CERTYNEX IFRS ACADEMY

Ternis enters into a contract with a supplier for a storage tank, with no serial number or other specification. On the day it is put into service, the supplier installs a particular tank in the Ternis plant; the contract gives the supplier no right to replace it. Does Ternis have an identified asset?

Only if the contract is changed to mention the serial number of the tank.

No, because the contract does not explicitly specify any tank.

Yes, but the identified asset is the supplier's entire fleet of tanks, not the installed tank.

Yes, the tank is implicitly specified when it is made available to Ternis.