{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/350/30/#25-recognition","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":"350-30","subtopic_title":"General Intangibles Other Than Goodwill","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"350-30-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_6DA798A3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An intangible asset that is acquired either individually or with a group of other assets shall be </span></span><span class=\"sfragment\" id=\"sfr_6DA799CC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">recognized. </span></span></div></div>","snippet":"An intangible asset that is acquired either individually or with a group of other assets shall be recognized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f46119d9e5403e5425fdb2c819ffe6a53dd076dd72a8fc2b050dfb74796d9d8","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}},{"citation":"350-30-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfragment_pvg_vsq_kyb\"><span class=\"sfragment-source\">As indicated in paragraph <a href=\"/asc/805/50/#805-50-30-3\" class=\"xref\">805-50-30-3</a>, the cost of a group of assets acquired in a transaction other than a business combination, an <a href=\"/glossary/a/#acquisition-by-a-not-for-profit-entity\" class=\"term\" title=\"A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.\"><span>acquisition by a not-for-profit entity</span></a>, </span></span><span class=\"sfragment\" id=\"sfragment_bnt_wsq_kyb\"><span class=\"sfragment-source\">or a <a href=\"/glossary/j/#joint-venture\" class=\"term\" title=\"An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.\"><span>joint venture</span></a> formation </span></span><span class=\"sfragment\" id=\"sfragment_yqk_xsq_kyb\"><span class=\"sfragment-source\">shall be allocated to the individual assets acquired based on their relative fair values </span></span><span class=\"sfragment\" id=\"sfragment_agd_wsq_kyb\"><span class=\"sfragment-source\">and shall not give rise to <a href=\"/glossary/g/#goodwill\" class=\"term\" title=\"An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.\"><span>goodwill</span></a>. </span></span></div></div>","snippet":"As indicated in paragraph 805-50-30-3, the cost of a group of assets acquired in a transaction other than a business combination, an acquisition by a not-for-profit entity, or a joint venture formation shall be allocated…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1432f473d756bac7ee39331ccf639b86e3a9bbedf71651a6efee3dbcb2e5863f","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}},{"citation":"350-30-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_6DA79CE1-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Costs of internally developing, maintaining, or restoring <a href=\"/glossary/i/#intangible-assets\" class=\"term\" title=\"Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)\"><span>intangible assets</span></a> that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business or nonprofit activity and related to an entity as a whole, shall be recognized as an expense when incurred. </span></span></div></div>","snippet":"Costs of internally developing, maintaining, or restoring intangible assets that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business or nonprofit activity and r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f7a6fa64cc7f4fda7afb458a525480cc1afb4903a41eab096cc5ebb65b48d361","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}},{"citation":"350-30-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfragment_wzw_rsq_kyb\"><span class=\"sfragment-source\">Intangible assets that are acquired individually or with a group of assets in a transaction other than a business combination, an acquisition by a not-for-profit entity, </span></span><span class=\"sfragment\" id=\"sfragment_cvx_ssq_kyb\"><span class=\"sfragment-source\">or a joint venture upon formation </span></span><span class=\"sfragment\" id=\"sfragment_xzn_tsq_kyb\"><span class=\"sfragment-source\">may meet asset recognition criteria in FASB Concepts Statement No. 5, <em class=\"ph i\">Recognition and Measurement in Financial Statements of Business Enterprises</em>, even though they do not meet either the contractual-legal criterion or the separability criterion (for example, specially-trained employees or a unique manufacturing process related to an acquired manufacturing plant). Such transactions commonly are bargained exchange transactions that are conducted at arm's length, which provides reliable evidence about the existence and fair value of those assets. Thus, those assets shall be recognized as intangible assets. </span></span></div><div class=\"div pending-text\" id=\"pgroup_6DA78D32-6E92-1014-A13F-6E4B94C84136__GUID-8780E75B-65BD-4A08-8991-32F4C2B583E7\"><div class=\"div date-effective\"><span class=\"transition-header\">Transition date:</span><span class=\"p-alphabet\">(P) December 16, 2024; (N) December 16, 2025</span><span class=\"transition-header pipe-separator\">Transition guidance:</span></div><a href=\"/asc/105/10/#105-10-65-9\" class=\"xref\">105-10-65-9</a><span class=\"sfragment\" id=\"GUID-F1C902DD-AC3F-4918-AE58-9951777A83E2\"><span class=\"sfragment-source\">Intangible assets that are acquired individually or with a group of assets in a transaction other than a business combination, an acquisition by a not-for-profit entity, </span></span><span class=\"sfragment\" id=\"GUID-54A7D842-9717-42FA-9585-52A573F851AE\"><span class=\"sfragment-source\">or a joint venture upon formation </span></span><span class=\"sfragment\" id=\"GUID-25A4F084-D8F3-4D2B-B0E0-FEF596F8E8DD\"><span class=\"sfragment-source\">may </span></span><span class=\"sfragment\" id=\"GUID-32EA505F-BD81-4377-A705-26398B7B9916\"><span class=\"sfragment-source\">qualify for recognition</span></span><span class=\"sfragment\" id=\"GUID-1190D644-FAF3-46E4-9250-85D335B97A85\"><span class=\"sfragment-source\"> even though they do not meet either the contractual-legal criterion or the separability criterion </span></span><span class=\"sfragment\" id=\"GUID-E77E4562-D051-454C-92DF-8F81B15BB21C\"><span class=\"sfragment-source\">for being an <a href=\"/glossary/i/#identifiable\" class=\"term\" title=\"An asset is identifiable if it meets either of the following criteria: It is separable, that is, capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability, regardless of whether the entity intends to do so. It arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.\"><span>identifiable</span></a> asset </span></span><span class=\"sfragment\" id=\"GUID-04D0D920-0309-422B-9853-3715BE6B1001\"><span class=\"sfragment-source\">(for example, specially-trained employees or a unique manufacturing process related to an acquired manufacturing plant). Such transactions commonly are bargained exchange transactions that are conducted at arm's length, which provides reliable evidence about the existence and fair value of those assets. Thus, those assets shall be recognized as intangible assets. </span></span></div></div>","snippet":"Intangible assets that are acquired individually or with a group of assets in a transaction other than a business combination, an acquisition by a not-for-profit entity, or a joint venture upon formation may meet asset r…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a8c2bcb42f9bd4ab2e190d8d8083a2bf481a14f19e915b0ce80a2083efd991ff","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:433e84603173f978e1f0926837671c6c3d299a5fb84b6a66d5801495a11565ef","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}},{"block":null,"heading":"Defensive Intangible Assets","paragraphs":[{"citation":"350-30-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-FFF5A040-BE32-472D-AFE9-F91A951A5BA1\"><span class=\"sfragment-source\">A <a href=\"/glossary/d/#defensive-intangible-asset\" class=\"term\" title=\"An acquired intangible asset in a situation in which an entity does not intend to actively use the asset but intends to hold (lock up) the asset to prevent others from obtaining access to the asset.\"><span>defensive intangible asset</span></a>, other than an intangible asset that is used in research and development activities, </span></span><span class=\"sfragment\" id=\"sfragment_rfl_nm5_kyb\"><span class=\"sfragment-source\">shall be accounted for as a separate unit of accounting. Such a defensive intangible asset shall not be included as part of the cost of an entity's existing intangible asset(s). </span></span>For implementation guidance on determining whether an intangible asset is a defensive intangible asset, see paragraph <a href=\"/asc/350/30/#350-30-55-1\" class=\"xref\">350-30-55-1</a>. <span class=\"sfragment\" id=\"sfragment_zj2_4m5_kyb\"><span class=\"sfragment-source\">For guidance on intangible assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity</span></span><span class=\"sfragment\" id=\"sfragment_zyq_2n5_kyb\"><span class=\"sfragment-source\">, or recognized by a joint venture upon formation </span></span><span class=\"sfragment\" id=\"sfragment_y3c_5n5_kyb\"><span class=\"sfragment-source\">that are used in research and development activities </span></span><span class=\"sfragment\" id=\"sfragment_ymb_pm5_kyb\"><span class=\"sfragment-source\">(regardless of whether they have an alternative future use), see paragraph <a href=\"/asc/350/30/#350-30-35-17A\" class=\"xref\">350-30-35-17A</a>. </span></span>For guidance on intangibles that are purchased from others for a particular research and development project and that have no alternative future uses (in other research and development projects or otherwise), see Subtopic <a altsource=\"GUID-146E5FDA-DB79-4838-B45B-CF40885137A1.ditamap\" class=\"ditamap\">730-10</a>.</div></div>","snippet":"A defensive intangible asset, other than an intangible asset that is used in research and development activities, shall be accounted for as a separate unit of accounting. Such a defensive intangible asset shall not be in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:547b54ceb617367d69ccbe183c136575a5d4cd376a0cde6b8216f6d3ec12c5d1","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de07f01519c13484c4e4c39412a8f1a1c63ec2e5664a7fddd35d3eb31ee0d6e8","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66eae7fc6799edfda8378ae21320d31d627de49ad291d6f27d71a6dec59b1bb4","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:66eae7fc6799edfda8378ae21320d31d627de49ad291d6f27d71a6dec59b1bb4","downloaded_from":"2026-09-10T00:01:43.562Z","last_downloaded_at":"2026-09-10T00:01:43.562Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482568","source_sha256":"0f47f3c59808f6fb189bc2f233bc1f10010bd9edccdbe93f4282a5ad936b0787"}}