SOCPA shares its comments on the Tentative Agenda Decision of IFRS Interpretations Committee (IFRS 1

SOCPA shares its comments on the Tentative Agenda Decision of IFRS Interpretations Committee (IFRS 15)

The IFRS Interpretations Committee has asked for comments on its tentative agenda decision regarding how to adapt an entity's transactions that involve the reselling of software to a third-party, and whether the entity in questing can be considered a principal or agent when it is obligated to provide advice to the end-user about the software and has the right to negotiate prices.
SOCPA concurred with the Committee's conclusion that the principles and requirements in IFRS Standards provide an adequate basis for a reseller to determine whether it is a principal or agent in such transactions.
By looking at the details and circumstances set out by the IFRS in its tentative agenda decision, SOCPA believes that it is inappropriate to consider the reselling entity responsible for inventory risks if the third party does not accept the software because it did not comply with the advice of the reselling entity since the reselling entity does not control the software before the sale or after the third party's rejection of the software.
SOCPA also found it inappropriate to direct the Inquirer to apply requirements in international standards that had not come into effect at the time of the IFRS Interpretations Committee decision.

SOCPA detailed remarks can be found by clicking here.