Performance Obligations
[/pərˈfɔːrməns ɒˈbleɪɡeɪʃənz/]
nounpl: Performance Obligations
Obrigações de Desempenho
1. In accounting and contract law, the commitments a company makes to transfer goods or services to a customer in exchange for payment or consideration
The software company identified three performance obligations in its service contract: implementation, customization, and ongoing support.
A empresa de software identificou três obrigações de desempenho em seu contrato de serviço: implementação, customização e suporte contínuo.
2. Contractual promises to deliver specific products, services, or results within agreed-upon terms and conditions
Revenue is recognized as performance obligations are satisfied over the contract period.
A receita é reconhecida conforme as obrigações de desempenho são satisfeitas ao longo do período do contrato.
3. Under IFRS 15 and ASC 606 standards, the specific deliverables that must be completed to fulfill a customer contract
Management must assess whether each performance obligation is satisfied at a point in time or over time.
A administração deve avaliar se cada obrigação de desempenho é satisfeita em um ponto no tempo ou ao longo do tempo.
This is a technical accounting term that became standardized globally after the implementation of IFRS 15 (International Financial Reporting Standards) and ASC 606 (Accounting Standards Codification) in 2018. It is essential terminology in corporate finance, auditing, and contract management in both Brazil and the United States. The concept fundamentally changed how companies recognize revenue and is particularly relevant for SaaS, construction, and service-based industries.
Related Idioms & Phrases
satisfy performance obligations
identify performance obligations
recognize revenue as performance obligations are met
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