Question
Flag Service Inc. enters into a contract to design and build a bridge connecting a busy downtown core to a shoreline across the way that
Flag Service Inc. enters into a contract to design and build a bridge connecting a busy downtown core to a shoreline across the way that is home to many commuters. Service Inc. does not sell its design and construction services separately. Service Inc. is also responsible for overall management of the project and identifies various goods and services to be provided, including engineering, site clearance, foundation, procurement, and construction of the structure. Under IFRS, how many performance obligation(s) does the contract have?
One performance obligation for all activities specified in the contract.
Two performance obligations: designing the bridge, and building the bridge.
Three performance obligations: designing the bridge, site preparation, and building the bridge.
Three performance obligations: designing the bridge, management of the bridge construction, and building the bridge. None of the above.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started