Does the option to acquire additional goods or services provide a material right to the customer that it would not receive without entering into that contract?

Options provided to customers may take many forms such as discounts on future goods or services, contract renewal options, sales incentive, customer loyalty awards and etc.

A discount that the customer would not receive without entering into the contract (i.e., if the discount exceeds the range that are typically given to that class of customer in a given market) would need to be evaluated to determine if it is “material”.

ASC 606-10-55-41 through 45

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