Deloitte
Accounting Research Tool
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Chapter 1 — Overview

1.5 Step 2: Identify the Performance Obligations in the Contract (Chapter 5 of the Roadmap)

1.5 Step 2: Identify the Performance Obligations in the Contract (Chapter 5 of the Roadmap)

Step 2 requires an entity to identify the distinct goods or services promised in the contract. Distinct goods and services should be accounted for as separate units of account (this process is sometimes called “unbundling”). These distinct goods or services are referred to as “performance obligations.”