CERTYNEX IFRS ACADEMY

Rivel SA acquires a production line for optical lenses that already generates sales, without taking on any employees. Judgement retained in the case: the acquired manufacturing process contributes significantly to the ability to continue producing outputs and could not be replaced without significant cost, effort or delay. Is the acquired process substantive?

No: when the set has outputs, a process is substantive only if an organised workforce with the necessary skills is taken on.

Yes, but solely because the line's sales will continue after the acquisition.

Yes: it contributes significantly to the ability to continue producing outputs and cannot be replaced without significant cost, effort or delay.

The question does not arise: the substantive process criteria apply only to sets without outputs.