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Chapter 4
1.3 Step 2: Identify the performance obligations
IFRS 15 says that the distinct performance obligations within a contract must be
identified.
Performance obligations are promises to transfer distinct goods or
services to a customer.
Contract
Performance Performance
obligation 1 obligation 2
Example 2
An entity enters into a contract with a customer to sell a car, which includes
one year’s free maintenance.
The sale of the car and the provision of maintenance services are separate
performance obligations.
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