If the promise to grant a license is distinct and that the license provides the customer the “right to access” the entity’s intellectual property, how is revenue recognized from the initial fee in the contract? in full when the initial services to setup the contract are substantially performed deferred and amortized over the license period in full when the customer obtains and starts using the license in full upon the signing of the contract
If the promise to grant a license is distinct and that the license provides the customer the “right to access” the entity’s intellectual property, how is revenue recognized from the initial fee in the contract? in full when the initial services to setup the contract are substantially performed deferred and amortized over the license period in full when the customer obtains and starts using the license in full upon the signing of the contract
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If the promise to grant a license is distinct and that the license provides the customer the “right to access” the entity’s intellectual property, how is revenue recognized from the initial fee in the contract?
in full when the initial services to setup the contract are substantially performed
deferred and amortized over the license period
in full when the customer obtains and starts using the license
in full upon the signing of the contract
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