Special Limited is in the business of producing and distributing special screenings on various topics.
On 1 January 2014, Special granted a license to TV 101 for $250 000 in relation to a special titled "The Big Ice". The following conditions were attached to the license:
TV 101 was allowed to show the special once only within the 2014 calendar year.
TV 101 could choose the date and time of the screening.
The documentary was delivered to TV 101 on 1 January 2014. TV 101 screened the documentary on 30 March 2014. The $250 000 fee was paid to Special on 30 March 2014.
Special should recognise revenue as follows:

Question

Quizplus · Accepted Answer

The revenue should be recognized on the date of the screening, which in this case is 30 March 2014, when TV 101 paid the $250,000 fee to Special. The license agreement allowed for only one screening in the 2014 calendar year, and TV 101 chose to screen it on 30 March 2014. Therefore, the revenue should be recognized on that date.

Special Limited Is in the Business of Producing and Distributing