recognition. How does Ubrac treat the difference of 800?

It reduces revenue to 49,200 to align it with the receivable.

It keeps the receivable at 50,000, the amount of revenue recognised, ignoring the measurement under IFRS 9.

It presents the difference of 800 as an expense, for example an impairment loss.

It recognises the difference as a contract asset until the receivable is collected.