Which of the Following Is Not a Performance Obligation

By Da_Alivia62 09 May, 2022 Post a Comment

C A right of return. The third criterion includes two subcriteria that identify contractual obligations that are economically similar to service obligations.

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The contract price is allocated to each performance obligation in proportion to the obligations stand-alone selling prices.

. The points reduce the price of later purchases. Examples of such activities are setup of a manufacturing process or connecting a customer to a telecommunications network. Which of the following is not a performance obligation.

Say a contract with a distributor does not contain an explicit promise of free maintenance nor does the entity have a history of providing any such service to its customers that might indicate that free. Depending on the contract promised goods or services may include but are not limited to the following. Which of the following is NOT an indicator that the customer is.

There is only one performance obligation. Payment-means not only the delivery of money but also the performance in any other manner of an obligation. Customers can get 5 cash back for every 4100 spent on Eco-friendly products.

Such performance will result in inconvenience on the part of the debtor. An option for a customer to purchase goods under terms that are more advantageous than those enjoyed by other customers. The customer has legal title of the goods.

Customers accumulate points for every. Failing to correctly identify performance obligations may therefore result in the timing of revenue recognition not complying with the requirements of IFRS 15 and revenue being recognised in the incorrect reporting period. Confusion or Merger It is the meeting in one person of the qualities of creditor and debtor with respect to the same obligation.

The customer is legally obligated to pay for the goods or services. Customers get 5 cash back for every 100 spent on eco-friendly products. When IFRS uses the cost recovery method to account for a long-term contract Revenue typically is recognized in excess of costs incurred.

Which of the following is not a performance obligation. Such performance will result in economic loss on the part of the debtor. There is an intent to evade the normal fulfillment of the obligation and to cause damage.

The seller has received payment for performance completed to date. Which of the following is not an indicator that control has transferred. And the entity has an enforceable right to payment for performance completed to date.

A promise in a contract to provide a product or service to a customer. For contracts that include more than one separate performance obligation. If the productsservices are not highly dependent or interrelated with.

Which of the following is a separate performance obligation. Customers accumulate points for every dollar spent at Madelines Book Store. Which of the following is a separate performance obligation.

Condonation-It is the gratuitous abandonment by the creditor of his right. An extended warranty A Prepayment A Right of return An option for the customer to purchase additional products under the same terms enjoyed by other new customers 5. An option for a customer to purchase goods under terms that are more advantageous than those enjoyed by other customers.

The asset created by the seller does not have an. If the entity is required by law to provide a warranty the existence of that law indicates that the promised warranty is not a performance obligation because such requirements typically exist to protect customers from the risk of purchasing defective products. A good that the seller could sell separately and that is separately identifiable from other goods and services in the contract.

A good that the seller could sell separately and that is separately identifiable from other goods or services in the contract. A An extended warranty. A performance obligation is a promise to deliver a good or provide a service or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

Services that are not a performance obligation. There is only one performance obligation. Customers get one free item when they purchase two others.

It is an obligation which is based on positive law and gives right to enforce its performance a. When the time of performance is of the essence b. Contravention of the tenor of the obligation.

Distinct goods or services. Whether the warranty is required by law. Accounting questions and answers.

In which of the following is the option described NOT a performance obligation. The intentional non-performance of obligation. D An option for the customer to purchase additional products under the same terms E enjoyed by other new customers.

Under ASC Topic 606 for revenue recognition a performance obligation is considered satisfied when control over the goods and services is transferred to the customer. The points can be redeemed for books once certain levels are met. A right of return.

The customer is receiving and consuming the benefits of the sellers performance as the seller performs. A right of return. The entitys performance does not create an asset with an alternative use to the entity.

Activities that do not transfer a good or service to a customer are not a performance obligation even though they may be necessary to fulfil a contract IFRS 1525. Which of the following is demand necessary to make the debtor in delay in the performance of his obligation. A good or service that is promised to a customer is distinct if both of the following criteria are met.

It can be implicit or explicit. Which of the following is not a criterion for satisfying a performance obligation over time. This is not available when.

Which of the following is not a performance obligation. Such performance will result in unconscionable advantage to the debtor. Customers accumulate points for every dollar spent at a store.

If multiple productsservices are provided and they are interdependent and interrelated. When a single productservice is provided. Specific performance as a remedy will compel the obligor to perform his obligation.

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