CERTYNEX IFRS ACADEMY

The Navalis shipyard sells a workboat to a shipowner for EUR 2,000,000 and holds an option allowing it to repurchase the boat in one year for EUR 2,100,000. Case data: even after taking into account the time value of money, the repurchase price exceeds the original selling price. How does Navalis reflect the transaction at the date of sale?

Revenue of 2,000,000 and derecognition of the boat, the option being merely a right that Navalis may choose not to exercise.

Revenue of 2,000,000 and a refund liability of 2,100,000.

The boat stays in assets and a financial liability of 2,000,000 is recognised; the 100,000 difference is recognised as interest.

A lease in accordance with IFRS 16, since Navalis can recover the boat.