Paragraph 3 indicates that those discounts are not within the scope of SOP 97-2. Incremental to the range of discounts typically given in comparable transactions.
Judgment is required when assessing whether an incremental discount is significant.
The provisions of footnote 3 to paragraph 3 of SOP 97-2 should not be applied to an option within a software arrangement that allows the customer to purchase additional copies of products licensed by and delivered to the customer under the same arrangement. In that case, revenue should be recognized as the rights to additional copies are purchased, based on the price per copy as stated in the arrangement. Additional copies of delivered software are not considered an undelivered element. Paragraph 21 of SOP 97-2 says that duplication of software is considered incidental to an arrangement, and the delivery criterion is met upon the delivery of the first copy or product master.