A performance obligation is a contractual promise with a customer to deliver a good or perform a service.

Name: A performance obligation is a contractual promise with a customer to deliver a good or perform a service.
Brand: Quizplus
Rating: 4.9 (32 reviews)

Question

Quizplus · Accepted Answer

A performance obligation in the context of accounting and financial reporting is indeed a contractual commitment to transfer a distinct good or service (or a bundle of goods or services) to a customer.

A Performance Obligation Is a Contractual Promise with a Customer