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so with that weamp;#39;re going to position over to step two rich you want to take this one sure thanks Brian and in step two what youamp;#39;re going to do is identify the performance obligations in the contract that youamp;#39;ve identified now the overall objective of step two is to identify the units of account that youamp;#39;re then going to apply steps three to five two and conceptually that thatamp;#39;s the same as the objective of the multi element arrangement guidance that exists in current US GAAP the first step in identifying these performance obligations in the contract is to identify all the promised goods or services in the contract and then you determine whether those promise goods or services represent performance obligations and to do that youamp;#39;ve got to consider both explicit and implicit obligations and the explanations might be somewhat obvious when you got for example a stated obligation of transfer equipment to a customer but in contrast an implicit
