Module I· Revenue Recognition (IFRS 15)Advanced
Question
How do you treat software license sales: right-to-use versus right-to-access?
Answer
Right-to-use licenses are often recognized upfront; right-to-access arrangements are recognized over time. Bundles must be split into separate performance obligations if distinct.
Deep diveShow more details
For software targets, bridge reported revenue into SaaS, maintenance, perpetual licenses, services, and one-off implementation. The mix drives ARR quality and valuation multiple.