CERTYNEX IFRS ACADEMY

Ventamar sells electric bicycles. All bicycles come with the two-year legal warranty covering compliance defects. For its top-of-the-range model, Ventamar also grants six-year coverage including a full annual service and the replacement of wear parts. Which analysis complies with IFRS 15?

Both warranties create performance obligations, since any warranty granted by the seller is a service.

Both warranties are mere assurance of compliance, as the coverage period has no bearing on the analysis.

The legal warranty indicates assurance of compliance; the six-year coverage shows indications of an additional service to be analysed.

The two-year legal warranty is an additional service because it is required by law, unlike the six-year coverage.