**Accounting for Revenue Recognition in the Software Industry:**

Revenue recognition in the software industry is guided by specific principles to accurately reflect the economic substance of transactions. The key considerations include:

1. **Identification of Performance Obligations:** Determine distinct performance obligations within a software arrangement. These could include licenses, updates, and support services.

2. **Allocation of Transaction Price:** Allocate the transaction price to each performance obligation based on its standalone selling price. This ensures a fair representation of the value of each component.

3. **Recognition of Revenue:** Recognize revenue when (or as) the entity satisfies a performance obligation. For software, this often occurs over time as control is transferred, such as when the software is delivered or services are provided.

4. **Licensing and Subscription Models:** For software companies using licensing or subscription models, recognize revenue over the license or subscription period.

**Objective Type Question:**

In the software industry, when is revenue typically recognized for a performance obligation related to software delivery?

A) At the point of contract signing.

B) Over time as control is transferred.

C) At the end of the subscription period.

D) Upon completion of all performance obligations.

**Choose the correct option (A, B, C, or D) and provide a brief explanation for your choice.**