# ASC 340-40-05: Other Assets and Deferred Costs — Contracts with Customers — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/340/40/#05-overview-and-background)

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## ASC 340-40-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/340/40/#05-overview-and-background)

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##### [340-40-05-1](https://asc.understandingaccounting.org/asc/340/40/#340-40-05-1)

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This Subtopic provides accounting guidance for the following costs related to a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with a [customer](https://asc.understandingaccounting.org/glossary/c/#customer "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.") within the scope of Topic 606 on [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "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.") from contracts with customers:

1.  a
    
    Incremental costs of obtaining a contract with a customer
    
2.  b
    
    Costs incurred in fulfilling a contract with a customer that are not in the scope of another Topic.

##### [340-40-05-2](https://asc.understandingaccounting.org/asc/340/40/#340-40-05-2)

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Paragraphs presented in **bold type** in this Subtopic state the main principles. All paragraphs have equal authority.