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    Question

    V Ltd. sells Customer C a water purifier and

    maintenance service for 2 years for a total consideration of Rs 20,000. As per IND AS 115, determine how many performance obligations does the entity have?
    A Two performance obligations Correct Answer Incorrect Answer
    B One performance obligation Correct Answer Incorrect Answer
    C Three performance obligation Correct Answer Incorrect Answer
    D More than three Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Water purifier and Maintenance service of the water purifier are two separate performance obligation, revenue will be recognized as and when each performance obligation will be completed.

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