# ASC 340-40-15: Other Assets and Deferred Costs — Contracts with Customers — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/340/40/#15-scope-and-scope-exceptions)

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## ASC 340-40-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/340/40/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [340-40-15-1](https://asc.understandingaccounting.org/asc/340/40/#340-40-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section 340-10-15), with specific qualifications and exceptions noted below.

#### Transactions

##### [340-40-15-2](https://asc.understandingaccounting.org/asc/340/40/#340-40-15-2)

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The guidance in this Subtopic applies to the incremental costs of obtaining 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 (excluding any consideration payable to a customer, see paragraphs

[606-10-32-25 through 32-27](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-25)

).

##### [340-40-15-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-15-3)

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The guidance in this Subtopic applies to the costs incurred in fulfilling 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, unless the costs are within the scope of another Topic or Subtopic, including, but not limited to, any of the following:

1.  a
    
    Topic 330 on inventory
    
2.  b
    
    Paragraphs
    
    [340-10-25-1 through 25-4](https://asc.understandingaccounting.org/asc/340/10/#340-10-25-1)
    
    on preproduction costs related to long-term supply arrangements
    
3.  c
    
    Subtopic 350-40 on internal-use software
    
4.  d
    
    Topic 360 on property, plant, and equipment
    
5.  e
    
    Subtopic 985-20 on costs of software to be sold, leased, or otherwise marketed.