CERTYNEX IFRS ACADEMY

Cristallerie Morvan delivers tableware sets to home decoration shops. Which of the following clauses are indicators of a consignment arrangement?

The shop must pay for the items within thirty days of delivery, whether or not it has sold them.

Morvan keeps control of the items until they are sold by the shop to its own customers.

Morvan can require the return of the items or their transfer to another shop.

The shop freely sets its resale prices and alone bears the risk of unsold items, with no possibility of return.

The shop has no unconditional obligation to pay for the items, even if it pays a security deposit.