# ASC 350-10-40: Intangibles—Goodwill and Other — Overall — 40 Derecognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/10/#40-derecognition) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:00:20.799Z to 2026-09-10T00:00:20.799Z Record version: sha256:1c30d18b4a81f6a3698bdbb6c84396e249c67b1e5b9b06f4395a98fc381642a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/350/10/#40-derecognition) SEC content: no #### Transfer or Sale of Intangible Assets ##### [350-10-40-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:20.799Z to 2026-09-10T00:00:20.799Z Record version: sha256:d9b486d623273879e19a900a2d64357e565d928c080d0d6d9fc75231908a56b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with a [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") shall be accounted for in accordance with Topic 606 on revenue from contracts with customers. ##### [350-10-40-2](https://asc.understandingaccounting.org/asc/350/10/#350-10-40-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:20.799Z to 2026-09-10T00:00:20.799Z Record version: sha256:1381ef3234814c5e9ac7e24ae2267383a465d34954fb5eb9c81c9f2a5958d518 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall account for the derecognition of a subsidiary or a group of assets that is either a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") in accordance with the derecognition guidance in Subtopic 810-10. ##### [350-10-40-3](https://asc.understandingaccounting.org/asc/350/10/#350-10-40-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:20.799Z to 2026-09-10T00:00:20.799Z Record version: sha256:9051801ae617ca84462f4f30a225aaf35b780f02a9f24577acf0cecd641528fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity transfers a nonfinancial asset in accordance with paragraph [350-10-40-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-40-1), and the contract does not meet all of the criteria in paragraph [606-10-25-1](https://asc.understandingaccounting.org/asc/606/10/#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](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-6) to determine if and when the contract subsequently meets all of the criteria in paragraph [606-10-25-1](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-1). Until all of the criteria in paragraph [606-10-25-1](https://asc.understandingaccounting.org/asc/606/10/#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. ##### [350-10-40-4](https://asc.understandingaccounting.org/asc/350/10/#350-10-40-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:20.799Z to 2026-09-10T00:00:20.799Z Record version: sha256:b32677b5f39fba8b0e3fc96f7d30ebc167fec0afdb619d80e296cab78e454577 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Additionally, see the derecognition guidance in Section 350-20-40 regarding the disposal of all or a portion of a reporting unit.