Financial Reporting and Analysis Q84

84Two analysts are discussing the converged standards issues by IASB and FASB in May 2014. Their comments are as follow:
Analyst 1: Revenue recognition requires the application of a five-step process. The process includes identification of the contract with the customer and identification of performance obligations in the contract.
Analyst 2: The performance obligations within a contract represent promises to transfer distinct goods or services.

Option : C
Explanation : Both analysts are correct. Analyst 1 has identified the first two steps in the process. Analyst 2 correctly elaborates on the second step.

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