CERTYNEX IFRS ACADEMY

Helios SA operates a chain of stores and has also, for several years, provided financing to its customers for the purchase of its products. The evidence gathered indicates that this financing activity is one of its main business activities (facts and judgement given by the case). What does IFRS 18 require for the classification of its income and expenses?

Since an entity has only one main business activity, only store sales are taken into account.

Helios assesses, based on evidence, whether it has a specified main business activity, here providing financing to customers, an assessment that affects the classification into categories.

The assessment depends only on management's stated intention, without evidence.

Having a specified main business activity has no effect on the classification of income and expenses.