Performance obligations are distinct if:

Question

Quizplus · Accepted Answer

All of the options mentioned (A, B, and C) are valid criteria for determining whether a performance obligation is distinct. A performance obligation is distinct if it can be identified separately from other promises in the contract and it provides a benefit to the customer on its own or together with other resources that are readily available. The fact that the seller regularly sells the good or service separately (A), the buyer could use the good or service on its own (B), or the buyer could use the good or service in combination with goods or services the buyer could obtain elsewhere (C) are all indicative of separate and distinct performance obligations.

Performance Obligations Are Distinct If