CERTYNEX IFRS ACADEMY

Bâtisol is building a clinic for a customer. The contract covers design, supply of materials, structural works and finishing works; Bâtisol is responsible for the whole and integrates these items to deliver the clinic specified in the contract. The management controller proposes to identify one performance obligation per item. What conclusion do you retain?

The proposal is correct: each item could be bought separately and is therefore a performance obligation.

Two performance obligations must be identified, design on the one hand and construction on the other, as they are performed by different teams.

The materials are a separate obligation, as they are delivered before the works; the rest forms a second obligation.

A single performance obligation: the clinic, of which design, materials and works are inputs.