A) Identify the performance obligations of the contract.
B) Identify the contract with the customer.
C) Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods and services in the contract.
D) Allocate the transaction price to the performance obligations.
- A performance obligation is a promise to deliver a good or provide a service (or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer).
