CERTYNEX IFRS ACADEMY

Brasaro sells espresso machines and gives each buyer a card offering 10% off capsules for one year. The same 10% discount is granted to anyone who joins the brand's club free of charge, without buying a machine. How does Brasaro account for the card given with the machine?

As a material right, to which part of the machine's price is allocated.

As a material right whose revenue is recognised as soon as the machine is sold.

As an option without a material right: no separate performance obligation, the whole price goes to the machine.

As a material right measured at 10% of the capsules the customer will buy, with no likelihood of exercise.