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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › revenue
Hi My Dear Tutor, I have a question.
is the performance obligation amount is the same as the agreed value of work completed and billed to date?
Also sometimes it shows
he agreed value of work completed and billed to date—x
less cash received ————————————————(x)
equal receivable
and sometimes even cash received has been given simultaneously work certified too but we deduct work certified amount?
performance obligation satised over time–x
less work certified ——————————(x)
equal receivable
Need explanation
thanks in advance.
Hi,
I think it would be easier to answer if you were to use a specific example from the text book or revision kit as the work complete is not necessarily the amount that has been billed.
As we complete the work we may periodically invoice/bill the customer, so the amounts will be different dependent upon what has been invoiced.
Throw over a specific example and I’ll help a bit more.
Thanks