For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
See ASC 606-10-55-50 and 55-51.
See ASC 606-10-25-3 and 25-4 as well as paragraphs BC50 and BC391 of FASB Accounting Standards Update (ASU) No. 2014-09, Revenue From Contracts With Customers. In addition, see TRG Memo No. 10, Contract Enforceability and Termination Clauses, and TRG Memo No. 48, Customer Options for Additional Goods and Services.
The contract does not give the customer a material right on an annual basis since the annual renewal provision is priced at the SSPs of the term license and PCS.