11. Revenue Recognition You work for Tigers Door, a publicly traded movie production company. Tigers Door plans to release Star Fight, a childrens action movie, toward the beginning of the next period. To promote the lm, Tigers Door has arranged to include promotional toys in childrens meals sold by Cluckin Hen, a national fast food chain. The CEO wants to recognize licensing fee revenue from the fast food arrangement as it is realized, explaining that he sees no reason to delay such recognition. The CFO wants to delay recognition until the release of the lm, reasoning that toy revenue is a byproduct of the related lm, and recognition of that revenue should wait until release of the lm. Research the appropriate Codication and draft a memo explaining whether either the CEOs or the CFOs proposals are valid under U.S. GAAP and citing your references.