The statement that accurately reflects the concept of a performance obligation according to IFRS 15 is:
Belfry Pty. Ltd. is commissioned to build a tower during the refurbishment of a historic Chapel. Given the various goods and services involved in the build are capable of being distinct, the goods and services are distinct.
In the context of IFRS 15, a performance obligation is a promise to transfer goods or services to a customer that is distinct within the context of the contract.
- We Print Ltd.'s sale of a printer with ink cartridges is not an example of a single performance obligation, as the ink cartridges are essential for the functioning of the printer, but they are typically sold separately and can be distinct obligations.
DC-AC Ltd.'s battery charger and batteries are also typically sold separately, but since the charger cannot function without the batteries, this might suggest that they should be accounted for as separate performance obligations, as long as they are typically sold or transferred separately and each is capable of being distinct.
Pool Inc.'s construction of a cement swimming pool for the Smit family involves a significant service of integrating various goods and services, potentially indicating that these goods and services are not distinct and could be considered one performance obligation under IFRS 15. However, the integration of goods and services may still result in multiple performance obligations if each component (like the design, excavation, construction, etc.) can be separately identified and priced.
