Question

Which of the following is not true?

a. License fees are recognized over time for any license that is viewed as providing a right of access.
b. Licensing fees are recognized as revenue over time for any licenses for which the seller expects its ongoing activities to affect the benefits that the buyer receives from intellectual property.
c. License fees are recognized as revenue at a point in time if the buyer expects that the seller's future activities will not affect the benefit the buyer derives from the intellectual property.
d. Licensing fees always are recognized as revenue at the end of the license period, when the seller has completed its performance obligation to provide access to its intellectual property.

Answer 1

The statement d is not true. Licensing fees are recognized as revenue over time for licenses that provide a right of access and for licenses where the seller's ongoing activities affect the buyer's benefits from intellectual property.

Step-by-step explanation:

The statement d. Licensing fees always are recognized as revenue at the end of the license period, when the seller has completed its performance obligation to provide access to its intellectual property, is not true. License fees are recognized as revenue over time for licenses that are viewed as providing a right of access and for licenses for which the seller expects its ongoing activities to affect the benefits that the buyer receives from intellectual property. On the other hand, license fees are recognized as revenue at a point in time if the buyer expects that the seller's future activities will not affect the benefit the buyer derives from the intellectual property.