QUESTION 23 A vendor (a music record label) licenses a specified recording of a Beethoven symphony to a customer for a period of two years. The customer has the right to use the recording in all types of advertising campaigns (including television, radio and online media) in a specified country. The contract is non-cancellable and the customer is required to pay $ 10,000 per month. The nature of the vendor’s promise to its customer is to provide access to the recording in its condition as at the start of the licence period. Consequently, the customer’s rights to the intellectual property are static and the vendor’s performance obligation is satisfied at a point in time. The vendor recognizes all of the revenue (adjusted for a significant financing component, if appropriate) at the point at which the customer is able to use, and obtain substantially all the benefits, of the licensed intellectual property. Discuss the implication.