Question $1$

IFRS $15$ defines a performance obligation. Which one of the following statements

is correct?

Belfry Pty$.$ Ltd$.$ is commissioned to build a tower during the refurbishment

of a historic Chapel. Given the various goods and services involved in the

build are capable of being distinct the goods and services are distinct.

Pool Inc. builds a cement swimming pool for the Smit family, which

involves a significant service of integrating various goods and services.

Therefore, these goods and services are combined into one performance

obligation.

We Print Ltd$.$ regularly sells large format printers and ink cartridges

separately. The printer cannot function without the ink cartridges

therefore the sale of a printer with ink cartridges is one performance

obligation.

DC$-$AC Ltd$.$ regularly sells high performance battery chargers and

batteries separately. The battery charger cannot function without the

batteries therefore the battery charger and batteries are not separately

identifiable.