CERTYNEX IFRS ACADEMY

At 31 December 20X1, Abrenne has three contracts in progress. Contract 1: original expected duration of 10 months, remaining transaction price to be recognised 50,000. Contract 2: duration of 3 years, remaining transaction price 400,000. Contract 3: duration of 2 years, remaining transaction price 120,000; a potential bonus of 30,000 is excluded from it because of the constraint on variable consideration. Abrenne elects to apply the practical expedient that allows the information to be omitted for contracts with an original expected duration of one year or less. What information does it give on the transaction price allocated to the remaining performance obligations?

550,000, including the potential bonus of contract 3, since it could be earned.

520,000 with its expected timing, stating qualitatively that the practical expedient is applied and that the constrained bonus is excluded.

570,000, because the practical expedient cannot be applied when the entity also holds multi-year contracts.

400,000 only, as contracts with variable consideration are excluded from this information.