{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/350/10/#40-derecognition","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"350","topic_title":"Intangibles—Goodwill and Other","subtopic":"350-10","subtopic_title":"Overall","section":{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Transfer or Sale of Intangible Assets","paragraphs":[{"citation":"350-10-40-1","para":"40-1","html":"
An entity shall account for the derecognition of a nonfinancial asset, including an in substance nonfinancial asset, within the scope of this Topic in accordance with Subtopic 610-20 on gains and losses from the derecognition of nonfinancial assets, unless a scope exception from Subtopic 610-20 applies. For example, the derecognition of a nonfinancial asset in a contract with a customer shall be accounted for in accordance with Topic 606 on revenue from contracts with customers.
","snippet":"An entity shall account for the derecognition of a nonfinancial asset, including an in substance nonfinancial asset, within the scope of this Topic in accordance with Subtopic 610-20 on gains and losses from the derecogn…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9b486d623273879e19a900a2d64357e565d928c080d0d6d9fc75231908a56b8","downloaded_from":"2026-09-10T00:00:20.799Z","last_downloaded_at":"2026-09-10T00:00:20.799Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482636","source_sha256":"08d0b72791169c9942e3c4c04761d9ebdc8ecd7dff1ef299b100465be59a4776"}},{"citation":"350-10-40-2","para":"40-2","html":"
An entity shall account for the derecognition of a subsidiary or a group of assets that is either a business or nonprofit activity in accordance with the derecognition guidance in Subtopic 810-10.
","snippet":"An entity shall account for the derecognition of a subsidiary or a group of assets that is either a business or nonprofit activity in accordance with the derecognition guidance in Subtopic 810-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1381ef3234814c5e9ac7e24ae2267383a465d34954fb5eb9c81c9f2a5958d518","downloaded_from":"2026-09-10T00:00:20.799Z","last_downloaded_at":"2026-09-10T00:00:20.799Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482636","source_sha256":"08d0b72791169c9942e3c4c04761d9ebdc8ecd7dff1ef299b100465be59a4776"}},{"citation":"350-10-40-3","para":"40-3","html":"
If an entity transfers a nonfinancial asset in accordance with paragraph 350-10-40-1, and the contract does not meet all of the criteria in paragraph 606-10-25-1, the entity shall not derecognize the nonfinancial asset and shall follow the guidance in paragraphs
606-10-25-6 through 25-8
to determine if and when the contract subsequently meets all of the criteria in paragraph 606-10-25-1. Until all of the criteria in paragraph 606-10-25-1 are met, the entity shall continue to do any of the following, as applicable:
  1. a
    Report the nonfinancial asset in its financial statements
  2. b
    Recognize amortization expense as a period cost for those assets with a finite life
  3. c
    Apply the impairment guidance in Section 350-30-35
  4. d
    For crypto assets accounted for in accordance with Subtopic 350-60, recognize gains and losses from remeasurement.
","snippet":"If an entity transfers a nonfinancial asset in accordance with paragraph 350-10-40-1, and the contract does not meet all of the criteria in paragraph 606-10-25-1, the entity shall not derecognize the nonfinancial asset a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9051801ae617ca84462f4f30a225aaf35b780f02a9f24577acf0cecd641528fc","downloaded_from":"2026-09-10T00:00:20.799Z","last_downloaded_at":"2026-09-10T00:00:20.799Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482636","source_sha256":"08d0b72791169c9942e3c4c04761d9ebdc8ecd7dff1ef299b100465be59a4776"}},{"citation":"350-10-40-4","para":"40-4","html":"
Additionally, see the derecognition guidance in Section 350-20-40 regarding the disposal of all or a portion of a reporting unit.
","snippet":"Additionally, see the derecognition guidance in Section 350-20-40 regarding the disposal of all or a portion of a reporting unit.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b32677b5f39fba8b0e3fc96f7d30ebc167fec0afdb619d80e296cab78e454577","downloaded_from":"2026-09-10T00:00:20.799Z","last_downloaded_at":"2026-09-10T00:00:20.799Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482636","source_sha256":"08d0b72791169c9942e3c4c04761d9ebdc8ecd7dff1ef299b100465be59a4776"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8b05c0a40d484d3b8aecc3ec169bff393f7a9ebea4749a53e284eff80143f6e","downloaded_from":"2026-09-10T00:00:20.799Z","last_downloaded_at":"2026-09-10T00:00:20.799Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482636","source_sha256":"08d0b72791169c9942e3c4c04761d9ebdc8ecd7dff1ef299b100465be59a4776"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c30d18b4a81f6a3698bdbb6c84396e249c67b1e5b9b06f4395a98fc381642a4","downloaded_from":"2026-09-10T00:00:20.799Z","last_downloaded_at":"2026-09-10T00:00:20.799Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482636","source_sha256":"08d0b72791169c9942e3c4c04761d9ebdc8ecd7dff1ef299b100465be59a4776"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c30d18b4a81f6a3698bdbb6c84396e249c67b1e5b9b06f4395a98fc381642a4","downloaded_from":"2026-09-10T00:00:20.799Z","last_downloaded_at":"2026-09-10T00:00:20.799Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482636","source_sha256":"08d0b72791169c9942e3c4c04761d9ebdc8ecd7dff1ef299b100465be59a4776"}}