If a licensee benefits from the seller's activity over the license period with respect to the licensed intellectual property, revenue should be recognized over time.

Question

Quizplus · Accepted Answer

Revenue recognition over time is appropriate when a customer receives benefits from the seller's performance over the contract period. In this case, the licensee benefits from the licensed intellectual property over the license period, and therefore revenue should be recognized over time.

If a Licensee Benefits from the Seller's Activity Over the License