Performance obligation
A performance obligation is a promise in a customer contract to transfer a distinct good or service, or a qualifying series of distinct items. First identify the promised goods and services, then determine which are distinct. Revenue is allocated to the obligations and recognised when or as the customer obtains control of each promised item. Payment dates and satisfaction dates can differ.
Worked example
A separately identifiable maintenance service in a contract can be a performance obligation.
Common mistake
Identify distinct promises and recognise revenue when or as each is satisfied, not merely when cash arrives.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| ACCA | SBR | Direct | September 2026–June 2027 |
| CIMA | F2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |