1. Does the performance obligation meet any of the criteria or recognition of
revenue over time?
An entity will recognize revenue when (or as) it satisfies a performance obligation
by transferring a promised good or service to a customer, which is when control is
passed, either over time or at a point in time..
An entity recognizes revenue over time if one of the below criteria is met:
1) The customer simultaneously receives and consumes the benefit provided by the
entity as the entity performs
2) The entity’s performance creates or enhances an asset that the customer controls as
the asset is created or enhanced
3) The entity’s performance does not create an asset with an alternative use to the
entity and the entity has an enforceable right to payment for the performance
completed to date
The building will be transferred to Rodeo only when the construction process is
completed. It can not simultaneously receive and consume the benefit provided by
