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Hi i dont get what is it mean by these 2
– entity’s performance creates or enhances an asset that the customer controls as the asset is created
– entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.
This is the last stage of revenue recognition when entity satisfies performance obligation over time.What is it mean by those 2 ?
Is it possible if u give me some simple examples in this world ?
Thank you !
Hi,
The first point is when the entity is constructing and asset over a period of time for the customer, so we’re building a head office/factory for a client.
The second point is just a standard provision of service over time, so say a repair/maintenance obligation for a customer.
Thanks
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