Revenue – ifrs 15 handbook

9.2 
Determining whether a licence is distinct
Assessing whether a licence is distinct may require significant judgement ...................................................................211
Customer’s option to purchase additional licences ........................................................................................................ 212
9.3 
Determining the nature of a distinct licence
Franchise licences generally provide a right to access IP ............................................................................................... 216
Only consider licensor’s activities that do not transfer a good or service to the customer ............................................. 216

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360 | Revenue – IFRS 15 handbook
Effect of different attributes of a licence on determining the nature of the entity’s promise .......................................... 217
Entity’s activities that significantly affect the IP ............................................................................................................. 217
Cost and effort to undertake activities are not the focus of the analysis ........................................................................ 218
9.4 
Timing and pattern of revenue recognition
Application of the general guidance on performance obligations satisfied at a point in time .......................................... 222
9.5 
Contractual restrictions and attributes of licences
No explicit guidance on distinguishing attributes of a licence from additional licences .................................................. 224
Distinguishing attributes of a single licence from additional promises to transfer licences ............................................ 224
Substantial break between periods during which a customer is able to use (or access) IP ............................................ 225