Question

If a software hosted by company A is licensed to customer B, the license fee gave the client access to the software, the hosting, and any future improvement releases during the contract period. How many separate performance obligation in this contract?  

Answer 1

A company would recognize revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer. Which is when the customer obtains control of that good or service. Control of an asset refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from the asset.
A performance obligation may be satisfied:
(1) at a point in time (typically for promises to transfer goods to a customer)
(2) over time (typically for promises to transfer services to a customer)

Performance obligations satisfied over time :

An entity transfers control of a good or service over time and, therefore, satisfies a performance.