# ASC 340-40-35: Other Assets and Deferred Costs — Contracts with Customers — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/40/#35-subsequent-measurement) 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): 2026-09-09T23:56:23.447Z to 2026-09-09T23:56:23.447Z Record version: sha256:96771d0c18eea39eb291a1f63ed2c09fd90d4d7341704a18087f75ddff672a1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-40-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/340/40/#35-subsequent-measurement) SEC content: no #### Amortization and Impairment ##### [340-40-35-1](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:23.447Z to 2026-09-09T23:56:23.447Z Record version: sha256:2dc74d77b8c9d0b6c9cea572678566db551ce3d04e5cb603cb88499979fadca3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An asset recognized in accordance with paragraph [340-40-25-1](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1) or [340-40-25-5](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-5) shall be amortized on a systematic basis that is consistent with the transfer to the [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.") 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](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") (as described in paragraph [340-40-25-5(a)](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-5)). ##### [340-40-35-2](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:23.447Z to 2026-09-09T23:56:23.447Z Record version: sha256:c70842d340d8fd3d8e8a30c7bd613226ce4d46f5d216bac0749a178cc2938c88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [340-40-35-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:23.447Z to 2026-09-09T23:56:23.447Z Record version: sha256:2bd206ea9b4c3c3414f3a988635c8598c4e82816b9dccc24bbaff4996f267ee2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1) or [340-40-25-5](https://asc.understandingaccounting.org/asc/340/40/#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](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-2) and [340-40-25-7](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-7)). ##### [340-40-35-4](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:23.447Z to 2026-09-09T23:56:23.447Z Record version: sha256:7fa8b7cbef7a6e83fbb9088ae6e23d862f412e31d5b43586ad7c3bd1470e647b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the purposes of applying paragraph [340-40-35-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-3) to determine the consideration, an entity shall use the principles for determining the [transaction price](https://asc.understandingaccounting.org/glossary/t/#transaction-price "The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.") (except for the guidance in paragraphs [606-10-32-11 through 32-13](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-11) 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](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-3), an entity also shall consider expected contract renewals and extensions (with the same customer). ##### [340-40-35-5](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:23.447Z to 2026-09-09T23:56:23.447Z Record version: sha256:c9204fa1b9c1b7f30aebded6c7b829ba7cb5cdd8f10f7fc4da5679933561fabc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Before an entity recognizes an impairment loss for an asset recognized in accordance with paragraph [340-40-25-1](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1) or [340-40-25-5](https://asc.understandingaccounting.org/asc/340/40/#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](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-3), an entity shall include the resulting carrying amount of the asset recognized in accordance with paragraph [340-40-25-1](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1) or [340-40-25-5](https://asc.understandingaccounting.org/asc/340/40/#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. ##### [340-40-35-6](https://asc.understandingaccounting.org/asc/340/40/#340-40-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:23.447Z to 2026-09-09T23:56:23.447Z Record version: sha256:c24f5670ff80b307d7aece51c655b46e4cc57890466b669f66d6fa392a63a461 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall not recognize a reversal of an impairment loss previously recognized.