What characteristics make a good or service a separate performance obligation?
Answer to relevant QuestionsWhen does an option granted with the sale of a good or service give rise to a separate performance obligation in the contract?Sarjit Systems sold software to a customer for $90,000. As part of the contract, Sarjit promises to provide “free” technical support over the following six months. Sarjit sells the same software without technical support ...On January 1, Seneca Asset Management enters into a contract with a client to provide fund management services for one year. The client is required to pay a fixed amount of $100,000 at the end of each quarter, plus 10 ...On December 31, 2013, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature on December 31, 2043. Interest is payable annually on each December 31, beginning in 2014. ...On January 1, 2013, The Barrett Company purchased merchandise from a supplier. Payment was a noninterestbearing note requiring five annual payments of $20,000 on each December 31 beginning on December 31, 2013, and a ...
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