# ASC 350-30-25: Intangibles—Goodwill and Other — General Intangibles Other Than Goodwill — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/30/#25-recognition) 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): 2026-09-10T00:01:43.562Z to 2026-09-10T00:01:43.562Z Record version: sha256:66eae7fc6799edfda8378ae21320d31d627de49ad291d6f27d71a6dec59b1bb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/30/#25-recognition) SEC content: no ##### [350-30-25-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:43.562Z to 2026-09-10T00:01:43.562Z Record version: sha256:9f46119d9e5403e5425fdb2c819ffe6a53dd076dd72a8fc2b050dfb74796d9d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that is acquired either individually or with a group of other assets shall be recognized. ##### [350-30-25-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:43.562Z to 2026-09-10T00:01:43.562Z Record version: sha256:1432f473d756bac7ee39331ccf639b86e3a9bbedf71651a6efee3dbcb2e5863f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [805-50-30-3](https://asc.understandingaccounting.org/asc/805/50/#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](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "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."), or a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "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.") formation shall be allocated to the individual assets acquired based on their relative fair values and shall not give rise to [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "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."). ##### [350-30-25-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:43.562Z to 2026-09-10T00:01:43.562Z Record version: sha256:f7a6fa64cc7f4fda7afb458a525480cc1afb4903a41eab096cc5ebb65b48d361 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of internally developing, maintaining, or restoring [intangible assets](https://asc.understandingaccounting.org/glossary/i/#intangible-assets "Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)") 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. ##### [350-30-25-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-25-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:01:43.562Z to 2026-09-10T00:01:43.562Z Record version: sha256:a8c2bcb42f9bd4ab2e190d8d8083a2bf481a14f19e915b0ce80a2083efd991ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 recognition criteria in FASB Concepts Statement No. 5, _Recognition and Measurement in Financial Statements of Business Enterprises_, 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. Transition date:(P) December 16, 2024; (N) December 16, 2025Transition guidance: [105-10-65-9](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-9)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 qualify for recognition even though they do not meet either the contractual-legal criterion or the separability criterion for being an [identifiable](https://asc.understandingaccounting.org/glossary/i/#identifiable "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.") asset (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. #### Defensive Intangible Assets ##### [350-30-25-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:43.562Z to 2026-09-10T00:01:43.562Z Record version: sha256:547b54ceb617367d69ccbe183c136575a5d4cd376a0cde6b8216f6d3ec12c5d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [defensive intangible asset](https://asc.understandingaccounting.org/glossary/d/#defensive-intangible-asset "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."), 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 included as part of the cost of an entity's existing intangible asset(s). For implementation guidance on determining whether an intangible asset is a defensive intangible asset, see paragraph [350-30-55-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-1). For guidance on intangible 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 used in research and development activities (regardless of whether they have an alternative future use), see paragraph [350-30-35-17A](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-17A). 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 730-10.