One of the problems faced by the standard setters was the untangling of contracts which delivered…
One of the problems faced by the standard setters was the untangling of contracts which delivered multiple performance obligations. Identify a business which supplies multiple services in one contract and identify the individual service components. Then discuss the following
(a) whether the two service components have similar or dissimilar patterns of delivery;
(b) whether the components are sold by that business or other businesses as separate contracts or as ‘stand-alone’ services;
(c) the significance of the presence of other companies selling the services as individual services;
(d) the likely impact on the business if the two service components have to be recognised individually.