# ASC 340-10-S99: Other Assets and Deferred Costs — Overall — SEC 99 SEC Materials Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/10/#sec-99-sec-materials) 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): 2026-09-09T23:55:04.724Z to 2026-09-09T23:55:04.724Z Record version: sha256:7cb260014a29d9d06fba24329e3c2c29353788851d0fb2c8500fdb1b43b07af0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/340/10/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [340-10-S99-1](https://asc.understandingaccounting.org/asc/340/10/#340-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:55:04.724Z to 2026-09-09T23:55:04.724Z Record version: sha256:b20163ac5d676ada1468c80292be4a5b99417acf0520498eaa486ab0c8c5d58b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 5.A, Expenses of Offering. - Facts: Prior to the effective date of an offering of equity securities, Company Y incurs certain expenses related to the offering. - Question: Should such costs be deferred? - Interpretive Response: Specific incremental costs directly attributable to a proposed or actual offering of securities may properly be deferred and charged against the gross proceeds of the offering. However, management salaries or other general and administrative expenses may not be allocated as costs of the offering and deferred costs of an aborted offering may not be deferred and charged against proceeds of a subsequent offering. A short postponement (up to 90 days) does not represent an aborted offering. ##### [340-10-S99-2](https://asc.understandingaccounting.org/asc/340/10/#340-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:55:04.724Z to 2026-09-09T23:55:04.724Z Record version: sha256:f7bd69ee56bd97204b859632f51ed0e3c4e6dff7f819d72fb71fda86a3428ec5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 2.A.6, Debt Issue Costs in Conjunction with a Business Combination. - Facts: Company A is to acquire the net assets of Company B in a transaction to be accounted for as a business combination. In connection with the transaction, Company A has retained an investment banker to provide advisory services in structuring the acquisition and to provide the necessary financing. It is expected that the acquisition will be financed on an interim basis using "bridge financing" provided by the investment banker. Permanent financing will be arranged at a later date through a debt offering, which will be underwritten by the investment banker. Fees will be paid to the investment banker for the advisory services, the bridge financing and the underwriting of the permanent financing. These services may be billed separately or as a single amount. - Question 1: Should total fees paid to the investment banker for acquisition-related services and the issuance of debt securities be allocated between the services received? - Interpretive Response: Yes. Fees paid to an investment banker in connection with a business combination or asset acquisition, when the investment banker is also providing interim financing or underwriting services, must be allocated between acquisition related services and debt issue costs. - When an investment banker provides services in connection with a business combination or asset acquisition and also provides underwriting services associated with the issuance of debt or equity securities, the total fees incurred by an entity should be allocated between the services received on a relative fair value basis. The objective of the allocation is to ascribe the total fees incurred to the actual services provided by the investment banker. - FASB ASC Topic 805, Business Combinations, provides guidance for the portion of the costs that represent acquisition-related services. The portion of the costs pertaining to the issuance of debt or equity securities should be accounted for in accordance with other applicable GAAP. - Question 2: May the debt issue costs of the interim "bridge financing" be amortized over the anticipated combined life of the bridge and permanent financings? - Interpretive Response: No. Debt issue costs should be amortized by the interest method over the life of the debt to which they relate. Debt issue costs related to the bridge financing should be recognized as interest cost during the estimated interim period preceding the placement of the permanent financing with any unamortized amounts charged to expense if the bridge loan is repaid prior to the expiration of the estimated period. Where the bridged financing consists of increasing rate debt, the guidance issued in FASB ASC Topic 470, Debt, should be followed. FN1 - FN1 As noted in FASB ASC paragraph [470-10-35-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-35-2), the term-extending provisions of the debt instrument should be analyzed to determine whether they constitute an embedded derivative requiring separate accounting in accordance with FASB ASC Topic 815, Derivatives and Hedging. ##### [340-10-S99-3](https://asc.understandingaccounting.org/asc/340/10/#340-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:55:04.724Z to 2026-09-09T23:55:04.724Z Record version: sha256:d103585058bdea9e23626b55fdaac803e047767247d597da1a74e75e6778a212 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SEC Observer Comment: Accounting for Pre-Production Costs Related to Long-Term Supply Arrangements. - Registrants will be expected to disclose their accounting policy for pre-production design and development costs (paragraph [340-10-25-1](https://asc.understandingaccounting.org/asc/340/10/#340-10-25-1)) as well as the aggregate amount of: - a. Assets recognized pursuant to agreements that provide for contractual reimbursement of pre-production design and development costs - b. Assets recognized for molds, dies, and other tools that the supplier owns - c. Assets recognized for molds, dies, and other tools that the supplier does not own.