Question

Ismail Construction enters into a contract to design and build a hospital. Ismail is responsible for the overall management of the project and identifies various goods and services to be provided, including engineering, site clearance, foundation, procurement, construction of the structure, piping and wiring, installation of equipment, and finishing. Does Ismail have a single performance obligation to the customer in this revenue arrangement? Explain.

Answer 1

Answer and Explanation:

Indeed, Ismail have a solitary performance presentation commitment to the client in the mentioned arrangement of revenue.

Despite the fact that the exhibitions of different fields is in the execution of the agreement, he goes into an agreement to plan and assemble an emergency clinic which incorporates the need of building, site leeway, establishment, acquisition, development of the structure, channeling and wiring, and establishment of hardware.