IFRS 15 License revenue for CRM software (term License)

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GIRISHV
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Joined: 11 Nov 2021, 08:17

IFRS 15 License revenue for CRM software (term License)

Post by GIRISHV »

How to recognise revenue for License cost for CRM software subscription if company provides software subscription to its customers as per various fixed term plans i.e 6 months, 12 months, 24 months e.tc. in this case customer will get access to software for the specified term and if he want to extent the access he need to buy plany again. will revenue be recognised at a point of time or over point of time i.e. at point of making invoice or over the period i.e 12 months or 24 months respectively. in that case is IFRS require to book pre-received income in balance sheet for remaining period.
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Marek Muc
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Re: IFRS 15 License revenue for CRM software (term License)

Post by Marek Muc »

seems to be a performance obligation satisfied over time, what is your assessment? is it SaaS?

https://ifrscommunity.com/knowledge-bas ... -over-time
https://ifrscommunity.com/knowledge-bas ... -property/

if the subscription is invoiced in advance, you'll recognise a contract liability:

https://ifrscommunity.com/knowledge-bas ... abilities/
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