CERTYNEX IFRS ACADEMY

At the request of a hotel chain short of space, Textilia invoices it on 20 December 20X1 for a batch of 5,000 bathrobes, paid immediately, and keeps the batch in its warehouse until March 20X2. The bathrobes remain mixed with Textilia's general inventory, from which it allows itself to draw to fill urgent orders from other customers, replacing them before shipment. Can Textilia recognise the revenue in 20X1?

Yes, because the arrangement responds to a customer request and therefore has a substantive reason.

Yes, because the invoice has been paid in full by the customer.

Yes, for half of the price, the other half being deferred until shipment.

No: the bathrobes are not separately identified and Textilia can direct them to other customers.