# ASC 310-912-25: Receivables — Contractors—Federal Government — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/912/#25-recognition) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:b8b2b8a8a1fc74f11909b469d6ce310a0208ec7950f6c9ebcb5ea0ec91f19f45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/912/#25-recognition) SEC content: no #### Cost-Plus-Fixed-Fee Contracts ##### [310-912-25-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:05fb26a9aec05587eaa31f5d4d11da7b6e2f6121f4e1492e07a9eef94feb2ca7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unbilled costs and fees under [cost-plus-fixed-fee contracts](https://asc.understandingaccounting.org/glossary/c/#cost-plus-fixed-fee-contract "A contract under which the contractor is reimbursed for costs plus the provision for a fixed fee.") are receivables or [contract assets](https://asc.understandingaccounting.org/glossary/c/#contract-asset "An entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity's future performance).") rather than advances or inventory. ##### [310-912-25-2](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:aaef17f3bb446a0a291723667694c9d1c118bf4b02fdf49dbe126c2c7715321d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payments on account of the fees (minus amounts withheld until completion) are made from time to time as specified in the agreements, usually subject to the approval of the contracting officer. In most circumstances the amount of each payment is determined by the ratio of expenditures made to the total estimated expenditures rather than on the basis of deliveries or other measures of progress toward complete satisfaction of a [performance obligation](https://asc.understandingaccounting.org/glossary/p/#performance-obligation "A promise in a contract with a customer to transfer to the customer either: A good or service (or a bundle of goods or services) that is distinct A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.") in accordance with the guidance in paragraphs [606-10-25-31 through 25-37](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-31) and paragraphs [606-10-55-16 through 55-21](https://asc.understandingaccounting.org/asc/606/10/#606-10-55-16) . ##### [310-912-25-3](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:551ca809dd3d29f81b9757bbb6950a7e410971cbca547653c3593cf87e4677de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The principal reason for the existence of unbilled costs is the time usually required, after receipt of material or expenditures for labor and other costs , to assemble data for billing. The right to bill usually exists upon expenditure or accrual, and that right represents a receivable rather than an advance or inventory. #### Termination Claims ##### [310-912-25-4](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:ca6e10d4d65a96971703808f5c931c141f4ffe52398bd2f3bb75d53ea4d1de15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disposal credits are amounts deducted from the contractor's termination claim receivable by reason of the contractor's retention, or sale to outsiders, of some or all of the termination inventory for which claim was made. In the circumstance of items retained, either as scrap or for use by the contractor, the amount of the credit shall be determined by agreement between the contractor and a representative of the government. The sale of inventory items by the contractor shall be likewise subject to approval by the government, except as permitted by regulation. Because the amount of the contractor's termination claim is properly recorded as a sale, any elements included in that claim for items of inventory retained by the contractor are, in effect, reacquired by the contractor and shall be treated as purchases at the agreed value. Amounts received for items sold to others with the approval of the government are collections for the account of the government and shall be applied as a reduction of the termination claim receivable. Inventories or other items that are retained by the contractor after termination without claim for loss shall not be included as an element of the termination claim. ##### [310-912-25-5](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:fd8887a637576c5d12bd6470523306fc22e612692697e411b7a2dab712091875 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A contractor whose contract is terminated may prefer to retain the termination inventory for use in other production or for disposal at the contractor's risk. For these or other reasons the contractor may prefer to make no claim against the government or a higher-tier contractor. In such no-cost settlements there is no sale of inventory or other items to the government and no occasion to accrue any profit arising from the termination. The costs otherwise applicable to the contract shall be given their usual treatment in the accounts. Items of inventory or other property retained, having been previously recorded, require no charge to purchases but shall be treated in accordance with the usual procedures applicable to such assets. ##### [310-912-25-6](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:7dbdbadad06c98759722537b63e778a6fd337f715a99ef72aea656f697b18c5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Progress Payments ##### [310-912-25-7](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:cd351919d306e8663822d6ea1d815a1d4d1b97a5a1437f554fc773063b083f6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting for progress payments under a government contract depends on the progress-payments clause as follows: 1. a If legal title to the related accumulated costs of contracts in progress vests with the U.S. government on the contractor's receipt of progress payments, progress payments received on fixed-price contracts shall be applied by individual contract first to amounts carried in unbilled receivables, with any remainder applied to accumulated costs of contracts in progress (often referred to as inventories). 2. b If a legal determination is made that the U.S. government receives only a secured interest in the accumulated costs of contracts in progress, progress payments received shall be accounted for as a financing transaction. ##### [310-912-25-8](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:c145284764531b6fa38800560612b8acaf3f99c34b03ade00a7d39e5ec207360 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-912-25-9](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:282158cebe92b87c3067bb5d5e161da3a4011b54df3f1534b68d0bdbdfe0d705 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).