BC84 IFRS 15 distinguishes between obligations to provide goods or services to a customer and other obligations by defining those obligations to provide goods or services as performance obligations. The notion of a performance obligation is similar to the notions of deliverables, components or elements of a contract in previous revenue Standards. Although the notion of a performance obligation is implicit in previous revenue Standards, the term 'performance obligation' has not been defined previously.
BC85 The boards' objective in developing the definition of a performance obligation was to ensure that entities appropriately identify the unit of account for the goods and services promised in a contract with a customer. The boards decided that because the revenue recognition model is an allocated transaction price model, identifying a meaningful unit of account that depicts the goods and services in the contract is fundamental for the purpose of recognising revenue on a basis
…