ASC 606 - Options for additional goods or services & material rights

We continue our revenue recognition series on implementation issues from FASB Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The new revenue recognition standard in ASU 2014-09 is primarily codified in FASB Accounting Standards Codification (FASB ASC) 606, with the same title. This report addresses how an entity should account for customer options to acquire additional goods or services, including contract renewal options and customer loyalty programs. When businesses enter into contracts with customers, they commonly offer them