Recognition of revenue under IFRS 15

Discussion in 'Technical Queries' started by Obelix, Mar 10, 2018.

  1. Obelix


    Mar 10, 2018
    Likes Received:
    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.
    Obelix, Mar 10, 2018
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