Sbr (int/UK) Strategic Business Reporting

S BR  (IN T & U K) :  S TRA TE G IC  BU SINES S  RE POR TI N G 

8 

K A P LAN   P UB LI S HI NG 

At the beginning of a contract an entity must assess whether it satisfies each 

performance obligation over-time or at a point in time.  

(1 mark) 

A performance obligation is satisfied over time if: 

• 

The customer simultaneously receives and consumes the benefits of the 

entity’s performance as the entity performs, or 

• 

The entity is creating or enhancing an asset that is controlled by the customer 

as it is created or enhanced, or 

• 

The entity’s performance creates an asset with no alternative use to the entity, 

and the entity can demand payment for performance completed to-date.