A contract may contain more than one performance obligation; for example, the sale of a machine, its installation and two years of maintenance may be separate performance obligations. The transaction price is allocated to them in proportion to their stand-alone selling prices, and revenue is recognised as each is satisfied.
Source: TFRS 15
Related terms
Revenue from contracts with customers (TFRS 15)The standard requiring revenue to be recognised to depict the transfer of goods or services to customers, at the amount the entity expects to be entitled to.RevenueIncome arising in the course of an entity's ordinary activities.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.
Last updated: October 22, 2026 · This definition is for general information only.