CERTYNEX IFRS ACADEMY

The Azur sports club charges each new member a non-refundable registration fee of EUR 250, in addition to a monthly subscription of EUR 40. Registration involves opening a file and handing over a badge, without any service yet being provided to the member. How does the club account for the registration fee?

As revenue as soon as it is collected, since it is non-refundable.

As the price of a distinct performance obligation, satisfied when the file is opened and the badge handed over.

As an advance payment for future services, recognised as revenue when those services are provided.

As a reduction of the administrative costs incurred to open the file.