{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/","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.","number":"340","title":"Other Assets and Deferred Costs","area":"Assets","group":null,"subtopics":[{"number":"340-10","topic":"340","title":"Overall","area":"Assets","paragraphs":49,"summary":"ASC 340-10 is the Overall subtopic for Other Assets and Deferred Costs, applicable to all entities. Its substantive guidance is limited to (1) describing prepaid expenses — amounts paid in advance (insurance, interest, rents, taxes, unused royalties, prepaid advertising service, operating supplies) that are used up within the normal operating cycle and classified as current assets — and (2) the recognition rules for preproduction design and development costs incurred under long-term supply arrangements. Costs deferred under other regimes (loan origination costs, internal-use software, environmental costs, broker-dealer and industry costs) are addressed by other Topics cross-referenced in Section 60.","concepts":["prepaid expenses","preproduction costs","long-term supply arrangement","design and development costs","molds, dies, and other tools","contractual guarantee of reimbursement","noncancelable right to use","planned major maintenance"],"categories":["Recognition","Inventory and PP&E","Subsequent measurement","Financial statement presentation"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-10-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
340-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
340-10-60-1AmendedAccounting Standards Update No. 2016-0202/25/2016
340-10-60-5SupersededAccounting Standards Update No. 2014-0905/28/2014
340-10-60-6SupersededAccounting Standards Update No. 2014-0905/28/2014
340-10-60-8SupersededAccounting Standards Update No. 2014-0905/28/2014
340-10-60-9SupersededAccounting Standards Update No. 2014-1006/10/2014
340-10-60-15AmendedAccounting Standards Update No. 2013-0806/07/2013
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nContract | Added | Accounting Standards Update No. 2014-09 | 05/28/2014 |\nCustomer | Add…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b93d5213c6af088d1fa588051ce582673e4e1b8ffe70f59e92fb61013d0af46d","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:54:15.524Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482978","source_sha256":"2becfb0f51c8fee3a7939d2411b341f5b2375be7471cee32ced30376fb84e551"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d961c1a7fe5cb5ca6ca3a9e7054b1e234e255dca10d0cbcabcdff6f294b0209c","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:54:15.524Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482978","source_sha256":"2becfb0f51c8fee3a7939d2411b341f5b2375be7471cee32ced30376fb84e551"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e254d50de5685d115c8872121d5d250200162cc780ead8e0c701ef1ba649ec7a","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:54:15.524Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482978","source_sha256":"2becfb0f51c8fee3a7939d2411b341f5b2375be7471cee32ced30376fb84e551"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-10-05-1","para":"05-1","html":"
The Other Assets and Deferred Costs Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  3. c
    Insurance Contracts That Do Not Transfer Insurance Risk.
  4. d
    Contracts with Customers
","snippet":"The Other Assets and Deferred Costs Topic includes the following Subtopics:\n(a) Overall\n(b) Subparagraph superseded by Accounting Standards Update No. 2014-09.\n(c) Insurance Contracts That Do Not Transfer Insurance Risk.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e26ad5a1738152e0119cafe1f74f72e9e5e5690b3a67153d9948455be4f3e6a","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}},{"citation":"340-10-05-2","para":"05-2","html":"
The Overall Subtopic addresses the accounting and reporting for certain deferred costs and prepaid expenses. The guidance in this Subtopic is limited to a discussion of the nature of prepaid expenses and preproduction costs related to long-term supply arrangements. The specific guidance for many other costs that have been deferred is included in various other financial, broad, and industry Topics. References to certain, but not all, of the guidance in other Topics are included in this Subtopic.
","snippet":"The Overall Subtopic addresses the accounting and reporting for certain deferred costs and prepaid expenses. The guidance in this Subtopic is limited to a discussion of the nature of prepaid expenses and preproduction co…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4ff73ea0ef331222637772240bdd399a61106be880c4a92b5c340808816ca0f","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd7fd30b0d4995d9138717a6c83a8becad73648ec0760d5d260a8a7e5802c289","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}},{"block":null,"heading":"Deferred Costs Addressed in this Subtopic","paragraphs":[{"citation":"340-10-05-3","para":"05-3","html":"
The following provides background regarding certain items included in this Subtopic.
","snippet":"The following provides background regarding certain items included in this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:384b3a6e5ba4ef4e308ace85f73af8b0b3706f52b62055a0d23d5660a8a543ca","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}},{"citation":"340-10-05-4","para":"05-4","html":"
Prepaid expenses are a category of assets that are typically used up or expire within the normal operating cycle of an entity. The term derives from the fact that they are paid in advance of their use or consumption.
","snippet":"Prepaid expenses are a category of assets that are typically used up or expire within the normal operating cycle of an entity. The term derives from the fact that they are paid in advance of their use or consumption.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e9fda82cc3dd3db1d3032fee0711f47d21640660dba44cbdc25e4653a46ea11","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}},{"citation":"340-10-05-5","para":"05-5","html":"
Prepaid expenses include items such as the following:
  1. a
    Insurance
  2. b
    Interest
  3. c
    Rents
  4. d
    Taxes
  5. e
    Unused royalties
  6. f
    Current paid advertising service not yet received
  7. g
    Operating supplies.
","snippet":"Prepaid expenses include items such as the following:\n(a) Insurance\n(b) Interest\n(c) Rents\n(d) Taxes\n(e) Unused royalties\n(f) Current paid advertising service not yet received\n(g) Operating supplies.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9ab128e22612083a263ffeec4c2e7a53aab21e89998f8af468c7e5cbbd667b9","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}},{"citation":"340-10-05-6","para":"05-6","html":"
Manufacturers often incur preproduction costs related to products they will supply to their customers under long-term supply arrangements. For example, the manufacturer may incur costs to perform certain services related to the design and development of the products it will sell under long-term supply arrangements and may incur costs to design and develop molds, dies, and other tools that will be used in producing those products. While practice varies from industry to industry, the supplier may be contractually guaranteed reimbursement of design and development costs, implicitly guaranteed reimbursement of design and development costs through the pricing of the product or other means, or not guaranteed reimbursement of the design and development costs incurred under the long-term supply arrangement.
","snippet":"Manufacturers often incur preproduction costs related to products they will supply to their customers under long-term supply arrangements. For example, the manufacturer may incur costs to perform certain services related…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e139d3d6a2d763f202631ab1b7059221273e16d386541a141bae2102376e0271","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bb5f6b164b6602d1cacc5c91c59b2a724b17db30f60caa77523c882a6de18ca","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ea6fe95163d7e35f059305f4b7128844f5a9f19109ba498a1206a9ec23e76fd","downloaded_from":"2026-09-09T23:54:18.589Z","last_downloaded_at":"2026-09-09T23:54:18.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482955","source_sha256":"2b299a896e453877f1c45a1a5b2b62880dcda4c10d787dfc4fa4ecdfd4a76438"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-10-15-1","para":"15-1","html":"
The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Other Assets and Deferred Costs Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Deferred Costs and Other Assets Topic.
","snippet":"The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Other Assets and Deferred Costs Topic. Unless explicitly addressed within specific Subtopics, the following scope guidanc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e4aa9ef36f6e6035b213c6d9884a72fa875df53dd0e08b7b19b6be807350c23","downloaded_from":"2026-09-09T23:54:21.591Z","last_downloaded_at":"2026-09-09T23:54:21.591Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482931","source_sha256":"06c086f24e6a0501619a4ed210477a4a2c868d31650de8f9ce5cfb8e0b3fba2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25dedb74ae1170a31e205f3a1fe62e5060e2e17f744163927829ebfb399ca96e","downloaded_from":"2026-09-09T23:54:21.591Z","last_downloaded_at":"2026-09-09T23:54:21.591Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482931","source_sha256":"06c086f24e6a0501619a4ed210477a4a2c868d31650de8f9ce5cfb8e0b3fba2a"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"340-10-15-2","para":"15-2","html":"
The guidance in the Other Assets and Deferred Costs Topic applies to all entities.
","snippet":"The guidance in the Other Assets and Deferred Costs Topic applies to all entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2916e3e709d9969946c29f5d8c5164c5b74d73315934bd9a34ed3175ae7d09b6","downloaded_from":"2026-09-09T23:54:21.591Z","last_downloaded_at":"2026-09-09T23:54:21.591Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482931","source_sha256":"06c086f24e6a0501619a4ed210477a4a2c868d31650de8f9ce5cfb8e0b3fba2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1874d72d631eff5f8a7b55a6dfbebd38cc1fff0d2a7948da49fcfab373ca6d02","downloaded_from":"2026-09-09T23:54:21.591Z","last_downloaded_at":"2026-09-09T23:54:21.591Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482931","source_sha256":"06c086f24e6a0501619a4ed210477a4a2c868d31650de8f9ce5cfb8e0b3fba2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c067ee0f254256a6602efaea48466c6b9fc606c3ac02ec8bc95d8238900a6a11","downloaded_from":"2026-09-09T23:54:21.591Z","last_downloaded_at":"2026-09-09T23:54:21.591Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482931","source_sha256":"06c086f24e6a0501619a4ed210477a4a2c868d31650de8f9ce5cfb8e0b3fba2a"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Preproduction Costs Related to Long-Term Supply Arrangements","paragraphs":[{"citation":"340-10-25-1","para":"25-1","html":"
Design and development costs for products to be sold under long-term supply arrangements shall be expensed as incurred. Design and development costs for molds, dies, and other tools that a supplier will own and that will be used in producing the products under a long-term supply arrangement shall be capitalized as part of the molds, dies, and other tools (subject to an impairment assessment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10) unless the design and development is for molds, dies, and other tools involving new technology, in which case, the costs shall be expensed as incurred in accordance with Subtopic 730-10.
","snippet":"Design and development costs for products to be sold under long-term supply arrangements shall be expensed as incurred. Design and development costs for molds, dies, and other tools that a supplier will own and that will…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee85a5ecb6b74c2763ef011902f9e34066a3888f95beb135afe6de6ea27feb24","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}},{"citation":"340-10-25-2","para":"25-2","html":"
Design and development costs for molds, dies, and other tools that a supplier will not own and that will be used in producing the products under the long-term supply arrangement shall be capitalized (subject to an impairment assessment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10) if the supply arrangement provides the supplier the noncancelable right (as long as the supplier is performing under the terms of the supply arrangement) to use the molds, dies, and other tools during the supply arrangement. Otherwise, those design and development costs shall be expensed as incurred, including costs incurred prior to the supplier's receiving the noncancelable right to use the molds, dies, and other tools during the supply arrangement.
","snippet":"Design and development costs for molds, dies, and other tools that a supplier will not own and that will be used in producing the products under the long-term supply arrangement shall be capitalized (subject to an impair…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:220ab825452b33bc775aec054ddd62a0de97f625a60d365e38bac9b5fd27934c","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}},{"citation":"340-10-25-3","para":"25-3","html":"
If a contractual guarantee for reimbursement exists for design and development costs that otherwise would be expensed based on the guidance in this Section, those costs shall be recognized as an asset as incurred. For purposes of this Subtopic, contractual guarantee means a legally enforceable agreement in which the amount of reimbursement can be objectively measured and verified.
","snippet":"If a contractual guarantee for reimbursement exists for design and development costs that otherwise would be expensed based on the guidance in this Section, those costs shall be recognized as an asset as incurred. For pu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a46705b1b5528201cae8edea3669b4a06fb6685adac672070141d43dc3e42a09","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}},{"citation":"340-10-25-4","para":"25-4","html":"
See Examples 1 through 4 (paragraphs
340-10-55-2 through 55-5
) for preproduction costs related to long-term supply arrangements.
","snippet":"See Examples 1 through 4 (paragraphs 340-10-55-2 through 55-5) for preproduction costs related to long-term supply arrangements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce602046578f390700ea45c521e35205f995c5232a06d2e755e314e32c664b8a","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b178fa0806444ee9157675ec5be0e62d5352347f602bf767322a999138eee31f","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}},{"block":null,"heading":"Planned Major Maintenance Activities","paragraphs":[{"citation":"340-10-25-5","para":"25-5","html":"
Paragraph 360-10-25-5 states that the use of the accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim financial reporting periods.
","snippet":"Paragraph 360-10-25-5 states that the use of the accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim financial reporting periods.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60ffb6e9b2c8a525a5c4af58fd9f1a2d38c64b968b2218b64b5990df291e6919","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d95704f2e354de2057119cb27eb58f941262b1c576689fdf540ae3f374023553","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6906efd262ef7aee64ac270d0f52ddbeac4f4732decc79c96d399e13bb28e46d","downloaded_from":"2026-09-09T23:54:26.698Z","last_downloaded_at":"2026-09-09T23:54:26.698Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483082","source_sha256":"8842eab15ee02b1ed39d488893f1ea09d24ab14fd7516d8dd1a74e8ddfb861a2"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-10-35-1","para":"35-1","html":"
See paragraphs
360-10-15-4 through 15-5
for a discussion of the applicability of the guidance on long-lived assets to be held and used or disposed of to long-term prepaid assets.
","snippet":"See paragraphs 360-10-15-4 through 15-5 for a discussion of the applicability of the guidance on long-lived assets to be held and used or disposed of to long-term prepaid assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9f8b2c54c65e33f98990bf0a65a968d875882244ab5c68ab9a3936a1b5be069","downloaded_from":"2026-09-09T23:54:30.703Z","last_downloaded_at":"2026-09-09T23:54:30.703Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483056","source_sha256":"93c263658ed2ea96dee8dd599f570be49c8feb5aaf2416f0484e95cc9a3d143c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c99e8725967692b32070bd5b3305db56a526e0835d40e55b1eab4e9a561a225","downloaded_from":"2026-09-09T23:54:30.703Z","last_downloaded_at":"2026-09-09T23:54:30.703Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483056","source_sha256":"93c263658ed2ea96dee8dd599f570be49c8feb5aaf2416f0484e95cc9a3d143c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7f2fe26813ad8da78488a2673bde5c2c8d8a30fc9f1830271e0d73a3de48934","downloaded_from":"2026-09-09T23:54:30.703Z","last_downloaded_at":"2026-09-09T23:54:30.703Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483056","source_sha256":"93c263658ed2ea96dee8dd599f570be49c8feb5aaf2416f0484e95cc9a3d143c"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Classification of Prepaid Expenses","paragraphs":[{"citation":"340-10-45-1","para":"45-1","html":"
See paragraph 210-10-45-2 for a discussion of how the nature of prepaid expenses results in their classification as current assets.
","snippet":"See paragraph 210-10-45-2 for a discussion of how the nature of prepaid expenses results in their classification as current assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d394100ae4e6ee1f5f1013853de20eacdd9d732ec52a820f0ed07579124cdeba","downloaded_from":"2026-09-09T23:54:33.465Z","last_downloaded_at":"2026-09-09T23:54:33.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483032","source_sha256":"08767e57f029de2acd87a5e29be6d943cb2214c6c53457f58589645035ceb4d8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0eeef8478f0cf169d44283a6be7e0c9665cd2f25f538bfaa8e12195d03a3ea91","downloaded_from":"2026-09-09T23:54:33.465Z","last_downloaded_at":"2026-09-09T23:54:33.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483032","source_sha256":"08767e57f029de2acd87a5e29be6d943cb2214c6c53457f58589645035ceb4d8"}},{"block":null,"heading":"Planned Major Maintenance Activities","paragraphs":[{"citation":"340-10-45-2","para":"45-2","html":"
See paragraphs 360-10-45-1 and 908-360-45-2 for a discussion of the consistent application of the method of accounting for planned major maintenance activities.
","snippet":"See paragraphs 360-10-45-1 and 908-360-45-2 for a discussion of the consistent application of the method of accounting for planned major maintenance activities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78ec70ec7475fa8f94d0dd64adb456c0d11fe750b91e40869ad97c03eaaf18e1","downloaded_from":"2026-09-09T23:54:33.465Z","last_downloaded_at":"2026-09-09T23:54:33.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483032","source_sha256":"08767e57f029de2acd87a5e29be6d943cb2214c6c53457f58589645035ceb4d8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e9c7979e487a2f34944a04af35dba9524ee54fc8017e1fa7008f5951421b94d","downloaded_from":"2026-09-09T23:54:33.465Z","last_downloaded_at":"2026-09-09T23:54:33.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483032","source_sha256":"08767e57f029de2acd87a5e29be6d943cb2214c6c53457f58589645035ceb4d8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:628ae6a0691a10bf22ddd5295f71ab94ac3917d8d414138156578cfe6d546d1c","downloaded_from":"2026-09-09T23:54:33.465Z","last_downloaded_at":"2026-09-09T23:54:33.465Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483032","source_sha256":"08767e57f029de2acd87a5e29be6d943cb2214c6c53457f58589645035ceb4d8"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-10-55-1","para":"55-1","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1604c9ab3445bf538c7a03ca48804908658943ca455addeeb0a782033e9d733a","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f08e749d8a8f29678e9ac6c582623d4bc3fea8c7b9c6d4903b49ccbf8560c0d1","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"340-10-55-2","para":"55-2","html":"
This Example illustrates the recognition guidance in paragraphs
340-10-25-1 through 25-3
. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It is also assumed that the supply arrangement is legally enforceable. An entity enters into a long-term arrangement with a supplier in which the entity agrees to reimburse the supplier for preproduction design and development costs incurred under the arrangement, up to a maximum reimbursement of $1,000,000. Under this arrangement, the amount of reimbursement for design and development costs can be objectively measured and verified. The supplier shall recognize the design and development costs as an asset as costs are incurred, up to a maximum of $1,000,000.
","snippet":"This Example illustrates the recognition guidance in paragraphs 340-10-25-1 through 25-3. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a2ca96e29141f37075d1c3fa1a35cae09b66ddd29fedb73678f82b5a11f3e4e","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}},{"citation":"340-10-55-3","para":"55-3","html":"
This Example illustrates the recognition guidance in paragraphs
340-10-25-1 through 25-3
. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It is also assumed that the supply arrangement is legally enforceable. An entity enters into a long-term arrangement with a supplier in which the entity agrees to pay the supplier $55 per part for the first 200,000 parts produced and $50 for every part thereafter. No agreement exists concerning reimbursement of the supplier's design and development costs if fewer than 200,000 parts are produced under the arrangement. Under this arrangement, the amount of reimbursement for design and development costs cannot be objectively measured and verified. The supplier shall expense the preproduction design and development costs as incurred.
","snippet":"This Example illustrates the recognition guidance in paragraphs 340-10-25-1 through 25-3. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e492d100ab17b43659ed185afdaf263aab7be511d18f7e3a46cf963f5d549d72","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}},{"citation":"340-10-55-4","para":"55-4","html":"
This Example illustrates the recognition guidance in paragraphs
340-10-25-1 through 25-3
. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It is also assumed that the supply arrangement is legally enforceable. An entity enters into a long-term arrangement with a supplier in which the entity agrees to pay the supplier $55 per part for the first 200,000 parts produced and $50 for every part thereafter. The arrangement provides that if fewer than 200,000 parts are produced, the supplier will be reimbursed for design and development costs incurred under the arrangement, up to a maximum reimbursement of $1,000,000 reduced by $5 per part for each part produced under the supply arrangement. For example, if 190,000 parts are produced under the supply arrangement, in addition to the $55 per part received for the parts produced, the supplier would be reimbursed for design and development costs incurred under the arrangement, up to a maximum of $50,000 [$1,000,000 - ($5 X 190,000)]. Under this agreement, the amount of reimbursement for design and development costs can be objectively measured and verified. The supplier shall recognize the design and development costs as an asset as costs are incurred, up to a maximum of $1,000,000.
","snippet":"This Example illustrates the recognition guidance in paragraphs 340-10-25-1 through 25-3. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be0030735087fe29b9cf338dc22cba157b8e4822dbf69b470a4b0bfaa6c92839","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}},{"citation":"340-10-55-5","para":"55-5","html":"
This Example illustrates the recognition guidance in paragraphs
340-10-25-1 through 25-3
. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It is also assumed that the supply arrangement is legally enforceable. An entity enters into a long-term arrangement with a supplier in which the entity agrees to pay the supplier $52.50 per part. The arrangement requires that a minimum of 400,000 parts be produced. If fewer than 400,000 parts are produced under the arrangement, the supplier will receive a payment of $52.50 per part not produced under the arrangement, up to a maximum of 400,000 parts. Under this arrangement, the amount of reimbursement for design and development costs cannot be objectively measured and verified. The supplier shall expense the design and development costs as incurred.
","snippet":"This Example illustrates the recognition guidance in paragraphs 340-10-25-1 through 25-3. It is assumed that the design and development costs would be expensed under that guidance absent a reimbursement arrangement. It i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f25cdc611a3e1804897c606c636f80f0e8850f0a2df65ef550520d2d76b21708","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd3f6e8771124eca6edca193953fb5dae64b852f8d04432252f1563e451cee79","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:074dbcb089d024fd98e446aa003e8ddee81de9822eb2f9b89391cded6a3cc940","downloaded_from":"2026-09-09T23:54:35.789Z","last_downloaded_at":"2026-09-09T23:54:35.789Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483007","source_sha256":"5604a9caeadf21a686e2c954f43c2751e454de8f39b92a5151d2dd22dc45fa7e"}},{"number":"60","label":"60 Relationships","anchor":"60-relationships","is_sec":false,"groups":[{"block":null,"heading":"Receivables","paragraphs":[{"citation":"340-10-60-1","para":"60-1","html":"
For accounting for nonrefundable fees and costs associated with lending, committing to lend, or purchasing a group of loans, see Subtopic 310-20.
","snippet":"For accounting for nonrefundable fees and costs associated with lending, committing to lend, or purchasing a group of loans, see Subtopic 310-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cefa1549e14f1a7f0aee8272dcbfe4f4e97efe289f20e6611c1a237ded00b10","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dca8567a5a06b0f16993e811c07be401028008c4c72ec3ed46daa4d10c4435f","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Intangibles—Goodwill and Other","paragraphs":[{"citation":"340-10-60-2","para":"60-2","html":"
For capitalization of internal and external costs incurred to develop internal-use computer software, see Sections 350-40-25 and 350-40-30.
","snippet":"For capitalization of internal and external costs incurred to develop internal-use computer software, see Sections 350-40-25 and 350-40-30.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1db3fbf1fd1bcd4ba4a600a07c767c362beb9d7d7132c605af38ee3949be97a4","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1fc2192913afac4f2ebba835208006979d27a05e3a607896a8d97c8b91442f5a","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Asset Retirement and Environmental Obligations","paragraphs":[{"citation":"340-10-60-3","para":"60-3","html":"
For capitalization of costs incurred to treat asbestos, see Section 410-30-45 and paragraphs
410-30-25-17 through 25-18
.
","snippet":"For capitalization of costs incurred to treat asbestos, see Section 410-30-45 and paragraphs 410-30-25-17 through 25-18.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc1f9b86aa01bf591a41f79bc652f36e4e09c7c3be35d706e7ba6d38bc8aab21","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"citation":"340-10-60-4","para":"60-4","html":"
For accounting criteria for environmental contamination treatment costs, see paragraphs
410-30-25-16 through 25-19
.
","snippet":"For accounting criteria for environmental contamination treatment costs, see paragraphs 410-30-25-16 through 25-19.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8f2b2bd17951227e88cfc7ab45a5ff79f1c5511de94f752fd56c31df6b8594d","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"citation":"340-10-60-5","para":"60-5","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:371ad06fa8a33a58e237b00d0ad6677e7a0d2c6dc143fc82cb34d242b3a97543","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"citation":"340-10-60-6","para":"60-6","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85b886da58aa74bb7341740d38cd99e4a403461f20e039b4a098a183a488e4d0","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ecb3d5a67035a5def3fcfd85884881efd0a806784759d8918e45b084e36bcb2a","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Other Expenses","paragraphs":[{"citation":"340-10-60-7","para":"60-7","html":"
For accounting for the cost of business process reengineering activities, see Subtopic 720-45.
","snippet":"For accounting for the cost of business process reengineering activities, see Subtopic 720-45.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:190e458bfe8066d4ff58f8375f494f9e12a7e205fa22b995a4a8c740e3556878","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"citation":"340-10-60-8","para":"60-8","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a608d620961c2e48d7ec4beb84e84db8b7950f5fe1a76021ac90be58c4376fe","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"citation":"340-10-60-9","para":"60-9","html":"
Paragraph superseded by Accounting Standards Update No. 2014-10.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d82673a6c51aaf8a281f35b15c721029602bc74a94ab94161699eb5f6ffefb60","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f793ab1044b2ba3fb04abbca403624df30e322a0c0207d840a312ed82791a407","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Entertainment—Cable Television","paragraphs":[{"citation":"340-10-60-10","para":"60-10","html":"
For capitalization and subsequent measurement of initial subscriber installation costs, see Section 922-360-35.
","snippet":"For capitalization and subsequent measurement of initial subscriber installation costs, see Section 922-360-35.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb7fe691aa80b04d6ab30a3f85262e816a37b8a92784ef80c1b34a1e026b5a32","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d5f425d4b37d51616f6875aa419974d1104a37132c309a57871b590d9748aded","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Entertainment—Music","paragraphs":[{"citation":"340-10-60-11","para":"60-11","html":"
For reporting of an advance royalty to an artist as an asset, see paragraph 928-340-25-1.
","snippet":"For reporting of an advance royalty to an artist as an asset, see paragraph 928-340-25-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25c2738c503c94aedb05db36170596b30cc81a4a662e9381545f620ef95dab8e","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cbce0e960b1958ec7ca12c0a42efe8c61866d15f1705be18980dd1abead238d","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Financial Services—Brokers and Dealers","paragraphs":[{"citation":"340-10-60-12","para":"60-12","html":"
For consideration of a membership as an asset by broker dealers, see Section 940-340-25.
","snippet":"For consideration of a membership as an asset by broker dealers, see Section 940-340-25.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:580b94d5ff2a958a481086bd4e9ba24a625a58899dc5ba47dd6683a85edd3735","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"citation":"340-10-60-13","para":"60-13","html":"
For accounting guidance for underwriting expenses by broker dealers, see Sections 940-20-25 and 940-20-35.
","snippet":"For accounting guidance for underwriting expenses by broker dealers, see Sections 940-20-25 and 940-20-35.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c7dcb3ce00bb5e3459fd04051187a1631585e6c9fbbd7a40fc28007622a9406","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"citation":"340-10-60-14","para":"60-14","html":"
For accounting guidance for distribution fees by broker dealers, see Subtopic 940-340.
","snippet":"For accounting guidance for distribution fees by broker dealers, see Subtopic 940-340.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3df861dc2ee1e9b6917dce8d8004052ed5529352072de8481aa140726c541aaf","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f59323079e5b8baa54f8717c3c4a30d6585199d0443907b33dc8b18a3bffac4e","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Financial Services—Investment Companies","paragraphs":[{"citation":"340-10-60-15","para":"60-15","html":"
For accounting for offering costs by investment companies, see Subtopic 946-20.
","snippet":"For accounting for offering costs by investment companies, see Subtopic 946-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8a44cd7575f48fde53e02504a9a94ec1ba19ee10eb62caa1834192c269dbe27","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b54f2ce092edb5ad4c48d66cc0d509050c936790e9bd8788314ec5a688092cb","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Financial Services—Title Plant","paragraphs":[{"citation":"340-10-60-16","para":"60-16","html":"
For capitalization guidance for costs incurred to construct a title plant, see paragraph 950-350-30-1.
","snippet":"For capitalization guidance for costs incurred to construct a title plant, see paragraph 950-350-30-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2859ceb9936e9312f2ed2c114bd02998501f2cba44b09cb75bb16381840d551","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9842da8e0cddc2292d4d16632a9cf5f81073ebb2c01ac806b6682929901a0b7b","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"block":null,"heading":"Software","paragraphs":[{"citation":"340-10-60-17","para":"60-17","html":"
For accounting for the costs of computer software to be sold, leased, or otherwise marketed, see Subtopic 985-20.
","snippet":"For accounting for the costs of computer software to be sold, leased, or otherwise marketed, see Subtopic 985-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e1b88f08c3778db8827a62ebd1c33345a684ef463e76848f64e632d5ecab8a7","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c719193ae7df39a01a6557866609a79054b17bc932132a06dbe22db0c141c049","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6214a7e5cc9a9e26d2be9bbbe4dce485fefd4c14273ebcd874d7e501bb011eea","downloaded_from":"2026-09-09T23:54:39.128Z","last_downloaded_at":"2026-09-09T23:54:39.128Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482982","source_sha256":"100fb827955474219c36f4c3571aef4518f67bfd177cec2c15798a6765851194"}},{"number":"S00","label":"SEC 00 Status","anchor":"sec-00-status","is_sec":true,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-10-S00-1","para":"S00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
340-10-S99-2AmendedAccounting Standards Update No. 2012-0308/27/2012
340-10-S99-2AmendedAccounting Standards Update No. 2010-2208/19/2010
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n340-10-S99-2 | Amended | Accounting Standards Update No. 2012-03 | 08/27/2012 |\n340-10-S…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3a99568c949540160d30989cba599e54f0f06a65707072815a070c9f70d8600","downloaded_from":"2026-09-09T23:54:45.903Z","last_downloaded_at":"2026-09-09T23:54:45.903Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480551","source_sha256":"30b286462343e62a74e0a603ee2710c957a1f81a8225d3a4ae01bde93ba21cbd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae1a966b67bd7c038ece8928476b71e367015d7dc6e6abb2406e7bdd50f925e6","downloaded_from":"2026-09-09T23:54:45.903Z","last_downloaded_at":"2026-09-09T23:54:45.903Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480551","source_sha256":"30b286462343e62a74e0a603ee2710c957a1f81a8225d3a4ae01bde93ba21cbd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1f028dda54e17c1e4f05b650b070d70bd887e9f82a7ee01d614086c46b93761","downloaded_from":"2026-09-09T23:54:45.903Z","last_downloaded_at":"2026-09-09T23:54:45.903Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480551","source_sha256":"30b286462343e62a74e0a603ee2710c957a1f81a8225d3a4ae01bde93ba21cbd"}},{"number":"S25","label":"SEC 25 Recognition","anchor":"sec-25-recognition","is_sec":true,"groups":[{"block":null,"heading":"Expenses Incurred Before the Effective Date of an Offering of Equity Securities","paragraphs":[{"citation":"340-10-S25-1","para":"S25-1","html":"
See paragraph 340-10-S99-1, SAB Topic 5.A, for SEC Staff views on deferral of costs related to an equity offering incurred before the effective date of the offering.
","snippet":"See paragraph 340-10-S99-1, SAB Topic 5.A, for SEC Staff views on deferral of costs related to an equity offering incurred before the effective date of the offering.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:823a5986e47ade756e4e3fa4aca0e22e8f7fa78b34cbf34070d7a2cc0d5e74dd","downloaded_from":"2026-09-09T23:54:48.227Z","last_downloaded_at":"2026-09-09T23:54:48.227Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480519","source_sha256":"bb8736589f89d9adb4cf0bc4de750f66c6cfdfafe32bb76fe4e3eedbe3c47d02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71573dbc27be94e1b3c05aec9ce053710a35cf27a61c3d5b7a6fb5f52dcf28d0","downloaded_from":"2026-09-09T23:54:48.227Z","last_downloaded_at":"2026-09-09T23:54:48.227Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480519","source_sha256":"bb8736589f89d9adb4cf0bc4de750f66c6cfdfafe32bb76fe4e3eedbe3c47d02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3fefaebc6f762524fa1a4d17efd1b04e6ef4ad392161cd8dea61da1269f8945e","downloaded_from":"2026-09-09T23:54:48.227Z","last_downloaded_at":"2026-09-09T23:54:48.227Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480519","source_sha256":"bb8736589f89d9adb4cf0bc4de750f66c6cfdfafe32bb76fe4e3eedbe3c47d02"}},{"number":"S30","label":"SEC 30 Initial Measurement","anchor":"sec-30-initial-measurement","is_sec":true,"groups":[{"block":null,"heading":"Debt Issue Costs in Conjunction with a Business Combination","paragraphs":[{"citation":"340-10-S30-1","para":"S30-1","html":"
See paragraph 340-10-S99-2, SAB Topic 2.A.6, Question 1, for SEC Staff views on accounting for debt issues costs paid to an investment banker in connection with a business combination.
","snippet":"See paragraph 340-10-S99-2, SAB Topic 2.A.6, Question 1, for SEC Staff views on accounting for debt issues costs paid to an investment banker in connection with a business combination.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aba87285f991f334f3cad7684dc231f6f9bc447c0bfcf895416f4190e2a61d67","downloaded_from":"2026-09-09T23:54:49.884Z","last_downloaded_at":"2026-09-09T23:54:49.884Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480488","source_sha256":"662cdff204864e8812d52cc52fd95cb3ebfacc6392f90f11c04237fddad45dfb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e96c97757f127ff1bee65d5592a78d16abad57a4ea4678d8ca1b40605759428","downloaded_from":"2026-09-09T23:54:49.884Z","last_downloaded_at":"2026-09-09T23:54:49.884Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480488","source_sha256":"662cdff204864e8812d52cc52fd95cb3ebfacc6392f90f11c04237fddad45dfb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6679bf6624038297b8aebbaa725cc1e2321fb45dfb4d58c76002bc08aa4ebb0c","downloaded_from":"2026-09-09T23:54:49.884Z","last_downloaded_at":"2026-09-09T23:54:49.884Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480488","source_sha256":"662cdff204864e8812d52cc52fd95cb3ebfacc6392f90f11c04237fddad45dfb"}},{"number":"S35","label":"SEC 35 Subsequent Measurement","anchor":"sec-35-subsequent-measurement","is_sec":true,"groups":[{"block":null,"heading":"Debt Issue Costs in Conjunction with a Business Combination","paragraphs":[{"citation":"340-10-S35-1","para":"S35-1","html":"
See paragraph 340-10-S99-2, SAB Topic 2.A.6, Question 1, for SEC Staff views on the amortization of debt issue costs for interim \"bridge financing.\"
","snippet":"See paragraph 340-10-S99-2, SAB Topic 2.A.6, Question 1, for SEC Staff views on the amortization of debt issue costs for interim \"bridge financing.\"","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4095b3194c82df802046c5fef70bfc2c2967c7b2157fc11c635a0a3777f2f71","downloaded_from":"2026-09-09T23:54:51.546Z","last_downloaded_at":"2026-09-09T23:54:51.546Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480458","source_sha256":"c993b9330a7f3240a921de3caea20f1cf4920ca13e3f7d0cfea28aaf759ceae4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d98df3dab94d2d460c3654d30c1e32a3078eeeaa6c77b7a4c8e89003ee7eea7","downloaded_from":"2026-09-09T23:54:51.546Z","last_downloaded_at":"2026-09-09T23:54:51.546Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480458","source_sha256":"c993b9330a7f3240a921de3caea20f1cf4920ca13e3f7d0cfea28aaf759ceae4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce6bfc1ca0c75ee0be2c1521922a2d6262fc016680e741448509dc5ceacdeacd","downloaded_from":"2026-09-09T23:54:51.546Z","last_downloaded_at":"2026-09-09T23:54:51.546Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480458","source_sha256":"c993b9330a7f3240a921de3caea20f1cf4920ca13e3f7d0cfea28aaf759ceae4"}},{"number":"S45","label":"SEC 45 Other Presentation Matters","anchor":"sec-45-other-presentation-matters","is_sec":true,"groups":[{"block":null,"heading":"Balance Sheet Presentation of Deferred Charges","paragraphs":[{"citation":"340-10-S45-1","para":"S45-1","html":"
See paragraph 210-10-S99-1, Regulation S-X Rule 5-02.17, for required balance sheet presentation for deferred charges and other assets.
","snippet":"See paragraph 210-10-S99-1, Regulation S-X Rule 5-02.17, for required balance sheet presentation for deferred charges and other assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e4acf8d75e83d9f78a376b4e424f8e3df2832e731d6e0737674fe6eb3b4a00e","downloaded_from":"2026-09-09T23:54:55.217Z","last_downloaded_at":"2026-09-09T23:54:55.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480432","source_sha256":"c430b09b72f2f5d346e205f56407814c5b6898a2bbe475de0ef67f2494a0a0ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:298a61cd9130589b800089949d17acdd72b47b573fdda3211ae388757dfea654","downloaded_from":"2026-09-09T23:54:55.217Z","last_downloaded_at":"2026-09-09T23:54:55.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480432","source_sha256":"c430b09b72f2f5d346e205f56407814c5b6898a2bbe475de0ef67f2494a0a0ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fa6f2639ba6da98d2228087592de15b00075f4bc1bebf53d4a69e3a787efb5d","downloaded_from":"2026-09-09T23:54:55.217Z","last_downloaded_at":"2026-09-09T23:54:55.217Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480432","source_sha256":"c430b09b72f2f5d346e205f56407814c5b6898a2bbe475de0ef67f2494a0a0ce"}},{"number":"S50","label":"SEC 50 Disclosure","anchor":"sec-50-disclosure","is_sec":true,"groups":[{"block":null,"heading":"Pre-Production Costs Related to Long-Term Supply Agreements","paragraphs":[{"citation":"340-10-S50-1","para":"S50-1","html":"
See paragraph 340-10-S99-3, SEC Observer Comment: Accounting for Pre-Production Costs Related to Long-Term Supply Arrangements, for SEC Staff views on disclosure of accounting policy and other matters pertaining to pre-production design and development costs.
","snippet":"See paragraph 340-10-S99-3, SEC Observer Comment: Accounting for Pre-Production Costs Related to Long-Term Supply Arrangements, for SEC Staff views on disclosure of accounting policy and other matters pertaining to pre-p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc7531133ae9f44bedfc627abe46ecf642e82bb663e1c877b9a6075e5765731d","downloaded_from":"2026-09-09T23:54:58.602Z","last_downloaded_at":"2026-09-09T23:54:58.602Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480402","source_sha256":"cf4e8d8e138308663f4f46a457feb9d4931b20945b39f3300fe2cb51cd3fc767"}},{"citation":"340-10-S50-2","para":"S50-2","html":"
See paragraph 210-10-S99-1, Regulation S-X Rule 5-02.17, for the requirement to disclose policy for deferral and amortization of deferred costs.
","snippet":"See paragraph 210-10-S99-1, Regulation S-X Rule 5-02.17, for the requirement to disclose policy for deferral and amortization of deferred costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:805e522708d5bd8a47b02a6de91603b1a0ec3b809375058a412c9b92c8e1c39a","downloaded_from":"2026-09-09T23:54:58.602Z","last_downloaded_at":"2026-09-09T23:54:58.602Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480402","source_sha256":"cf4e8d8e138308663f4f46a457feb9d4931b20945b39f3300fe2cb51cd3fc767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b041f803e28e21c8db9d8ed44c52af2b5a95e5ff6bbc4e2484b37f7f52de9df","downloaded_from":"2026-09-09T23:54:58.602Z","last_downloaded_at":"2026-09-09T23:54:58.602Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480402","source_sha256":"cf4e8d8e138308663f4f46a457feb9d4931b20945b39f3300fe2cb51cd3fc767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66991a5cb3df6c73aa94835c47ba313b2384d485ecc8c9f99f8589ee8b1c4744","downloaded_from":"2026-09-09T23:54:58.602Z","last_downloaded_at":"2026-09-09T23:54:58.602Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480402","source_sha256":"cf4e8d8e138308663f4f46a457feb9d4931b20945b39f3300fe2cb51cd3fc767"}},{"number":"S99","label":"SEC 99 SEC Materials","anchor":"sec-99-sec-materials","is_sec":true,"groups":[{"block":null,"heading":"SEC Staff Guidance","paragraphs":[{"citation":"340-10-S99-1","para":"S99-1","html":"
The following is the text of SAB Topic 5.A, Expenses of Offering.
","snippet":"The following is the text of SAB Topic 5.A, Expenses of Offering.\nFacts: Prior to the effective date of an offering of equity securities, Company Y incurs certain expenses related to the offering.\nQuestion: Should such c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b20163ac5d676ada1468c80292be4a5b99417acf0520498eaa486ab0c8c5d58b","downloaded_from":"2026-09-09T23:55:04.724Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480341","source_sha256":"d80074bb686cca4f96ded8d0f27405006f313383b3b2c40ed6d3a69c1cecc2f6"}},{"citation":"340-10-S99-2","para":"S99-2","html":"
The following is the text of SAB Topic 2.A.6, Debt Issue Costs in Conjunction with a Business Combination.
","snippet":"The following is the text of SAB Topic 2.A.6, Debt Issue Costs in Conjunction with a Business Combination.\nFacts: Company A is to acquire the net assets of Company B in a transaction to be accounted for as a business com…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f7bd69ee56bd97204b859632f51ed0e3c4e6dff7f819d72fb71fda86a3428ec5","downloaded_from":"2026-09-09T23:55:04.724Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480341","source_sha256":"d80074bb686cca4f96ded8d0f27405006f313383b3b2c40ed6d3a69c1cecc2f6"}},{"citation":"340-10-S99-3","para":"S99-3","html":"
The following is the text of SEC Observer Comment: Accounting for Pre-Production Costs Related to Long-Term Supply Arrangements.
","snippet":"The following is the text of SEC Observer Comment: Accounting for Pre-Production Costs Related to Long-Term Supply Arrangements.\nRegistrants will be expected to disclose their accounting policy for pre-production design …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d103585058bdea9e23626b55fdaac803e047767247d597da1a74e75e6778a212","downloaded_from":"2026-09-09T23:55:04.724Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480341","source_sha256":"d80074bb686cca4f96ded8d0f27405006f313383b3b2c40ed6d3a69c1cecc2f6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa8dad1465c9ba643f05ddd5453c3056ecafe97ec49e3e1cd3401c28dd400683","downloaded_from":"2026-09-09T23:55:04.724Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480341","source_sha256":"d80074bb686cca4f96ded8d0f27405006f313383b3b2c40ed6d3a69c1cecc2f6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7cb260014a29d9d06fba24329e3c2c29353788851d0fb2c8500fdb1b43b07af0","downloaded_from":"2026-09-09T23:55:04.724Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480341","source_sha256":"d80074bb686cca4f96ded8d0f27405006f313383b3b2c40ed6d3a69c1cecc2f6"}}],"enrichment":{"summary":"ASC 340-10 is the Overall subtopic for Other Assets and Deferred Costs, applicable to all entities. Its substantive guidance is limited to (1) describing prepaid expenses — amounts paid in advance (insurance, interest, rents, taxes, unused royalties, prepaid advertising service, operating supplies) that are used up within the normal operating cycle and classified as current assets — and (2) the recognition rules for preproduction design and development costs incurred under long-term supply arrangements. Costs deferred under other regimes (loan origination costs, internal-use software, environmental costs, broker-dealer and industry costs) are addressed by other Topics cross-referenced in Section 60.","key_points":["Design and development costs for the products themselves to be sold under a long-term supply arrangement shall be expensed as incurred (340-10-25-1).","Design and development costs for molds, dies, and other tools the supplier will own are capitalized as part of those tools, subject to impairment testing under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10, unless the tools involve new technology, in which case the costs are expensed under Subtopic 730-10 (340-10-25-1).","Design and development costs for molds, dies, and tools the supplier will not own are capitalized only if the supply arrangement gives the supplier a noncancelable right to use them during the arrangement (while performing); otherwise they are expensed as incurred, including costs incurred before that right is obtained (340-10-25-2).","Costs that would otherwise be expensed are recognized as an asset as incurred if a contractual guarantee for reimbursement exists — a legally enforceable agreement in which the reimbursement amount can be objectively measured and verified (340-10-25-3); Examples 1-4 at 340-10-55-2 through 55-5 illustrate that per-part pricing arrangements without a measurable reimbursement do not qualify.","Prepaid expenses are paid in advance of use, are typically consumed within the normal operating cycle, and are classified as current assets (340-10-05-4 through 05-5; see 210-10-45-2).","The accrue-in-advance (accrual) method of accounting for planned major maintenance activities is prohibited in annual and interim periods (340-10-25-5, referencing 360-10-25-5).","The Topic applies to all entities (340-10-15-2), and long-term prepaid assets are evaluated under the long-lived asset guidance at 360-10-15-4 through 15-5 (340-10-35-1)."],"categories":["Recognition","Inventory and PP&E","Subsequent measurement","Financial statement presentation"],"audience_level":"intermediate","student_note":"The exam trap is assuming all preproduction costs under a supply contract can be deferred: product design and development costs are expensed unless there is a contractual guarantee whose reimbursement amount is objectively measurable and verifiable, and tooling costs are capitalizable only if the supplier owns the tools (non-new-technology) or holds a noncancelable right to use them. Note also that 340-10 is mostly a signpost — specific deferred costs live in other Topics (310-20, 350-40, 340-40, 985-20).","related_topics":["340-40","360-10","730-10","350-40","310-20","210-10"],"key_concepts":["prepaid expenses","preproduction costs","long-term supply arrangement","design and development costs","molds, dies, and other tools","contractual guarantee of reimbursement","noncancelable right to use","planned major maintenance"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce0a0a5e5e992dca2be5cb064a40e3df377e44aca3d6f45019d839c65b01148f","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"730-20","title":"Research and Development Arrangements","topic_title":"Research and Development","score":0.7814,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8bc29f2b33cd42122615c48bdbcf2cac074c5003f3c71e3d5b392b4d6e285ca","downloaded_from":"2026-09-10T01:14:58.781Z","last_downloaded_at":"2026-09-10T01:15:40.514Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-30","title":"Imputation of Interest","topic_title":"Interest","score":0.7809,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bea6dd730957d3de06200e20033b328abc31d1bd368fe00b01e3167ea24b36d2","downloaded_from":"2026-09-10T01:49:32.218Z","last_downloaded_at":"2026-09-10T01:50:15.507Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"440-10","title":"Overall","topic_title":"Commitments","score":0.7772,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:903e4e50db2cbb183e7b6a6d4584b1a7e472572cc8b2654f6dd76cc9815c7cea","downloaded_from":"2026-09-10T00:25:16.890Z","last_downloaded_at":"2026-09-10T00:25:37.457Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"730-10","title":"Overall","topic_title":"Research and Development","score":0.7628,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07e65ca39a358cb61e979c5786e3d9e96090b9105379557b783faf02096b4933","downloaded_from":"2026-09-10T01:14:28.594Z","last_downloaded_at":"2026-09-10T01:14:54.866Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-10","title":"Overall","topic_title":"Receivables","score":0.7614,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22acb7f979fd9f9b9e8f4c3efb4572a762ded0c905376587fb9fd3134aae3b9e","downloaded_from":"2026-09-09T23:24:42.337Z","last_downloaded_at":"2026-09-09T23:25:40.463Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"985-20","title":"Costs of Software to Be Sold, Leased, or Marketed","topic_title":"Software","score":0.7613,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c92a370565760b869ec87e958586dc149158a7b50d95fffc13106fe85b81d8b","downloaded_from":"2026-09-10T02:28:26.033Z","last_downloaded_at":"2026-09-10T02:28:54.478Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"330-985","title":"Software","topic_title":"Inventory","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3618a1ec6ea63aa7238c101e7d3771e5cb10ac1bea0c006911c38b1e1940935","downloaded_from":"2026-09-09T23:53:59.630Z","last_downloaded_at":"2026-09-09T23:54:12.400Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-20","title":"Capitalized Advertising Costs","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:da4d2422c5ef3fa3f5118d3a8655847423ed63445f6d303619387fef73d1076e","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:37.801Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55b3ac3afa2aa0d128c321b097396c7061a3c9f0b04fcce9df5782b03085e575","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-20","topic":"340","title":"Capitalized Advertising Costs","area":"Assets","paragraphs":40,"summary":"ASC 340-20 formerly governed capitalized advertising costs (including direct-response advertising) — when such costs could be recorded as assets, how they were measured, amortized, tested for realizability, presented, and disclosed. Every paragraph in the subtopic (Sections 05, 15, 25, 30, 35, 45, 50, 55, and 60) has been superseded by Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance; advertising costs are now expensed as incurred (or the first time the advertising takes place) under ASC 720-35, and contract-related costs are addressed by ASC 340-40.","concepts":["capitalized advertising costs","direct-response advertising","superseded guidance","expense as incurred","costs to obtain a contract","transition to asc 606"],"categories":["Transition and effective dates","Recognition","Subsequent measurement"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
340-20-05-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-05-2 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-15-1 through 15-4
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-25-1 through 25-18
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-30-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-30-2 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-35-1 through 35-7
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-45-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-50-1 Amended Maintenance Update 2016-11 (PDF) 06/27/2016
340-20-50-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-55-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
340-20-60-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n340-20-05-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |\n340-20…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed2e0d160aca59a27bec5a866a93c853ec8cb7cf59301b5c7648be81f3ffd5c5","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:08.697Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482927","source_sha256":"dbc5fdc9fc198f88feeed4f312485983374de28d34760e07ec8c44d2fca2d86d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:571af766028513698fa63576bc133757722e3d1a4721d69329e101a6b5b65d0d","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:08.697Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482927","source_sha256":"dbc5fdc9fc198f88feeed4f312485983374de28d34760e07ec8c44d2fca2d86d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6aac14cfcccd40b0ad9a3e72402a3a9124eff0d7430abc723698e6c8ac3629dd","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:08.697Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482927","source_sha256":"dbc5fdc9fc198f88feeed4f312485983374de28d34760e07ec8c44d2fca2d86d"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-05-1","para":"05-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ecb2a2f390ae10c379ddc33d46963e3d485d18e469697a212f777ce046203dd","downloaded_from":"2026-09-09T23:55:12.516Z","last_downloaded_at":"2026-09-09T23:55:12.516Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483106","source_sha256":"6ed83c16ba3aa088d67f1788db1cab1100de05f06ced07c028a2e1bd66b1a1e2"}},{"citation":"340-20-05-2","para":"05-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:361c1c2166c71a07acbf03a97b495601f0e83bf533079ac7d64df6319e58ebd3","downloaded_from":"2026-09-09T23:55:12.516Z","last_downloaded_at":"2026-09-09T23:55:12.516Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483106","source_sha256":"6ed83c16ba3aa088d67f1788db1cab1100de05f06ced07c028a2e1bd66b1a1e2"}},{"citation":"340-20-05-3","para":"05-3","html":"
[Not used]
","snippet":"[Not used]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:922b5219aaac37fa53020c209b02f86c07638cffdbe6078ffbef2695a994dbe9","downloaded_from":"2026-09-09T23:55:12.516Z","last_downloaded_at":"2026-09-09T23:55:12.516Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483106","source_sha256":"6ed83c16ba3aa088d67f1788db1cab1100de05f06ced07c028a2e1bd66b1a1e2"}},{"citation":"340-20-05-4","para":"05-4","html":"
[Not used]
","snippet":"[Not used]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:794ccaf9b5d6967a8a9941c7a533d658e23d9cb1dee1bbb5d12c0e3e41ae38d0","downloaded_from":"2026-09-09T23:55:12.516Z","last_downloaded_at":"2026-09-09T23:55:12.516Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483106","source_sha256":"6ed83c16ba3aa088d67f1788db1cab1100de05f06ced07c028a2e1bd66b1a1e2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:844c3a9f5e70b2594620196c4f66fce33d24823c70d2af69e36b31f06e3e81d3","downloaded_from":"2026-09-09T23:55:12.516Z","last_downloaded_at":"2026-09-09T23:55:12.516Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483106","source_sha256":"6ed83c16ba3aa088d67f1788db1cab1100de05f06ced07c028a2e1bd66b1a1e2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03dba2377e73ddb38f5a9d9877a4cd488747a941cee08c083a9c7011d4b38c74","downloaded_from":"2026-09-09T23:55:12.516Z","last_downloaded_at":"2026-09-09T23:55:12.516Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483106","source_sha256":"6ed83c16ba3aa088d67f1788db1cab1100de05f06ced07c028a2e1bd66b1a1e2"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-15-1","para":"15-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec149fd59d81fada2cb2dcdd0aa76b4b3a89f01133ce93adedb2043660ec3061","downloaded_from":"2026-09-09T23:55:15.620Z","last_downloaded_at":"2026-09-09T23:55:15.620Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483078","source_sha256":"bdbe43cfb098ee4d4024971247d7b866215d5b24247ea2740cd0acaaf5bb9b36"}},{"citation":"340-20-15-2","para":"15-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1f9fd7ebc8877cc3870a6ce27449d62f60a18ee81fef0e192c0e37d6f4312bb","downloaded_from":"2026-09-09T23:55:15.620Z","last_downloaded_at":"2026-09-09T23:55:15.620Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483078","source_sha256":"bdbe43cfb098ee4d4024971247d7b866215d5b24247ea2740cd0acaaf5bb9b36"}},{"citation":"340-20-15-3","para":"15-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75cdf92f70b3a50bda08a8c5423887584564967e44324e2b52f76e2ef470fb1e","downloaded_from":"2026-09-09T23:55:15.620Z","last_downloaded_at":"2026-09-09T23:55:15.620Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483078","source_sha256":"bdbe43cfb098ee4d4024971247d7b866215d5b24247ea2740cd0acaaf5bb9b36"}},{"citation":"340-20-15-4","para":"15-4","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87a4b747e03fe7dbc596eecd454b05f7c45e703bbf8c913acf9cda202eb54c3a","downloaded_from":"2026-09-09T23:55:15.620Z","last_downloaded_at":"2026-09-09T23:55:15.620Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483078","source_sha256":"bdbe43cfb098ee4d4024971247d7b866215d5b24247ea2740cd0acaaf5bb9b36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a759a5f72681a91d884c103b40df13a4e5a3770f69ef3ded73ac84477f69838a","downloaded_from":"2026-09-09T23:55:15.620Z","last_downloaded_at":"2026-09-09T23:55:15.620Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483078","source_sha256":"bdbe43cfb098ee4d4024971247d7b866215d5b24247ea2740cd0acaaf5bb9b36"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45032f3ad38f2424f9c4b9ead510778fb7293b09982cef719f8aa8a847793220","downloaded_from":"2026-09-09T23:55:15.620Z","last_downloaded_at":"2026-09-09T23:55:15.620Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483078","source_sha256":"bdbe43cfb098ee4d4024971247d7b866215d5b24247ea2740cd0acaaf5bb9b36"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-25-1","para":"25-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd764b57744e0ad1e2c062121700100757fda5ba424782d4141721dc11cb16eb","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-2","para":"25-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a64fd889099bce77723499d6933da3ed02743cf4e323871fa61c4007cdd73ad0","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-3","para":"25-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c1ae53c3ceb3bbad87fa6021f47c9b36f4c8d68472fa39cc9dcad57f6cb64887","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-4","para":"25-4","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96adba3bf2660bc7a2759a2ebaeb6e26bcad522b1aee32c90c2e53d18bec8cfa","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-5","para":"25-5","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e6fd2f0920b62670b564788719f5788cd5efd3e850619d2ddd1182f81999141","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-6","para":"25-6","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14123c254d96e750f666b48c03f472fe23fcae6cbc9017f9ce0dd438b4ba3185","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-7","para":"25-7","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b3ad33f4acee812dc93d986ac2ed5f2c2502afeb9b14a43cdc1a281dace4bc9","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-8","para":"25-8","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1db5d128ff9bc4e001f3b17a528a1d68e8b8315d8fc3c6aeedcd62ddf4375de9","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-9","para":"25-9","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45ec2d1f557cfe8d872c85c8bde8218c21aef87bb1537a5e2717519c00dac029","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-10","para":"25-10","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc74952b9bf88545bfd85de737f7b3198b3cfebfe1430356b6cdaf56bfb94943","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-11","para":"25-11","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1851c5b887e9ab13d129779efc67fe97ed24e2bf5fbd70c78a31bc1e1cca8799","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-12","para":"25-12","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09f98ed937d8302b75c4aba1c0922b2160c96212436259e89d8edde9152985b6","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-13","para":"25-13","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b3eca7c57cafcb1abd7bc9d1423f1a9ab3bac728a3cddac3cc83820fe46ae61","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-14","para":"25-14","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88d4205621779af8baae322217bca672cb338ebda6d030d480405e7ae397a34e","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-15","para":"25-15","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aecd6fb53e2b5ac6e40e0de657c29a6e9d3865effe44d3734fa8556ef07c7510","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-16","para":"25-16","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb03a8c70933c6c5eb33b0671277f5344c42b17ed0849be859a2c4da36fb3e27","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-17","para":"25-17","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:872ace039451de196d7b79b840abdff1578bfd297047e3e095aadeaf8fa6ec64","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"citation":"340-20-25-18","para":"25-18","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63e414d0bc4f334f934f005ba420a0fa49ae38ed4876794e30369b0f46096593","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f2f8ce718ef2272b20b949aa79b7e1332483065abd6d0cf1a5a086b5eb04602","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19f5dd36b053736a322892f0a56e8768348b2e2717b6ac292844bbd6be3db60b","downloaded_from":"2026-09-09T23:55:17.509Z","last_downloaded_at":"2026-09-09T23:55:17.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483053","source_sha256":"b3e4e599c3250e3e92ebd738101d1f5a5e9ddfbc654d9f5c8f26e1cf98c35d53"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-30-1","para":"30-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31d3911f2fd44f5928b9813b6f6a980490405487a88e59509be085bd0d240c64","downloaded_from":"2026-09-09T23:55:20.537Z","last_downloaded_at":"2026-09-09T23:55:20.537Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483029","source_sha256":"849362e2751e44b3d30c5cab61ad3e131d095b839395831a3c93c8678503197d"}},{"citation":"340-20-30-2","para":"30-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b938a2c194315e2e05c264934bd5b5082539ba53095f8ba406a93f6cd8dae2c","downloaded_from":"2026-09-09T23:55:20.537Z","last_downloaded_at":"2026-09-09T23:55:20.537Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483029","source_sha256":"849362e2751e44b3d30c5cab61ad3e131d095b839395831a3c93c8678503197d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e4a567560a01c226da84c3cf37e4c904be93395144acd81a147ccb1c545e3ea","downloaded_from":"2026-09-09T23:55:20.537Z","last_downloaded_at":"2026-09-09T23:55:20.537Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483029","source_sha256":"849362e2751e44b3d30c5cab61ad3e131d095b839395831a3c93c8678503197d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:18614d3e22c7ff63373637a9d39993a78a5eddcfd37a2e3cc4e8cd99fb17e2cf","downloaded_from":"2026-09-09T23:55:20.537Z","last_downloaded_at":"2026-09-09T23:55:20.537Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483029","source_sha256":"849362e2751e44b3d30c5cab61ad3e131d095b839395831a3c93c8678503197d"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-35-1","para":"35-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a580a84ce462f6acb594dd66dd7d74eb682f8d0141ad7133f820f5f8d8b656fc","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}},{"citation":"340-20-35-2","para":"35-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d81c2a68b493b7e6344130592e4a39964c7602ffa09a9c5e59bfa96abac3a8b","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}},{"citation":"340-20-35-3","para":"35-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae7a7ca5e157a3fdc95e1361e9be19e0dcdf33d6a2e7544136d6bf2a7512d395","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}},{"citation":"340-20-35-4","para":"35-4","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8aa0740b1b034cf417a5b10743d18fab4cb42d757591249dff7f7dc5ef6630e8","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}},{"citation":"340-20-35-5","para":"35-5","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:596f66221ea89c50ecfbaadb697243e973fbaff1b89e81e7302c1c7514ac8a48","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}},{"citation":"340-20-35-6","para":"35-6","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec72a3fefaa201f544edd07024c8a72051e0d9fafa74657dbd58af597d84764d","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}},{"citation":"340-20-35-7","para":"35-7","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c13b4fbb75fe0229b5e45510557c9d93c730b9a4a4b5cb40c2ae4cb36648562","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8644811865fa4bbe6df04c18130d2fae3bc5977ec327a0aae9da21264d144bb","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:238259a871aa519421584cad78c72a0ecf0fdb9985f13e2b5acfbe509133d1e0","downloaded_from":"2026-09-09T23:55:22.344Z","last_downloaded_at":"2026-09-09T23:55:22.344Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483003","source_sha256":"2b793215ba1cf85d613cfb9c86a0afd29530f3e570e8105ea5b7377899f46dc4"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-45-1","para":"45-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:363ab37b2114d93778f1d0a2c080cb9b6ae5c4907d2c5787e620a23a8a05d092","downloaded_from":"2026-09-09T23:55:25.427Z","last_downloaded_at":"2026-09-09T23:55:25.427Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482979","source_sha256":"5edee337dfcda62680be05e98c8f4d05746d3829653b997a4a445a7c46157d6e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd209a4d6f6f0aea264cda07f1ae0adf9fdec862369d9cc98cf9a0cc60ca4c0b","downloaded_from":"2026-09-09T23:55:25.427Z","last_downloaded_at":"2026-09-09T23:55:25.427Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482979","source_sha256":"5edee337dfcda62680be05e98c8f4d05746d3829653b997a4a445a7c46157d6e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f65a20098d06522dd73352fb4cd709c91134ac451b3c11c6f06f9ad722b7469a","downloaded_from":"2026-09-09T23:55:25.427Z","last_downloaded_at":"2026-09-09T23:55:25.427Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482979","source_sha256":"5edee337dfcda62680be05e98c8f4d05746d3829653b997a4a445a7c46157d6e"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-50-1","para":"50-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30853db565e672e0b38908efa73cbd6697d660806b4f6cd26e4d2c97f3f11afc","downloaded_from":"2026-09-09T23:55:29.160Z","last_downloaded_at":"2026-09-09T23:55:29.160Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482958","source_sha256":"03df7f0a6829cb511f4efd28690fbee3484710fd80a250e8739bca5edee30816"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8d29e26aaf1b0487b3dc87d16837103dfc52520cb01725c164a820d6ee28fec2","downloaded_from":"2026-09-09T23:55:29.160Z","last_downloaded_at":"2026-09-09T23:55:29.160Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482958","source_sha256":"03df7f0a6829cb511f4efd28690fbee3484710fd80a250e8739bca5edee30816"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:132dbcf8d5b8161e676103ae0c7d91817b67faf0304a02c696701a7e20dc75c6","downloaded_from":"2026-09-09T23:55:29.160Z","last_downloaded_at":"2026-09-09T23:55:29.160Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482958","source_sha256":"03df7f0a6829cb511f4efd28690fbee3484710fd80a250e8739bca5edee30816"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-55-1","para":"55-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7700c467b5afb5a9b7e706acdac6a9aa7a31406f221346e3bff894d3b8466e80","downloaded_from":"2026-09-09T23:55:31.506Z","last_downloaded_at":"2026-09-09T23:55:31.506Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482932","source_sha256":"2e217e3a1b5b80607cd788b6fdc9d06f9d0d87669efe40d8b5f88c97afee4f85"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dbc9e9b11de516c211ee88af81718062d5fd758cfe9d04a775f16063887e207b","downloaded_from":"2026-09-09T23:55:31.506Z","last_downloaded_at":"2026-09-09T23:55:31.506Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482932","source_sha256":"2e217e3a1b5b80607cd788b6fdc9d06f9d0d87669efe40d8b5f88c97afee4f85"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d69abbcd1e4ea33ff114f73868045c8d9b8bb82fbe0440680c6954527932200","downloaded_from":"2026-09-09T23:55:31.506Z","last_downloaded_at":"2026-09-09T23:55:31.506Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482932","source_sha256":"2e217e3a1b5b80607cd788b6fdc9d06f9d0d87669efe40d8b5f88c97afee4f85"}},{"number":"60","label":"60 Relationships","anchor":"60-relationships","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-20-60-1","para":"60-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d90133cf85b1bde1a8e750b94c9ffb8de93b0f825f19c9c565bb6a3b4d3c6394","downloaded_from":"2026-09-09T23:55:35.169Z","last_downloaded_at":"2026-09-09T23:55:35.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483107","source_sha256":"f1829ab26022691dea0c18cb77b3b81ed2bad69f7478395aac7df30860b519b2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d66e8366699dba421534585cdcd9d3e617c30829ed1159b2c08472befcc932d2","downloaded_from":"2026-09-09T23:55:35.169Z","last_downloaded_at":"2026-09-09T23:55:35.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483107","source_sha256":"f1829ab26022691dea0c18cb77b3b81ed2bad69f7478395aac7df30860b519b2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cbb60e23fa122f3f4ce32f01f8a7624851c0514d55da7833e47904d8b3c00db","downloaded_from":"2026-09-09T23:55:35.169Z","last_downloaded_at":"2026-09-09T23:55:35.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483107","source_sha256":"f1829ab26022691dea0c18cb77b3b81ed2bad69f7478395aac7df30860b519b2"}}],"enrichment":{"summary":"ASC 340-20 formerly governed capitalized advertising costs (including direct-response advertising) — when such costs could be recorded as assets, how they were measured, amortized, tested for realizability, presented, and disclosed. Every paragraph in the subtopic (Sections 05, 15, 25, 30, 35, 45, 50, 55, and 60) has been superseded by Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance; advertising costs are now expensed as incurred (or the first time the advertising takes place) under ASC 720-35, and contract-related costs are addressed by ASC 340-40.","key_points":["All content of ASC 340-20 was superseded by ASU 2014-09; paragraphs 340-20-05-1 through 340-20-60-1 are marked 'superseded,' and 340-20-05-3 and 05-4 are '[Not used].'","Because no recognition (Section 25), measurement (Sections 30 and 35), presentation (Section 45), or disclosure (Section 50) guidance remains, an entity cannot look to 340-20 for authoritative support for capitalizing advertising costs.","The former exception permitting capitalization of direct-response advertising costs no longer exists in GAAP after adoption of ASU 2014-09.","Advertising costs are now accounted for under ASC 720-35, which requires expensing either as incurred or the first time the advertising takes place.","Incremental costs of obtaining a contract and costs to fulfill a contract that were once analogized to advertising capitalization are now evaluated under ASC 340-40.","Entities that had not yet adopted ASU 2014-09 applied the pre-amendment 340-20 guidance; transition is governed by ASC 606-10-65-1."],"categories":["Transition and effective dates","Recognition","Subsequent measurement"],"audience_level":"intermediate","student_note":"The whole subtopic is a shell — its only exam value is knowing that direct-response advertising capitalization was eliminated by ASU 2014-09. The common mistake is citing 340-20 as live authority for capitalizing advertising; go to ASC 720-35 (expense) or ASC 340-40 (contract costs) instead.","related_topics":["340-40","720-35","606-10","350-40","944-30"],"key_concepts":["capitalized advertising costs","direct-response advertising","superseded guidance","expense as incurred","costs to obtain a contract","transition to asc 606"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a27a63b0ea71cf5c5f36aeaf0cb2216e3357194e011dd565c0103ac52d3bf18c","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:37.801Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"340-952","title":"Franchisors","topic_title":"Other Assets and Deferred Costs","score":0.8061,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cfc213a7f148a5da944c2d5ad047bf4d3ce0fcb11792fa4e06b9c41e79b5b132","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-910","title":"Contractors—Construction","topic_title":"Other Assets and Deferred Costs","score":0.7921,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f789bc9f4d9a35c899948192a043613db7eb75c5cbe3957cc04e0276666fa4af","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"325-20","title":"Cost Method Investments","topic_title":"Investments—Other","score":0.7918,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65a9a9772d0e816b7ae4289de3a5270837c266af3d0cd17e80ff9c04345795cd","downloaded_from":"2026-09-09T23:43:27.068Z","last_downloaded_at":"2026-09-09T23:43:52.504Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-915","title":"Development Stage Entities","topic_title":"Other Assets and Deferred Costs","score":0.7857,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf52256f81ac9cd61b702eb5efc148f66fb2f9ba49f94477cbf9b324740363e0","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"325-944","title":"Financial Services—Insurance","topic_title":"Investments—Other","score":0.7711,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:52a9b33bed0dd2c381d59cee09c3265e25c2cd57356693657d566707de3b759c","downloaded_from":"2026-09-09T23:46:10.614Z","last_downloaded_at":"2026-09-09T23:46:35.252Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"605-970","title":"Real Estate—General","topic_title":"Revenue Recognition","score":0.7524,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6e0c69d556545a68fcd0e400c606843c91cc746e5abcd0bf54dba9f6c9176d4","downloaded_from":"2026-09-10T00:51:52.240Z","last_downloaded_at":"2026-09-10T00:52:20.317Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-10","title":"Overall","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9fdb5c62edb35126692d0636d92d67b9997e3434a8c7db0f3b16025db1d01930","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-30","title":"Insurance Contracts That Do Not Transfer Insurance Risk","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c002a5860d54181b4ee059ddc210ef784fdd08f568831a0261010d32093e2964","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:56:05.098Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a5a93a81efb5d19fee2ae8ce24c83273644cb45c6e9a95e17dbad58e06f46a8","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:37.801Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-30","topic":"340","title":"Insurance Contracts That Do Not Transfer Insurance Risk","area":"Assets","paragraphs":47,"summary":"ASC 340-30 tells you how to apply the deposit method of accounting to insurance and reinsurance contracts that fail to transfer insurance risk (which requires transfer of both timing risk and underwriting risk). At inception a deposit asset or liability is recognized at consideration paid or received less explicitly identified premiums or fees retained (340-30-25-1; 340-30-30-1). Subsequent measurement depends on which of four risk categories the contract falls into: effective-yield/interest-method accretion for timing-risk-only or no-risk contracts, unexpired-coverage plus present value of expected recoveries for underwriting-risk-only contracts, and the open-year method for indeterminate-risk contracts.","concepts":["deposit method of accounting","insurance risk transfer","timing risk","underwriting risk","indeterminate risk","open-year method","effective yield / interest method","unexpired portion of coverage"],"categories":["Recognition","Initial measurement","Subsequent measurement","Industry-specific"],"level":"advanced","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-30-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ReinsuranceAddedAccounting Standards Update No. 2016-1912/14/2016
340-30-15-2AmendedAccounting Standards Update No. 2016-1912/14/2016
340-30-25-1AmendedAccounting Standards Update No. 2016-1912/14/2016
340-30-35-1AmendedAccounting Standards Update No. 2016-1912/14/2016
340-30-45-3AmendedAccounting Standards Update No. 2016-1912/14/2016
340-30-50-2AmendedAccounting Standards Update No. 2024-0311/04/2024
340-30-50-2AmendedAccounting Standards Update No. 2016-1912/14/2016
340-30-55-2AmendedAccounting Standards Update No. 2016-1912/14/2016
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nReinsurance | Added | Accounting Standards Update No. 2016-19 | 12/14/2016 |\n| | | |\n340…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03a7c80f2668084e362ff4aad71858ec09fa02bc871a5d14360088800a4c12a8","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:55:41.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483061","source_sha256":"9b88b60e9e2636717673ea32591dffe39195c9ba22b3b65f023743cd48a77b49"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c244096de221c8a361090dacf6906489b6892d314dc81cde99b2b2f019af0524","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:55:41.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483061","source_sha256":"9b88b60e9e2636717673ea32591dffe39195c9ba22b3b65f023743cd48a77b49"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7dabf92dd9c70b6d2dab2e15fc13827cf9e52e69b35dcbcc493a182ccbb45165","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:55:41.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483061","source_sha256":"9b88b60e9e2636717673ea32591dffe39195c9ba22b3b65f023743cd48a77b49"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-30-05-1","para":"05-1","html":"
This Subtopic provides guidance on how to apply the deposit method of accounting when it is required for insurance and reinsurance contracts that do not transfer insurance risk. These contracts may be prospective or retroactive in nature.
","snippet":"This Subtopic provides guidance on how to apply the deposit method of accounting when it is required for insurance and reinsurance contracts that do not transfer insurance risk. These contracts may be prospective or retr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a691ab5b05e0ce315109bc43cf3572bc7386e89304834c02c7f8c41e853cde8e","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"citation":"340-30-05-2","para":"05-2","html":"
The transfer of insurance risk requires transferring both timing risk and underwriting risk. Therefore, four possible categories for deposit arrangements have been identified as follows:
  1. a
    An insurance or reinsurance contract that transfers only significant timing risk.
  2. b
    An insurance or reinsurance contract that transfers only significant underwriting risk.
  3. c
    An insurance or reinsurance contract that transfers neither significant timing nor significant underwriting risk.
  4. d
    An insurance or reinsurance contract with an indeterminate risk.
","snippet":"The transfer of insurance risk requires transferring both timing risk and underwriting risk. Therefore, four possible categories for deposit arrangements have been identified as follows:\n(a) An insurance or reinsurance c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96a233ca5e2d988229ee2eda9af672b8e4c8574613660ed497092cfd65ac2347","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2a115e107f4cb9898a2b844922ab7cb208a4e2753f83a4ef9cdbfdbd8e9d35c9","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"block":null,"heading":"An Insurance or Reinsurance Contract that Transfers Only Significant Timing Risk","paragraphs":[{"citation":"340-30-05-3","para":"05-3","html":"
For an insurance or reinsurance contract to be considered to have transferred significant timing risk, the timing of the loss reimbursement under the contract must be based on the timing of the loss event.
","snippet":"For an insurance or reinsurance contract to be considered to have transferred significant timing risk, the timing of the loss reimbursement under the contract must be based on the timing of the loss event.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7dd23d36c84f03cb32fd74375883dbe6acce65feff02caa1c25710ac97d4e451","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"citation":"340-30-05-4","para":"05-4","html":"
The timing of the loss reimbursement under an insurance contract would be based on the timing of the payment with respect to the loss event. For reinsurance contracts, the timing of the loss reimbursement under the contract would be based on the timing of payment by the insured (reinsured) of the underlying loss, as well as when recovery is expected from the reinsurer.
","snippet":"The timing of the loss reimbursement under an insurance contract would be based on the timing of the payment with respect to the loss event. For reinsurance contracts, the timing of the loss reimbursement under the contr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6372ba1e80077df0e7b05a95f17e4655bfe08cbce2157987d6215928e07aa5f","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"citation":"340-30-05-5","para":"05-5","html":"
An insurance or reinsurance contract that transfers only significant timing risk limits the amount of underwriting risk to which the insurer or reinsurer is subject and is commonly entered into by the insured or ceding entity to provide liquidity. These limitations may result in an insufficient transfer of insurance risk. For example, insurance and reinsurance contracts that provide for experience adjustments may indicate that a sufficient amount of underwriting risk has not been transferred. The recovery of the amount of the initial deposit for a contract that transfers only significant timing risk is not substantially dependent on future loss experience of the insured.
","snippet":"An insurance or reinsurance contract that transfers only significant timing risk limits the amount of underwriting risk to which the insurer or reinsurer is subject and is commonly entered into by the insured or ceding e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55de193a8394b938b5b23516b52c64580fc9ac6ef1a753dd7949d108ae502f4c","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ab50dc0d0253551e53bb9372bcc5855453258819f73c47ce7b576b12e770ddd","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"block":null,"heading":"An Insurance or Reinsurance Contract that Transfers Only Significant Underwriting Risk","paragraphs":[{"citation":"340-30-05-6","para":"05-6","html":"
For an insurance or reinsurance contract to be considered to have transferred significant underwriting risk, the probability of a significant variation in the amount of payments under the insurance or reinsurance contract must be more than remote. Such variation must also result from variation in the insured's losses, and it must be at least reasonably possible that the insurer will realize a significant loss from the transaction. An insurance or reinsurance contract that transfers only significant underwriting risk may be entered into to lessen the overall economic risks associated with the contract and permit a greater amount of coverage than would otherwise be obtainable for a comparable premium. Features in insurance or reinsurance contracts that transfer only significant underwriting risk limit the uncertainties about the timing of the receipt and payment of cash flow, thus limiting the amount of timing risk assumed by the insurer. A delayed reimbursement of losses by the insurer is a possible indication that timing risk has not been transferred. Unlike insurance and reinsurance contracts that transfer only significant timing risk, the recovery of the amount of the initial deposit for an insurance or reinsurance contract that transfers only significant underwriting risk is substantially dependent on the future loss experience of the insured. Depending on such experience, the initial deposit may be recovered or the recovery may be significantly more or less than the original deposit.
","snippet":"For an insurance or reinsurance contract to be considered to have transferred significant underwriting risk, the probability of a significant variation in the amount of payments under the insurance or reinsurance contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b60ad1dd2304bbc1dfe2a3cbe871e4a01229e863f1324b103e6ec9857c24eef1","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62be504550c61cdcc0783055a9fb772cf67c87e53c665a8171c8100f0700c7b3","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"block":null,"heading":"An Insurance or Reinsurance Contract that Transfers Neither Significant Timing nor Significant Underwriting Risk","paragraphs":[{"citation":"340-30-05-7","para":"05-7","html":"
Insurance and reinsurance contracts that transfer neither significant timing nor significant underwriting risk are expected to be rare.
","snippet":"Insurance and reinsurance contracts that transfer neither significant timing nor significant underwriting risk are expected to be rare.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc1294868d46212d09fa1e67105c6a9e63402f16216cf02c96912848ce058504","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20b28d7077e3d508529768bba2f36233d6912b85d8efcf898a20ace86d53b06c","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"block":null,"heading":"An Insurance or Reinsurance Contract with an Indeterminate Risk","paragraphs":[{"citation":"340-30-05-8","para":"05-8","html":"
These insurance and reinsurance contracts have uncertain terms, or there is insufficient information to reasonably estimate and allocate premiums in proportion to the protection provided. For example, certain insurance and reinsurance contracts allow the insured to obtain some degree of coverage for multiple years without exposing the insurer to a defined level of insurance risk each year. Uncertainties surrounding these insurance and reinsurance contracts are analogous to those often associated with foreign property and liability reinsurance as addressed in the Reinsurance Contracts Subsections of Subtopic 944-605.
","snippet":"These insurance and reinsurance contracts have uncertain terms, or there is insufficient information to reasonably estimate and allocate premiums in proportion to the protection provided. For example, certain insurance a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56c2b5993d508606e693e52bb73922929da5fffd2fc0950354810eeb3100c9dd","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b8d694733c7df06e9a520646d4df25b3292393fa2a02733b83cb19f93c3e6c1","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce695ac0fe9c13b2dedc982b53252e1183dddf1084c69e5161ff4268e7f4c703","downloaded_from":"2026-09-09T23:55:43.666Z","last_downloaded_at":"2026-09-09T23:55:43.666Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483034","source_sha256":"33dadbc026e284a95c7804aa02192d6b2fd0a1fdd8bff58c5e2287fef6f6f9ee"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-30-15-1","para":"15-1","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5767da048775af227b5be316af41d8ebfa4f62e65014d4d499840e7a8bd4bd2b","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd6d4d95e56049631fddc81205d2697453aa430c682fec8f1b11b77074f2c6ce","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"340-30-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to the following entities:
  1. a
    The insured and the insurer in an insurance contract
  2. b
    The ceding and assuming entity in a reinsurance contract.
","snippet":"The guidance in this Subtopic applies to the following entities:\n(a) The insured and the insurer in an insurance contract\n(b) The ceding and assuming entity in a reinsurance contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92b64b664abdaa294ec6b34c8113e20d0863f680e5f121178cbbccfed90a8212","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:01a7d248e520b580562688273b5e2e3ec289382713be80ed36d35581a6cc5f8b","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"340-30-15-3","para":"15-3","html":"
The guidance in this Subtopic applies to the following kinds of insurance and reinsurance contracts:
  1. a
    Short-duration insurance and reinsurance contracts that do not transfer insurance risk as described in paragraph 720-20-25-1 and, for reinsurance contracts, as described in Section 944-20-15
  2. b
    Multiple-year insurance and reinsurance contracts that do not transfer insurance risk or for which insurance risk transfer is not determinable.
","snippet":"The guidance in this Subtopic applies to the following kinds of insurance and reinsurance contracts:\n(a) Short-duration insurance and reinsurance contracts that do not transfer insurance risk as described in paragraph 72…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7bf478833c370daa041f86e5472135904256f1bbb328e7aa354ec83d2505b8cd","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}},{"citation":"340-30-15-4","para":"15-4","html":"
The guidance in this Subtopic does not apply to the following transactions and activities:
  1. a
    Long-duration life and health insurance contracts that do not indemnify against mortality or morbidity risk shall be accounted for as investment contracts under Topic 944. Therefore, such contracts are not covered by this Subtopic.
","snippet":"The guidance in this Subtopic does not apply to the following transactions and activities:\n(a) Long-duration life and health insurance contracts that do not indemnify against mortality or morbidity risk shall be accounte…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85b173719eaba5641968e031ca31765c76bd5a1680202247c31f2da83522b4bf","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee963fd89e5b7cb7cb81f03447f21f123522b06711a7e76a97a586144dce6cda","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c1ff41de22200eaeef741dc1c55f32a1790c139cc23722a49e6fba8341a4b87","downloaded_from":"2026-09-09T23:55:45.457Z","last_downloaded_at":"2026-09-09T23:55:45.457Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483009","source_sha256":"0858a3230762117a70900dcecc064e2f739f3ff8fa6150b46f3308e5ffdd59cd"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Deposit Asset or Liability Relating to Insurance and Reinsurance Contracts Accounted for Under Deposit Accounting","paragraphs":[{"citation":"340-30-25-1","para":"25-1","html":"
At inception, a deposit asset or liability shall be recognized for insurance and reinsurance contracts accounted for under deposit accounting.
","snippet":"At inception, a deposit asset or liability shall be recognized for insurance and reinsurance contracts accounted for under deposit accounting.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69695d83180478d03c16cf134d8418eee2d86cc105c237c806a1ef099eb896b9","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"citation":"340-30-25-2","para":"25-2","html":"
See Sections 340-30-30 and 340-30-35 for guidance relating to the measurement of insurance and reinsurance contracts that transfer:
  1. a
    Only significant timing risk
  2. b
    Neither significant timing nor significant underwriting risk
  3. c
    Only significant underwriting risk.
","snippet":"See Sections 340-30-30 and 340-30-35 for guidance relating to the measurement of insurance and reinsurance contracts that transfer:\n(a) Only significant timing risk\n(b) Neither significant timing nor significant underwri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a18d203c60320765bd781633379445e4cc3ab79c685ea8aa7d77c983301f5b3","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45916b563de754ad1749e8725cdeebc324dc4d1dd7f0d5d5437aee3ea6369c77","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"block":null,"heading":"Insurance and Reinsurance Contracts with Indeterminate Risk","paragraphs":[{"citation":"340-30-25-3","para":"25-3","html":"
Uncertainties surrounding insurance and reinsurance contracts with indeterminate risk are analogous to those often associated with foreign property and liability reinsurance as addressed in the Reinsurance Contracts Subsections of Subtopic 944-605. As a result, that guidance regarding the open-year method shall be followed.
","snippet":"Uncertainties surrounding insurance and reinsurance contracts with indeterminate risk are analogous to those often associated with foreign property and liability reinsurance as addressed in the Reinsurance Contracts Subs…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29909af9d8ad88328a6504ac1f7dcff15303e5d962d0ff0df32ecb6cda131a4a","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"citation":"340-30-25-4","para":"25-4","html":"
Under the open-year method, the effects of the contracts are not included in the determination of net income until sufficient information becomes available to reasonably estimate and allocate premiums. The open-year method requires that these effects be aggregated in the balance sheet.
","snippet":"Under the open-year method, the effects of the contracts are not included in the determination of net income until sufficient information becomes available to reasonably estimate and allocate premiums. The open-year meth…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63a9e67fe3838fbdda0b9a5db87b1abda428068c41b69ed9d8e164b3cb8b4ba8","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"citation":"340-30-25-5","para":"25-5","html":"
The open-year method shall not, however, be used to defer losses that otherwise would be recognized pursuant to Subtopic 450-20.
","snippet":"The open-year method shall not, however, be used to defer losses that otherwise would be recognized pursuant to Subtopic 450-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:daca401161c682f22b405ba2eb72d1d4da7586eeecbdfa692a6563ee3c7afe90","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"citation":"340-30-25-6","para":"25-6","html":"
If sufficient information becomes available to reasonably estimate and allocate premiums, the insurance or reinsurance contract with indeterminate risk shall be reclassified into one of the three following categories, as appropriate, and accounted for accordingly:
  1. a
    Transfers that have neither significant timing nor significant underwriting risk
  2. b
    Transfers that have only significant timing risk
  3. c
    Transfers that have only significant underwriting risk.
","snippet":"If sufficient information becomes available to reasonably estimate and allocate premiums, the insurance or reinsurance contract with indeterminate risk shall be reclassified into one of the three following categories, as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:604c960910b49aa21ad4c4701034ebb0e913797cb5a786e318a70856cf137ad7","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"citation":"340-30-25-7","para":"25-7","html":"
The change in deposit assets or liabilities that result if sufficient information becomes available is treated as a change in accounting estimate in accordance with Topic 250.
","snippet":"The change in deposit assets or liabilities that result if sufficient information becomes available is treated as a change in accounting estimate in accordance with Topic 250.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2257de6bec56f83c62c13d9b5332c988213a6160a3b594388ed202596b4023a","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ffeba8c8f46db34a5db881851b20e4068b233d064495fc0897e344ba5e43097","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"block":null,"heading":"Short-Duration Reinsurance Contracts","paragraphs":[{"citation":"340-30-25-8","para":"25-8","html":"
If a short-duration reinsurance contract does not meet either the condition in paragraph 944-20-15-41 or the exception in paragraph 944-20-15-53 but transfers significant insurance risk, then the accounting for contracts that transfer only significant underwriting risk shall be followed as discussed in paragraphs
340-30-35-5 through 35-7
and
340-30-45-3 through 45-5
.
","snippet":"If a short-duration reinsurance contract does not meet either the condition in paragraph 944-20-15-41 or the exception in paragraph 944-20-15-53 but transfers significant insurance risk, then the accounting for contracts…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b63886d44616b22ffe1a80eef833a8f28dbc7487c894783fff8b86136e96406b","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2385849bf8d88e814944b10e976efe4db6bb8742819dfb889bf9acb37de13813","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b20d616f7e2caadf6fd02425c2c15c5bf422495eb27f12cca87104a9b61725f0","downloaded_from":"2026-09-09T23:55:49.483Z","last_downloaded_at":"2026-09-09T23:55:49.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482961","source_sha256":"92d473d433ac202ddeabf668dc4beb07a52b649f38f6a8f790a99c77396dcc3f"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Deposit Asset or Liability Related to Insurance and Reinsurance Contracts Accounted for Under Deposit Accounting","paragraphs":[{"citation":"340-30-30-1","para":"30-1","html":"
At inception, a deposit asset or liability shall be measured based on the consideration paid or received, less any explicitly identified premiums or fees to be retained by the insurer or reinsurer, irrespective of the experience of the contract. Accounting for such fees shall be based on the terms of the contract.
","snippet":"At inception, a deposit asset or liability shall be measured based on the consideration paid or received, less any explicitly identified premiums or fees to be retained by the insurer or reinsurer, irrespective of the ex…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ea607d73aae4d8100db981de234124058236c13eb805322f17dc144de4905a6","downloaded_from":"2026-09-09T23:55:53.141Z","last_downloaded_at":"2026-09-09T23:55:53.141Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482934","source_sha256":"9bab72ccc62c0040b03d1f23561bf427060027ba300a6501097a21f04c89c009"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:860f7e7e0bd440c0fc1f24c68ea3bd6926dca3cecf481d905aa565190524257a","downloaded_from":"2026-09-09T23:55:53.141Z","last_downloaded_at":"2026-09-09T23:55:53.141Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482934","source_sha256":"9bab72ccc62c0040b03d1f23561bf427060027ba300a6501097a21f04c89c009"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c926440a5a0d63b241de5ec36a3f27b4b05243504161ad035cace6834b4918d","downloaded_from":"2026-09-09T23:55:53.141Z","last_downloaded_at":"2026-09-09T23:55:53.141Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482934","source_sha256":"9bab72ccc62c0040b03d1f23561bf427060027ba300a6501097a21f04c89c009"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Insurance and Reinsurance Contracts that Transfer Only Significant Timing Risk and Insurance and Reinsurance Contracts that Transfer Neither Significant Timing nor Significant Underwriting Risk","paragraphs":[{"citation":"340-30-35-1","para":"35-1","html":"
For insurance and reinsurance contracts that transfer only significant timing risk or that transfer neither significant timing nor significant underwriting risk, the amount of the deposit asset or liability shall be adjusted at subsequent reporting dates by calculating the effective yield on the deposit to reflect actual payments to date and expected future payments (as discussed in paragraph 340-30-35-3), with a corresponding credit or charge to interest income or expense (see Examples 1 through 3 [paragraphs 340-30-55-2 through 55-7])).
","snippet":"For insurance and reinsurance contracts that transfer only significant timing risk or that transfer neither significant timing nor significant underwriting risk, the amount of the deposit asset or liability shall be adju…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0df4f760c9967370531a730966121dc9d1bdac6bcdcc9ce64a398ca59c11196b","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}},{"citation":"340-30-35-2","para":"35-2","html":"
This approach is consistent with the interest method described in Subtopics 310-20 and 835-30.
","snippet":"This approach is consistent with the interest method described in Subtopics 310-20 and 835-30.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1498695bf8001dca6dd3497c02d9e16ed9f2bec96c165f69356a446ca9eaf2ee","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}},{"citation":"340-30-35-3","para":"35-3","html":"
The calculation of the effective yield shall use the estimated amount and timing of cash flows. Consistent with paragraph 310-20-35-26, if a change in the actual or estimated timing or amount of cash flows occurs, the effective yield shall be recalculated to reflect the revised actual or estimated cash flows. The deposit shall be adjusted to the amount that would have existed at the balance-sheet date had the new effective yield been applied since the inception of the insurance or reinsurance contract.
","snippet":"The calculation of the effective yield shall use the estimated amount and timing of cash flows. Consistent with paragraph 310-20-35-26, if a change in the actual or estimated timing or amount of cash flows occurs, the ef…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db765bf634db2a6c39180631fc7b8add6a8bb480eafbb9c45dc34102214ca1bc","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}},{"citation":"340-30-35-4","para":"35-4","html":"
Significant changes in the expected amounts of aggregate cash flows are expected to occur infrequently because of the nature of these kinds of contracts. Should a significant change occur in the total amount of actual or estimated cash flows, the entity shall determine whether the change indicates that the contract does include significant underwriting risk and therefore shall be converted to the accounting for contracts that transfer only significant underwriting risk (see paragraphs 340-30-35-5 and
340-30-45-3 through 45-5
). In addition, a contract that transfers only significant timing risk, which subsequently is determined also to transfer significant underwriting risk, cannot be accounted for under insurance or reinsurance accounting when the revised determination is made.
","snippet":"Significant changes in the expected amounts of aggregate cash flows are expected to occur infrequently because of the nature of these kinds of contracts. Should a significant change occur in the total amount of actual or…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9007401af283d43e3c4b61165a5ab0be18c4b78fdf1c48e5afccc1755b2e0eb4","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:439356e6982d44e854fd0902e9fb2b639a4d96cb9acf5a717491382ed94104ed","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}},{"block":null,"heading":"Insurance and Reinsurance Contracts that Transfer Only Significant Underwriting Risk","paragraphs":[{"citation":"340-30-35-5","para":"35-5","html":"
Until such time as a loss is incurred that will be reimbursed under an insurance or reinsurance contract that transfers only significant underwriting risk, the deposit shall be measured based on the unexpired portion of the coverage provided. Once a loss is incurred that will be reimbursed under such a contract, then the deposit shall be measured by the present value of the expected future cash flows arising from the contract plus the remaining unexpired portion of the coverage provided (see Example 4 [paragraph 340-30-55-8]).
","snippet":"Until such time as a loss is incurred that will be reimbursed under an insurance or reinsurance contract that transfers only significant underwriting risk, the deposit shall be measured based on the unexpired portion of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:94f9a2bdf309c3bc53db232b081d67dc78543db333efa24f36f3bed11e6639eb","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7fcc9af62097680429f4d15fa64e8040e47ef23b09eda5ed5687ba3e5ed97da","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}},{"block":null,"heading":"Insurance and Reinsurance Contracts that Transfer Only Significant Underwriting Risk—Discount Rate","paragraphs":[{"citation":"340-30-35-6","para":"35-6","html":"
For the insured or ceding entity, the discount rate used to determine the deposit asset shall be the current rate on U.S. government obligations with similar cash-flow characteristics, adjusted for default risk. Consideration of the default risk, if any, shall be based on the assessment of the creditworthiness of the insurer. For the insurer or assuming entity, the discount rate used to determine the deposit liability shall be the current rate on U.S. government obligations with similar cash-flow characteristics. These rates shall be established at the date of each loss incurred and used for the remaining life of the contract and shall not be changed.
","snippet":"For the insured or ceding entity, the discount rate used to determine the deposit asset shall be the current rate on U.S. government obligations with similar cash-flow characteristics, adjusted for default risk. Consider…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c71c7c06ba5380f85aba9715f919e96e795108b47dae10a81bed6cb505d4617","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}},{"citation":"340-30-35-7","para":"35-7","html":"
If numerous losses occur, the use of average rates is permitted because establishing individual rates might require detailed record keeping and computations that could be burdensome and unnecessary to produce reasonable approximations of the results.
","snippet":"If numerous losses occur, the use of average rates is permitted because establishing individual rates might require detailed record keeping and computations that could be burdensome and unnecessary to produce reasonable …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2cf974a7f0578579e3230bea9188ae2cced274fa6ec08feededa04c9f4eccc1c","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:812774014b67bf138f359d04e099a180fe2a4f64da5ec091a4d38da05174a6d9","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:737c9d6f4448ee54ac1f39fd1e32513e0083320fb5d2cdbda01f6f14a3081e62","downloaded_from":"2026-09-09T23:55:55.079Z","last_downloaded_at":"2026-09-09T23:55:55.079Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483105","source_sha256":"4d97c91099c0d4f4a75a19d526aa90ca8c066f1c09158135a81aba82c49eae98"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Deposit Asset and Liability","paragraphs":[{"citation":"340-30-45-1","para":"45-1","html":"
Deposit assets and liabilities shall be reported on a gross basis, unless the right of offset exists as defined in Subtopic 210-20. The accounting by the insured and insurer are symmetrical, except as noted in paragraphs
340-30-35-6 through 35-7
.
","snippet":"Deposit assets and liabilities shall be reported on a gross basis, unless the right of offset exists as defined in Subtopic 210-20. The accounting by the insured and insurer are symmetrical, except as noted in paragraphs…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20c21e10ab24caf5499fbcdef06e04e3ce5b516534e5d2b390618bd2472891a0","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59f74e7b0072b7b382af62d68f2fa0f62ce8529626c83c66c5d7f92715c0cd3c","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}},{"block":null,"heading":"Insurance and Reinsurance Contracts that Transfer Only Significant Timing Risk and Insurance and Reinsurance Contracts that Transfer Neither Timing nor Significant Underwriting Risk","paragraphs":[{"citation":"340-30-45-2","para":"45-2","html":"
Changes in the carrying amount of the deposit shall be reported as interest income or interest expense.
","snippet":"Changes in the carrying amount of the deposit shall be reported as interest income or interest expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03b1b01cf993a6efde6ee0fcb29fe1e62c68152201f7eebf422c5a5103f9b6ef","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e8f6b589497fe90233865ac3ca36832b9a698134c88acdc46f10df957dd87db","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}},{"block":null,"heading":"Insurance and Reinsurance Contracts that Transfer Only Significant Underwriting Risk","paragraphs":[{"citation":"340-30-45-3","para":"45-3","html":"
Changes in the recorded amount of the deposit, other than the unexpired portion of the coverage provided, arising from an insurance or reinsurance contract that transfers only significant underwriting risk shall be recorded in an insured's income statement as an offset against the loss recorded by the insured that will be reimbursed under the insurance or reinsurance contract and in an insurer's income statement as an incurred loss.
","snippet":"Changes in the recorded amount of the deposit, other than the unexpired portion of the coverage provided, arising from an insurance or reinsurance contract that transfers only significant underwriting risk shall be recor…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1eafb3d39b019ca11bed8114427713ae56413ac8b66749bb54fd2ad7e524916c","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}},{"citation":"340-30-45-4","para":"45-4","html":"
Insurance entities shall record the reduction in the deposit related to the unexpired portion of the coverage provided as an adjustment to incurred losses.
","snippet":"Insurance entities shall record the reduction in the deposit related to the unexpired portion of the coverage provided as an adjustment to incurred losses.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ca6ba142f60cb4f0719ce5ede2cc0920977648a298c61c8778f460924e11657","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}},{"citation":"340-30-45-5","para":"45-5","html":"
If the insured is an entity other than an insurance entity, the reduction in the deposit related to the unexpired portion of the coverage provided shall be recorded as an expense.
","snippet":"If the insured is an entity other than an insurance entity, the reduction in the deposit related to the unexpired portion of the coverage provided shall be recorded as an expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2db9f64e4fab075b64853a18e0278fe122053a773f8fd65f6a2829a56f7a92ba","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:887b7924e61a6a1c5cf5d67c0dd2e5dad1478015c72ad1f58cb95ca3f8367eb0","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a52d0f75aba08cbca1d280412abb535a10f2ce4ed6dda17e866f7011523aeae1","downloaded_from":"2026-09-09T23:55:57.511Z","last_downloaded_at":"2026-09-09T23:55:57.511Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483081","source_sha256":"3e15b268e7092478fd2a4836919dc47cfe375d24bf01db88d56e7608a6526e35"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Deposit Asset or Liability","paragraphs":[{"citation":"340-30-50-1","para":"50-1","html":"
Entities shall disclose a description of the contracts accounted for as deposits and the separate amounts of total deposit assets and total deposit liabilities reported in the statement of financial position.
","snippet":"Entities shall disclose a description of the contracts accounted for as deposits and the separate amounts of total deposit assets and total deposit liabilities reported in the statement of financial position.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f974440b89b3a876c954f61b7e4684c27f41b57e862e368066968413fca3d73","downloaded_from":"2026-09-09T23:56:00.194Z","last_downloaded_at":"2026-09-09T23:56:00.194Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483054","source_sha256":"47e8a936d4387a59cd5374e3500e7a4a39305f2a0146d08442fc0c0431f18ac2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed46d13e989760dd8cb23076c528c360a6f2a21d654a2b10192edd3eabb50103","downloaded_from":"2026-09-09T23:56:00.194Z","last_downloaded_at":"2026-09-09T23:56:00.194Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483054","source_sha256":"47e8a936d4387a59cd5374e3500e7a4a39305f2a0146d08442fc0c0431f18ac2"}},{"block":null,"heading":"Insurance and Reinsurance Contracts that Transfer Only Underwriting Risk","paragraphs":[{"citation":"340-30-50-2","para":"50-2","html":"
Insurance entities shall disclose the following information regarding the changes in the recorded amount of the deposit arising from an insurance or reinsurance contract that transfers only significant underwriting risk:
  1. a
    The present values of initial expected recoveries that will be reimbursed under the insurance or reinsurance contracts that have been recorded as an adjustment to incurred losses
  2. b
    Any adjustment of amounts initially recognized for expected recoveries. The individual components of the adjustment (meaning, interest accrual, the present value of additional expected recoveries, and the present value of reductions in expected recoveries) shall be disclosed separately.
  3. c
    The amortization expense attributable to the expiration of coverage provided under the contract.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
220-40-65-1Insurance entities shall disclose the following information regarding the changes in the recorded amount of the deposit arising from an insurance or reinsurance contract that transfers only significant underwriting risk:
  1. a
    The present values of initial expected recoveries that will be reimbursed under the insurance or reinsurance contracts that have been recorded as an adjustment to incurred losses
  2. b
    Any adjustment of amounts initially recognized for expected recoveries. The individual components of the adjustment (meaning, interest accrual, the present value of additional expected recoveries, and the present value of reductions in expected recoveries) shall be disclosed separately.
  3. c
    The amortization expense attributable to the expiration of coverage provided under the contract.
See paragraphs
220-40-50-21 through 50-25
for additional disclosure requirements.
","snippet":"Insurance entities shall disclose the following information regarding the changes in the recorded amount of the deposit arising from an insurance or reinsurance contract that transfers only significant underwriting risk:…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38121865683cf3af42bf0581f5f3221a0fc19a982eac803b452d75397a3aabb2","downloaded_from":"2026-09-09T23:56:00.194Z","last_downloaded_at":"2026-09-09T23:56:00.194Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483054","source_sha256":"47e8a936d4387a59cd5374e3500e7a4a39305f2a0146d08442fc0c0431f18ac2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c04892b88c09eea060768fd2d5e948742b7d145e7596488ce3b3c7b330c582f","downloaded_from":"2026-09-09T23:56:00.194Z","last_downloaded_at":"2026-09-09T23:56:00.194Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483054","source_sha256":"47e8a936d4387a59cd5374e3500e7a4a39305f2a0146d08442fc0c0431f18ac2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f867f8f9543c2bf717823ec8d0d2d266712c27e9864bffa9095a30245eb2f1a","downloaded_from":"2026-09-09T23:56:00.194Z","last_downloaded_at":"2026-09-09T23:56:00.194Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483054","source_sha256":"47e8a936d4387a59cd5374e3500e7a4a39305f2a0146d08442fc0c0431f18ac2"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"340-30-55-1","para":"55-1","html":"
The following Examples illustrate the application of the guidance in this Subtopic. It shall not be construed that any aspect of the illustrations establishes or changes requirements as to when deposit accounting should be applied. Rather, the Examples illustrate how deposit accounting is to be applied when it is determined that it should be applied under other accounting literature. These Examples illustrate the accounting by the insured. The accounting by the insurer would be symmetrical, except as noted in paragraphs
340-30-35-6 through 35-7
.
","snippet":"The following Examples illustrate the application of the guidance in this Subtopic. It shall not be construed that any aspect of the illustrations establishes or changes requirements as to when deposit accounting should …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:116aad16b7d09bd2557ef8e7216e139fc9a6346a36fdff3cfcca503628313c07","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-2","para":"55-2","html":"
This Example illustrates the accounting by the insured for an insurance or reinsurance contract that transfers neither significant timing nor significant underwriting risk. The facts are as shown in the following table.
","snippet":"This Example illustrates the accounting by the insured for an insurance or reinsurance contract that transfers neither significant timing nor significant underwriting risk. The facts are as shown in the following table.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7012fb8c2b1a98b7d322846442d0e9edfc2f3fa7784fdf63cb50e67f3797c9ab","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-3","para":"55-3","html":"
At contract inception, the insured records a $1,000 asset. Changes in the amount or timing of cash flows are not anticipated. As they are received, cash recoveries reduce the carrying amount of the deposit, and the carrying amount of the deposit is increased at each reporting date by the amount of the interest earned during the period. The Example assumes that the entity is reporting related financial information as of the end of each year, as shown in the following table.
","snippet":"At contract inception, the insured records a $1,000 asset. Changes in the amount or timing of cash flows are not anticipated. As they are received, cash recoveries reduce the carrying amount of the deposit, and the carry…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70a6d350c02050b70fd68076a02558b09cfe5db68b812117ec74db89b4e35142","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-4","para":"55-4","html":"
This Example illustrates the accounting by the insured for an insurance or reinsurance contract that transfers only significant timing risk. The facts are as shown in the following table.
","snippet":"This Example illustrates the accounting by the insured for an insurance or reinsurance contract that transfers only significant timing risk. The facts are as shown in the following table.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d615074a4459d74517af9e8db02a0722a605386563ca97f5020a6a32bbc8a0b","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-5","para":"55-5","html":"
This implicit rate often will be less than the current risk-free rate because of the uncertainties as to the timing of cash flows in the insurance or reinsurance contract.
","snippet":"This implicit rate often will be less than the current risk-free rate because of the uncertainties as to the timing of cash flows in the insurance or reinsurance contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e3d5f192d6c54e8aac50d3abf58fd06d78d850ecca37e56a0be8257ba29f8a1","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-6","para":"55-6","html":"
At contract inception, the insured records a $1,000 asset. Though the total amount ($1,125) is likely to be paid, changes in estimates of the timing of cash flows are expected. At each subsequent reporting date, the amount of the deposit would be increased by the amount of interest earned during the period, calculated using the estimated future cash flows to determine the then-current implicit discount rate (this is consistent with the retrospective approach in applying the interest method). At the end of Year 2, the timing of anticipated recoveries under the insurance or reinsurance contract is revised. A reevaluation of the implicit interest rate produces a rate of 3.63 percent and an asset of $640 at the end of the year. Given the change in the expected timing of cash flows at the end of Year 2, the carrying amount of the asset would be calculated as shown in the following table.
","snippet":"At contract inception, the insured records a $1,000 asset. Though the total amount ($1,125) is likely to be paid, changes in estimates of the timing of cash flows are expected. At each subsequent reporting date, the amou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55b5d87b55f29cfcc49e469d5f6f22cb76d2bd63f61a675c27ae5508fab5bd3e","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-7","para":"55-7","html":"
This Example builds on Examples 1 and 2 (see paragraphs
340-30-55-2 through 55-6
). It uses the same assumptions and facts as Example 2 for the first two years; however, at the end of Year 3, the estimated recovery is increased from $1,125 to $1,950 (with the remaining recovery to be $450 per year for the remaining 3 years). For purposes of this Example, assume the magnitude of the change in the estimated recovery is such that a determination should be reached that the contract does include significant underwriting risk. The risk-free rate of interest at Year 1 is 6 percent adjusted for default risk. In addition, this rate would be utilized when appropriate for the life of the contract. The following table illustrates the accounting for a conversion from a contract that transfers neither significant timing risk nor significant underwriting risk or a contract that transfers only significant timing risk to a contract that transfers significant underwriting risk.
","snippet":"This Example builds on Examples 1 and 2 (see paragraphs 340-30-55-2 through 55-6). It uses the same assumptions and facts as Example 2 for the first two years; however, at the end of Year 3, the estimated recovery is inc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09131e33852ac9a534f5d2fbe99b1cb28ea804cc7e3c51ee480551104dc46b51","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-8","para":"55-8","html":"
This Example illustrates the accounting by the insured for an insurance or reinsurance contract that transfers only significant underwriting risk. The facts are as shown in the following table.
","snippet":"This Example illustrates the accounting by the insured for an insurance or reinsurance contract that transfers only significant underwriting risk. The facts are as shown in the following table.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59ca0f75ea9c32f5b0a6af923dc02df59401d1554663581962bafe9d05ebe756","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-9","para":"55-9","html":"
A delayed reimbursement clause, which provides that the full amount will be paid to the insured or ceding entity at the end of Year 8, mitigates timing risk. A $5,000 loss is incurred at the end of Year 1 and is expected to be recovered at the end of Year 8. The risk-free rate of interest in Year 1 for the period from the loss to the expected payment date, adjusted for default risk, is 6 percent. (For the insurer, the risk-free rate would be used but it would not be adjusted for default risk.) At the end of Year 3, the estimated loss is increased from $5,000 to $6,000.
","snippet":"A delayed reimbursement clause, which provides that the full amount will be paid to the insured or ceding entity at the end of Year 8, mitigates timing risk. A $5,000 loss is incurred at the end of Year 1 and is expected…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c6975455df05e38505085ad9e9012d2f5ad246b5473b2d5e2893f7e7631efca7","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-10","para":"55-10","html":"
At contract inception, the insured records a $1,000 asset. The $1,000 amount is amortized over the coverage period of 1 year. If the $5,000 loss is incurred, the insured increases the amount of the asset by the present value of the $5,000. (Note that the insured has recorded the entire $5,000 loss from the underlying event in the same period.) At each subsequent reporting date, the portion of the carrying amount of the asset attributable to the incurred loss would be recalculated by discounting the estimated future cash flows.
","snippet":"At contract inception, the insured records a $1,000 asset. The $1,000 amount is amortized over the coverage period of 1 year. If the $5,000 loss is incurred, the insured increases the amount of the asset by the present v…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f05b2aed508f8bf32f65e6e6cea7b11fe097c2ce7fd36637589fea3de1a8f779","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}},{"citation":"340-30-55-11","para":"55-11","html":"
The carrying amount of the asset would be calculated as shown in the following table.
","snippet":"The carrying amount of the asset would be calculated as shown in the following table.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e46e9aaa3031308a2cb3a7452db600dee22964f915d2b67eca7755ce1386992","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:79f0c1f9550764de862420204b2e4c07defa793dd81b155b13a658443cbfddad","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fec48753bb22912c449760d142461cd97e816d75bfd05be2f33e326695a3b1cf","downloaded_from":"2026-09-09T23:56:01.915Z","last_downloaded_at":"2026-09-09T23:56:01.915Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483027","source_sha256":"d3feefedf0a1e62d64c38427166b739aa7c4793a6b179effe8b71eb5fa6b2426"}}],"enrichment":{"summary":"ASC 340-30 tells you how to apply the deposit method of accounting to insurance and reinsurance contracts that fail to transfer insurance risk (which requires transfer of both timing risk and underwriting risk). At inception a deposit asset or liability is recognized at consideration paid or received less explicitly identified premiums or fees retained (340-30-25-1; 340-30-30-1). Subsequent measurement depends on which of four risk categories the contract falls into: effective-yield/interest-method accretion for timing-risk-only or no-risk contracts, unexpired-coverage plus present value of expected recoveries for underwriting-risk-only contracts, and the open-year method for indeterminate-risk contracts.","key_points":["Insurance risk transfer requires both timing risk and underwriting risk, producing four deposit categories: timing risk only, underwriting risk only, neither, or indeterminate risk (340-30-05-2).","A deposit asset or liability is recognized at inception and measured at the consideration paid or received less any explicitly identified premiums or fees retained by the insurer or reinsurer, irrespective of contract experience (340-30-25-1; 340-30-30-1).","For contracts transferring only significant timing risk or neither risk, the deposit is adjusted each reporting date using the effective yield on estimated cash flows (interest method, consistent with 310-20 and 835-30), with a corresponding credit or charge to interest income or expense (340-30-35-1 through 35-3; 340-30-45-2).","If cash flow estimates change, the effective yield is recalculated retrospectively and the deposit is adjusted to the amount that would have existed had the new yield applied since inception (340-30-35-3); a significant change may signal that significant underwriting risk exists, requiring conversion to that model (340-30-35-4).","For contracts transferring only significant underwriting risk, the deposit equals the unexpired portion of coverage until a reimbursable loss is incurred, then the present value of expected future cash flows plus remaining unexpired coverage (340-30-35-5), discounted at the current rate on U.S. government obligations with similar cash-flow characteristics (adjusted for default risk only by the insured/ceding entity), locked in at each loss date (340-30-35-6).","Contracts with indeterminate risk follow the open-year method: effects are excluded from net income and aggregated on the balance sheet until premiums can be reasonably estimated and allocated, but the method cannot defer losses recognizable under Subtopic 450-20 (340-30-25-3 through 25-5); reclassification is a change in accounting estimate under Topic 250 (340-30-25-6 through 25-7).","Deposit assets and liabilities are reported gross unless a right of offset exists under Subtopic 210-20, and entities must disclose a description of the contracts plus separate totals of deposit assets and deposit liabilities (340-30-45-1; 340-30-50-1)."],"categories":["Recognition","Initial measurement","Subsequent measurement","Industry-specific"],"audience_level":"advanced","student_note":"This is the \"failed reinsurance\" bucket: if a contract does not shift both timing and underwriting risk, no premium/loss accounting is allowed and the arrangement is booked like a financing (deposit) with interest. The common mistake is assuming one accounting model applies to all deposits — the measurement rule differs sharply between timing-risk-only contracts (effective yield) and underwriting-risk-only contracts (unexpired coverage plus discounted expected recoveries).","related_topics":["944-20","944-605","720-20","310-20","835-30","210-20"],"key_concepts":["deposit method of accounting","insurance risk transfer","timing risk","underwriting risk","indeterminate risk","open-year method","effective yield / interest method","unexpired portion of coverage"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ed22dd1bb42b7163e636b4fdffcbdfe1e52bacab614ce84b93f0bd8fd2a70ef","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:56:05.098Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"605-944","title":"Financial Services—Insurance","topic_title":"Revenue Recognition","score":0.7908,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3572f0d385b9fd3e85aa635d0b70901822308788e58d2ae81f4a467352197f8","downloaded_from":"2026-09-10T00:49:17.918Z","last_downloaded_at":"2026-09-10T00:49:46.481Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-40","title":"Claim Costs and Liabilities for Future Policy Benefits","topic_title":"Financial Services—Insurance","score":0.7757,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0230e669c7aaeeb8608d50c5361ed94a995a599c37497fdb464dc252de5fced","downloaded_from":"2026-09-10T02:16:26.116Z","last_downloaded_at":"2026-09-10T02:17:13.308Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-944","title":"Financial Services—Insurance","topic_title":"Receivables","score":0.7741,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09719fddacb2d453bad8ec50003ebb5436e7f774427c0d4bdce57c411c03994b","downloaded_from":"2026-09-09T23:29:42.889Z","last_downloaded_at":"2026-09-09T23:30:17.133Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"815-944","title":"Financial Services—Insurance","topic_title":"Derivatives and Hedging","score":0.7657,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:afcf49e2fa305a34b8899be52f50106bfb228025c0a72878411074e8b78e4d70","downloaded_from":"2026-09-10T01:40:24.221Z","last_downloaded_at":"2026-09-10T01:40:44.205Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-20","title":"Insurance Activities","topic_title":"Financial Services—Insurance","score":0.7651,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7cd2f88d2f293d5b164f24044807758942cb206164ab7e872f71682c37a908f8","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-30","title":"Acquisition Costs","topic_title":"Financial Services—Insurance","score":0.7572,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ca3645a215b5a3fac783cbc429fd438dfaf4d82f8868d6e5724c7e05a2403935","downloaded_from":"2026-09-10T02:15:49.991Z","last_downloaded_at":"2026-09-10T02:16:24.166Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-20","title":"Capitalized Advertising Costs","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:da4d2422c5ef3fa3f5118d3a8655847423ed63445f6d303619387fef73d1076e","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:37.801Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-40","title":"Contracts with Customers","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ef4f9f3a0f7eb68a3bca22b0bdc65fbc6b4403d0fd44dd9a1929fcc42fd65c9","downloaded_from":"2026-09-09T23:56:07.379Z","last_downloaded_at":"2026-09-09T23:56:34.589Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:df8046fcc671374c2c9ddf417fb584d1681838552b8674e24fbe96cc2ec09ed4","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:56:05.098Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-40","topic":"340","title":"Contracts with Customers","area":"Assets","paragraphs":37,"summary":"ASC 340-40 governs capitalization, amortization, and impairment of two kinds of contract costs for contracts within the scope of Topic 606: incremental costs of obtaining a contract and costs to fulfill a contract that are not within the scope of another Topic. Incremental costs of obtaining a contract (e.g., sales commissions) are capitalized if the entity expects to recover them (340-40-25-1), while fulfillment costs are capitalized only if they relate directly to an identifiable (or specifically anticipated) contract, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered (340-40-25-5). Capitalized amounts are amortized consistently with transfer of the related goods or services and tested for impairment, with no reversal of impairment losses.","concepts":["incremental costs of obtaining a contract","costs to fulfill a contract","sales commission","expected recovery","amortization period including anticipated renewals","contract cost impairment test","practical expedient one year or less","anticipated contract"],"categories":["Recognition","Subsequent measurement","Impairment","Revenue"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-40-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Not-for-Profit EntityAddedAccounting Standards Update No. 2014-0905/28/2014
Performance ObligationAddedAccounting Standards Update No. 2014-0905/28/2014
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0905/28/2014
RevenueAddedAccounting Standards Update No. 2014-0905/28/2014
Transaction PriceAddedAccounting Standards Update No. 2014-0905/28/2014
340-40-05-1AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-05-2AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-15-1 through 15-3
AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-25-1 through 25-8
AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-35-1 through 35-6
AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-35-3 through 35-5
AmendedAccounting Standards Update No. 2016-2012/21/2016
340-40-50-1 through 50-6
AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-50-3AmendedAccounting Standards Update No. 2024-0311/04/2024
340-40-55-1 through 55-9
AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-60-1AddedAccounting Standards Update No. 2014-0905/28/2014
340-40-60-2AddedAccounting Standards Update No. 2014-0905/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nContract | Added | Accounting Standards Update No. 2014-09 | 05/28/2014 |\nCustomer | Add…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:649dcb4b435d89342aaa43f10f8730c57b1efc2e0de12e29ae1ee5fed505ca37","downloaded_from":"2026-09-09T23:56:07.379Z","last_downloaded_at":"2026-09-09T23:56:07.379Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479653","source_sha256":"36655d65ed7c943dea3679858f73ebccaa03fa565906a8e6c11922e62582ae75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:99886da29605b6bd67721f1531178ded8c9d4a720157c8d22f1dcbf427df0d3f","downloaded_from":"2026-09-09T23:56:07.379Z","last_downloaded_at":"2026-09-09T23:56:07.379Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479653","source_sha256":"36655d65ed7c943dea3679858f73ebccaa03fa565906a8e6c11922e62582ae75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7b9a13f66389c399785c8b3af35ff0689a8baff2385f6c0dc8004a49ea97ee4","downloaded_from":"2026-09-09T23:56:07.379Z","last_downloaded_at":"2026-09-09T23:56:07.379Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479653","source_sha256":"36655d65ed7c943dea3679858f73ebccaa03fa565906a8e6c11922e62582ae75"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-40-05-1","para":"05-1","html":"
This Subtopic provides accounting guidance for the following costs related to a contract with a customer within the scope of Topic 606 on revenue 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.
","snippet":"This Subtopic provides accounting guidance for the following costs related to a contract with a customer within the scope of Topic 606 on revenue from contracts with customers:\n(a) Incremental costs of obtaining a contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9412dfc9ad2a31461b7d489480d49273fa2703718acd4af616aeba6032dc5fb0","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}},{"citation":"340-40-05-2","para":"05-2","html":"
Paragraphs presented in bold type in this Subtopic state the main principles. All paragraphs have equal authority.
","snippet":"Paragraphs presented in bold type in this Subtopic state the main principles. All paragraphs have equal authority.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53dd85b84a109a9108e61ca3a34a33088748be3a85f54b354307aee3371fbc1b","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87fb6b36d2a1d9f16e613cf3e2f36379b16ebb70198d498204b70e3b5cdc2f5f","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f928f59c61106c79c2016114a2c89b70918fb8422a061e0746a892a884b7f6b","downloaded_from":"2026-09-09T23:56:11.011Z","last_downloaded_at":"2026-09-09T23:56:11.011Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479624","source_sha256":"199169e325d8212dea67d78b1c7e5a0dd56e44cf4025b5cc84d9e67a833889b8"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-40-15-1","para":"15-1","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27de511ca2d03f1f4b21e0e115e0df0284658a7b61222aabe924eb484a239024","downloaded_from":"2026-09-09T23:56:14.365Z","last_downloaded_at":"2026-09-09T23:56:14.365Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479593","source_sha256":"7153f97823e48f62011ac1be7070aa249e3cd4b3f6ed16f82a22a8c743d4b563"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c002062de9d99b09d30f5bfebaee5f461e1890bd5af576d943414ad375bf12b3","downloaded_from":"2026-09-09T23:56:14.365Z","last_downloaded_at":"2026-09-09T23:56:14.365Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479593","source_sha256":"7153f97823e48f62011ac1be7070aa249e3cd4b3f6ed16f82a22a8c743d4b563"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"340-40-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to the incremental costs of obtaining a contract with a customer within the scope of Topic 606 on revenue from contracts with customers (excluding any consideration payable to a customer, see paragraphs
606-10-32-25 through 32-27
).
","snippet":"The guidance in this Subtopic applies to the incremental costs of obtaining a contract with a customer within the scope of Topic 606 on revenue from contracts with customers (excluding any consideration payable to a cust…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1da156a5ff8df1e7ae55f89ee61270a8f30b98fc3fd757d576d2b1499ba5a438","downloaded_from":"2026-09-09T23:56:14.365Z","last_downloaded_at":"2026-09-09T23:56:14.365Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479593","source_sha256":"7153f97823e48f62011ac1be7070aa249e3cd4b3f6ed16f82a22a8c743d4b563"}},{"citation":"340-40-15-3","para":"15-3","html":"
The guidance in this Subtopic applies to the costs incurred in fulfilling a contract with a customer within the scope of Topic 606 on revenue 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
    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.
","snippet":"The guidance in this Subtopic applies to the costs incurred in fulfilling a contract with a customer within the scope of Topic 606 on revenue from contracts with customers, unless the costs are within the scope of anothe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5289df7d896a6745e359e6cede705b6f33f88b3f12d1d5fc34f170a3e86ba77","downloaded_from":"2026-09-09T23:56:14.365Z","last_downloaded_at":"2026-09-09T23:56:14.365Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479593","source_sha256":"7153f97823e48f62011ac1be7070aa249e3cd4b3f6ed16f82a22a8c743d4b563"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39951f45db53403f61dbc8fd06f3e7a1f94c167c0489bbde73c33e5a5574a9f0","downloaded_from":"2026-09-09T23:56:14.365Z","last_downloaded_at":"2026-09-09T23:56:14.365Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479593","source_sha256":"7153f97823e48f62011ac1be7070aa249e3cd4b3f6ed16f82a22a8c743d4b563"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4b6d22714a51330b095bc19224579599098fcca780cabf1e1b351b056e70b80","downloaded_from":"2026-09-09T23:56:14.365Z","last_downloaded_at":"2026-09-09T23:56:14.365Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479593","source_sha256":"7153f97823e48f62011ac1be7070aa249e3cd4b3f6ed16f82a22a8c743d4b563"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Contract Costs","paragraphs":[{"citation":"340-40-25-1","para":"25-1","html":"
An entity shall recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs.
","snippet":"An entity shall recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:137da2a8902473362c929cd11a2895b0063f2be2f20c20b3da9d4793194b8da1","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"citation":"340-40-25-2","para":"25-2","html":"
The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commission).
","snippet":"The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, a sales commiss…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1de5141167b672ec645fb06b7fd58945038706bf93b0773946b9f0f66cb6bd2c","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"citation":"340-40-25-3","para":"25-3","html":"
Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.
","snippet":"Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regar…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4e78331cca9917724f8597e8b6e1b71939a0b5d867da1109f6a4659e6a1eb32","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"citation":"340-40-25-4","para":"25-4","html":"
As a practical expedient, an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.
","snippet":"As a practical expedient, an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one y…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f12d17f7c98ac9772d13588d01533db3633c1b6ac717fd492e951b5579404ee","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"citation":"340-40-25-5","para":"25-5","html":"
An entity shall recognize an asset from the costs incurred to fulfill a contract only if those costs meet all of the following criteria:
  1. a
    The costs relate directly to a contract or to an anticipated contract that the entity can specifically identify (for example, costs relating to services to be provided under renewal of an existing contract or costs of designing an asset to be transferred under a specific contract that has not yet been approved).
  2. b
    The costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations in the future.
  3. c
    The costs are expected to be recovered.
","snippet":"An entity shall recognize an asset from the costs incurred to fulfill a contract only if those costs meet all of the following criteria:\n(a) The costs relate directly to a contract or to an anticipated contract that the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28947de1eb8057c886dc5fd4e6b33fcc29cf364181bbec23934b4db51c30a1cc","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"citation":"340-40-25-6","para":"25-6","html":"
For costs incurred in fulfilling a contract with a customer that are within the scope of another Topic (for example, Topic 330 on inventory; paragraphs
340-10-25-1 through 25-4
on preproduction costs related to long-term supply arrangements; Subtopic 350-40 on internal-use software; Topic 360 on property, plant, and equipment; or Subtopic 985-20 on costs of software to be sold, leased, or otherwise marketed), an entity shall account for those costs in accordance with those other Topics or Subtopics.
","snippet":"For costs incurred in fulfilling a contract with a customer that are within the scope of another Topic (for example, Topic 330 on inventory; paragraphs 340-10-25-1 through 25-4 on preproduction costs related to long-term…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f053d4235d777c945c0668a7113a9183f27c83e5c7e227ce33906c25cd24f3e","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"citation":"340-40-25-7","para":"25-7","html":"
Costs that relate directly to a contract (or a specific anticipated contract) include any of the following:
  1. a
    Direct labor (for example, salaries and wages of employees who provide the promised services directly to the customer)
  2. b
    Direct materials (for example, supplies used in providing the promised services to a customer)
  3. c
    Allocations of costs that relate directly to the contract or to contract activities (for example, costs of contract management and supervision, insurance, and depreciation of tools and equipment used in fulfilling the contract)
  4. d
    Costs that are explicitly chargeable to the customer under the contract
  5. e
    Other costs that are incurred only because an entity entered into the contract (for example, payments to subcontractors).
","snippet":"Costs that relate directly to a contract (or a specific anticipated contract) include any of the following:\n(a) Direct labor (for example, salaries and wages of employees who provide the promised services directly to the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cfdd1908f5454178357265cec167fed59dd3f3da177119a3524e8c6d9a272b11","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"citation":"340-40-25-8","para":"25-8","html":"
An entity shall recognize the following costs as expenses when incurred:
  1. a
    General and administrative costs (unless those costs are explicitly chargeable to the customer under the contract, in which case an entity shall evaluate those costs in accordance with paragraph 340-40-25-7)
  2. b
    Costs of wasted materials, labor, or other resources to fulfill the contract that were not reflected in the price of the contract
  3. c
    Costs that relate to satisfied performance obligations (or partially satisfied performance obligations) in the contract (that is, costs that relate to past performance)
  4. d
    Costs for which an entity cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations).
","snippet":"An entity shall recognize the following costs as expenses when incurred:\n(a) General and administrative costs (unless those costs are explicitly chargeable to the customer under the contract, in which case an entity shal…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86bea2cbc4dfcffbef49df4a0e6f2e79ea9e65f4912784ce99392eb4e3e21b49","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:196d0c34d070b727abcdf8b6ae1c8c7510ce8fe09b41df2a940a04ce5f8f271f","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47a557fe75b87bc0fc9a34f4a5309a589fea280d9bd711dfcde5f20c991c8750","downloaded_from":"2026-09-09T23:56:19.382Z","last_downloaded_at":"2026-09-09T23:56:19.382Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479542","source_sha256":"470595e448ce9d47f34c9cb222c28895ce86af6d43b9107f87c37d317b7f0e0c"}},{"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"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Assets Recognized from the Costs to Obtain or Fulfill a Contract with a Customer","paragraphs":[{"citation":"340-40-50-1","para":"50-1","html":"
Consistent with the overall disclosure objective in paragraph 606-10-50-1 and the guidance in paragraphs
606-10-50-2 through 50-3
, an entity shall provide the following disclosures of assets recognized from the costs to obtain or fulfill a contract with a customer in accordance with paragraphs 340-40-25-1 or 340-40-25-5.
","snippet":"Consistent with the overall disclosure objective in paragraph 606-10-50-1 and the guidance in paragraphs 606-10-50-2 through 50-3, an entity shall provide the following disclosures of assets recognized from the costs to …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:57f46d2a46c55eba07f078de1ac7178a7211be8dc837d5d6087019f95139a51b","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}},{"citation":"340-40-50-2","para":"50-2","html":"
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 or 340-40-25-5)
  2. b
    The method it uses to determine the amortization for each reporting period.
","snippet":"An entity shall describe both of the following:\n(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 or 340-40-2…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b8c22aa22f04b69126f48360f3d120ff4fc78bc008f705b916af32433467180","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}},{"citation":"340-40-50-3","para":"50-3","html":"
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 or 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:
220-40-65-1An 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 or 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
for additional disclosure requirements.
","snippet":"An entity shall disclose all of the following:\n(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 or 340-40-25-…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3f465cca9ffc8a08b56c52f1cc4f5eb0c42ce290fe001905b711b45f9ce923e","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}},{"citation":"340-40-50-4","para":"50-4","html":"
An entity, except for a public business entity, a not-for-profit entity 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
.
","snippet":"An entity, except for a public business entity, a not-for-profit entity 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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10d93c9da35ada169f7362d116f46c11f48a0a22ab8391be0470c3394938e0c3","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2448ca040a7dbeb5f62357771dc095b460ec6911c2b656b3634edc0bb83d1db5","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}},{"block":null,"heading":"Practical Expedients","paragraphs":[{"citation":"340-40-50-5","para":"50-5","html":"
If an entity elects to use the practical expedient in paragraph 340-40-25-4 on the incremental costs of obtaining a contract, the entity shall disclose that fact.
","snippet":"If an entity elects to use the practical expedient in paragraph 340-40-25-4 on the incremental costs of obtaining a contract, the entity shall disclose that fact.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1e5e9f91df3caaa56bfdfea23f177ba03ffc25a4718a79990d2eef1da4b48f7","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}},{"citation":"340-40-50-6","para":"50-6","html":"
An entity, except for a public business entity, a not-for-profit entity 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.
","snippet":"An entity, except for a public business entity, a not-for-profit entity 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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b44ddac9541cf657185c1f41726396baec480583f2e0b31701e484b8ebb9054","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:373240ebe1982141ccd72d28eac68893df6d9190d36ed2390bc736fc91a72bbc","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa268ef1ee847b5c6236782d6edc12915ef1a154173d4452400da523fc91f1de","downloaded_from":"2026-09-09T23:56:25.596Z","last_downloaded_at":"2026-09-09T23:56:25.596Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479483","source_sha256":"6b97136051aee9a7a7e95f7f94f19e49d16c9aca6e7b1a9b1fb193460a79e680"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"340-40-55-1","para":"55-1","html":"
Examples 1 and 2 illustrate the guidance in paragraphs
340-40-25-1 through 25-4
on incremental costs of obtaining a contract, paragraphs
340-40-25-5 through 25-8
on costs to fulfill a contract, and paragraphs
340-40-35-1 through 35-6
on amortization and impairment of contract costs.
","snippet":"Examples 1 and 2 illustrate the guidance in paragraphs 340-40-25-1 through 25-4 on incremental costs of obtaining a contract, paragraphs 340-40-25-5 through 25-8 on costs to fulfill a contract, and paragraphs 340-40-35-1…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62a0b3351ed81f4e03572244b57aa95868ec0b6c03a4bb4b7792838ec1ba11f0","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-2","para":"55-2","html":"
An entity, a provider of consulting services, wins a competitive bid to provide consulting services to a new customer. The entity incurred the following costs to obtain the contract:
","snippet":"An entity, a provider of consulting services, wins a competitive bid to provide consulting services to a new customer. The entity incurred the following costs to obtain the contract:","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81ff1562deee0ec4e745c08ac77bf502253c118f844bfd757689e81af80821dd","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-3","para":"55-3","html":"
In accordance with paragraph 340-40-25-1, the entity recognizes an asset for the $10,000 incremental costs of obtaining the contract arising from the commissions to sales employees because the entity expects to recover those costs through future fees for the consulting services. The entity also pays discretionary annual bonuses to sales supervisors based on annual sales targets, overall profitability of the entity, and individual performance evaluations. In accordance with paragraph 340-40-25-1, the entity does not recognize an asset for the bonuses paid to sales supervisors because the bonuses are not incremental to obtaining a contract. The amounts are discretionary and are based on other factors, including the profitability of the entity and the individuals' performance. The bonuses are not directly attributable to identifiable contracts.
","snippet":"In accordance with paragraph 340-40-25-1, the entity recognizes an asset for the $10,000 incremental costs of obtaining the contract arising from the commissions to sales employees because the entity expects to recover t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f0ff94796a12d209f79e99782c460ef132e1bf9dcbbfb53577501004e9b2c31","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-4","para":"55-4","html":"
The entity observes that the external legal fees and travel costs would have been incurred regardless of whether the contract was obtained. Therefore, in accordance with paragraph 340-40-25-3, those costs are recognized as expenses when incurred, unless they are within the scope of another Topic, in which case, the guidance in that Topic applies.
","snippet":"The entity observes that the external legal fees and travel costs would have been incurred regardless of whether the contract was obtained. Therefore, in accordance with paragraph 340-40-25-3, those costs are recognized …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3466bcae3544e9289d328917d25c19e68ffe740fbf901853f477a3c5450fcb73","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-5","para":"55-5","html":"
An entity enters into a service contract to manage a customer's information technology data center for five years. The contract is renewable for subsequent one-year periods. The average customer term is seven years. The entity pays an employee a $10,000 sales commission upon the customer signing the contract. Before providing the services, the entity designs and builds a technology platform for the entity's internal use that interfaces with the customer's systems. That platform is not transferred to the customer but will be used to deliver services to the customer.
","snippet":"An entity enters into a service contract to manage a customer's information technology data center for five years. The contract is renewable for subsequent one-year periods. The average customer term is seven years. The …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:80ea8b56fe89825d8900b828c2be430010f2a137d3f34b63690986fb65d6a5a3","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-6","para":"55-6","html":"
In accordance with paragraph 340-40-25-1, the entity recognizes an asset for the $10,000 incremental costs of obtaining the contract for the sales commission because the entity expects to recover those costs through future fees for the services to be provided. The entity amortizes the asset over seven years in accordance with paragraph 340-40-35-1 because the asset relates to the services transferred to the customer during the contract term of five years and the entity anticipates that the contract will be renewed for two subsequent one-year periods.
","snippet":"In accordance with paragraph 340-40-25-1, the entity recognizes an asset for the $10,000 incremental costs of obtaining the contract for the sales commission because the entity expects to recover those costs through futu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:752490852101ceeb5692e2b43d07a212d4900bd00b58d20c8e1037d46341dbcc","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-7","para":"55-7","html":"
The initial costs incurred to set up the technology platform are as follows:
","snippet":"The initial costs incurred to set up the technology platform are as follows:","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4bae4215f9319cdd1eb6337bed32f2470e32f83fc656676b7a180c29d45875a","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-8","para":"55-8","html":"
The initial setup costs relate primarily to activities to fulfill the contract but do not transfer goods or services to the customer. The entity accounts for the initial setup costs as follows:
  1. a
    Hardware costs—accounted for in accordance with Topic 360 on property, plant, and equipment
  2. b
    Software costs—accounted for in accordance with Subtopic 350-40 on internal-use software
  3. c
    Costs of the design, migration, and testing of the data center—assessed in accordance with paragraph 340-40-25-5 to determine whether an asset can be recognized for the costs to fulfill the contract. Any resulting asset would be amortized on a systematic basis over the seven-year period (that is, the five-year contract term and two anticipated one-year renewal periods) that the entity expects to provide services related to the data center.
","snippet":"The initial setup costs relate primarily to activities to fulfill the contract but do not transfer goods or services to the customer. The entity accounts for the initial setup costs as follows:\n(a) Hardware costs—account…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:befbf965c13e17363a9516b6e5bbe3ff67fceb96f408a0d61780a1e867461542","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"citation":"340-40-55-9","para":"55-9","html":"
In addition to the initial costs to set up the technology platform, the entity also assigns two employees who are primarily responsible for providing the service to the customer. Although the costs for these two employees are incurred as part of providing the service to the customer, the entity concludes that the costs do not generate or enhance resources of the entity (see paragraph 340-40-25-5(b)). Therefore, the costs do not meet the criteria in paragraph 340-40-25-5 and cannot be recognized as an asset using this Topic. In accordance with paragraph 340-40-25-8, the entity recognizes the payroll expense for these two employees when incurred.
","snippet":"In addition to the initial costs to set up the technology platform, the entity also assigns two employees who are primarily responsible for providing the service to the customer. Although the costs for these two employee…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db91e7f1c7480416804638cf4fd173c15876b8fabe8076c309119525faf4cfa1","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b6d60939f489b6e91aa6438b965ea7605516424bcc63f9156f398cc8f976597","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c7d0d82d79bfe9039f31c4d19378816ee608736751c35a040e31599a5c75016","downloaded_from":"2026-09-09T23:56:28.088Z","last_downloaded_at":"2026-09-09T23:56:28.088Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479452","source_sha256":"24f7b0cb5076c8d4c24b6f3718072fc19bccae1c7500eb9436486c6d3c20c8ec"}},{"number":"60","label":"60 Relationships","anchor":"60-relationships","is_sec":false,"groups":[{"block":null,"heading":"Revenue from Contracts with Customers","paragraphs":[{"citation":"340-40-60-1","para":"60-1","html":"
For guidance on revenue from contracts with customers, see Topic 606.
","snippet":"For guidance on revenue from contracts with customers, see Topic 606.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2debbb1426ba1348147a371f0ff7cf70cc8c82ec263e98eafb6b175de7459917","downloaded_from":"2026-09-09T23:56:31.935Z","last_downloaded_at":"2026-09-09T23:56:31.935Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479422","source_sha256":"5cec8c81bd4cb9d893a6c1bf63ce937385ef7741ea8dc4b89f6c52034604f02d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:118b4ceb16af3538f48e215a99da23b6bef7299af1ed64646a32670b5f2f718f","downloaded_from":"2026-09-09T23:56:31.935Z","last_downloaded_at":"2026-09-09T23:56:31.935Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479422","source_sha256":"5cec8c81bd4cb9d893a6c1bf63ce937385ef7741ea8dc4b89f6c52034604f02d"}},{"block":null,"heading":"Financial Services—Insurance","paragraphs":[{"citation":"340-40-60-2","para":"60-2","html":"
For guidance regarding direct response advertising costs, see Subtopic 944-30.
","snippet":"For guidance regarding direct response advertising costs, see Subtopic 944-30.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0947062cae24a373e4956c7c7dedce99bd101d5c197e64fed8a7b387f5206a6","downloaded_from":"2026-09-09T23:56:31.935Z","last_downloaded_at":"2026-09-09T23:56:31.935Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479422","source_sha256":"5cec8c81bd4cb9d893a6c1bf63ce937385ef7741ea8dc4b89f6c52034604f02d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff91a7bded0ea6bbdcc6fe90291bf493a7947fb08c5c4e256d1d4c1b7b9f2482","downloaded_from":"2026-09-09T23:56:31.935Z","last_downloaded_at":"2026-09-09T23:56:31.935Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479422","source_sha256":"5cec8c81bd4cb9d893a6c1bf63ce937385ef7741ea8dc4b89f6c52034604f02d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:147ff7a2e27fdea4048aa8658543e4d9ef6e59e1f1fa08843feda0312e2008d5","downloaded_from":"2026-09-09T23:56:31.935Z","last_downloaded_at":"2026-09-09T23:56:31.935Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479422","source_sha256":"5cec8c81bd4cb9d893a6c1bf63ce937385ef7741ea8dc4b89f6c52034604f02d"}}],"enrichment":{"summary":"ASC 340-40 governs capitalization, amortization, and impairment of two kinds of contract costs for contracts within the scope of Topic 606: incremental costs of obtaining a contract and costs to fulfill a contract that are not within the scope of another Topic. Incremental costs of obtaining a contract (e.g., sales commissions) are capitalized if the entity expects to recover them (340-40-25-1), while fulfillment costs are capitalized only if they relate directly to an identifiable (or specifically anticipated) contract, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered (340-40-25-5). Capitalized amounts are amortized consistently with transfer of the related goods or services and tested for impairment, with no reversal of impairment losses.","key_points":["An entity shall recognize as an asset the incremental costs of obtaining a contract—costs it would not have incurred had the contract not been obtained, such as a sales commission—if it expects to recover them (340-40-25-1 through 25-2); costs that would have been incurred regardless are expensed when incurred unless explicitly chargeable to the customer regardless of whether the contract is obtained (340-40-25-3).","Practical expedient: incremental costs of obtaining a contract may be expensed as incurred if the amortization period of the asset otherwise recognized would be one year or less (340-40-25-4), and use of the expedient must be disclosed (340-40-50-5).","Fulfillment costs are capitalized only if all three criteria in 340-40-25-5 are met (direct relation to an identified or specifically anticipated contract, generation or enhancement of resources used to satisfy future performance obligations, and expected recovery); costs within the scope of Topic 330, 340-10-25-1 through 25-4, Subtopic 350-40, Topic 360, or Subtopic 985-20 follow those Topics instead (340-40-25-6; 340-40-15-3).","General and administrative costs, wasted materials/labor not priced into the contract, costs relating to satisfied or partially satisfied performance obligations, and costs that cannot be distinguished between satisfied and unsatisfied obligations are expensed as incurred (340-40-25-8); costs that relate directly to a contract are listed in 340-40-25-7.","The capitalized asset is amortized on a systematic basis consistent with the transfer of the goods or services to which it relates, including goods or services under anticipated renewals (340-40-35-1; Example 2 amortizes a commission over seven years for a five-year contract with two expected renewals), and changes in expected timing are accounted for as a change in accounting estimate under Subtopic 250-10 (340-40-35-2).","An impairment loss is recognized to the extent carrying amount exceeds remaining expected consideration (determined using transaction price principles but ignoring the variable consideration constraint, adjusted for customer credit risk and including expected renewals/extensions) less the directly related costs not yet expensed (340-40-35-3 through 35-4); other-Topic assets are tested first and the remaining carrying amount is then included in the asset group or reporting unit under Topics 360 and 350 (340-40-35-5).","Reversal of a previously recognized impairment loss is prohibited (340-40-35-6); required disclosures include judgments made, amortization method, closing balances by main category of asset, and amortization and impairment amounts (340-40-50-2 through 50-3), which non-PBEs may elect not to provide (340-40-50-4)."],"categories":["Recognition","Subsequent measurement","Impairment","Revenue"],"audience_level":"intermediate","student_note":"This is the cost-side companion to Topic 606 and a frequent exam trap: a sales commission tied to obtaining a specific contract is capitalized, but discretionary bonuses and legal/travel costs incurred whether or not the bid was won are expensed. Students also commonly amortize the asset over the stated contract term instead of the longer expected period including anticipated renewals, and forget that impairment losses can never be reversed.","related_topics":["606","330","350-40","360","985-20","340-10"],"key_concepts":["incremental costs of obtaining a contract","costs to fulfill a contract","sales commission","expected recovery","amortization period including anticipated renewals","contract cost impairment test","practical expedient one year or less","anticipated contract"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:377363d8c2172b2ff13c97bb93318c46636ef0dcce8143c9933bff6035c489bf","downloaded_from":"2026-09-09T23:56:07.379Z","last_downloaded_at":"2026-09-09T23:56:34.589Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"606-10","title":"Overall","topic_title":"Revenue from Contracts with Customers","score":0.7911,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:881e1c56fe5b60bcd0de2bf25ea124b9c7c048a0882a9118078b0a8cf5f8b64d","downloaded_from":"2026-09-09T23:17:50.449Z","last_downloaded_at":"2026-09-09T23:18:32.707Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"610-20","title":"Gains and Losses from the Derecognition of Nonfinancial Assets","topic_title":"Other Income","score":0.7536,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd2f79153f6cf0b7cee439361596034b84c9165ffd2788228bcdd6a61f4e07a2","downloaded_from":"2026-09-10T00:54:49.448Z","last_downloaded_at":"2026-09-10T00:55:14.020Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-40","title":"Internal-Use Software","topic_title":"Intangibles—Goodwill and Other","score":0.7479,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2672cc862c0edf6fc5a1727af800c29fbcf896351168d361b96ccc41c62df9f","downloaded_from":"2026-09-10T00:02:14.508Z","last_downloaded_at":"2026-09-10T00:02:45.249Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"730-10","title":"Overall","topic_title":"Research and Development","score":0.7362,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d88aacf879781b5bd3d5d73ba4a25eb8fb0d1733231ab9fd2b988afff7a0154","downloaded_from":"2026-09-10T01:14:28.594Z","last_downloaded_at":"2026-09-10T01:14:54.866Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-10","title":"Overall","topic_title":"Other Assets and Deferred Costs","score":0.7355,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:566b5dc5f503bf08434de955647f3545737134957b64f88cb3e14d7eacc35a90","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"985-20","title":"Costs of Software to Be Sold, Leased, or Marketed","topic_title":"Software","score":0.735,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dff77c70004a78c34014b8a9ddbfdff0eac63fdf107bad80c87c48dde73ce747","downloaded_from":"2026-09-10T02:28:26.033Z","last_downloaded_at":"2026-09-10T02:28:54.478Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-30","title":"Insurance Contracts That Do Not Transfer Insurance Risk","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c002a5860d54181b4ee059ddc210ef784fdd08f568831a0261010d32093e2964","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:56:05.098Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-910","title":"Contractors—Construction","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:901eb7fa0070c3e32d284bf3b7fab6468b3bdf09f272c5c296316593bd9dbf07","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11b94ff78ae44fa9f4f3f83e5cb927edbbaf9f07cb92f536e75e3c14e210a91f","downloaded_from":"2026-09-09T23:56:07.379Z","last_downloaded_at":"2026-09-09T23:56:34.589Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-910","topic":"340","title":"Contractors—Construction","area":"Assets","paragraphs":4,"summary":"ASC 340-910 was the construction-contractor branch of the \"Other Assets and Deferred Costs\" topic, addressing precontract and other deferred costs incurred by construction contractors. Every substantive paragraph (05-1, 15-1, and 50-1) was superseded by ASU 2014-09 (the revenue recognition standard), so the subtopic is now an empty shell with no operative guidance. Costs to obtain and fulfill a contract with a customer are now accounted for under ASC 340-40.","concepts":["superseded guidance","precontract costs","construction contractors","costs to obtain a contract","costs to fulfill a contract","deferred contract costs"],"categories":["Transition and effective dates","Revenue","Industry-specific","Initial measurement"],"level":"introductory","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-910-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
910-340-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-340-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-340-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n910-340-05-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |\n910-3…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b425f42db31d75fbabcd4f0c318986105dca40d648e84f2f7696104c33cba493","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:37.773Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477655","source_sha256":"8e994656eba3156875fd609ca3e2db9d6cbeb4c46c76594fbdcf13dc5caa5168"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cad0ec50686e8a96e0b124898078034e72565994363146b2ef43aef4f5014a65","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:37.773Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477655","source_sha256":"8e994656eba3156875fd609ca3e2db9d6cbeb4c46c76594fbdcf13dc5caa5168"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4211eac86dbec5a9a13f6a65f6181ef0e3f57d858af803e79d608f982c44a0b4","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:37.773Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477655","source_sha256":"8e994656eba3156875fd609ca3e2db9d6cbeb4c46c76594fbdcf13dc5caa5168"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-910-05-1","para":"05-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e4b7761ee6c0703c3c585d3131e73c523dc244e75a2f73b11882be924e9f1c9","downloaded_from":"2026-09-09T23:56:40.584Z","last_downloaded_at":"2026-09-09T23:56:40.584Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477615","source_sha256":"f4768e57b9eb6ab36bbc8817d3382fc113a5d6efe4d485d332d1f1302d29956f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c30374fc448c0222f856663b1b8454ccd87e2a5ad5866ae74da44153b67c349","downloaded_from":"2026-09-09T23:56:40.584Z","last_downloaded_at":"2026-09-09T23:56:40.584Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477615","source_sha256":"f4768e57b9eb6ab36bbc8817d3382fc113a5d6efe4d485d332d1f1302d29956f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:edb4cc84c11e4bebf2dc57ec546c5216d5af75b96ca1db76ddafbd23db9afa0f","downloaded_from":"2026-09-09T23:56:40.584Z","last_downloaded_at":"2026-09-09T23:56:40.584Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477615","source_sha256":"f4768e57b9eb6ab36bbc8817d3382fc113a5d6efe4d485d332d1f1302d29956f"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-910-15-1","para":"15-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d527c3131ad4c52b06ffff5afefb69b8b81df5633d974b73c40ce5af831d7c4","downloaded_from":"2026-09-09T23:56:43.566Z","last_downloaded_at":"2026-09-09T23:56:43.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478841","source_sha256":"1c4a73de4eeb5072f9536b18cc927885d05b1aa3286e3f2f269bc3a5e4572559"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a1bb802d843bcc0f4baeb4ab116eabd8b43033b073ec0879bec58927b09709d2","downloaded_from":"2026-09-09T23:56:43.566Z","last_downloaded_at":"2026-09-09T23:56:43.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478841","source_sha256":"1c4a73de4eeb5072f9536b18cc927885d05b1aa3286e3f2f269bc3a5e4572559"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d5193904ad854db8a124280fdfd32025e230899fdba04f566de9a230bf59380","downloaded_from":"2026-09-09T23:56:43.566Z","last_downloaded_at":"2026-09-09T23:56:43.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478841","source_sha256":"1c4a73de4eeb5072f9536b18cc927885d05b1aa3286e3f2f269bc3a5e4572559"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-910-50-1","para":"50-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48f7d8fe562a5f549a36f4c4c5a0241e9dc207f653816f55cef9d96d538c2638","downloaded_from":"2026-09-09T23:56:47.153Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479368","source_sha256":"0fab69d11a350df237e76dc6191d4399ca1a1adc09df68efa70121e64c7c0dba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ada82cf867b07cac322d2a9c16f2ca680436bf7674c793c97a402a714426393b","downloaded_from":"2026-09-09T23:56:47.153Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479368","source_sha256":"0fab69d11a350df237e76dc6191d4399ca1a1adc09df68efa70121e64c7c0dba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5b546093dc51aa996781662d5c6ca22eaa0a8ce7c280db9d67f8e305b3fc396","downloaded_from":"2026-09-09T23:56:47.153Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479368","source_sha256":"0fab69d11a350df237e76dc6191d4399ca1a1adc09df68efa70121e64c7c0dba"}}],"enrichment":{"summary":"ASC 340-910 was the construction-contractor branch of the \"Other Assets and Deferred Costs\" topic, addressing precontract and other deferred costs incurred by construction contractors. Every substantive paragraph (05-1, 15-1, and 50-1) was superseded by ASU 2014-09 (the revenue recognition standard), so the subtopic is now an empty shell with no operative guidance. Costs to obtain and fulfill a contract with a customer are now accounted for under ASC 340-40.","key_points":["All content of this subtopic—overview (340-910-05-1), scope (340-910-15-1), and disclosure (340-910-50-1)—was superseded by Accounting Standards Update No. 2014-09.","No recognition, measurement, or disclosure requirements remain in ASC 340-910; the subtopic retains only superseded-paragraph placeholders.","Contractor costs formerly addressed here (e.g., precontract and fulfillment costs) are now evaluated under ASC 340-40, Other Assets and Deferred Costs—Contracts with Customers.","Revenue on construction-type contracts is now recognized under ASC 606 rather than the legacy contractor-specific guidance in ASC 910.","Because the guidance is superseded rather than deleted, the paragraph numbers remain in the Codification to preserve the cross-reference trail from legacy literature."],"categories":["Transition and effective dates","Revenue","Industry-specific","Initial measurement"],"audience_level":"introductory","student_note":"Do not cite ASC 340-910 as live authority—it is entirely superseded by ASU 2014-09; the common mistake is assuming construction contractors still have industry-specific deferred-cost rules when they must now apply the general ASC 340-40 capitalization tests alongside ASC 606.","related_topics":["340-40","606","910","912-340","605-35"],"key_concepts":["superseded guidance","precontract costs","construction contractors","costs to obtain a contract","costs to fulfill a contract","deferred contract costs"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d32597a882b08e1b4aee6ada74d548fe9a61bca9916cdf1b6991ae3956c7b988","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"310-910","title":"Contractors—Construction","topic_title":"Receivables","score":0.8773,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c14bc76542f659d706517b48f2bc66f3c860ba46776569a647832005347c528c","downloaded_from":"2026-09-09T23:28:06.186Z","last_downloaded_at":"2026-09-09T23:28:18.985Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-910","title":"Contractors—Construction","topic_title":"Liabilities","score":0.8564,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b868ff234b1279d50f6fd0e499460e6fe4ba3f002091eaadb6ee0b87dff81b3","downloaded_from":"2026-09-10T00:16:06.424Z","last_downloaded_at":"2026-09-10T00:16:15.597Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-915","title":"Development Stage Entities","topic_title":"Other Assets and Deferred Costs","score":0.8324,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59c36fa63c09ff0748131fa5b2891b5af50a17d2263c8a01143d452a65d2c7c8","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-952","title":"Franchisors","topic_title":"Other Assets and Deferred Costs","score":0.8264,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e6c6e96439e405ca0f3690cf42922833b64275682ed56cefe359c0e9e2ef87a","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"605-910","title":"Contractors—Construction","topic_title":"Revenue Recognition","score":0.8254,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:caf61553302cf26d477d1c24450b0b52b0b120f88c896f43eb0d258ba2b2ee4c","downloaded_from":"2026-09-10T00:46:12.096Z","last_downloaded_at":"2026-09-10T00:46:24.233Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"360-910","title":"Contractors—Construction","topic_title":"Property, Plant, and Equipment","score":0.8193,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff52c8cda49b455e49208922a6c6cb2e2cb54d79316bb28cbaa0dcfa9a95e024","downloaded_from":"2026-09-10T00:07:59.323Z","last_downloaded_at":"2026-09-10T00:08:11.902Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-40","title":"Contracts with Customers","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ef4f9f3a0f7eb68a3bca22b0bdc65fbc6b4403d0fd44dd9a1929fcc42fd65c9","downloaded_from":"2026-09-09T23:56:07.379Z","last_downloaded_at":"2026-09-09T23:56:34.589Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-915","title":"Development Stage Entities","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf97457bec5ad10e2b786ff9439d235205371acf1ba3541cfaf74c833c3e4fb4","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b30755eeb98ee35757206774ab54a48ed83b6b91bdb449cff5174a0aa42a0eec","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-915","topic":"340","title":"Development Stage Entities","area":"Assets","paragraphs":6,"summary":"ASC 340-915 formerly provided guidance on other assets and deferred costs for development stage entities, but every paragraph in the subtopic (Sections 05, 15, 25, and 35) was superseded by Accounting Standards Update No. 2014-10. As a result, there is no longer any incremental GAAP for deferred costs that is specific to development stage entities; such entities apply the same recognition and measurement guidance as any other reporting entity.","concepts":["development stage entity","superseded guidance","deferred costs","other assets","start-up costs"],"categories":["Transition and effective dates","Recognition","Financial statement presentation"],"level":"introductory","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-915-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Development Stage EntitySupersededAccounting Standards Update No. 2014-1006/10/2014
915-340-05-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-340-15-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-340-25-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-340-35-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-340-35-2SupersededAccounting Standards Update No. 2014-1006/10/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nDevelopment Stage Entity | Superseded | Accounting Standards Update No. 2014-10 | 06/10/…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95ff7ce06114e4b437ef510594034b6f14efbe101f486ce9e543238bfc852e44","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:56:51.161Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478895","source_sha256":"06af76e5160a00076eaa84a7aad9e51d7c5afe8f04d1fb49733489b609ab2a89"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e32839901ace6c4bed5d5c12a53a86cffee3b7c0359da0722ffa09406d343a54","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:56:51.161Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478895","source_sha256":"06af76e5160a00076eaa84a7aad9e51d7c5afe8f04d1fb49733489b609ab2a89"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ddb6bbfdf7b2549b1371ca8c0f8f56cd3555f6e3b77683313f72206d783332f","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:56:51.161Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478895","source_sha256":"06af76e5160a00076eaa84a7aad9e51d7c5afe8f04d1fb49733489b609ab2a89"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-915-05-1","para":"05-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-10.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c5f7b6691233d94a3629343f27a3d0e34117ff518e67978f79138a1772a1ceb","downloaded_from":"2026-09-09T23:56:54.071Z","last_downloaded_at":"2026-09-09T23:56:54.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477428","source_sha256":"70b90dc78ac56fa1d76b924570081f581780245d349127b29325e1f4f8b1f06f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a3e18fdfe399bba2cd38397e3d1acd6500c1593cb78f3bb461af73e28e2182d","downloaded_from":"2026-09-09T23:56:54.071Z","last_downloaded_at":"2026-09-09T23:56:54.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477428","source_sha256":"70b90dc78ac56fa1d76b924570081f581780245d349127b29325e1f4f8b1f06f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:565e717a5da7794860c54118e65505c5a6a5b28d77a036657b3f61b3255496ad","downloaded_from":"2026-09-09T23:56:54.071Z","last_downloaded_at":"2026-09-09T23:56:54.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477428","source_sha256":"70b90dc78ac56fa1d76b924570081f581780245d349127b29325e1f4f8b1f06f"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-915-15-1","para":"15-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-10.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:82772a1a42c22c5dfcdda3c9693865c41ce82c65f04de802646ca34cee0f55ed","downloaded_from":"2026-09-09T23:56:57.307Z","last_downloaded_at":"2026-09-09T23:56:57.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477543","source_sha256":"7e4b98ca8ddc5b6d4585067175057f7bad289d2dde33bd2a14643792412e441c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:787f299920720bd3c6570f94d66ff32ef86afeeee9cf397d4fef4a59cdc29a70","downloaded_from":"2026-09-09T23:56:57.307Z","last_downloaded_at":"2026-09-09T23:56:57.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477543","source_sha256":"7e4b98ca8ddc5b6d4585067175057f7bad289d2dde33bd2a14643792412e441c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8666cd2822851f7e8ec168ae2adee97c74d05e6f8420ee733ab5a4d94a6a671","downloaded_from":"2026-09-09T23:56:57.307Z","last_downloaded_at":"2026-09-09T23:56:57.307Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477543","source_sha256":"7e4b98ca8ddc5b6d4585067175057f7bad289d2dde33bd2a14643792412e441c"}},{"number":"20","label":"20 Glossary","anchor":"20-glossary","is_sec":false,"groups":[],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202","downloaded_from":"2026-09-09T23:57:01.136Z","last_downloaded_at":"2026-09-09T23:57:01.136Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479071","source_sha256":"08465fc4aff6c15e06178c7fcc8dedbbeddeb5fea04f2bbcbdb1ad0eaa645e98"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-915-25-1","para":"25-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-10.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf301a98731e31a037bee5656fdc989da2008201fc2ff80fae8e0c897dd505c9","downloaded_from":"2026-09-09T23:57:04.548Z","last_downloaded_at":"2026-09-09T23:57:04.548Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478428","source_sha256":"f6dc4d838afb77e9fb9e4ba56e90cc1801b9df4a6dd72c04833acddabdd532e1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e02a8318954eb4c5de36eaac8bbfdc15ea97aa1aa7bb33a2715ac1d09a07600","downloaded_from":"2026-09-09T23:57:04.548Z","last_downloaded_at":"2026-09-09T23:57:04.548Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478428","source_sha256":"f6dc4d838afb77e9fb9e4ba56e90cc1801b9df4a6dd72c04833acddabdd532e1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc2c2519644f65ce7c2cfb504ce2fa199439d5b0a24b66cbc295ea4f56b8b7b6","downloaded_from":"2026-09-09T23:57:04.548Z","last_downloaded_at":"2026-09-09T23:57:04.548Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478428","source_sha256":"f6dc4d838afb77e9fb9e4ba56e90cc1801b9df4a6dd72c04833acddabdd532e1"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-915-35-1","para":"35-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-10.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e93b4fe115bf741a541c643fb3fbc81cd94ac0c7a76701f514a7cf561792a88d","downloaded_from":"2026-09-09T23:57:08.174Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477237","source_sha256":"bb3660b2ecbab7138f36d73cda09bf23e329ecf02c36aa8a10b9683e90a82b5e"}},{"citation":"340-915-35-2","para":"35-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-10.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef6c8804a6da106f131b28c0de9db938e2c3ed6ae714d426b581baefeb6ca678","downloaded_from":"2026-09-09T23:57:08.174Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477237","source_sha256":"bb3660b2ecbab7138f36d73cda09bf23e329ecf02c36aa8a10b9683e90a82b5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1887d909c07d6a4d2def67c60a39421dd3c25c45f4396edb4e26b0cb9745fdb0","downloaded_from":"2026-09-09T23:57:08.174Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477237","source_sha256":"bb3660b2ecbab7138f36d73cda09bf23e329ecf02c36aa8a10b9683e90a82b5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:613a8f90da93be402ea86a64096266ac68f499e182576288363c8b573bb02688","downloaded_from":"2026-09-09T23:57:08.174Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477237","source_sha256":"bb3660b2ecbab7138f36d73cda09bf23e329ecf02c36aa8a10b9683e90a82b5e"}}],"enrichment":{"summary":"ASC 340-915 formerly provided guidance on other assets and deferred costs for development stage entities, but every paragraph in the subtopic (Sections 05, 15, 25, and 35) was superseded by Accounting Standards Update No. 2014-10. As a result, there is no longer any incremental GAAP for deferred costs that is specific to development stage entities; such entities apply the same recognition and measurement guidance as any other reporting entity.","key_points":["All content of this subtopic — 340-915-05-1, 340-915-15-1, 340-915-25-1, and 340-915-35-1 through 35-2 — was superseded by ASU 2014-10.","ASU 2014-10 eliminated the concept of a development stage entity from U.S. GAAP, removing the specialized incremental reporting requirements formerly found in Topic 915.","Because no substantive guidance remains, an entity formerly meeting the development stage entity definition accounts for other assets and deferred costs under the general guidance in Topic 340 and other applicable Topics.","Preexisting references to development stage entity deferral practices (for example, deferring organization or start-up type costs) are no longer supported by this subtopic; see Subtopic 720-15 for start-up costs.","Students should treat this subtopic as a historical placeholder retained in the Codification only to record the supersession and its effective date."],"categories":["Transition and effective dates","Recognition","Financial statement presentation"],"audience_level":"introductory","student_note":"Exam or research traps here are citation traps: if you find guidance pointing to 340-915, note it is entirely superseded by ASU 2014-10 and apply general GAAP instead. The common misunderstanding is assuming development stage entities may still defer costs (such as organization or start-up costs) that other entities must expense.","related_topics":["915","720-15","340-10","810-10","275"],"key_concepts":["development stage entity","superseded guidance","deferred costs","other assets","start-up costs"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc841c0c5fd31dd50ed0c66934d1d566b712cf8a2fa07cf148ea73ead43eadc9","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"210-915","title":"Development Stage Entities","topic_title":"Balance Sheet","score":0.8713,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab8fd3910ad14871aee5abbef4242967741d4c51d7d24b30978cbdf2555d3b1d","downloaded_from":"2026-09-09T22:59:54.936Z","last_downloaded_at":"2026-09-09T23:00:06.175Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"235-915","title":"Development Stage Entities","topic_title":"Notes to Financial Statements","score":0.865,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f92033438347e539881588142e28dbe01a62064de31afafd79b7f0f1bcd41c35","downloaded_from":"2026-09-09T23:15:05.293Z","last_downloaded_at":"2026-09-09T23:15:17.796Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"225-915","title":"Development Stage Entities","topic_title":"Income Statement","score":0.8607,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f005b56108760b98a523c85b8cbd261b4bb6d9921d08a24dfc2775513a133785","downloaded_from":"2026-09-09T23:09:10.440Z","last_downloaded_at":"2026-09-09T23:09:21.836Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"230-915","title":"Development Stage Entities","topic_title":"Statement of Cash Flows","score":0.8436,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6e770d3873eb5937a9c390c44020272aa9898540cd28f7ea3f505f42b3214c2","downloaded_from":"2026-09-09T23:12:12.874Z","last_downloaded_at":"2026-09-09T23:12:23.520Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"205-915","title":"Development Stage Entities","topic_title":"Presentation of Financial Statements","score":0.837,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6cff9d81b516b4e2164292c800be53b1bebb768c36dd31dc92d90e553a88b0b","downloaded_from":"2026-09-09T22:54:43.054Z","last_downloaded_at":"2026-09-09T22:54:51.555Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"810-915","title":"Development Stage Entities","topic_title":"Consolidation","score":0.8363,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19f744cc1daab336fd32d369bc96898597a685e6747c2f8a1b033b75ee9c1e04","downloaded_from":"2026-09-10T01:30:44.132Z","last_downloaded_at":"2026-09-10T01:30:55.736Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-910","title":"Contractors—Construction","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:901eb7fa0070c3e32d284bf3b7fab6468b3bdf09f272c5c296316593bd9dbf07","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-928","title":"Entertainment—Music","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f23de6bde3605d5221ebf0225e0da38938e8dd2b456f4ea7a72f081ca4425ba","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:36.379Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b07595b37186a7086a5fbb0245b73b782869a7ef83f8c3a74e20c3fc0246ead","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-928","topic":"340","title":"Entertainment—Music","area":"Assets","paragraphs":12,"summary":"ASC 340-928 governs when a music entity may capitalize advance royalties paid to artists, the cost of record masters, and minimum guarantees paid in advance by licensees. Capitalization hinges on recoverability: an advance royalty or the record company's share of record master cost is an asset only if the artist's past performance and current popularity provide a sound basis for estimating recovery from future royalties or sales. Capitalized amounts are charged to expense as royalties are earned or amortized over the recorded performance's life in relation to expected net revenue, with immediate write-off of nonrecoverable portions.","concepts":["advance royalties","record master costs","minimum guarantees","recoverability assessment","artist past performance and current popularity","amortization over estimated life","licensee capitalization","current and noncurrent classification"],"categories":["Recognition","Subsequent measurement","Impairment","Industry-specific"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-928-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
928-340-35-2AmendedAccounting Standards Update No. 2014-0905/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n928-340-35-2 | Amended | Accounting Standards Update No. 2014-09 | 05/28/2014 |","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8445f9bc186eaa5cd2ed9f6c7f124cd75127949fb47478ff88a16a170afe2741","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:11.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478941","source_sha256":"fc42a6b253d57ab14004ba054d00fb26448272239a8de75a8afb84f05596558a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0811e3e176a31d326db763d12c77890ac86ada710431bcdc2c00f0edd948e81","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:11.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478941","source_sha256":"fc42a6b253d57ab14004ba054d00fb26448272239a8de75a8afb84f05596558a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2354352740e024d60e4c3984de9c9c55357657c223a307ce6a840c1ee5a85059","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:11.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478941","source_sha256":"fc42a6b253d57ab14004ba054d00fb26448272239a8de75a8afb84f05596558a"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-928-05-1","para":"05-1","html":"
A licensing agreement may require advance royalties to be paid to artists and minimum guarantees to be advanced to licensors. This Subtopic addresses the accounting for such royalties and guarantees by an entity in the music industry. It also addresses the accounting by such entities for the costs to produce record masters.
","snippet":"A licensing agreement may require advance royalties to be paid to artists and minimum guarantees to be advanced to licensors. This Subtopic addresses the accounting for such royalties and guarantees by an entity in the m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:950341022bf38ce47e29b7ace2663d7752bf07c8abbeb891d7826883db1a4175","downloaded_from":"2026-09-09T23:57:14.741Z","last_downloaded_at":"2026-09-09T23:57:14.741Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479225","source_sha256":"291f4bd09a6a924b3b83ec7d4b69b9c5f0a018196e43e5c5f113566af74ac13d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92b29ac6bd3f4c60e3d06fb9ddc784c6a8990d42290ae53821b4b5700f52d733","downloaded_from":"2026-09-09T23:57:14.741Z","last_downloaded_at":"2026-09-09T23:57:14.741Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479225","source_sha256":"291f4bd09a6a924b3b83ec7d4b69b9c5f0a018196e43e5c5f113566af74ac13d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d65e31babf6abd76a6fb4d0680394bbb1adcea5395c1bcaa7f23d6e617411a8","downloaded_from":"2026-09-09T23:57:14.741Z","last_downloaded_at":"2026-09-09T23:57:14.741Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479225","source_sha256":"291f4bd09a6a924b3b83ec7d4b69b9c5f0a018196e43e5c5f113566af74ac13d"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-928-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 928-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 928-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87ee4d33e96cbf09e501dbd2cd7bfd6d65a66ed23718af2f80e97944fca9d557","downloaded_from":"2026-09-09T23:57:18.275Z","last_downloaded_at":"2026-09-09T23:57:18.275Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478817","source_sha256":"d912f99ea82061ea1c58ebec095ce270ff84a074cd4cfa11d77d59d7745ba45b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9dcec542f34c275a644f56dd2cc6eab9a6cfe8ba3cfc5fc4d62851a11008bdef","downloaded_from":"2026-09-09T23:57:18.275Z","last_downloaded_at":"2026-09-09T23:57:18.275Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478817","source_sha256":"d912f99ea82061ea1c58ebec095ce270ff84a074cd4cfa11d77d59d7745ba45b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c8fb02aae140bbbf3ba981a5c1196fc52c3182668f8a7c1081967ca24f1b68d","downloaded_from":"2026-09-09T23:57:18.275Z","last_downloaded_at":"2026-09-09T23:57:18.275Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478817","source_sha256":"d912f99ea82061ea1c58ebec095ce270ff84a074cd4cfa11d77d59d7745ba45b"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-25-1","para":"25-1","html":"
An advance royalty paid to an artist shall be reported as an asset if the past performance and current popularity of the artist to whom the advance is made provide a sound basis for estimating that the amount of the advance will be recoverable from future royalties to be earned by the artist.
","snippet":"An advance royalty paid to an artist shall be reported as an asset if the past performance and current popularity of the artist to whom the advance is made provide a sound basis for estimating that the amount of the adva…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:157c2825f5c6d5f923c78861d1c221ffe11d30bc96cd0eeef32c1ff6a33a607e","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"citation":"340-928-25-2","para":"25-2","html":"
The portion of the record master cost borne by the record company shall be reported as an asset if the past performance and current popularity of the artist provides a sound basis for estimating that the cost will be recovered from future sales.
","snippet":"The portion of the record master cost borne by the record company shall be reported as an asset if the past performance and current popularity of the artist provides a sound basis for estimating that the cost will be rec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cca25ddbad096830569fad04d5a614f81a39fe9ae94fcb2a64b5ce4c0b61d697","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"citation":"340-928-25-3","para":"25-3","html":"
The portion of the record master cost recoverable from the artist's royalties shall be accounted for as an advance royalty, as discussed in this Subtopic and Subtopic 928-720.
","snippet":"The portion of the record master cost recoverable from the artist's royalties shall be accounted for as an advance royalty, as discussed in this Subtopic and Subtopic 928-720.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dfc18246e0313502e65612708cded2f8ae18e6941a3bd1e6bb1a42b007c1320b","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3dabb8787038a9e36ac75c79e81c8d6f7e9e3c9af1f52f1e786eee65690390b4","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"block":null,"heading":"Licensee Accounting","paragraphs":[{"citation":"340-928-25-4","para":"25-4","html":"
If minimum guarantees are paid in advance by a licensee, such guarantees shall be reported as an asset by the licensee.
","snippet":"If minimum guarantees are paid in advance by a licensee, such guarantees shall be reported as an asset by the licensee.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ff162d0a461eb614a89219cc731220b7c20d06c27a12f0a60af3762591e0178","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb106148d3c92b18ff816566d0f49a49e2f4b735a05b4643c8684b26fb97f0a2","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:52993503deb88731eff03b8de5edf789c8adee91cc788fc156a0dd713fd4dd48","downloaded_from":"2026-09-09T23:57:23.467Z","last_downloaded_at":"2026-09-09T23:57:23.467Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477634","source_sha256":"ea44964e5c74625335fa8646fa884497f74952a21541a716c6ebbdfc3c796998"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-35-1","para":"35-1","html":"
As indicated in paragraph 928-720-25-1, advance royalties shall be charged to expense as subsequent royalties are earned by the artist. Any portion of such advances that subsequently appear not to be fully recoverable from future royalties to be earned by the artist shall be charged to expense during the period in which the loss becomes evident.
","snippet":"As indicated in paragraph 928-720-25-1, advance royalties shall be charged to expense as subsequent royalties are earned by the artist. Any portion of such advances that subsequently appear not to be fully recoverable fr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8acd89f2fe95e2c76a962d4647d3815cb7b3db0c53b07669104c10dbc6e62e8","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}},{"citation":"340-928-35-2","para":"35-2","html":"
The portion of the record master cost recognized as an asset shall be amortized over the estimated life of the recorded performance using a method that reasonably relates the amount to the net revenue expected to be recognized.
","snippet":"The portion of the record master cost recognized as an asset shall be amortized over the estimated life of the recorded performance using a method that reasonably relates the amount to the net revenue expected to be reco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ccfef1572dfb581060f080ddf428e6ead39f8d2573192aca8d09a2b73c6967f5","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6c78581af22968a2c1ac9055858fbe2e9cde9c67e2bf6b04d324d9943f501bc","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}},{"block":null,"heading":"Licensee Accounting","paragraphs":[{"citation":"340-928-35-3","para":"35-3","html":"
Minimum guarantees paid in advance, and reported as an asset by the licensee in accordance with paragraph 928-340-25-4, shall subsequently be charged to expense in accordance with the terms of the license agreement. If all or a portion of the minimum guarantee subsequently appears not to be recoverable through future use of the rights obtained under the license, the nonrecoverable portion shall be charged to expense.
","snippet":"Minimum guarantees paid in advance, and reported as an asset by the licensee in accordance with paragraph 928-340-25-4, shall subsequently be charged to expense in accordance with the terms of the license agreement. If a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25373b2a686864b81fd3cb3b309103ab72e6aee75fc55cc531f7e5d722def390","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:479667fbaa4d20e785b1f03f2faa0f88874477bc984f7c10784d39fc73032c09","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd14fe69cf65a870ac03f913a4c0e59aeb99b465a6543d772c1b76990e4e5863","downloaded_from":"2026-09-09T23:57:26.624Z","last_downloaded_at":"2026-09-09T23:57:26.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479191","source_sha256":"c4ac992bf498fee628de0c4119db41bff88a39d7386034152560040fd74d183c"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-45-1","para":"45-1","html":"
Advance royalties shall be classified as current and noncurrent assets, as appropriate.
","snippet":"Advance royalties shall be classified as current and noncurrent assets, as appropriate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75a30f676eb8cb18cad96825bc5d6ea31427dc8e626450dc373b81b72f439eae","downloaded_from":"2026-09-09T23:57:29.691Z","last_downloaded_at":"2026-09-09T23:57:29.691Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477426","source_sha256":"9be9c265cedb53ea1cc17396470cb71bcdce5ab4d7230fc796cd4862dcc640c5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb82bdf4d8f34c3a594f68127058c6f3f2cae093b5bbe9e88bc568467d26679b","downloaded_from":"2026-09-09T23:57:29.691Z","last_downloaded_at":"2026-09-09T23:57:29.691Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477426","source_sha256":"9be9c265cedb53ea1cc17396470cb71bcdce5ab4d7230fc796cd4862dcc640c5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09db430f4b973c70302caef5a84c725bf288050c6230c5e61decf8695f98165a","downloaded_from":"2026-09-09T23:57:29.691Z","last_downloaded_at":"2026-09-09T23:57:29.691Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477426","source_sha256":"9be9c265cedb53ea1cc17396470cb71bcdce5ab4d7230fc796cd4862dcc640c5"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Licensor Accounting","paragraphs":[{"citation":"340-928-50-1","para":"50-1","html":"
The portion of the record master cost borne by the record company that is recorded as assets shall be disclosed separately.
","snippet":"The portion of the record master cost borne by the record company that is recorded as assets shall be disclosed separately.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb62841eba3819971c4d361b35c1c0d8aae3fd5512aaae30d6febe54755a32f4","downloaded_from":"2026-09-09T23:57:32.291Z","last_downloaded_at":"2026-09-09T23:57:32.291Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478859","source_sha256":"84c343d2ec94828961da5cc0b4eaf6e44ab28e819d1fe9321f4748fdf6d32b5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c53b663de4b5e679ffa35757f8f9e973e4252cccfba93888719bd072ce96487","downloaded_from":"2026-09-09T23:57:32.291Z","last_downloaded_at":"2026-09-09T23:57:32.291Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478859","source_sha256":"84c343d2ec94828961da5cc0b4eaf6e44ab28e819d1fe9321f4748fdf6d32b5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e71349ec09b2e532cea0932deb76aea6ac2fd92de95821f0dd262066f627f45","downloaded_from":"2026-09-09T23:57:32.291Z","last_downloaded_at":"2026-09-09T23:57:32.291Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478859","source_sha256":"84c343d2ec94828961da5cc0b4eaf6e44ab28e819d1fe9321f4748fdf6d32b5e"}}],"enrichment":{"summary":"ASC 340-928 governs when a music entity may capitalize advance royalties paid to artists, the cost of record masters, and minimum guarantees paid in advance by licensees. Capitalization hinges on recoverability: an advance royalty or the record company's share of record master cost is an asset only if the artist's past performance and current popularity provide a sound basis for estimating recovery from future royalties or sales. Capitalized amounts are charged to expense as royalties are earned or amortized over the recorded performance's life in relation to expected net revenue, with immediate write-off of nonrecoverable portions.","key_points":["An advance royalty paid to an artist is reported as an asset only if the artist's past performance and current popularity provide a sound basis for estimating recoverability from future royalties (340-928-25-1).","The portion of record master cost borne by the record company is an asset if that same past-performance/current-popularity test supports recovery from future sales (340-928-25-2); the portion recoverable from the artist's royalties is accounted for as an advance royalty (340-928-25-3).","Minimum guarantees paid in advance by a licensee are reported as an asset by the licensee (340-928-25-4).","Advance royalties are charged to expense as subsequent royalties are earned by the artist, and any portion that appears not to be fully recoverable is expensed in the period the loss becomes evident (340-928-35-1).","Capitalized record master cost is amortized over the estimated life of the recorded performance using a method that reasonably relates the amount to net revenue expected to be recognized (340-928-35-2).","Minimum guarantees are charged to expense in accordance with the license agreement terms, with any nonrecoverable portion expensed (340-928-35-3).","Advance royalties are classified as current and noncurrent assets as appropriate (340-928-45-1), and the capitalized record master cost borne by the record company is disclosed separately (340-928-50-1)."],"categories":["Recognition","Subsequent measurement","Impairment","Industry-specific"],"audience_level":"intermediate","student_note":"This is a classic industry-specific capitalization rule: the asset test is a judgmental recoverability standard tied to the artist's track record and current popularity, not a bright line. A common mistake is capitalizing the entire record master cost — only the portion borne by the record company is tested for capitalization; the portion recoverable from the artist's royalties is treated as an advance royalty.","related_topics":["928-720","928-10","928-405","340-10","926-340"],"key_concepts":["advance royalties","record master costs","minimum guarantees","recoverability assessment","artist past performance and current popularity","amortization over estimated life","licensee capitalization","current and noncurrent classification"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71dd2e6b52f923713230e09d503a33240ed89385e7f2680dafe88096677a1a3a","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:36.379Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"720-928","title":"Entertainment—Music","topic_title":"Other Expenses","score":0.8742,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4d5def32224684e1141d485b90c555644073c8c91e12d39d4ee6b526d72332b","downloaded_from":"2026-09-10T01:10:22.861Z","last_downloaded_at":"2026-09-10T01:10:30.076Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"440-928","title":"Entertainment—Music","topic_title":"Commitments","score":0.774,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae548fcb1bc765f6bd5aa56d74e1d3a10c892ae60e6fd23f55bf7b0b081ea304","downloaded_from":"2026-09-10T00:25:52.692Z","last_downloaded_at":"2026-09-10T00:26:04.387Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-928","title":"Entertainment—Music","topic_title":"Liabilities","score":0.7463,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43b909c10cf15ce1a45fb563261521e749fc8a8364bd2f2567ca8abfabc592e6","downloaded_from":"2026-09-10T00:17:48.299Z","last_downloaded_at":"2026-09-10T00:17:59.597Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-920","title":"Entertainment—Broadcasters","topic_title":"Intangibles—Goodwill and Other","score":0.682,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dfeca9337a951258774c52d58de5f5f2c7fbfb1b155d3259e5b0bf4ad468071b","downloaded_from":"2026-09-10T00:03:46.608Z","last_downloaded_at":"2026-09-10T00:04:16.226Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"928-10","title":"Overall","topic_title":"Entertainment—Music","score":0.6788,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4f642cc0def4eab261949da320785a999cef7738e27682304bbd74a095fbd3e","downloaded_from":"2026-09-10T02:12:12.808Z","last_downloaded_at":"2026-09-10T02:12:18.919Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-10","title":"Overall","topic_title":"Other Assets and Deferred Costs","score":0.665,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98fa8064c75578c45495ed60d11713a9a5451d4efa9dc6b8327c94968b420dbd","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-915","title":"Development Stage Entities","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf97457bec5ad10e2b786ff9439d235205371acf1ba3541cfaf74c833c3e4fb4","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-940","title":"Financial Services—Brokers and Dealers","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd814a134ac3238729d93cb7b047eb1a934fc62f1258987b425569444773a2fb","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:57.240Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c4b5abc7b4106c9405c00e121efa5bf8092e90b6f857225677c8e7be70966a1","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:36.379Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-940","topic":"340","title":"Financial Services—Brokers and Dealers","area":"Assets","paragraphs":11,"summary":"ASC 340-940 governs two broker-dealer asset/deferred-cost items: exchange memberships and deferred underwriting expenses. Memberships are classified based on the rights conveyed — as an intangible asset (trading right only), an ownership interest in the exchange (cost less impairment), or a contributed interest (fair value with an equal, offsetting subordinated liability). Underwriting expenses incurred before securities are issued are deferred and recognized when the related underwriting revenues are recorded, or written off if the deal does not close.","concepts":["exchange membership","trading privileges","ownership interest in an exchange","contributed interest","liability subordinated to claims of general creditors","deferred underwriting expenses","syndicate cost allocation","cost less impairment"],"categories":["Recognition","Initial measurement","Subsequent measurement","Industry-specific"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-940-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ABC AgreementSupersededAccounting Standards Update No. 2016-1912/14/2016
940-340-25-2AmendedAccounting Standards Update No. 2016-1912/14/2016
940-340-35-1AmendedAccounting Standards Update No. 2016-0101/05/2016
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nABC Agreement | Superseded | Accounting Standards Update No. 2016-19 | 12/14/2016 |\n| | …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3850f15a88b23e1c6ae11f1a4d067774bc7bc68147550de38472d907dcd12c27","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:38.994Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478197","source_sha256":"d46dbd2a09633df2f51a1424dbbdf91fe5dc50624d2ba5c0f41a2fbeba37c843"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f69ec78c05d1a0029ae4d5c6cedc4c7e7cfdac2d83f4fbd75522b148934bbf34","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:38.994Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478197","source_sha256":"d46dbd2a09633df2f51a1424dbbdf91fe5dc50624d2ba5c0f41a2fbeba37c843"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8439597a48b1a6532b2618e9912b858562f9a19a36b1d2fc4cee39d10a4ad2e2","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:38.994Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478197","source_sha256":"d46dbd2a09633df2f51a1424dbbdf91fe5dc50624d2ba5c0f41a2fbeba37c843"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-940-05-1","para":"05-1","html":"
This Subtopic addresses other assets and deferred costs for brokers and dealers in securities (broker-dealers), including those associated with both of the following:
  1. a
    Exchange memberships. Exchange memberships provide the broker-dealer with the right to do business on the exchanges of which the broker-dealer is a member. Some exchange memberships also represent an ownership interest in the exchange. Due to the demutualization of some exchanges, membership may not be aligned with ownership in the exchange as trading privileges are disaggregated from ownership. Many broker-dealers have memberships in several exchanges and have more than one membership in any particular exchange. Memberships are usually registered in the names of individuals who are affiliated with the broker-dealer.
  2. b
    Underwriting. In connection with its participation in an underwriting of securities, a broker-dealer may receive various types of revenues as well as incur various related expenses. Such revenues include management fees (in the case of the lead or comanaging underwriter), underwriting fees (in the case of the lead underwriter and other members of the syndicate), and selling concession fees (in the case of all selling group members). The related expenses include but are not limited to marketing and advertising fees, legal fees, stabilization costs, and the other costs associated with setting up the syndicate group. These expenses are accumulated by the lead underwriter and are allocated to the other members of the syndicate on a pro-rata basis.
","snippet":"This Subtopic addresses other assets and deferred costs for brokers and dealers in securities (broker-dealers), including those associated with both of the following:\n(a) Exchange memberships. Exchange memberships provid…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:025b33b2fa9f9cbe1fe8d5aa8d74382c11ce8d4abe36154b91d84db1851d8958","downloaded_from":"2026-09-09T23:57:41.766Z","last_downloaded_at":"2026-09-09T23:57:41.766Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478372","source_sha256":"2b331bf218d93a4d26db0d21daa25c956f3639e6252529614bd33a0a633df334"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aeac016c1d25348e921dcc3c69144fda551799e09e80319fd5e378595b0e94d3","downloaded_from":"2026-09-09T23:57:41.766Z","last_downloaded_at":"2026-09-09T23:57:41.766Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478372","source_sha256":"2b331bf218d93a4d26db0d21daa25c956f3639e6252529614bd33a0a633df334"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3103fca70d83300b314970c65219a7ebaa58b1b3b4e4bd37f7c0a29225c9634d","downloaded_from":"2026-09-09T23:57:41.766Z","last_downloaded_at":"2026-09-09T23:57:41.766Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478372","source_sha256":"2b331bf218d93a4d26db0d21daa25c956f3639e6252529614bd33a0a633df334"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-940-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 940-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 940-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:729087b157acb1243581ff86b214f434bbb1fd2c904150089261282602d95130","downloaded_from":"2026-09-09T23:57:43.514Z","last_downloaded_at":"2026-09-09T23:57:43.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478887","source_sha256":"840933d5b3fb004e0ebbfc4dd79acddabb8485d759e84f403aff652dd2d12caf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a7aa7c29a44eb29944fe19dbe42a67f4136d7fb7c841081d34dc2ba81cabc32","downloaded_from":"2026-09-09T23:57:43.514Z","last_downloaded_at":"2026-09-09T23:57:43.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478887","source_sha256":"840933d5b3fb004e0ebbfc4dd79acddabb8485d759e84f403aff652dd2d12caf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7ed6830e79bc80d810927e215aa270236cd5289959ff111c65b9193477ba6b9","downloaded_from":"2026-09-09T23:57:43.514Z","last_downloaded_at":"2026-09-09T23:57:43.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478887","source_sha256":"840933d5b3fb004e0ebbfc4dd79acddabb8485d759e84f403aff652dd2d12caf"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Exchange Memberships","paragraphs":[{"citation":"340-940-25-1","para":"25-1","html":"
The accounting for exchange memberships depends on the rights they convey and the reasons they are held as assets, as follows:
  1. a
    Intangible asset. If an exchange membership represents only the right to conduct business on an exchange, the entity shall account for the exchange membership as an intangible asset according to the guidance in Subtopic 350-10. Such memberships may have finite or indefinite lives based on the terms of the arrangement and the estimated life of the membership.
  2. b
    Ownership interest in the exchange. An exchange membership shall be accounted for as an ownership interest in the exchange if either of the following conditions is met:
    1. 1
      The exchange membership represents both an ownership interest and the right to conduct business on the exchange, which are owned by a broker-dealer and held for operating purposes.
    2. 2
      The exchange membership represents an ownership interest, which must be held by a broker-dealer to conduct business on the exchange.
  3. c
    Contributed interest. A membership may be considered to be an asset of the broker-dealer if its use has been contributed to the broker-dealer under a formal or informal subordination agreement. An exchange membership contributed for the use of the broker-dealer and subordinated to claims of general creditors shall be accounted for as a contributed interest and a liability subordinated to claims of general creditors.
","snippet":"The accounting for exchange memberships depends on the rights they convey and the reasons they are held as assets, as follows:\n(a) Intangible asset. If an exchange membership represents only the right to conduct business…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e789848f14ea14ef8175a6138bb6e0395f4f9fbc119689fa847057acb7d6dd26","downloaded_from":"2026-09-09T23:57:50.114Z","last_downloaded_at":"2026-09-09T23:57:50.114Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477652","source_sha256":"8becce38f0a952ac18b9d292988c171ee71167af22d07147cacb357be9299605"}},{"citation":"340-940-25-2","para":"25-2","html":"
A membership held in the name of an individual is considered to be an asset of the broker-dealer if it is held by the broker-dealer under an agreement that would require the member, upon leaving the broker-dealer, to do any of the following:
  1. a
    Pay the member entity the amount necessary to purchase another membership (if the named individual wishes to retain the membership)
  2. b
    Sell the membership and pay the proceeds over to the member entity
  3. c
    Transfer the membership for a nominal consideration to a person designated by the member entity and satisfactory to the exchange.
","snippet":"A membership held in the name of an individual is considered to be an asset of the broker-dealer if it is held by the broker-dealer under an agreement that would require the member, upon leaving the broker-dealer, to do …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ee8948f146eb22c29b13db97bbd6d501023a0c2dfd99d7aa4b5b47386e7532a","downloaded_from":"2026-09-09T23:57:50.114Z","last_downloaded_at":"2026-09-09T23:57:50.114Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477652","source_sha256":"8becce38f0a952ac18b9d292988c171ee71167af22d07147cacb357be9299605"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04cbb2112de65abf3ba0eede9471e42822919a738db1a37bff8f625569bc2b7d","downloaded_from":"2026-09-09T23:57:50.114Z","last_downloaded_at":"2026-09-09T23:57:50.114Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477652","source_sha256":"8becce38f0a952ac18b9d292988c171ee71167af22d07147cacb357be9299605"}},{"block":null,"heading":"Underwriting Expenses","paragraphs":[{"citation":"340-940-25-3","para":"25-3","html":"
Underwriting expenses incurred before the actual issuance of the securities shall be deferred.
","snippet":"Underwriting expenses incurred before the actual issuance of the securities shall be deferred.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87e1907c145019b9e10485a00b6f4c14fa173b311eca38aa1de95580c1b9379e","downloaded_from":"2026-09-09T23:57:50.114Z","last_downloaded_at":"2026-09-09T23:57:50.114Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477652","source_sha256":"8becce38f0a952ac18b9d292988c171ee71167af22d07147cacb357be9299605"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97afa88095b17a1ac6e05edf9ce9935ad8729c3c791acb7b1dd4b3cc67b10333","downloaded_from":"2026-09-09T23:57:50.114Z","last_downloaded_at":"2026-09-09T23:57:50.114Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477652","source_sha256":"8becce38f0a952ac18b9d292988c171ee71167af22d07147cacb357be9299605"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:348eb09ad11d95b97c42110113b388aabf5d120287643542697faf1a5e67b011","downloaded_from":"2026-09-09T23:57:50.114Z","last_downloaded_at":"2026-09-09T23:57:50.114Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477652","source_sha256":"8becce38f0a952ac18b9d292988c171ee71167af22d07147cacb357be9299605"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Exchange Memberships","paragraphs":[{"citation":"340-940-30-1","para":"30-1","html":"
An exchange membership recognized under paragraph 940-340-25-1 as an ownership interest in the exchange shall be measured initially at cost.
","snippet":"An exchange membership recognized under paragraph 940-340-25-1 as an ownership interest in the exchange shall be measured initially at cost.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b11fb12046910e8e49cb01719e960b9f97aa5c0a208d95a4a9ff7530f5e7fe51","downloaded_from":"2026-09-09T23:57:51.737Z","last_downloaded_at":"2026-09-09T23:57:51.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477504","source_sha256":"b3e3b37d06b449c8347278e13795896b7057042ecfb5f6d73045cae2882490f2"}},{"citation":"340-940-30-2","para":"30-2","html":"
An exchange membership recognized under paragraph 940-340-25-1 as a contributed interest shall be measured initially at fair value with the related subordinated liability measured initially at an equal and offsetting amount.
","snippet":"An exchange membership recognized under paragraph 940-340-25-1 as a contributed interest shall be measured initially at fair value with the related subordinated liability measured initially at an equal and offsetting amo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:abd7a0a5ca21a82e1d0cce3330b0492daa001e824e5d5dfa104ed60077f4b992","downloaded_from":"2026-09-09T23:57:51.737Z","last_downloaded_at":"2026-09-09T23:57:51.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477504","source_sha256":"b3e3b37d06b449c8347278e13795896b7057042ecfb5f6d73045cae2882490f2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b34d21dc6b1228a75c4c9ab492ad7a1e39b6575f3184a6126123e99954c665f9","downloaded_from":"2026-09-09T23:57:51.737Z","last_downloaded_at":"2026-09-09T23:57:51.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477504","source_sha256":"b3e3b37d06b449c8347278e13795896b7057042ecfb5f6d73045cae2882490f2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aceeec116658f2ada37956f9c17b2e4747a755b2ff1869b44e7b363d2dcb4b9e","downloaded_from":"2026-09-09T23:57:51.737Z","last_downloaded_at":"2026-09-09T23:57:51.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477504","source_sha256":"b3e3b37d06b449c8347278e13795896b7057042ecfb5f6d73045cae2882490f2"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Exchange Memberships","paragraphs":[{"citation":"340-940-35-1","para":"35-1","html":"
An exchange membership recognized under paragraph 940-340-25-1 as an ownership interest in the exchange shall be measured subsequently at cost less impairment. Impairment shall be measured in accordance with paragraphs
321-10-35-3 through 35-4
.
","snippet":"An exchange membership recognized under paragraph 940-340-25-1 as an ownership interest in the exchange shall be measured subsequently at cost less impairment. Impairment shall be measured in accordance with paragraphs 3…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91bc64a545cb353382203090d9c1d6af628a886dd4ae36fae7b9182fb2e87353","downloaded_from":"2026-09-09T23:57:54.309Z","last_downloaded_at":"2026-09-09T23:57:54.309Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478121","source_sha256":"0f2fd484da12075ff31a8d3a36868345fa9b5a890ff08b1da2393791b23b3924"}},{"citation":"340-940-35-2","para":"35-2","html":"
An exchange membership recognized under paragraph 940-340-25-1 as a contributed interest shall be measured subsequently at fair value with the related subordinated liability measured subsequently at an equal and offsetting amount.
","snippet":"An exchange membership recognized under paragraph 940-340-25-1 as a contributed interest shall be measured subsequently at fair value with the related subordinated liability measured subsequently at an equal and offsetti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bbc7efa2b8e2d3419fd15dd54b94cfe51a933e339990b58fd734154ff8ab1ea","downloaded_from":"2026-09-09T23:57:54.309Z","last_downloaded_at":"2026-09-09T23:57:54.309Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478121","source_sha256":"0f2fd484da12075ff31a8d3a36868345fa9b5a890ff08b1da2393791b23b3924"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c940034c12794dcc97e7ddf2ffb313a002306122645c91bdb369b97d0985be7","downloaded_from":"2026-09-09T23:57:54.309Z","last_downloaded_at":"2026-09-09T23:57:54.309Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478121","source_sha256":"0f2fd484da12075ff31a8d3a36868345fa9b5a890ff08b1da2393791b23b3924"}},{"block":null,"heading":"Underwriting Expenses","paragraphs":[{"citation":"340-940-35-3","para":"35-3","html":"
Underwriting expenses deferred under the guidance in paragraph 940-340-25-3 shall be recognized at the time the related revenues are recorded. In the event that the transaction is not completed and the securities are not issued, the entities that have agreed to participate in the costs associated with the underwriting shall write those costs off to expense.
","snippet":"Underwriting expenses deferred under the guidance in paragraph 940-340-25-3 shall be recognized at the time the related revenues are recorded. In the event that the transaction is not completed and the securities are not…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6f81451c92d0c5ebecc12dca3d2709a1ba6ce25c46ec19c02d0b8f5ced3664d","downloaded_from":"2026-09-09T23:57:54.309Z","last_downloaded_at":"2026-09-09T23:57:54.309Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478121","source_sha256":"0f2fd484da12075ff31a8d3a36868345fa9b5a890ff08b1da2393791b23b3924"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ef61ee774d1c1e30c011458761fa320d88e826e730bfccaee7feeb5f88aba04","downloaded_from":"2026-09-09T23:57:54.309Z","last_downloaded_at":"2026-09-09T23:57:54.309Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478121","source_sha256":"0f2fd484da12075ff31a8d3a36868345fa9b5a890ff08b1da2393791b23b3924"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:efac7afd3ace0969c4d784b357d203eba75f6b5d46ff3cc0731e933e40ebc51d","downloaded_from":"2026-09-09T23:57:54.309Z","last_downloaded_at":"2026-09-09T23:57:54.309Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478121","source_sha256":"0f2fd484da12075ff31a8d3a36868345fa9b5a890ff08b1da2393791b23b3924"}}],"enrichment":{"summary":"ASC 340-940 governs two broker-dealer asset/deferred-cost items: exchange memberships and deferred underwriting expenses. Memberships are classified based on the rights conveyed — as an intangible asset (trading right only), an ownership interest in the exchange (cost less impairment), or a contributed interest (fair value with an equal, offsetting subordinated liability). Underwriting expenses incurred before securities are issued are deferred and recognized when the related underwriting revenues are recorded, or written off if the deal does not close.","key_points":["An exchange membership that conveys only the right to conduct business on an exchange is accounted for as an intangible asset under Subtopic 350-10, with a finite or indefinite life depending on the arrangement terms (340-940-25-1(a)).","A membership is accounted for as an ownership interest in the exchange if it conveys both ownership and trading rights held for operating purposes, or if ownership must be held to conduct business on the exchange (340-940-25-1(b)).","A membership whose use is contributed to the broker-dealer under a formal or informal subordination agreement and subordinated to general creditors is recorded as a contributed interest with a corresponding subordinated liability (340-940-25-1(c)).","A membership registered in an individual's name is an asset of the broker-dealer if an agreement requires the departing member to fund a replacement membership, remit sale proceeds, or transfer the membership for nominal consideration to the entity's designee (340-940-25-2).","Ownership-interest memberships are initially measured at cost (340-940-30-1) and subsequently at cost less impairment measured under paragraphs 321-10-35-3 through 35-4 (340-940-35-1).","Contributed-interest memberships are measured initially and subsequently at fair value, with the related subordinated liability measured at an equal and offsetting amount (340-940-30-2; 340-940-35-2).","Underwriting expenses incurred before issuance of the securities are deferred (340-940-25-3) and recognized when the related revenues are recorded; if the transaction is not completed, participating entities write the costs off to expense (340-940-35-3)."],"categories":["Recognition","Initial measurement","Subsequent measurement","Industry-specific"],"audience_level":"intermediate","student_note":"The exam trap is assuming all exchange memberships get the same treatment — classification turns entirely on whether the membership conveys ownership, only trading rights, or is contributed under a subordination agreement, and each bucket has a different measurement basis (350-10 intangible, cost less 321-10 impairment, or fair value with an offsetting liability). Also remember deferred underwriting costs follow the revenue: recognized when underwriting revenue is recorded, expensed immediately if the deal dies.","related_topics":["940-10","940-340","350-10","321-10","606-10","940-20"],"key_concepts":["exchange membership","trading privileges","ownership interest in an exchange","contributed interest","liability subordinated to claims of general creditors","deferred underwriting expenses","syndicate cost allocation","cost less impairment"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74fe93de2e335ac127b3de9208f91262029bc24ff647e29202af3856316b0311","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:57.240Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"940-20","title":"Broker-Dealer Activities","topic_title":"Financial Services—Brokers and Dealers","score":0.7748,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ba8822ac8688a3123647b624393758d68f65a298a14dd0e82e2eb674fbe6ea8","downloaded_from":"2026-09-10T02:13:27.861Z","last_downloaded_at":"2026-09-10T02:13:58.835Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"320-940","title":"Financial Services—Brokers and Dealers","topic_title":"Investments—Debt Securities","score":0.7563,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39dcf6022e519b3bd22938155441c68f808421f858b0db98dc8492886281844b","downloaded_from":"2026-09-09T23:35:32.391Z","last_downloaded_at":"2026-09-09T23:35:58.415Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-940","title":"Financial Services—Brokers and Dealers","topic_title":"Liabilities","score":0.7301,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5686a47e1dd9756c04cad89cd3399d29763d6db6e3c0dbd48917ac7875a10b7d","downloaded_from":"2026-09-10T00:18:03.082Z","last_downloaded_at":"2026-09-10T00:18:22.655Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"325-942","title":"Financial Services—Depository and Lending","topic_title":"Investments—Other","score":0.7116,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:527f8b4010b2e258de15187bcca0af067ae37e125f712390854842c63e7b43a9","downloaded_from":"2026-09-09T23:45:52.117Z","last_downloaded_at":"2026-09-09T23:46:08.804Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-10","title":"Overall","topic_title":"Other Assets and Deferred Costs","score":0.7079,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2eaac95c129b38bca2f5b376ec32be0caa1b9c372b7c78cd115910fec60c49ea","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-09T23:55:04.724Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-940","title":"Financial Services—Brokers and Dealers","topic_title":"Other Expenses","score":0.7038,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc60b8881f0861d637ab8798a0f3aff2e5988b2dbc8ec319bc6c702cb8fa723e","downloaded_from":"2026-09-10T01:10:51.348Z","last_downloaded_at":"2026-09-10T01:11:02.039Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-928","title":"Entertainment—Music","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f23de6bde3605d5221ebf0225e0da38938e8dd2b456f4ea7a72f081ca4425ba","downloaded_from":"2026-09-09T23:57:11.675Z","last_downloaded_at":"2026-09-09T23:57:36.379Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-944","title":"Financial Services—Insurance","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:881cc9f2f2a3cf3cb714e1234fe40d4df495a6beef1e824bd1ce5f8c06daf71a","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:58:11.192Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2740d4ae2dd0be643d2b4de846b8721aeb3f7b7dcc622ed6640d865a473ec71","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:57.240Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-944","topic":"340","title":"Financial Services—Insurance","area":"Assets","paragraphs":6,"summary":"ASC 340-944 governs how insurance entities account for and report certain deferred costs and prepaid expenses, organized into a General Subsection and a Reinsurance Contracts Subsection. Its operative rule is that amounts an insurer pays a reinsurer for the unexpired portion of reinsured contracts — prepaid reinsurance premiums — must be reported separately as assets (340-944-25-1), rather than netted against related liabilities.","concepts":["prepaid reinsurance premiums","reinsurance contract","ceding entity","deferred costs","unexpired portion of reinsured contracts","gross presentation of reinsurance","insurance entity"],"categories":["Recognition","Presentation","Industry-specific","Financial statement presentation"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-944-05-1","para":"05-1","html":"
This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses. The guidance in this Subtopic is provided in the following two Subsections:
  1. a
    General
  2. b
    Reinsurance contracts.
","snippet":"This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses. The guidance in this Subtopic is provided in the following two Subsectio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f22fecd232a71d4958275ea6cdb4fba7df83a0c0c3e33c058f26316e6f8e260","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:825593d3a22b1a7d173c8b733a5525e6e12885020f7c9ae8aedeb4906529be29","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"340-944-05-2","para":"05-2","html":"
This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses related to reinsurance contracts.
","snippet":"This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses related to reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e39339ee66f1d8d06a5df8f9179f8579d6caeea0ea731eb4929337ed851c2bb3","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b679ab339b91e67487001191591667b6f15c065dcea105e1818f17cb580c062f","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:daf20bcc847847527ec0bf5cda68ac74a7a7ff7c9910a8db5061c570fc06b869","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-944-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b08a46e966e02ed14624e6fa2bcc77502420382e50cd79dccb8e0759f6afd83e","downloaded_from":"2026-09-09T23:58:01.561Z","last_downloaded_at":"2026-09-09T23:58:01.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478766","source_sha256":"a3f3535e9e0e95b54d16b52f4667e2f9062966d36b2513a2a976df37826d60d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab772e9adbcd5bc16aced006690f5cc3807ee04309631a881016ff0ceac51dd3","downloaded_from":"2026-09-09T23:58:01.561Z","last_downloaded_at":"2026-09-09T23:58:01.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478766","source_sha256":"a3f3535e9e0e95b54d16b52f4667e2f9062966d36b2513a2a976df37826d60d4"}},{"block":"Reinsurance Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"340-944-15-2","para":"15-2","html":"
The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below.
","snippet":"The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:961206b7acf1a02950d4643d690e440cfbea381ecc27f946818b1681adb0cc2e","downloaded_from":"2026-09-09T23:58:01.561Z","last_downloaded_at":"2026-09-09T23:58:01.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478766","source_sha256":"a3f3535e9e0e95b54d16b52f4667e2f9062966d36b2513a2a976df37826d60d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de9ffe976231611ff298f16761d5891f28aa71413d5446164fcdf0a47debecb8","downloaded_from":"2026-09-09T23:58:01.561Z","last_downloaded_at":"2026-09-09T23:58:01.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478766","source_sha256":"a3f3535e9e0e95b54d16b52f4667e2f9062966d36b2513a2a976df37826d60d4"}},{"block":"Reinsurance Contracts","heading":"Instruments","paragraphs":[{"citation":"340-944-15-3","para":"15-3","html":"
The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to reinsurance contracts. For guidance on identifying a reinsurance contract, see the Reinsurance Contracts Subsection of Section 944-20-15.
","snippet":"The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to reinsurance contracts. For guidance on identifying a reinsurance contract, see the Reinsurance Contracts Subsection of Section 944-20…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b34e034ca4530e16f1796d5c29c2620db2622234dfa21776dc414c0837343b9a","downloaded_from":"2026-09-09T23:58:01.561Z","last_downloaded_at":"2026-09-09T23:58:01.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478766","source_sha256":"a3f3535e9e0e95b54d16b52f4667e2f9062966d36b2513a2a976df37826d60d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef22d9f50a392d65737614517b206dca9b116b72cf655bbaa3ca9badc4998f2d","downloaded_from":"2026-09-09T23:58:01.561Z","last_downloaded_at":"2026-09-09T23:58:01.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478766","source_sha256":"a3f3535e9e0e95b54d16b52f4667e2f9062966d36b2513a2a976df37826d60d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:edf2fb79ae0833ea2f0d7b309d08bd20e8da199bd1e9c9331fd5e586433fdf56","downloaded_from":"2026-09-09T23:58:01.561Z","last_downloaded_at":"2026-09-09T23:58:01.561Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478766","source_sha256":"a3f3535e9e0e95b54d16b52f4667e2f9062966d36b2513a2a976df37826d60d4"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Reinsurance","heading":"Prepaid Insurance Premiums","paragraphs":[{"citation":"340-944-25-1","para":"25-1","html":"
Amounts paid to the reinsurer relating to the unexpired portion of reinsured contracts (prepaid reinsurance premiums) shall be reported separately as assets.
","snippet":"Amounts paid to the reinsurer relating to the unexpired portion of reinsured contracts (prepaid reinsurance premiums) shall be reported separately as assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8adf8a70388cd023968f8c7f177d274e5b1a496ce15f72cb9d71d571a82139ba","downloaded_from":"2026-09-09T23:58:07.949Z","last_downloaded_at":"2026-09-09T23:58:07.949Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479510","source_sha256":"6c64914e947d71445493ac580e5334ce06e6087c3c6060432e47897b5b7a891e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0af32dd0e0bc0d52d941663593fbad69b95cc57daef96ed88d977d71cbe4900","downloaded_from":"2026-09-09T23:58:07.949Z","last_downloaded_at":"2026-09-09T23:58:07.949Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479510","source_sha256":"6c64914e947d71445493ac580e5334ce06e6087c3c6060432e47897b5b7a891e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf155676ed2fcea9b4935d3a9269f40961d65fb3051e84edb5a7f6406afd1e83","downloaded_from":"2026-09-09T23:58:07.949Z","last_downloaded_at":"2026-09-09T23:58:07.949Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479510","source_sha256":"6c64914e947d71445493ac580e5334ce06e6087c3c6060432e47897b5b7a891e"}}],"enrichment":{"summary":"ASC 340-944 governs how insurance entities account for and report certain deferred costs and prepaid expenses, organized into a General Subsection and a Reinsurance Contracts Subsection. Its operative rule is that amounts an insurer pays a reinsurer for the unexpired portion of reinsured contracts — prepaid reinsurance premiums — must be reported separately as assets (340-944-25-1), rather than netted against related liabilities.","key_points":["The Subtopic addresses accounting and financial reporting for certain deferred costs and prepaid expenses of insurance entities, split into General and Reinsurance Contracts Subsections (340-944-05-1).","Scope follows the Overall Insurance Subtopic's scope and scope exceptions in Section 944-10-15 (340-944-15-1).","The Reinsurance Contracts Subsections apply only to reinsurance contracts, with identification of a reinsurance contract governed by the Reinsurance Contracts Subsection of Section 944-20-15 (340-944-15-3).","Amounts paid to the reinsurer relating to the unexpired portion of reinsured contracts (prepaid reinsurance premiums) shall be reported separately as assets (340-944-25-1).","The separate-asset requirement reflects gross presentation: the ceding entity does not offset prepaid reinsurance premiums against unearned premium or other insurance liabilities."],"categories":["Recognition","Presentation","Industry-specific","Financial statement presentation"],"audience_level":"intermediate","student_note":"The one rule to remember is gross reporting: prepaid reinsurance premiums are a separate asset, not a reduction of the insurer's unearned premium liability — a common exam trap is netting reinsurance recoverables and prepaid premiums against direct insurance liabilities.","related_topics":["944-10","944-20","944-30","944-40","944-605","340-10"],"key_concepts":["prepaid reinsurance premiums","reinsurance contract","ceding entity","deferred costs","unexpired portion of reinsured contracts","gross presentation of reinsurance","insurance entity"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f5d3c8ae8020f7f800ee75af73a6859f63c3c00df1b38827e0fb6ced8c014742","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:58:11.192Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"405-944","title":"Financial Services—Insurance","topic_title":"Liabilities","score":0.8434,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:16c9d5634edaf7eab3c1b08733f2e5c8a5367c69c686d83561bb1023d7418370","downloaded_from":"2026-09-10T00:18:57.648Z","last_downloaded_at":"2026-09-10T00:19:09.841Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"825-944","title":"Financial Services—Insurance","topic_title":"Financial Instruments","score":0.8226,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1348b0551293eda51d1cf37be7c3a8e4e22d8fb8a861028adfaa8fe0ba66a120","downloaded_from":"2026-09-10T01:45:26.659Z","last_downloaded_at":"2026-09-10T01:45:54.729Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-20","title":"Insurance Activities","topic_title":"Financial Services—Insurance","score":0.7655,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d12eaa2e9572e90736d3aec9376c278123b16c1797ec6bebec758932851d74a6","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-944","title":"Financial Services—Insurance","topic_title":"Other Expenses","score":0.7498,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf93ffd6d49f1d4f58e7c0bf641c27e493ad5fca49a7d43bacf1f89f537e26cf","downloaded_from":"2026-09-10T01:11:16.270Z","last_downloaded_at":"2026-09-10T01:11:38.484Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-954","title":"Health Care Entities","topic_title":"Other Assets and Deferred Costs","score":0.7393,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1210ffcf2071927104b536dbd775d6846b50ab3615d04cfaefda9c36535dfcaf","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"815-944","title":"Financial Services—Insurance","topic_title":"Derivatives and Hedging","score":0.7373,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bf4c910f144f305b3fa83ea3aeee4ad25395ea9798332b365a334a349d7f87d4","downloaded_from":"2026-09-10T01:40:24.221Z","last_downloaded_at":"2026-09-10T01:40:44.205Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-940","title":"Financial Services—Brokers and Dealers","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd814a134ac3238729d93cb7b047eb1a934fc62f1258987b425569444773a2fb","downloaded_from":"2026-09-09T23:57:38.994Z","last_downloaded_at":"2026-09-09T23:57:57.240Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-948","title":"Financial Services—Mortgage Banking","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95750cb159c8f43b29550583730317b88fdcabe5294a53d2ec64631330f35de4","downloaded_from":"2026-09-09T23:58:13.298Z","last_downloaded_at":"2026-09-09T23:58:25.494Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68df1b4b8ae70942fd725ddc2c5187d65d7743c1bf5c38cb6f30f10df23dc98b","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:58:11.192Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-948","topic":"340","title":"Financial Services—Mortgage Banking","area":"Assets","paragraphs":5,"summary":"This Subtopic governs the accounting for the cost of issuing certain Government National Mortgage Association (GNMA) securities by mortgage banking entities. Issuers electing the internal reserve method must capitalize the one month's interest cost required to be paid to a trustee (340-948-25-1), subject to a ceiling equal to the present value of net future servicing income (340-948-30-1). The capitalized amount is then amortized in proportion to, and over the period of, estimated net servicing income (340-948-35-1).","concepts":["gnma securities","internal reserve method","capitalized issuance cost","present value of net future servicing income","servicing revenues and costs","amortization of deferred costs","mortgage banking"],"categories":["Initial measurement","Subsequent measurement","Industry-specific","Recognition"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-948-05-1","para":"05-1","html":"
This Subtopic addresses the accounting for costs of issuing certain Government National Mortgage Association (GNMA) securities.
","snippet":"This Subtopic addresses the accounting for costs of issuing certain Government National Mortgage Association (GNMA) securities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7a342dbd3e202405642090b5261a5f79be9788c2be0a78a0720048104ed2cbf","downloaded_from":"2026-09-09T23:58:13.298Z","last_downloaded_at":"2026-09-09T23:58:13.298Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479240","source_sha256":"81ad4537f58880fd1c6f77deda5b8dbbead79211d30b2032bf514403f6e932af"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc4ed071a2243877a56c29c51cec68fe8519f3a62b0f19a965c95d07f77b16a7","downloaded_from":"2026-09-09T23:58:13.298Z","last_downloaded_at":"2026-09-09T23:58:13.298Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479240","source_sha256":"81ad4537f58880fd1c6f77deda5b8dbbead79211d30b2032bf514403f6e932af"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25929ea90208fc114689042add5a0e48d99c1b75c58ca07083436fce8e9cbd50","downloaded_from":"2026-09-09T23:58:13.298Z","last_downloaded_at":"2026-09-09T23:58:13.298Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479240","source_sha256":"81ad4537f58880fd1c6f77deda5b8dbbead79211d30b2032bf514403f6e932af"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-948-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 948-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 948-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a8c87e9a68d2637262f4172b477534f963bdec9395d7881d88b1bf2d74332ff","downloaded_from":"2026-09-09T23:58:17.296Z","last_downloaded_at":"2026-09-09T23:58:17.296Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477595","source_sha256":"b59a5aa8209871d840bba45ff3b18d6d4fbc8ae86636db9821d11b0d5154c2e4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8fdd578ac2efdd95d185c28ddaf854811d8d896a525986288699567c4740caa1","downloaded_from":"2026-09-09T23:58:17.296Z","last_downloaded_at":"2026-09-09T23:58:17.296Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477595","source_sha256":"b59a5aa8209871d840bba45ff3b18d6d4fbc8ae86636db9821d11b0d5154c2e4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6597d84a458defa4524dd6e85964bd3a03c4206fa06314a84684b9938d52bdb","downloaded_from":"2026-09-09T23:58:17.296Z","last_downloaded_at":"2026-09-09T23:58:17.296Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477595","source_sha256":"b59a5aa8209871d840bba45ff3b18d6d4fbc8ae86636db9821d11b0d5154c2e4"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Costs of Issuing Certain GNMA Securities","paragraphs":[{"citation":"340-948-25-1","para":"25-1","html":"
One month's interest cost, which is required to be paid to a trustee by issuers of Government National Mortgage Association (GNMA) securities electing the internal reserve method, shall be capitalized.
","snippet":"One month's interest cost, which is required to be paid to a trustee by issuers of Government National Mortgage Association (GNMA) securities electing the internal reserve method, shall be capitalized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3901ebfa1a9e99044b0ca001cc7753966c2a9f671a0d9cdc817dc89826ee6683","downloaded_from":"2026-09-09T23:58:21.295Z","last_downloaded_at":"2026-09-09T23:58:21.295Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478315","source_sha256":"200a0a2e992d8fff85663e4f9cef14420580744231b3cc8883b3cf5f50bedbd8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e225186308d37b8260324b9508048de40ad40e6310a34aa2a3d9d17c339a382","downloaded_from":"2026-09-09T23:58:21.295Z","last_downloaded_at":"2026-09-09T23:58:21.295Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478315","source_sha256":"200a0a2e992d8fff85663e4f9cef14420580744231b3cc8883b3cf5f50bedbd8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:740df2905b2b2cec036182e70a299d6bb413c51062386accefe538b4f45125f1","downloaded_from":"2026-09-09T23:58:21.295Z","last_downloaded_at":"2026-09-09T23:58:21.295Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478315","source_sha256":"200a0a2e992d8fff85663e4f9cef14420580744231b3cc8883b3cf5f50bedbd8"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Costs of Issuing Certain GNMA Securities","paragraphs":[{"citation":"340-948-30-1","para":"30-1","html":"
The aggregate amount capitalized, including amounts capitalized under other provisions of this Subtopic, shall not exceed the present value of net future servicing income. The rate used to determine the present value shall be an appropriate long-term interest rate. For this purpose, estimates of future servicing revenue shall include expected late charges and other ancillary revenue. Estimates of expected future servicing costs shall include direct costs associated with performing the servicing function and appropriate allocations of other costs. Estimated future servicing costs may be determined on an incremental cost basis.
","snippet":"The aggregate amount capitalized, including amounts capitalized under other provisions of this Subtopic, shall not exceed the present value of net future servicing income. The rate used to determine the present value sha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f9980fffb22bc2de67229c3e8d025eda9a8ed45296db24efc6ffa2f8124796e8","downloaded_from":"2026-09-09T23:58:23.231Z","last_downloaded_at":"2026-09-09T23:58:23.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477517","source_sha256":"09535c993dd18b6daa2b14e679210f044252610066b67676bd0f57439ef23769"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23fdfa00d2ddcba943e1c8f1d640c7d50b2c48841b903818aa2a547d3b9c3642","downloaded_from":"2026-09-09T23:58:23.231Z","last_downloaded_at":"2026-09-09T23:58:23.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477517","source_sha256":"09535c993dd18b6daa2b14e679210f044252610066b67676bd0f57439ef23769"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0367230f6e7ae23aee2a4fc003532a8434d920bb2aea4810eb12642323dede68","downloaded_from":"2026-09-09T23:58:23.231Z","last_downloaded_at":"2026-09-09T23:58:23.231Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477517","source_sha256":"09535c993dd18b6daa2b14e679210f044252610066b67676bd0f57439ef23769"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Costs of Issuing Certain GNMA Securities","paragraphs":[{"citation":"340-948-35-1","para":"35-1","html":"
The amount capitalized shall be amortized in proportion to, and over the period of, estimated net servicing income—the excess of servicing revenues over servicing costs.
","snippet":"The amount capitalized shall be amortized in proportion to, and over the period of, estimated net servicing income—the excess of servicing revenues over servicing costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f228ba8edbd78b7e6b2f6727106d1d806acca81cd88b1244fc74e901d5d9f953","downloaded_from":"2026-09-09T23:58:25.494Z","last_downloaded_at":"2026-09-09T23:58:25.494Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478214","source_sha256":"0fcc3e1cdb153d1d17312e86b253cbbf4a86d8a3c90055efd60251ae236a767d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4477302472eee5c239b227c265dd78394643077d2bfff09e80b4a7f54f57cfc2","downloaded_from":"2026-09-09T23:58:25.494Z","last_downloaded_at":"2026-09-09T23:58:25.494Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478214","source_sha256":"0fcc3e1cdb153d1d17312e86b253cbbf4a86d8a3c90055efd60251ae236a767d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39ab534c82b8318aa6c79b675d55d2734740fff8953872e38f731f9ed0c30414","downloaded_from":"2026-09-09T23:58:25.494Z","last_downloaded_at":"2026-09-09T23:58:25.494Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478214","source_sha256":"0fcc3e1cdb153d1d17312e86b253cbbf4a86d8a3c90055efd60251ae236a767d"}}],"enrichment":{"summary":"This Subtopic governs the accounting for the cost of issuing certain Government National Mortgage Association (GNMA) securities by mortgage banking entities. Issuers electing the internal reserve method must capitalize the one month's interest cost required to be paid to a trustee (340-948-25-1), subject to a ceiling equal to the present value of net future servicing income (340-948-30-1). The capitalized amount is then amortized in proportion to, and over the period of, estimated net servicing income (340-948-35-1).","key_points":["One month's interest cost that issuers of GNMA securities electing the internal reserve method must pay to a trustee shall be capitalized (340-948-25-1).","The aggregate amount capitalized, including amounts capitalized under other provisions of the Subtopic, shall not exceed the present value of net future servicing income, discounted at an appropriate long-term interest rate (340-948-30-1).","Estimated future servicing revenue used in the ceiling test includes expected late charges and other ancillary revenue (340-948-30-1).","Estimated future servicing costs include direct costs of performing the servicing function plus appropriate allocations of other costs, and may be determined on an incremental cost basis (340-948-30-1).","The capitalized amount is amortized in proportion to, and over the period of, estimated net servicing income—the excess of servicing revenues over servicing costs (340-948-35-1).","The scope of this Subtopic follows the Overall Subtopic scope in Section 948-10-15 (340-948-15-1)."],"categories":["Initial measurement","Subsequent measurement","Industry-specific","Recognition"],"audience_level":"intermediate","student_note":"This is a narrow, industry-specific deferral rule: the one month's trustee interest is an asset, not an immediate expense, but only up to the present value of net future servicing income. A common misunderstanding is treating the cap as applying only to this cost—it is an aggregate ceiling that includes amounts capitalized under other provisions of Topic 948.","related_topics":["948-10","860-50","948-310","835-30"],"key_concepts":["gnma securities","internal reserve method","capitalized issuance cost","present value of net future servicing income","servicing revenues and costs","amortization of deferred costs","mortgage banking"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06b853a381209681d3c7d8087b5b08fad115194072106b5863b7edc2c776b61a","downloaded_from":"2026-09-09T23:58:13.298Z","last_downloaded_at":"2026-09-09T23:58:25.494Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"720-948","title":"Financial Services—Mortgage Banking","topic_title":"Other Expenses","score":0.6563,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c30ff49d5eefceba417f8eb34a5643ae794b29fc67296d97e09199868717c898","downloaded_from":"2026-09-10T01:11:56.550Z","last_downloaded_at":"2026-09-10T01:12:06.328Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-20","title":"Capitalization of Interest","topic_title":"Interest","score":0.652,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7e1f6988f27f8a63c8ca7657fb25ea6b2d6349157cfa778e4619d94cf00048d","downloaded_from":"2026-09-10T01:48:54.719Z","last_downloaded_at":"2026-09-10T01:49:28.506Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"948-10","title":"Overall","topic_title":"Financial Services—Mortgage Banking","score":0.6513,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fae92a7847588b2763c05cf94285a6c0ad8542356c234e3694ab4993f8f163a5","downloaded_from":"2026-09-10T02:20:07.609Z","last_downloaded_at":"2026-09-10T02:20:23.493Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-948","title":"Financial Services—Mortgage Banking","topic_title":"Receivables","score":0.6474,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8df61519f3ca618decdbc5cc685d117982cbca37ab981484d947166ad15499f","downloaded_from":"2026-09-09T23:30:42.417Z","last_downloaded_at":"2026-09-09T23:31:26.845Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-20","title":"Nonrefundable Fees and Other Costs","topic_title":"Receivables","score":0.6446,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90009297227468fbdd4f50d85332c3ff8c6402793cf62ed951e79a9e52144950","downloaded_from":"2026-09-09T23:25:44.299Z","last_downloaded_at":"2026-09-09T23:26:21.150Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-980","title":"Regulated Operations","topic_title":"Interest","score":0.6345,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08cf5b30d1ad706fe189df450f5c903984293103993e3ee2736781916aaac843","downloaded_from":"2026-09-10T01:51:29.287Z","last_downloaded_at":"2026-09-10T01:51:51.446Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-944","title":"Financial Services—Insurance","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:881cc9f2f2a3cf3cb714e1234fe40d4df495a6beef1e824bd1ce5f8c06daf71a","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:58:11.192Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-952","title":"Franchisors","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bffba5b9d2ee46d285042f26739d4bc97e810b0fc267caad6a122eaa749585e0","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e5ce3e3175f7e956fe5ebd7fde832302874853064097cca576963155f9e6e8f","downloaded_from":"2026-09-09T23:58:13.298Z","last_downloaded_at":"2026-09-09T23:58:25.494Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-952","topic":"340","title":"Franchisors","area":"Assets","paragraphs":6,"summary":"ASC 340-952 formerly contained the franchisor-specific guidance on deferred costs (for example, direct and indirect costs of franchise sales). Every paragraph in the subtopic — Sections 05, 15, and 25 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Franchisors now account for costs of obtaining and fulfilling franchise contracts under ASC 340-40 and recognize franchise revenue under ASC 606 (including the industry guidance in ASC 952-606).","concepts":["franchisor deferred costs","superseded guidance","initial franchise fees","costs to obtain a contract","contract fulfillment costs","revenue from contracts with customers"],"categories":["Revenue","Industry-specific","Transition and effective dates","Recognition"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-952-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Franchisor Superseded Accounting Standards Update No. 2014-09 05/28/2014
952-340-05-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
952-340-15-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
952-340-25-1 through 25-3
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nFranchisor | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |\n| | | |…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93cf831b32f30394ddc7e10036915b8ce37217b7ea7399b499ead0c2810a4aa5","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:29.537Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478653","source_sha256":"bb2525fc6724d563dec79137c395c118cefffdbdac8fdbbe10db5cddc68a8fc8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e90bceac48df6ca09760451b01db0e3b51581c26108f4c64ed3a2a169d593f1e","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:29.537Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478653","source_sha256":"bb2525fc6724d563dec79137c395c118cefffdbdac8fdbbe10db5cddc68a8fc8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:597e7e9b44bb9945e832a06040158bbce70a2f2f0fb2fc061ccc53fe4807b4b8","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:29.537Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478653","source_sha256":"bb2525fc6724d563dec79137c395c118cefffdbdac8fdbbe10db5cddc68a8fc8"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-952-05-1","para":"05-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8c9b55441d69b4943e95d6367bbeaefe1ef54002f49bf9e1287cd052aa1cb8c","downloaded_from":"2026-09-09T23:58:31.521Z","last_downloaded_at":"2026-09-09T23:58:31.521Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477904","source_sha256":"d956b663de2d467d429452570dd3f191b2385963717504179742f55c0e7e210c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:133d12e97a6cd4bac5f664ccce92f8b3b13ba02e4c0ac95f471d7414bee7e911","downloaded_from":"2026-09-09T23:58:31.521Z","last_downloaded_at":"2026-09-09T23:58:31.521Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477904","source_sha256":"d956b663de2d467d429452570dd3f191b2385963717504179742f55c0e7e210c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73a44964a5e17dec6b55a2905c7db5d3d78527d5efd7183f9c0d2687a4afaedc","downloaded_from":"2026-09-09T23:58:31.521Z","last_downloaded_at":"2026-09-09T23:58:31.521Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477904","source_sha256":"d956b663de2d467d429452570dd3f191b2385963717504179742f55c0e7e210c"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-952-15-1","para":"15-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fdb38c191c1a7604425c2e5fa23e6436efb41156202dddddb39932824b9e82ab","downloaded_from":"2026-09-09T23:58:35.487Z","last_downloaded_at":"2026-09-09T23:58:35.487Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477495","source_sha256":"1dc4a3929fe0c7acc6436f190a1c928a5b63c140b3f2de683935cf31eff49d63"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f55af9a79d2e2b85d24be5f2fac1b84680a3752a6bc34b47127ce477d43af9e1","downloaded_from":"2026-09-09T23:58:35.487Z","last_downloaded_at":"2026-09-09T23:58:35.487Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477495","source_sha256":"1dc4a3929fe0c7acc6436f190a1c928a5b63c140b3f2de683935cf31eff49d63"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9beafe5f36c06dca68eb9ed925d40843fbeebeadf9995670c268cd591a088278","downloaded_from":"2026-09-09T23:58:35.487Z","last_downloaded_at":"2026-09-09T23:58:35.487Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477495","source_sha256":"1dc4a3929fe0c7acc6436f190a1c928a5b63c140b3f2de683935cf31eff49d63"}},{"number":"20","label":"20 Glossary","anchor":"20-glossary","is_sec":false,"groups":[],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202","downloaded_from":"2026-09-09T23:58:38.610Z","last_downloaded_at":"2026-09-09T23:58:38.610Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477421","source_sha256":"fe185684e1b00d7c438b769c156a274b63f7ec643f83b2e09ac403f611f6622a"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-952-25-1","para":"25-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67e1371d5b2e8365d8a2b545734ab5f8e91fa5d345611ba53b6ab6c5855320be","downloaded_from":"2026-09-09T23:58:41.693Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479115","source_sha256":"bbe36d9949ba237e07c33e7790a781fdcb9703df5549b8285f17f26f4dc5e94f"}},{"citation":"340-952-25-2","para":"25-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6085d9dcb1622d184162d35583904e6185869672692fe5a8fa7056af7924b883","downloaded_from":"2026-09-09T23:58:41.693Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479115","source_sha256":"bbe36d9949ba237e07c33e7790a781fdcb9703df5549b8285f17f26f4dc5e94f"}},{"citation":"340-952-25-3","para":"25-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b21393ae903af7ecde1f2b0b18248185492d2b335ac576f0e915a44e92c78c2","downloaded_from":"2026-09-09T23:58:41.693Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479115","source_sha256":"bbe36d9949ba237e07c33e7790a781fdcb9703df5549b8285f17f26f4dc5e94f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58804ebe679d01e9e9f86d5c2f51066972ed45e7118ba6a36c29beb12f90fafd","downloaded_from":"2026-09-09T23:58:41.693Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479115","source_sha256":"bbe36d9949ba237e07c33e7790a781fdcb9703df5549b8285f17f26f4dc5e94f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b20a81fa350a7d33f432bdabc6f970d528c6f0c6418b330f98ef90c12e435423","downloaded_from":"2026-09-09T23:58:41.693Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479115","source_sha256":"bbe36d9949ba237e07c33e7790a781fdcb9703df5549b8285f17f26f4dc5e94f"}}],"enrichment":{"summary":"ASC 340-952 formerly contained the franchisor-specific guidance on deferred costs (for example, direct and indirect costs of franchise sales). Every paragraph in the subtopic — Sections 05, 15, and 25 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Franchisors now account for costs of obtaining and fulfilling franchise contracts under ASC 340-40 and recognize franchise revenue under ASC 606 (including the industry guidance in ASC 952-606).","key_points":["All content of this subtopic, including 340-952-05-1, 340-952-15-1, and 340-952-25-1 through 25-3, was superseded by Accounting Standards Update No. 2014-09.","No extant recognition, scope, or overview guidance remains in ASC 340-952; it carries no current accounting requirements.","Costs incurred by a franchisor to obtain and fulfill a franchise contract are now evaluated under ASC 340-40 (incremental costs of obtaining a contract and contract fulfillment costs).","Franchise fee revenue (initial fees, area development fees, continuing royalties) is recognized under ASC 606, with franchisor-specific application guidance in ASC 952-606.","Legacy franchisor cost-deferral practice that matched direct costs against unrecognized franchise fee revenue is no longer authoritative GAAP."],"categories":["Revenue","Industry-specific","Transition and effective dates","Recognition"],"audience_level":"intermediate","student_note":"This subtopic is a shell — its only exam-relevant fact is that ASU 2014-09 wiped out the old franchisor cost-deferral rules. The common mistake is citing legacy franchise accounting (deferring direct costs until the franchise opens) instead of applying ASC 340-40 and ASC 606/952-606.","related_topics":["340-40","606","952-606","952-720","606-10"],"key_concepts":["franchisor deferred costs","superseded guidance","initial franchise fees","costs to obtain a contract","contract fulfillment costs","revenue from contracts with customers"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39b46d84bbce5258ec5051deb6335474af5dfe19c7a0a94d908338e4017a0a31","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"720-952","title":"Franchisors","topic_title":"Other Expenses","score":0.8572,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b294ce2c92b0fea9db628b90a569e84f9dc3b197dd73e40b46cf1cc03302bf0","downloaded_from":"2026-09-10T01:12:09.288Z","last_downloaded_at":"2026-09-10T01:12:26.241Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-915","title":"Development Stage Entities","topic_title":"Other Assets and Deferred Costs","score":0.8282,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e8865f3fbf5fe17a3b8ff416eea7ced5aebe7733c85beac3241b0dc8c329abc","downloaded_from":"2026-09-09T23:56:51.161Z","last_downloaded_at":"2026-09-09T23:57:08.174Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-910","title":"Contractors—Construction","topic_title":"Other Assets and Deferred Costs","score":0.8264,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:12d9e94b0adb012b2666883a041764ecbf7f4f8d88b376f227b1fda37d8ee09a","downloaded_from":"2026-09-09T23:56:37.773Z","last_downloaded_at":"2026-09-09T23:56:47.153Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-20","title":"Capitalized Advertising Costs","topic_title":"Other Assets and Deferred Costs","score":0.8061,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d72ac7bc232ef3390fc59dd0769480d62a994b604e069169c8a44707d5c058b5","downloaded_from":"2026-09-09T23:55:08.697Z","last_downloaded_at":"2026-09-09T23:55:37.801Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"605-952","title":"Franchisors","topic_title":"Revenue Recognition","score":0.8048,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64cfd11a78f9cf7c18cfc4320df57e3624b718b93ec30c52706dd593d6f9fbfc","downloaded_from":"2026-09-10T00:50:14.020Z","last_downloaded_at":"2026-09-10T00:50:38.705Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"810-952","title":"Franchisors","topic_title":"Consolidation","score":0.7979,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:afc712bc6ab95741fbc5771007d9327bd9ceca12ba4932104db74a92d2af1c14","downloaded_from":"2026-09-10T01:32:30.134Z","last_downloaded_at":"2026-09-10T01:32:39.647Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-948","title":"Financial Services—Mortgage Banking","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95750cb159c8f43b29550583730317b88fdcabe5294a53d2ec64631330f35de4","downloaded_from":"2026-09-09T23:58:13.298Z","last_downloaded_at":"2026-09-09T23:58:25.494Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-954","title":"Health Care Entities","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:feead81b3b37d2292ee570c4299a38765add728a7d28886c2c0b64f166d60abf","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9499b25bb25edbb86b3b51e1732e90d4f55f85a41d6f00d8e92b0bac0b91ffab","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-954","topic":"340","title":"Health Care Entities","area":"Assets","paragraphs":10,"summary":"This Subtopic covers \"other assets and deferred costs\" of health care entities — prepaid expenses, deposits, and deferred expenses, including amounts paid to physicians for future services such as administering a hospital department or providing community services that further the entity's mission (340-954-05-2). If such prepaid costs are deferred, they must be amortized over the period benefited (340-954-35-2), and all such items are classified as current or noncurrent as appropriate (340-954-45-1). The former recognition guidance (Sections 25 and part of 35) was superseded by ASU 2014-09, so contract cost questions now fall under ASC 340-40 and revenue under ASC 606.","concepts":["prepaid expenses","deferred costs","payments to physicians for future services","amortization over period benefited","current versus noncurrent classification","health care entities","deposits"],"categories":["Subsequent measurement","Presentation","Industry-specific","Recognition"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-954-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
954-340-25-1 through 25-3
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
954-340-35-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n954-340-25-1 through 25-3 | Superseded | Accounting Standards Update No. 2014-09 | 05/28…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86979a5e79ef191a2168c705f7e5c8a240a2d7789a194a605718c2065f593bd5","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:43.326Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477207","source_sha256":"d108c55a57140a2e6e8b234cb88ec5c2855f0e2ba4c89a5f73061ecb4f5e33f8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f5c3ef42e1a4b1c1b38429ccb5d0a37e9d550f3cdc21a7c4293fa7998907211","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:43.326Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477207","source_sha256":"d108c55a57140a2e6e8b234cb88ec5c2855f0e2ba4c89a5f73061ecb4f5e33f8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e1c4226e9910f8b9a19f8150d15f528e13338c7c66500f44b68a8535c7627e8","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:43.326Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477207","source_sha256":"d108c55a57140a2e6e8b234cb88ec5c2855f0e2ba4c89a5f73061ecb4f5e33f8"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-954-05-1","para":"05-1","html":"
This Subtopic addresses other assets and deferred costs for health care entities within the scope of this Topic.
","snippet":"This Subtopic addresses other assets and deferred costs for health care entities within the scope of this Topic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44194a8cce43d6382bccb13f0587f12ffb08043d5b3344b45849ba885d57f960","downloaded_from":"2026-09-09T23:58:46.723Z","last_downloaded_at":"2026-09-09T23:58:46.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478525","source_sha256":"9f4a55928b580b5d7f82f2e2f7760009a6e3a3a041e1993f147466163af96e6b"}},{"citation":"340-954-05-2","para":"05-2","html":"
Other assets may include prepaid expenses, deposits, and deferred expenses. Prepaid costs may include amounts paid to physicians for future services (for example, administering a hospital department or providing community services that further the entity's mission).
","snippet":"Other assets may include prepaid expenses, deposits, and deferred expenses. Prepaid costs may include amounts paid to physicians for future services (for example, administering a hospital department or providing communit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b9e76d0175ca6d30187cb030460ab424e7213428e73a3bea4cfdcd096a466f7","downloaded_from":"2026-09-09T23:58:46.723Z","last_downloaded_at":"2026-09-09T23:58:46.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478525","source_sha256":"9f4a55928b580b5d7f82f2e2f7760009a6e3a3a041e1993f147466163af96e6b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3968f1f89bf9a550c22cb430d79f414cbfdd7c6077a46dec6650613e71f77815","downloaded_from":"2026-09-09T23:58:46.723Z","last_downloaded_at":"2026-09-09T23:58:46.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478525","source_sha256":"9f4a55928b580b5d7f82f2e2f7760009a6e3a3a041e1993f147466163af96e6b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fed2b1153caa2497964366e85b977a2b686b2c85bc4e95e93f41cb7d129d2a2","downloaded_from":"2026-09-09T23:58:46.723Z","last_downloaded_at":"2026-09-09T23:58:46.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478525","source_sha256":"9f4a55928b580b5d7f82f2e2f7760009a6e3a3a041e1993f147466163af96e6b"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-954-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6b518eee46d0edcbd5d204500ec63144c6863525081d6a332d8c26025ba9bbd","downloaded_from":"2026-09-09T23:58:48.619Z","last_downloaded_at":"2026-09-09T23:58:48.619Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479179","source_sha256":"77e1114ae51aff65d867d357267fda67f9a154e8c67fc4215c1a8129b6cfed2f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8ddfd0436d5e879fa3f8444adfe8880840cb4a4cb2e784560be5d5b2696569c","downloaded_from":"2026-09-09T23:58:48.619Z","last_downloaded_at":"2026-09-09T23:58:48.619Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479179","source_sha256":"77e1114ae51aff65d867d357267fda67f9a154e8c67fc4215c1a8129b6cfed2f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9cdcb0f6dd6eb809d653c17558271fddd849f7c5f5c584e02726ab4f95f99ab","downloaded_from":"2026-09-09T23:58:48.619Z","last_downloaded_at":"2026-09-09T23:58:48.619Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479179","source_sha256":"77e1114ae51aff65d867d357267fda67f9a154e8c67fc4215c1a8129b6cfed2f"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-954-25-1","para":"25-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f0aaf33ac9951a973104326a60bd96fefed92e990a94c81f0ed487e8c4f2b66f","downloaded_from":"2026-09-09T23:58:51.239Z","last_downloaded_at":"2026-09-09T23:58:51.239Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478948","source_sha256":"086b18dc76aab58329aef8797c32c3bb3cd94d8ef47d411bd47c9c58400962f0"}},{"citation":"340-954-25-2","para":"25-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2226b18ac5db51184d5461c0903c1f333e7db0f52e048b7f27d63aec477f909e","downloaded_from":"2026-09-09T23:58:51.239Z","last_downloaded_at":"2026-09-09T23:58:51.239Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478948","source_sha256":"086b18dc76aab58329aef8797c32c3bb3cd94d8ef47d411bd47c9c58400962f0"}},{"citation":"340-954-25-3","para":"25-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31a5901f6e9664fb3cb9ee594ed8b4d03380d37f54443fad2572e27281722086","downloaded_from":"2026-09-09T23:58:51.239Z","last_downloaded_at":"2026-09-09T23:58:51.239Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478948","source_sha256":"086b18dc76aab58329aef8797c32c3bb3cd94d8ef47d411bd47c9c58400962f0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d04e31cb829d0b816d13218e2f2900e3f2e3134861c17dc504d1f43e8dcda2b7","downloaded_from":"2026-09-09T23:58:51.239Z","last_downloaded_at":"2026-09-09T23:58:51.239Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478948","source_sha256":"086b18dc76aab58329aef8797c32c3bb3cd94d8ef47d411bd47c9c58400962f0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4241d554231f0a4db8461d38120ab2f163dab679568844b61869f2ce695b3b4","downloaded_from":"2026-09-09T23:58:51.239Z","last_downloaded_at":"2026-09-09T23:58:51.239Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478948","source_sha256":"086b18dc76aab58329aef8797c32c3bb3cd94d8ef47d411bd47c9c58400962f0"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-954-35-1","para":"35-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4080fb3fdb189fb7fdae7d274b895ba9871890172abdaf9084bf7a3943074d24","downloaded_from":"2026-09-09T23:58:54.219Z","last_downloaded_at":"2026-09-09T23:58:54.219Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478481","source_sha256":"8b34830c43b79bad1cc8dd3b6de2d793f1ccfd94311ccfe904f9590c86f85c43"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea3710c82738457d7eb8ba5324d8270e790782b8c68e1b5e2eb577fb1ef7ddab","downloaded_from":"2026-09-09T23:58:54.219Z","last_downloaded_at":"2026-09-09T23:58:54.219Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478481","source_sha256":"8b34830c43b79bad1cc8dd3b6de2d793f1ccfd94311ccfe904f9590c86f85c43"}},{"block":null,"heading":"Prepaid Costs","paragraphs":[{"citation":"340-954-35-2","para":"35-2","html":"
Prepaid costs, including amounts paid to physicians for future services (for example, administering a hospital department or providing community services that further the entity's mission), if deferred, shall be amortized over the period benefited.
","snippet":"Prepaid costs, including amounts paid to physicians for future services (for example, administering a hospital department or providing community services that further the entity's mission), if deferred, shall be amortize…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:79bd7026dd136e1b862b72a5819bf7310f04d96ffc68373556ddfbfe1d2b7fc1","downloaded_from":"2026-09-09T23:58:54.219Z","last_downloaded_at":"2026-09-09T23:58:54.219Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478481","source_sha256":"8b34830c43b79bad1cc8dd3b6de2d793f1ccfd94311ccfe904f9590c86f85c43"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5ec18acc7a0896a6cfc738751e7034a0ccda74cbeda576a119aae0ecd08baba","downloaded_from":"2026-09-09T23:58:54.219Z","last_downloaded_at":"2026-09-09T23:58:54.219Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478481","source_sha256":"8b34830c43b79bad1cc8dd3b6de2d793f1ccfd94311ccfe904f9590c86f85c43"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2e10c151d8bc625c58d2755fc7613381e5cacc46f2d989a73502f69cbb64c63","downloaded_from":"2026-09-09T23:58:54.219Z","last_downloaded_at":"2026-09-09T23:58:54.219Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478481","source_sha256":"8b34830c43b79bad1cc8dd3b6de2d793f1ccfd94311ccfe904f9590c86f85c43"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-954-45-1","para":"45-1","html":"
Prepaid expenses, deposits, deferred expenses, and prepaid costs shall be classified as current or noncurrent as appropriate.
","snippet":"Prepaid expenses, deposits, deferred expenses, and prepaid costs shall be classified as current or noncurrent as appropriate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:18f8a20b69cb8974253bc3b9647e1a51276cb78355af9c4ffb42783f02e191b8","downloaded_from":"2026-09-09T23:58:56.807Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478401","source_sha256":"05f1ce105af1c624b047cb7c33e35c7321ff055666275d42ddda93337230d2c1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed40832ed2b56401eedf724c4fca39bb1ceac2f8577ca53dcc7e36e91410cc0f","downloaded_from":"2026-09-09T23:58:56.807Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478401","source_sha256":"05f1ce105af1c624b047cb7c33e35c7321ff055666275d42ddda93337230d2c1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8af8c7040fdb9bcc8e6054159d925a94d4668e593352e86860afeba7454a9755","downloaded_from":"2026-09-09T23:58:56.807Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478401","source_sha256":"05f1ce105af1c624b047cb7c33e35c7321ff055666275d42ddda93337230d2c1"}}],"enrichment":{"summary":"This Subtopic covers \"other assets and deferred costs\" of health care entities — prepaid expenses, deposits, and deferred expenses, including amounts paid to physicians for future services such as administering a hospital department or providing community services that further the entity's mission (340-954-05-2). If such prepaid costs are deferred, they must be amortized over the period benefited (340-954-35-2), and all such items are classified as current or noncurrent as appropriate (340-954-45-1). The former recognition guidance (Sections 25 and part of 35) was superseded by ASU 2014-09, so contract cost questions now fall under ASC 340-40 and revenue under ASC 606.","key_points":["Scope follows the health care entity scope in Section 954-10-15 (340-954-15-1).","Other assets of health care entities may include prepaid expenses, deposits, and deferred expenses, and prepaid costs may include amounts paid to physicians for future services (340-954-05-2).","Deferred prepaid costs, including physician prepayments, shall be amortized over the period benefited (340-954-35-2).","Prepaid expenses, deposits, deferred expenses, and prepaid costs are classified as current or noncurrent as appropriate on a classified balance sheet (340-954-45-1).","All recognition guidance in Section 25 (340-954-25-1 through 25-3) and 340-954-35-1 were superseded by ASU 2014-09, shifting contract cost accounting to Subtopic 340-40."],"categories":["Subsequent measurement","Presentation","Industry-specific","Recognition"],"audience_level":"intermediate","student_note":"This is a short industry overlay: the only substantive rules left are amortize deferred prepaid costs over the period benefited and classify them current/noncurrent. The common mistake is looking here for contract acquisition or fulfillment cost guidance — ASU 2014-09 gutted the recognition paragraphs, so go to ASC 340-40 instead.","related_topics":["340-40","606","954-10","954-605","954-405"],"key_concepts":["prepaid expenses","deferred costs","payments to physicians for future services","amortization over period benefited","current versus noncurrent classification","health care entities","deposits"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30c2d3c9540c016137a6a3f5e1a0a4791b5176ca22b0f090c4aa9ce9a925b37a","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"210-954","title":"Health Care Entities","topic_title":"Balance Sheet","score":0.7801,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3008c57ca2f8be0c3acc95c74a17c9dd35d362d9445380f98905172e424817fc","downloaded_from":"2026-09-09T23:02:01.873Z","last_downloaded_at":"2026-09-09T23:02:21.878Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"325-954","title":"Health Care Entities","topic_title":"Investments—Other","score":0.7789,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7bc529f922eabd1111ed8bd60ac3ead505d50ca1fcc26406545f9e820fdd7507","downloaded_from":"2026-09-09T23:46:56.481Z","last_downloaded_at":"2026-09-09T23:47:10.538Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"430-954","title":"Health Care Entities","topic_title":"Deferred Revenue","score":0.756,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0bfeaf270541c3cfea60e03572a4796b123752fe33bc220b04bd0b0f9e53cf31","downloaded_from":"2026-09-10T00:24:26.950Z","last_downloaded_at":"2026-09-10T00:25:00.362Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"305-954","title":"Health Care Entities","topic_title":"Cash and Cash Equivalents","score":0.7466,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87bbf7d1782b49546b3fa9c65eb778e214717777e97aaa4799599ba5e24848b1","downloaded_from":"2026-09-09T23:24:29.109Z","last_downloaded_at":"2026-09-09T23:24:39.111Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-954","title":"Health Care Entities","topic_title":"Receivables","score":0.7396,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:445406ce52002f526fc14951129d0516bd8eb3e62f4d9bd70cca4653561d761c","downloaded_from":"2026-09-09T23:31:29.416Z","last_downloaded_at":"2026-09-09T23:32:00.586Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-944","title":"Financial Services—Insurance","topic_title":"Other Assets and Deferred Costs","score":0.7393,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e9653bf78dbc1c87e75181d18a8ba2e0b1ce82d9490f536b26419a2a7d6ada1","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:58:11.192Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-952","title":"Franchisors","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bffba5b9d2ee46d285042f26739d4bc97e810b0fc267caad6a122eaa749585e0","downloaded_from":"2026-09-09T23:58:29.537Z","last_downloaded_at":"2026-09-09T23:58:41.693Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-970","title":"Real Estate—General","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4a54a2968654d50417ea1871d7f19bbebfd372ac9a2a71ae475fb0e8c647bdb","downloaded_from":"2026-09-09T23:58:59.193Z","last_downloaded_at":"2026-09-09T23:59:17.895Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba81d9e40b64f1c8102a77456cce77c1c9e232e09bb9c55e8afe33ee096ac363","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-970","topic":"340","title":"Real Estate—General","area":"Assets","paragraphs":31,"summary":"ASC 340-970 (the Real Estate Project Costs Subsections) governs when costs of real estate projects may be capitalized, how they are subsequently measured and amortized, and when they must be written off. Preacquisition costs are capitalized only if directly identifiable with a specific property, capitalizable if the property were owned, and acquisition is probable; option payments are always capitalized. Once a project is substantially completed and held available for occupancy, carrying and rental operating costs are expensed, depreciation begins, and capitalized rental costs are amortized.","concepts":["preacquisition costs","real estate project costs","capitalization of option payments","common costs allocation","amenities","incidental operations","substantially completed and held available for occupancy","capitalized rental costs"],"categories":["Initial measurement","Subsequent measurement","Inventory and PP&E","Industry-specific"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-970-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
Direct Financing LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Direct Financing LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Finance LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Initial Direct CostsAddedAccounting Standards Update No. 2016-0202/25/2016
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Lease TermAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Operating LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Phase (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Phase (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Sales-Type LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Sales-Type LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
970-340-25-10AmendedAccounting Standards Update No. 2014-0603/14/2014
970-340-25-13AmendedAccounting Standards Update No. 2014-0905/28/2014
970-340-25-14SupersededAccounting Standards Update No. 2014-0905/28/2014
970-340-25-15SupersededAccounting Standards Update No. 2014-0905/28/2014
970-340-25-16AmendedAccounting Standards Update No. 2016-0202/25/2016
970-340-25-18AddedAccounting Standards Update No. 2014-0905/28/2014
970-340-25-19AddedAccounting Standards Update No. 2014-0905/28/2014
970-340-35-1AmendedAccounting Standards Update No. 2014-0905/28/2014
970-340-35-2AmendedAccounting Standards Update No. 2016-0202/25/2016
970-340-35-2AmendedAccounting Standards Update No. 2014-0905/28/2014
970-340-40-1SupersededAccounting Standards Update No. 2014-0905/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nContract | Added | Accounting Standards Update No. 2016-02 | 02/25/2016 |\nDirect Financi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96615e92371e881197d51584af97e6916b904c9337e6718e3f5b0710e20dcc66","downloaded_from":"2026-09-09T23:58:59.193Z","last_downloaded_at":"2026-09-09T23:58:59.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477679","source_sha256":"117db4e7b453c947cec221dbec3d33d002a412c2532b8c515cdffb65832f6ace"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c03cd3dfbc6478852ce352ca9730bd341bb842d89aa76dc4bc2bff174351d82","downloaded_from":"2026-09-09T23:58:59.193Z","last_downloaded_at":"2026-09-09T23:58:59.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477679","source_sha256":"117db4e7b453c947cec221dbec3d33d002a412c2532b8c515cdffb65832f6ace"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e58bc0377d42d7c86e884b51fcd2e2ca761b934080d2de115782c9889a25025","downloaded_from":"2026-09-09T23:58:59.193Z","last_downloaded_at":"2026-09-09T23:58:59.193Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477679","source_sha256":"117db4e7b453c947cec221dbec3d33d002a412c2532b8c515cdffb65832f6ace"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-970-05-1","para":"05-1","html":"
The content in this Subtopic is contained in the Real Estate Project Costs Subsections.
","snippet":"The content in this Subtopic is contained in the Real Estate Project Costs Subsections.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c175ee1bc0557d089d763295192bad07f4f7c6817a92559808317ac7116276c","downloaded_from":"2026-09-09T23:59:01.483Z","last_downloaded_at":"2026-09-09T23:59:01.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477878","source_sha256":"681eaf0f649175418824da8340adcbf0fb18b577339a2a81f42a0c7bcbe5bee6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56aee1bde6787207a4be5740a6587f78a7667557f9ca7b3d1bdbfbeef7da9eaa","downloaded_from":"2026-09-09T23:59:01.483Z","last_downloaded_at":"2026-09-09T23:59:01.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477878","source_sha256":"681eaf0f649175418824da8340adcbf0fb18b577339a2a81f42a0c7bcbe5bee6"}},{"block":"Real Estate Project Costs","heading":null,"paragraphs":[{"citation":"340-970-05-2","para":"05-2","html":"
The Real Estate Project Costs Subsections of this Subtopic provide accounting guidance concerning the capitalization, measurement, and derecognition of certain real estate project costs.
","snippet":"The Real Estate Project Costs Subsections of this Subtopic provide accounting guidance concerning the capitalization, measurement, and derecognition of certain real estate project costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be88ed9601a35605cf76f7b4d23bf258bc098f51efe15726093c8eb8277dff1b","downloaded_from":"2026-09-09T23:59:01.483Z","last_downloaded_at":"2026-09-09T23:59:01.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477878","source_sha256":"681eaf0f649175418824da8340adcbf0fb18b577339a2a81f42a0c7bcbe5bee6"}},{"citation":"340-970-05-3","para":"05-3","html":"
See also Subtopic 835-20 for additional guidance related to interest costs that can be capitalized into project costs.
","snippet":"See also Subtopic 835-20 for additional guidance related to interest costs that can be capitalized into project costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74d007fdfa8df8038e53dcaf4e8f47fc1fef4ced598c23dfb9dd01e406dc75ee","downloaded_from":"2026-09-09T23:59:01.483Z","last_downloaded_at":"2026-09-09T23:59:01.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477878","source_sha256":"681eaf0f649175418824da8340adcbf0fb18b577339a2a81f42a0c7bcbe5bee6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9f49a1fef065c459ba1e794e7a74732801d0dc4f59e16964cf6222e79e252dd","downloaded_from":"2026-09-09T23:59:01.483Z","last_downloaded_at":"2026-09-09T23:59:01.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477878","source_sha256":"681eaf0f649175418824da8340adcbf0fb18b577339a2a81f42a0c7bcbe5bee6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e1ed58ce28534646ab6a2a316c0f14e0010284c8f90ce11328dbf3ceaa3d4684","downloaded_from":"2026-09-09T23:59:01.483Z","last_downloaded_at":"2026-09-09T23:59:01.483Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477878","source_sha256":"681eaf0f649175418824da8340adcbf0fb18b577339a2a81f42a0c7bcbe5bee6"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-970-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 970-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 970-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e4e7bdbf2f801dbacdd8e368c337b31a505e5f69d51b074aa22775198194472","downloaded_from":"2026-09-09T23:59:04.624Z","last_downloaded_at":"2026-09-09T23:59:04.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478881","source_sha256":"12e4622de6e445027c0c93d71d60d3b9575f9b67d0dfdb59994b9f9e50eb7239"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7994867c7da193b6dc8b19c258148262aecb22e17c5e90f6e761f71f0c8ecf6f","downloaded_from":"2026-09-09T23:59:04.624Z","last_downloaded_at":"2026-09-09T23:59:04.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478881","source_sha256":"12e4622de6e445027c0c93d71d60d3b9575f9b67d0dfdb59994b9f9e50eb7239"}},{"block":"Real Estate Project Costs","heading":"Overall Guidance","paragraphs":[{"citation":"340-970-15-2","para":"15-2","html":"
The Real Estate Project Costs Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the Real Estate Project Costs Subsection of Section 970-10-15.
","snippet":"The Real Estate Project Costs Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the Real Estate Project Costs Subsection of Section 970-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf7d4735d2ab9e16cad9e6919882478acdc82050c26c73e4f05712e6e9afad14","downloaded_from":"2026-09-09T23:59:04.624Z","last_downloaded_at":"2026-09-09T23:59:04.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478881","source_sha256":"12e4622de6e445027c0c93d71d60d3b9575f9b67d0dfdb59994b9f9e50eb7239"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc8ca9bd281c8493845a05af797f8a94e5433477c9e4d6f1f0babbef1b071c31","downloaded_from":"2026-09-09T23:59:04.624Z","last_downloaded_at":"2026-09-09T23:59:04.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478881","source_sha256":"12e4622de6e445027c0c93d71d60d3b9575f9b67d0dfdb59994b9f9e50eb7239"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5190e7e5c7c34bc3412797ae5015e28b6314842699c5b3fa14f245f6c26f0ef","downloaded_from":"2026-09-09T23:59:04.624Z","last_downloaded_at":"2026-09-09T23:59:04.624Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478881","source_sha256":"12e4622de6e445027c0c93d71d60d3b9575f9b67d0dfdb59994b9f9e50eb7239"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Real Estate Project Costs","heading":"Acquisition, Development, and Construction Costs","paragraphs":[{"citation":"340-970-25-1","para":"25-1","html":"
This Subsection does not address the accounting for costs incurred for acquisitions of property that will be used in the entity's own operations, other than for sale or rental.
","snippet":"This Subsection does not address the accounting for costs incurred for acquisitions of property that will be used in the entity's own operations, other than for sale or rental.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a73c81e565f28c82ba8edb01d39f149e1e33cd1539fdef7af6c0712a8519eac1","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-2","para":"25-2","html":"
Paragraphs
310-20-55-9 through 55-10
provides guidance on how to distinguish between internal and external costs. The capitalization provisions of this Section for preacquisition costs apply to internally generated costs.
","snippet":"Paragraphs 310-20-55-9 through 55-10 provides guidance on how to distinguish between internal and external costs. The capitalization provisions of this Section for preacquisition costs apply to internally generated costs…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:503a86b91fe96e833d56274a4de8d845dc6280ecc32e54fd63c79a3b63ebe340","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-3","para":"25-3","html":"
Payments to obtain an option to acquire real property shall be capitalized as incurred. All other costs related to a property that are incurred before the entity acquires the property, or before the entity obtains an option to acquire it, shall be capitalized if all of the following conditions are met and otherwise shall be charged to expense as incurred:
  1. a
    The costs are directly identifiable with the specific property.
  2. b
    The costs would be capitalized if the property were already acquired.
  3. c
    Acquisition of the property or of an option to acquire the property is probable (that is, likely to occur). This condition requires that the prospective purchaser is actively seeking to acquire the property and has the ability to finance or obtain financing for the acquisition and that there is no indication that the property is not available for sale.
","snippet":"Payments to obtain an option to acquire real property shall be capitalized as incurred. All other costs related to a property that are incurred before the entity acquires the property, or before the entity obtains an opt…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:924280db85faaea5664ab512626d2ecce62a9f58bc75665cdccebcad85ca668d","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-4","para":"25-4","html":"
Capitalized preacquisition costs either:
  1. a
    Shall be included as project costs upon the acquisition of the property
  2. b
    To the extent not recoverable by the sale of the options, plans, and so forth, shall be charged to expense when it is probable that the property will not be acquired.
","snippet":"Capitalized preacquisition costs either:\n(a) Shall be included as project costs upon the acquisition of the property\n(b) To the extent not recoverable by the sale of the options, plans, and so forth, shall be charged to …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb285e0715be7c32782fd1d538bdd276d63028c31348cfdecd5f8d0701bfd65a","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-5","para":"25-5","html":"
The view that all internal costs of identifying and acquiring commercial properties should be deferred and, in some manner, capitalized as part of the cost of successful property acquisitions is not appropriate.
","snippet":"The view that all internal costs of identifying and acquiring commercial properties should be deferred and, in some manner, capitalized as part of the cost of successful property acquisitions is not appropriate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de02005c07d5f4f02a89f35ed189da58646d81b25c283c9a2f7a4741d49db5de","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-6","para":"25-6","html":"
Internal costs of preacquisition activities incurred in connection with the acquisition of a property that will be classified as nonoperating at the date of acquisition that are directly identifiable with the acquired property and that were incurred subsequent to the time that acquisition of that specific property was considered probable (that is, likely to occur) shall be capitalized as part of the cost of that acquisition.
","snippet":"Internal costs of preacquisition activities incurred in connection with the acquisition of a property that will be classified as nonoperating at the date of acquisition that are directly identifiable with the acquired pr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f8adaf08ad11b1b73296a52610439f97a8a226ec0b03faef1bb66251f629ffe","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-7","para":"25-7","html":"
Paragraph 970-340-25-17 is also applicable in situations in which the acquired property is partially operating and partially nonoperating.
","snippet":"Paragraph 970-340-25-17 is also applicable in situations in which the acquired property is partially operating and partially nonoperating.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62127692fd4404472898d5f85b4fd012251b0f722a82aa8f68ab5d3d994d1c27","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-8","para":"25-8","html":"
Costs incurred on real estate for property taxes and insurance shall be capitalized as property cost only during periods in which activities necessary to get the property ready for its intended use are in progress. The phrase activities necessary to get the property ready for its intended use are in progress is used here with the same meaning as it has for interest capitalization in paragraphs
835-20-25-3 through 25-4
and 835-20-25-8. Costs incurred for such items after the property is substantially complete and ready for its intended use shall be charged to expense as incurred. The phrase substantially complete and ready for its intended use is used here with the same meaning as it has for interest capitalization in paragraph 835-20-25-5.
","snippet":"Costs incurred on real estate for property taxes and insurance shall be capitalized as property cost only during periods in which activities necessary to get the property ready for its intended use are in progress. The p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f2338c42fe97e70c547397cf64bd377587566480975c6e533295c9ef019b7b8","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-9","para":"25-9","html":"
Accounting for costs of amenities shall be based on management's plans for the amenities in accordance with the following:
  1. a
    If an amenity is to be sold or transferred in connection with the sale of individual units, costs in excess of anticipated proceeds shall be allocated as common costs because the amenity is clearly associated with the development and sale of the project. The common costs include expected future operating costs to be borne by the developer until they are assumed by buyers of units in a project.
  2. b
    If an amenity is to be sold separately or retained by the developer, capitalizable costs of the amenity in excess of its estimated fair value as of the expected date of its substantial physical completion shall be allocated as common costs. For the purpose of determining the amount to be capitalized as common costs, the amount of cost previously allocated to the amenity shall not be revised after the amenity is substantially completed and available for use. A later sale of the amenity at more or less than its estimated fair value as of the date of substantial physical completion, less any accumulated depreciation, results in a gain or loss that shall be included in net income in the period in which the sale occurs.
","snippet":"Accounting for costs of amenities shall be based on management's plans for the amenities in accordance with the following:\n(a) If an amenity is to be sold or transferred in connection with the sale of individual units, c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8507d75e1402e2c945310b831c78c568dffd54ef9342556ec3f170c6922f2831","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-10","para":"25-10","html":"
Costs of amenities shall be allocated among land parcels benefited and for which development is probable. A land parcel may be considered to be an individual lot or unit, an amenity, or a phase. The fair value of a parcel is affected by its physical characteristics, its highest and best use, and the time and cost required for the buyer to make such use of the property considering access, development plans, zoning restrictions, and market absorption factors.
","snippet":"Costs of amenities shall be allocated among land parcels benefited and for which development is probable. A land parcel may be considered to be an individual lot or unit, an amenity, or a phase. The fair value of a parce…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f4ceb2a3b07cd0061e1c74a4881d85d3c7337460f7109d080ac51c5be395263","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-11","para":"25-11","html":"
Before an amenity is substantially completed and available for use, operating income (or loss) of the amenity shall be included as a reduction of (or an addition to) common costs. When an amenity to be sold separately or retained by the developer is substantially completed and available for use, current operating income and expenses of the amenity shall be included in current operating results.
","snippet":"Before an amenity is substantially completed and available for use, operating income (or loss) of the amenity shall be included as a reduction of (or an addition to) common costs. When an amenity to be sold separately or…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa56b9f1d5ff09efd43a5fd703e5bc8af86e94832b229d3549a997cd818d0beb","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-12","para":"25-12","html":"
Incremental revenues from incidental operations in excess of incremental costs of incidental operations shall be accounted for as a reduction of capitalized project costs. Incremental costs in excess of incremental revenue shall be charged to expense as incurred, because the incidental operations did not achieve the objective of reducing the costs of developing the property for its intended use.
","snippet":"Incremental revenues from incidental operations in excess of incremental costs of incidental operations shall be accounted for as a reduction of capitalized project costs. Incremental costs in excess of incremental reven…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2c79f1914cc40bb9c2170edc4c237672865c830ca8cf9df160bb8db01fd0cff","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b5690d86cb0a88adf97921353bdd1591f37583ba5a143e2c7ce2fbf5d4283bb","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"block":"Real Estate Project Costs","heading":"Costs Incurred to Sell and Rent Real Estate Projects, Including Initial Rental Operations","paragraphs":[{"citation":"340-970-25-13","para":"25-13","html":"
Costs incurred to sell real estate projects shall be evaluated for capitalization in accordance with paragraphs
340-40-25-1 through 25-8
.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Costs incurred to sell real estate projects shall be evaluated for capitalization in accordance with paragraphs 340-40-25-1 through 25-8.\n(a) Subparagraph superseded by Accounting Standards Update No. 2014-09.\n(b) Subpar…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:46f0f97c1a18250568d58a5a072ef6b13da6df8ad5c3a0c165ba2dde484cc9a0","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-14","para":"25-14","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0202132cc321e55ff49000941fd323ad754581e2781a78669ae4590d81be5891","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-15","para":"25-15","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f09fa11184bf12a31f076374abeaf8c06258f850d5ee766b74e36b59c0f900d","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-16","para":"25-16","html":"
If costs incurred to rent real estate projects, other than initial direct costs, under operating leases or direct financing leases are related to and their recovery is reasonably expected from future rental operations, they shall be capitalized. Examples are costs of model units and their furnishings, rental facilities, semipermanent signs, grand openings, and unused rental brochures. Costs that do not meet the criteria for capitalization shall be expensed as incurred, for example, rental overhead. Initial direct costs are defined in Topic 842 and the accounting for initial direct costs is prescribed in that Topic.
","snippet":"If costs incurred to rent real estate projects, other than initial direct costs, under operating leases or direct financing leases are related to and their recovery is reasonably expected from future rental operations, t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:61e806c06ce7b83b34c2c0b72d247ebdf5aa7cb2b4402372c0c496a66d45fe61","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-17","para":"25-17","html":"
If portions of a rental project are substantially completed and occupied by tenants or held available for occupancy and other portions have not yet reached that stage, the substantially completed portions shall be accounted for as a separate project. Costs incurred shall be allocated between the portions under construction and the portions substantially completed and held available for occupancy.
","snippet":"If portions of a rental project are substantially completed and occupied by tenants or held available for occupancy and other portions have not yet reached that stage, the substantially completed portions shall be accoun…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:078c2de636d1237f8c594c11c66646b59a4d7b4dcbb2d4083100d419c1ea498f","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5618a851004d69ea106000771cc7d1dd38409d0595c285d445ff616fe85e1425","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"block":"Real Estate Project Costs","heading":"Initial Rental Operations","paragraphs":[{"citation":"340-970-25-18","para":"25-18","html":"
When a real estate project is substantially completed and held available for occupancy:
  1. a
    Rental operating costs shall be charged to expense when incurred.
  2. b
    All carrying costs (such as real estate taxes) shall be charged to expense when incurred, depreciation on the cost of the project shall be provided.
  3. c
    Costs to rent the project shall be amortized in accordance with paragraph 970-340-35-2.
","snippet":"When a real estate project is substantially completed and held available for occupancy:\n(a) Rental operating costs shall be charged to expense when incurred.\n(b) All carrying costs (such as real estate taxes) shall be ch…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f350ac6c82a955b7e007cbb153768d03b1af4bc9e748d21deb982e99ac9fe95","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"citation":"340-970-25-19","para":"25-19","html":"
A real estate project shall be considered substantially completed and held available for occupancy upon completion of tenant improvements by the developer but no later than one year from cessation of major construction activity (as distinguished from activities such as routine maintenance and cleanup).
","snippet":"A real estate project shall be considered substantially completed and held available for occupancy upon completion of tenant improvements by the developer but no later than one year from cessation of major construction a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ca0f2a528bec0d9bdf9f78f03f6fc32c1d414071572bcac9ef49a6fef8a461e","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c00dba8349d307871b81afa26b252b4a48a3b6a5d215b0d507de2dea548cfaeb","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:afc7245d7cf447f02f9d8e6ea1b807f43794fba2afdf4947a5d3fde2329eeb0a","downloaded_from":"2026-09-09T23:59:08.692Z","last_downloaded_at":"2026-09-09T23:59:08.692Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477549","source_sha256":"97b2f564ea36e8f645fae359a82e158f4c9038073fc6eafdeeae935a9eabe357"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":"Real Estate Project Costs","heading":"Determining Amounts to Be Capitalized or Expensed","paragraphs":[{"citation":"340-970-35-1","para":"35-1","html":"
Estimates and cost allocations shall be reviewed at the end of each financial reporting period until a project is substantially completed and available for sale. Costs shall be revised and reallocated as necessary for material changes on the basis of current estimates. Changes in estimates shall be reported in accordance with paragraphs
250-10-45-17 through 45-20
and 250-10-50-4.
","snippet":"Estimates and cost allocations shall be reviewed at the end of each financial reporting period until a project is substantially completed and available for sale. Costs shall be revised and reallocated as necessary for ma…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c30ac62b5b9613502366648cf82931e2d9f014702351f5b7e5b6bd797bfa1a5f","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},{"citation":"340-970-35-2","para":"35-2","html":"
Capitalized rental costs directly related to revenue from a specific operating lease or direct financing lease, other than initial direct costs, shall be amortized over the lease term. Capitalized rental costs, other than initial direct costs, not directly related to revenue from a specific lease shall be amortized over the period of expected benefit. The amortization period shall begin when the project is substantially completed and held available for occupancy. See paragraphs
970-340-25-18 through 25-19
for the definition of substantially completed and held available for occupancy. Initial direct costs are defined in Topic 842 on leases, and the accounting for initial direct costs is prescribed in that Topic. Topic 842 does not address whether a lessee that accounts for the sale or rental of real estate projects under Topic 970 should capitalize rental costs associated with ground and building leases.
","snippet":"Capitalized rental costs directly related to revenue from a specific operating lease or direct financing lease, other than initial direct costs, shall be amortized over the lease term. Capitalized rental costs, other tha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4b68f3e985052ad08f634f2d2917ae1d6e68174d8e1d3d0bba1cded783d21cc","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},{"citation":"340-970-35-3","para":"35-3","html":"
If an entity subsequently determines that a property will be classified as operating at the date of acquisition, the internal costs of preacquisition activities shall be charged to expense and any additional costs shall be expensed as incurred.
","snippet":"If an entity subsequently determines that a property will be classified as operating at the date of acquisition, the internal costs of preacquisition activities shall be charged to expense and any additional costs shall …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f1550cd058f9b8f484eafc4c379ead1d1fffd5583bae865118f80737c545dbe","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},{"citation":"340-970-35-4","para":"35-4","html":"
If an entity subsequently determines that a property will be classified as nonoperating at the date of acquisition, previously expensed internal costs of preacquisition activities shall not be capitalized as part of the cost of that acquisition.
","snippet":"If an entity subsequently determines that a property will be classified as nonoperating at the date of acquisition, previously expensed internal costs of preacquisition activities shall not be capitalized as part of the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31bd25d3fc9d26654e2be42d6507f806e1f5a53e1a5be839fed52874c61e3da2","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8732cd73a55adb847b7295bdc90844bc9ce3647b46593c563db59097295f33cb","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:745361c42572c089d031e3e4af709b23015ca957bd791b721a86b40c026ef53e","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":"Real Estate Project Costs","heading":null,"paragraphs":[{"citation":"340-970-40-1","para":"40-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cdbd8deacf7539f1d69b46fa591da51a93185d4eb1a61d1c33bd0d5f7898cb29","downloaded_from":"2026-09-09T23:59:15.601Z","last_downloaded_at":"2026-09-09T23:59:15.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478797","source_sha256":"9ee6d5778144eb47bfcf7913a5008f3471829f200a4e6a1c8c03a7a0325d805a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:040b9db0a377039f3d84286fdd85f46a8dd773a17ee19e08afbb252064f09616","downloaded_from":"2026-09-09T23:59:15.601Z","last_downloaded_at":"2026-09-09T23:59:15.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478797","source_sha256":"9ee6d5778144eb47bfcf7913a5008f3471829f200a4e6a1c8c03a7a0325d805a"}},{"block":"Real Estate Project Costs","heading":"Rental Costs","paragraphs":[{"citation":"340-970-40-2","para":"40-2","html":"
Estimated unrecoverable amounts of unamortized capitalized rental costs associated with a lease or group of leases shall be charged to expense when it becomes probable that the lease(s) will be terminated.
","snippet":"Estimated unrecoverable amounts of unamortized capitalized rental costs associated with a lease or group of leases shall be charged to expense when it becomes probable that the lease(s) will be terminated.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc5896308dcd0c99322e047e1a8cdac77ae881b7ea488fe616cd71630b8d9ccd","downloaded_from":"2026-09-09T23:59:15.601Z","last_downloaded_at":"2026-09-09T23:59:15.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478797","source_sha256":"9ee6d5778144eb47bfcf7913a5008f3471829f200a4e6a1c8c03a7a0325d805a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cda24842854fa587b9c1511abee478aec20f163d6bd82d0219610ec88e7f7f06","downloaded_from":"2026-09-09T23:59:15.601Z","last_downloaded_at":"2026-09-09T23:59:15.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478797","source_sha256":"9ee6d5778144eb47bfcf7913a5008f3471829f200a4e6a1c8c03a7a0325d805a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dee889f77da707efafc4222488e34eb4807a5cc698b4e80637c78632ea53a9da","downloaded_from":"2026-09-09T23:59:15.601Z","last_downloaded_at":"2026-09-09T23:59:15.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478797","source_sha256":"9ee6d5778144eb47bfcf7913a5008f3471829f200a4e6a1c8c03a7a0325d805a"}}],"enrichment":{"summary":"ASC 340-970 (the Real Estate Project Costs Subsections) governs when costs of real estate projects may be capitalized, how they are subsequently measured and amortized, and when they must be written off. Preacquisition costs are capitalized only if directly identifiable with a specific property, capitalizable if the property were owned, and acquisition is probable; option payments are always capitalized. Once a project is substantially completed and held available for occupancy, carrying and rental operating costs are expensed, depreciation begins, and capitalized rental costs are amortized.","key_points":["Payments to obtain an option to acquire real property are capitalized as incurred; other preacquisition costs are capitalized only if they are directly identifiable with the specific property, would be capitalizable if the property were already acquired, and acquisition of the property or option is probable (340-970-25-3).","Capitalized preacquisition costs become project costs upon acquisition, or are charged to expense (to the extent not recoverable by selling options, plans, etc.) when it is probable the property will not be acquired (340-970-25-4).","Internal preacquisition costs are capitalized only for property that will be nonoperating at acquisition, are directly identifiable with it, and were incurred after acquisition became probable; blanket deferral of all internal acquisition costs is not appropriate (340-970-25-5 through 25-6); classification changes do not permit later capitalization of previously expensed internal costs (340-970-35-3 through 35-4).","Property taxes and insurance are capitalized only while activities necessary to get the property ready for its intended use are in progress, using the same meaning as for interest capitalization under 835-20; afterwards they are expensed (340-970-25-8).","Amenity costs are allocated as common costs among benefited parcels for which development is probable—costs in excess of anticipated proceeds if the amenity is sold with units, or costs in excess of estimated fair value at substantial physical completion if sold separately or retained (340-970-25-9 through 25-10).","Incremental revenues from incidental operations in excess of incremental costs reduce capitalized project costs; an excess of incremental costs is charged to expense as incurred (340-970-25-12).","Rental costs other than initial direct costs (Topic 842) are capitalized if recovery is reasonably expected from future rental operations and amortized over the lease term or expected benefit period beginning when the project is substantially completed and held available for occupancy—no later than one year after cessation of major construction activity (340-970-25-16, 25-18 through 25-19, 35-2); unrecoverable amounts are expensed when lease termination becomes probable (340-970-40-2)."],"categories":["Initial measurement","Subsequent measurement","Inventory and PP&E","Industry-specific"],"audience_level":"intermediate","student_note":"This is the classic real estate developer cost-capitalization checklist: watch the \"probable acquisition\" gate for preacquisition costs and the sharp cutoff at substantial completion, after which taxes, insurance, and rental operating costs must be expensed. A common error is assuming all internal costs of hunting for properties can be deferred and rolled into successful acquisitions—340-970-25-5 expressly rejects that.","related_topics":["970-340","835-20","340-40","842","310-20","250-10"],"key_concepts":["preacquisition costs","real estate project costs","capitalization of option payments","common costs allocation","amenities","incidental operations","substantially completed and held available for occupancy","capitalized rental costs"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c409dacc9b4d0e055366154efed4744ec36c722c402cd9ca05674e7c4ad7b4f5","downloaded_from":"2026-09-09T23:58:59.193Z","last_downloaded_at":"2026-09-09T23:59:17.895Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"720-970","title":"Real Estate—General","topic_title":"Other Expenses","score":0.8477,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d9091c31446ebadfc89b5fa147e3da729dba2fe0f3b9761fbf071f6b9a9505a","downloaded_from":"2026-09-10T01:13:30.229Z","last_downloaded_at":"2026-09-10T01:13:42.190Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"360-970","title":"Real Estate—General","topic_title":"Property, Plant, and Equipment","score":0.8106,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:288a9f0d5ca4a638bbb10b112e689275f92a0757c6bc19acbfd711f5e24fa786","downloaded_from":"2026-09-10T00:11:50.248Z","last_downloaded_at":"2026-09-10T00:12:34.852Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-20","title":"Capitalization of Interest","topic_title":"Interest","score":0.7591,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a1739a7b7f97f65502fa862de0ad5cdfc5351a3d75e34e0e424d81f28cfaf780","downloaded_from":"2026-09-10T01:48:54.719Z","last_downloaded_at":"2026-09-10T01:49:28.506Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"323-970","title":"Real Estate—General","topic_title":"Investments—Equity Method and Joint Ventures","score":0.741,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4cdd7ee431135c9eed65aaab0c7c2fb385767347c6ff846749ba9a007f4afc4d","downloaded_from":"2026-09-09T23:42:35.809Z","last_downloaded_at":"2026-09-09T23:43:01.427Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"970-10","title":"Overall","topic_title":"Real Estate—General","score":0.7333,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b81aae98feb7b5cbeb35be01e3cf526cf9efdfe41b8bdbafd4ac339484669d4a","downloaded_from":"2026-09-10T02:25:52.021Z","last_downloaded_at":"2026-09-10T02:26:12.373Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"350-40","title":"Internal-Use Software","topic_title":"Intangibles—Goodwill and Other","score":0.7275,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c7c822817e5352368adc522a1618aab490a23c3c36a97ba99ff924443f6a1bc7","downloaded_from":"2026-09-10T00:02:14.508Z","last_downloaded_at":"2026-09-10T00:02:45.249Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-954","title":"Health Care Entities","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:feead81b3b37d2292ee570c4299a38765add728a7d28886c2c0b64f166d60abf","downloaded_from":"2026-09-09T23:58:43.326Z","last_downloaded_at":"2026-09-09T23:58:56.807Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4650b88f5196de47ede8e82ade9dbd90f95d4c458a553efe9d284cccff7ff67e","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:592f10f1d0c907b9fe322d79cadec5cb23f8964663b5e18739c157333615a9ba","downloaded_from":"2026-09-09T23:58:59.193Z","last_downloaded_at":"2026-09-09T23:59:17.895Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-978","topic":"340","title":"Real Estate—Time-Sharing Activities","area":"Assets","paragraphs":11,"summary":"This Subtopic governs deferred cost recognition for real estate time-sharing activities. The default rule is that all costs incurred to sell time-sharing intervals are expensed as incurred unless they qualify for capitalization as incremental costs of obtaining a contract under 340-40-25-1 through 25-4. Seller financing costs (e.g., loan origination costs) follow Subtopic 310-20, and incremental costs to rent units during holding periods are deferred and then expensed (or netted against inventory) when the rental occurs.","concepts":["time-sharing intervals","costs to sell","incremental cost of obtaining a contract","holding period rental costs","deferred costs","loan origination costs","inventory cost reduction"],"categories":["Recognition","Industry-specific","Revenue","Inventory and PP&E"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-978-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Deposit MethodSupersededAccounting Standards Update No. 2014-0905/28/2014
Incidental OperationsSupersededAccounting Standards Update No. 2014-0905/28/2014
PhaseSupersededAccounting Standards Update No. 2014-0905/28/2014
Phase (2nd def.)AmendedAccounting Standards Update No. 2014-0603/14/2014
ProjectSupersededAccounting Standards Update No. 2014-0905/28/2014
Time-SharingAmendedAccounting Standards Update No. 2014-0603/14/2014
Undivided Interest (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
978-340-25-1AmendedAccounting Standards Update No. 2014-0905/28/2014
978-340-25-2SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-25-3SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-40-1SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-40-2SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-60-1AmendedAccounting Standards Update No. 2014-0905/28/2014
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nDeposit Method | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |\nInc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:921a78acf7505050b376f73a8141df5b6e4ba9f1deadc127021336202667146b","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:19.735Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478613","source_sha256":"a37260bda52f1b17d5974e71b798f5bff804ee9bd1e09d01de64a0252bd95d62"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fcb752845e43192866145bc4850bc2c5af47b3e7ce11e12963b41d122adb8b9","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:19.735Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478613","source_sha256":"a37260bda52f1b17d5974e71b798f5bff804ee9bd1e09d01de64a0252bd95d62"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58cbe80a8a1b9c1f1691105c30387824a349e951c3ebd1236ae392414faa9787","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:19.735Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478613","source_sha256":"a37260bda52f1b17d5974e71b798f5bff804ee9bd1e09d01de64a0252bd95d62"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-978-05-1","para":"05-1","html":"
This Subtopic addresses real estate time-sharing deferred cost recognition issues.
","snippet":"This Subtopic addresses real estate time-sharing deferred cost recognition issues.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a15d5480ca4daf29c1c4edad18254994ad81f78f4b0064ef56997865ba10b27c","downloaded_from":"2026-09-09T23:59:22.917Z","last_downloaded_at":"2026-09-09T23:59:22.917Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477306","source_sha256":"a73130df4b7129a4c979fc49da8a98efc7eb6a6e61b103a6f76abb5cb5d5c229"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:908a2d6ef10536e997a4e13abf5255c17d150431c1f3b4db957c89b2c9056c67","downloaded_from":"2026-09-09T23:59:22.917Z","last_downloaded_at":"2026-09-09T23:59:22.917Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477306","source_sha256":"a73130df4b7129a4c979fc49da8a98efc7eb6a6e61b103a6f76abb5cb5d5c229"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c1308e8125aafde15fa72ed34b41990c95d44f8418596e00169d21eba5d0ee57","downloaded_from":"2026-09-09T23:59:22.917Z","last_downloaded_at":"2026-09-09T23:59:22.917Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477306","source_sha256":"a73130df4b7129a4c979fc49da8a98efc7eb6a6e61b103a6f76abb5cb5d5c229"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-978-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 978-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 978-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:184f0804c0e190d0d161f34417a4a98fc28ffc97dd35b6c6f982e7596e383b9a","downloaded_from":"2026-09-09T23:59:26.348Z","last_downloaded_at":"2026-09-09T23:59:26.348Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478300","source_sha256":"9483687284a0385972445183df110172d1fb199ff70e33b32e22b226f248eca5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa8a9c9a19a880b4e90e05439ac7128df87c5109a9050d0369e0dbd32155feac","downloaded_from":"2026-09-09T23:59:26.348Z","last_downloaded_at":"2026-09-09T23:59:26.348Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478300","source_sha256":"9483687284a0385972445183df110172d1fb199ff70e33b32e22b226f248eca5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29fb46e9801ba1a802ea2db1bf737f1ae0e926657025cfb573e913f943c44f40","downloaded_from":"2026-09-09T23:59:26.348Z","last_downloaded_at":"2026-09-09T23:59:26.348Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478300","source_sha256":"9483687284a0385972445183df110172d1fb199ff70e33b32e22b226f248eca5"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Costs to Sell Time-Sharing Intervals","paragraphs":[{"citation":"340-978-25-1","para":"25-1","html":"
All costs incurred to sell time-sharingintervals should be charged to expense as incurred unless they specifically qualify for capitalization in accordance with the guidance in paragraphs
340-40-25-1 through 25-4
.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"All costs incurred to sell time-sharingintervals should be charged to expense as incurred unless they specifically qualify for capitalization in accordance with the guidance in paragraphs 340-40-25-1 through 25-4.\n(a) Su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:644106eeda32241e073185e86c7e219f0bf82eace2246a68eccf32afef56f6e8","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"citation":"340-978-25-2","para":"25-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec36a391098874c1f99bbfa23f61511bc052583aeb4ea8ed9cba0dd4b9c701dd","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"citation":"340-978-25-3","para":"25-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70c26619b65107644d2550d3b4ad25adf009170d08232bba991ddf7d85dc01b5","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea8ba4f7c1552be2c2991f1c09af57546c098a4bdb03edde03deb8d0cbe407de","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"block":null,"heading":"Costs Related to Financing","paragraphs":[{"citation":"340-978-25-4","para":"25-4","html":"
Costs incurred by a seller that are related to financing, such as loan origination costs, shall be accounted for in accordance with Subtopic 310-20.
","snippet":"Costs incurred by a seller that are related to financing, such as loan origination costs, shall be accounted for in accordance with Subtopic 310-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:214979ed46b925af55b6d3f14742d2e74123f2e26a756313ffc59b538b4045dd","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf8571c3bc2c8d8bf9121a61a1c6d8329cc71e81b1ac975caa547c015b25b186","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"block":null,"heading":"Costs to Rent Units During Holding Periods","paragraphs":[{"citation":"340-978-25-5","para":"25-5","html":"
Costs incurred to rent units during holding periods shall be deferred if they are both:
  1. a
    Directly associated with, and their recovery is reasonably expected from, transactions involving the rental of units during holding periods
  2. b
    Incremental, that is, the costs would not have been incurred by the seller had a particular holding period rental transaction not occurred.
An example of a directly associated, incremental cost is a commission. Deferred costs to rent time-sharing units during holding periods shall be charged to expense, or netted in the reduction of inventory costs (as described in paragraph 978-330-35-3), in the period in which the rental takes place.
","snippet":"Costs incurred to rent units during holding periods shall be deferred if they are both:\n(a) Directly associated with, and their recovery is reasonably expected from, transactions involving the rental of units during hold…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e6bea17f5837f503331b8b641843de3c12786547156e1d2a57de576b5c13310","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8b15a6a1acde0d07e7dbeb9a7b477882d4bfb5369c2c75b709226861ce195b5b","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fbc94d50e55eb5dff15860d3f9672d35ac9359495d939e56a46a2504696321b","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-978-40-1","para":"40-1","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e49a98e67c135699f8e9fdcf562358d8ee9530bd936e4c9e83040a6cc719eeca","downloaded_from":"2026-09-09T23:59:33.693Z","last_downloaded_at":"2026-09-09T23:59:33.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478866","source_sha256":"5b774c039c0cc54092ff67a35e3b93b7f3d71a0f8a19cccd247031a3b40134e3"}},{"citation":"340-978-40-2","para":"40-2","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a7e085305b02718f8796d8bc3b8b7c3e07d152a81c63f535b1f0b29b642fcfc","downloaded_from":"2026-09-09T23:59:33.693Z","last_downloaded_at":"2026-09-09T23:59:33.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478866","source_sha256":"5b774c039c0cc54092ff67a35e3b93b7f3d71a0f8a19cccd247031a3b40134e3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc5708846c096dad302f8019e1d47734510405de38ac6a72cbefac7508f6885f","downloaded_from":"2026-09-09T23:59:33.693Z","last_downloaded_at":"2026-09-09T23:59:33.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478866","source_sha256":"5b774c039c0cc54092ff67a35e3b93b7f3d71a0f8a19cccd247031a3b40134e3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c5315d1853b52d3fbad630431dfeab7249a7f84f1c605684183311611354d2e5","downloaded_from":"2026-09-09T23:59:33.693Z","last_downloaded_at":"2026-09-09T23:59:33.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478866","source_sha256":"5b774c039c0cc54092ff67a35e3b93b7f3d71a0f8a19cccd247031a3b40134e3"}},{"number":"60","label":"60 Relationships","anchor":"60-relationships","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-978-60-1","para":"60-1","html":"
For expense determination of all costs incurred to sell time-sharing intervals see Subtopic 340-40 on the incremental cost of obtaining a contract with a customer.
","snippet":"For expense determination of all costs incurred to sell time-sharing intervals see Subtopic 340-40 on the incremental cost of obtaining a contract with a customer.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8dc8bc9619c86a2b94d7878b2952ade18255b64a38691e065a2a75e8ec59fa8","downloaded_from":"2026-09-09T23:59:36.956Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478215","source_sha256":"2b0df994ebc6c72bdda3665e45126dad08967e73a50b0717dc2910dca46d2d0a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54a4d0287531728137d48eabb58ca4af0465d47abd980a19b19862c663816a83","downloaded_from":"2026-09-09T23:59:36.956Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478215","source_sha256":"2b0df994ebc6c72bdda3665e45126dad08967e73a50b0717dc2910dca46d2d0a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7469102ded7cd4413ee98a76655b6acf3df1db4e9a20657a09274c44b58063b0","downloaded_from":"2026-09-09T23:59:36.956Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478215","source_sha256":"2b0df994ebc6c72bdda3665e45126dad08967e73a50b0717dc2910dca46d2d0a"}}],"enrichment":{"summary":"This Subtopic governs deferred cost recognition for real estate time-sharing activities. The default rule is that all costs incurred to sell time-sharing intervals are expensed as incurred unless they qualify for capitalization as incremental costs of obtaining a contract under 340-40-25-1 through 25-4. Seller financing costs (e.g., loan origination costs) follow Subtopic 310-20, and incremental costs to rent units during holding periods are deferred and then expensed (or netted against inventory) when the rental occurs.","key_points":["All costs incurred to sell time-sharing intervals shall be charged to expense as incurred unless they qualify for capitalization under paragraphs 340-40-25-1 through 25-4 (340-978-25-1).","Costs incurred by a seller related to financing, such as loan origination costs, are accounted for under Subtopic 310-20 (340-978-25-4).","Costs to rent units during holding periods are deferred only if they are both directly associated with rental transactions with recovery reasonably expected, and incremental to that transaction (340-978-25-5).","A commission is the cited example of a directly associated, incremental holding-period rental cost (340-978-25-5).","Deferred holding-period rental costs are charged to expense, or netted in the reduction of inventory costs per 978-330-35-3, in the period the rental takes place (340-978-25-5).","Much of the legacy time-sharing selling-cost deferral guidance (25-1(a)-(b), 25-2, 25-3, 40-1, 40-2) was superseded by ASU 2014-09, pushing analysis to Subtopic 340-40 (340-978-60-1)."],"categories":["Recognition","Industry-specific","Revenue","Inventory and PP&E"],"audience_level":"intermediate","student_note":"The exam trap is assuming time-sharing sellers still get the old industry-specific deferral of selling costs — ASU 2014-09 superseded that, so capitalization now depends solely on the 340-40 incremental-cost test, with expensing as the default. Remember the two distinct carve-outs: financing costs go to 310-20, and holding-period rental costs (like commissions) are deferred until the rental occurs.","related_topics":["340-40","978-10","978-330","310-20","606"],"key_concepts":["time-sharing intervals","costs to sell","incremental cost of obtaining a contract","holding period rental costs","deferred costs","loan origination costs","inventory cost reduction"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ab0df747134e41936fd120e3061eddc5026d704c65d91bd68c0ae6eb1d14bf9","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"330-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Inventory","score":0.8322,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:863b49ab2ad3412a279a9bf11c1f8321c3ffc532881277bfbbd047e66e33ec03","downloaded_from":"2026-09-09T23:53:35.942Z","last_downloaded_at":"2026-09-09T23:53:56.981Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Other Expenses","score":0.8316,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb35a88782d4fb22e59d966e630f97bc6631f1aefab120dff2c494a21ecf2420","downloaded_from":"2026-09-10T01:14:14.996Z","last_downloaded_at":"2026-09-10T01:14:26.123Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"978-10","title":"Overall","topic_title":"Real Estate—Time-Sharing Activities","score":0.784,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b98bf330b610ac81a80295c0695f145d30ec211110e6af0abfb192014842f90c","downloaded_from":"2026-09-10T02:27:02.409Z","last_downloaded_at":"2026-09-10T02:27:14.744Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Receivables","score":0.7709,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ad6973c4e94c5aaa30f095acdaca222c99b0b0f493a7c578a5bc8903baa52d0","downloaded_from":"2026-09-09T23:34:09.771Z","last_downloaded_at":"2026-09-09T23:34:36.034Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"810-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Consolidation","score":0.747,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:427d5d36028c200d62f14d3912208f75a60b06d58ba9f0745cf17f7daa20d6d1","downloaded_from":"2026-09-10T01:34:10.635Z","last_downloaded_at":"2026-09-10T01:34:24.202Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"230-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Statement of Cash Flows","score":0.7419,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27c0653aa7a91e90569c5bc2577fb0625871efd35e86327ac8b668db1599ff9d","downloaded_from":"2026-09-09T23:13:54.837Z","last_downloaded_at":"2026-09-09T23:14:06.654Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-970","title":"Real Estate—General","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4a54a2968654d50417ea1871d7f19bbebfd372ac9a2a71ae475fb0e8c647bdb","downloaded_from":"2026-09-09T23:58:59.193Z","last_downloaded_at":"2026-09-09T23:59:17.895Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"340-980","title":"Regulated Operations","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ab8cf9585804a45076bd1685ca20a40093c347e7c673d886771985fd7344b25","downloaded_from":"2026-09-09T23:59:39.238Z","last_downloaded_at":"2026-09-10T00:00:06.441Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bfed62072ab7497f7f1cb7fdda07a040a7f18120fdf0dec112261c0667f7bf2","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-980","topic":"340","title":"Regulated Operations","area":"Assets","paragraphs":64,"summary":"This subtopic governs when a rate-regulated entity may capitalize incurred costs as regulatory assets (deferred costs) and, in particular, how to account for phase-in plans — rate-making arrangements that defer part of the rate increase caused by placing a newly completed plant in service in order to avoid a \"rate spike.\" A cost is capitalized only if it is probable that future revenue at least equal to the cost will result from including it in allowable costs and that revenue is intended to recover the previously incurred cost rather than fund similar future costs (980-340-25-1). Amounts deferred under a phase-in plan may be capitalized only for plants completed or substantially constructed before January 1, 1988, and only if the plan meets four strict criteria (980-340-25-3).","concepts":["regulatory asset","phase-in plan","allowable costs","rate spike","allowance for earnings on shareholders' investment","disallowance of plant costs","regulatory lag","mirror construction work in progress"],"categories":["Recognition","Subsequent measurement","Industry-specific","Disclosure"],"level":"advanced","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-980-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
980-340-25-4 Amended Accounting Standards Update No. 2016-02 02/25/2016
980-340-55-9 through 55-11
 Amended Accounting Standards Update No. 2016-02 02/25/2016
980-340-55-13 through 55-17
 Amended Accounting Standards Update No. 2016-02 02/25/2016
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n980-340-25-4 | Amended | Accounting Standards Update No. 2016-02 | 02/25/2016 |\n980-340-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cffcb148d6d8203901590f083308bea078c8ed42ebd782ec3dc165550a266ede","downloaded_from":"2026-09-09T23:59:39.238Z","last_downloaded_at":"2026-09-09T23:59:39.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479090","source_sha256":"577a972214f0f0a25543d5c24047d59ff7f06ed7fb3e62db77184978ece9f51d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f299740e38c4fc80dfc65c47e5c60e53f60735110d410dac6ca21b435fcaf1b","downloaded_from":"2026-09-09T23:59:39.238Z","last_downloaded_at":"2026-09-09T23:59:39.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479090","source_sha256":"577a972214f0f0a25543d5c24047d59ff7f06ed7fb3e62db77184978ece9f51d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:207bbb8541473e1326f6958d391ba731f12ee183e98ee629514830616eba9e84","downloaded_from":"2026-09-09T23:59:39.238Z","last_downloaded_at":"2026-09-09T23:59:39.238Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479090","source_sha256":"577a972214f0f0a25543d5c24047d59ff7f06ed7fb3e62db77184978ece9f51d"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-980-05-1","para":"05-1","html":"
This Subtopic provides guidance for deferred costs for entities with regulated operations, including phase-in plans.
","snippet":"This Subtopic provides guidance for deferred costs for entities with regulated operations, including phase-in plans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29931d9c4af30ec4e4c3e637d45fbdad6cedb254aee72d89157a02a4201b6340","downloaded_from":"2026-09-09T23:59:43.170Z","last_downloaded_at":"2026-09-09T23:59:43.170Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477838","source_sha256":"25fd6f5a7818b1ed64ec9961d9c07532f1e17a59be0ba18488a128e935bd9871"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee9ffd2ccbedf65b649a78d038ab2f99574e02d29feec95fa935578fa4f58ce4","downloaded_from":"2026-09-09T23:59:43.170Z","last_downloaded_at":"2026-09-09T23:59:43.170Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477838","source_sha256":"25fd6f5a7818b1ed64ec9961d9c07532f1e17a59be0ba18488a128e935bd9871"}},{"block":null,"heading":"Phase-In Plans","paragraphs":[{"citation":"340-980-05-2","para":"05-2","html":"
When a utility places a newly completed plant in service, traditional rate-making procedures establish rates to recover the allowable costs of that plant. A combination of circumstances can cause traditional rate-making procedures to result in a phenomenon called rate spike, which is a major, one-time increase in rates that can result from the inclusion of the cost of new plants in rates under traditional rate-making procedures.
","snippet":"When a utility places a newly completed plant in service, traditional rate-making procedures establish rates to recover the allowable costs of that plant. A combination of circumstances can cause traditional rate-making …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bde46a5b9a67b19034e47c0aeb1b3ec7985723318d7dd00c9049dc01e12edbdc","downloaded_from":"2026-09-09T23:59:43.170Z","last_downloaded_at":"2026-09-09T23:59:43.170Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477838","source_sha256":"25fd6f5a7818b1ed64ec9961d9c07532f1e17a59be0ba18488a128e935bd9871"}},{"citation":"340-980-05-3","para":"05-3","html":"
Phase-in plans were developed to alleviate the problem of rate spike. Those plans are intended to moderate the initial increase in rates that would otherwise result from placing newly completed plants in service by deferring some of that rate increase to future years and providing the utility with return on investment for those deferred amounts. Instead of the traditional pattern of an increase in allowable costs followed by decreasing allowable costs for utility plants after the plants are placed in service, phase-in plans create a pattern of gradually increasing allowable costs for the initial years of the plant's service life.
","snippet":"Phase-in plans were developed to alleviate the problem of rate spike. Those plans are intended to moderate the initial increase in rates that would otherwise result from placing newly completed plants in service by defer…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:160ced30ad036066e1c6d30a63b9f71aac55b45b99c8da5bcde979d32ec20a0f","downloaded_from":"2026-09-09T23:59:43.170Z","last_downloaded_at":"2026-09-09T23:59:43.170Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477838","source_sha256":"25fd6f5a7818b1ed64ec9961d9c07532f1e17a59be0ba18488a128e935bd9871"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a55af4dcd940d5dcf594b6b3ea6483b0dc6e3e2f9d14256e3fb4ee76262ab55f","downloaded_from":"2026-09-09T23:59:43.170Z","last_downloaded_at":"2026-09-09T23:59:43.170Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477838","source_sha256":"25fd6f5a7818b1ed64ec9961d9c07532f1e17a59be0ba18488a128e935bd9871"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6501674c8ff8906cb4890de8f77d2bd70c07b85874275c2fefc4567656094c6f","downloaded_from":"2026-09-09T23:59:43.170Z","last_downloaded_at":"2026-09-09T23:59:43.170Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477838","source_sha256":"25fd6f5a7818b1ed64ec9961d9c07532f1e17a59be0ba18488a128e935bd9871"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"340-980-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 980-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 980-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f9647448b8b603b9d6b3e3dcfc2d591d4a570ee1ab3faf8e67b52a844f07e34","downloaded_from":"2026-09-09T23:59:46.985Z","last_downloaded_at":"2026-09-09T23:59:46.985Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477924","source_sha256":"85276573d4198a95c2ea40d93884b88ee94305f0cc36c2f2181b20fdf62c1439"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6605297cdf860e499a2b3a18a85aa0983c4ac594f08086985342799b9d2ac7dc","downloaded_from":"2026-09-09T23:59:46.985Z","last_downloaded_at":"2026-09-09T23:59:46.985Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477924","source_sha256":"85276573d4198a95c2ea40d93884b88ee94305f0cc36c2f2181b20fdf62c1439"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af231b867dee6af79db0757ef732043cbf6f78426fd5f22188ee3f8cf94e7ac4","downloaded_from":"2026-09-09T23:59:46.985Z","last_downloaded_at":"2026-09-09T23:59:46.985Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477924","source_sha256":"85276573d4198a95c2ea40d93884b88ee94305f0cc36c2f2181b20fdf62c1439"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Effects of Regulation","paragraphs":[{"citation":"340-980-25-1","para":"25-1","html":"
Rate actions of a regulator can provide reasonable assurance of the existence of an asset. An entity shall capitalize all or part of an incurred cost that would otherwise be charged to expense if both of the following criteria are met:
  1. a
    It is probable (as defined in Topic 450) that future revenue in an amount at least equal to the capitalized cost will result from inclusion of that cost in allowable costs for rate-making purposes.
  2. b
    Based on available evidence, the future revenue will be provided to permit recovery of the previously incurred cost rather than to provide for expected levels of similar future costs. If the revenue will be provided through an automatic rate-adjustment clause, this criterion requires that the regulator's intent clearly be to permit recovery of the previously incurred cost.
A cost that does not meet these asset recognition criteria at the date the cost is incurred shall be recognized as a regulatory asset when it does meet those criteria at a later date.
","snippet":"Rate actions of a regulator can provide reasonable assurance of the existence of an asset. An entity shall capitalize all or part of an incurred cost that would otherwise be charged to expense if both of the following cr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:df3ae5a1e4c58f06af8ace762dc99cda3537e7d5efce7149bb35075d43df14dd","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}},{"citation":"340-980-25-2","para":"25-2","html":"
If a phase-in plan is ordered by a regulator in connection with a plant on which no substantial physical construction had been performed before January 1, 1988, none of the allowable costs that are deferred for future recovery by the regulator under the plan for rate-making purposes shall be capitalized for general-purpose financial reporting purposes (hereinafter referred to as financial reporting). Allowable costs that are deferred for future recovery by the regulator under the plan consist of all allowable costs deferred for rate-making purposes under the plan beyond the period in which those allowable costs would be charged to expense under generally accepted accounting principles (GAAP) applicable to entities in general.
","snippet":"If a phase-in plan is ordered by a regulator in connection with a plant on which no substantial physical construction had been performed before January 1, 1988, none of the allowable costs that are deferred for future re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:49bba16b0d774755e83fdbe2bf342493a7f5bafb9b85fdbd4d42d081430deb3f","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}},{"citation":"340-980-25-3","para":"25-3","html":"
If a phase-in plan is ordered by a regulator in connection with a plant completed before January 1, 1988, or a plant on which substantial physical construction had been performed before January 1, 1988, the following criteria shall be applied to that plan. If the phase-in plan meets all of those criteria, all allowable costs that are deferred for future recovery by the regulator under the plan shall be capitalized for financial reporting as a separate asset (a deferred charge). If any one of those criteria is not met, none of the allowable costs that are deferred for future recovery by the regulator under the plan shall be capitalized for financial reporting. The criteria to determine whether capitalization is appropriate are:
  1. a
    The allowable costs in question are deferred pursuant to a formal plan that has been agreed to by the regulator.
  2. b
    The plan specifies the timing of recovery of all allowable costs that will be deferred under the plan.
  3. c
    All allowable costs deferred under the plan are scheduled for recovery within 10 years of the date when deferrals begin.
  4. d
    The percentage increase in rates scheduled under the plan for each future year is no greater than the percentage increase in rates scheduled under the plan for each immediately preceding year. That is, the scheduled percentage increase in Year 2 is no greater than the percentage increase granted in Year 1, the scheduled percentage increase in Year 3 is no greater than the scheduled percentage increase in Year 2, and so forth.
","snippet":"If a phase-in plan is ordered by a regulator in connection with a plant completed before January 1, 1988, or a plant on which substantial physical construction had been performed before January 1, 1988, the following cri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d836d6e3b3a9bc5aba3414f7c8c6b1408110298d9ecb348dbca639122a89ec98","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}},{"citation":"340-980-25-4","para":"25-4","html":"
The following Examples illustrate various circumstances that may or may not constitute phase-in plans:
  1. a
    Example 1 (see paragraph 980-340-55-9) illustrates a sale with leaseback as a finance lease.
  2. b
    Example 2 (see paragraph 980-340-55-12) illustrates a sale with leaseback as an operating lease.
  3. c
    Example 3 (see paragraph 980-340-55-15) illustrates a sale with leaseback with profit recognition accelerated.
  4. d
    Example 4 (see paragraph 980-340-55-18) illustrates the modified depreciation method.
  5. e
    Example 5 (see paragraph 980-340-55-21) illustrates deferred costs before a rate order is issued.
  6. f
    Example 7 (see paragraph 980-340-55-39) illustrates a phase-in plan for two plants completed at different times that share common facilities.
","snippet":"The following Examples illustrate various circumstances that may or may not constitute phase-in plans:\n(a) Example 1 (see paragraph 980-340-55-9) illustrates a sale with leaseback as a finance lease.\n(b) Example 2 (see p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:209bb496040e7a65596e6f7a913c2926a18fc0e224eb693aabe1d10b9e7f50f0","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}},{"citation":"340-980-25-5","para":"25-5","html":"
If specified criteria are met, paragraph 980-340-25-1 requires capitalization of an incurred cost that would otherwise be charged to expense. An allowance for earnings on shareholders' investment is not an incurred cost that would otherwise be charged to expense. Accordingly, such an allowance shall not be capitalized pursuant to that paragraph. The phrase an allowance for earnings on shareholders' investment, as used in this Subtopic, is intended to have the same meaning as the phrase a designated cost of equity funds, used in paragraph 980-835-30-1 , which, in specified circumstances, requires capitalization of an allowance for earnings on shareholders' investment (a designated cost of equity funds) during construction.
","snippet":"If specified criteria are met, paragraph 980-340-25-1 requires capitalization of an incurred cost that would otherwise be charged to expense. An allowance for earnings on shareholders' investment is not an incurred cost …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa74037f08c69d7334e2579e6671ce24a4ced037d99478526d2f239f96b8152b","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}},{"citation":"340-980-25-6","para":"25-6","html":"
Paragraphs
980-340-25-2 through 25-3
require capitalization of an allowance for earnings on shareholders' investment for qualifying phase-in plans. If an allowance for earnings on shareholders' investment is capitalized for rate-making purposes other than during construction or as part of a phase-in plan, the amount capitalized for rate-making purposes shall not be capitalized for financial reporting. For the requirement to accrue a carrying charge related to the expected recovery of the investment in abandoned assets, see paragraph 980-360-35-7.
","snippet":"Paragraphs 980-340-25-2 through 25-3 require capitalization of an allowance for earnings on shareholders' investment for qualifying phase-in plans. If an allowance for earnings on shareholders' investment is capitalized …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72e1daa50669e0639697f45625d7c538bda66daa8d4c204c71b33fa633760a42","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:134ef3e7c5f6715d8717a15a14d4198c2d52685a872267ff61f41ebd16c3ce6c","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:177f82a3f18420a0c3ed5df5278b3d3f3975fb8872376ffbb843681ccad5b022","downloaded_from":"2026-09-09T23:59:52.933Z","last_downloaded_at":"2026-09-09T23:59:52.933Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477711","source_sha256":"360691c1f20b0d288f23a5a59dfaad8fef74a3885554c41455b4dae2650b8e9c"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Effect of Rate Action on Asset Value","paragraphs":[{"citation":"340-980-35-1","para":"35-1","html":"
Rate actions of a regulator can reduce or eliminate the value of an asset. If a regulator excludes all or part of a cost from allowable costs, the carrying amount of any asset recognized pursuant to paragraph 980-340-25-1 shall be reduced to the extent of the excluded cost. Whether other assets have been impaired shall be judged the same as for entities in general and the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 shall apply.
","snippet":"Rate actions of a regulator can reduce or eliminate the value of an asset. If a regulator excludes all or part of a cost from allowable costs, the carrying amount of any asset recognized pursuant to paragraph 980-340-25-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e83d5460fbabb39a178fdad9264ed2e79d41519a0318a7cd427982eb74178593","downloaded_from":"2026-09-09T23:59:54.927Z","last_downloaded_at":"2026-09-09T23:59:54.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478458","source_sha256":"def81dbcb1a1dc660db6fabddf1175fb49b69960a98ecdf6a716ce9274983153"}},{"citation":"340-980-35-2","para":"35-2","html":"
If a regulator allows recovery through rates of costs previously excluded from allowable costs, that action shall result in recognition of a new asset. The classification of that asset shall be consistent with the classification that would have resulted had those costs been initially included in allowable costs.
","snippet":"If a regulator allows recovery through rates of costs previously excluded from allowable costs, that action shall result in recognition of a new asset. The classification of that asset shall be consistent with the classi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f00875ddafcb35c6cc63e92a4220d554a43c65b4b68f5021f6da9e9f30c6b50","downloaded_from":"2026-09-09T23:59:54.927Z","last_downloaded_at":"2026-09-09T23:59:54.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478458","source_sha256":"def81dbcb1a1dc660db6fabddf1175fb49b69960a98ecdf6a716ce9274983153"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9505c24f126175238b327f3a133c04237e15f8aa7cf0174d338cacf56f7146ed","downloaded_from":"2026-09-09T23:59:54.927Z","last_downloaded_at":"2026-09-09T23:59:54.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478458","source_sha256":"def81dbcb1a1dc660db6fabddf1175fb49b69960a98ecdf6a716ce9274983153"}},{"block":null,"heading":"Phase-In Plans","paragraphs":[{"citation":"340-980-35-3","para":"35-3","html":"
When an existing phase-in plan is modified or a new plan is ordered to replace or supplement an existing plan, the criteria in paragraph 980-340-25-3 shall be applied to the combination of the original plan and the new plan. The date when deferrals begin, used in applying the criterion in paragraph 980-340-25-3(c), would be the date of the earliest deferral under either the new or the old plan, and the final recovery date would be the date of the last recovery of all amounts deferred under the plans.
","snippet":"When an existing phase-in plan is modified or a new plan is ordered to replace or supplement an existing plan, the criteria in paragraph 980-340-25-3 shall be applied to the combination of the original plan and the new p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8d76e94cb43529e4682436ce36a868699c9a83541b638a37792586cf87dfc6bd","downloaded_from":"2026-09-09T23:59:54.927Z","last_downloaded_at":"2026-09-09T23:59:54.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478458","source_sha256":"def81dbcb1a1dc660db6fabddf1175fb49b69960a98ecdf6a716ce9274983153"}},{"citation":"340-980-35-4","para":"35-4","html":"
A phase-in plan is a method of rate-making intended to moderate a sudden increase in rates while providing the regulated entity with recovery of its investment and a return on that investment during the recovery period. A disallowance is a rate-making action that prevents the regulated entity from recovering either some amount of its investment or some amount of return on its investment. Section 980-360-35 specifies the accounting for disallowances of plant costs. If a method of rate-making that meets the criteria of this Subtopic for a phase-in plan includes an indirect disallowance of plant costs, that disallowance shall be accounted for in accordance with that Section. Example 6 (see paragraph 980-340-55-33) illustrates a phase-in plan with an indirect disallowance.
","snippet":"A phase-in plan is a method of rate-making intended to moderate a sudden increase in rates while providing the regulated entity with recovery of its investment and a return on that investment during the recovery period. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3a1726ed910791a9cedce1ca0c06260c1fa37981f96f4f279f5793520bd797d9","downloaded_from":"2026-09-09T23:59:54.927Z","last_downloaded_at":"2026-09-09T23:59:54.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478458","source_sha256":"def81dbcb1a1dc660db6fabddf1175fb49b69960a98ecdf6a716ce9274983153"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62a61492c7511219a6da384ee0493f058bcf02ded72b698359ed5e32242889c4","downloaded_from":"2026-09-09T23:59:54.927Z","last_downloaded_at":"2026-09-09T23:59:54.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478458","source_sha256":"def81dbcb1a1dc660db6fabddf1175fb49b69960a98ecdf6a716ce9274983153"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6aa0a8af44014f89295ad4801edd4fea3fab6771d613c17348d276cc111210e4","downloaded_from":"2026-09-09T23:59:54.927Z","last_downloaded_at":"2026-09-09T23:59:54.927Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478458","source_sha256":"def81dbcb1a1dc660db6fabddf1175fb49b69960a98ecdf6a716ce9274983153"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-980-40-1","para":"40-1","html":"
If at any time an entity's incurred cost no longer meets the criteria for the capitalization of an incurred cost (see paragraph 980-340-25-1), that cost shall be charged to earnings.
","snippet":"If at any time an entity's incurred cost no longer meets the criteria for the capitalization of an incurred cost (see paragraph 980-340-25-1), that cost shall be charged to earnings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ac54035078b1958a0a955d39fc8f8f736ac1c16bc4882c81571c717ec15a592","downloaded_from":"2026-09-09T23:59:56.623Z","last_downloaded_at":"2026-09-09T23:59:56.623Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478430","source_sha256":"41aa9296ebbfaff18a6bd8ba7ed2d21048916e91ec01113bf8c21e80ebd82530"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8ca8ddbe4627117efb29f659e5d8c7c8ef18439bbfb34d4217ad1919a0510b9","downloaded_from":"2026-09-09T23:59:56.623Z","last_downloaded_at":"2026-09-09T23:59:56.623Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478430","source_sha256":"41aa9296ebbfaff18a6bd8ba7ed2d21048916e91ec01113bf8c21e80ebd82530"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8899c196b6a66ca75baf1fc6761fa01ebb376db339f8994dfbf956c17bb34249","downloaded_from":"2026-09-09T23:59:56.623Z","last_downloaded_at":"2026-09-09T23:59:56.623Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478430","source_sha256":"41aa9296ebbfaff18a6bd8ba7ed2d21048916e91ec01113bf8c21e80ebd82530"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Phase-In Plans","paragraphs":[{"citation":"340-980-45-1","para":"45-1","html":"
Cumulative amounts capitalized under phase-in plans shall be reported as a separate asset in the balance sheet. The net amount capitalized in each period or the net amount of previously capitalized allowable costs recovered during each period shall be reported as a separate item of other income or expense in the income statement. Allowable costs capitalized shall not be reported as reductions of other expenses.
","snippet":"Cumulative amounts capitalized under phase-in plans shall be reported as a separate asset in the balance sheet. The net amount capitalized in each period or the net amount of previously capitalized allowable costs recove…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e67c8e0aafbb3920907f249c53d0bd3c383d83f0ce8b197fa3955cb645b9af0f","downloaded_from":"2026-09-09T23:59:59.282Z","last_downloaded_at":"2026-09-09T23:59:59.282Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478630","source_sha256":"a1e636446d3a12df8db43dcbfb9ab9045411e4a2ffbde17320256206aaef7e2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f862ad5d4036b216245ad1975b043b6b2ae0a537c746c76607fefa174ac59d6","downloaded_from":"2026-09-09T23:59:59.282Z","last_downloaded_at":"2026-09-09T23:59:59.282Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478630","source_sha256":"a1e636446d3a12df8db43dcbfb9ab9045411e4a2ffbde17320256206aaef7e2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4df2656036b005de96f20a5c730d38fb35acb220d240a691e7eec47ac8bf670f","downloaded_from":"2026-09-09T23:59:59.282Z","last_downloaded_at":"2026-09-09T23:59:59.282Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478630","source_sha256":"a1e636446d3a12df8db43dcbfb9ab9045411e4a2ffbde17320256206aaef7e2a"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Recovery of Cost Without Return on Investment","paragraphs":[{"citation":"340-980-50-1","para":"50-1","html":"
In some cases, a regulator may permit an entity to include a cost that would be charged to expense by an unregulated entity as an allowable cost over a period of time by amortizing that cost for rate-making purposes, but the regulator does not include the unrecovered amount in the rate base. That procedure does not provide a return on investment during the recovery period. If recovery of such major costs is provided without a return on investment during the recovery period, the entity shall disclose the remaining amounts of such assets and the remaining recovery period applicable to them.
","snippet":"In some cases, a regulator may permit an entity to include a cost that would be charged to expense by an unregulated entity as an allowable cost over a period of time by amortizing that cost for rate-making purposes, but…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:259cc5a858969a9cec0ba0a6a275d346cf50be4490ea9d10941d9a54f830c463","downloaded_from":"2026-09-10T00:00:00.997Z","last_downloaded_at":"2026-09-10T00:00:00.997Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478742","source_sha256":"d265b7390d8476e069eda2a9a67eabe4734db570fa1c059391d3d50c4a9f58cc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:52c66bcff17659ca642c9cc9a0eefd5f88a65d31fb7be0130a30b65b52e3da53","downloaded_from":"2026-09-10T00:00:00.997Z","last_downloaded_at":"2026-09-10T00:00:00.997Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478742","source_sha256":"d265b7390d8476e069eda2a9a67eabe4734db570fa1c059391d3d50c4a9f58cc"}},{"block":null,"heading":"Phase-In Plans","paragraphs":[{"citation":"340-980-50-2","para":"50-2","html":"
The terms of any phase-in plans in effect during the year or ordered for future years shall be disclosed. This Subtopic does not permit capitalization for financial reporting of allowable costs deferred for future recovery by the regulator pursuant to a phase-in plan that does not meet the criteria of paragraph 980-340-25-3 or a phase-in plan related to a plant on which substantial physical construction was not completed before January 1, 1988. Nevertheless, the financial statements shall include disclosure of the net amount deferred at the balance sheet date for rate-making purposes and the net change in deferrals for rate-making purposes during the year for those plans.
","snippet":"The terms of any phase-in plans in effect during the year or ordered for future years shall be disclosed. This Subtopic does not permit capitalization for financial reporting of allowable costs deferred for future recove…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0bb86885549d42ec3b8b8b2e98ed901309f2cd0f6d1aa7fb76268d9d60c5b3e1","downloaded_from":"2026-09-10T00:00:00.997Z","last_downloaded_at":"2026-09-10T00:00:00.997Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478742","source_sha256":"d265b7390d8476e069eda2a9a67eabe4734db570fa1c059391d3d50c4a9f58cc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4a5874b98f3d70f622d09a50557ddd552d98077ac01682f69231be3fdab6c7c","downloaded_from":"2026-09-10T00:00:00.997Z","last_downloaded_at":"2026-09-10T00:00:00.997Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478742","source_sha256":"d265b7390d8476e069eda2a9a67eabe4734db570fa1c059391d3d50c4a9f58cc"}},{"block":null,"heading":"Allowance for Earnings on Shareholders' Investment Capitalized for Rate-Making Purposes","paragraphs":[{"citation":"340-980-50-3","para":"50-3","html":"
The nature and amounts of any allowance for earnings on shareholders' investment capitalized for rate-making purposes but not capitalized for financial reporting shall be disclosed.
","snippet":"The nature and amounts of any allowance for earnings on shareholders' investment capitalized for rate-making purposes but not capitalized for financial reporting shall be disclosed.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:470c28ea57a950ac61f6b06a9534576705c2b37e837125218b748a57a9cb8eb1","downloaded_from":"2026-09-10T00:00:00.997Z","last_downloaded_at":"2026-09-10T00:00:00.997Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478742","source_sha256":"d265b7390d8476e069eda2a9a67eabe4734db570fa1c059391d3d50c4a9f58cc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc6f2d515814e380acf844e5ee152dec96b4af22cf17089a4f5027b2b9ba5ff9","downloaded_from":"2026-09-10T00:00:00.997Z","last_downloaded_at":"2026-09-10T00:00:00.997Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478742","source_sha256":"d265b7390d8476e069eda2a9a67eabe4734db570fa1c059391d3d50c4a9f58cc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dcf07da05fc4bec9898e067ea1085c746bd1b5bc4527c648a7a8cd7213eaf1c1","downloaded_from":"2026-09-10T00:00:00.997Z","last_downloaded_at":"2026-09-10T00:00:00.997Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478742","source_sha256":"d265b7390d8476e069eda2a9a67eabe4734db570fa1c059391d3d50c4a9f58cc"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-980-55-1","para":"55-1","html":"
This Section provides guidance for application of this Subtopic to some specific situations, but does not address all possible applications of this Subtopic. All of the implementation guidance and illustrations assume that the entity meets the criteria in paragraph 980-10-15-2; thus, recovery of any cost is probable if that cost is designated for future recovery by the regulator.
","snippet":"This Section provides guidance for application of this Subtopic to some specific situations, but does not address all possible applications of this Subtopic. All of the implementation guidance and illustrations assume th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a61ee0d943735aa751e0c9ed4d34840f13a39ccddcb81b9f8847cd9c82c053ee","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b75f2f6fa047410306fba5346503118a3696308e77a7a8d5eb080b573960d890","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"340-980-55-2","para":"55-2","html":"
In some cases, a regulator may approve rates that are intended to recover an incurred cost over an extended period without a return on the unrecovered cost during the recovery period.
","snippet":"In some cases, a regulator may approve rates that are intended to recover an incurred cost over an extended period without a return on the unrecovered cost during the recovery period.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f65c66b04bf236732d8dc7ddad610341af7c050eb9d81d67e567530485be1864","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-3","para":"55-3","html":"
The regulator's action provides reasonable assurance of the existence of an asset (see paragraph 980-340-25-1). Accordingly, the regulated entity would capitalize the cost and amortize it over the period during which it will be allowed for rate-making purposes. That cost would not be recorded at discounted present value. An exception to this general rule is provided for costs of abandoned plants. See Example 1 (paragraph 980-360-55-2) for an illustration of accounting for future revenues expected to result from the cost of an abandoned plant. If the amounts are material, the disclosures specified in paragraph 980-340-50-1 would be furnished.
","snippet":"The regulator's action provides reasonable assurance of the existence of an asset (see paragraph 980-340-25-1). Accordingly, the regulated entity would capitalize the cost and amortize it over the period during which it …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d37545aa1f2c4d6b7a9ac3a1ac5fbb613e817964811bd4fcbb32ba5afd71b80","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-4","para":"55-4","html":"
Mirror construction work in progress is one means of moderating the sudden, one-time increase in rates that would otherwise result from placing a newly completed utility plant in service. Under mirror construction work in progress, increasing amounts of construction work in progress are included in the current rate base in the periods before the plant goes into service, providing the utility with a current return on a portion of its investment in construction while the construction proceeds. After the plant is placed in service, a decreasing amount of plant-in-service is excluded from the rate base each year, mirroring the pattern in which the construction was included in the rate base. The result of this procedure is to increase rates while the plant is under construction and to reduce the increase in rates in the initial years of the plant's service life.
","snippet":"Mirror construction work in progress is one means of moderating the sudden, one-time increase in rates that would otherwise result from placing a newly completed utility plant in service. Under mirror construction work i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:209d41734e9ecc16d159f0fb04090cbf7e4ed21ef3598f19ca03e76ea7e7c632","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-5","para":"55-5","html":"
For rate-making purposes, no allowance for funds used during construction is recognized on the portion of the construction that is included in the rate base while the asset is under construction, and an allowance for funds used during construction is recognized on the portion of the plant-in-service that is subsequently excluded from the rate base after the plant is placed in service. The same total amount is capitalized as if no construction had been included in the current rate base.
","snippet":"For rate-making purposes, no allowance for funds used during construction is recognized on the portion of the construction that is included in the rate base while the asset is under construction, and an allowance for fun…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78c12ef5a3a57c2f21790e444566c1d0ef0d0d7c6818424406827f04b646942f","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-6","para":"55-6","html":"
The mirror construction work in progress arrangement described is not a phase-in plan under the definition used in this Subtopic because it does not defer recovery of costs that would not have been deferred under the methods of rate making used prior to 1982. Rather, it effectively provides a temporary loan from customers to the utility during construction and requires repayment of that loan after the plant is placed in service.
","snippet":"The mirror construction work in progress arrangement described is not a phase-in plan under the definition used in this Subtopic because it does not defer recovery of costs that would not have been deferred under the met…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:838a9a1cdb2c939800d9cfb56f8f0d3ef1c57c77742141b1dba10244cafcd38c","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-7","para":"55-7","html":"
If the arrangement is known to be a mirror construction work in progress arrangement at the time of the construction (for example, if that arrangement is required by law or has been specifically ordered by the regulator), an allowance for funds used during construction should be accrued on the total cumulative construction cost in each period for financial reporting. The revenue collected as a result of inclusion of construction in the current rate base should be recorded as a liability to customers, with disclosure of the approximate timing of the repayment that will be required under the mirror construction work in progress arrangement.
","snippet":"If the arrangement is known to be a mirror construction work in progress arrangement at the time of the construction (for example, if that arrangement is required by law or has been specifically ordered by the regulator)…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f59294a76801a97ea8109dc886d5a841d1c3061adf98f455422057bbd01ade0","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-8","para":"55-8","html":"
If the arrangement is not known to be a mirror construction work in progress arrangement when the construction is included in the rate base but the regulator later orders a mirror construction work in progress arrangement, the accounting described in the preceding paragraph should be implemented as soon as the nature of the arrangement becomes known. That will require an adjustment for the cumulative effect of the arrangement to date. An amount should be capitalized, with a corresponding accrual of an allowance for funds used during construction, when the mirror construction work in progress arrangement becomes known. Current revenues should be reduced by an equal amount, and a corresponding liability to customers should be recognized. That amount should be the amount that would have been capitalized if the arrangement had been known to be a mirror construction work in progress arrangement when the revenue was collected during construction. That capitalized amount should be reported in the year in which the mirror construction work in progress arrangement becomes known in the same manner as if it had been capitalized during construction.
","snippet":"If the arrangement is not known to be a mirror construction work in progress arrangement when the construction is included in the rate base but the regulator later orders a mirror construction work in progress arrangemen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d306b3d298c33b1e97abfed9451272ab2026213b73039c99b4247a653a968651","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:286ecff4e1bc7980028b5d4d510b6e8d06ae1d75c54e6033f9366116a10e9258","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"340-980-55-9","para":"55-9","html":"
This Example illustrates the guidance in paragraphs
980-340-25-2 through 25-3
.
","snippet":"This Example illustrates the guidance in paragraphs 980-340-25-2 through 25-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b3d066e2d3742c959c04d548fec6203e3b7f3d87fdd2a07b6e628c8d13b4029","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-10","para":"55-10","html":"
Utility B sells its interest in a newly completed electric generating plant for an amount equal to its cost and leases that interest back under a lease that requires equal annual payments. The arrangement would not qualify for sale and leaseback accounting in accordance with Subtopic 842-40 because the leaseback would be classified as a finance lease. However, the arrangement previously qualified as a sale and a capital leaseback in accordance with Subtopic 840-40 before the effective date of Topic 842. Therefore, Utility B continues to account for the arrangement as a sale and a leaseback. Utility B's regulator includes the lease rentals in allowable cost as they accrue. In the past, Utility B's regulator has treated other leases entered into by Utility B in the same manner, but those leases were for much less significant items of equipment—not for an interest in an electric generating plant.
","snippet":"Utility B sells its interest in a newly completed electric generating plant for an amount equal to its cost and leases that interest back under a lease that requires equal annual payments. The arrangement would not quali…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31edf151fd9439084780976b512adbee68fdc5fb583f6ab8a9b074d9f07f8830","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-11","para":"55-11","html":"
The rate-making method described is a phase-in plan under the definition in this Subtopic. Generally accepted accounting principles (GAAP) applicable to entities in general require a finance lease to be accounted for much like a purchase of the underlying asset. The resulting expense related to the lease consists of interest on the remaining lease obligation and depreciation based on the method used for similar owned assets. In the early years of a lease, the lease rentals included in allowable cost as they accrue are significantly less than the sum of interest on the lease obligation and depreciation on the leased asset. Thus, significant deferrals will result. The method also defers recognition of expenses compared with the methods of expense recognition used by Utility B's regulator for similar assets of Utility B prior to 1982 because Utility B's interests in electric generating plants were included in allowable costs in the past based on current provisions for depreciation and for the cost of capital invested in the plants. The use of this rate-making method in the past for leases of equipment does not change this conclusion. The definition is based on the method of rate-making used prior to 1982 for similar allowable costs. Similar allowable costs would be those resulting from electric generating plants.
","snippet":"The rate-making method described is a phase-in plan under the definition in this Subtopic. Generally accepted accounting principles (GAAP) applicable to entities in general require a finance lease to be accounted for muc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:439c834c96bc1a22dd2e4bdcadddb3b635125f26f6216a739b80e7b1a03d7ef2","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-12","para":"55-12","html":"
This Example illustrates the guidance in paragraphs
980-340-25-2 through 25-3
.
","snippet":"This Example illustrates the guidance in paragraphs 980-340-25-2 through 25-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91e646cc0eb17852de5999ab019c21f045a6ac003560b24ca4a944977eb347f9","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-13","para":"55-13","html":"
Utility C sells its interest in a newly completed electric generating plant for an amount equal to its cost and leases that interest back under a lease that requires equal annual payments. The arrangement qualifies as a sale and a leaseback in accordance with Subtopic 842-20. The leaseback is classified as an operating lease. Utility C's regulator includes the lease payments in allowable cost as they accrue. In the past, Utility C's regulator has treated other leases entered into by Utility C in the same manner, but those leases were not for an interest in an electric generating plant.
","snippet":"Utility C sells its interest in a newly completed electric generating plant for an amount equal to its cost and leases that interest back under a lease that requires equal annual payments. The arrangement qualifies as a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d5941aa4b6a68e685e8e9b3d2a5a1536c9dd591fc3374797909d111f5169a3c","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-14","para":"55-14","html":"
The rate-making method applied to Utility C is not a phase-in plan under the definition in this Subtopic because it recognizes lease expense for rate-making purposes in the same way as that expense would be recognized for entities in general for this type of lease.
","snippet":"The rate-making method applied to Utility C is not a phase-in plan under the definition in this Subtopic because it recognizes lease expense for rate-making purposes in the same way as that expense would be recognized fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:664337ea280e125603cbdc13db3f4134d65eece07417b2738123438416a2f4c3","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-15","para":"55-15","html":"
This Example illustrates the guidance in paragraphs
980-340-25-2 through 25-3
.
","snippet":"This Example illustrates the guidance in paragraphs 980-340-25-2 through 25-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21e4a1088e834bb87f8c7a8277f257a9fe59def46de576d2dc53246a07f41df2","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-16","para":"55-16","html":"
Utility D sells its interest in a 5-year-old electric generating plant for an amount that exceeds its undepreciated cost by $500,000 and leases that interest back. The leaseback term is 20 years, and there are no renewal options. The arrangement would not qualify for sale and leaseback accounting in accordance with Subtopic 842-40 because the leaseback would be classified as a finance lease. However, the arrangement previously qualified as a sale and a capital leaseback in accordance with Subtopic 840-40 before the effective date of Topic 842. Therefore, Utility D continues to account for the arrangement as a sale and a leaseback. Utility D's regulator includes the lease payments in allowable cost as they accrue and orders Utility D to amortize the profit, for rate-making purposes, over 10 years. The sale occurred at a time when Utility D was about to place a newly completed plant in service. Utility D has not had any similar transactions in the past.
","snippet":"Utility D sells its interest in a 5-year-old electric generating plant for an amount that exceeds its undepreciated cost by $500,000 and leases that interest back. The leaseback term is 20 years, and there are no renewal…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03cd832fb543a7e6f12c4299904c5fc1b74c07839c3c76a4ca500a2699c71d04","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-17","para":"55-17","html":"
The rate-making method described is a phase-in plan under the definition in this Subtopic. GAAP applicable to entities in general at the time of entering into this arrangement required a profit on a sale and leaseback transaction to be amortized over the term of the leaseback. Amortization of that profit, for rate-making purposes, over 10 years when GAAP applicable to entities in general at that time required amortization over the 20-year leaseback term is equivalent to a deferral of allowable costs. In view of the timing of the rate order on the sale and leaseback transaction, the presumption is that the order was issued in connection with the newly completed plant. The method cannot be compared with methods in use prior to 1982 because Utility D has had no previous transactions of this type.
","snippet":"The rate-making method described is a phase-in plan under the definition in this Subtopic. GAAP applicable to entities in general at the time of entering into this arrangement required a profit on a sale and leaseback tr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:556080aa0f1205c985f09411726d463defe1c3fcbc46774fa699eb481931f321","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-18","para":"55-18","html":"
This Example illustrates the guidance in paragraphs
980-340-25-2 through 25-3
.
","snippet":"This Example illustrates the guidance in paragraphs 980-340-25-2 through 25-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a675726b46d03b4557c220727fefb26c62e33feb767725a40f77111c3931ab4","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-19","para":"55-19","html":"
Utility E's regulator orders it to depreciate its new electric generating plant, for rate-making purposes, by using an annuity method. Under the method ordered, depreciation increases each year so that the total of depreciation and return on investment stays approximately level over the life of the plant. In the past, Utility E's regulator required the use of straight-line depreciation for electric generating plants.
","snippet":"Utility E's regulator orders it to depreciate its new electric generating plant, for rate-making purposes, by using an annuity method. Under the method ordered, depreciation increases each year so that the total of depre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1bc44d2bb13ccf0bcbd4eeeba27d87b10da2bd9cb318f741ff8ca88cf3830cd6","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-20","para":"55-20","html":"
The rate-making method applied to Utility E is a phase-in plan under the definition in this Subtopic because it meets both of the following conditions:
  1. a
    It defers depreciation expense compared with the depreciation methods that are acceptable under GAAP applicable to entities in general (as indicated in paragraph 360-10-35-10, annuity methods of depreciation are not acceptable under GAAP applicable to entities in general).
  2. b
    It defers depreciation expense compared with the method of depreciation used by Utility E's regulator for Utility E's electric generating plants prior to 1982.
","snippet":"The rate-making method applied to Utility E is a phase-in plan under the definition in this Subtopic because it meets both of the following conditions:\n(a) It defers depreciation expense compared with the depreciation me…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6d429a89bb18c439c5ade1e711b355047faf38d8cd5f49c09e6a39a6392cabd3","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-21","para":"55-21","html":"
This Example illustrates the guidance in paragraphs
980-340-25-2 through 25-3
and
980-340-35-3 through 35-4
related to the deferral of costs before a rate order is issued when:
  1. a
    Utility F has deferred costs before a rate order is issued (Case A).
  2. b
    Utility F has deferred costs before a rate order is issued and has subsequent interaction with a disallowance (Case B).
  3. c
    Utility G has deferred costs before a rate order is issued and has interaction with a subsequent phase-in plan (Case C).
","snippet":"This Example illustrates the guidance in paragraphs 980-340-25-2 through 25-3 and 980-340-35-3 through 35-4 related to the deferral of costs before a rate order is issued when:\n(a) Utility F has deferred costs before a r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d5612108b05a0b1385054b4b76497121496d96650aec68e5a54494cfe3a1e8c","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-22","para":"55-22","html":"
Cases A, B, and C share all of the assumptions described in the following paragraph.
","snippet":"Cases A, B, and C share all of the assumptions described in the following paragraph.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f52ee6d173d05a8b59fd6c0f6cbd2fb7c518503cc19acfec857230152d962bc7","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-23","para":"55-23","html":"
Utility F completes construction of a nuclear generating plant and places that plant in service. Utility F's regulator decides that it will complete its examination of the prudence of Utility F's construction cost before rates are adjusted to reflect the cost of operating the plant. During the examination and until rates are adjusted, the regulator orders Utility F to capitalize its net cost of operating the plant (operating costs, depreciation, allocable interest cost, and an allowance for earnings on shareholders' investment, all net of savings that result from operation of the new plant).
","snippet":"Utility F completes construction of a nuclear generating plant and places that plant in service. Utility F's regulator decides that it will complete its examination of the prudence of Utility F's construction cost before…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:985731230b969a1e4cfb290c86eb6991bbaa2ba398298bb2044f90f31a55fac1","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-24","para":"55-24","html":"
The resulting deferral is not a phase-in plan under the definition in this Subtopic. The regulator's order to capitalize an amount pending completion of a rate hearing is designed to protect the utility from the effects of regulatory lag in the absence of a rate order—a routine procedure on the part of regulators. Regulatory lag is the delay between a change in a regulated entity's costs and a change in rates ordered by a regulator as a result of that change in costs. A shortfall in a utility's net income can occur when regulators set rates prospectively and the estimated or test-period costs on which those rates were based are less than the actual costs that are incurred during the period covered by those rates. Regulators' actions that are designed to protect a utility from the effects of regulatory lag can occur during a rate case but before a rate order is issued, as in this Case, and when no rate case is under active consideration. An accounting order to a utility to capitalize the cost of repairing storm damage would be an example of the latter situation. Those actions can also be a part of a rate order. An example of that type of action would be a fuel adjustment clause that is intended to protect the utility from the effects of unanticipated changes in fuel costs.
","snippet":"The resulting deferral is not a phase-in plan under the definition in this Subtopic. The regulator's order to capitalize an amount pending completion of a rate hearing is designed to protect the utility from the effects …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e335be772d792c2e4e65d88cf263b88801266e9a6e5f44dbe8b4b053a81ea8a","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-25","para":"55-25","html":"
The definition of a phase-in plan in this Subtopic is not intended to encompass actions of a regulator that are designed to protect a utility from the effects of regulatory lag in the absence of a rate order, nor is it intended to encompass the regulator's subsequent treatment of any allowable costs that result from those actions.
","snippet":"The definition of a phase-in plan in this Subtopic is not intended to encompass actions of a regulator that are designed to protect a utility from the effects of regulatory lag in the absence of a rate order, nor is it i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f4053382f72317ab3bc85715565371e056eb7db734a33a0b75676d1c2ddfa03","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-26","para":"55-26","html":"
Under paragraph 980-340-25-1, Utility F should capitalize that portion of the amount capitalized for rate-making purposes that represents incurred costs that would otherwise be charged to expense, provided that it is probable that future revenue in an amount at least equal to the capitalized cost will result from inclusion of those costs in allowable costs for rate-making purposes. Otherwise, Utility F should not capitalize those costs.
","snippet":"Under paragraph 980-340-25-1, Utility F should capitalize that portion of the amount capitalized for rate-making purposes that represents incurred costs that would otherwise be charged to expense, provided that it is pro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39b48fb26599e3318d4fd2a0dd918c6b6ea2ce7b07a2e415381f5f0b1e4b9d53","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-27","para":"55-27","html":"
Since the situation in this Case is neither during construction nor a phase-in plan, this Topic does not permit capitalization of an allowance for earnings on shareholders' investment. Accordingly, Utility F should not capitalize, for financial reporting, the portion of the amount capitalized for rate-making purposes that represents an allowance for earnings on shareholders' investment. If recovery of that allowance subsequently occurs, increased earnings during the recovery period will result.
","snippet":"Since the situation in this Case is neither during construction nor a phase-in plan, this Topic does not permit capitalization of an allowance for earnings on shareholders' investment. Accordingly, Utility F should not c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8005a2c7663087d791b9daa33f53a2b33fd16b2162889b36a39abb7a55e17bfd","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-28","para":"55-28","html":"
Six months after the accounting order referred to in Case A, Utility F's regulator approves part of the cost of the new plant but disallows $600,000,000—consisting of construction expenditures of $570,000,000 and amounts capitalized for rate-making purposes during this 6-month operating period prior to the rate order of $30,000,000. The recorded cost of the plant before consideration of the disallowance is $4,500,000,000. During this 6-month period, Utility F has capitalized $500,000,000 of net cost for rate-making purposes. This $500,000,000 consists of an allowance for earnings on shareholders' investment of $200,000,000 and incurred costs that would otherwise be charged to expense of $300,000,000. For rate-making purposes, the balance sheet accounts, before and after the disallowance, are as follows.
","snippet":"Six months after the accounting order referred to in Case A, Utility F's regulator approves part of the cost of the new plant but disallows $600,000,000—consisting of construction expenditures of $570,000,000 and amounts…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb3ef723b456ac67d3b93c1bf066705217b5427361e2a5535681e87b90b56d3b","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-29","para":"55-29","html":"
Section 980-360-35 requires a disallowance of plant costs to be recognized as a loss. Utility F should perform the following analysis to determine the loss that should be recognized and how it will be allocated:
  1. a
    Assuming that $300,000,000 of the $500,000,000 capitalized for rate-making purposes during the 6-month period was also capitalized for financial reporting (the $200,000,000 allowance for earnings on shareholders' investment would not be capitalized), the total loss recognized by Utility F for financial reporting should be the amount that reduces the combined total of plant in service and amounts capitalized pending rate order ($4,800,000,000) to the combined total that will be honored for rate-making purposes ($4,400,000,000). The recognizable loss is $400,000,000.
  2. b
    Utility F should allocate to plant in service the lesser of the amount of the disallowance that was allocated to plant in service by the regulator ($570,000,000) or the total disallowance recognized for financial reporting ($400,000,000), or $400,000,000.
  3. c
    Utility F should allocate the rest of the disallowance recognized for financial reporting, if any, to amounts capitalized pending rate order. In this case, no amount is allocated to that asset.
","snippet":"Section 980-360-35 requires a disallowance of plant costs to be recognized as a loss. Utility F should perform the following analysis to determine the loss that should be recognized and how it will be allocated:\n(a) Assu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3bc33c69e717e92172251e4e4b41b6dc58f619395f712cd2add24e1bc1baed5f","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-30","para":"55-30","html":"
The recognition of the disallowance and the effect of that recognition on the financial reporting balance sheet accounts are as follows.
","snippet":"The recognition of the disallowance and the effect of that recognition on the financial reporting balance sheet accounts are as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ff4443ace1a7a7b1c0f6ffaea66bec9cf958b057cba7841f3cfa54fc8e37ad7","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-31","para":"55-31","html":"
Utility G's fact situation is identical to that of Utility F, described in Cases A and B, except that Utility G's regulator approves all of the costs related to the newly completed plant. Utility G's regulator adopts a formal phase-in plan intended to provide recovery of amounts deferred under the plan and amounts capitalized, for rate-making purposes, during the six-month period from the plant's in-service date to the date of the rate order.
","snippet":"Utility G's fact situation is identical to that of Utility F, described in Cases A and B, except that Utility G's regulator approves all of the costs related to the newly completed plant. Utility G's regulator adopts a f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ef5c385e9ca55fcc8695f0bedb60a186348c38f8281cd229a3350a6b1800ef4","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-32","para":"55-32","html":"
The phase-in plan does not affect the financial reporting of those previously deferred costs described in paragraphs
980-340-55-26 through 55-27
, nor does the existence of those previously deferred costs affect the financial reporting of the phase-in plan. Accordingly, the allowance for earnings on shareholders' investment that was not capitalized previously during the period preceding issuance of the rate order may not be capitalized upon adoption of the phase-in plan.
","snippet":"The phase-in plan does not affect the financial reporting of those previously deferred costs described in paragraphs 980-340-55-26 through 55-27, nor does the existence of those previously deferred costs affect the finan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3a0c494a8bf37b4da6635e28186f2bef5038745ab61eed842b0eb4c1aa417358","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-33","para":"55-33","html":"
This Example illustrates the guidance in paragraph 980-340-35-4.
","snippet":"This Example illustrates the guidance in paragraph 980-340-35-4.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbda37767fcdc313892f55dac2737272c41d20ef2e7cfe396a7f140c04e45b5b","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-34","para":"55-34","html":"
Utility A is an electric utility that operates solely in a single-state jurisdiction. On January 1, 19X1, Utility A's new electric generating plant becomes operational. The cost of that plant is $1 billion.
","snippet":"Utility A is an electric utility that operates solely in a single-state jurisdiction. On January 1, 19X1, Utility A's new electric generating plant becomes operational. The cost of that plant is $1 billion.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c14feafb41cef3eb77cfdb1121339a0eda3f7d1c95b9259ecda65b042d89601a","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-35","para":"55-35","html":"
Utility A's regulator orders that the costs of the newly completed plant be phased in over a three-year period, as follows:
  1. a
    19X1—A portion of the return (interest and an allowance for earnings on shareholders' investment) on unrecovered investment is deferred by excluding 25 percent of the cost of the plant from the rate base.
  2. b
    19X2—All of the remaining cost of the plant is to be included in the rate base with no recovery of previously deferred amounts.
  3. c
    19X3—All of the remaining cost of the plant is to be included in the rate base. Also, additional revenue is to be provided equal to the return on unrecovered investment excluded from rates in Year 1.
The order does not provide for recovery in any year of a return on Utility A's investment in the deferred amounts. Utility A's weighted-average cost of capital in its latest rate case was 11 percent.
","snippet":"Utility A's regulator orders that the costs of the newly completed plant be phased in over a three-year period, as follows:\n(a) 19X1—A portion of the return (interest and an allowance for earnings on shareholders' invest…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4148199dff8892585559c86aedf608a4a335214ecb06e69b4e1a622a91cce17","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-36","para":"55-36","html":"
The phase-in plan is partially a disallowance of plant costs because no return on investment is provided for the deferred amounts. That disallowance should be recognized in accordance with Section 980-360-35 when it became probable. The amount of equivalent cost disallowed should be determined as shown in Schedule 1. The recorded cost of the plant should be reduced by that amount, and a corresponding loss should be reported in 19X1.
","snippet":"The phase-in plan is partially a disallowance of plant costs because no return on investment is provided for the deferred amounts. That disallowance should be recognized in accordance with Section 980-360-35 when it beca…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8481dd99dca573133d90eedfd7676d28479b1e86c976fb8f05a60e1ac1428400","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-37","para":"55-37","html":"
The disallowance will reduce revenues only in Years 1 through 3, so the depreciation charge that would otherwise be recognized for that plant in Years 1 through 3 should be reduced by the amount of the effective disallowance attributable to those years (the amount in column 4 of Schedule 1). Amounts deferred under the plan (the amount for months 1-12 in column 1 of Schedule 1) should be capitalized as a separate asset, and that asset should be amortized as recovery occurs (in months 25-36), using the amounts in column 1 of Schedule 1.
","snippet":"The disallowance will reduce revenues only in Years 1 through 3, so the depreciation charge that would otherwise be recognized for that plant in Years 1 through 3 should be reduced by the amount of the effective disallow…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a510f9d64f460eb778658ef819626d9855b01a00420a80eed4fb1e9f1285db0","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-38","para":"55-38","html":"
The following table illustrates the determination of effective disallowance.
","snippet":"The following table illustrates the determination of effective disallowance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:947b4e48a44cf1b5f53daf5aacb9f29c0d3cafd84f2937a9ea15bcebe72d24e0","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-39","para":"55-39","html":"
This Example illustrates the guidance in paragraph 980-340-25-2 and the application of the definition of a phase-in plan.
","snippet":"This Example illustrates the guidance in paragraph 980-340-25-2 and the application of the definition of a phase-in plan.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2123d5e6e32044864c11772d2f63014402b24159632f6f803f013e017819a4ad","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-40","para":"55-40","html":"
A utility that meets the criteria of paragraph 980-10-15-2 for application of this Topic constructs two generating plants on a common site and those plants share certain facilities (primarily coal handling equipment, transmission facilities, and an administrative building). One plant (Unit 1) is completed January 31, 19X1, and the other plant (Unit 2) is completed December 31, 19X1. The coal handling equipment, transmission facilities, and administrative building are completed by January 31, 19X1, and are used by Unit 1 during 19X1.
","snippet":"A utility that meets the criteria of paragraph 980-10-15-2 for application of this Topic constructs two generating plants on a common site and those plants share certain facilities (primarily coal handling equipment, tra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bbc536eb170394491f460b3dccdd9e50ee1e436f72acac8419e5af2e993c65c1","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-41","para":"55-41","html":"
New rates are placed in effect on February 1, 19X1, that include the effect on revenue requirements of Unit 1 and one-half of the coal handling equipment, transmission facilities, and administrative building. New rates are again placed in effect on January 1, 19X2, to include the effect on revenue requirements of Unit 2 and the other half of the coal handling equipment, transmission facilities, and administrative building.
","snippet":"New rates are placed in effect on February 1, 19X1, that include the effect on revenue requirements of Unit 1 and one-half of the coal handling equipment, transmission facilities, and administrative building. New rates a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1edcdb61067cf1a5ef7dbdc2481b4c29481adb617d94b4aeed63e9f546d71dcf","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-42","para":"55-42","html":"
Consistent with the above rate treatment, the utility capitalizes interest on and does not depreciate one-half of the coal handling equipment, transmission facilities, and administrative building from January 31 to December 31, 19X1. The question is whether deferral of depreciation and continued capitalization of interest on one-half of the coal handling equipment, transmission facilities, and administrative building is a phase-in plan under Subtopic 980-340.
","snippet":"Consistent with the above rate treatment, the utility capitalizes interest on and does not depreciate one-half of the coal handling equipment, transmission facilities, and administrative building from January 31 to Decem…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c996f7c95ebaf4a92aff2b663946a4583d5cf62564d1396d194c44065dd7ffba","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-43","para":"55-43","html":"
This deferral represents a phase-in plan unless that rate treatment was routinely used before 1982 by that regulator for similar allowable costs of that regulated entity. The definition of a phase-in plan provides that a phase-in plan defers the rates intended to recover allowable costs beyond the period in which those allowable costs would be charged to expense under generally accepted accounting principles (GAAP) applicable to entities in general. The interest capitalization period should end and depreciation for the common facilities should begin on February 1, 19X1. Assuming the depreciation pattern for those facilities that results from the above rate-making treatment is not a rational and systematic method of depreciation that would be acceptable for an entity in general, that deferral of depreciation and interest is a phase-in plan. If the depreciation pattern for those facilities that results from the above treatment is a rational and systematic method of depreciation that would be acceptable for an entity in general, only the deferral of the interest is a phase-in plan.
","snippet":"This deferral represents a phase-in plan unless that rate treatment was routinely used before 1982 by that regulator for similar allowable costs of that regulated entity. The definition of a phase-in plan provides that a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f0eeb12596838e6aa0b8ab233c15726597d1abf00ca99ee2dd1cc433af6e2d05","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}},{"citation":"340-980-55-44","para":"55-44","html":"
Subtopic 980-340 provides an exception to the definition of a phase-in plan for the effects of regulatory lag. However, regulatory lag ends for a utility's newly completed plant with the first rate order that both:
  1. a
    Is effective after the in-service date of that plant
  2. b
    Addresses the costs of that plant.
Therefore, even if different portions of the cost of a unit of property (for example, transmission facilities) are considered for rate treatment in successive rate filings under the notion of regulatory lag, it creates a phase-in plan.
","snippet":"Subtopic 980-340 provides an exception to the definition of a phase-in plan for the effects of regulatory lag. However, regulatory lag ends for a utility's newly completed plant with the first rate order that both:\n(a) I…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8dca4346ec5c379750a64ee17dbd2ba2ae0d95fcf428fec3691df8bee30eb02c","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ceb1ebd2c173b641d53a540fc6249de7652ae482fd5e5dbc4bd8b261c3965698","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f21fee432f3310b2e878145c1caf89d6e27d9c25b9680beaa02fbf4328cd729","downloaded_from":"2026-09-10T00:00:02.737Z","last_downloaded_at":"2026-09-10T00:00:02.737Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478098","source_sha256":"f27115dd1aa3d1daff03c50bf39dd10d0dcb2150059d4636cd3c46f188239d48"}}],"enrichment":{"summary":"This subtopic governs when a rate-regulated entity may capitalize incurred costs as regulatory assets (deferred costs) and, in particular, how to account for phase-in plans — rate-making arrangements that defer part of the rate increase caused by placing a newly completed plant in service in order to avoid a \"rate spike.\" A cost is capitalized only if it is probable that future revenue at least equal to the cost will result from including it in allowable costs and that revenue is intended to recover the previously incurred cost rather than fund similar future costs (980-340-25-1). Amounts deferred under a phase-in plan may be capitalized only for plants completed or substantially constructed before January 1, 1988, and only if the plan meets four strict criteria (980-340-25-3).","key_points":["An incurred cost that would otherwise be expensed is capitalized as a regulatory asset only if (a) it is probable (Topic 450) that future revenue at least equal to the cost will result from its inclusion in allowable costs and (b) the revenue is provided to recover the previously incurred cost rather than to fund expected similar future costs (980-340-25-1); a cost failing these criteria is recognized later when they are met, and is charged to earnings if it ceases to meet them (980-340-40-1).","For a phase-in plan on a plant with no substantial physical construction before January 1, 1988, none of the allowable costs deferred by the regulator may be capitalized for financial reporting (980-340-25-2).","For plants completed or substantially constructed before January 1, 1988, all deferred allowable costs are capitalized as a separate deferred charge only if all four criteria are met: a formal plan agreed to by the regulator, specified timing of recovery, recovery of all deferrals within 10 years of when deferrals begin, and scheduled percentage rate increases that do not grow year over year (980-340-25-3); failing any one criterion, none may be capitalized.","An allowance for earnings on shareholders' investment is not an incurred cost that would otherwise be charged to expense and cannot be capitalized under 980-340-25-1; it may be capitalized only during construction or as part of a qualifying phase-in plan (980-340-25-5 through 25-6).","A regulator's exclusion of a cost from allowable costs reduces the carrying amount of the related regulatory asset by the excluded amount, other assets being tested under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 (980-340-35-1); later allowance of previously excluded costs creates a new asset (980-340-35-2), and an indirect disallowance embedded in a phase-in plan is accounted for under Section 980-360-35 (980-340-35-4).","Cumulative amounts capitalized under phase-in plans are reported as a separate balance sheet asset, and the net amount capitalized or recovered each period is reported as a separate item of other income or expense, not as a reduction of other expenses (980-340-45-1).","Disclosure is required of the terms of all phase-in plans (including net amounts deferred for rate-making purposes under nonqualifying plans), of major costs recovered without a return on investment during the recovery period, and of any allowance for earnings on shareholders' investment capitalized for rate-making but not for financial reporting (980-340-50-1 through 50-3)."],"categories":["Recognition","Subsequent measurement","Industry-specific","Disclosure"],"audience_level":"advanced","student_note":"Regulated utilities are the classic exception to the rule that costs are expensed when incurred — a regulator's rate action can itself create an asset. The most common misunderstanding is assuming any regulator-ordered deferral can be capitalized: deferrals under phase-in plans for post-1988 plants are never capitalized for GAAP (only disclosed), and an allowance for earnings on shareholders' investment is never capitalized outside construction or a qualifying phase-in plan.","related_topics":["980-10","980-360","980-835","360-10","450","842-40"],"key_concepts":["regulatory asset","phase-in plan","allowable costs","rate spike","allowance for earnings on shareholders' investment","disallowance of plant costs","regulatory lag","mirror construction work in progress"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b30970ca24e85a6236ba282f92787d69e647b69eddc2366a13df0459824bc824","downloaded_from":"2026-09-09T23:59:39.238Z","last_downloaded_at":"2026-09-10T00:00:06.441Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"980-20","title":"Discontinuation of Rate-Regulated Accounting","topic_title":"Regulated Operations","score":0.7556,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fb83f288b8c9d9c17343a0157f44937ed092396d4a13deddbc155f735a12642","downloaded_from":"2026-09-10T02:27:47.191Z","last_downloaded_at":"2026-09-10T02:28:14.273Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"980-10","title":"Overall","topic_title":"Regulated Operations","score":0.7366,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81387cf0cddbd96cc1005e14cc53e47dedf1d00b2dcd45e508e134b1f58e3b4a","downloaded_from":"2026-09-10T02:27:16.483Z","last_downloaded_at":"2026-09-10T02:27:45.235Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"360-980","title":"Regulated Operations","topic_title":"Property, Plant, and Equipment","score":0.7357,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe858dbdc5a7dfb96179bc121a2e2d874f5a018531ebdc7e12a5a019bc515040","downloaded_from":"2026-09-10T00:13:03.015Z","last_downloaded_at":"2026-09-10T00:13:32.748Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"715-980","title":"Regulated Operations","topic_title":"Compensation—Retirement Benefits","score":0.7277,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f73df781106551bbe95f37ef63ec8c884eafe84d389cf00dc0a947bc79ed7576","downloaded_from":"2026-09-10T01:02:48.718Z","last_downloaded_at":"2026-09-10T01:03:11.702Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"740-980","title":"Regulated Operations","topic_title":"Income Taxes","score":0.7162,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68c78b884a168a7f3c1df962b39f5b8fe421d8275f072b7cba6f1cf436159736","downloaded_from":"2026-09-10T01:21:36.471Z","last_downloaded_at":"2026-09-10T01:21:55.089Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"835-20","title":"Capitalization of Interest","topic_title":"Interest","score":0.7139,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae3299db43da1b98cad6535e74a8d4fa146f6526dbc93cec11787376bc5951c1","downloaded_from":"2026-09-10T01:48:54.719Z","last_downloaded_at":"2026-09-10T01:49:28.506Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"340-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Other Assets and Deferred Costs","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4650b88f5196de47ede8e82ade9dbd90f95d4c458a553efe9d284cccff7ff67e","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"350-10","title":"Overall","topic_title":"Intangibles—Goodwill and Other","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:428b7c102577f3d6f4ef7e1bf9ad56d90da9dc920603a23573d9c8d99f56c47f","downloaded_from":"2026-09-10T00:00:08.118Z","last_downloaded_at":"2026-09-10T00:00:36.319Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f6ef81835a30563fbc1007859fb3d0a91b64bde56bf1c91fffec9b3427c7d72","downloaded_from":"2026-09-09T23:59:39.238Z","last_downloaded_at":"2026-09-10T00:00:06.441Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"paragraphs":339,"summary":"ASC 340 is the Codification's home for \"other assets and deferred costs\" — items paid or incurred now that are carried as assets and charged to expense later. The Overall subtopic (340-10) covers prepaid expenses classified as current assets and preproduction design and development costs under long-term supply arrangements (expense the product design costs; capitalize tooling costs only when the supplier owns the tools or holds a noncancelable right to use them, or when a contractual guarantee for reimbursement exists), while 340-40 supplies the modern, cross-cutting rule: incremental costs of obtaining a Topic 606 contract and qualifying fulfillment costs are capitalized if recoverable, amortized as the related goods or services transfer, and tested for impairment with no reversal. The remaining subtopics are industry overlays — deposit accounting for insurance contracts lacking risk transfer (340-30), prepaid reinsurance premiums (340-944), music advance royalties and record masters (340-928), broker-dealer exchange memberships and deferred underwriting expenses (340-940), GNMA issuance costs (340-948), health care prepaid physician costs (340-954), time-sharing selling costs (340-978), real estate project and preacquisition costs (340-970), and rate-regulated phase-in plan regulatory assets (340-980). The unifying idea is that deferral is permitted only when future recovery from identifiable future revenue is probable or reasonably expected; where that link was weak, ASU 2014-09 and ASU 2014-10 superseded the old guidance entirely (340-20 advertising, 340-910 contractors, 340-952 franchisors, 340-915 development stage entities).","concepts":["incremental costs of obtaining a contract","costs to fulfill a contract","prepaid expenses","preproduction design and development costs","deposit method for insurance risk transfer","real estate project and preacquisition costs","regulatory assets and phase-in plans","amortization and impairment of capitalized costs"],"categories":["Recognition","Subsequent measurement","Revenue","Industry-specific"],"level":"intermediate","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7aed8c70acd7724f3d513828edd6c49cd077f6e256fba59961ffbf7ef7e2d938","downloaded_from":"2026-09-09T23:54:15.524Z","last_downloaded_at":"2026-09-10T00:00:06.441Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}