ASC

ASC 220-912

Contractors—Federal Government

220 Income Statement—Reporting Comprehensive Income

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In brief

IntermediatePresentationIndustry-specificFinancial statement presentationInventory and PP&E

This industry-specific subtopic addresses how a federal government contractor presents amounts in the income statement relating to terminated contracts. After ASC 2014-09 superseded most of its guidance, the only surviving rule is that items the contractor keeps without making a claim for cost or loss stay on the balance sheet as inventory or deferred charges (220-912-45-3).

Key points (4)
  • The Subtopic's purpose is presentation in the income statement of amounts relating to terminated contracts (220-912-05-1).
  • Scope follows the federal government contractor Overall Subtopic, Section 912-10-15 (220-912-15-1).
  • Items the contractor retains without claim for cost or loss remain as inventory or deferred charges in the contractor's accounts rather than being charged to income (220-912-45-3).
  • Paragraphs 220-912-45-1, 45-2 and 45-4 were superseded by ASU No. 2014-09, so most former termination-claim presentation guidance is now governed by the revenue recognition model.

For students. Mostly a historical shell: ASU 2014-09 gutted this Subtopic, leaving only the rule that retained items with no claim stay in inventory/deferred charges. The common mistake is looking here for termination-claim revenue guidance instead of ASC 606 and 912-10.

terminated contractsfederal government contractorstermination claimsinventorydeferred chargesincome statement presentationsuperseded guidance

Machine-generated study aid for ASC 220-912. Check the source paragraphs below.

220-912-00Status

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Status

220-912-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
912-220-05-1 Added Maintenance Update 2017-19 (PDF) 11/15/2017
912-220-15-1 Added Maintenance Update 2017-19 (PDF) 11/15/2017
912-220-45-1 through 45-4
 Added Maintenance Update 2017-19 (PDF) 11/15/2017

220-912-05Overview and Background

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220-912-05-1
This Subtopic provides guidance on presentation in the income statement for amounts relating to terminated contracts.

220-912-15Scope and Scope Exceptions

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Overall Guidance

220-912-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 912-10-15.

220-912-45Other Presentation Matters

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Terminated Contracts

220-912-45-3
Any items the contractor retains without claim for cost or loss shall remain as inventory or deferred charges in the contractor's accounts.

Related subtopics