Identify whether the performance obligation and the revenue in 20x5, assuming The performance obligation are interdependent, and The performance obligations are not interdependent
Armel Gamboa Jonas licenses customer relationship software to Malen Cezar Hedges Inc. for 3 years. In addition to providing the software, Armel Gamboa Jonas promises to perform consulting services over the life of the license to maintain operability within Malen Cezar Hedges’ computer system. The total transaction price is P200,000. Based on stand-alone values, Armel Gamboa Jonas estimates the consulting services have a value of P75,000 and the software license has a value of P125,000. Upon installation of the software on July 1, 20x5, Malen Cezar Hedges pay P100,000; the contract balance is due on December 31, 20x5.
Required: Identify whether the performance obligation and the revenue in 20x5, assuming
- The performance obligation are interdependent, and
- The performance obligations are not interdependent
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