As 9 revenue recognition problem

Royalties based or performance obligation based: When the performance company is recognising revenue, recognise it when the hall is booked and consideration is received by that company from the theatre owner. If that performance company has to wait until the tickets are sold by theatre, then recognise revenue after ticket sale. Identify the performance obligation, recognise revenue not after a performance obligation is satisfied. Yes, it is which ever is earlier. If it is royalties, revenue is recognised on a sale basis because percentage of ticket sales revenue is allocated to transaction price. It again depends upon the contract agreed upon.