CERTYNEX IFRS ACADEMY

The controller of Morvan is analysing a four-year contract for a specified industrial printer installed at the Morvan premises. The memo contains four steps. Which step contains an error?

Step 1: the printer is explicitly specified in the contract, which identifies it.

Step 2: the supplier must replace the printer in the event of a breakdown, so there is no identified asset.

Step 3: Morvan obtains all of the printer's output over the four years.

Step 4: Morvan alone decides what it prints and when it does so.