{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/40/#35-subsequent-measurement","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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Amortization and Impairment","paragraphs":[{"citation":"340-40-35-1","para":"35-1","html":"
An asset recognized in accordance with paragraph 340-40-25-1 or 340-40-25-5 shall be amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. The asset may relate to goods or services to be transferred under a specific anticipated contract (as described in paragraph 340-40-25-5(a)).
","snippet":"An asset recognized in accordance with paragraph 340-40-25-1 or 340-40-25-5 shall be amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relate…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2dc74d77b8c9d0b6c9cea572678566db551ce3d04e5cb603cb88499979fadca3","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}},{"citation":"340-40-35-2","para":"35-2","html":"
An entity shall update the amortization to reflect a significant change in the entity's expected timing of transfer to the customer of the goods or services to which the asset relates. Such a change shall be accounted for as a change in accounting estimate in accordance with Subtopic 250-10 on accounting changes and error corrections.
","snippet":"An entity shall update the amortization to reflect a significant change in the entity's expected timing of transfer to the customer of the goods or services to which the asset relates. Such a change shall be accounted fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c70842d340d8fd3d8e8a30c7bd613226ce4d46f5d216bac0749a178cc2938c88","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}},{"citation":"340-40-35-3","para":"35-3","html":"
An entity shall recognize an impairment loss in profit or loss to the extent that the carrying amount of an asset recognized in accordance with paragraph 340-40-25-1 or 340-40-25-5 exceeds:
  1. a
    The amount of consideration that the entity expects to receive in the future and that the entity has received but has not recognized as revenue, in exchange for the goods or services to which the asset relates (“the consideration”), less
  2. b
    The costs that relate directly to providing those goods or services and that have not been recognized as expenses (see paragraphs 340-40-25-2 and 340-40-25-7).
","snippet":"An entity shall recognize an impairment loss in profit or loss to the extent that the carrying amount of an asset recognized in accordance with paragraph 340-40-25-1 or 340-40-25-5 exceeds:\n(a) The amount of consideratio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2bd206ea9b4c3c3414f3a988635c8598c4e82816b9dccc24bbaff4996f267ee2","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}},{"citation":"340-40-35-4","para":"35-4","html":"
For the purposes of applying paragraph 340-40-35-3 to determine the consideration, an entity shall use the principles for determining the transaction price (except for the guidance in paragraphs
606-10-32-11 through 32-13
on constraining estimates of variable consideration) and adjust that amount to reflect the effects of the customer's credit risk. When determining the consideration for the purposes of paragraph 340-40-35-3, an entity also shall consider expected contract renewals and extensions (with the same customer).
","snippet":"For the purposes of applying paragraph 340-40-35-3 to determine the consideration, an entity shall use the principles for determining the transaction price (except for the guidance in paragraphs 606-10-32-11 through 32-1…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7fa8b7cbef7a6e83fbb9088ae6e23d862f412e31d5b43586ad7c3bd1470e647b","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}},{"citation":"340-40-35-5","para":"35-5","html":"
Before an entity recognizes an impairment loss for an asset recognized in accordance with paragraph 340-40-25-1 or 340-40-25-5, the entity shall recognize any impairment loss for assets related to the contract that are recognized in accordance with another Topic other than Topic 340 on other assets and deferred costs, Topic 350 on goodwill and other intangible assets, or Topic 360 on property, plant, and equipment (for example, Topic 330 on inventory and Subtopic 985-20 on costs of software to be sold, leased, or otherwise marketed). After applying the impairment test in paragraph 340-40-35-3, an entity shall include the resulting carrying amount of the asset recognized in accordance with paragraph 340-40-25-1 or 340-40-25-5 in the carrying amount of the asset group or reporting unit to which it belongs for the purpose of applying the guidance in Topics 360 and 350.
","snippet":"Before an entity recognizes an impairment loss for an asset recognized in accordance with paragraph 340-40-25-1 or 340-40-25-5, the entity shall recognize any impairment loss for assets related to the contract that are r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c9204fa1b9c1b7f30aebded6c7b829ba7cb5cdd8f10f7fc4da5679933561fabc","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}},{"citation":"340-40-35-6","para":"35-6","html":"
An entity shall not recognize a reversal of an impairment loss previously recognized.
","snippet":"An entity shall not recognize a reversal of an impairment loss previously recognized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c24f5670ff80b307d7aece51c655b46e4cc57890466b669f66d6fa392a63a461","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15d3ad05e1e4589fcaaaae6fa3f572cda3d99b21db80a892dcff810b4f3ef10c","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96771d0c18eea39eb291a1f63ed2c09fd90d4d7341704a18087f75ddff672a1e","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96771d0c18eea39eb291a1f63ed2c09fd90d4d7341704a18087f75ddff672a1e","downloaded_from":"2026-09-09T23:56:23.447Z","last_downloaded_at":"2026-09-09T23:56:23.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479512","source_sha256":"6add4551a763c8bb303137045b7b77a8b80bb0a9561e318d5fba4496ea7e7da8"}}