On December 1, 2021, Dunphy Co. enters into a contract with a customer to grant license over a patented technology. The consideration in the contract is a fixed fee of P1,000,000, payable at contract inception. The license period is 4 years. During December 2021, Dunphy Co. incurs direct contract costs of P120,000 and indirect costs of P30,000. The license is transferred to the customer on January 2. 2022.
Requirements a. The right to use the entity's intellectual property exists at the point in time at which the license is granted. b. The right to access the entity's intellectual property exists throughout the license period.