Page 181 - F2 Integrated Workbook STUDENT 2019

Revenue from contracts with customers

1.7 Performance obligations satisfied at a point in time

If the conditions for a performance obligation to be satisfied over time are not met
(see section 1.8) then the performance obligation is deemed to be satisfied at a

point in time.

This is when the customer obtains control of the 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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