CERTYNEX IFRS ACADEMY

Rivelo has exclusive use of a specified truck for three years, but the contract limits its use to a defined region and to 60,000 km a year. Rivelo uses the truck fully within those limits. How should it assess whether it obtains substantially all of the economic benefits from use?

By reference to the benefits the truck would provide with no limit on region or mileage.

Contractual limits in principle prevent the customer from obtaining substantially all of the benefits.

By reference to the benefits the supplier would obtain from reselling the truck at the end of the contract.

By reference only to the benefits from use within the region and mileage limit in the contract.