Search within this section
Select a section below and enter your search term, or to search all click Revenue from contracts with customers, global edition
Favorited Content
9.2 Overview of the licenses guidance
Publication date: 31 Mar 2024
us Revenue guide
The revenue standard includes specific implementation guidance for accounting for licenses of intellectual property. The first step is to determine whether the license is distinct or combined with other goods or services. The revenue recognition pattern for distinct licenses is based on whether the license is a right to access IP (revenue recognized over time) or a right to use IP (revenue recognized at a point in time). For licenses that are bundled with other goods or services, management will apply judgment to assess the nature of the combined item and determine whether the combined performance obligation is satisfied at a point in time or over time.
Figure RR 9-1 illustrates the overall framework for accounting for licenses.
Figure RR 9-1
Accounting for licenses of intellectual property
Accounting for licenses of intellectual property
PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Link copied
