Which one of the following statements is reasonable with regards to identifying which arrangements are within the scope of IFRS 15?
IT 4 U Services Ltd. enters into a contract that is partially in the scope of IFRS 16 Leases and partially in the scope of IFRS 15 Revenue from Contracts with Customers. The separation and measurement requirements of IFRS 15 are applied first, thereafter IFRS 16 must be applied to the non-revenue components.
Johnathan buys a motor vehicle from Zippy Cars Ltd. Zippy Cars Ltd. includes a repurchasing clause. Depending on the specific type of repurchase agreement, and more specifically whether Johnathan obtains control of the motor vehicle or not, the purchase agreement may or may not be within the scope of IFRS 15
Zippy Cars Ltd. sells 30 of the laptops that their finance and administrative staff have used to an underprivileged school. Given Zippy Cars Ltd. is not in the business of selling laptops the school is not Zippy Cars Ltd.’s customer. Therefore, IFRS 15 is not relevant to the sale of the laptops to the school.
Product Comparison Inc. incurs significant costs to obtain and fulfill a contract with a local consortium. Since IFRS 15 only contains guidance on revenue from contracts with customers, any costs Product Comparison Inc. incurs have to be assessed exclusively under other applicable IFRS accounting standards.
The statement that is reasonable with regards to identifying arrangements within the scope of IFRS 15 is:
"IT 4 U Services Ltd. enters into a contract that is partially in the scope of IFRS 16 Leases and partially in the scope of IFRS 15 Revenue from Contracts with Customers. The separation and measurement requirements of IFRS 15 are applied first, thereafter IFRS 16 must be applied to the non-revenue components."
This statement reflects the principle of applying the most relevant standard to each component of a contract. According to IFRS 15, when a contract has both a lease and a revenue element, the standard requires entities to identify and account for each component separately. First, the requirements of IFRS 15 are applied to the revenue-generating aspects, and then IFRS 16 is applied to the lease components. The other two statements provided are not in line with IFRS 15's scope, as they either relate to scenarios that may or may not fall under the standard based on the nature of the contract and the transfer of control.
