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Under Ind AS 115, a licence of INTELLECTUAL PROPERTY is treated as a "RIGHT TO ACCESS" (recognised OVER TIME) only when ALL of the following conditions are met:
A(i) The entity is required or reasonably expected to undertake activities that significantly affect the IP, (ii) the licence exposes the customer to the effects of those activities, AND (iii) the activities are not themselves a separate performance obligation
BThe licence period exceeds one year and the customer has unlimited use
CThe customer pays a per-unit royalty rather than a fixed fee
DThe entity retains legal title to the IP throughout the licence period
Answer & Solution
Correct answer: A. (i) The entity is required or reasonably expected to undertake activities that significantly affect the IP, (ii) the licence exposes the customer to the effects of those activities, AND (iii) the activities are not themselves a separate performance obligation
Para B58 — all three criteria must hold for over-time access treatment. Otherwise the licence is "right to use" recognised at a point in time. Examples: live sports team brand licence (over time, because games + competitive performance continually affect the brand); old film library licence (point in time, the asset is static).
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