The case would be dealt with in accordance with rules set out under IFRS 15: Revenue from Contracts with Customers.

IFRS 15 requires entities to apply a five-step model to recognize revenue in a manner that depicts the transfer of promised goods or services to the customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. More specifically, in this scenario, it is important to determine when the promised data access would transfer to the clients as this shows when a performance obligation is satisfied by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). A performance obligation may be satisfied at a point in time (typically for promises to transfer goods to a customer) or over time (typically for promises to transfer services to a customer).

In the first situation, where Accra Investors Help (AIH) sold access to a real-time database, AIH has granted the right to access its intellectual property as it exists at the time of access. Further, the content of that intellectual property is constantly updated. That allows the customer to simultaneously receive and consume benefits from AIH’s performance of the obligation.

Therefore, AIH recognizes the revenue on that contract over time; i.e. GH¢1.2 million (GH¢3.6 million divided by 3 years). The remaining GH¢2.4 million would be presented as half current liability and half non-current liability.

In the second situation, where AIH sold historical data, it provided the customer with intellectual property as of a point in time. In this case, access over time does not seem to be a key aspect of the performance obligation, and AIH’s performance obligation is satisfied at the time of sale.

Thus, AIH recognizes GH¢800,000 of revenue at the time of the sale (1 June 2022).

(Any 4 valid points for explanations for 4 marks)