Deloitte
Accounting Research Tool
...
Chapter 4 — Foreign Currency Transactions

4.16 Sales of Future Revenues

4.16 Sales of Future Revenues

ASC 470-10
Sales of Future Revenues or Various Other Measures of Income
25-1 An entity receives cash from an investor and agrees to pay to the investor for a defined period a specified percentage or amount of the revenue or of a measure of income (for example, gross margin, operating income, or pretax income) of a particular product line, business segment, trademark, patent, or contractual right. It is assumed that immediate income recognition is not appropriate due to the facts and circumstances. The payment to the investor and the future revenue or income on which the payment is based may be denominated in a foreign currency.