IFRS 15, the revenue standard, requires that contracts be combined and accounted for as a single contract under certain conditions. In the given scenarios:
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For Carpeting Plus Ltd. and Safety Inc.: These two contracts should be combined because they were negotiated for the purpose of installing a security system with panic buttons and 24/7 alarm monitoring, indicating they are part of a larger, integrated service for a common purpose.
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For Smelly Soaps Ltd. and Common Cleaners Inc.: These contracts would not be combined since they have different characteristics, commercial objectives, and consideration is independent between them.
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For Safety Inc. and Best Bankers Ltd.: These contracts should be combined as they were entered into for internal management reasons and form an integrated service for a complete security system.
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For Heavenly Rooms Ltd. and the three interior design companies: These contracts would not be combined, as the parties are unrelated and the goods and services do not seem to be interdependent or part of a larger, integrated project.
In summary, IFRS 15 would require combining the contracts in scenarios 1 and 3, while the contracts in scenarios 2 and 4 would be accounted for separately due to their distinct nature or unrelated parties involved.
