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

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

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