18. [Revenue recognition for nonrefundable and refundable fee payments; adapted from Frequently Asked Questions and An- swers: Staff Accounting Bullean 101] Gigondas.com provides customers with nonexclusive access to proprietary databases on its website for a nonrefundable annual fee. The company pro- vides customers an identification number and training in the use of the databases; post-training, the company incurs no incremen- tal costs to provide services to its customers.

a. Discuss the amount, timing, and justification for revenue recognition by Gigondas. Consider recognition: (i) On completion of the initial setup, or (i) Ratably over time as services are delivered.