# ASC 340-40-50: Other Assets and Deferred Costs — Contracts with Customers — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/40/#50-disclosure) 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): 2026-09-09T23:56:25.596Z to 2026-09-09T23:56:25.596Z Record version: sha256:fa268ef1ee847b5c6236782d6edc12915ef1a154173d4452400da523fc91f1de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-40-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/340/40/#50-disclosure) SEC content: no #### Assets Recognized from the Costs to Obtain or Fulfill a Contract with a Customer ##### [340-40-50-1](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:25.596Z to 2026-09-09T23:56:25.596Z Record version: sha256:57f46d2a46c55eba07f078de1ac7178a7211be8dc837d5d6087019f95139a51b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Consistent with the overall disclosure objective in paragraph [606-10-50-1](https://asc.understandingaccounting.org/asc/606/10/#606-10-50-1) and the guidance in paragraphs [606-10-50-2 through 50-3](https://asc.understandingaccounting.org/asc/606/10/#606-10-50-2) , an entity shall provide the following disclosures of assets recognized from the costs to obtain or fulfill 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.") in accordance with paragraphs [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). ##### [340-40-50-2](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:25.596Z to 2026-09-09T23:56:25.596Z Record version: sha256:5b8c22aa22f04b69126f48360f3d120ff4fc78bc008f705b916af32433467180 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall describe both of the following: 1. a The judgments made in determining the amount of the costs incurred to obtain or fulfill a contract with a customer (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)) 2. b The method it uses to determine the amortization for each reporting period. ##### [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:56:25.596Z to 2026-09-09T23:56:25.596Z Record version: sha256:b3f465cca9ffc8a08b56c52f1cc4f5eb0c42ce290fe001905b711b45f9ce923e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose all of the following: 1. a The closing balances of assets recognized from the costs incurred to obtain or fulfill a contract with a customer (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)), by main category of asset (for example, costs to obtain contracts with customers, precontract costs, and setup costs) 2. b The amount of amortization and any impairment losses recognized in the reporting period. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)An entity shall disclose all of the following: 1. a The closing balances of assets recognized from the costs incurred to obtain or fulfill a contract with a customer (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)), by main category of asset (for example, costs to obtain contracts with customers, precontract costs, and setup costs) 2. b The amount of amortization and any impairment losses recognized in the reporting period. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [340-40-50-4](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:25.596Z to 2026-09-09T23:56:25.596Z Record version: sha256:10d93c9da35ada169f7362d116f46c11f48a0a22ab8391be0470c3394938e0c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity, except for a [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."), a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, or an employee benefit plan that files or furnishes financial statements with or to the Securities and Exchange Commission, may elect not to provide the disclosures in paragraphs [340-40-50-2 through 50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-2) . #### Practical Expedients ##### [340-40-50-5](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:25.596Z to 2026-09-09T23:56:25.596Z Record version: sha256:b1e5e9f91df3caaa56bfdfea23f177ba03ffc25a4718a79990d2eef1da4b48f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity elects to use the practical expedient in paragraph [340-40-25-4](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-4) on the incremental costs of obtaining a contract, the entity shall disclose that fact. ##### [340-40-50-6](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:56:25.596Z to 2026-09-09T23:56:25.596Z Record version: sha256:7b44ddac9541cf657185c1f41726396baec480583f2e0b31701e484b8ebb9054 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity, except for a [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."), a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, or an employee benefit plan that files or furnishes financial statements with or to the Securities and Exchange Commission, may elect not to provide the disclosure in paragraph [340-40-50-5](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-5).