Which of the following is not a criterion that indicates a performance obligation is satisfied over time?
A) The customer receives control of a delivered product which has an expected useful life of many years.
B) The seller's performance does not create an asset with an alternative use to the seller and the seller has a right to payment for performance completed to date.
C) The customer simultaneously receives and consumes the benefits of the seller's performance as the seller performs.
D) The seller's performance creates or enhances an asset that the customer controls as the asset is created or enhanced.

Question

Quizplus · Accepted Answer

A) The criterion of a customer receiving control of a delivered product with an expected useful life of many years does not indicate that a performance obligation is satisfied over time. This scenario typically indicates a performance obligation satisfied at a point in time. The other options (B, C, D) are criteria that indicate a performance obligation is satisfied over time according to accounting standards.

Which of the Following Is Not a Criterion That Indicates