Médisud acquires the exclusive right to distribute a medical device in three countries. The contract ends on the earlier of two dates: the day on which cumulative sales of the device reach 50,000,000, or after 8 years. According to the business plan, the sales threshold would be reached in 4 to 5 years. The finance director wants to amortise the right in proportion to sales; the auditor points to the presumption against revenue-based methods. Write a judgement memo on the amortisation method.
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