Example taken from an article written by Lie Dharma Putra for multiple-element agreement would be:ABC Company sells an mp3 participant, which it calls the Liepod.
Additionally, depending on how the accumulations for the services are measured, an entity could recognize the full income in the understanding before the entity has satisfied all of its responsibilities. International Accounting Standards Explained. So revenue is one of the most important indicators of accounting.
At the same time, on the contrary, recognition criteria can be applied simultaneously to two or more operations when their commercial effect cannot be determined without considering the operations as a whole.
A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. Deloitte, Rendering of services When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the sale of services is based on the level of completion of the transaction at the balance sheet date.
The decrease of the comparison of gross across entities is due to the absence of a clear difference between goods and services.