Question 1 IFRS 15 defines a performance obligation. Which one of the following statements s 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.

Question 1 IFRS 15 defines a performance obligation. Which one of the following statements s 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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