a contract should be treated as having multiple performance obligations if,

Contract expense accounting – a performance approach, is the topic of Financial Accounting Standards Board’s Opinion No. 18 (FASB). The opinion states that “a contract should be treated as having multiple performance obligations if, and only if, each obligation meets the criteria for recognition on its own.” This means that unless an agreement has been reached with another party to share in one or more of its responsibilities, it does not have any other parties involved in it. these, work of term their during points particular at specifically them provide can they before contractors from time additional require may components some though even so; occur then will payments which after- times and dates delivery as such milestones specific through provided be must) services orsgood (ables deliver identifiable all, identified are they how and contract a under obligations performance multiple or single a is there whether considering when that requires also opinion The. it in involved parties other any have not does it, responsibilities its of more or one in share to party another with reached been has agreement an unless means This. own its on recognition for criteria the meets obligation each if only and if obligations performance multiple having as treated be should contract a thatB statesAS F, article theIn providing for responsible party single no is there where cases someIn “: property tangible as classified be always not may that services and goods of types different many involve and complex often so are contracts howB notesAS F –Furthermore . time over together billed were they if or separatelyicedo inv was component each how on depend will which, time in point their at together them from revenue recognize can entity an then) fulfilled been have theywhen ( contract that under obligations all to happens this When. accordingly recorded and obligation performance complete a as own its on accounted be should it then agreement original the of terms the with accordance in completed fully is parts separate these of one If. components distinct multiple has contract a when, example for, includesThis