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Re: BigE1960 post# 73627

Monday, 05/20/2019 10:05:17 AM

Monday, May 20, 2019 10:05:17 AM

Post# of 104561
Disagree, check out new accounting standards for IP licenses. I didn't know this accounting difference existed until I just found it a few minutes ago and started reading it.

https://www.ey.com/publication/vwluassetsdld/technicalline_04373-171us_revrec_technology_20july2017/$file/technicalline_04373-171us_revrec_technology_20july2017.pdf?OpenElement

Page 8:

Revenue generated from sales- and usage-based royalties from licenses of IP are recognized at the later of when (1) the sale or usage occurs or (2) the performance obligation to which some or all of the sales- or usage-based royalty has been allocated is satisfied (in whole or in part).



I don't think they can book anything for the second $500,000 yet. They clearly can't count the first as revenue based on the above sentence which is why the accounts receivable is the first $500,000.

I'm sure you'll dig into this, but unless I missed something, I believe I'm correct.

Also, under your premist, there is no recognition of the first $500,000. So how do they book the second $500,000 when the first which was received isn't booked?
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