AASB 15 Revenue from Contracts with Customers B52-B63B: For licences of intellectual property, decide whether the promise is a right to access (over time) or a right to use (point in time), and recognise sales- or usage-based royalties only when the later of sale or satisfaction occurs

What does B52-B63B require?

A licence that is not distinct from the contract's other goods or services is combined with them into one performance obligation. For a distinct licence the entity determines the nature of its promise: a right of access to the intellectual property in whatever form it takes across the licence period, satisfied over time, exists when the entity carries out, or is expected to carry out, activities that significantly change the intellectual property, the rights expose the customer to the effects of those activities, and the activities do not themselves transfer a good or service; otherwise the licence is a right to use the intellectual property as it exists when granted, satisfied at the point the customer can use and benefit from it, and never before the licence period begins or a required code or key is provided. Restrictions of time, geography or use and guarantees of a valid patent do not change the nature of the promise. Revenue from a royalty tied to sales or usage, promised for an intellectual property licence (or a licence that is the predominant item) is recognised only when the later of the underlying sale or usage and the satisfaction of the obligation occurs.