What indicators suggest that a performance obligation has been satisfied at a single point in time?

Solutions

Expert Solution

Performance obligations transfer:

The time of control transferred to buyers is the point of performance obligation satisfied. It will occur after the delivery of goods and service.

The following five criterions confirm the control of goods and service is transferred from seller to buyer.

• Obligation to pay the seller

• Title of the assets

• Possession of the assets

• Risk and rewards of the ownership

• Conformation of the assets transfer

A manager should evaluate the five criterions and take a decision regarding the transfer of the control.

Junaid answered 2 years ago

Next > < Previous

Related Solutions

1. Revenue is usually recognized for accounting purposes when a performance obligation is satisfied. In some...

1. Revenue is usually recognized for accounting purposes when a performance obligation is satisfied. In some situation, revenue is recognized over time as the fair value of assets and liabilities. In other situation, however, accountants have developed guidelines for recognizing revenue at the point of sale. a. Explain and justify, why revenue is often recognized at time of sale. b. Explain in what situations it would be appropiate to recognize revenue over time.

Revenue generally should be recognized at the time of cash collection. when the performance obligation is...

Revenue generally should be recognized at the time of cash collection. when the performance obligation is satisfied. when realized. at the end of production.

What are key performance indicators (KPIs) and what role do they play in driving performance improvement?...

What are key performance indicators (KPIs) and what role do they play in driving performance improvement? Share an example of a KPI. Describe what it is used to measure and/or improve.

Nationwide, football fans since 2010 on average have been satisfied with their team's draft performance 45%...

Nationwide, football fans since 2010 on average have been satisfied with their team's draft performance 45% of the time. Matt LaFleur wants to know if Packers fans really are less satisfied than the league average. Using the 540 Packers fans sampled in the previous question, LaFleur tests the hypothesis H0 : p = 0.45, Ha : p < 0.45. The P-value is:

What performance measures are identified in The National Database of Nursing Quality Indicators?

What types of performance discharge a contractual obligation? Under the UCC, what is the difference between...

What types of performance discharge a contractual obligation? Under the UCC, what is the difference between cancellation and termination of a contract? What is an anticipatory breach, and under what circumstances can a party claim it?

1) What is performance obligation and how is it related to revenue recognition? 2) What does...

1) What is performance obligation and how is it related to revenue recognition? 2) What does cash conversion cycle measure?

What are Key Performance Indicators (KPIs)? What are some important KPIs that might be important for...

What are Key Performance Indicators (KPIs)? What are some important KPIs that might be important for social media evaluation?

What are the details of stock offerings has Amazon had? What has been the performance of...

What are the details of stock offerings has Amazon had? What has been the performance of the stock in the past 10 years? What is the dividend and dividend percentage? Calculate the value of the common stock of the firm.

A Namibia firm has an obligation to pay £1,000,000 in 3 months’ time and has exported...

A Namibia firm has an obligation to pay £1,000,000 in 3 months’ time and has exported goods worth US$500,000, payment of which is also expected in 3 months’ time. It is the end of the year, when the exchange rate between the Namibian dollar and the US dollar (NamD/USD) is 16.975 and the exchange rate between the Namibian dollar and the British pound (Nam/Pound) is 19.485. The exchange rate outlook is very blurred as it is believed that the exchange...

Subjects