What is the total potential variable consideration?

Estimates of variable consideration must be made and included in the transaction price, subject to the constraint (see below). Variable consideration may, or may not, be explicitly stated in a contract. If the variable consideration is not explicitly stated in the contract, then it may still be included in the transaction price (subject to the constraint, see below) if the customer has a valid expectation (e.g., derived from customary business practices, policies, statements made, industry norms etc.) that it will receive consideration less than the price stated in the contract. In addition, other factors indicating that it is the entities intention to accept less than the stated consideration shall be considered.

For variable consideration where the reporting entity is an agent (refer to Step 2) only include the net amount.

Renewal option: When a renewal option has been granted, include consideration from the estimated renewal period.

ASC 606-10-32-5 thru ASC 606-10-32-8, ASC 606-10-55-39

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