Does the work create an asset that has no alternative use, and does the entity have an enforceable right to payment (including profit) for work completed to date?

This criterion is met when the reporting entity is creating an asset that has no alternative use, and is entitled to compensation (including profit) for performance to date. This assessment should be made at contract inception, and should be based on whether the finished product (i.e., not the raw materials) has an alternative use. This assessment should consider contractual and practical limitations, such as the ability to sell the product to another customer.

ASC 606-10-25-27(b

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