QUESTION 15 A vendor (a construction company) enters into a contract with a customer to supply a new building. Control over the completed building will pass to the customer in two years’ time (the vendor’s performance obligation will be satisfied at a point in time). The contract contains two payment options. Either the customer can pay $ 5 million in two years’ time when it obtains control of the building, or the customer can pay $ 4 million on inception of the contract. The customer decides to pay $ 4 million on inception. State the implication on revenue recognition.