What constitutes a performance obligation?

A performance obligation is defined as a promise in a contract to transfer a distinct good or service to the customer. This notion is central to the revenue recognition principle under the International Financial Reporting Standards (IFRS), specifically IFRS 15, which deals with revenue from contracts with customers.

In this context, the correct choice emphasizes the essence of the performance obligation—it's about the commitment a seller makes to deliver a specified good or service as part of a contract. For instance, if a company sells a car, the promise to provide that car to the buyer is a performance obligation. This understanding is crucial because it determines when and how revenue can be recognized in financial statements.

The other options relate to aspects of transactions and business operations but do not directly define a performance obligation. A contractual agreement with suppliers pertains more to supply chain management, while the total amount receivable from a customer is a financial consideration that results from transactions but does not encapsulate the nature of the performance obligation itself. Similarly, obligations concerning customer refunds are related to customer satisfaction and return policies rather than the core commitment to provide goods or services under a contract.