Perpetual software license + post-contract support

License at point-in-time (functional IP) + PCS over time + professional services

Status

SPEC ONLY

Why this pattern exists

Legacy on-prem software model. Customer buys perpetual license + annual maintenance + optional implementation. Functional IP determination drives recognition pattern.

03 / 07When this applies

Trigger conditions

1Perpetual or term license

2Functional IP (most software) per ASU 2016-10

3PCS / maintenance over time

4Specified upgrade rights

04 / 07Authority

Authoritative paragraphs

Every codification reference below is verified against the FASB Codification structure or Big-4 public guidance. No fabricated cites.

ASC ASC 606-10-55-58

Functional vs symbolic IP

ASC ASU 2016-10

License classification clarifications

ASC ASC 606-10-25-19

Distinct test for license vs PCS

05 / 07What the platform does

End-to-end behavior

1License recognized at point-in-time when access provided (functional IP)
2PCS / maintenance recognized over time ratably
3Specified upgrade rights tested for distinctness — may collapse with license
4VSOE legacy bridge available for transition

06 / 07Watchouts

What auditors flag

Common mistakes preparers make on this pattern. The platform's confidence routing surfaces these for reviewer ratification before sign-off.

Treating PCS as a separate sale when not distinct from license

Failing to identify symbolic IP licenses (less common — recognized over time)

Previous scenario

Publication subscriptions · digital + print

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Professional services · T&M vs fixed-price vs milestones