obligations, the allocation of the transaction price to each performance obligation shall be equal to the amount allocated to each performance obligation for purposes of including such item in revenue in the applicable financial statement of the taxpayer. (5) Group of entities For purposes of paragraph (1), if the financial results of a taxpayer are reported on the applicable financial statement (as defined in paragraph (3)) for a group of entities, such statement may be treated as the applicable financial statement of the taxpayer. . (b) Treatment of advance payments Section 451 , as amended by subsection (a), is amended by redesignating subsections (c) through (j) as subsections (d) through (k), respectively, and by inserting after subsection (b) the following new subsection: (c) Treatment of advance payments (1) In general A taxpayer which computes taxable income under the accrual method of accounting, and receives any advance payment during the taxable year, shall— (A) except as provided in subparagraph (B), include such advance payment in gross income for such taxable year, or (B) if the taxpayer elects the application of this subparagraph with respect to the category of advance payments to which such advance payment belongs, the taxpayer shall— (i) to the extent that any portion of such advance payment is required under subsection (b) to be included in gross income in the taxable year in which such payment is received, so include such portion, and (ii) include the remaining portion of such advance payment in gross income in the taxable year following the taxable year in which such payment is received. (2) Election (A) In general Except as otherwise provided in this paragraph, the election under paragraph (1)(B) shall be made at such time, in such form and manner, and with respect to such categories of advance payments, as the Secretary may provide. (B) Period to which election applies An election under paragraph (1)(B) shall be effective for the taxable year with respect to which it is first made and for