The second step is to identify the performance obligations in the contract. A performance obligation is simply the promise in a contract to transfer specified goods or services to the customer. In doing this, if there is more than one good or service that is promised to the customer in a contract, the entity must account for each as a separate obligation. This is so when the good or service is either distinct or is a series of distinct goods or services that are for the most part the
The second step is to identify the performance obligations in the contract. A performance obligation is simply the promise in a contract to transfer specified goods or services to the customer. In doing this, if there is more than one good or service that is promised to the customer in a contract, the entity must account for each as a separate obligation. This is so when the good or service is either distinct or is a series of distinct goods or services that are for the most part the