Which one of the following statements is reasonable with regards to identifying which arrangements are within the scope of IFRS 15?
ChargeIT Ltd. sells 30 of the laptops that their finance and administrative staff have used to an underprivileged school. Given ChargeIT Ltd. is not in the business of selling laptops the school is not ChargeIT Ltd.’s customer. Therefore, IFRS 15 is not relevant to the sale of the laptops to the school.
Amir buys a motor vehicle from ChargeIT Ltd. ChargeIT Ltd. includes a repurchasing clause. Depending on the specific type of repurchase agreement, and more specifically whether Amir obtains control of the motor vehicle or not, the purchase agreement may or may not be within the scope of IFRS 15
Bloom 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.
Complete 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 Complete Inc. incurs have to be assessed exclusively under other applicable IFRS accounting standards.
The statement "Bloom 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" is reasonable with regards to identifying which arrangements are within the scope of IFRS 15.
According to IFRS 15, revenue from contracts with customers is recognized when there is an exchange of goods or services for consideration. In the case of Bloom Ltd., if the contract involves both lease and non-lease components, the standard requires entities to separately identify and account for these components under the respective standards. Thus, the revenue-related aspects would be handled under IFRS 15, while the lease components would be accounted for under IFRS 16, Leases. This approach ensures that the financial reporting reflects the different economic characteristics of the contract components accurately.
