CERTYNEX IFRS ACADEMY

Tôlerie Brivoise invoices a customer for electrical cabinets that it keeps in its warehouses until a later delivery. In addition to the general indicators of transfer of control, which criteria must all be met for the customer to obtain control of the cabinets in this bill-and-hold arrangement?

The customer has paid the whole invoice before the reporting date.

The arrangement has a substantive reason, for example a request from the customer.

The cabinets are identified separately as belonging to the customer.

The customer has taken out insurance covering the stored cabinets.

The cabinets are ready for physical transfer to the customer.

Tôlerie Brivoise cannot use the cabinets or direct them to another customer.