Contract and performance obligations

• Contract examined (parties, subject matter, term, payment terms, termination clauses) and applicable general terms

  TextRequired

• Contract inception date

  DateRequired

  20X1-10-01

• Counterparty and nature of the relationship (customer obtaining goods or services that are an output of the entity's ordinary activities, or partner sharing the risks and benefits of an activity)

  TextRequired

• Entity's customary business practices, published policies and specific statements to the customer

  TextRequired

• Customer's ability and intention to pay when due (history, financial position, price concessions contemplated)

  TextRequired

• Other contracts entered into at or near the same time with the same customer, and analysis of their possible combination

  Text

  This workpaper does not restate the criteria for combining contracts. Describe the facts; the official text applies.

• Goods or services promised (one row per promise, explicit or implicit)

  TableRequired

  PO_1 · COLD_ROOM · EXPLICIT · YES | PO_2 · INSTALLATION · EXPLICIT · NO | PO_3 · MAINTENANCE · EXPLICIT · YES

• Warranties granted (legally required or not, coverage period, tasks promised)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §3IFRS 15 §5IFRS 15 §6IFRS 15 §7IFRS 15 §8

• Scope points examined

  ChecklistRequired

  • Excluded contracts: leases (IFRS 16), insurance contracts (IFRS 17, subject to the option provided), financial instruments and rights within IFRS 9, IFRS 10, IFRS 11, IAS 27 or IAS 28
  • Non-monetary exchanges between entities in the same line of business to facilitate sales to customers: excluded
  • The counterparty is a customer: it has contracted to obtain, in exchange for consideration, goods or services that are an output of the entity's ordinary activities
  • Contract partly within another standard: separation or measurement under that standard first, remainder allocated under IFRS 15
  • Costs of obtaining and fulfilling the contract not within another standard: dealt with in “Contract costs”
  • Consistent application to contracts with similar characteristics and in similar circumstances

IFRS 15 §9IFRS 15 §10IFRS 15 §11IFRS 15 §12IFRS 15 §13IFRS 15 §14IFRS 15 §15IFRS 15 §16

• Contract criteria examined

  ChecklistRequired

  • Contract approved by the parties (in writing, orally or in line with customary practices), who are committed to perform their obligations
  • Each party's rights identifiable
  • Payment terms identifiable
  • Commercial substance
  • Collection of the consideration to which the entity will be entitled is probable, assessed on the customer's ability and intention to pay (any price concession taken into account)
  • Rights and obligations enforceable under the applicable law; term retained limited to the period in which they exist
  • Wholly unperformed contract that each party can terminate unilaterally without compensation: no contract
  • Criteria not reassessed unless facts change significantly; if there is no contract, assessment continued
  • Consideration received without a contract as defined: liability until one of the specified events occurs

  The five criteria of paragraph 9 are cumulative. Consideration received while they are not met is recognised as revenue only in the limited cases of paragraph 15; otherwise it remains a liability at the amount received (para. 16).

IFRS 15 §22IFRS 15 §23IFRS 15IFRS 15 §25IFRS 15 §26IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Analysis of the promises

  ChecklistRequired

  • Implicit promises arising from customary practices, published policies or specific statements that create a valid expectation of the customer
  • Set-up activities that transfer nothing to the customer (administrative tasks, for example): not a performance obligation
  • Nature of the promises reviewed (goods, tasks, stand-ready service, arranging by a third party, resaleable rights, construction, licences, options conferring a material right)
  • The customer can benefit from the good or service on its own or together with other readily available resources
  • Promise separately identifiable from the other promises in the contract (no significant integration, significant modification or customisation, nor high interdependence)
  • Non-distinct items combined until a distinct bundle is formed, if need be a single obligation for the whole contract
  • Series of distinct goods or services that are substantially the same and have the same pattern of transfer: a single obligation

IFRS 15 §B28IFRS 15

• Factors examined for each warranty

  Checklist

  • The warranty only provides assurance of compliance with agreed specifications or also provides a service
  • Warranty required by law: an indication that it is not a performance obligation
  • Coverage period: the longer it is, the more likely an additional service is
  • Tasks needed to provide assurance of compliance (return of a defective product, for example): probably not a performance obligation

• Classification of the warranty

  Choice

  Assurance of compliance only: not a separate performance obligation / Additional service: separate performance obligation / No warranty granted

IFRS 15 §6IFRS 15 §9IFRS 15 §12IFRS 15 §15IFRS 15 §16IFRS 15 §22IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Existence of a contract as defined by the standard

  JudgmentRequired

  The five criteria are met: the contract is accounted for under IFRS 15

  The five criteria are met: the contract is accounted for under IFRS 15 / Criteria not met: consideration received recognised as a liability, assessment continued / Wholly unperformed contract terminable without compensation: no contract / Counterparty not a customer or contract excluded from the scope: IFRS 15 does not apply

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Performance obligations identified

  JudgmentRequired

  Each promised good or service is distinct: one obligation per promise

  Each promised good or service is distinct: one obligation per promise / Promises not distinct in the context of the contract: one combined obligation / Series of distinct goods or services: a single obligation / Combination: some promises distinct, others combined

  The assessment rests on the facts of the contract: the standard sets no closed list of obligations. The two criteria for being distinct are cumulative (para. 27); the indicators of paragraph 29 help assess the second.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• List of performance obligations retained (key PO_1 to PO_4, goods or services included, service warranty where relevant), passed to “Allocating the transaction price”

  TextRequired

• Number of performance obligations retained

  NumberRequired

  3 units

  Result of the analysis of the promises (paras. 22 and 27): each distinct good or service, or series of distinct goods or services, counts as one obligation; set-up activities are not obligations (para. 25).

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The existence of the contract is documentedPass
• The performance obligations are identifiedPass
• The promises in the contract are listedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Contract examined (parties, subject matter, term, payment terms, termination clauses) and applicable general terms

  TextRequired

• Contract inception date

  DateRequired

  20X4-03-01

• Counterparty and nature of the relationship (customer obtaining goods or services that are an output of the entity's ordinary activities, or partner sharing the risks and benefits of an activity)

  TextRequired

• Entity's customary business practices, published policies and specific statements to the customer

  TextRequired

• Customer's ability and intention to pay when due (history, financial position, price concessions contemplated)

  TextRequired

• Other contracts entered into at or near the same time with the same customer, and analysis of their possible combination

  Text

  This workpaper does not restate the criteria for combining contracts. Describe the facts; the official text applies.

• Goods or services promised (one row per promise, explicit or implicit)

  TableRequired

  PO_1 · LINE_DESIGN · EXPLICIT · NO | PO_2 · LINE_MODULES · EXPLICIT · NO | PO_3 · INSTALLATION_AND_INTEGRATION · EXPLICIT · NO | PO_4 · MAINTENANCE_4_YEARS · EXPLICIT · YES

• Warranties granted (legally required or not, coverage period, tasks promised)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §3IFRS 15 §5IFRS 15 §6IFRS 15 §7IFRS 15 §8

• Scope points examined

  ChecklistRequired

  • Excluded contracts: leases (IFRS 16), insurance contracts (IFRS 17, subject to the option provided), financial instruments and rights within IFRS 9, IFRS 10, IFRS 11, IAS 27 or IAS 28
  • Non-monetary exchanges between entities in the same line of business to facilitate sales to customers: excluded
  • The counterparty is a customer: it has contracted to obtain, in exchange for consideration, goods or services that are an output of the entity's ordinary activities
  • Contract partly within another standard: separation or measurement under that standard first, remainder allocated under IFRS 15
  • Costs of obtaining and fulfilling the contract not within another standard: dealt with in “Contract costs”
  • Consistent application to contracts with similar characteristics and in similar circumstances

IFRS 15 §9IFRS 15 §10IFRS 15 §11IFRS 15 §12IFRS 15 §13IFRS 15 §14IFRS 15 §15IFRS 15 §16

• Contract criteria examined

  ChecklistRequired

  • Contract approved by the parties (in writing, orally or in line with customary practices), who are committed to perform their obligations
  • Each party's rights identifiable
  • Payment terms identifiable
  • Commercial substance
  • Collection of the consideration to which the entity will be entitled is probable, assessed on the customer's ability and intention to pay (any price concession taken into account)
  • Rights and obligations enforceable under the applicable law; term retained limited to the period in which they exist
  • Wholly unperformed contract that each party can terminate unilaterally without compensation: no contract
  • Criteria not reassessed unless facts change significantly; if there is no contract, assessment continued
  • Consideration received without a contract as defined: liability until one of the specified events occurs

  The five criteria of paragraph 9 are cumulative. Consideration received while they are not met is recognised as revenue only in the limited cases of paragraph 15; otherwise it remains a liability at the amount received (para. 16).

IFRS 15 §22IFRS 15 §23IFRS 15IFRS 15 §25IFRS 15 §26IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Analysis of the promises

  ChecklistRequired

  • Implicit promises arising from customary practices, published policies or specific statements that create a valid expectation of the customer
  • Set-up activities that transfer nothing to the customer (administrative tasks, for example): not a performance obligation
  • Nature of the promises reviewed (goods, tasks, stand-ready service, arranging by a third party, resaleable rights, construction, licences, options conferring a material right)
  • The customer can benefit from the good or service on its own or together with other readily available resources
  • Promise separately identifiable from the other promises in the contract (no significant integration, significant modification or customisation, nor high interdependence)
  • Non-distinct items combined until a distinct bundle is formed, if need be a single obligation for the whole contract
  • Series of distinct goods or services that are substantially the same and have the same pattern of transfer: a single obligation

IFRS 15 §B28IFRS 15

• Factors examined for each warranty

  Checklist

  • The warranty only provides assurance of compliance with agreed specifications or also provides a service
  • Warranty required by law: an indication that it is not a performance obligation
  • Coverage period: the longer it is, the more likely an additional service is
  • Tasks needed to provide assurance of compliance (return of a defective product, for example): probably not a performance obligation

• Classification of the warranty

  Choice

  Assurance of compliance only: not a separate performance obligation / Additional service: separate performance obligation / No warranty granted

IFRS 15 §6IFRS 15 §9IFRS 15 §12IFRS 15 §15IFRS 15 §16IFRS 15 §22IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Existence of a contract as defined by the standard

  JudgmentRequired

  The five criteria are met: the contract is accounted for under IFRS 15

  The five criteria are met: the contract is accounted for under IFRS 15 / Criteria not met: consideration received recognised as a liability, assessment continued / Wholly unperformed contract terminable without compensation: no contract / Counterparty not a customer or contract excluded from the scope: IFRS 15 does not apply

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Performance obligations identified

  JudgmentRequired

  Combination: some promises distinct, others combined

  Each promised good or service is distinct: one obligation per promise / Promises not distinct in the context of the contract: one combined obligation / Series of distinct goods or services: a single obligation / Combination: some promises distinct, others combined

  The assessment rests on the facts of the contract: the standard sets no closed list of obligations. The two criteria for being distinct are cumulative (para. 27); the indicators of paragraph 29 help assess the second.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• List of performance obligations retained (key PO_1 to PO_4, goods or services included, service warranty where relevant), passed to “Allocating the transaction price”

  TextRequired

• Number of performance obligations retained

  NumberRequired

  2 units

  Result of the analysis of the promises (paras. 22 and 27): each distinct good or service, or series of distinct goods or services, counts as one obligation; set-up activities are not obligations (para. 25).

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The existence of the contract is documentedPass
• The performance obligations are identifiedPass
• The promises in the contract are listedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Contract examined (parties, subject matter, term, payment terms, termination clauses) and applicable general terms

  TextRequired

• Contract inception date

  DateRequired

  20X3-09-01

• Counterparty and nature of the relationship (customer obtaining goods or services that are an output of the entity's ordinary activities, or partner sharing the risks and benefits of an activity)

  TextRequired

• Entity's customary business practices, published policies and specific statements to the customer

  TextRequired

• Customer's ability and intention to pay when due (history, financial position, price concessions contemplated)

  TextRequired

• Other contracts entered into at or near the same time with the same customer, and analysis of their possible combination

  Text

  This workpaper does not restate the criteria for combining contracts. Describe the facts; the official text applies.

• Goods or services promised (one row per promise, explicit or implicit)

  TableRequired

  PO_1 · UPGRADE_DESIGN · EXPLICIT · NO | PO_2 · UPGRADE_WORKS · EXPLICIT · NO | PO_3 · HEAT_RECOVERY_UNIT · EXPLICIT · NO

• Warranties granted (legally required or not, coverage period, tasks promised)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §3IFRS 15 §5IFRS 15 §6IFRS 15 §7IFRS 15 §8

• Scope points examined

  ChecklistRequired

  • Excluded contracts: leases (IFRS 16), insurance contracts (IFRS 17, subject to the option provided), financial instruments and rights within IFRS 9, IFRS 10, IFRS 11, IAS 27 or IAS 28
  • Non-monetary exchanges between entities in the same line of business to facilitate sales to customers: excluded
  • The counterparty is a customer: it has contracted to obtain, in exchange for consideration, goods or services that are an output of the entity's ordinary activities
  • Contract partly within another standard: separation or measurement under that standard first, remainder allocated under IFRS 15
  • Costs of obtaining and fulfilling the contract not within another standard: dealt with in “Contract costs”
  • Consistent application to contracts with similar characteristics and in similar circumstances

IFRS 15 §9IFRS 15 §10IFRS 15 §11IFRS 15 §12IFRS 15 §13IFRS 15 §14IFRS 15 §15IFRS 15 §16

• Contract criteria examined

  ChecklistRequired

  • Contract approved by the parties (in writing, orally or in line with customary practices), who are committed to perform their obligations
  • Each party's rights identifiable
  • Payment terms identifiable
  • Commercial substance
  • Collection of the consideration to which the entity will be entitled is probable, assessed on the customer's ability and intention to pay (any price concession taken into account)
  • Rights and obligations enforceable under the applicable law; term retained limited to the period in which they exist
  • Wholly unperformed contract that each party can terminate unilaterally without compensation: no contract
  • Criteria not reassessed unless facts change significantly; if there is no contract, assessment continued
  • Consideration received without a contract as defined: liability until one of the specified events occurs

  The five criteria of paragraph 9 are cumulative. Consideration received while they are not met is recognised as revenue only in the limited cases of paragraph 15; otherwise it remains a liability at the amount received (para. 16).

IFRS 15 §22IFRS 15 §23IFRS 15IFRS 15 §25IFRS 15 §26IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Analysis of the promises

  ChecklistRequired

  • Implicit promises arising from customary practices, published policies or specific statements that create a valid expectation of the customer
  • Set-up activities that transfer nothing to the customer (administrative tasks, for example): not a performance obligation
  • Nature of the promises reviewed (goods, tasks, stand-ready service, arranging by a third party, resaleable rights, construction, licences, options conferring a material right)
  • The customer can benefit from the good or service on its own or together with other readily available resources
  • Promise separately identifiable from the other promises in the contract (no significant integration, significant modification or customisation, nor high interdependence)
  • Non-distinct items combined until a distinct bundle is formed, if need be a single obligation for the whole contract
  • Series of distinct goods or services that are substantially the same and have the same pattern of transfer: a single obligation

IFRS 15 §B28IFRS 15

• Factors examined for each warranty

  Checklist

  • The warranty only provides assurance of compliance with agreed specifications or also provides a service
  • Warranty required by law: an indication that it is not a performance obligation
  • Coverage period: the longer it is, the more likely an additional service is
  • Tasks needed to provide assurance of compliance (return of a defective product, for example): probably not a performance obligation

• Classification of the warranty

  Choice

  Assurance of compliance only: not a separate performance obligation / Additional service: separate performance obligation / No warranty granted

IFRS 15 §6IFRS 15 §9IFRS 15 §12IFRS 15 §15IFRS 15 §16IFRS 15 §22IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Existence of a contract as defined by the standard

  JudgmentRequired

  The five criteria are met: the contract is accounted for under IFRS 15

  The five criteria are met: the contract is accounted for under IFRS 15 / Criteria not met: consideration received recognised as a liability, assessment continued / Wholly unperformed contract terminable without compensation: no contract / Counterparty not a customer or contract excluded from the scope: IFRS 15 does not apply

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Performance obligations identified

  JudgmentRequired

  Promises not distinct in the context of the contract: one combined obligation

  Each promised good or service is distinct: one obligation per promise / Promises not distinct in the context of the contract: one combined obligation / Series of distinct goods or services: a single obligation / Combination: some promises distinct, others combined

  The assessment rests on the facts of the contract: the standard sets no closed list of obligations. The two criteria for being distinct are cumulative (para. 27); the indicators of paragraph 29 help assess the second.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• List of performance obligations retained (key PO_1 to PO_4, goods or services included, service warranty where relevant), passed to “Allocating the transaction price”

  TextRequired

• Number of performance obligations retained

  NumberRequired

  1 units

  Result of the analysis of the promises (paras. 22 and 27): each distinct good or service, or series of distinct goods or services, counts as one obligation; set-up activities are not obligations (para. 25).

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The existence of the contract is documentedPass
• The performance obligations are identifiedPass
• The promises in the contract are listedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0

• Contract examined (parties, subject matter, term, payment terms, termination clauses) and applicable general terms

  TextRequired

• Contract inception date

  DateRequired

  20X4-11-20

• Counterparty and nature of the relationship (customer obtaining goods or services that are an output of the entity's ordinary activities, or partner sharing the risks and benefits of an activity)

  TextRequired

• Entity's customary business practices, published policies and specific statements to the customer

  TextRequired

• Customer's ability and intention to pay when due (history, financial position, price concessions contemplated)

  TextRequired

• Other contracts entered into at or near the same time with the same customer, and analysis of their possible combination

  Text

  This workpaper does not restate the criteria for combining contracts. Describe the facts; the official text applies.

• Goods or services promised (one row per promise, explicit or implicit)

  TableRequired

  PO_1 · STANDARD_MACHINE · EXPLICIT · YES

• Warranties granted (legally required or not, coverage period, tasks promised)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §3IFRS 15 §5IFRS 15 §6IFRS 15 §7IFRS 15 §8

• Scope points examined

  ChecklistRequired

  • Excluded contracts: leases (IFRS 16), insurance contracts (IFRS 17, subject to the option provided), financial instruments and rights within IFRS 9, IFRS 10, IFRS 11, IAS 27 or IAS 28
  • Non-monetary exchanges between entities in the same line of business to facilitate sales to customers: excluded
  • The counterparty is a customer: it has contracted to obtain, in exchange for consideration, goods or services that are an output of the entity's ordinary activities
  • Contract partly within another standard: separation or measurement under that standard first, remainder allocated under IFRS 15
  • Costs of obtaining and fulfilling the contract not within another standard: dealt with in “Contract costs”
  • Consistent application to contracts with similar characteristics and in similar circumstances

IFRS 15 §9IFRS 15 §10IFRS 15 §11IFRS 15 §12IFRS 15 §13IFRS 15 §14IFRS 15 §15IFRS 15 §16

• Contract criteria examined

  ChecklistRequired

  • Contract approved by the parties (in writing, orally or in line with customary practices), who are committed to perform their obligations
  • Each party's rights identifiable
  • Payment terms identifiable
  • Commercial substance
  • Collection of the consideration to which the entity will be entitled is probable, assessed on the customer's ability and intention to pay (any price concession taken into account)
  • Rights and obligations enforceable under the applicable law; term retained limited to the period in which they exist
  • Wholly unperformed contract that each party can terminate unilaterally without compensation: no contract
  • Criteria not reassessed unless facts change significantly; if there is no contract, assessment continued
  • Consideration received without a contract as defined: liability until one of the specified events occurs

  The five criteria of paragraph 9 are cumulative. Consideration received while they are not met is recognised as revenue only in the limited cases of paragraph 15; otherwise it remains a liability at the amount received (para. 16).

IFRS 15 §22IFRS 15 §23IFRS 15IFRS 15 §25IFRS 15 §26IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Analysis of the promises

  ChecklistRequired

  • Implicit promises arising from customary practices, published policies or specific statements that create a valid expectation of the customer
  • Set-up activities that transfer nothing to the customer (administrative tasks, for example): not a performance obligation
  • Nature of the promises reviewed (goods, tasks, stand-ready service, arranging by a third party, resaleable rights, construction, licences, options conferring a material right)
  • The customer can benefit from the good or service on its own or together with other readily available resources
  • Promise separately identifiable from the other promises in the contract (no significant integration, significant modification or customisation, nor high interdependence)
  • Non-distinct items combined until a distinct bundle is formed, if need be a single obligation for the whole contract
  • Series of distinct goods or services that are substantially the same and have the same pattern of transfer: a single obligation

IFRS 15 §B28IFRS 15

• Factors examined for each warranty

  Checklist

  • The warranty only provides assurance of compliance with agreed specifications or also provides a service
  • Warranty required by law: an indication that it is not a performance obligation
  • Coverage period: the longer it is, the more likely an additional service is
  • Tasks needed to provide assurance of compliance (return of a defective product, for example): probably not a performance obligation

• Classification of the warranty

  Choice

  Assurance of compliance only: not a separate performance obligation / Additional service: separate performance obligation / No warranty granted

IFRS 15 §6IFRS 15 §9IFRS 15 §12IFRS 15 §15IFRS 15 §16IFRS 15 §22IFRS 15 §27IFRS 15 §29IFRS 15 §30

• Existence of a contract as defined by the standard

  JudgmentRequired

  Criteria not met: consideration received recognised as a liability, assessment continued

  The five criteria are met: the contract is accounted for under IFRS 15 / Criteria not met: consideration received recognised as a liability, assessment continued / Wholly unperformed contract terminable without compensation: no contract / Counterparty not a customer or contract excluded from the scope: IFRS 15 does not apply

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Performance obligations identified

  JudgmentRequired

  Each promised good or service is distinct: one obligation per promise / Promises not distinct in the context of the contract: one combined obligation / Series of distinct goods or services: a single obligation / Combination: some promises distinct, others combined

  The assessment rests on the facts of the contract: the standard sets no closed list of obligations. The two criteria for being distinct are cumulative (para. 27); the indicators of paragraph 29 help assess the second.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• List of performance obligations retained (key PO_1 to PO_4, goods or services included, service warranty where relevant), passed to “Allocating the transaction price”

  TextRequired

• Number of performance obligations retained

  NumberRequired

  Result of the analysis of the promises (paras. 22 and 27): each distinct good or service, or series of distinct goods or services, counts as one obligation; set-up activities are not obligations (para. 25).

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The existence of the contract is documentedPass
• The performance obligations are identifiedNot filled in this instance
• The promises in the contract are listedPass

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0