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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IFRS 15 – verge (b) june 13
Good afternoon Sir!!
in this part, the govt will not pay till any amount, apart from the 1m advance, till the contract ends.
this caused me to think that this shd be treated as a performance obligation provided AT a point in time rather than over time.
the Kaplan text has a similar example (Crawford) in which the contract is treated as AT a point in time.
am not sure how to decide.
can u please shed some light?
regards
If its not payable until that point in time, then the performance obligation is only completed as at that pointing time so recognition of the revenue must wait until that point in time
Ok?