How does the computation of the financing component differ when delivery is before and after the$$ payment?

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Part $1$

A$.$

If the delivery occurs before$$ payment, the entity discounts the promised consideration amount back to the present$$ value, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the present value as interest revenue.

B$.$

If the delivery occurs before$$ payment, the entity discounts the promised consideration amount back to the present$$ value, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the present value as interest expense.

C$.$

If the delivery occurs before$$ payment, the entity determines the future value of the$$ payment, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the future value as interest revenue.

D$.$

If the delivery occurs before$$ payment, the entity determines the future value of the$$ payment, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the future value as interest expense.

Part $2$

A$.$

If the delivery occurs after the$$ payment, the entity determines the present value of the$$ payment, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the present value as interest expense.

B$.$

If the delivery occurs after the$$ payment, the entity determines the present value of the$$ payment, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the present value as interest revenue.

C$.$

If the delivery occurs after the$$ payment, the entity determines the future value of the$$ payment, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the future value as interest expense.

D$.$

If the delivery occurs after the$$ payment, the entity determines the future value of the$$ payment, using the same discount rate it would use if it entered into a separate financing arrangement. The entity ultimately recognizes the transaction price as sales or service revenue and records the difference between the total contract price and the future value as interest revenue.