Revenue Recognition (Advanced)

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Question

What makes a promise a distinct performance obligation under ASC 606?

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Answer

The customer can benefit from it and it is separately identifiable.

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Question

How does a right-to-access IP license differ from a right-to-use license?

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Answer

Right-to-access is over time; right-to-use is point in time.

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Question

How is the transaction price allocated among performance obligations?

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Answer

By relative standalone selling price.

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