The heating contractor Marvejols Énergie has a contract with a clinic for the supply of a boiler and its maintenance for 3 years. The initial allocation of the transaction price, based on stand-alone selling prices, is 90,000 to the boiler, control of which was transferred in 20X1, and 60,000 to the maintenance, which will start in 20X3. In 20X2, the resolution of an uncertainty about an overall rebate provided for in the contract reduces by 25,000 the consideration to which Marvejols Énergie expects to be entitled; the rebate relates to the contract as a whole (case datum). The stand-alone selling price of the boiler fell to 80,000 in 20X2. Compute the reduction in revenue recognised in 20X2 for the boiler and the revised price allocated to the maintenance.
- Price initially allocated to the boiler
- 90,000
- Price initially allocated to the maintenance
- 60,000
- Decrease in the transaction price
- 25,000
- Current stand-alone selling price of the boiler
- 80,000