CERTYNEX IFRS ACADEMY

Ébène et Fils sells a dining table for EUR 2,400. The contract gives the customer the option to buy, within 12 months, matching chairs at EUR 150 each. That price is the one at which Ébène et Fils sells those chairs to any customer, without conditions (case data: it reflects the stand-alone selling price of the chairs). The offer is, however, available only to buyers of the table. How should this option be treated?

It is a material right, since only buyers of the table can benefit from it; part of the table's price is allocated to it.

It is a marketing offer: no performance obligation is identified, and the sale of the chairs will be accounted for if the customer exercises the option.

It is a material right measured by taking into account the likelihood that the customer will buy the chairs within 12 months.

It is a performance obligation, because any purchase option included in a contract obliges the entity to stand ready to deliver.