Build Cedar's promise map

Cedar promises a standard sensor, routine installation, twelve monthly support periods, internal account setup, a defect-only warranty, and an option for one future calibration. Other vendors install the sensor, and it works with their service. Cedar provides no significant integration, modification, customization, or interdependence between the sensor and installation.

The sensor and installation each pass both tests in ASC 606-10-25-19. Each is capable of providing benefit with readily available resources, and each is separately identifiable in the contract context. They are separate performance obligations.

Each monthly support period is distinct, transfers over time, and uses the same time-based measure. The twelve periods form one series performance obligation under 25-14 through 25-15. Account setup transfers no benefit and is excluded under 25-17. The defect-only warranty is not sold separately and adds no service. Cedar routes it outside the performance-obligation map under 55-32.

The future calibration has a $100 standalone selling price. Similar customers can obtain an ordinary 10 percent discount, so the comparable discounted price is $90. Cedar's $60 option price gives this customer an incremental $30 discount. An 80 percent exercise likelihood produces a $24 estimated standalone selling price for the option: $30 multiplied by 80 percent. The option is a material-right performance obligation under 55-42 through 55-44.

The aggregate standalone selling price is $924: $900 for current obligations plus $24 for the option. Because the current transaction price is also $924, Cedar allocates $900 to the current obligations in aggregate and $24 to the option. The current obligations need a separate allocation using their individual standalone selling prices. The $24 is recognized when calibration transfers or the right expires.

The calculation checks the supplied discount, probability, and allocation. It does not identify promises, decide distinctness, establish a series, classify the warranty, or prove the option provides a material right.

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