First Published: IFRS Boutique
Date: 16 February 2018
By: Chris Ragkavas, BA, MA, FCCA, CGMA
StudySmart management consultant, senior finance & accounting tutor, IFRS technical expert
Performance obligations are contractual commitments that the reporting entity must comply with, in order to be entitled to consideration. Even if a good or service is agreed to be given/rendered free of charge, consideration must be allocated to it. We will deal with this last point, in another article.
How are POs classified? POs are either:
A good or service (or a bundle of goods or services) that is distinct;
A series of distinct goods or services that are substantially the sameand have the same pattern of transfer to the customer.
A good or service is distinct, if:
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