paragraphs B44-B47

BC396 Some respondents asked the boards to provide guidance on how to account for a customer's non-refundable prepayment for the right to receive goods or services in the future. Common examples include the purchase of gift cards and non-refundable tickets.

BC397 The boards noted that the requirements for the allocation of the transaction price to customer options implicitly explains how to account for situations in which the customer does not exercise all of its contractual rights to those goods or services (ie breakage). However, the boards decided to clarify how to account for breakage in situations in which there is only one performance obligation in the contract (ie how to account for breakage in customer options when there is no need to allocate the transaction price and, therefore, no need to determine a stand-alone selling price).