Which two parameters influence the satisfaction of performance obligations? (Choose two)

The satisfaction of a performance obligation is determined by how and when control of a promised good or service is transferred to a customer. The "Satisfaction Method" (C) defines whether this transfer occurs at a single point in time or over a period. The "Fulfillment Event Date" (A) is a key input for point-in-time satisfaction, as it typically marks the moment of transfer. Together, these parameters govern the timing and pattern of revenue recognition for an obligation.

B. Payment Due Date: This date relates to billing and cash collection, which are distinct from the performance obligation's satisfaction and revenue recognition timing under ASC 606/IFRS 15.

D. Supplier Invoice Date: This is an Accounts Payable concept related to procurement and has no bearing on the company's revenue-generating activities or performance obligations.

1. Oracle Fusion Cloud Financials

Using Revenue Management

23D

Chapter 4: Customer Contracts

Section: "Performance Obligation Satisfaction". The documentation states

"You can satisfy performance obligations at a point in time or over time... For performance obligations satisfied at a point in time

revenue is recognized when the satisfaction event occurs."

2. Oracle Fusion Cloud Financials

Implementing Revenue Management

23D

Chapter 3: Configure Revenue Management

Section: "Performance Obligation Identification Rules". This section details how satisfaction methods are assigned

highlighting their importance in the recognition process.