If a license gives a customer access to functional intellectual property, revenue always should be recognized at the point in time that the customer can begin using the intellectual property.

Question

Quizplus · Accepted Answer

Revenue recognition for licenses of intellectual property depends on whether the license provides a right to use the IP as it exists at a point in time (recognized at the point in time) or if it provides access to IP that will be updated over time (recognized over the period the customer has access to the IP).

If a License Gives a Customer Access to Functional Intellectual