An entity enters into a contract to provide monthly payroll processing services to a customer for one year for a monthly retainer fee of P100,000.

Requirement: Identify if the performance obligation is satisfied over time or at a point in time. State how the entity recognizes revenue.

2. An entity, an owner and manager of health clubs, enters into a contract with a customer for one year of access to any of its health clubs. The customer has unlimited use of the health clubs and promises to pay P500 per month.

Requirement: Identify if the performance obligation is satisfied over time or at a point in time. State how the entity recognizes revenue.