Free Service Recognition by the Customer

[gino_quillamor]

I am auditing a company "Company H" which has a service contract with an advertising company "Company U". The advertising company will provide media services to Company H amounting to 500,000. In addition, Company U will provide free research service valued at 200k at the option of Company H at any time.

FASB only provides guidance on the vendor side.


Question: Would Company H be able to recognize the 200k as an asset?