The choices are 80,747 21,187 20,000 and 0 The license provides Customer Xrights over Entity A's patentedprocesses. Customer X continuesto operate using its trade name andhas the discretion of developing anew product name for the productsit will produce using the patentedprocesses. The license does notexplicitly require Entity A toundertake activities that willsignificantly affect the intellectualproperty to which Customer X hasrights. Neither does Customer Xexpect that Entity A will undertakesuch activities. Entity A grants thelicense to Customer X onDecember 31, 20x1. How muchrevenue from the franchisecontract will Entity A recognize in20x1?On December 31, 20x1, Entity A enters into a contract with Customer X to transfer a license for a fixedfee of P100,000 payable as follows:20% payable upon signing of contract.80% due in four equal annual installments starting December 31, 20x2. The appropriate discountrate is 12%.•80,74721,18720,000

The question is related to revenue from the franchise contract will be recognized im 20x1. We will…

The license provides Customer X rights over Entity A's patented processes. Customer X continues to operate using its trade name and has the discretion of developing a new product name for the products it will produce using the patented processes. The license does not explicitly require Entity A to undertake activities that will significantly affect the intellectual property to which Customer X has rights Neither does Custo mer X

The license provides Customer X rights over Entity A's patented processes. Customer X continues to operate using its trade name and has the discretion of developing a new product name for the products it will produce using the patented processes. The license does not explicitly require Entity A to undertake activities that will significantly affect the intellectual property to which Customer X has rights Neither does Custo mer X

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 3RE

See similar textbooks

Similar questions

The legal protection that provides a company exclusive rights to produce and sell a unique product is known as which of the following? A. trademark B. copyright C. patent D. goodwill
Under PFRS 15, in which of the following instances will the revenue from contracts with customers be recognized at a point in time instead of over time? Group of answer choices When the entity’s performance creates or enhances an asset that the customer controls as the asset is created. When the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs. When the entity has transferred physical possession and legal title to the asset to the customer When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.
If the promise to grant a license is distinct and that the license provides the customer the “right to access” the entity’s intellectual property, how is revenue recognized from the initial fee in the contract? in full when the initial services to setup the contract are substantially performed deferred and amortized over the license period in full when the customer obtains and starts using the license in full upon the signing of the contract
Show how trademark ownership and free speech collide. How can these assertions be reconciled?
Which of the following is/are not capitalized as an intangible asset? Select one: a. Legal costs to defend a patent successfully and goodwill acquired when a company purchases another company. b. Costs of an internally developed patent and goodwill acquired when a company purchases another company. c. Costs of an internally developed patent and legal costs to defend a patent successfully. d. Goodwill acquired when a company purchases another company and costs to purchase a patent. e. Costs to purchase a patent and legal costs to defend a patent successfully.
Granting the exclusive right or privilege to another party for the performance of certain functions by the grantor or use of certain products and services is * A.copyright B.patent C.franchise D.goodwill
Recovery of impairment is recognized under IFRS for all the following except: a. patent held for sale. b. patent held for use. c. trademark. d. goodwill.
Which one of the following situation where a performance obligation is satisfied over time ? a- The entity's performance creates an asset that the customer controls as it is created b- The customer does not receive or consume the benefits provided by the entity's performance until the obligation is completely satisfied c- The entity does not have an enforceable right to payment for the performance that has been completed to date d- The entity's performance creates an asset which has an alternative use to the entity
If a trademark is developed internally, it cannot be recognized as an intangible asset on the statement of financial position. True or False
In which of the following instances does Entity A have control over Entity B? A. Entity A and Entity B both have unilateral rights in directing the relevant activities of Entity B. Entity A’s rights are considered protective rights. B. Entity A’s right to direct Entity B’s relevant activities is exercisable only upon the occurrence of a contingency. C. Entity A has the right to direct the relevant activities of Entity B but only in accordance with the directives of Entity C. D. Entity A holds a 30-day forward contract to buy a majority of Entity B’s voting rights. The contract can be cancelled in a shareholders meeting. A Shareholders meeting will be held in 3 months’ time.
1. Which is incorrect concerning the criterion of control by the enterprise of the intangible asset? a. The skill of employees arising out of the benefits of training costs can be recognized as intangible asset. b. The capacity of the enterprise to control the economic benefits from an intangible asset would normally stem from legal rights that are enforceable in a court of law. c. An enterprise controls an asset if the enterprise has the power to obtain the future economic benefits flowing from the underlying resource and also can restrict the access of others to those benefits.’ d. Market and technical knowledge may give rise to future economic benefits which can be controlled by the enterprise if the knowledge is protected by legal rights such as copyright. 2. An entity is performing an annual test of the impairment of goodwill for a cash-generating unit. It has determined that the fair value of the unit exceeds the carrying amount. Which statement is true concerning the test of…
Which one of the following statements correctly describes a characteristic of an entity purchase agreement? A)A business entity has the obligation or option to purchase another business entity when specified events occur. B)A business interest owner has the obligation or option to sell his or her interest to a non-affiliated third party when specified events occur. C)The business entity has the obligation or option to purchase every business owner's interest when specified events occur. D)Individual owners each have the obligation to sell or offer to sell his or her interest to the other business interest owners when specified events occur.