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CalculationIntermediateVariant — group VG.IFRS15.000951Published

Question · Sale with a right of return

Altimètre sells tents with a right of return. At the date of sale, it estimates (case data) that 25 units tents will be returned. The carrying amount of each tent in inventory before the sale was EUR 120. Altimètre expects to incur recovery costs of EUR 300 in total to take back those tents and estimates that each returned tent will lose EUR 10 of value to it. Calculate the amount of the asset for the right to recover the products.

Tents expected to be returned
25
Unit carrying amount before the sale
120
Expected recovery costs
300
Decrease in value per returned tent
10
Your answer

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