Is a discount a performance obligation?
Discounts that meet these criteria will be allocated to the appropriate performance obligations. Any remaining amount of discount from the collective standalone selling price is allocated using the residual approach to the remaining goods or services in the contract.Click to see full answer. Similarly, is a coupon a performance obligation?Customer Reward Points, Gift Cards, Coupons,…
Discounts that meet these criteria will be allocated to the appropriate performance obligations. Any remaining amount of discount from the collective standalone selling price is allocated using the residual approach to the remaining goods or services in the contract.Click to see full answer. Similarly, is a coupon a performance obligation?Customer Reward Points, Gift Cards, Coupons, and Other Loyalty Programs: Choices that allow customers to acquire supplementary goods or services for free or at a discount would likely represent a separate performance obligation if it gives the customer a material right that it otherwise would not have received withoutAlso, what is a performance obligation under what conditions does a performance obligation exist? A performance obligation is a promise in a contract to provide a product or service to a customer. This promise may be explicit, implicit, or possibly based on customary business practice. Keeping this in view, what are performance obligations? Identifying Performance Obligations. A performance obligation is a promise to deliver a good or provide a service (or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer).Is delivery a separate performance obligation?Shipping and handling can, however, become a separate performance obligation under the company’s election if it occurs after a customer obtains control of the goods (i.e. FOB shipping point). Revenue related to shipping and handling would be recognized as the shipping performance obligation is satisfied.
