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Learning Objective $06-07$ Determine the timing of revenue recognition with respect to licenses, franchises, and other common arrangements.

$[$The following information applies to the questions dispiayed below$]$

It the seller's activity over the icvise period is expected to affect the benefits the customer recelves from the imellectual property being licensed, as with symbolic IP$,$ the seller recognizes ravenve over the license period. Otherwse, the seller recognizes revonue at the point in time that the customer abtains accoss to the seller's intellectual property Franchises are an examplo of contracts that typically include licenses as well as outher performance obligations. Revenue for bill$-$and hold sales should be recognized when the seller transfers control of goock to the customec, even it the seller retains physical possession of the goods, and for consignment sales whon goods are delivered to the end customet. Revenue for gift cards should be recognized when the gif card is redeemed, explies, or viewed as broken.

Blil$-$and$-$Hold Arrangements