Page 169 - FR Integrated Workbook 2018-19

Revenue

1.8 Performance obligation satisfied at a point in time

If a performance obligation is not satisfied over time then it is satisfied at a point in
time. This is normally when the customer obtains control of the promised asset.

An entity controls an asset if it can direct its use and obtain its remaining benefits.
Some indicators that control has passed to the customer include:

 the customer has physical possession of the asset

 the customer has the significant risks and rewards of ownership

 the customer has legal title

 the seller has a right to payment.

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