Does the performance obligation meet any of the criteria or recognition of

Does the performance obligation meet any of the

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Does the performance obligation meet any of the criteria or recognition of revenue over time? According to IFRS 15, “ The performance obligations will be settled in the measure of progress towards completion, the measure of progress can be either based on the inputs (in the case of manufactured goods), or the output method.” 1 Furthermore, under FASB ASC 606-10-25-27 through 25-29, 25-36 through 25-37, and 55-5 through 55-10, there are three criterias described and if one of the criteria is met then, the performance obligation is satisfied and revenue is recognized over time. The three criterias are 2 : a. The customer receives and consumes the benefits provided by the entity’s 1 Retrieved from: IFRS (2015). Guide through IFRS . London: SAICA. pp. 763–824. ISBN 9780409121001 . 2 Financial Reporting Brief: Roadmap to Understanding the New Revenue Recognition Standards [PDF]. (2016, September). AICPA . uments/frc_brief_revenue_recognition.pd f
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performance as the entity performs (ASC 606-10-55-5 through 55-6). b. The entity’s performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced (ASC 606-10-55-7).
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  • Fall '09
  • Generally Accepted Accounting Principles, International Financial Reporting Standards, Financial Accounting Standards Board, Village Apartments

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