When multiple service-related performance obligations exist within a contract, they should be accounted for as a single performance obligation when
A) the performance obligations are distinct but interdependent.
B) each service is interrelated and interdependent.
C) the services are capable of being distinct.
D) the services are both capable of being distinct and distinct within the context of the contract.

Question

Quizplus · Accepted Answer

When multiple service-related performance obligations are both interrelated and interdependent, they should be accounted for as a single performance obligation. This is because their interdependency and interrelation mean they are not distinct within the context of the contract, thus they form a combined obligation that delivers the intended value to the customer.

When Multiple Service-Related Performance Obligations Exist Within a Contract, They