Dear all,
I have an issue that I would like to ask you to state your views:
Contract for a license of intellectual property. Total contract value is 30m for 5 years (evenly distributed 6m p.a.). However the seller also must provide updates to customer for 7 years after the sell-in period of 5 years. In other words the whole contract period is 12 years. Price is fixed for the total period. How should seller recognise revenue in the books?
Thanks and regards.
I have an issue that I would like to ask you to state your views:
Contract for a license of intellectual property. Total contract value is 30m for 5 years (evenly distributed 6m p.a.). However the seller also must provide updates to customer for 7 years after the sell-in period of 5 years. In other words the whole contract period is 12 years. Price is fixed for the total period. How should seller recognise revenue in the books?
Thanks and regards.