paragraphs 24-25

BC87 Before an entity can identify its performance obligations in a contract with a customer, the entity would first need to identify all of the promised goods or services in that contract. The boards noted that in many cases, all of the promised goods or services in a contract might be identified explicitly in that contract. However, in other cases, promises to provide goods or services might be implied by the entity's customary business practices. The boards decided that such implied promises should be considered when determining the entity's performance obligations, if those practices create a valid expectation of the customer that the entity will transfer a good or service (for example, some when-and-if-available software upgrades). The boards also noted that the implied promises in the contract do not need to be enforceable by law. If the customer has a valid expectation, then the customer would view those promises as part of the negotiated exchange (ie goods or services that the customer expects to receive and for which it has paid). The boards noted that in the absence of these requirements developed by the boards, an entity might recognise all of the consideration in a contract as revenue even though the entity continues to have remaining (implicit) promises related to the contract with the customer.