# ASC 255-912-50: Changing Prices — Contractors—Federal Government — 50 Disclosure

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/255/912/#50-disclosure)

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## ASC 255-912-50: 50 Disclosure

[Read section](https://asc.understandingaccounting.org/asc/255/912/#50-disclosure)

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#### Financial Reporting and Changing Prices

##### [255-912-50-1](https://asc.understandingaccounting.org/asc/255/912/#255-912-50-1)

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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 purchasing power gain or loss on net monetary items:

1.  a
    
    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.
    
2.  b
    
    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.
    
3.  c
    
    Accrued losses on contracts shall be classified as monetary items because they are, in essence, future accounts payable.