{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/40/#05-overview-and-background","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":"340","topic_title":"Other Assets and Deferred Costs","subtopic":"340-40","subtopic_title":"Contracts with Customers","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-40-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_67D56BCC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic provides accounting guidance for the following costs related to a <a href=\"/glossary/c/#contract\" class=\"term\" title=\"An agreement between two or more parties that creates enforceable rights and obligations.\"><span>contract</span></a> with a <a href=\"/glossary/c/#customer\" class=\"term\" title=\"A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.\"><span>customer</span></a> within the scope of Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a> on <a href=\"/glossary/r/#revenue\" class=\"term\" title=\"Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.\"><span>revenue</span></a> from contracts with customers:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_67D56CF3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Incremental costs of obtaining a contract with a customer</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_67D56E17-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Costs incurred in fulfilling a contract with a customer that are not in the scope of another Topic. </span></span></div></li></ol></div></div>","snippet":"This Subtopic provides accounting guidance for the following costs related to a contract with a customer within the scope of Topic 606 on revenue from contracts with customers:\n(a) Incremental costs of obtaining a contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9412dfc9ad2a31461b7d489480d49273fa2703718acd4af616aeba6032dc5fb0","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}},{"citation":"340-40-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_67D56EF7-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraphs presented in <strong class=\"ph b\">bold type</strong> in this Subtopic state the main principles. All paragraphs have equal authority.</span></span></div></div>","snippet":"Paragraphs presented in bold type in this Subtopic state the main principles. All paragraphs have equal authority.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53dd85b84a109a9108e61ca3a34a33088748be3a85f54b354307aee3371fbc1b","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87fb6b36d2a1d9f16e613cf3e2f36379b16ebb70198d498204b70e3b5cdc2f5f","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f928f59c61106c79c2016114a2c89b70918fb8422a061e0746a892a884b7f6b","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f928f59c61106c79c2016114a2c89b70918fb8422a061e0746a892a884b7f6b","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}}