Zircon Engineering Group Inc. (ZEG), a large contractor, enters into a contract to build a specialized...

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Zircon Engineering Group Inc. (ZEG), a large contractor, enters into a contract to build a specialized manufacturing facility for a customer. ZEG is responsible for the overall management of the project and identifies various goods and services to be provided, including engineering. site clearance. foundation, procurement, construction of the structure, piping and wiring. installation of equipment and finishing. ZEG and ZEG's competitors regularly sells many of these goods and services separately to other customers ZEG is listed on the TSX and management of the company decided to opt for early adoption of IFRS 15: Revemue from Contracts with Customer three years ago. Required: Explain how you arrive at your decision and the relevant factors you would consider in deciding whether there is more than one performance obligation in the contract that ZEG has entered into with the customer in this case. Zircon Engineering Group Inc. (ZEG), a large contractor, enters into a contract to build a specialized manufacturing facility for a customer. ZEG is responsible for the overall management of the project and identifies various goods and services to be provided, including engineering. site clearance. foundation, procurement, construction of the structure, piping and wiring. installation of equipment and finishing. ZEG and ZEG's competitors regularly sells many of these goods and services separately to other customers ZEG is listed on the TSX and management of the company decided to opt for early adoption of IFRS 15: Revemue from Contracts with Customer three years ago. Required: Explain how you arrive at your decision and the relevant factors you would consider in deciding whether there is more than one performance obligation in the contract that ZEG has entered into with the customer in this case.

Answer rating: 100% (QA)

Firstly ZEG Zircon Engineering group has listed on TSC that means i Strong performanc... View the full answer