Question: What does this mean? is there another way of explaining it? Identify the specific performance obligation - the promise to provide a distinct good or
What does this mean? is there another way of explaining it?
Identify the specific performance obligation -the promise to provide a distinct good or service.Distinct = capable of valuation on a stand-alone basis AND separately identifiable or distinct within the context of the contract. Significant integration/customization/highly interdependent nature of several goods/services should be considered a single performance obligation. (e.g. building a house). Software license, installation and technical support for your regular customer = 3 distinct performance obligations.
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