Tucows 2015 Annual Report Download - page 85

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Wholesale
OpenSRS Domain Service
Cost of revenues for domain registrations represents the amortization of registry fees on a basis consistent with
the recognition of revenues from our customers, namely ratably over the term of provision of the service. Registry fees, the
primary component of cost of revenues, are paid in full when the domain is registered, and are initially recorded as prepaid
domain registry fees. This accounting treatment reasonably approximates a recognition pattern that corresponds with the
provision of the services during the period. Market development funds that do not meet the criteria for revenue recognition
under ASC 605-50 “Customer Payments and Incentives”, are reflected as cost of goods sold and are recognized as earned.
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