Page 190 - F2 Integrated Workbook STUDENT 2019

Chapter 7

1.8 Performance obligations satisfied over time

If one of the following occurs:

 Customer simultaneously receives and consumes benefit e.g. Kaplan CIMA F2
courses, service contracts

 Creation or enhancement of a controlled asset e.g. building an asset at a
customer’s site

 the seller is not creating an asset with an alternative use and can demand
payment for its performance to-date e.g. construction of highly specialised asset
such as an oil rig or technical equipment

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