Division Principal versus agent considerationsF1

United Kingdom Repealed

1. B34Division B34
2. B34ATo determine the nature of its promise (as described in paragraph B34), the entity shall:
3. B35Division B35
4. B35AWhen another party is involved in providing goods or services to a customer, an entity that is a principal obtains control of any one of the following:
5. B35BDivision B35B
6. B36Division B36
7. B37Indicators that an entity controls the specified good or service before it is transferred to the customer (and is therefore a principal (see paragraph B35)) include, but are not limited to, the following:
8. B37ADivision B37A
9. B38If another entity assumes the entity's performance obligations and contractual rights in the contract so that the entity is no longer obliged to satisfy the performance obligation to transfer the specified good or service to the customer (ie the entity is no longer acting as the principal), the entity shall not recognise revenue for that performance obligation. Instead, the entity shall evaluate whether to recognise revenue for satisfying a performance obligation to obtain a contract for the other party (ie whether the entity is acting as an agent).