Material right
In accounting, material right means a customer option to buy additional goods or services at a discount it would not get without the contract — a renewal discount, loyalty points — accounted for as a separate performance obligation, deferring part of today's price.
- Layer
- Lexicon
- Defined in
- Lexicon
- Nearby
- 4
Authority
This definition follows ASC 606-10-55-42.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- marketing offer
- free gift
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
Terms this one depends on
Also in Revenue recognition
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.