AASB 15:31, HBP must recognise revenue as they satisfy their performance obligation. For his reason, all revenue from hosting fees is not recognised until the period in which the service is used. Revenue received from contracts for HMM12 must be considered differently however. Unlike the previous version, all systems using HMM12 will be hosted on HBP's server. This in turn means there will be no hosting fees issued and there will only be revenue from icensing fees. Since there is an ongoing obligation for HBP to provide services to their clients over the lifetime of the contract, revenue must therefore be recognised rateably over he life of the contract. Licensing fees are treated similarly to the hosting fees issued for HMM11 systems. The guidelines of AASB 15 state that performance obligations satisfied over time only allow the revenue from these performance obligations to be recognised as the performance obligations are met. This type of revenue can be considered as deferred revenue