# ASC 220-40-50: Income Statement—Reporting Comprehensive Income — Expense Disaggregation Disclosures — 50 Disclosure

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/220/40/#50-disclosure)

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## ASC 220-40-50: 50 Disclosure

[Read section](https://asc.understandingaccounting.org/asc/220/40/#50-disclosure)

SEC content: no

#### Overall Guidance

##### [220-40-50-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-1)

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Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The objective of the disclosure requirements in this Section is to provide disaggregated information about a [public business entity’s](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") expenses to help investors:

1.  a
    
    Better understand the entity’s performance
    
2.  b
    
    Better assess the entity’s prospects for future cash flows
    
3.  c
    
    Compare an entity’s performance over time and with that of other entities.
    

In addition, the disclosure requirements are intended to provide information about the relative proportion and trends of each category of expense identified in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) in relation to the corresponding income statement expense caption amount in order to meet the overall objective described above. An entity shall consider the level of detail necessary to satisfy the disclosure objective and specific requirements of this Subtopic. An entity may use estimates or other methods that produce a reasonable approximation of the amounts required to be disclosed by this Subtopic.

##### [220-40-50-2](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-2)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)This Section includes the following (all of which apply only to expenses in continuing operations):

1.  a
    
    Required expense categories to be disclosed, identification of relevant expense captions, and practical expedients (see paragraphs
    
    [220-40-50-6 through 50-20](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6)
    
    )
    
2.  b
    
    Tabular integration of other disclosure requirements (see paragraphs
    
    [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)
    
    )
    
3.  c
    
    Disclosure of expense reimbursements included in a relevant expense caption (see paragraphs
    
    [220-40-50-26 through 50-29](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26)
    
    )
    
4.  d
    
    An amount and qualitative description of the composition of other items remaining in relevant expense captions (see paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30))
    
5.  e
    
    Disclosure of the disaggregation of relevant expense captions that contain amounts within the scope of Topic 330 on inventory (see paragraphs
    
    [220-40-50-31 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31)
    
    )
    
6.  f
    
    Requirements related to selling expenses (see paragraphs
    
    [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35)
    
    ).

##### [220-40-50-3](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-3)

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Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The requirements in this Section apply to interim and annual reporting periods, except for the requirement to disclose how an entity defines selling expenses (see paragraph [220-40-50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-36)), which only applies to annual reporting periods (or interim reporting periods if the definition is changed). An entity is required to include the disclosures listed in paragraphs

[220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)

in a tabular format disclosure for interim reporting purposes only if the disclosure requirements referenced in those paragraphs are required in interim reporting periods by the guidance in other Topics.

##### [220-40-50-4](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-4)

Pending content: yes

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Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The disclosure requirements in this Section shall be applied consistently for all periods presented. If an entity changes its display of the disclosure requirements in the current reporting period as a result of a change in the election of an alternative or a change in a definition of a disclosure in this Section, the entity shall:

1.  a
    
    Disclose the reason for the change in the period of the change (in the interim and annual reporting periods affected by the change)
    
2.  b
    
    Recast the prior periods presented for comparative purposes, except for the requirements in paragraphs
    
    [220-40-50-22 through 50-23](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22)
    
    , unless it is impracticable to do so. If it is impracticable to do so, the entity shall disclose that fact and explain why it is impracticable to recast prior periods.
    

Changes described in this paragraph do not represent a change in accounting principle in accordance with Topic 250 on accounting changes and error corrections.

##### [220-40-50-5](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-5)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)

Some entities provide condensed statements for interim reporting periods and, therefore, present different expense captions on their income statements at annual and interim reporting periods. For an entity that provides condensed statements for interim reporting periods, the guidance in paragraph [220-40-50-4](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-4) is applicable in instances in which an entity changes its display of the disclosure requirements for the current interim reporting period compared with the prior interim reporting period or in instances in which the entity changes its display of the disclosure requirements for the current annual reporting period compared with the prior annual reporting period.

##### [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For interim and annual reporting periods, an entity shall disaggregate, in a tabular format disclosure in the notes to financial statements, all relevant expense captions (see paragraphs

[220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12)

for guidance on identifying relevant expense captions) presented on the face of the income statement in continuing operations into the following expense categories:

1.  a
    
    Purchases of [inventory](https://asc.understandingaccounting.org/glossary/i/#inventory "The aggregate of those items of tangible personal property that have any of the following characteristics: Held for sale in the ordinary course of business In process of production for such sale To be currently consumed in the production of goods or services to be available for sale. The term inventory embraces goods awaiting sale (the merchandise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies). This definition of inventories excludes long-term assets subject to depreciation accounting, or goods which, when put into use, will be so classified. The fact that a depreciable asset is retired from regular use and held for sale does not indicate that the item should be classified as part of the inventory. Raw materials and supplies purchased for production may be used or consumed for the construction of long-term assets or other purposes not related to production, but the fact that inventory items representing a small portion of the total may not be absorbed ultimately in the production process does not require separate classification. By trade practice, operating materials and supplies of certain types of entities such as oil producers are usually treated as inventory.") (see paragraph [220-40-50-7](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-7))
    
2.  b
    
    [Employee compensation](https://asc.understandingaccounting.org/glossary/e/#employee-compensation "(P) December 16, 2026; (N) December 16, 2026220-40-65-1All forms of cash consideration (including deferred cash compensation), share-based payment arrangements, medical care benefits, pension benefits, postretirement benefits, and nonretirement postemployment benefits (including special or contractual termination benefits) given by an entity in exchange for service rendered by employees or for the termination of employment. This includes compensation cost arising from wages, salaries, profit-sharing, bonuses, one-time employee termination benefits, other postemployment benefits, employee stock ownership plans, employee share purchase plans, defined contribution plans, multiemployer plans, and any other compensation cost recognized in accordance with the guidance in Topic 710 on compensation, Topic 712 on nonretirement postemployment benefits, Topic 715 on retirement benefits, and Topic 718 on stock compensation. This also includes compulsory payments paid to the general government that confer entitlement to receive a (contingent) future social benefit, such as unemployment insurance benefits and supplements; accident, injury, and sickness benefits; old-age, disability, and survivors’ pensions; and family allowances, reimbursements for medical and hospital expenses, or provision of hospital or medical services. For defined benefit plans within the scope of Topic 715, employee compensation includes only the service cost component of net periodic pension cost and the service cost component of net periodic postretirement benefit cost.") (disclosing separately any [one-time employee termination benefits](https://asc.understandingaccounting.org/glossary/o/#one-time-employee-termination-benefits "Benefits provided to current employees that are involuntarily terminated under the terms of a one-time benefit arrangement."), if applicable, see paragraph [220-40-50-21(e)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21))
    
3.  c
    
    Depreciation (for separate requirement to disclose depreciation expense for the period in total, see paragraph [360-10-50-1(a)](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-1))
    
4.  d
    
    [Intangible asset](https://asc.understandingaccounting.org/glossary/i/#intangible-assets "Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)") amortization (for separate requirement to disclose intangible asset amortization expense for the period in total, see paragraph [350-30-50-2(a)(2)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-2))
    
5.  e
    
    Depreciation, depletion, and amortization of capitalized acquisition, exploration, and development costs recognized as part of [oil- and gas-producing activities](https://asc.understandingaccounting.org/glossary/o/#oil-and-gas-producing-activities "Paragraph 932-10-15-2A defines the term oil- and gas-producing activities.") (see Subtopic 932-360 on extractive activities—oil and gas—property, plant, and equipment) or other amounts of depletion expense (see paragraph [220-40-50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-11)).

##### [220-40-50-7](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-7)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)Purchases of inventory shall include only amounts within the scope of Topic 330 or within the scope of an Industry Subtopic in Topic 330 (collectively, Topic 330) but shall not include (regardless of the basis selected in paragraph [220-40-50-31](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31)) the amounts recognized from any of the following:

1.  a
    
    A [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.") within the scope of Subtopic 805-10 on business combinations
    
2.  b
    
    A [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") formation within the scope of Subtopic 805-60 on joint venture formations
    
3.  c
    
    The initial consolidation of a [variable interest entity](https://asc.understandingaccounting.org/glossary/v/#variable-interest-entity "A legal entity subject to consolidation according to the provisions of the Variable Interest Entities Subsections of Subtopic 810-10.") that is not a business combination within the scope of Subtopic 810-10 on consolidation.
    

Amounts excluded by this paragraph shall be included in the other items category, unless separately disclosed voluntarily (see paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30)). See paragraphs

[220-40-50-31 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31)

for additional requirements for the disaggregation of relevant expense captions that contain amounts within the scope of Topic 330.

##### [220-40-50-8](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-8)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)When applying the guidance in paragraph [220-40-50-6(b)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), an entity may elect, but is not required, to include amounts attributable to other transactions entered into for the benefit of employees (for example, the provision of subsidized goods or services) in employee compensation. For interim and annual reporting periods, an entity that includes other transactions entered into for the benefit of employees as part of employee compensation shall disclose both that those transactions have been included and a description of those transactions.

##### [220-40-50-9](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-9)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The amounts provided for depreciation in accordance with paragraph [220-40-50-6(c)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) and intangible asset amortization in accordance with paragraph [220-40-50-6(d)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) shall be consistent with the classification of amounts used to satisfy the disclosure requirements for the total depreciation expense and total intangible asset amortization expense disclosures in paragraphs [360-10-50-1(a)](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-1) and [350-30-50-2(a)(2)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-2), respectively, and with the classification of amounts described in paragraph [220-40-50-10](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10).

##### [220-40-50-10](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)Amortization of a [right-of-use asset](https://asc.understandingaccounting.org/glossary/r/#right-of-use-asset "An asset that represents a lessee's right to use an underlying asset for the lease term.") for a [finance lease](https://asc.understandingaccounting.org/glossary/f/#finance-lease "From the perspective of a lessee, a lease that meets one or more of the criteria in paragraph 842-10-25-2.") recognized in accordance with paragraphs

[842-20-35-7 through 35-8](https://asc.understandingaccounting.org/asc/842/20/#842-20-35-7)

and amortization of leasehold improvements recognized in accordance with paragraphs

[842-20-35-12 through 35-13](https://asc.understandingaccounting.org/asc/842/20/#842-20-35-12)

shall be disclosed in a manner consistent with how an entity presents depreciation or amortization of similar assets (see paragraph [842-20-45-4(a)](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-4)). That is, amounts shall be included as part of either depreciation in paragraph [220-40-50-6(c)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) or intangible asset amortization in paragraph [220-40-50-6(d)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6).

##### [220-40-50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-11)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)In determining the amounts to be disclosed in paragraph [220-40-50-6(e)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), an entity also shall include amounts for depletion expense that are not recognized as part of oil- and gas-producing activities in accordance with Subtopic 932-360 (such as depletion expense recognized by entities within the scope of Topic 930 on mining).

##### [220-40-50-12](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12)

Pending content: yes

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For the purposes of applying the guidance in this Subtopic, a relevant expense caption is an expense caption presented on the face of the income statement in continuing operations that contains any of the expenses listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) (including those described in paragraphs

[220-40-50-10 through 50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10)

). A relevant expense caption that consists entirely of one expense category listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) is not subject to the requirements of this Subtopic. For example, if depreciation is a relevant expense caption on the income statement and the caption consists entirely of depreciation in accordance with paragraph [220-40-50-6(c)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), no additional disclosure is required because the information in the income statement satisfies the disclosure requirements in this Subtopic. In contrast, if the relevant expense caption comprises depreciation and intangible asset amortization, an entity would be required to separately disclose depreciation and intangible asset amortization in accordance with paragraph [220-40-50-6(c) through (d)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), respectively. Furthermore, in accordance with paragraph [220-40-50-31](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31), when a relevant expense caption contains amounts within the scope of Topic 330, an entity shall apply its chosen basis for disaggregating amounts within the scope of Topic 330 to the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6).

##### [220-40-50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-13)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:e396c60ee28968e216929b598e1b4a4c12d196e76632dc6a95543c44ff7344fa

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)An entity’s share of earnings or losses from investments accounted for under the equity method in accordance with paragraph [323-10-45-1](https://asc.understandingaccounting.org/asc/323/10/#323-10-45-1) is not a relevant expense caption for purposes of applying the guidance in this Subtopic. Additionally, an entity is not required to further disaggregate its disclosure of summarized information of results of operations of investments accounted for under the equity method in accordance with paragraph [323-10-50-3(c)](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3).

##### [220-40-50-14](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-14)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:94bfb7ec993a1a890c5ba0135df62f5ce274809b5584af2e013f769072d07d32

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)With the exception of inventory disclosed under the cost-incurred basis described in paragraph [220-40-50-31(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31), an entity is not required to further disaggregate costs capitalized as an asset, even if the costs capitalized include the categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). In addition, when an expense amount relates to the derecognition of an asset other than inventory, an entity shall apply the guidance in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) based on the nature of the expense at the time that it is recognized in the income statement.

##### [220-40-50-15](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-15)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:51449a89cd92217d0f09d8ea3ea3a4e2c73e1f0d963289f6491588cae3935540

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)To illustrate the application of the requirements in paragraph [220-40-50-14](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-14), an entity is not required to further disaggregate amortization of costs to fulfill a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with a [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") into the categories required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) (for example, employee compensation). As another example, an entity that capitalizes employee compensation when self-constructing new property, plant, and equipment for internal use is not required to further disaggregate the resulting depreciation into the categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6).

##### [220-40-50-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-16)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:6f31764f2f2ba0ce915c9b00df40934bc04c3426ecc7381b4989901196c0b9ee

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)An entity is not required to disaggregate an expense amount into the required expense categories as part of the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) if all of the following criteria are met:

1.  a
    
    The expense relates to an obligation that will be settled in the future and there is uncertainty about the timing of settlement.
    
2.  b
    
    The expense relates to an obligation that is based on an estimate of a future expenditure.
    
3.  c
    
    The expense is not entirely made up of one required expense category (for example, employee compensation).
    

An expense that meets the above criteria may be required to be disclosed in the same tabular format if it is listed in paragraphs

[220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)

.

##### [220-40-50-17](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-17)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:571472bc21b7a78b2d2c0a7b579a1a027edb74fe9455315b5dce51c927c48e02

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)Examples of expenses that meet the criteria in paragraph [220-40-50-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-16) include provision for losses on contracts (see Subtopic 605-35 on revenue recognition—construction-type and production-type contracts), claims and claims adjustment expenses, and asset retirement obligations, among others.

##### [220-40-50-18](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-18)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:cb48edeb146827d2aa732083bb1d160e78e14d65293f3e842b91c19c68997fe0

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)Examples of expenses that do not meet the criteria in paragraph [220-40-50-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-16) include expense amounts related to accruals for liabilities to pay for goods or services that have been received or supplied but have not been paid or invoiced, including amounts due to employees (for example, amounts relating to accrued bonuses, vacation pay, or pension obligations).

##### [220-40-50-19](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-19)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:add874c69b2f3df05ce7ead0aecd729cbfd2df1d97ac4b30d806cb836fb91508

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)As a practical expedient, when substantially all of an entity’s income statement expense caption comprises purchases of inventory as described in paragraph [220-40-50-7](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-7), the entity is not required to apply the guidance in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) to that caption. An entity that applies this practical expedient shall disclose a qualitative description of the composition of the expense caption in interim and annual reporting periods.

##### [220-40-50-20](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-20)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:c0b9b078a8b59b09d2ef07fb4c7c78205df0f3eda591ca84af8f2ea56d512e2f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)As a practical expedient for determining what amounts are classified as employee compensation in paragraph [220-40-50-6(b)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), an entity that presents an expense caption for salaries and employee benefits (or a similarly named caption) on the face of its income statement to comply with the requirements in SEC Regulation S-X Rule 210.9-04, Statements of Comprehensive Income (see paragraph [942-220-S99-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-1)), may use the amounts classified as salaries and employee benefits in accordance with SEC Regulation S-X Rule 210.9-04 rather than in accordance with the definition of employee compensation included in this Subtopic.

##### [220-40-50-21](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:a03646ee62b2826232d8b7d05f59f2eb013c968c8ac7d913af967f9fecd146ae

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following expenses, gains, and losses and the amount recognized in each relevant expense caption (see paragraphs

[220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12)

for guidance on identifying relevant expense captions):

1.  a
    
    The amount of research and development assets acquired in a transaction other than a business combination and written off (see paragraph [350-30-50-1(c)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1))
    
2.  b
    
    Impairment loss recognized related to an intangible asset (see paragraph [350-30-50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3))
    
3.  c
    
    [Impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") loss of long-lived assets classified as held and used (see paragraph [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2))
    
4.  d
    
    Gain or loss recognized in accordance with paragraphs
    
    [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37)
    
    and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) for long-lived assets classified as held for sale or disposed of (see paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3))
    
5.  e
    
    Each major type of cost associated with an exit or disposal activity (for example, one-time employee termination benefits, contract termination costs, and other associated costs) (see paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1))
    
6.  f
    
    Components of net benefit cost recognized (other than service cost amounts included within employee compensation) (see paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1))
    
7.  g
    
    Bargain purchase gain recognized in a business combination (see paragraph [805-30-50-1(f)](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1))
    
8.  h
    
    Any gain or loss recognized upon the deconsolidation of a [subsidiary](https://asc.understandingaccounting.org/glossary/s/#subsidiary "An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)") or the derecognition of a group of assets in accordance with paragraph [810-10-40-3A](https://asc.understandingaccounting.org/asc/810/10/#810-10-40-3A) (see paragraph [810-10-50-1B](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1B))
    
9.  i
    
    Gains and losses on [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") (and nonderivative instruments that are designated and qualify as hedging instruments in accordance with paragraphs [815-20-25-58](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-58) and [815-20-25-66](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-66)) and related hedged items (see paragraph [815-10-50-4A](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4A))
    
10.  j
     
     Amortization of [license agreements](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material (see paragraph [920-350-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2))
     
11.  k
     
     Impairment of license agreements for program material (see paragraph [920-350-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4))
     
12.  l
     
     Amortization of [film costs](https://asc.understandingaccounting.org/glossary/f/#film-costs "Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.") (see paragraph [926-20-50-4A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4A))
     
13.  m
     
     Impairment of film costs (see paragraph [926-20-50-4C](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4C)).
     

These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic.

Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance:

[832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following expenses, gains, and losses and the amount recognized in each relevant expense caption (see paragraphs

[220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12)

for guidance on identifying relevant expense captions):

1.  a
    
    The amount of research and development assets acquired in a transaction other than a business combination and written off (see paragraph [350-30-50-1(c)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1))
    
2.  b
    
    Impairment loss recognized related to an intangible asset (see paragraph [350-30-50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3))
    
3.  c
    
    [Impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") loss of long-lived assets classified as held and used (see paragraph [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2))
    
4.  d
    
    Gain or loss recognized in accordance with paragraphs
    
    [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37)
    
    and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) for long-lived assets classified as held for sale or disposed of (see paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3))
    
5.  e
    
    Each major type of cost associated with an exit or disposal activity (for example, one-time employee termination benefits, contract termination costs, and other associated costs) (see paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1))
    
6.  f
    
    Components of net benefit cost recognized (other than service cost amounts included within employee compensation) (see paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1))
    
7.  g
    
    Bargain purchase gain recognized in a business combination (see paragraph [805-30-50-1(f)](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1))
    
8.  h
    
    Any gain or loss recognized upon the deconsolidation of a [subsidiary](https://asc.understandingaccounting.org/glossary/s/#subsidiary "An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)") or the derecognition of a group of assets in accordance with paragraph [810-10-40-3A](https://asc.understandingaccounting.org/asc/810/10/#810-10-40-3A) (see paragraph [810-10-50-1B](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1B))
    
9.  i
    
    Gains and losses on [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") (and nonderivative instruments that are designated and qualify as hedging instruments in accordance with paragraphs [815-20-25-58](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-58) and [815-20-25-66](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-66)) and related hedged items (see paragraph [815-10-50-4A](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4A))
    
10.  j
     
     Amortization of [license agreements](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material (see paragraph [920-350-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2))
     
11.  k
     
     Impairment of license agreements for program material (see paragraph [920-350-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4))
     
12.  l
     
     Amortization of [film costs](https://asc.understandingaccounting.org/glossary/f/#film-costs "Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.") (see paragraph [926-20-50-4A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4A))
     
13.  m
     
     Impairment of film costs (see paragraph [926-20-50-4C](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4C))
     
14.  n
     
     The total amount of a [government grant](https://asc.understandingaccounting.org/glossary/g/#government-grant "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A transfer of a monetary asset or a tangible nonmonetary asset, other than in an exchange transaction (including an exchange transaction that may be at a significant discount to fair value), from a government to an entity except for a not-for-profit entity and an employee benefit plan within the scope of Topics 960, 962, and 965 on plan accounting.") recognized during the reporting period and presented as a deduction from the related expense (see paragraphs [832-10-45-1(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-1), [832-10-45-3(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-3), and [832-10-50-3A](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3A)).
     

These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic.

Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:

[818-10-65-1](https://asc.understandingaccounting.org/asc/818/10/#818-10-65-1)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following expenses, gains, and losses and the amount recognized in each relevant expense caption (see paragraphs

[220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12)

for guidance on identifying relevant expense captions):

1.  a
    
    The amount of research and development assets acquired in a transaction other than a business combination and written off (see paragraph [350-30-50-1(c)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1))
    
2.  b
    
    Impairment loss recognized related to an intangible asset (see paragraph [350-30-50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3))
    
3.  c
    
    [Impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") loss of long-lived assets classified as held and used (see paragraph [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2))
    
4.  d
    
    Gain or loss recognized in accordance with paragraphs
    
    [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37)
    
    and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) for long-lived assets classified as held for sale or disposed of (see paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3))
    
5.  e
    
    Each major type of cost associated with an exit or disposal activity (for example, one-time employee termination benefits, contract termination costs, and other associated costs) (see paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1))
    
6.  f
    
    Components of net benefit cost recognized (other than service cost amounts included within employee compensation) (see paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1))
    
7.  g
    
    Bargain purchase gain recognized in a business combination (see paragraph [805-30-50-1(f)](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1))
    
8.  h
    
    Any gain or loss recognized upon the deconsolidation of a [subsidiary](https://asc.understandingaccounting.org/glossary/s/#subsidiary "An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)") or the derecognition of a group of assets in accordance with paragraph [810-10-40-3A](https://asc.understandingaccounting.org/asc/810/10/#810-10-40-3A) (see paragraph [810-10-50-1B](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1B))
    
9.  i
    
    Gains and losses on [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") (and nonderivative instruments that are designated and qualify as hedging instruments in accordance with paragraphs [815-20-25-58](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-58) and [815-20-25-66](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-66)) and related hedged items (see paragraph [815-10-50-4A](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4A))
    
10.  j
     
     Amortization of [license agreements](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material (see paragraph [920-350-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2))
     
11.  k
     
     Impairment of license agreements for program material (see paragraph [920-350-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4))
     
12.  l
     
     Amortization of [film costs](https://asc.understandingaccounting.org/glossary/f/#film-costs "Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.") (see paragraph [926-20-50-4A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4A))
     
13.  m
     
     Impairment of film costs (see paragraph [926-20-50-4C](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4C))
     
14.  n
     
     The total amount of a [government grant](https://asc.understandingaccounting.org/glossary/g/#government-grant "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A transfer of a monetary asset or a tangible nonmonetary asset, other than in an exchange transaction (including an exchange transaction that may be at a significant discount to fair value), from a government to an entity except for a not-for-profit entity and an employee benefit plan within the scope of Topics 960, 962, and 965 on plan accounting.") recognized during the reporting period and presented as a deduction from the related expense (see paragraphs [832-10-45-1(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-1), [832-10-45-3(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-3), and [832-10-50-3A](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3A))
     
15.  o
     
     Total expense recognized for [environmental credits](https://asc.understandingaccounting.org/glossary/e/#environmental-credit "(P) December 16, 2027; (N) December 16, 2028818-10-65-1An enforceable right that is acquired, internally generated, granted by a regulatory agency or its designee(s), or received in a nonreciprocal transfer that is not a grant from a regulator or its designee(s) that meets all of the following criteria:Lacks physical substance and is not a financial asset.Is represented to prevent, control, reduce, or remove emissions or other pollution.Is, or previously was, separately transferable in an exchange transaction. If an item is no longer separately transferable in an exchange transaction, an entity must be able to use that item to satisfy an environmental credit obligation to meet this criterion.Is not an income tax credit that may be used to settle an entity’s income tax liability, regardless of whether the entity has a tax liability or intends to use the credit for that purpose.An environmental credit that meets the above criteria may exist in a variety of forms, including (but not limited to) credits, certificates, allowances, and offsets.") not initially recognized as an asset in accordance with paragraph [818-20-25-1](https://asc.understandingaccounting.org/asc/818/20/#818-20-25-1) or subsequently derecognized in accordance with paragraph [818-20-40-2](https://asc.understandingaccounting.org/asc/818/20/#818-20-40-2) (see paragraph [818-20-50-3(a)](https://asc.understandingaccounting.org/asc/818/20/#818-20-50-3))
     
16.  p
     
     Total impairment expense recognized during the reporting period relating to environmental credits (see paragraph [818-20-50-3(b)](https://asc.understandingaccounting.org/asc/818/20/#818-20-50-3))
     
17.  q
     
     Total expense recognized for [environmental credit obligation](https://asc.understandingaccounting.org/glossary/e/#environmental-credit-obligation "(P) December 16, 2027; (N) December 16, 2028818-10-65-1A regulatory compliance obligation arising from existing or enacted laws, statutes, or ordinances represented to prevent, control, reduce, or remove emissions or other pollution that may be settled with environmental credits. Obligations within the scope of Subtopic 410-30 are not environmental credit obligations.") liabilities (see paragraph [818-30-50-3](https://asc.understandingaccounting.org/asc/818/30/#818-30-50-3)).
     

These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic.

##### [220-40-50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:e55dd553a5ea15f13a1127c7a8437df3fbb952dbd1d85152b3a0373ff265912e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following amounts if those amounts are included entirely in one expense caption that also is a relevant expense caption (see paragraphs

[220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12)

for guidance on identifying relevant expense captions):

1.  a
    
    Provision for expected credit losses (see paragraphs [326-20-50-13](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-13) and [326-30-50-9](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-9))
    
2.  b
    
    Losses on firm purchase commitments (see paragraph [330-10-50-5](https://asc.understandingaccounting.org/asc/330/10/#330-10-50-5))
    
3.  c
    
    Amortization expense attributable to the expiration of an insurance or [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") coverage provided under a contract that transfers only significant [underwriting risk](https://asc.understandingaccounting.org/glossary/u/#underwriting-risk "The risk arising from uncertainties about the ultimate amount of net cash flows from premiums, commissions, claims, and claim settlement expenses paid under a contract.") (see paragraph [340-30-50-2](https://asc.understandingaccounting.org/asc/340/30/#340-30-50-2))
    
4.  d
    
    Amortization of costs to fulfill a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3))
    
5.  e
    
    Impairment of costs to fulfill a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3))
    
6.  f
    
    Amortization of costs to obtain a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3))
    
7.  g
    
    Impairment of costs to obtain a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3))
    
8.  h
    
    Amortization of capitalized implementation costs of [hosting arrangements](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that are service contracts (see paragraph [350-40-50-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-50-3))
    
9.  i
    
    [Asset retirement obligation](https://asc.understandingaccounting.org/glossary/a/#asset-retirement-obligation "An obligation associated with the retirement of a tangible long-lived asset.")[accretion expense](https://asc.understandingaccounting.org/glossary/a/#accretion-expense "An amount recognized as an expense classified as an operating item in the statement of income resulting from the increase in the carrying amount of the liability associated with the asset retirement obligation.") (see paragraph [410-20-50-1](https://asc.understandingaccounting.org/asc/410/20/#410-20-50-1))
    
10.  j
     
     [Loss contingencies](https://asc.understandingaccounting.org/glossary/l/#loss-contingency "An existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur. The term loss is used for convenience to include many charges against income that are commonly referred to as expenses and others that are commonly referred to as losses.") recognized (see paragraph [450-20-50-1](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-1))
     
11.  k
     
     [Warranty](https://asc.understandingaccounting.org/glossary/w/#warranty "A guarantee for which the underlying is related to the performance (regarding function, not price) of nonfinancial assets that are owned by the guaranteed party. The obligation may be incurred in connection with the sale of goods or services; if so, it may require further performance by the seller after the sale has taken place.") expense (the total of expenses recognized related to aggregate changes in the liability for accruals related to product warranties issued during the reporting period and the aggregate changes in the liability for accruals related to preexisting warranties, including adjustments related to changes in estimates) (see paragraph [460-10-50-8](https://asc.understandingaccounting.org/asc/460/10/#460-10-50-8))
     
12.  l
     
     Expense related to counterparty default in own-share lending arrangements issued in contemplation of convertible debt issuance (see paragraph [470-20-50-2C](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-2C))
     
13.  m
     
     Aggregate gain on restructuring of payables by a debtor with a [troubled debt restructuring](https://asc.understandingaccounting.org/glossary/t/#troubled-debt-restructuring "A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider.") (see paragraph [470-60-50-1](https://asc.understandingaccounting.org/asc/470/60/#470-60-50-1))
     
14.  n
     
     Gains and losses upon consolidation of a variable interest entity that is not a business (see paragraph [810-10-50-3](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-3))
     
15.  o
     
     Foreign currency [transaction gains or losses](https://asc.understandingaccounting.org/glossary/t/#transaction-gain-or-loss "Transaction gains or losses result from a change in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated. They represent an increase or decrease in both of the following: The actual functional currency cash flows realized upon settlement of foreign currency transactions The expected functional currency cash flows on unsettled foreign currency transactions.") (see paragraph [830-20-50-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-50-1))
     
16.  p
     
     [Operating lease](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease.") cost (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4))
     
17.  q
     
     [Short-term lease](https://asc.understandingaccounting.org/glossary/s/#short-term-lease "A lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise.") cost (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4))
     
18.  r
     
     Variable lease cost (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4))
     
19.  s
     
     Net gain or loss recognized from sale and leaseback transactions (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4))
     
20.  t
     
     Gains and losses from nonmonetary transactions (see paragraph [845-10-50-1](https://asc.understandingaccounting.org/asc/845/10/#845-10-50-1))
     
21.  u
     
     Amortization of capitalized [acquisition costs](https://asc.understandingaccounting.org/glossary/a/#acquisition-costs "Costs that are related directly to the successful acquisition of new or renewal insurance contracts.") (see paragraph [944-30-50-1(c)](https://asc.understandingaccounting.org/asc/944/30/#944-30-50-1)).
     

These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic.

##### [220-40-50-23](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-23)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:df4a45bc12b7d884cf1dcfad807f86b202ab154f1ee0b19715f74b9f8c53a3d8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)If there is a change in facts and circumstances that results in an item listed in paragraph [220-40-50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22) changing from being included in one relevant expense caption in the current reporting period and multiple relevant expense captions in a comparative period, or vice versa, an entity shall provide the disclosure required by paragraph [205-10-50-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-50-1).

##### [220-40-50-24](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-24)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:ff3adff96806ded6dfbc9c5db507437d26c4e01a6bf3e13c201ad459c36079f5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The presence of the expenses, gains, and losses listed in paragraphs

[220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)

would not cause an expense caption to be a relevant expense caption. An entity only shall include the applicable expenses listed in paragraphs

[220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)

in the tabular format disclosures if an expense caption is a relevant expense caption in accordance with paragraphs

[220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12)

.

##### [220-40-50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-25)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:9a6531e7b831a34587e4a84c69b148a54b9433b8f337d5fb2318a3656a5e4e5b

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)To illustrate the application of the requirements in paragraph [220-40-50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22), if cost of sales was a relevant expense caption (because cost of sales includes purchases of inventory described in paragraph [220-40-50-6(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6)) and if amortization of costs to fulfill a contract with a customer was recognized entirely in cost of sales and not in multiple expense captions presented on the face of the income statement, then amortization of costs to fulfill a contract with a customer would be required to be included as a separate category in the tabular format disclosure in addition to the categories required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6).

##### [220-40-50-26](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:f773f2d056d8e526054ec1d6c921149b4b7a37ce27139c7fd9d30708303270b6

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For interim and annual reporting periods, an entity that presents a relevant expense caption that includes amounts that are recorded net of an expense reimbursement related to a cost-sharing or cost-reimbursement arrangement from another entity, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, shall either:

1.  a
    
    Separately disclose the amount of the expense reimbursement
    
2.  b
    
    Disclose the amounts of the expense categories required by paragraphs [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) and
    
    [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)
    
    that are included in the relevant expense caption net of any reimbursement effects.

##### [220-40-50-27](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-27)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:79c89ace39eff6f64442b828bdb6e757d09d5cf899bf5baac96a2b5359285ee4

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For interim and annual reporting periods, an entity shall disclose how expense reimbursements related to a cost-sharing or cost-reimbursement arrangement are included in the tabular format disclosure, as described in paragraph [220-40-50-26](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26).

##### [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:6438d287654a449db2264443139afb502ddfa688432e78d76e68a07114e78dd6

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For interim and annual reporting periods, an entity that includes an expense reimbursement related to a cost-sharing or cost-reimbursement arrangement to another entity in a relevant expense caption shall separately disclose the amount of that expense reimbursement in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided.

##### [220-40-50-29](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-29)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:2a29a5d6febd280db392978b2ce0d995de775e20a3b808a93690bc69909a75e6

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For interim and annual reporting periods, when applying the guidance in paragraph [220-40-50-26(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26) or [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28), an entity shall disclose qualitative descriptions of the expense categories (based on their [natural expense classification](https://asc.understandingaccounting.org/glossary/n/#natural-expense-classification "A method of grouping expenses according to the kinds of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, professional services, supplies, interest expense, rent, utilities, and depreciation. (P) December 16, 2026; (N) December 16, 2026220-40-65-1A method of grouping expenses according to the types of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, nonemployee professional services, supplies, interest expense, rent, utilities, and depreciation.")) to which an expense reimbursement relates.

##### [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:8dac197cbb09b163b8265b498ac19314fd1ff3999c2e466af2508061584ec674

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For interim and annual reporting periods, an entity, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, shall disclose for each relevant expense caption an amount for other items. The amount for other items is the difference between the following:

1.  a
    
    The amount of the relevant expense caption presented on the face of the income statement
    
2.  b
    
    The aggregate amount of expense categories separately disclosed in accordance with paragraphs [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6),
    
    [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)
    
    , [220-40-50-26(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26), and [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28) that are included in the relevant expense caption.
    

For interim and annual reporting periods, an entity also shall disclose qualitative descriptions of the composition (based on their natural expense classification) of other items. The detail provided in those qualitative disclosures shall be commensurate with the significance of the amounts being described. Notwithstanding that requirement, an entity is not precluded from further disaggregating relevant expense captions before applying the guidance in this paragraph to the remaining other items. Additional voluntary disclosures may be provided inside or outside the tabular disclosure if those disclosures are not combined with the disaggregated expense amounts required by paragraphs [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6),

[220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)

, [220-40-50-26(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26), and [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28).

##### [220-40-50-31](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:d7bfda7d64873f1612fa62226af7d25aa59600a7dec212c10a62b734da66719c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The following are two acceptable bases for disclosing the disaggregation of a relevant expense caption that contains expense amounts related to inventory within the scope of Topic 330:

1.  a
    
    Cost-incurred basis. The amounts disclosed for the disaggregation of a relevant expense caption comprise costs incurred that were capitalized to inventory in accordance with Topic 330 during the current reporting period and any costs incurred that were directly expensed during the current reporting period (including costs that are capitalizable in accordance with Topic 330 but were directly expensed to the income statement). Under this basis, in interim and annual reporting periods, an entity shall disclose an amount for changes in inventories and an amount for other adjustments and reconciling items to reconcile the costs incurred to the total relevant expense caption (see paragraphs
    
    [220-40-50-32 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-32)
    
    ).
    
2.  b
    
    Expense-incurred basis. The amounts disclosed for the disaggregation of a relevant expense caption comprise expense amounts related to the derecognition of inventory that was previously capitalized in accordance with Topic 330 and any costs incurred that were directly expensed during the current reporting period (including costs that are capitalizable in accordance with Topic 330 but were directly expensed to the income statement). Under this basis, an entity shall disclose the expense amounts related to the derecognition of inventory based on the natural expense category of the costs when they were initially incurred (for example, the expense from the derecognition of inventory may relate to purchases of inventory and employee compensation incurred in prior periods).
    

In many cases, an entity’s chosen basis will result in disclosed amounts that are different than if the entity had chosen the alternative basis. An entity’s chosen basis should be applied consistently to all expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6).

##### [220-40-50-32](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-32)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:060baccd77f43014b4586c3bc6916a8c0ff0215e7961ec906a362fc8d9d4b4ee

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)When the amounts disclosed in accordance with paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) include costs incurred that were capitalized to inventory in accordance with Topic 330 during the reporting period (because an entity has applied the cost-incurred basis in paragraph [220-40-50-31(a))](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31), those amounts often will not equal the amounts expensed as incurred during the reporting period. If the amount of expense recognized and the amount of costs incurred in the current reporting period are not equal, then an entity shall disclose in interim and annual reporting periods a category for the changes in inventories balances to reconcile the costs incurred (which shall include costs capitalized to inventory and costs expensed during the reporting period) to expenses recognized. The amount disclosed for changes in inventories in the current reporting period shall equal the difference between the amount of inventory included on the balance sheet at the end of the prior reporting period and the amount of inventory included on the balance sheet at the end of the current reporting period. As described in paragraph [220-40-50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-33), a separate category that comprises any other adjustments and reconciling items shall be provided to reconcile costs incurred to expenses recognized during the reporting period.

##### [220-40-50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-33)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:e644b260e29c9ccca0ddaa9fa6acfac8d7627e84906cb1026cd6a18ac547643d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)In addition to the changes in inventories category described in paragraph [220-40-50-32](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-32), for interim and annual reporting periods, under the cost-incurred basis (see paragraph [220-40-50-31(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31)), an entity shall disclose the amount of other adjustments and reconciling items that include (to the extent not disclosed in a separate caption) other amounts that are necessary to reconcile costs incurred to expenses recognized. For example, those items would include, if applicable:

1.  a
    
    The amount of inventory derecognized during the period that is not recognized as an expense (for example, inventory derecognized as part of derecognition transactions within the scope of Subtopic 810-10 on consolidation)
    
2.  b
    
    The amount attributable to differences in the foreign currency exchange rates used to translate costs incurred, the beginning balance of inventory, and the ending balance of inventory in accordance with Subtopic 830-30 on foreign currency matters—translation of financial statements.

##### [220-40-50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-34)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:832b336547e12d10ed1e4e12c8cbf11503f54da02450bbb010344e619a964e28

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)Consistent with the requirements in paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30), for interim and annual reporting periods, an entity shall qualitatively describe the nature of amounts (based on their natural expense classification when applicable) included in other adjustments and reconciling items in accordance with paragraph [220-40-50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-33).

##### [220-40-50-35](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:00ad5185ddad6698324a4f3a45b3add1a16eb35a3b8791d1e8f12cb443a571b7

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For interim and annual reporting periods, an entity shall disclose, in the notes to financial statements, the total selling expenses recognized in continuing operations.

##### [220-40-50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-36)

Pending content: yes

Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z

Record version: sha256:4381b612f4e853a306733227267a5169a53ed345512cafcd6158b7cbe6d4de6d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)An entity shall make its own determination of what constitutes a selling expense. An entity’s definition of selling expenses shall include only items that are presented as expenses in the income statement. An entity shall disclose how it defines the term selling expenses in annual reporting periods (or in interim reporting periods if the definition is changed).