Unexercised Customer Rights: A business may owe a Future Performance Obligation to a customer. Future Performance Obligations result in a corresponding right held by the customer to performance of the future obligation. The phrase Unexercised Customer Rights is an accounting phrase referring to such rights that have not been exercised by the customer. Over time, these rights may become stale or abandoned resulting in Breakage. Among other rules, Unexercised Customer Rights are subject to regulation by the GAAP, the IFRS, the SEC Guidance, and Unclaimed Property Statutes.
