# ASC 350-950-40: Intangibles—Goodwill and Other — Financial Services—Title Plant — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

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## ASC 350-950-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/350/950/#40-derecognition)

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##### [350-950-40-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-40-1)

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The sale of a [title plant](https://asc.understandingaccounting.org/glossary/t/#title-plant "A historical record of all matters affecting title to parcels of land in a particular geographic area. The number of years covered by a title plant varies, depending on regulatory requirements and the minimum information period considered necessary to issue title insurance policies efficiently.") shall be reported separately as follows:

1.  a
    
    If an entity sells its title plant and relinquishes all rights to its future use, the reported gain or loss shall be recognized at the amount to which the entity is entitled in accordance with Subtopic 610-20 on the gains and losses from the derecognition of nonfinancial assets net of the adjusted cost of the title plant.
    
2.  b
    
    If an entity sells an undivided ownership interest in its title plant (that is, the right to its joint use), the reported gain or loss shall be the amount received net of a pro rata portion of the adjusted cost of the title plant.
    
3.  c
    
    If an entity sells a copy of its title plant or the right to use it, the recognized [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations."), if 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. If the contract is not with a customer, the gain or loss shall be accounted for in accordance Subtopic 610-20. Ordinarily, no cost shall be allocated to the sale of a copy of or the right to use a title plant unless the value of the title plant decreases below its adjusted cost as a result of the sale (see paragraph [950-350-35-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-35-1)).