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Under Ind AS 115, a "performance obligation" in a contract is:
AOnly physical goods deliverable in tangible form
BOnly those services that span a period exceeding twelve months
CA promise to transfer a distinct good/service (or bundle), or a series of distinct goods/services that are substantially the same and have the same pattern of transfer
DAny good or service explicitly listed in the written contract
Answer & Solution
Correct answer: C. A promise to transfer a distinct good/service (or bundle), or a series of distinct goods/services that are substantially the same and have the same pattern of transfer
Para 22 defines a performance obligation as either (a) a distinct good/service (or bundle) or (b) a series of distinct goods/services that are substantially the same and have the same pattern of transfer (the "series provision"). Tangibility or duration are not the criteria, and PO can include implicit promises arising from customary business practices.
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