CERTYNEX IFRS ACADEMY

Thermio sells connected thermostats. Each device embeds firmware that Thermio licenses to the customer; without this firmware, the thermostat performs no function, and the customer can only benefit from the licence through the device (case data). How does Thermio identify the performance obligations?

The licence is a distinct performance obligation, a right to use recognised when the device is handed over.

The licence and the thermostat form a single performance obligation, the licence being integral to the device.

The licence is a distinct performance obligation, a right to access recognised over time.

Because the licence agreement is a legal document separate from the purchase order, the licence is necessarily a performance obligation distinct from the thermostat.