Specific arrangements

• Situation examined (sale with a right of return, third party involved, prepaid vouchers or cards, upfront fees, licence, repurchase, consignment, bill-and-hold, acceptance clause)

  TextRequired

• Consideration received for sales with a right of return

  Number

  910,000

• Expected returns percentage (%)

  Number

  4 %

  The entity's estimate (returns history, for example), subject to the constraint on variable consideration and updated at each reporting date (para. B23 and B24); the standard sets no rate.

• Carrying amount of the products sold that are not expected to be returned

  Number

  576,000

• Former carrying amount of the products expected to be returned

  Number

  24,000

• Expected costs to recover the products (case data)

  Number

  1,500

• Consideration received from the end customer

  Number

• Amount payable to the supplier

  Number

• Prepaid vouchers or cards issued in the period (non-refundable payments)

  Number

• Expected breakage (amount)

  Number

• Rights expected to be exercised (total amount)

  Number

• Rights exercised by customers in the period

  Number

• Licensee's sales or usage in the period

  Number

• Contractual royalty rate (%)

  Number

• Role of the third party and indicators (responsibility for fulfilment, inventory risk, pricing discretion)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §B20IFRS 15 §B21IFRS 15 §B23IFRS 15 §B24

• Accounting for the right of return

  Checklist

  • Control transferred with a right of return (refund, credit, another product)
  • Revenue for goods not expected to be returned, refund liability, asset for the right to recover products with an adjustment to cost of sales
  • Expected consideration determined with the constraint; no revenue for goods expected to be returned
  • Estimate of returns updated at each reporting date, adjustment to revenue

IFRS 15 §B34IFRS 15 §B34AIFRS 15 §B35IFRS 15 §B35AIFRS 15 §B35BIFRS 15 §B36IFRS 15 §B37IFRS 15 §B37AIFRS 15

• Analysis of control

  Checklist

  • Specified goods or services identified (a right to a good or service of a third party may be one), analysis performed for each
  • Control before transfer (good obtained from the third party, right to a service it directs, integration into a combined good); momentary title is not necessarily enough
  • Indicators: primary responsibility for fulfilment, inventory risk, discretion in establishing the price, relevance depending on the contract
  • Principal: gross revenue; agent: fee, commission or net amount retained
  • Obligations assumed by another entity: no principal revenue, possible agent role examined

IFRS 15IFRS 15IFRS 15IFRS 15 §B50

• Points examined

  Checklist

  • Prepayment: contract liability, released to revenue when the goods or services are transferred
  • Part of the prepaid rights may not be exercised by customers
  • Upfront fees: related to a good or service transferred or an advance for future goods (period possibly extended by a renewal option that is a material right)
  • Fees related to a good or service: whether distinct assessed under paragraphs 22 to 30

  The pattern of recognition of expected breakage is specified by paragraphs whose rules this workpaper does not restate; the calculation of breakage for the period is a teaching convention.

IFRS 15 §B52IFRS 15 §B53IFRS 15 §B54IFRS 15 §B55IFRS 15 §B56IFRS 15 §B58IFRS 15 §B59IFRS 15 §B59AIFRS 15 §B60IFRS 15 §B61IFRS 15 §B62IFRS 15 §B63IFRS 15 §B63AIFRS 15 §B63B

• Analysis of the licence

  Checklist

  • Licence distinct or not from the other goods or services; non-distinct licence: combined obligation analysed under the general rules
  • Right to access if the three criteria are met: activities that significantly affect the intellectual property, direct exposure of the customer, no transfer of a good or service
  • Right to access: obligation satisfied over time
  • Right to use: obligation satisfied at a point in time, no revenue before the beginning of the period of use
  • Restrictions of time, geography or use and guarantees of the validity of a patent with no effect on the classification
  • Sales-based or usage-based royalty relating only or predominantly to a licence: revenue at the later of the sale or usage and the satisfaction of the obligation

• Nature of the licence

  Choice

  Right to access / Right to use / Licence not distinct / Not applicable: no licence

IFRS 15 §B66IFRS 15 §B68IFRS 15 §B69IFRS 15IFRS 15IFRS 15IFRS 15 §B73IFRS 15 §B74IFRS 15 §B75IFRS 15 §B76IFRS 15 §B77IFRS 15 §B78IFRS 15IFRS 15IFRS 15 §B81IFRS 15

• Points examined

  Checklist

  • Entity's obligation or right to repurchase: lease if the repurchase price is lower than the original price, financing if it is equal or higher; option lapsed: revenue
  • Customer's put option: price lower than the original price with a significant economic incentive, lease; lower price without incentive, sale with a right of return; price equal to or higher: above the expected market value, financing, otherwise, without incentive, sale with a right of return (comparison taking the time value of money into account); option lapsed: revenue
  • Delivery to a consignee: consignment indicators (control retained, return can be required, no unconditional obligation to pay), no revenue on delivery
  • Bill-and-hold: substantive reason, product identified as belonging to the customer, ready for transfer, not usable by the entity; any custodial service as a separate obligation

IFRS 15IFRS 15 §B84IFRS 15 §B85IFRS 15 §B86

• Effect of the clause on the transfer of control

  Checklist

  • Clause allowing the customer to cancel or require remedial action considered
  • Compliance objectively established before shipment: acceptance is a formality
  • Compliance not objectively established: control transferred on acceptance
  • Products delivered for trial without a commitment to pay: control on acceptance or at the end of the trial period

IFRS 15 §B21IFRS 15 §B23IFRS 15 §B36IFRS 15IFRS 15 §B63

• Refund liability (consideration received × expected returns)

  Calculation

  36,400

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Revenue for the goods not expected to be returned (remainder)

  Calculation

  873,600

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs)

  Calculation

  22,500

  Former carrying amount of the products expected to be returned ; − Expected costs to recover the products (case data)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Agent commission (consideration received − amount payable to the supplier)

  Calculation

  0

  Consideration received from the end customer ; − Amount payable to the supplier

• Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  Calculation

  Expected breakage (amount) ; Rights expected to be exercised (total amount) ; Rights exercised by customers in the period

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Royalty for the period (licensee's sales or usage × rate)

  Calculation

  Licensee's sales or usage in the period ; Contractual royalty rate (%)

  Amount recognised when the sale or usage occurs, if the obligation to which the royalty is allocated is satisfied (para. B63).

• Sale with a right of return

  Entry

  Account	Debit	Credit
  Cash	910,000
  Revenue		873,600
  Refund liability		36,400

• Derecognition of inventory and right to recover products

  Entry

  Account	Debit	Credit
  Cost of sales (goods not returned)	576,000
  Cost of sales (expected recovery costs)	1,500
  Right to recover products	22,500
  Inventories (goods not returned)		576,000
  Inventories (goods expected to be returned)		24,000

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Collection by the agent

  Entry

  Debit Cash ← Consideration received from the end customer ; Credit Payable to the supplier ← Amount payable to the supplier ; Credit Revenue (commission) ← Agent commission (consideration received − amount payable to the supplier)

• Issue of prepaid vouchers

  Entry

  Debit Cash ← Prepaid vouchers or cards issued in the period (non-refundable payments) ; Credit Contract liability ← Prepaid vouchers or cards issued in the period (non-refundable payments)

• Rights exercised: release of the contract liability

  Entry

  Debit Contract liability ← Rights exercised by customers in the period ; Credit Revenue ← Rights exercised by customers in the period

• Breakage: revenue for the period

  Entry

  Debit Contract liability ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised) ; Credit Revenue ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Royalty for the period

  Entry

  Debit Receivable ← Royalty for the period (licensee's sales or usage × rate) ; Credit Revenue ← Royalty for the period (licensee's sales or usage × rate)

IFRS 15 §B35IFRS 15 §B36IFRS 15 §B37IFRS 15 §B23IFRS 15 §B24

• Entity's role for each specified good or service

  JudgmentRequired

  Not applicable: no third party involved

  Principal: control before transfer, gross revenue / Agent: arranges for the third party to provide, commission / Not applicable: no third party involved

  The conclusion rests on control of the specified good or service before its transfer; the indicators support the analysis without replacing it (para. B37). It is the entity's judgement on the facts of the contract.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Estimate of returns and constraint

  JudgmentRequired

  Estimate of returns retained without adjustment

  Estimate of returns retained without adjustment / Estimate of returns adjusted under the constraint / Not applicable: no right of return

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

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

  References

• The entity's role is documentedPass
• The estimate of returns is documentedPass
• The consideration received is split between revenue and refund liabilityPass
• The sale entry is balancedPass
• The inventory entry is balancedPass
• The agent's entry is balancedNot evaluated
• The issue entry is balancedNot evaluated
• The redemption entry is balancedNot evaluated
• The breakage entry is balancedNot evaluated
• The royalty entry is balancedNot evaluated

Assets

332,500

Liabilities

36,400

Profit or loss

296,100

OCI

0

Equity

296,100

• Situation examined (sale with a right of return, third party involved, prepaid vouchers or cards, upfront fees, licence, repurchase, consignment, bill-and-hold, acceptance clause)

  TextRequired

• Consideration received for sales with a right of return

  Number

• Expected returns percentage (%)

  Number

  The entity's estimate (returns history, for example), subject to the constraint on variable consideration and updated at each reporting date (para. B23 and B24); the standard sets no rate.

• Carrying amount of the products sold that are not expected to be returned

  Number

• Former carrying amount of the products expected to be returned

  Number

• Expected costs to recover the products (case data)

  Number

• Consideration received from the end customer

  Number

  2,400,000

• Amount payable to the supplier

  Number

  2,040,000

• Prepaid vouchers or cards issued in the period (non-refundable payments)

  Number

• Expected breakage (amount)

  Number

• Rights expected to be exercised (total amount)

  Number

• Rights exercised by customers in the period

  Number

• Licensee's sales or usage in the period

  Number

• Contractual royalty rate (%)

  Number

• Role of the third party and indicators (responsibility for fulfilment, inventory risk, pricing discretion)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §B20IFRS 15 §B21IFRS 15 §B23IFRS 15 §B24

• Accounting for the right of return

  Checklist

  • Control transferred with a right of return (refund, credit, another product)
  • Revenue for goods not expected to be returned, refund liability, asset for the right to recover products with an adjustment to cost of sales
  • Expected consideration determined with the constraint; no revenue for goods expected to be returned
  • Estimate of returns updated at each reporting date, adjustment to revenue

IFRS 15 §B34IFRS 15 §B34AIFRS 15 §B35IFRS 15 §B35AIFRS 15 §B35BIFRS 15 §B36IFRS 15 §B37IFRS 15 §B37AIFRS 15

• Analysis of control

  Checklist

  • Specified goods or services identified (a right to a good or service of a third party may be one), analysis performed for each
  • Control before transfer (good obtained from the third party, right to a service it directs, integration into a combined good); momentary title is not necessarily enough
  • Indicators: primary responsibility for fulfilment, inventory risk, discretion in establishing the price, relevance depending on the contract
  • Principal: gross revenue; agent: fee, commission or net amount retained
  • Obligations assumed by another entity: no principal revenue, possible agent role examined

IFRS 15IFRS 15IFRS 15IFRS 15 §B50

• Points examined

  Checklist

  • Prepayment: contract liability, released to revenue when the goods or services are transferred
  • Part of the prepaid rights may not be exercised by customers
  • Upfront fees: related to a good or service transferred or an advance for future goods (period possibly extended by a renewal option that is a material right)
  • Fees related to a good or service: whether distinct assessed under paragraphs 22 to 30

  The pattern of recognition of expected breakage is specified by paragraphs whose rules this workpaper does not restate; the calculation of breakage for the period is a teaching convention.

IFRS 15 §B52IFRS 15 §B53IFRS 15 §B54IFRS 15 §B55IFRS 15 §B56IFRS 15 §B58IFRS 15 §B59IFRS 15 §B59AIFRS 15 §B60IFRS 15 §B61IFRS 15 §B62IFRS 15 §B63IFRS 15 §B63AIFRS 15 §B63B

• Analysis of the licence

  Checklist

  • Licence distinct or not from the other goods or services; non-distinct licence: combined obligation analysed under the general rules
  • Right to access if the three criteria are met: activities that significantly affect the intellectual property, direct exposure of the customer, no transfer of a good or service
  • Right to access: obligation satisfied over time
  • Right to use: obligation satisfied at a point in time, no revenue before the beginning of the period of use
  • Restrictions of time, geography or use and guarantees of the validity of a patent with no effect on the classification
  • Sales-based or usage-based royalty relating only or predominantly to a licence: revenue at the later of the sale or usage and the satisfaction of the obligation

• Nature of the licence

  Choice

  Right to access / Right to use / Licence not distinct / Not applicable: no licence

IFRS 15 §B66IFRS 15 §B68IFRS 15 §B69IFRS 15IFRS 15IFRS 15IFRS 15 §B73IFRS 15 §B74IFRS 15 §B75IFRS 15 §B76IFRS 15 §B77IFRS 15 §B78IFRS 15IFRS 15IFRS 15 §B81IFRS 15

• Points examined

  Checklist

  • Entity's obligation or right to repurchase: lease if the repurchase price is lower than the original price, financing if it is equal or higher; option lapsed: revenue
  • Customer's put option: price lower than the original price with a significant economic incentive, lease; lower price without incentive, sale with a right of return; price equal to or higher: above the expected market value, financing, otherwise, without incentive, sale with a right of return (comparison taking the time value of money into account); option lapsed: revenue
  • Delivery to a consignee: consignment indicators (control retained, return can be required, no unconditional obligation to pay), no revenue on delivery
  • Bill-and-hold: substantive reason, product identified as belonging to the customer, ready for transfer, not usable by the entity; any custodial service as a separate obligation

IFRS 15IFRS 15 §B84IFRS 15 §B85IFRS 15 §B86

• Effect of the clause on the transfer of control

  Checklist

  • Clause allowing the customer to cancel or require remedial action considered
  • Compliance objectively established before shipment: acceptance is a formality
  • Compliance not objectively established: control transferred on acceptance
  • Products delivered for trial without a commitment to pay: control on acceptance or at the end of the trial period

IFRS 15 §B21IFRS 15 §B23IFRS 15 §B36IFRS 15IFRS 15 §B63

• Refund liability (consideration received × expected returns)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Revenue for the goods not expected to be returned (remainder)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs)

  Calculation

  0

  Former carrying amount of the products expected to be returned ; − Expected costs to recover the products (case data)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Agent commission (consideration received − amount payable to the supplier)

  Calculation

  360,000

  Consideration received from the end customer ; − Amount payable to the supplier

• Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  Calculation

  Expected breakage (amount) ; Rights expected to be exercised (total amount) ; Rights exercised by customers in the period

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Royalty for the period (licensee's sales or usage × rate)

  Calculation

  Licensee's sales or usage in the period ; Contractual royalty rate (%)

  Amount recognised when the sale or usage occurs, if the obligation to which the royalty is allocated is satisfied (para. B63).

• Sale with a right of return

  Entry

  Debit Cash ← Consideration received for sales with a right of return ; Credit Revenue ← Revenue for the goods not expected to be returned (remainder) ; Credit Refund liability ← Refund liability (consideration received × expected returns)

• Derecognition of inventory and right to recover products

  Entry

  Debit Cost of sales (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Debit Cost of sales (expected recovery costs) ← Expected costs to recover the products (case data) ; Debit Right to recover products ← Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs) ; Credit Inventories (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Credit Inventories (goods expected to be returned) ← Former carrying amount of the products expected to be returned

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Collection by the agent

  Entry

  Account	Debit	Credit
  Cash	2,400,000
  Payable to the supplier		2,040,000
  Revenue (commission)		360,000

• Issue of prepaid vouchers

  Entry

  Debit Cash ← Prepaid vouchers or cards issued in the period (non-refundable payments) ; Credit Contract liability ← Prepaid vouchers or cards issued in the period (non-refundable payments)

• Rights exercised: release of the contract liability

  Entry

  Debit Contract liability ← Rights exercised by customers in the period ; Credit Revenue ← Rights exercised by customers in the period

• Breakage: revenue for the period

  Entry

  Debit Contract liability ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised) ; Credit Revenue ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Royalty for the period

  Entry

  Debit Receivable ← Royalty for the period (licensee's sales or usage × rate) ; Credit Revenue ← Royalty for the period (licensee's sales or usage × rate)

IFRS 15 §B35IFRS 15 §B36IFRS 15 §B37IFRS 15 §B23IFRS 15 §B24

• Entity's role for each specified good or service

  JudgmentRequired

  Agent: arranges for the third party to provide, commission

  Principal: control before transfer, gross revenue / Agent: arranges for the third party to provide, commission / Not applicable: no third party involved

  The conclusion rests on control of the specified good or service before its transfer; the indicators support the analysis without replacing it (para. B37). It is the entity's judgement on the facts of the contract.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Estimate of returns and constraint

  JudgmentRequired

  Not applicable: no right of return

  Estimate of returns retained without adjustment / Estimate of returns adjusted under the constraint / Not applicable: no right of return

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

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

  References

• The entity's role is documentedPass
• The estimate of returns is documentedPass
• The consideration received is split between revenue and refund liabilityNot evaluated
• The sale entry is balancedNot evaluated
• The inventory entry is balancedNot evaluated
• The agent's entry is balancedPass
• The issue entry is balancedNot evaluated
• The redemption entry is balancedNot evaluated
• The breakage entry is balancedNot evaluated
• The royalty entry is balancedNot evaluated

Assets

2,400,000

Liabilities

2,040,000

Profit or loss

360,000

OCI

0

Equity

360,000

• Situation examined (sale with a right of return, third party involved, prepaid vouchers or cards, upfront fees, licence, repurchase, consignment, bill-and-hold, acceptance clause)

  TextRequired

• Consideration received for sales with a right of return

  Number

• Expected returns percentage (%)

  Number

  The entity's estimate (returns history, for example), subject to the constraint on variable consideration and updated at each reporting date (para. B23 and B24); the standard sets no rate.

• Carrying amount of the products sold that are not expected to be returned

  Number

• Former carrying amount of the products expected to be returned

  Number

• Expected costs to recover the products (case data)

  Number

• Consideration received from the end customer

  Number

• Amount payable to the supplier

  Number

• Prepaid vouchers or cards issued in the period (non-refundable payments)

  Number

• Expected breakage (amount)

  Number

  50,000

• Rights expected to be exercised (total amount)

  Number

  450,000

• Rights exercised by customers in the period

  Number

  324,000

• Licensee's sales or usage in the period

  Number

• Contractual royalty rate (%)

  Number

• Role of the third party and indicators (responsibility for fulfilment, inventory risk, pricing discretion)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §B20IFRS 15 §B21IFRS 15 §B23IFRS 15 §B24

• Accounting for the right of return

  Checklist

  • Control transferred with a right of return (refund, credit, another product)
  • Revenue for goods not expected to be returned, refund liability, asset for the right to recover products with an adjustment to cost of sales
  • Expected consideration determined with the constraint; no revenue for goods expected to be returned
  • Estimate of returns updated at each reporting date, adjustment to revenue

IFRS 15 §B34IFRS 15 §B34AIFRS 15 §B35IFRS 15 §B35AIFRS 15 §B35BIFRS 15 §B36IFRS 15 §B37IFRS 15 §B37AIFRS 15

• Analysis of control

  Checklist

  • Specified goods or services identified (a right to a good or service of a third party may be one), analysis performed for each
  • Control before transfer (good obtained from the third party, right to a service it directs, integration into a combined good); momentary title is not necessarily enough
  • Indicators: primary responsibility for fulfilment, inventory risk, discretion in establishing the price, relevance depending on the contract
  • Principal: gross revenue; agent: fee, commission or net amount retained
  • Obligations assumed by another entity: no principal revenue, possible agent role examined

IFRS 15IFRS 15IFRS 15IFRS 15 §B50

• Points examined

  Checklist

  • Prepayment: contract liability, released to revenue when the goods or services are transferred
  • Part of the prepaid rights may not be exercised by customers
  • Upfront fees: related to a good or service transferred or an advance for future goods (period possibly extended by a renewal option that is a material right)
  • Fees related to a good or service: whether distinct assessed under paragraphs 22 to 30

  The pattern of recognition of expected breakage is specified by paragraphs whose rules this workpaper does not restate; the calculation of breakage for the period is a teaching convention.

IFRS 15 §B52IFRS 15 §B53IFRS 15 §B54IFRS 15 §B55IFRS 15 §B56IFRS 15 §B58IFRS 15 §B59IFRS 15 §B59AIFRS 15 §B60IFRS 15 §B61IFRS 15 §B62IFRS 15 §B63IFRS 15 §B63AIFRS 15 §B63B

• Analysis of the licence

  Checklist

  • Licence distinct or not from the other goods or services; non-distinct licence: combined obligation analysed under the general rules
  • Right to access if the three criteria are met: activities that significantly affect the intellectual property, direct exposure of the customer, no transfer of a good or service
  • Right to access: obligation satisfied over time
  • Right to use: obligation satisfied at a point in time, no revenue before the beginning of the period of use
  • Restrictions of time, geography or use and guarantees of the validity of a patent with no effect on the classification
  • Sales-based or usage-based royalty relating only or predominantly to a licence: revenue at the later of the sale or usage and the satisfaction of the obligation

• Nature of the licence

  Choice

  Right to access / Right to use / Licence not distinct / Not applicable: no licence

IFRS 15 §B66IFRS 15 §B68IFRS 15 §B69IFRS 15IFRS 15IFRS 15IFRS 15 §B73IFRS 15 §B74IFRS 15 §B75IFRS 15 §B76IFRS 15 §B77IFRS 15 §B78IFRS 15IFRS 15IFRS 15 §B81IFRS 15

• Points examined

  Checklist

  • Entity's obligation or right to repurchase: lease if the repurchase price is lower than the original price, financing if it is equal or higher; option lapsed: revenue
  • Customer's put option: price lower than the original price with a significant economic incentive, lease; lower price without incentive, sale with a right of return; price equal to or higher: above the expected market value, financing, otherwise, without incentive, sale with a right of return (comparison taking the time value of money into account); option lapsed: revenue
  • Delivery to a consignee: consignment indicators (control retained, return can be required, no unconditional obligation to pay), no revenue on delivery
  • Bill-and-hold: substantive reason, product identified as belonging to the customer, ready for transfer, not usable by the entity; any custodial service as a separate obligation

IFRS 15IFRS 15 §B84IFRS 15 §B85IFRS 15 §B86

• Effect of the clause on the transfer of control

  Checklist

  • Clause allowing the customer to cancel or require remedial action considered
  • Compliance objectively established before shipment: acceptance is a formality
  • Compliance not objectively established: control transferred on acceptance
  • Products delivered for trial without a commitment to pay: control on acceptance or at the end of the trial period

IFRS 15 §B21IFRS 15 §B23IFRS 15 §B36IFRS 15IFRS 15 §B63

• Refund liability (consideration received × expected returns)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Revenue for the goods not expected to be returned (remainder)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs)

  Calculation

  0

  Former carrying amount of the products expected to be returned ; − Expected costs to recover the products (case data)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Agent commission (consideration received − amount payable to the supplier)

  Calculation

  0

  Consideration received from the end customer ; − Amount payable to the supplier

• Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  Calculation

  36,000

  Expected breakage (amount) ; Rights expected to be exercised (total amount) ; Rights exercised by customers in the period

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Royalty for the period (licensee's sales or usage × rate)

  Calculation

  Licensee's sales or usage in the period ; Contractual royalty rate (%)

  Amount recognised when the sale or usage occurs, if the obligation to which the royalty is allocated is satisfied (para. B63).

• Sale with a right of return

  Entry

  Debit Cash ← Consideration received for sales with a right of return ; Credit Revenue ← Revenue for the goods not expected to be returned (remainder) ; Credit Refund liability ← Refund liability (consideration received × expected returns)

• Derecognition of inventory and right to recover products

  Entry

  Debit Cost of sales (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Debit Cost of sales (expected recovery costs) ← Expected costs to recover the products (case data) ; Debit Right to recover products ← Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs) ; Credit Inventories (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Credit Inventories (goods expected to be returned) ← Former carrying amount of the products expected to be returned

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Collection by the agent

  Entry

  Debit Cash ← Consideration received from the end customer ; Credit Payable to the supplier ← Amount payable to the supplier ; Credit Revenue (commission) ← Agent commission (consideration received − amount payable to the supplier)

• Issue of prepaid vouchers

  Entry

  Debit Cash ← Prepaid vouchers or cards issued in the period (non-refundable payments) ; Credit Contract liability ← Prepaid vouchers or cards issued in the period (non-refundable payments)

• Rights exercised: release of the contract liability

  Entry

  Account	Debit	Credit
  Contract liability	324,000
  Revenue		324,000

• Breakage: revenue for the period

  Entry

  Account	Debit	Credit
  Contract liability	36,000
  Revenue		36,000

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Royalty for the period

  Entry

  Debit Receivable ← Royalty for the period (licensee's sales or usage × rate) ; Credit Revenue ← Royalty for the period (licensee's sales or usage × rate)

IFRS 15 §B35IFRS 15 §B36IFRS 15 §B37IFRS 15 §B23IFRS 15 §B24

• Entity's role for each specified good or service

  JudgmentRequired

  Not applicable: no third party involved

  Principal: control before transfer, gross revenue / Agent: arranges for the third party to provide, commission / Not applicable: no third party involved

  The conclusion rests on control of the specified good or service before its transfer; the indicators support the analysis without replacing it (para. B37). It is the entity's judgement on the facts of the contract.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Estimate of returns and constraint

  JudgmentRequired

  Not applicable: no right of return

  Estimate of returns retained without adjustment / Estimate of returns adjusted under the constraint / Not applicable: no right of return

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

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

  References

• The entity's role is documentedPass
• The estimate of returns is documentedPass
• The consideration received is split between revenue and refund liabilityNot evaluated
• The sale entry is balancedNot evaluated
• The inventory entry is balancedNot evaluated
• The agent's entry is balancedNot evaluated
• The issue entry is balancedNot evaluated
• The redemption entry is balancedPass
• The breakage entry is balancedPass
• The royalty entry is balancedNot evaluated

Assets

0

Liabilities

-360,000

Profit or loss

360,000

OCI

0

Equity

360,000

• Situation examined (sale with a right of return, third party involved, prepaid vouchers or cards, upfront fees, licence, repurchase, consignment, bill-and-hold, acceptance clause)

  TextRequired

• Consideration received for sales with a right of return

  Number

• Expected returns percentage (%)

  Number

  The entity's estimate (returns history, for example), subject to the constraint on variable consideration and updated at each reporting date (para. B23 and B24); the standard sets no rate.

• Carrying amount of the products sold that are not expected to be returned

  Number

• Former carrying amount of the products expected to be returned

  Number

• Expected costs to recover the products (case data)

  Number

• Consideration received from the end customer

  Number

  1,750,000

• Amount payable to the supplier

  Number

  1,540,000

• Prepaid vouchers or cards issued in the period (non-refundable payments)

  Number

• Expected breakage (amount)

  Number

• Rights expected to be exercised (total amount)

  Number

• Rights exercised by customers in the period

  Number

• Licensee's sales or usage in the period

  Number

• Contractual royalty rate (%)

  Number

• Role of the third party and indicators (responsibility for fulfilment, inventory risk, pricing discretion)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §B20IFRS 15 §B21IFRS 15 §B23IFRS 15 §B24

• Accounting for the right of return

  Checklist

  • Control transferred with a right of return (refund, credit, another product)
  • Revenue for goods not expected to be returned, refund liability, asset for the right to recover products with an adjustment to cost of sales
  • Expected consideration determined with the constraint; no revenue for goods expected to be returned
  • Estimate of returns updated at each reporting date, adjustment to revenue

IFRS 15 §B34IFRS 15 §B34AIFRS 15 §B35IFRS 15 §B35AIFRS 15 §B35BIFRS 15 §B36IFRS 15 §B37IFRS 15 §B37AIFRS 15

• Analysis of control

  Checklist

  • Specified goods or services identified (a right to a good or service of a third party may be one), analysis performed for each
  • Control before transfer (good obtained from the third party, right to a service it directs, integration into a combined good); momentary title is not necessarily enough
  • Indicators: primary responsibility for fulfilment, inventory risk, discretion in establishing the price, relevance depending on the contract
  • Principal: gross revenue; agent: fee, commission or net amount retained
  • Obligations assumed by another entity: no principal revenue, possible agent role examined

IFRS 15IFRS 15IFRS 15IFRS 15 §B50

• Points examined

  Checklist

  • Prepayment: contract liability, released to revenue when the goods or services are transferred
  • Part of the prepaid rights may not be exercised by customers
  • Upfront fees: related to a good or service transferred or an advance for future goods (period possibly extended by a renewal option that is a material right)
  • Fees related to a good or service: whether distinct assessed under paragraphs 22 to 30

  The pattern of recognition of expected breakage is specified by paragraphs whose rules this workpaper does not restate; the calculation of breakage for the period is a teaching convention.

IFRS 15 §B52IFRS 15 §B53IFRS 15 §B54IFRS 15 §B55IFRS 15 §B56IFRS 15 §B58IFRS 15 §B59IFRS 15 §B59AIFRS 15 §B60IFRS 15 §B61IFRS 15 §B62IFRS 15 §B63IFRS 15 §B63AIFRS 15 §B63B

• Analysis of the licence

  Checklist

  • Licence distinct or not from the other goods or services; non-distinct licence: combined obligation analysed under the general rules
  • Right to access if the three criteria are met: activities that significantly affect the intellectual property, direct exposure of the customer, no transfer of a good or service
  • Right to access: obligation satisfied over time
  • Right to use: obligation satisfied at a point in time, no revenue before the beginning of the period of use
  • Restrictions of time, geography or use and guarantees of the validity of a patent with no effect on the classification
  • Sales-based or usage-based royalty relating only or predominantly to a licence: revenue at the later of the sale or usage and the satisfaction of the obligation

• Nature of the licence

  Choice

  Right to access / Right to use / Licence not distinct / Not applicable: no licence

IFRS 15 §B66IFRS 15 §B68IFRS 15 §B69IFRS 15IFRS 15IFRS 15IFRS 15 §B73IFRS 15 §B74IFRS 15 §B75IFRS 15 §B76IFRS 15 §B77IFRS 15 §B78IFRS 15IFRS 15IFRS 15 §B81IFRS 15

• Points examined

  Checklist

  • Entity's obligation or right to repurchase: lease if the repurchase price is lower than the original price, financing if it is equal or higher; option lapsed: revenue
  • Customer's put option: price lower than the original price with a significant economic incentive, lease; lower price without incentive, sale with a right of return; price equal to or higher: above the expected market value, financing, otherwise, without incentive, sale with a right of return (comparison taking the time value of money into account); option lapsed: revenue
  • Delivery to a consignee: consignment indicators (control retained, return can be required, no unconditional obligation to pay), no revenue on delivery
  • Bill-and-hold: substantive reason, product identified as belonging to the customer, ready for transfer, not usable by the entity; any custodial service as a separate obligation

IFRS 15IFRS 15 §B84IFRS 15 §B85IFRS 15 §B86

• Effect of the clause on the transfer of control

  Checklist

  • Clause allowing the customer to cancel or require remedial action considered
  • Compliance objectively established before shipment: acceptance is a formality
  • Compliance not objectively established: control transferred on acceptance
  • Products delivered for trial without a commitment to pay: control on acceptance or at the end of the trial period

IFRS 15 §B21IFRS 15 §B23IFRS 15 §B36IFRS 15IFRS 15 §B63

• Refund liability (consideration received × expected returns)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Revenue for the goods not expected to be returned (remainder)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs)

  Calculation

  0

  Former carrying amount of the products expected to be returned ; − Expected costs to recover the products (case data)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Agent commission (consideration received − amount payable to the supplier)

  Calculation

  210,000

  Consideration received from the end customer ; − Amount payable to the supplier

• Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  Calculation

  Expected breakage (amount) ; Rights expected to be exercised (total amount) ; Rights exercised by customers in the period

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Royalty for the period (licensee's sales or usage × rate)

  Calculation

  Licensee's sales or usage in the period ; Contractual royalty rate (%)

  Amount recognised when the sale or usage occurs, if the obligation to which the royalty is allocated is satisfied (para. B63).

• Sale with a right of return

  Entry

  Debit Cash ← Consideration received for sales with a right of return ; Credit Revenue ← Revenue for the goods not expected to be returned (remainder) ; Credit Refund liability ← Refund liability (consideration received × expected returns)

• Derecognition of inventory and right to recover products

  Entry

  Debit Cost of sales (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Debit Cost of sales (expected recovery costs) ← Expected costs to recover the products (case data) ; Debit Right to recover products ← Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs) ; Credit Inventories (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Credit Inventories (goods expected to be returned) ← Former carrying amount of the products expected to be returned

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Collection by the agent

  Entry

  Account	Debit	Credit
  Cash	1,750,000
  Payable to the supplier		1,540,000
  Revenue (commission)		210,000

• Issue of prepaid vouchers

  Entry

  Debit Cash ← Prepaid vouchers or cards issued in the period (non-refundable payments) ; Credit Contract liability ← Prepaid vouchers or cards issued in the period (non-refundable payments)

• Rights exercised: release of the contract liability

  Entry

  Debit Contract liability ← Rights exercised by customers in the period ; Credit Revenue ← Rights exercised by customers in the period

• Breakage: revenue for the period

  Entry

  Debit Contract liability ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised) ; Credit Revenue ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Royalty for the period

  Entry

  Debit Receivable ← Royalty for the period (licensee's sales or usage × rate) ; Credit Revenue ← Royalty for the period (licensee's sales or usage × rate)

IFRS 15 §B35IFRS 15 §B36IFRS 15 §B37IFRS 15 §B23IFRS 15 §B24

• Entity's role for each specified good or service

  JudgmentRequired

  Agent: arranges for the third party to provide, commission

  Principal: control before transfer, gross revenue / Agent: arranges for the third party to provide, commission / Not applicable: no third party involved

  The conclusion rests on control of the specified good or service before its transfer; the indicators support the analysis without replacing it (para. B37). It is the entity's judgement on the facts of the contract.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Estimate of returns and constraint

  JudgmentRequired

  Not applicable: no right of return

  Estimate of returns retained without adjustment / Estimate of returns adjusted under the constraint / Not applicable: no right of return

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

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

  References

• The entity's role is documentedPass
• The estimate of returns is documentedPass
• The consideration received is split between revenue and refund liabilityNot evaluated
• The sale entry is balancedNot evaluated
• The inventory entry is balancedNot evaluated
• The agent's entry is balancedPass
• The issue entry is balancedNot evaluated
• The redemption entry is balancedNot evaluated
• The breakage entry is balancedNot evaluated
• The royalty entry is balancedNot evaluated

Assets

1,750,000

Liabilities

1,540,000

Profit or loss

210,000

OCI

0

Equity

210,000

• Situation examined (sale with a right of return, third party involved, prepaid vouchers or cards, upfront fees, licence, repurchase, consignment, bill-and-hold, acceptance clause)

  TextRequired

• Consideration received for sales with a right of return

  Number

• Expected returns percentage (%)

  Number

  The entity's estimate (returns history, for example), subject to the constraint on variable consideration and updated at each reporting date (para. B23 and B24); the standard sets no rate.

• Carrying amount of the products sold that are not expected to be returned

  Number

• Former carrying amount of the products expected to be returned

  Number

• Expected costs to recover the products (case data)

  Number

• Consideration received from the end customer

  Number

• Amount payable to the supplier

  Number

• Prepaid vouchers or cards issued in the period (non-refundable payments)

  Number

• Expected breakage (amount)

  Number

• Rights expected to be exercised (total amount)

  Number

• Rights exercised by customers in the period

  Number

• Licensee's sales or usage in the period

  Number

• Contractual royalty rate (%)

  Number

• Role of the third party and indicators (responsibility for fulfilment, inventory risk, pricing discretion)

  Text

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 15 §B20IFRS 15 §B21IFRS 15 §B23IFRS 15 §B24

• Accounting for the right of return

  Checklist

  • Control transferred with a right of return (refund, credit, another product)
  • Revenue for goods not expected to be returned, refund liability, asset for the right to recover products with an adjustment to cost of sales
  • Expected consideration determined with the constraint; no revenue for goods expected to be returned
  • Estimate of returns updated at each reporting date, adjustment to revenue

IFRS 15 §B34IFRS 15 §B34AIFRS 15 §B35IFRS 15 §B35AIFRS 15 §B35BIFRS 15 §B36IFRS 15 §B37IFRS 15 §B37AIFRS 15

• Analysis of control

  Checklist

  • Specified goods or services identified (a right to a good or service of a third party may be one), analysis performed for each
  • Control before transfer (good obtained from the third party, right to a service it directs, integration into a combined good); momentary title is not necessarily enough
  • Indicators: primary responsibility for fulfilment, inventory risk, discretion in establishing the price, relevance depending on the contract
  • Principal: gross revenue; agent: fee, commission or net amount retained
  • Obligations assumed by another entity: no principal revenue, possible agent role examined

IFRS 15IFRS 15IFRS 15IFRS 15 §B50

• Points examined

  Checklist

  • Prepayment: contract liability, released to revenue when the goods or services are transferred
  • Part of the prepaid rights may not be exercised by customers
  • Upfront fees: related to a good or service transferred or an advance for future goods (period possibly extended by a renewal option that is a material right)
  • Fees related to a good or service: whether distinct assessed under paragraphs 22 to 30

  The pattern of recognition of expected breakage is specified by paragraphs whose rules this workpaper does not restate; the calculation of breakage for the period is a teaching convention.

IFRS 15 §B52IFRS 15 §B53IFRS 15 §B54IFRS 15 §B55IFRS 15 §B56IFRS 15 §B58IFRS 15 §B59IFRS 15 §B59AIFRS 15 §B60IFRS 15 §B61IFRS 15 §B62IFRS 15 §B63IFRS 15 §B63AIFRS 15 §B63B

• Analysis of the licence

  Checklist

  • Licence distinct or not from the other goods or services; non-distinct licence: combined obligation analysed under the general rules
  • Right to access if the three criteria are met: activities that significantly affect the intellectual property, direct exposure of the customer, no transfer of a good or service
  • Right to access: obligation satisfied over time
  • Right to use: obligation satisfied at a point in time, no revenue before the beginning of the period of use
  • Restrictions of time, geography or use and guarantees of the validity of a patent with no effect on the classification
  • Sales-based or usage-based royalty relating only or predominantly to a licence: revenue at the later of the sale or usage and the satisfaction of the obligation

• Nature of the licence

  Choice

  Right to access / Right to use / Licence not distinct / Not applicable: no licence

IFRS 15 §B66IFRS 15 §B68IFRS 15 §B69IFRS 15IFRS 15IFRS 15IFRS 15 §B73IFRS 15 §B74IFRS 15 §B75IFRS 15 §B76IFRS 15 §B77IFRS 15 §B78IFRS 15IFRS 15IFRS 15 §B81IFRS 15

• Points examined

  Checklist

  • Entity's obligation or right to repurchase: lease if the repurchase price is lower than the original price, financing if it is equal or higher; option lapsed: revenue
  • Customer's put option: price lower than the original price with a significant economic incentive, lease; lower price without incentive, sale with a right of return; price equal to or higher: above the expected market value, financing, otherwise, without incentive, sale with a right of return (comparison taking the time value of money into account); option lapsed: revenue
  • Delivery to a consignee: consignment indicators (control retained, return can be required, no unconditional obligation to pay), no revenue on delivery
  • Bill-and-hold: substantive reason, product identified as belonging to the customer, ready for transfer, not usable by the entity; any custodial service as a separate obligation

IFRS 15IFRS 15 §B84IFRS 15 §B85IFRS 15 §B86

• Effect of the clause on the transfer of control

  Checklist

  • Clause allowing the customer to cancel or require remedial action considered
  • Compliance objectively established before shipment: acceptance is a formality
  • Compliance not objectively established: control transferred on acceptance
  • Products delivered for trial without a commitment to pay: control on acceptance or at the end of the trial period

IFRS 15 §B21IFRS 15 §B23IFRS 15 §B36IFRS 15IFRS 15 §B63

• Refund liability (consideration received × expected returns)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Revenue for the goods not expected to be returned (remainder)

  Calculation

  Consideration received for sales with a right of return ; Expected returns percentage (%)

• Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs)

  Calculation

  0

  Former carrying amount of the products expected to be returned ; − Expected costs to recover the products (case data)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Agent commission (consideration received − amount payable to the supplier)

  Calculation

  0

  Consideration received from the end customer ; − Amount payable to the supplier

• Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  Calculation

  Expected breakage (amount) ; Rights expected to be exercised (total amount) ; Rights exercised by customers in the period

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The calculation above is a teaching convention.

• Royalty for the period (licensee's sales or usage × rate)

  Calculation

  Licensee's sales or usage in the period ; Contractual royalty rate (%)

  Amount recognised when the sale or usage occurs, if the obligation to which the royalty is allocated is satisfied (para. B63).

• Sale with a right of return

  Entry

  Debit Cash ← Consideration received for sales with a right of return ; Credit Revenue ← Revenue for the goods not expected to be returned (remainder) ; Credit Refund liability ← Refund liability (consideration received × expected returns)

• Derecognition of inventory and right to recover products

  Entry

  Debit Cost of sales (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Debit Cost of sales (expected recovery costs) ← Expected costs to recover the products (case data) ; Debit Right to recover products ← Asset for the right to recover products (teaching convention to be confirmed: former carrying amount − recovery costs) ; Credit Inventories (goods not returned) ← Carrying amount of the products sold that are not expected to be returned ; Credit Inventories (goods expected to be returned) ← Former carrying amount of the products expected to be returned

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Collection by the agent

  Entry

  Debit Cash ← Consideration received from the end customer ; Credit Payable to the supplier ← Amount payable to the supplier ; Credit Revenue (commission) ← Agent commission (consideration received − amount payable to the supplier)

• Issue of prepaid vouchers

  Entry

  Debit Cash ← Prepaid vouchers or cards issued in the period (non-refundable payments) ; Credit Contract liability ← Prepaid vouchers or cards issued in the period (non-refundable payments)

• Rights exercised: release of the contract liability

  Entry

  Debit Contract liability ← Rights exercised by customers in the period ; Credit Revenue ← Rights exercised by customers in the period

• Breakage: revenue for the period

  Entry

  Debit Contract liability ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised) ; Credit Revenue ← Breakage revenue for the period (expected breakage × rights exercised / rights expected to be exercised)

  This workpaper restates none of the rules of the paragraph that specifies this point: the official text applies. The amounts in this entry rest on a teaching convention.

• Royalty for the period

  Entry

  Debit Receivable ← Royalty for the period (licensee's sales or usage × rate) ; Credit Revenue ← Royalty for the period (licensee's sales or usage × rate)

IFRS 15 §B35IFRS 15 §B36IFRS 15 §B37IFRS 15 §B23IFRS 15 §B24

• Entity's role for each specified good or service

  JudgmentRequired

  Principal: control before transfer, gross revenue

  Principal: control before transfer, gross revenue / Agent: arranges for the third party to provide, commission / Not applicable: no third party involved

  The conclusion rests on control of the specified good or service before its transfer; the indicators support the analysis without replacing it (para. B37). It is the entity's judgement on the facts of the contract.

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Estimate of returns and constraint

  JudgmentRequired

  Not applicable: no right of return

  Estimate of returns retained without adjustment / Estimate of returns adjusted under the constraint / Not applicable: no right of return

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

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

  References

• The entity's role is documentedPass
• The estimate of returns is documentedPass
• The consideration received is split between revenue and refund liabilityNot evaluated
• The sale entry is balancedNot evaluated
• The inventory entry is balancedNot evaluated
• The agent's entry is balancedNot evaluated
• The issue entry is balancedNot evaluated
• The redemption entry is balancedNot evaluated
• The breakage entry is balancedNot evaluated
• The royalty entry is balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0