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[Music] welcome to this video today we are going to talk about the repurchase agreement according to ifrs15 dont forget to subscribe to this channel and activate the notifications today we are going to solve a practical exercise related to the repurchase of assets according to ifrs15 this is the example of a company that signs three contracts with three different clients the characteristics of each contract are the following in the first contract with customer one a machine is sold for three million five hundred thousand with the right or obligation to repurchase the asset for two million nine hundred thousand the maximum term to exercise the repurchase option is one year from january 2018. the second contract has the same characteristics as contract one except that the repurchase price is three million seven hundred thousand and in the third contract we have that the repurchase price is two million nine hundred thousand and a fair value of four million unlike the previous contracts