{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/255/912/#50-disclosure","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"255","topic_title":"Changing Prices","subtopic":"255-912","subtopic_title":"Contractors—Federal Government","section":{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Financial Reporting and Changing Prices","paragraphs":[{"citation":"255-912-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D6998E87-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For those contractors electing to disclose supplementary information on the effects of changing prices in accordance with Subtopic <a altsource=\"GUID-EE017F9B-8187-4F6B-9CB6-33C55DED357F.ditamap\" class=\"ditamap\">255-10</a> all of the following matters shall be taken into consideration in calculating the purchasing power gain or loss on net monetary items: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_D6998FB0-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Contract inventories are not considered to be monetary assets, because the negotiated price of the contract under which the inventories are produced provides for the estimated effects of inflation during the period of contract performance. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_D6999094-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Advances related to fixed-price contracts, although considered current liabilities, shall be classified as nonmonetary items because they represent the government's claims to nonmonetary goods or services; in other words, these advances are not rights to receive money. Additionally, obligations under warranties shall be classified as nonmonetary items because they obligate the contractor to furnish goods or services at future prices. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_D6999169-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Accrued losses on contracts shall be classified as monetary items because they are, in essence, future accounts payable. </span></span></div></li></ol></div></div>","snippet":"For those contractors electing to disclose supplementary information on the effects of changing prices in accordance with Subtopic 255-10 all of the following matters shall be taken into consideration in calculating the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a502962cc7cc5264a5344900fe83d41fd13b073576a9bca8974e72cf137dd7c","downloaded_from":"2026-09-09T23:18:39.807Z","last_downloaded_at":"2026-09-09T23:18:39.807Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477427","source_sha256":"6fd5f501ede94acf9bd9be72c56dd51044891fa20484023f0dda333b058f4ed4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4882e439f8e14cf2f235be18fe530cf77085a0d5f4caf791603ddb2a4fa68b8","downloaded_from":"2026-09-09T23:18:39.807Z","last_downloaded_at":"2026-09-09T23:18:39.807Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477427","source_sha256":"6fd5f501ede94acf9bd9be72c56dd51044891fa20484023f0dda333b058f4ed4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9419311e0349dfe145a81950aaadfc62acbec7a03460e26d3dcfd866e9252153","downloaded_from":"2026-09-09T23:18:39.807Z","last_downloaded_at":"2026-09-09T23:18:39.807Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477427","source_sha256":"6fd5f501ede94acf9bd9be72c56dd51044891fa20484023f0dda333b058f4ed4"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9419311e0349dfe145a81950aaadfc62acbec7a03460e26d3dcfd866e9252153","downloaded_from":"2026-09-09T23:18:39.807Z","last_downloaded_at":"2026-09-09T23:18:39.807Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477427","source_sha256":"6fd5f501ede94acf9bd9be72c56dd51044891fa20484023f0dda333b058f4ed4"}}