# ASC Topic 350: Intangibles—Goodwill and Other Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/350/) 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): 2026-09-10T00:00:08.118Z to 2026-09-10T00:05:31.733Z Record version: sha256:db59a3c3f7226c7e62947c95813e15d04bbc6a2883505af2c52b3900fa5efa8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 350 covers the accounting for goodwill and other intangible assets after acquisition — recognition of internally developed and separately acquired intangibles, subsequent measurement, impairment, presentation, and disclosure — while leaving acquisition-date accounting to Topic 805 and 958-805 (350-10-05-1; 05-3A). The organizing idea is that subsequent accounting turns on the nature and life of the asset: goodwill is never amortized under the general model but is tested for impairment at the reporting unit level at least annually (350-20-35-1; 35-4), finite-lived intangibles are amortized and tested under Subtopic 360-10 while indefinite-lived intangibles are not amortized and are tested annually by comparing fair value with carrying amount (350-30-35-6; 35-18), and in-scope crypto assets are remeasured at fair value through net income (350-60-35-1). Cost-capitalization subtopics (350-40 internal-use software, 350-50 website development costs, 350-985 link to 985-20) draw stage-based lines between expensing and capitalizing, and industry subtopics (350-908 airlines, 350-920 broadcasters, 350-922 cable television, 350-932 oil and gas, 350-950 title plants, 350-980 regulated operations) tailor or except those rules. Key elective relief: private companies and NFPs may amortize goodwill over 10 years or less and test only upon a triggering event (350-20-35-63; 35-65 through 35-66). Source downloaded (UTC): 2026-09-10T00:00:08.118Z to 2026-09-10T00:00:36.319Z Record version: sha256:44c0f994bb8cde6a2f7ac25a88b127f33533f6d946354cf62724c2004c24b53d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10: Intangibles—Goodwill and Other — Overall ### Machine-generated study aids ```json { "summary": "ASC 350-10 is the Overall subtopic that sets the scope and structure for the Intangibles—Goodwill and Other Topic. It governs the subsequent measurement, presentation, and disclosure of goodwill and other intangible assets (through Subtopics 350-20, 350-30, 350-40, 350-50, and 350-60), but expressly excludes accounting at acquisition for goodwill and intangibles acquired in a business combination, an NFP acquisition, or recognized by a joint venture upon formation. It also directs that derecognition of nonfinancial assets within the Topic follow Subtopic 610-20 or Topic 606, as applicable.", "key_points": [ "Topic 350 provides guidance on accounting and reporting for goodwill and other intangible assets, including their subsequent measurement, but not the accounting at acquisition in a business combination, NFP acquisition, or joint venture formation (350-10-05-1).", "Topic 350 comprises Overall (350-10), Goodwill (350-20), General Intangibles Other Than Goodwill (350-30), Internal-Use Software (350-40), Website Development Costs (350-50), and Crypto Assets (350-60) (350-10-05-3).", "Acquisition-date guidance instead resides in Subtopic 805-20 (intangibles), 805-30 (goodwill), 958-805 (NFP acquisitions), and 805-60 (joint venture formation) (350-10-05-3A; 350-10-15-3).", "The Topic applies to all entities—business entities, mutual entities, and not-for-profit entities (350-10-15-2).", "Topic 350 does not change accounting prescribed elsewhere, including research and development costs (730-10), extractive activities (932), broadcasters and records and music (920, 928), financial services (950), regulated operations (980-350-35-1 through 35-2), software (985), income taxes (740), and transfers and servicing (860) (350-10-15-4).", "Derecognition of a nonfinancial asset (including an in substance nonfinancial asset) within the Topic follows Subtopic 610-20 unless a scope exception applies; a derecognition in a contract with a customer follows Topic 606 (350-10-40-1), and derecognition of a subsidiary or a group of assets that is a business or nonprofit activity follows Subtopic 810-10 (350-10-40-2).", "If a transfer contract does not meet all criteria in 606-10-25-1, the entity does not derecognize the asset and must continue to report it, amortize finite-lived assets, apply Section 350-30-35 impairment guidance, and remeasure crypto assets under 350-60 until the criteria are met (350-10-40-3)." ], "categories": [ "Intangibles and goodwill", "Derecognition", "Subsequent measurement", "Business combinations" ], "audience_level": "introductory", "student_note": "Know the dividing line: Topic 805 handles goodwill and intangibles at acquisition, while Topic 350 takes over afterward for amortization, impairment, and disclosure. A common mistake is looking to 350 for initial recognition of intangibles acquired in a business combination, or forgetting that asset sales are routed to 610-20/606 rather than to 350 itself.", "related_topics": [ "350-20", "350-30", "350-40", "350-60", "805-20", "610-20" ], "key_concepts": [ "goodwill", "intangible assets", "subsequent measurement", "scope exceptions", "derecognition of nonfinancial assets", "in substance nonfinancial asset", "internal-use software", "crypto assets" ] } ``` Source downloaded (UTC): 2026-09-10T00:00:08.118Z to 2026-09-10T00:00:08.118Z Record version: sha256:d8d2fba3db1e3e28a07f6889700849eb8eab0e7db767167257534d6dcc66ebd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/10/#00-status) SEC content: no ##### [350-10-00-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:08.118Z to 2026-09-10T00:00:08.118Z Record version: sha256:be132afabadcbf23638f3a12dba28f390fb405d791ccff40560492f7be92be79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
Conduit Debt SecurityAddedMaintenance Update 2014-20 (PDF)09/29/2014
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
Corporate Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Environmental CreditAddedAccounting Standards Update No. 2026-0205/19/2026
Environmental Credit ObligationAddedAccounting Standards Update No. 2026-0205/19/2026
ExchangeAddedAccounting Standards Update No. 2026-0205/19/2026
Financial AssetAddedAccounting Standards Update No. 2026-0205/19/2026
GoodwillAmendedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2010-0701/28/2010
Hosting ArrangementAddedAccounting Standards Update No. 2018-1508/29/2018
Income TaxesAddedAccounting Standards Update No. 2026-0205/19/2026
Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Nonprofit ActivityAddedAccounting Standards Update No. 2014-0905/28/2014
Nonpublic Entity (Def. 1)AmendedMaintenance Update 2014-20 (PDF)09/29/2014
Nonpublic Entity (Def. 3)AmendedMaintenance Update 2014-20 (PDF)09/29/2014
Nonpublic EntityAddedAccounting Standards Update No. 2010-2812/17/2010
Nonreciprocal Transfer (1st def.)AddedAccounting Standards Update No. 2026-0205/19/2026
Public EntityAmendedMaintenance Update 2014-20 (PDF)09/29/2014
Public EntityAddedAccounting Standards Update No. 2010-2812/17/2010
Variable Interest EntitySupersededAccounting Standards Update No. 2025-0305/12/2025
350-10-05-1AmendedAccounting Standards Update No. 2023-0508/23/2023
350-10-05-1AmendedAccounting Standards Update No. 2017-0401/26/2017
350-10-05-1AmendedAccounting Standards Update No. 2010-0701/28/2010
350-10-05-2SupersededAccounting Standards Update No. 2017-0401/26/2017
350-10-05-3AmendedAccounting Standards Update No. 2023-0812/13/2023
350-10-05-3AmendedAccounting Standards Update No. 2023-0508/23/2023
350-10-05-3AmendedAccounting Standards Update No. 2018-1508/29/2018
350-10-05-3AmendedAccounting Standards Update No. 2017-0401/26/2017
350-10-05-3AAmendedAccounting Standards Update No. 2023-0508/23/2023
350-10-05-3AAddedAccounting Standards Update No. 2017-0401/26/2017
350-10-05-4 through 05-7
SupersededAccounting Standards Update No. 2017-0401/26/2017
350-10-05-5AmendedAccounting Standards Update No. 2010-0701/28/2010
350-10-15-3AmendedAccounting Standards Update No. 2026-0205/19/2026
350-10-15-3AmendedAccounting Standards Update No. 2023-0508/23/2023
350-10-15-3AmendedAccounting Standards Update No. 2010-0701/28/2010
350-10-40-1AmendedAccounting Standards Update No. 2017-0502/22/2017
350-10-40-1 through 40-4
AddedAccounting Standards Update No. 2014-0905/28/2014
350-10-40-2AmendedAccounting Standards Update No. 2017-0502/22/2017
350-10-40-3AmendedAccounting Standards Update No. 2023-0812/13/2023
350-10-60-1AddedAccounting Standards Update No. 2014-0905/28/2014
350-10-65-1AddedAccounting Standards Update No. 2010-0701/28/2010
350-10-65-2AddedAccounting Standards Update No. 2010-2812/17/2010
Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:e4cda65bbc648f15377a40010a404020453c9886aea6340a23d3d6b1ff1d5ea0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/10/#05-overview-and-background) SEC content: no ##### [350-10-05-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:230050d5b6ca2cf811b6d5ef968814a8aa6e4d160bf128a50ad88edd500a2e67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Intangibles—Goodwill and Other Topic provides guidance on financial accounting and reporting related 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.") and other [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.)"), including the subsequent measurement of goodwill and intangible assets. It does not include guidance on the accounting at acquisition for goodwill and intangible assets acquired in a business combination or in 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."). It also does not include guidance on the accounting upon formation for goodwill and intangible assets recognized by 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."). 1. a [Subparagraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-10-05-2](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:f4037034e72945ca88fb8afa0d18dde49d5c163b5339d6706f0415f63ff954ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-10-05-3](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:236d47db4486c9a5efb6acd0633263a2563c2894fdd009751db5954e26edc147 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic includes the following Subtopics: 1. a Overall. 2. b Goodwill—Subtopic 350-20 provides guidance on the measurement of goodwill after acquisition, derecognition of some or all of goodwill allocated to a reporting unit, other presentation matters, and disclosures. 3. c General Intangibles Other Than Goodwill—Subtopic 350-30 provides guidance on the initial recognition and measurement of intangible assets other than goodwill that are either: 1. 1 Acquired individually or with a group of assets in a transaction that is not a business combination, an acquisition by a not-for-profit entity, or a joint venture formation 2. 2 Internally generated. 4. d Internal-Use Software—Subtopic 350-40 provides guidance on the accounting for the cost of computer software that is developed or obtained for internal use and [hosting arrangements](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") obtained for internal use. 5. e Website Development Costs—Subtopic 350-50 provides guidance on whether to capitalize or expense costs incurred to develop a website. 6. f Crypto Assets—Subtopic 350-60 provides guidance on the subsequent measurement, presentation, and disclosure of crypto assets. ##### [350-10-05-3A](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:7b016ba6c13d37869d1c73d0922cefa807250df5ae97d28d39531c92271bd8b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Guidance for the financial accounting and reporting at acquisition of goodwill and other 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 is provided in the following Subtopics: 1. a Subtopic 805-20 provides acquisition guidance for intangible assets acquired in a business combination or in an acquisition by a not-for-profit entity. 2. b Subtopic 805-30 provides guidance on recognition and initial measurement of goodwill acquired in a business combination. 3. c Subtopic 958-805 provides guidance on recognition and initial measurement of goodwill acquired in an acquisition by a not-for-profit entity. 4. d Subtopic 805-60 provides guidance for a joint venture upon formation on recognition and initial measurement of goodwill and other intangible assets. ##### [350-10-05-4](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:1b8043108428af5bc2b0098e0f6f2c4c44c21a31b7b40c6dd247e2e0ee32df7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-10-05-5](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:2dd36413266b716c870fc910ddf74b66bcb1e71110f81a03545bd70519610b8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-10-05-6](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:cebafab156bc3c8426197e754789702d41e348ac90b4b74df9c4bf40df2ca49d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-10-05-7](https://asc.understandingaccounting.org/asc/350/10/#350-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:10.802Z to 2026-09-10T00:00:10.802Z Record version: sha256:9e4f25648b0d3cbccc903617c14d75fb1d3f4b4d1c4d70d4c397d0475e9554fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). Source downloaded (UTC): 2026-09-10T00:00:14.438Z to 2026-09-10T00:00:14.438Z Record version: sha256:f1f6e4b5e7bd0aebb9cf7f0a0f4334887ff1f1ce310b09784b51462193506b89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-10-15-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:14.438Z to 2026-09-10T00:00:14.438Z Record version: sha256:c9d36f4b54372c207f65ea04982418c0311d932675e3382b8b74873f1313b6f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Intangibles—Goodwill and Other Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Intangibles—Goodwill and Other Topic. #### Entities ##### [350-10-15-2](https://asc.understandingaccounting.org/asc/350/10/#350-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:14.438Z to 2026-09-10T00:00:14.438Z Record version: sha256:9eac204beeb8543232baefd80bb00b2b4c582132baf8027defb555390ba8d344 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Intangibles—Goodwill and Other Topic applies to all entities, including business entities, [mutual entities](https://asc.understandingaccounting.org/glossary/m/#mutual-entity "An entity other than an investor-owned entity that provides dividends, lower costs, or other economic benefits directly and proportionately to its owners, members, or participants. Mutual insurance entities, credit unions, and farm and rural electric cooperatives are examples of mutual entities."), and [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs). #### Transactions ##### [350-10-15-3](https://asc.understandingaccounting.org/asc/350/10/#350-10-15-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:00:14.438Z to 2026-09-10T00:00:14.438Z Record version: sha256:32721ac5ed697b5edfe59a957ba9eb6bf7d6a83f02c9630c35bb2816bdc9c338 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Intangibles—Goodwill and Other Topic does not apply to the following transactions and activities: 1. a The accounting at acquisition for [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.") acquired in a business combination (for guidance see Subtopic 805-30) 2. b [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 3. c The accounting at acquisition for goodwill acquired in 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.") (for guidance see Subtopic 958-805) 4. d The accounting at acquisition for [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.)") (other than goodwill) acquired in a business combination or in an acquisition by a not-for-profit entity (for guidance see Subtopics 805-20 and 958-805) 5. e The accounting upon formation for intangible assets and goodwill recognized by 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.") (for guidance see Subtopic 805-60). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [818-10-65-1](https://asc.understandingaccounting.org/asc/818/10/#818-10-65-1)The guidance in the Intangibles—Goodwill and Other Topic does not apply to the following transactions and activities: 1. a The accounting at acquisition for [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.") acquired in a business combination (for guidance see Subtopic 805-30) 2. b [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 3. c The accounting at acquisition for goodwill acquired in 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.") (for guidance see Subtopic 958-805) 4. d The accounting at acquisition for [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.)") (other than goodwill) acquired in a business combination or in an acquisition by a not-for-profit entity (for guidance see Subtopics 805-20 and 958-805) 5. e The accounting upon formation for intangible assets and goodwill recognized by 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.") (for guidance see Subtopic 805-60) 6. f The accounting for [environmental credits](https://asc.understandingaccounting.org/glossary/e/#environmental-credit "(P) December 16, 2027; (N) December 16, 2028818-10-65-1An enforceable right that is acquired, internally generated, granted by a regulatory agency or its designee(s), or received in a nonreciprocal transfer that is not a grant from a regulator or its designee(s) that meets all of the following criteria:Lacks physical substance and is not a financial asset.Is represented to prevent, control, reduce, or remove emissions or other pollution.Is, or previously was, separately transferable in an exchange transaction. If an item is no longer separately transferable in an exchange transaction, an entity must be able to use that item to satisfy an environmental credit obligation to meet this criterion.Is not an income tax credit that may be used to settle an entity’s income tax liability, regardless of whether the entity has a tax liability or intends to use the credit for that purpose.An environmental credit that meets the above criteria may exist in a variety of forms, including (but not limited to) credits, certificates, allowances, and offsets.") (for guidance see Subtopic 818-20). #### Other Considerations ##### [350-10-15-4](https://asc.understandingaccounting.org/asc/350/10/#350-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:14.438Z to 2026-09-10T00:00:14.438Z Record version: sha256:5235715c9157c1b1b613291007ad726fddd97b7db57dbf4e22b8365666b633fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Intangibles—Goodwill and Other Topic does not change the accounting prescribed in the following locations in the Codification: 1. a Research and development costs under Subtopic 730-10 2. b Extractive activities under Topic 932 3. c Entertainment and media, including records and music under Topic 928 4. d Financial services industry under Topic 950 5. e Entertainment and media, including broadcasters under Topic 920 6. f Regulatory operations under paragraphs [980-350-35-1 through 35-2](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-1) 7. g [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 8. h Software under Topic 985 9. i Income taxes under Topic 740 10. j Transfers and servicing under Topic 860. 11. k [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 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. Source downloaded (UTC): 2026-09-10T00:00:23.747Z to 2026-09-10T00:00:23.747Z Record version: sha256:b349ac30aea922f722c09c252b4b6799c2eea60ff58004cc645bbf1a9356806f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/350/10/#60-relationships) SEC content: no ##### [350-10-60-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:23.747Z to 2026-09-10T00:00:23.747Z Record version: sha256:76e6f3b47b534d3c861eb3fad3aab7a8c9099222d8da00846cede199a266f696 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognizing an impairment loss on barter credits, see paragraph [845-10-30-19](https://asc.understandingaccounting.org/asc/845/10/#845-10-30-19). Source downloaded (UTC): 2026-09-10T00:00:26.416Z to 2026-09-10T00:00:26.416Z Record version: sha256:1e6255c5f00b463432465def9f866beab7f4975a7016d7ce93a2be504fc6f60b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/350/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [350-10-65-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:26.416Z to 2026-09-10T00:00:26.416Z Record version: sha256:8418c88172f40528f58c480110166e62bb554515f35a5d6024618305b18faecb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/20/2011 after the end of the transition period stated in FASB Statement No. 164, _Not-for-Profit Entities: Mergers and Acquisitions_. ##### [350-10-65-2](https://asc.understandingaccounting.org/asc/350/10/#350-10-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:26.416Z to 2026-09-10T00:00:26.416Z Record version: sha256:f327ec3ecd640ad9b2e780551940e26006d0abe6629d09e9fbb6266f419fe5f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2010-28, _Intangibles—Goodwill and Other (Topic 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts_. Source downloaded (UTC): 2026-09-10T00:00:30.526Z to 2026-09-10T00:00:30.526Z Record version: sha256:29e42a0e0c9da3efe0605f1ed5f332b668f4b70bc33fdb83a336cb054c598776 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/10/#sec-00-status) SEC content: yes ##### [350-10-S00-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:30.526Z to 2026-09-10T00:00:30.526Z Record version: sha256:b9f1b17f8a35a04d975ac490af7e7cbb47764fcb1fa189613ac0eede10784267 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No updates have been made to this subtopic. Source downloaded (UTC): 2026-09-10T00:00:32.289Z to 2026-09-10T00:00:32.289Z Record version: sha256:0bcee4a3d5c249eb1892f4cb8e39c2d3631fbebaa5d79a0cd6c76912e24d6e18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/10/#sec-35-subsequent-measurement) SEC content: yes #### Recognition and Measurement of an Impairment Loss ##### [350-10-S35-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-S35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:32.289Z to 2026-09-10T00:00:32.289Z Record version: sha256:a60056fcecf122acf1085c9ab97a2689b791173760bc0704e79e12d9ce8aaa99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [805-20-S99-3](https://asc.understandingaccounting.org/asc/805/20/#805-20-S99-3), SEC Staff Announcement: Use of Residual Method to Value Acquired Assets Other Than Goodwill, for SEC Staff views on the impairment testing of intangible assets. Source downloaded (UTC): 2026-09-10T00:00:36.319Z to 2026-09-10T00:00:36.319Z Record version: sha256:6677fa38a903a26d5d08620ab41309473b4cf7762cf91580032e41fc797b6f7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/350/10/#sec-45-other-presentation-matters) SEC content: yes #### Presentation of Intangible Assets ##### [350-10-S45-1](https://asc.understandingaccounting.org/asc/350/10/#350-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:36.319Z to 2026-09-10T00:00:36.319Z Record version: sha256:9c5354a47d565d4fa1547bf4bcb3229571ec7370a621e3149e72cd15809fc554 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02, for presentation requirements for intangible assets. Source downloaded (UTC): 2026-09-10T00:00:39.885Z to 2026-09-10T00:01:29.561Z Record version: sha256:37283bac90deed7dda336e076a16b00b942c833b4a80465d1864f41a7ef0d718 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20: Intangibles—Goodwill and Other — Goodwill ### Machine-generated study aids ```json { "summary": "ASC 350-20 governs the accounting for goodwill after its initial recognition (initial recognition/measurement is in 805-30, 805-60, or 958-805) and prohibits capitalizing internally developed goodwill. Under the general model, goodwill is not amortized but is tested for impairment at least annually at the reporting unit level, with an optional qualitative \"more likely than not\" screen; if the quantitative test shows the reporting unit's carrying amount exceeds its fair value, a loss is recognized for that excess, capped at the goodwill allocated to the unit. Private companies and not-for-profit entities may elect accounting alternatives to amortize goodwill over 10 years or less and to test only upon a triggering event, and/or to evaluate triggering events only as of the end of each reporting period.", "key_points": [ "Goodwill shall not be amortized under the general model; it must be tested for impairment at least annually at the reporting unit level and between annual tests if an event makes it more likely than not that a reporting unit's fair value has fallen below its carrying amount (350-20-35-1; 35-28; 35-30); costs of internally developing goodwill are expensed as incurred (350-20-25-3).", "An entity may first perform an optional qualitative assessment of the events and circumstances listed in 350-20-35-3C(a) through (g) to decide whether the quantitative test is needed, and has an unconditional option to bypass it and go straight to the quantitative test (350-20-35-3A through 35-3B).", "The quantitative test compares the reporting unit's fair value with its carrying amount, including goodwill; if carrying amount exceeds fair value, an impairment loss equal to that excess is recognized, limited to the total goodwill allocated to the reporting unit, with a simultaneous-equation adjustment where goodwill is tax deductible (350-20-35-4; 35-8; 35-8B).", "Deferred income taxes are included in the reporting unit's carrying amount regardless of whether fair value assumes a taxable or nontaxable sale, and the entity must judge which assumption market participants would use (350-20-35-7; 35-25 through 35-27).", "After a goodwill impairment loss, the adjusted carrying amount is the new accounting basis and reversal of the loss is prohibited; other assets or asset groups tested at the same time are tested before goodwill (350-20-35-12 through 35-13; 35-31).", "Reporting units are determined using Topic 280: a component of an operating segment is a reporting unit if it is a business (or nonprofit activity) with discrete financial information regularly reviewed by segment management, and economically similar components must be aggregated (350-20-35-33 through 35-36).", "Private companies and NFPs may elect to amortize goodwill straight-line over 10 years or less and test at the entity or reporting unit level only upon a triggering event, and/or to evaluate triggering events only as of the end of each reporting period (350-20-15-4; 35-63; 35-65 through 35-66; 35-84)." ], "categories": [ "Impairment", "Intangibles and goodwill", "Subsequent measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exam questions almost always test the post-ASU 2017-04 single-step measurement: the loss equals carrying amount minus fair value of the reporting unit, capped at that unit's goodwill — there is no longer a Step 2 \"implied fair value of goodwill\" computation. Common misunderstandings are forgetting the goodwill cap, excluding deferred taxes from the reporting unit's carrying amount, and thinking impairment losses can later be reversed.", "related_topics": [ "805-30", "958-805", "805-60", "350-30", "280-10", "323-10" ], "key_concepts": [ "goodwill", "reporting unit", "annual impairment test", "qualitative assessment", "more likely than not", "goodwill amortization accounting alternative", "triggering event evaluation", "relative fair value allocation" ] } ``` Source downloaded (UTC): 2026-09-10T00:00:39.885Z to 2026-09-10T00:00:39.885Z Record version: sha256:55bbf1a03209f7f7afff394aa5d2f8399bdc045d4e80bd21aec8e46152228c1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/20/#00-status) SEC content: no ##### [350-20-00-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:39.885Z to 2026-09-10T00:00:39.885Z Record version: sha256:f65d5d587226b284197a9abb56a298b1d9006bd6605e77ed171733ef0c945994 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
Corporate Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Formation DateAddedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2010-0701/28/2010
Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Nonprofit ActivityAddedAccounting Standards Update No. 2010-0701/28/2010
Not-for-Profit EntityAddedAccounting Standards Update No. 2014-0201/16/2014
Private CompanyAddedAccounting Standards Update No. 2014-0201/16/2014
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0201/16/2014
Securities and Exchange Commission (SEC) FilerAddedAccounting Standards Update No. 2017-0401/26/2017
Variable Interest EntitySupersededAccounting Standards Update No. 2025-0305/12/2025
350-20-05-1AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-05-2AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-05-2AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-05-3SupersededAccounting Standards Update No. 2017-0401/26/2017
350-20-05-4AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-05-4 through 05-6
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-05-4AAmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-05-4AAmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-05-4AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-05-4BAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-05-5 through 05-6
AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-05-5AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-05-5AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-15-2AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-15-2AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-15-2ASupersededAccounting Standards Update No. 2010-0701/28/2010
350-20-15-3AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-15-3A through 15-5
AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-15-3AAmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-15-3AAddedAccounting Standards Update No. 2016-0303/07/2016
350-20-15-4AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-15-4AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-15-4AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-15-4AAddedAccounting Standards Update No. 2021-0303/30/2021
350-20-15-5AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-15-6AddedAccounting Standards Update No. 2021-0303/30/2021
350-20-25-1AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-25-1AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-1 through 35-3
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-3AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-3A through 35-3G
AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-3BAmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-3D through 35-4
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-6AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-6AmendedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-7AmendedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-8AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-8A through 35-11
SupersededAccounting Standards Update No. 2017-0401/26/2017
350-20-35-8AAmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-8AAddedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-8BAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-14 through 35-21
SupersededAccounting Standards Update No. 2017-0401/26/2017
350-20-35-14AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-25AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-25AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-26AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-29SupersededAccounting Standards Update No. 2011-0809/15/2011
350-20-35-30AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-30AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-30AmendedAccounting Standards Update No. 2010-2812/17/2010
350-20-35-34AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-39AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-41AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-35-45AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-48AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-51AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-35-52 through 35-57SupersededAccounting Standards Update No. 2012-0410/01/2012
350-20-35-57AmendedAccounting Standards Update No. 2011-0809/15/2011
350-20-35-57AAmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-57AAmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-35-60SupersededAccounting Standards Update No. 2014-0201/16/2014
350-20-35-62AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-62 through 35-82
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-35-63AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-35-63AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-63AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-35-65 through 35-67
AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-73AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-35-79AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-81AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-35-83 through 35-86
AddedAccounting Standards Update No. 2021-0303/30/2021
350-20-40-1 through 40-7
AddedAccounting Standards Update No. 2012-0410/01/2012
350-20-40-2 through 40-7
AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-40-7AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-40-8AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-40-8AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-40-9AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-40-9AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-45-3AmendedAccounting Standards Update No. 2016-1912/14/2016
350-20-45-4AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-45-4 through 45-7
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-45-6AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-50-1AAddedAccounting Standards Update No. 2017-0401/26/2017
350-20-50-2AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-50-2AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-50-3AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-50-3AAddedAccounting Standards Update No. 2021-0303/30/2021
350-20-50-3BAddedAccounting Standards Update No. 2021-0303/30/2021
350-20-50-4AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-50-4AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-50-4AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-50-4 through 50-7
AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-50-6AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-50-7AmendedAccounting Standards Update No. 2023-0508/23/2023
350-20-50-7AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-55-3AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-55-7AmendedAccounting Standards Update No. 2010-0701/28/2010
350-20-55-10AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-12 through 55-17
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-13AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-55-19 through 55-26
AmendedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-20AmendedAccounting Standards Update No. 2012-0410/01/2012
350-20-55-23A through 55-23D
AddedAccounting Standards Update No. 2017-0401/26/2017
350-20-55-25AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-55-26AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-55-26AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-55-27 through 55-29
AddedAccounting Standards Update No. 2021-0303/30/2021
350-20-65-1AddedAccounting Standards Update No. 2011-0809/15/2011
350-20-65-2AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-65-2AmendedAccounting Standards Update No. 2019-0605/30/2019
350-20-65-2AmendedAccounting Standards Update No. 2016-0303/07/2016
350-20-65-2AddedAccounting Standards Update No. 2014-0201/16/2014
350-20-65-3AmendedAccounting Standards Update No. 2021-0303/30/2021
350-20-65-3AmendedAccounting Standards Update No. 2019-1011/15/2019
350-20-65-3AmendedMaintenance Update 2017-04 (PDF)03/06/2017
350-20-65-3AddedAccounting Standards Update No. 2017-0401/26/2017
350-20-65-4AddedAccounting Standards Update No. 2021-0303/30/2021
Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:809492275a3e42e646b83bec24433534571dffe819cb38276f3de553f068dc78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/20/#05-overview-and-background) SEC content: no ##### [350-20-05-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:ccabf1b89c315c3a1bb1c01cafca0dee0181ea155fb9266f9d896e502cb9d996 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses financial accounting and reporting for [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.") subsequent to its acquisition and for the cost of internally developing goodwill. ##### [350-20-05-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:0e8422f5cc6219c77fa5ee818608dfb290447456df4dca0f0649889faa33ace7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 805-30 provides guidance on recognition and initial measurement of goodwill acquired in a business combination. Subtopic 958-805 provides guidance on recognition and initial measurement of goodwill acquired in 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."). Subtopic 805-60 provides guidance on the recognition and initial measurement of goodwill by 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.") upon formation. ##### [350-20-05-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:27d79f01dffb9a5e88b55a008ca9f34a8b9996d4012006a86890998c9637db6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-05-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:20a76b6b1bc0e69b313fe87bd584e421b99e0182721fd413a8d79bae1f230d46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic is presented in the following two Subsections: 1. a General 2. b Accounting Alternatives. ##### [350-20-05-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:cae301dd9b02d412a1ddd148949c8becb05c911ad1fe7aedd734e462bd756b41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of developing, maintaining, or restoring internally generated goodwill should not be capitalized. For entities that do not elect the accounting alternative for amortizing goodwill included in the guidance in the Subsections outlined in paragraph [350-20-05-5A](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5A), goodwill that is recognized under the business combination guidance in Topic 805 and Subtopic 958-805 and goodwill that is recognized under the joint venture formation guidance in Subtopic 805-60should not be amortized. Instead, it should be tested for impairment at least annually in accordance with paragraphs [350-20-35-28 through 35-32](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28) .If the accounting alternative for a goodwill impairment triggering event evaluation is elected, a goodwill impairment triggering event shall be evaluated in accordance with paragraphs [350-20-35-83 through 35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-83) . ##### [350-20-05-4B](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-4B) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:882d5742cb413f23ba014638c32db6d68ff8c9e3a3a77cad4e2af2354e09003f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic also includes guidance on the following: 1. a How an entity should derecognize goodwill when it disposes of all or a portion of a reporting unit 2. b How goodwill should be presented in the balance sheet 3. c How impairment losses should be presented in the income statement 4. d What disclosures about goodwill and related impairment considerations should be made in the notes to the financial statements. ### Accounting Alternatives ##### [350-20-05-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:2136ee122c5f8c15a95440647e41f371b5b9154152f44b22d3e19d16f0713227 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Accounting Alternatives Subsections of this Subtopic provide guidance for the following: 1. a An entity within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elects the accounting alternative for amortizing goodwill. If elected, this accounting alternative allows an eligible entity to amortize goodwill and test that goodwill for impairment upon a triggering event. 2. b An entity within the scope of paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A) that elects the accounting alternative for a goodwill impairment triggering event evaluation. If elected, this accounting alternative allows an eligible entity to evaluate goodwill impairment triggering events only as of the end of each reporting period. ##### [350-20-05-5A](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:919303b05d7c2a216d783b2d98fd4c119c45fc323270488ccd3dd66483838bab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting alternatives guidance can be found in the following paragraphs: 1. a Scope and Scope Exceptions—paragraphs [350-20-15-4 through 15-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) 2. b Subsequent Measurement—paragraphs [350-20-35-62 through 35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62) 3. c Derecognition—paragraphs [350-20-40-8 through 40-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8) 4. d Other Presentation Matters—paragraphs [350-20-45-4 through 45-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4) 5. e Disclosure—paragraphs [350-20-50-3A through 50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3A) 6. f Implementation Guidance and Illustrations—paragraphs [350-20-55-26 through 55-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26) . ##### [350-20-05-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:43.503Z to 2026-09-10T00:00:43.503Z Record version: sha256:6a8017fcec9a9d73e1bb83c09ffe360be8c02d6d49e8f2a38940622b7e6dc9de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity should continue to follow the applicable requirements in Topic 350 for other accounting and reporting matters related to goodwill that are not addressed in the Accounting Alternatives Subsections of this Subtopic. Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:9bc961ffae82944a6f0daca96779811fb6af45ced9c609c4ede48eca9b2b7e62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-20-15-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:1a06a15d2d7cec8d6c87dc7301b8266ae33e2e5aec6e1268cd33a5577ecbd18f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 350-10-15, with specific transaction qualifications noted below. #### Transactions ##### [350-20-15-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:1afd9b109a7e4b8a2503c81f1c1da93a07e88c0854b2536503a3f2bc3801b6bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the following transactions and activities: 1. a [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.") that an entity recognizes in accordance with Subtopic 805-30, Subtopic 805-60, or Subtopic 958-805 after it has been initially recognized and measured 2. b The costs of internally developing goodwill and other unidentifiable intangible assets with indeterminate lives 3. c [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 4. d Amounts recognized as goodwill in applying the equity method of accounting and to the excess reorganization value recognized by entities that adopt fresh-start reporting in accordance with Topic 852. 5. e [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [350-20-15-2A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:64cd6ef2a58b73f5f2ef949ebaf850e382fb31383d4874c8d96d2604c8c14603 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-07](https://asc.understandingaccounting.org/updates/asu-2010-07/). ##### [350-20-15-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:9ca44b264190ee6592f7cb5817eb25ca5b6736b4e63915ddff86a99354f016a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although goodwill is an intangible asset, the term _intangible asset_ is used in this Subtopic to refer to an intangible asset other than goodwill. ##### [350-20-15-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:6ff16504c0d91f06a7fc3f4854c5f9d5c1de33f17a43f0039d056195252006da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [350-20-15-4 through 15-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) , [350-20-35-62 through 35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62) , [350-20-40-8 through 40-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8) , [350-20-45-4 through 45-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4) ,[350-20-50-3A through 50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3A) , [350-20-55-26 through 55-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26) , and [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) provide guidance for an entity electing the accounting alternatives in this Subtopic. See paragraphs [350-20-65-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2) and [350-20-65-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-4)for transition guidance for private companies and not-for-profit entities on applying the accounting alternatives in Subtopic 350-20. ### Accounting Alternatives ##### [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:0a5953103bcd4cb4e59c89fe6cbe9a99e99e8d0df8f72fc0eeca78b148a8001e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [private company](https://asc.understandingaccounting.org/glossary/p/#private-company "An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the scope of Topics 960 through 965 on plan accounting.")or [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.")may make an accounting policy election to apply the accounting alternative for amortizing goodwill in this Subtopic. The guidance in the Accounting Alternatives Subsections of this Subtopic applies to the following transactions or activities: 1. a [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.") that an entity recognizes in a business combination in accordance with Subtopic 805-30, in 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.") in accordance with Subtopic 958-805, or in 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 in accordance with Subtopic 805-60after it has been initially recognized and measured 2. b Amounts recognized as goodwill in applying the equity method of accounting in accordance with Topic 323 on investments—equity method and joint ventures, and to the excess reorganization value recognized by entities that adopt fresh-start reporting in accordance with Topic 852 on reorganizations. ##### [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:6caabcdb7f10c4085a544dfbd91b76b14931db53e877cbed8eca3dd196cd7c3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A private company or not-for-profit entity may make an accounting policy election to apply the accounting alternative for a goodwill impairment triggering event evaluation to goodwill subsequently accounted for in accordance with Subtopic 350-20. ##### [350-20-15-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:06bd4def962253ef40e9861c5577d2fc9641b6844997c3491061ac59b3910620 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) or paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A) that elects the accounting alternative for amortizing goodwill or the accounting alternative for goodwill impairment triggering event evaluation shall apply all of the related subsequent measurement, derecognition, other presentation matters, and disclosure requirements upon election. An accounting alternative, once elected, shall be applied to existing goodwill and to all additions to goodwill recognized in future transactions within the scope of that accounting alternative. ##### [350-20-15-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:46.644Z to 2026-09-10T00:00:46.644Z Record version: sha256:16f6bdcf65e58f085911bba1c4f5d2c6dc9004b2aaa9b9a83ee9305b10e4fbe3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that elects either of the accounting alternatives in this Subtopic is not required to elect or precluded from electing the other alternative. Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z Record version: sha256:58aa00208180de5bd246451a9ba01dee098938f6d05d93ec76103cce2a9daa64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/20/#25-recognition) SEC content: no ##### [350-20-25-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z Record version: sha256:4dbda9c3bee805389c4b29d727bb7a1df8a009e34402c80baf4ab55c993d9110 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 805-30 for guidance on recognition at acquisition of [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.") acquired in a business combination. See Subtopic 958-805 for guidance on recognition at acquisition of goodwill acquired in 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."). See Subtopic 805-60 for guidance on recognition of goodwill by 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.") upon formation. ##### [350-20-25-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z Record version: sha256:c76f14276a10a43d24cfd078d1b7e5d9f65cfa6237a7e24bf7f5bfc11bb1f1ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The excess reorganization value recognized by entities that adopt fresh-start reporting in accordance with Topic 852 shall be reported as goodwill and accounted for in the same manner as goodwill. ##### [350-20-25-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:51.479Z to 2026-09-10T00:00:51.479Z Record version: sha256:30defd01df17c3680fe61a10cac53c1cde18129906927856f3e9064f609309d4 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.)") (including goodwill) that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business and related to an entity as a whole, shall be recognized as an expense when incurred. Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:7dc68c5a1fe42f691b878948cc27f94e4c74a6f94837deb0ad01463080f6fdf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/20/#35-subsequent-measurement) SEC content: no #### Overall Accounting for Goodwill ##### [350-20-35-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d67fb412952a31da9a85d02304aefc75a32079d846b1f5d92579cc90bf52c363 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") shall not be amortized. Instead, goodwill shall be tested at least annually for impairment at a level of reporting referred to as a [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component)."). (Paragraphs [350-20-35-33 through 35-46](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) provide guidance on determining reporting units.) ##### [350-20-35-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a2a2fae1d6d73f0c180cad08f093d0a9eadebad31affbb0343db9fbbc2af0d9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. However, an entity shall consider the related income tax effect from any tax deductible goodwill, if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss. ##### [350-20-35-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:af07d69ea271bf2e61b646fa39eb388af410be093f509c3f8ce8739ce7d5033c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may first assess qualitative factors, as described in paragraphs [350-20-35-3A through 35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A) , to determine whether it is necessary to perform the quantitative goodwill impairment test discussed in paragraphs [350-20-35-4 through 35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4) . If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any). #### Recognition and Measurement of an Impairment Loss ##### [350-20-35-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:618cecd5dab9b61485117628a8ddd8e9aaa09b696712069bb243866f0b5514fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. ##### [350-20-35-3B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3B) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f6f6c9059735663f5b86768e3dec9c77a4c9b51337026b2c821807907f10c0fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity has an unconditional option to bypass the qualitative assessment described in the preceding paragraph for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. ##### [350-20-35-3C](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:e0ef6836a37c3e6bec934535374b518a9b0f5fae9059f36f6e2a321947cc6e26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an entity shall assess relevant events and circumstances. Examples of such events and circumstances include the following: 1. a Macroeconomic conditions such as a deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets 2. b Industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (consider in both absolute terms and relative to peers), a change in the market for an entity's products or services, or a regulatory or political development 3. c Cost factors such as increases in raw materials, labor, or other costs that have a negative effect on earnings and cash flows 4. d Overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods 5. e Other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation 6. f Events affecting a reporting unit such as a change in the composition or carrying amount of its net assets, a more-likely-than-not expectation of selling or disposing of all, or a portion, of a reporting unit, the testing for recoverability of a significant asset group within a reporting unit, or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit 7. g If applicable, a sustained decrease in share price (consider in both absolute terms and relative to peers). ##### [350-20-35-3D](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3D) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a80321b19fce3a330079c728196b1b4983e3344d0dddae38ed07c8b04c9679af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in the preceding paragraph, an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary. ##### [350-20-35-3E](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3E) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:75fa296cd79507f4acb95b40bc80bd7b0e1f1c748c7956b0dffadc2fadc8ca5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity shall perform the quantitative goodwill impairment test. ##### [350-20-35-3F](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3F) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a3b047faeb4374d576deaa96d68e3df1eec5d79acdea60e505a068cfc69805bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The examples included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are not all-inclusive, and an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of a reporting unit in determining whether to perform the quantitative goodwill impairment test. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the comparison of a reporting unit's fair value with its carrying amount. An entity should place more weight on the events and circumstances that most affect a reporting unit's fair value or the carrying amount of its net assets. An entity also should consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity has a recent fair value calculation for a reporting unit, it also should include as a factor in its consideration the difference between the fair value and the carrying amount in reaching its conclusion about whether to perform the quantitative goodwill impairment test. ##### [350-20-35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3G) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a671a85fdde5b942a2ce8f9b47bb23c7f7b9944800eefb1b3b0239c644a5d14a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. None of the individual examples of events and circumstances included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are intended to represent standalone events or circumstances that necessarily require an entity to perform the quantitative goodwill impairment test. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative goodwill impairment test. ##### [350-20-35-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:495810ea7c332a7eb61bccf716982914e3d70b89b242d7670360784f0ef65466 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The quantitative goodwill impairment test, used to identify both the existence of impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. ##### [350-20-35-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ba08554d3683b6a0e545b33b301f9333f02df00e20f5fb56caf92e52102be0f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [350-20-35-22 through 35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) shall be considered in determining the fair value of a reporting unit. ##### [350-20-35-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:4346a4d1ed8a13f69b3e384e5185e3c16edff527813f28aae7f28534b675e24e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. ##### [350-20-35-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:84e7f19c91bef062e0f172fab18a4df3eefb4a66fd6f8f9b8bc12a991585891d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining the carrying amount of a reporting unit, deferred income taxes shall be included in the carrying amount of the reporting unit, regardless of whether the fair value of the reporting unit will be determined assuming it would be bought or sold in a taxable or nontaxable transaction. ##### [350-20-35-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:8ec791b3e906ebe8f46bba3e3306cf97d6387e1fe8e5caf805a4d0e2ca9bffa6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Additionally, an entity shall consider the income tax effect from any tax deductible goodwill on the carrying amount of the reporting unit, if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss. ##### [350-20-35-8A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f6e43afe36486975d5173eaafbd86f2cbd0a12235b32067fb0fb65a18ad5aba8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c54ec27925a1de4c75d3ee9344bbbf839704726f533b73163e6abd4f99731b94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting unit has tax deductible goodwill, recognizing a goodwill impairment loss may cause a change in deferred taxes that results in the carrying amount of the reporting unit immediately exceeding its fair value upon recognition of the loss. In those circumstances, the entity shall calculate the impairment loss and associated deferred tax effect in a manner similar to that used in a business combination in accordance with the guidance in paragraphs [805-740-55-9 through 55-13](https://asc.understandingaccounting.org/asc/740/805/#740-805-55-9) . The total loss recognized shall not exceed the total amount of goodwill allocated to the reporting unit. See Example 2A in paragraphs [350-20-55-23A through 55-23C](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A) for an illustration of the calculation. ##### [350-20-35-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:fd6ee29b4f14ec57926a135fa82f0cc07625e0517b2a3e9dd7e614425ead4106 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-10](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:df5748cc95c6d56bdb5cd0e8ebf698f64cc7c5a328a872dbd7cdc7cbee55cd6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-11](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:fbbe61442f5e50a7fc8d29cc4242daeb7ea7581cde721b605a92adbee948e61d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-12](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ecb295ac9c14a34ca8559ba365195da85f414c93a4dd987484eb676aa7a443c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis. ##### [350-20-35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:b6808a4d79a84789ead9943071f2ddb388ab7f479b16050bf4659fffc2d38c44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent reversal of a previously recognized goodwill impairment loss is prohibited once the measurement of that loss is recognized. ##### [350-20-35-14](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:04402106d768b0dd8c4a29645e8f3f2058568c8ff5496bc046d07cee2abb3d5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-15](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:4061f3db5926371698fe05118dde6c13f9713b9243fc7a71ea2799abc29e22b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-16](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d3d08d6da50780045b630d2e7fb204c8ebe65c5efbf025762d0ba2d88b424fe3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-17](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a62e838264bf6b85cd26e12a97a2d600f5eec356b14caed0a6925d4fdaa35b8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-18](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a61a478a76cce1bcd199c70706813edcc3607d24ca72fb21b31d264a15804124 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-19](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:e82bb377351b2574060d476f7d73b6b56b7a2b6496427c26cc9b2bf9caf15c80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-20](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6c45693259143d6d1852d53a0295f39e58b1adcd33ad6ec51fc4bf581c64d780 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-35-21](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d1787fce41f85ee50ed899eabc06ee3f1479e7433cfae61874f42f4bd8d2c2ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). #### Determining the Fair Value of a Reporting Unit ##### [350-20-35-22](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:32fb0cc6747e8f8b00c163940fb29efdecc087b2b847d1fd2e6cfa313dfe9188 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. Quoted market prices in active markets are the best evidence of fair value and shall be used as the basis for the measurement, if available. However, the market price of an individual equity security (and thus the market capitalization of a reporting unit with publicly traded equity securities) may not be representative of the fair value of the reporting unit as a whole. ##### [350-20-35-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:300b121e52208ed9d2badb8cce11af689f8a199904c14632063645d36ae3afa7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Substantial value may arise from the ability to take advantage of synergies and other benefits that flow from control over another entity. Consequently, measuring the fair value of a collection of assets and liabilities that operate together in a controlled entity is different from measuring the fair value of that entity's individual equity securities. An acquiring entity often is willing to pay more for equity securities that give it a controlling interest than an investor would pay for a number of equity securities representing less than a controlling interest. That control premium may cause the fair value of a reporting unit to exceed its market capitalization. The quoted market price of an individual equity security, therefore, need not be the sole measurement basis of the fair value of a reporting unit. ##### [350-20-35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:01915ee8e019f08a828022b7b1f5f76888bb860e978e0ff5fd369b58fb6b0a8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In estimating the fair value of a reporting unit, a valuation technique based on multiples of earnings or revenue or a similar performance measure may be used if that technique is consistent with the objective of measuring fair value. Use of multiples of earnings or revenue in determining the fair value of a reporting unit may be appropriate, for example, when the fair value of an entity that has comparable operations and economic characteristics is observable and the relevant multiples of the comparable entity are known. Conversely, use of multiples would not be appropriate in situations in which the operations or activities of an entity for which the multiples are known are not of a comparable nature, scope, or size as the reporting unit for which fair value is being estimated. ##### [350-20-35-25](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6e53b024a30fa39f11c5e6ff049b9e97825ad52111fda9f86087f14d3df496c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Before estimating the fair value of a reporting unit, an entity shall determine whether that estimation should be based on an assumption that the reporting unit could be bought or sold in a nontaxable transaction or a taxable transaction. Making that determination is a matter of judgment that depends on the relevant facts and circumstances and must be evaluated carefully on a case-by-case basis (see Example 1 \[paragraphs [350-20-55-10 through 55-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-10) \]). ##### [350-20-35-26](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c0e03f8011c2db8dab1720b33bd0ac4168ae31db54bce74d1f299ae4ce6dc6dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In making that determination, an entity shall consider all of the following: 1. a Whether the assumption is consistent with those that marketplace participants would incorporate into their estimates of fair value 2. b The feasibility of the assumed structure 3. c Whether the assumed structure results in the highest and best use and would provide maximum value to the seller for the reporting unit, including consideration of related tax implications. ##### [350-20-35-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:5277fc44c17beb2f9224d6889e0fee815e5d8cc119e4ddd76521bd020e390e6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining the feasibility of a nontaxable transaction, an entity shall consider, among other factors, both of the following: 1. a Whether the reporting unit could be sold in a nontaxable transaction 2. b Whether there are any income tax laws and regulations or other corporate governance requirements that could limit an entity's ability to treat a sale of the unit as a nontaxable transaction. #### When to Test Goodwill for Impairment ##### [350-20-35-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:14c4638223bef91bb164ac477f30ef38424f1efd39c52985f0d1f44e7a9d72c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill of a reporting unit shall be tested for impairment on an annual basis and between annual tests in certain circumstances (see paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30)). The annual goodwill impairment test may be performed any time during the fiscal year provided the test is performed at the same time every year. Different reporting units may be tested for impairment at different times. ##### [350-20-35-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:9ce668d078e4a6fe96079cd24a0792c3590dcf4e5ae74efcb08647d2bbbcac0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). ##### [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:640783555f53af230e1b43e3528dd06c7464d46e0ba56140ea7a24d4bdff1a73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill of a reporting unit shall be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C)includes examples of such events and circumstances. Paragraphs [350-20-35-3F through 35-3G](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3F) describe the process for making these evaluations. 1. a [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 5. e [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 6. f [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). 7. g [Subparagraph superseded by Accounting Standards Update No. 2011-08](https://asc.understandingaccounting.org/updates/asu-2011-08/). ##### [350-20-35-31](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:371f2bd3661aefa1883392d3107aaef0fe4d12f6edf1a172af5bd6bc567165aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If goodwill and another asset (or asset group) of a reporting unit are tested for impairment at the same time, the other asset (or asset group) shall be tested for impairment before goodwill. For example, if a significant asset group is to be tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 (thus potentially requiring a goodwill impairment test), the impairment test for the significant asset group would be performed before the goodwill impairment test. If the asset group was impaired, the impairment loss would be recognized prior to goodwill being tested for impairment. ##### [350-20-35-32](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a13c539a5196cc0dfb3ec16805d5b964a97cb866b53f9a2495d82b20f15b62a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This requirement applies to all assets that are tested for impairment, not just those included in the scope of the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Reporting Unit ##### [350-20-35-33](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c4c66bfa8b0bf851cc18c3092d82cafbada6a8c5b3d8b32bf4a4e68b26ef1adf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The provisions of Topic 280 shall be used to determine the [reporting units](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") of an entity. ##### [350-20-35-34](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:95bd365880d3078b954cc720713d37337d07b9959028b41fcce05b50403503cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A component of an [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment.") is a reporting unit if the component constitutes a business or a [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.") for which discrete financial information is available and segment management, as that term is defined in paragraph [280-10-50-7](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-7), regularly reviews the operating results of that component. Subtopic 805-10 includes guidance on determining whether an asset group constitutes a business. Throughout the remainder of this Section, the term _business_ also includes a _nonprofit activity_. ##### [350-20-35-35](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:89a7b0f8b2e578669742ee47dcaea50f5c79f39e05e06d507d8730d3cd4903c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, two or more components of an operating segment shall be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) shall be considered in determining if the components of an operating segment have similar economic characteristics. ##### [350-20-35-36](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:7a67701996cefa45545c02fc53484fc471b5c5d444e546bc66334fe17432df6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An operating segment shall be deemed to be a reporting unit if all of its components are similar, if none of its components is a reporting unit, or if it comprises only a single component. ##### [350-20-35-37](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-37) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:47ab8cd31da5919e8ecabc13c514d03b99078e8251092b59cfa106b70a6351ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Reporting units will vary depending on the level at which performance of the segment is reviewed, how many businesses the operating segment includes, and the similarity of those businesses. In other words, a reporting unit could be the same as an operating segment, which could be the same as a reportable segment, which could be the same as the entity as a whole (entity level). ##### [350-20-35-38](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-38) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:93d9b04ce265086a1314c0452e088dd4eeab4e55e4e73da9ce098d59eb92caf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that is not required to report segment information in accordance with Topic 280 is nonetheless required to test goodwill for impairment at the reporting unit level. That entity shall use the guidance in paragraphs [280-10-50-1 through 50-9](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) to determine its operating segments for purposes of determining its reporting units. #### Assigning Acquired Assets and Assumed Liabilities to a Reporting Unit ##### [350-20-35-39](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1cf76eef7f21cccebda2f5b44713fa4a7a3141a58d23186f2c49cc5506c8ad1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the purpose of testing goodwill for impairment, acquired assets and assumed liabilities shall be assigned to a reporting unit as of the acquisition date if both of the following criteria are met: 1. a The asset will be employed in or the liability relates to the operations of a reporting unit. 2. b The asset or liability will be considered in determining the fair value of the reporting unit. Assets or liabilities that an entity considers part of its corporate assets or liabilities shall also be assigned to a reporting unit if both of the preceding criteria are met. Examples of corporate items that may meet those criteria and therefore would be assigned to a reporting unit are environmental liabilities that relate to an existing operating facility of the reporting unit and a pension obligation that would be included in the determination of the fair value of the reporting unit. This provision applies to assets acquired and liabilities assumed in a business combination and to those acquired or assumed individually or with a group of other assets. ##### [350-20-35-39A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:bfa10124647cb352cf49088d8ae4c7bf6a07937c1d288ada38ed9471e490dc21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Foreign currency translation adjustments should not be allocated to a reporting unit from an entity's accumulated other comprehensive income. The reporting unit's carrying amount should include only the currently translated balances of the assets and liabilities assigned to the reporting unit. ##### [350-20-35-40](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-40) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:9efed1920275397f15da134f8ff1ebc9ac0a9876546f259917aec0d3b5d8300c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some assets or liabilities may be employed in or relate to the operations of multiple reporting units. The methodology used to determine the amount of those assets or liabilities to assign to a reporting unit shall be reasonable and supportable and shall be applied in a consistent manner. For example, assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, could be assigned according to the benefit received by the different reporting units (or based on the relative fair values of the different reporting units). In the case of pension items, for example, a pro rata assignment based on payroll expense might be used. A reasonable allocation method may be very general. For use in making those assignments, the basis for and method of determining the fair value of the acquiree and other related factors (such as the underlying reasons for the acquisition and management's expectations related to dilution, synergies, and other financial measurements) shall be documented at the acquisition date. #### Assigning Goodwill to Reporting Units ##### [350-20-35-41](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-41) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:612d8d0e07325c7da4c8b4c4eed8ddf5d5721442fa72b39ebb50e7d955c553db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the purpose of testing goodwill for impairment, all goodwill acquired in a business combination or recognized by 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.") upon formation shall be assigned to one or more reporting units as of the acquisition date or the joint venture [formation date](https://asc.understandingaccounting.org/glossary/f/#formation-date "The formation date of a joint venture is the date on which an entity initially meets the definition of a joint venture, which is not necessarily the legal entity formation date. The formation date is the measurement date for the formation transaction. If multiple arrangements are accounted for as a single transaction that establishes the formation of a joint venture, the formation date is the measurement date for all arrangements that form part of the single formation transaction."). Goodwill shall be assigned to reporting units of the acquiring entity that are expected to benefit from the synergies of the combination even though other assets or liabilities of the acquired entity may not be assigned to that reporting unit. The total amount of acquired goodwill may be divided among a number of reporting units. The methodology used to determine the amount of goodwill to assign to a reporting unit shall be reasonable and supportable and shall be applied in a consistent manner. In addition, that methodology shall be consistent with the objectives of the process of assigning goodwill to reporting units described in paragraphs [350-20-35-42 through 35-43](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-42) . ##### [350-20-35-42](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-42) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1eabb06a50907415c977f8efa5df91f0372695c0e86e87a16e0948d4400f5aff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In concept, the amount of goodwill assigned to a reporting unit would be determined in a manner similar to how the amount of goodwill recognized in a business combination is determined. That is: 1. a An entity would determine the fair value of the acquired business (or portion thereof) to be included in a reporting unit—the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit. Subtopic 805-20 provides guidance on assigning the fair value of the acquiree to the assets acquired and liabilities assumed in a business combination. 2. b Any excess of the fair value of the acquired business (or portion thereof) over the fair value of the individual assets acquired and liabilities assumed that are assigned to the reporting unit is the amount of goodwill assigned to that reporting unit. 3. c [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [350-20-35-43](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-43) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:0fcff861dc8e3b9c56c5ea8288af1b86618ca4a3d77fd23186ccebb573505165 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If goodwill is to be assigned to a reporting unit that has not been assigned any of the assets acquired or liabilities assumed in that acquisition, the amount of goodwill to be assigned to that unit might be determined by applying a with-and-without computation. That is, the difference between the fair value of that reporting unit before the acquisition and its fair value after the acquisition represents the amount of goodwill to be assigned to that reporting unit. ##### [350-20-35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-44) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:04b02f766ac71e77577c34b4a82f76c5b5c00543b6b03eec94b153e72ce6a8ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not require that goodwill and all other related assets and liabilities assigned to reporting units for purposes of testing goodwill for impairment be reflected in the entity's reported segments. However, even though an asset may not be included in reported segment assets, the asset (or liability) shall be allocated to a reporting unit for purposes of testing for impairment if it meets the criteria in paragraph [350-20-35-39](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39). #### Reorganization of Reporting Structure ##### [350-20-35-45](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-45) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6050831f9a67ed94e0e3c30250c234eaf1f749849782f2572d6322be42ad4343 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity reorganizes its reporting structure in a manner that changes the composition of one or more of its reporting units, the guidance in paragraphs [350-20-35-39 through 35-40](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39) shall be used to reassign assets and liabilities to the reporting units affected. However, goodwill shall be reassigned to the reporting units affected using a relative fair value allocation approach similar to that used when a portion of a reporting unit is to be disposed of (see paragraphs [350-20-40-1 through 40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1) ). ##### [350-20-35-46](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-46) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:904e7d9ddbef5a7b49054ef9e2ad765d0d73d09fc933d120f20d53435797d20f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if existing reporting unit A is to be integrated with reporting units B, C, and D, goodwill in reporting unit A would be assigned to units B, C, and D based on the relative fair values of the three portions of reporting unit A prior to those portions being integrated with reporting units B, C, and D. ##### [350-20-35-47](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-47) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:2c62827c77b7dd64548631685023b0f2bbf43915157a6082cb6e4cf5f1ecc6c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsidiary goodwill might arise from any of the following: 1. a Acquisitions that a subsidiary made prior to its being acquired by the parent 2. b Acquisitions that a subsidiary made subsequent to its being acquired by the parent 3. c Goodwill arising from the business combination in which a subsidiary was acquired that the parent pushed down to the subsidiary's financial statements. ##### [350-20-35-48](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-48) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:68d573211c88e71028aec79519f95d75692599e4fd990c4dafdc5ceb56797aeb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All goodwill recognized by a public or nonpublic subsidiary (subsidiary goodwill) in its separate financial statements that are prepared in accordance with generally accepted accounting principles (GAAP) shall be accounted for in accordance with this Subtopic. Subsidiary goodwill shall be tested for impairment at the subsidiary level using the subsidiary's reporting units. If a goodwill impairment loss is recognized at the subsidiary level, goodwill of the reporting unit or units (at the higher consolidated level) in which the subsidiary's reporting unit with impaired goodwill resides must be tested for impairment if the event that gave rise to the loss at the subsidiary level would more likely than not reduce the fair value of the reporting unit (at the higher consolidated level) below its carrying amount (see paragraph [350-20-35-3C(f)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C)). Only if goodwill of that higher-level reporting unit is impaired would a goodwill impairment loss be recognized at the consolidated level. ##### [350-20-35-49](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-49) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:afd3664ad2e8de30abd61088c48e6929f612752c5ec283e262c0596909411a2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If testing at the consolidated level leads to an impairment loss, that loss shall be recognized at that level separately from the subsidiary's loss. ##### [350-20-35-50](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-50) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:724dbc5dd2d0a74a523b0de5e861f50c5e46310d4a239b477090ff7e6b885b6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [350-20-35-51](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-51) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f2e3b36652605dc9567e3c5bef8b3b575b29d4c308dcae51dd9ba6eda0a519af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [350-20-40-1 through 40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1) for guidance on disposal of all or a portion of a reporting unit. ##### [350-20-35-52](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-52) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1daa31ae27a2ea429f2bcb4ca361ff713251d53239efe7acc74a13719d9d1167 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 350-20-35-52 through 35-57 superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-52). ##### [350-20-35-57A](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57A) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:38be6f1c511736d68db7f8a5d49c4d36c076e126fd6712205cee0d24ff9a2d46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting unit is less than wholly owned, the fair value of the reporting unit as a whole shall be determined in accordance with paragraphs [350-20-35-22 through 35-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) , including any portion attributed to the noncontrolling interest. Any impairment loss measured in the goodwill impairment test shall be attributed to the parent and the [noncontrolling interest](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest.") on a rational basis. If the reporting unit includes only goodwill attributable to the parent, the goodwill impairment loss would be attributed entirely to the parent. However, if the reporting unit includes goodwill attributable to both the parent and the noncontrolling interest, the goodwill impairment loss shall be attributed to both the parent and the noncontrolling interest. ##### [350-20-35-57B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-57B) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:068ca4d936230853914d39c8fb1bf56ebdb7e430bac4cfddc87f67a92d1bb852 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If all or a portion of a less-than-wholly-owned reporting unit is disposed of, the gain or loss on disposal shall be attributed to the parent and the noncontrolling interest. ##### [350-20-35-58](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-58) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:8efbf55c316a28f47f81038f67ee6b1bb678c0048c7b280cc4c78c1b81d7165d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) (equity method goodwill) shall not be amortized. ##### [350-20-35-59](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-59) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ac456fb5c33c54f01b0024b09bb90b4d47a168b76b55bc8cc6e6c4d296898607 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, equity method goodwill shall not be reviewed for impairment in accordance with this Subtopic. Equity method investments shall continue to be reviewed for impairment in accordance with paragraph [323-10-35-32](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-32). ##### [350-20-35-60](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-60) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:858dc3669718c907275f7e3493edde93673eaabdda5b2c6b2b63386dc456ee33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-02](https://asc.understandingaccounting.org/updates/asu-2014-02/). #### Deferred Income Taxes ##### [350-20-35-61](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-61) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:7cbc6e2ec68b2bb0746c58681471bf57ba49c33063632bfe8e43e219aef71c61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [805-740-25-3 through 25-4](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-3) states that deferred income taxes are not recognized for any portion of goodwill for which amortization is not deductible for income tax purposes. For guidance on recognition of deferred income taxes related to goodwill when amortization of goodwill is deductible for tax purposes, see paragraphs [805-740-25-6 through 25-9](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-6) . ### Accounting Alternatives #### Accounting Alternative for Amortizing Goodwill ##### [350-20-35-62](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-62) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:f81d531ea429896ecdf8a5664a71595529ed3a177be062da3871d08a9392b488 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance for [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.") applies to entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elect the accounting alternative for amortizing goodwill. ##### [350-20-35-63](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-63) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:727265820422d79700a0abb11e61038d24b6e8da19a6bd8be9e1d15a19c2d739 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill relating to each [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity."), [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."), [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, or reorganization event resulting in fresh-start reporting (amortizable unit of goodwill) shall be amortized on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. ##### [350-20-35-64](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-64) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:3b60f0485feb95f581f1a84cca0db58d2a4968c802bc9c0170fd3f4cf9f82190 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may revise the remaining useful life of goodwill upon the occurrence of events and changes in circumstances that warrant a revision to the remaining period of amortization. However, the cumulative amortization period for any amortizable unit of goodwill cannot exceed 10 years. If the estimate of the remaining useful life of goodwill is revised, the remaining carrying amount of goodwill shall be amortized prospectively on a straight-line basis over that revised remaining useful life. ##### [350-20-35-65](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-65) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:de511022f6091adb64de155c9ea262ab7cfac0368daf7c19c60911efbc24f5a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon adoption of this accounting alternative, an entity shall make an accounting policy election to test goodwill for impairment at the entity level or the [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") level. An entity that elects to perform its impairment tests at the reporting unit level shall refer to paragraphs [350-20-35-33 through 35-38](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) and paragraphs [350-20-55-1 through 55-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-1) to determine the reporting units of an entity. ##### [350-20-35-66](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-66) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:c68580298e04febcb897aa1405055b20cc3f572669a72ef0ffdc3d46dd6f5d0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill of an entity (or a reporting unit) shall be tested for impairment if an event occurs or circumstances change that indicate that the fair value of the entity (or the reporting unit) may be below its carrying amount (a triggering event). Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) includes examples of those events or circumstances. Those examples are not all-inclusive, and an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of the entity (or of a reporting unit) in determining whether to perform the goodwill impairment test. For those entities that have elected the accounting alternative for a goodwill impairment triggering event evaluation in paragraph [350-20-35-84](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-84), a goodwill triggering event evaluation shall be performed only as of the end of each reporting period. If an entity determines that there are no triggering events, then further testing is unnecessary. ##### [350-20-35-67](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:82e4da0a7a802d51ac520c19de4ce02348a56d24b4f7397f4368f71728f4863a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon the occurrence of a triggering event, an entity may assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the entity (or the reporting unit) is less than its carrying amount, including goodwill. Paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) includes examples of those qualitative factors. ##### [350-20-35-68](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-68) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:4031031b742fe7c8c5cbb927216ff714d358ba9bed7a7db3cea99887ee141a94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the examples included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are not all-inclusive, an entity shall consider other relevant events and circumstances that affect the fair value or carrying amount of the entity (or of the reporting unit) in determining whether to perform the quantitative goodwill impairment test. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the comparison of its fair value with its carrying amount (or of the reporting unit's fair value with the reporting unit's carrying amount). An entity should place more weight on the events and circumstances that most affect its fair value or the carrying amount of its net assets (or the reporting unit's fair value or the carrying amount of the reporting unit's net assets). An entity also should consider positive and mitigating events and circumstances that may affect its determination of whether it is more likely than not that its fair value is less than its carrying amount (or the fair value of the reporting unit is less than the carrying amount of the reporting unit). If an entity has a recent fair value calculation (or recent fair value calculation for the reporting unit), it also should include that calculation as a factor in its consideration of the difference between the fair value and the carrying amount in reaching its conclusion about whether to perform the quantitative goodwill impairment test. ##### [350-20-35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-69) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:36dca88e15243b771a675fdf9725495d63620b0704eb9148da57863efedeb3c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate, on the basis of the weight of evidence, the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount. None of the individual examples of events and circumstances included in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C) are intended to represent standalone events or circumstances that necessarily require an entity to perform the quantitative goodwill impairment test. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative goodwill impairment test. ##### [350-20-35-70](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-70) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:2d70ee1e03c7ef6bfb755a19f7a31502fa1f3a67b3398faf2197f0b41131d45a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity has an unconditional option to bypass the qualitative assessment described in paragraphs [350-20-35-67 through 35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67) and proceed directly to a quantitative calculation by comparing the entity's (or the reporting unit's) fair value with its carrying amount (see paragraphs [350-20-35-72 through 35-78](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-72) ). An entity may resume performing the qualitative assessment upon the occurrence of any subsequent triggering events. ##### [350-20-35-71](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-71) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:809c5029005084fbbbdbd2bcb1209f7862198ef1b7b82e08c430a0e800df7bac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is not more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount, further testing is unnecessary. ##### [350-20-35-72](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-72) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:716174a6462a3b1eeef8fba0f9035450c881120efb2c710d0ee473051eee64f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after assessing the totality of events or circumstances such as those described in paragraph [350-20-35-3C(a) through (g)](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3C), an entity determines that it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount or if the entity elected to bypass the qualitative assessment in paragraphs [350-20-35-67 through 35-69](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-67) , the entity shall determine the fair value of the entity (or the reporting unit) and compare the fair value of the entity (or the reporting unit) with its carrying amount, including goodwill. A goodwill impairment loss shall be recognized if the carrying amount of the entity (or the reporting unit) exceeds its fair value. ##### [350-20-35-73](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-73) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:b8c46a9d29a66f4675f31ba930208dad9c0671edcd7500df15fa7bf3626d5e6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A goodwill impairment loss, if any, shall be measured as the amount by which the carrying amount of an entity (or a reporting unit) including goodwill exceeds its fair value, limited to the total amount of goodwill of the entity (or allocated to the reporting unit). Additionally, an entity shall consider the income tax effect from any tax deductible goodwill on the carrying amount of the entity (or the reporting unit), if applicable, in accordance with paragraph [350-20-35-8B](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-8B) when measuring the goodwill impairment loss. See Example 2A in paragraph [350-20-55-23A](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A) for an illustration. ##### [350-20-35-74](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-74) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:b0ee16c7304a231cbe59f98cf4f2c7773ec7311c46914346f3c192617f17c884 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [350-20-35-22 through 35-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-22) shall be considered in determining the fair value of the entity (or the reporting unit). ##### [350-20-35-75](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-75) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:6ae270665db26204f296af2eedff019271b6996ec2cfcbcbc74b8d05b2a4bdd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [350-20-35-39 through 35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39) shall be considered in assigning acquired assets (including goodwill) and assumed liabilities to the reporting unit when determining the carrying amount of a reporting unit. ##### [350-20-35-76](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-76) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:d48892dccf4f6248264f5b69d698720e3ecfb01989277508d42b790e426c7827 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For an entity subject to the requirements of Topic 740 on income taxes, when determining the carrying amount of an entity (or a reporting unit), deferred income taxes shall be included in the carrying amount of an entity (or the reporting unit), regardless of whether the fair value of the entity (or the reporting unit) will be determined assuming it would be bought or sold in a taxable or nontaxable transaction. ##### [350-20-35-77](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-77) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:e632ca9215072c2f5f16eab80ee79ecf33dea4f42e049a2829d8232927bfebdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The goodwill impairment loss, if any, shall be allocated to individual amortizable units of goodwill of the entity (or the reporting unit) on a pro rata basis using their relative carrying amounts or using another reasonable and rational basis. ##### [350-20-35-78](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-78) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:328fc41670d3ad1716b91f68cb261b2eea3f08d353067a0ea0bb3665e6ef3f60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After a goodwill impairment loss is recognized, the adjusted carrying amount of goodwill shall be its new accounting basis, which shall be amortized over the remaining useful life of goodwill. Subsequent reversal of a previously recognized goodwill impairment loss is prohibited. ##### [350-20-35-79](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-79) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:00fa7dca1df96ef5fac53af128ac5b77f5ff04f89f23e91bc066d440fefb9409 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If goodwill and another asset (or asset group) of the entity (or the reporting unit) are tested for impairment at the same time, the other asset (or asset group) shall be tested for impairment before goodwill. For example, if a significant asset group is to be tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 on property, plant, and equipment (thus potentially requiring a goodwill impairment test), the impairment test for the significant asset group would be performed before the goodwill impairment test. If the asset group is impaired, the impairment loss would be recognized prior to goodwill being tested for impairment. ##### [350-20-35-80](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-80) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:9d8e06a77845cd0e5769586eeecdca17041e1b05d00383cdbc814e4dc762be01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The requirement in the preceding paragraph applies to all assets that are tested for impairment, not just those included in the scope of the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. ##### [350-20-35-81](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-81) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:a17394371dec3c0e4a2e8ed93b6f82936f23a28daabbcf3770968d305375bfa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of the difference between the cost of an investment and the amount of underlying equity in net assets of an equity method investee that is recognized as goodwill in accordance with paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13) (equity method goodwill) shall be amortized on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. ##### [350-20-35-82](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-82) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:5e4c69eeb16cab0bc85963fb5d97ed5f87d4ac5c79cee306222f331821cacada Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, equity method goodwill shall not be reviewed for impairment in accordance with this Subtopic. Equity method investments shall continue to be reviewed for impairment in accordance with paragraph [323-10-35-32](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-32). #### Accounting Alternative for a Goodwill Impairment Triggering Event Evaluation ##### [350-20-35-83](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-83) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:1c0b4cad7079d91b30e307e3bd44c44e6a8ed1251d89b801cd83f00a2764b69a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance for [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.") applies to entities within the scope of paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A) that elect the accounting alternative for a goodwill impairment triggering event evaluation. ##### [350-20-35-84](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-84) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:ed4b400c4ac8a66d7892c1f2e2585b8c23b3a686701381b2a9492a07c22498be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may elect to perform its goodwill impairment triggering event evaluation only as of the end of each reporting period, whether the reporting period is an interim or annual period. That is, the entity would not evaluate goodwill impairment triggering events and measure any related impairment during the reporting period. An entity electing the accounting alternative shall assess whether events or circumstances have occurred that would require an entity to test goodwill for impairment as follows: 1. a For an entity that has elected the accounting alternative for amortizing goodwill, the entity's evaluation of a triggering event, as described in paragraph [350-20-35-66](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-66), shall be performed only as of each reporting date. 2. b For an entity that has not elected the accounting alternative for amortizing goodwill: 1. 1 If the entity performs its annual goodwill impairment test as of the end of the reporting period, the entity shall not evaluate its goodwill for impairment during the reporting period as described in paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30). 2. 2 If the entity performs its annual goodwill impairment test on a date other than the end of the reporting period (in accordance with paragraph [350-20-35-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-28)), the entity's evaluation of impairment between annual goodwill impairment tests (as described in paragraph [350-20-35-30](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-30)) shall be performed only as of the end of a reporting period. ##### [350-20-35-85](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-85) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:0336f1831cbd04d5ac48da94284d235976761918bc58eaebac0883876043074c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity electing this accounting alternative shall apply it only to goodwill evaluated in accordance with this Subtopic. This accounting alternative does not change the following: 1. a The requirement to assess other assets for impairment (for example, long-lived assets and indefinite-lived intangibles) under existing guidance. If the impairment test related to other assets would have resulted in a goodwill impairment triggering event, an entity electing this accounting alternative should consider the results of an impairment test related to other assets in connection with its goodwill impairment test only as of its annual goodwill impairment testing date and the reporting date, whether that date is an interim or annual reporting date, as applicable. 2. b The requirements to test the remaining goodwill for impairment if only a portion of goodwill is allocated to a business or nonprofit activity to be disposed of in accordance with paragraph [350-20-40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-7). ##### [350-20-35-86](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-86) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:53.776Z to 2026-09-10T00:00:53.776Z Record version: sha256:2c2bc09d23657ca504d3bec83fb183fc8df784002cfc4f7a9faa8fd6bfaf15dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall not apply this guidance retroactively to interim periods for which annual financial statements have already been issued. Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:d4ad681847b9dff5beb34070cd2a9ff3d0360ac76e74358efe64ba0773e0e08c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/350/20/#40-derecognition) SEC content: no #### Disposal of All or a Portion of a Reporting Unit ##### [350-20-40-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:939c706a8a91635b0441c60f487b809f0a296076a2f77c6b9450d924b05d6ea8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a reporting unit is to be disposed of in its entirety, goodwill of that reporting unit shall be included in the carrying amount of the reporting unit in determining the gain or loss on disposal. ##### [350-20-40-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:f11f5c2fef2080122f5f4eee679515820771cde60873ef13ac7c6170165cfd10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a portion of a reporting unit that constitutes a business (see Section 805-10-55) 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.")is to be disposed of, goodwill associated with that business or nonprofit activity shall be included in the carrying amount of the business or nonprofit activity in determining the gain or loss on disposal. ##### [350-20-40-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:465305fd35513e01a02cde048c0d93490332dc86610e89b09df1d7789d9d9994 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount of goodwill to be included in that carrying amount shall be based on the relative fair values of the business or nonprofit activity to be disposed of and the portion of the reporting unit that will be retained. For example, if a reporting unit with a fair value of $400 is selling a business or nonprofit activity for $100 and the fair value of the reporting unit excluding the business or nonprofit activity being sold is $300, 25 percent of the goodwill residing in the reporting unit would be included in the carrying amount of the business or nonprofit activity to be sold. ##### [350-20-40-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:6d4259aeea52ba721a91157d19169aa4010921c02d9de1e36f36a00d11e0be51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, if the business or nonprofit activity to be disposed of was never integrated into the reporting unit after its acquisition and thus the benefits of the acquired goodwill were never realized by the rest of the reporting unit, the current carrying amount of that acquired goodwill shall be included in the carrying amount of the business or nonprofit activity to be disposed of. ##### [350-20-40-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:073ff5d28997bb2756a86980b01900009a27165a3eabde27e5f5c524b8c0c4c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. That situation might occur when the acquired business or nonprofit activity is operated as a standalone entity or when the business or nonprofit activity is to be disposed of shortly after it is acquired. ##### [350-20-40-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:05766c6ae5286d019d6f061a3efe701bc71a240d610fc5ccab585af7be25a4f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Situations in which the acquired business or nonprofit activity is operated as a standalone entity are expected to be infrequent because some amount of integration generally occurs after an acquisition. ##### [350-20-40-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:93dacb57e129c1a59d614d49f61dbe7a37888328be48d1b012b05d02e084457b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When only a portion of goodwill is allocated to a business or nonprofit activity to be disposed of, the goodwill remaining in the portion of the reporting unit to be retained shall be tested for impairment in accordance with paragraphs [350-20-35-3A through 35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A) using its adjusted carrying amount. ### Accounting Alternatives ##### [350-20-40-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:d0840a4b6301c755e6148857d8a30460f034db8992f5dec3aaf77e82a4b65228 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance for [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.") applies to entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elect the accounting alternative for amortizing goodwill. #### Disposal of a Portion of an Entity (or a Reporting Unit) ##### [350-20-40-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-40-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:57.352Z to 2026-09-10T00:00:57.352Z Record version: sha256:bdece50677911f9edc472b78178051692ef25ed838ec93eb107f476580fd99c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a portion of an entity (or a [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).")) that constitutes 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.") is to be disposed of, goodwill associated with that business or nonprofit activity shall be included in the carrying amount of the business or nonprofit activity in determining the gain or loss on disposal. An entity shall use a reasonable and rational approach to determine the amount of goodwill associated with the business or nonprofit activity to be disposed of. Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:6a9f93b2c8f9114c3f3e0fcee5133e6d0cdc82195e2a97a480dd47924eaedbbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/350/20/#45-other-presentation-matters) SEC content: no ##### [350-20-45-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:4cbbeca458afeac0c8074008befada8b9b22ac0b88e53734b23476fe6a1115d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregate amount of [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.") shall be presented as a separate line item in the statement of financial position. ##### [350-20-45-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:f3fbe6d648e9545155745b894afa85a86cd07f605e9314ba89c15d927b913334 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregate amount of goodwill impairment losses shall be presented as a separate line item in the income statement before the subtotal income from continuing operations (or similar caption) unless a goodwill impairment loss is associated with a discontinued operation. ##### [350-20-45-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:d71ec4d816018d09efa0a4af777a85801008e4f5cc39f2902414371ad0b86b60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A goodwill impairment loss associated with a discontinued operation shall be included (on a net-of-tax basis) within the results of discontinued operations. For guidance on reporting discontinued operations, see Subtopic 205-20. ### Accounting Alternatives ##### [350-20-45-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:4ff05cc13e74da82585e01e256e932f32627ddd4fed8e9180b3ee9afe652c447 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance for [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.") applies to entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elect the accounting alternative for amortizing goodwill. ##### [350-20-45-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:3d326c15155bf3b516fa12e0ebd8f0ecc890d510574c021406a4a82c880b301b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregate amount of goodwill net of accumulated amortization and impairment shall be presented as a separate line item in the statement of financial position. ##### [350-20-45-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:6354e81231d84a115013098e3d2f4236399955535ac76da4b71006747d218e36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amortization and aggregate amount of impairment of goodwill shall be presented in income statement or statement of activities line items within continuing operations (or similar caption) unless the amortization or a goodwill impairment loss is associated with a discontinued operation. ##### [350-20-45-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:00:59.231Z to 2026-09-10T00:00:59.231Z Record version: sha256:227f1f44763828360b5661d6d880c7d946c975197652cec5b934db9941edfd02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amortization and impairment of goodwill associated with a discontinued operation shall be included (on a net-of-tax basis) within the results of discontinued operations. Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:1a7a1d7b8c2fede0ad959474ca652e4e8a40c783cf859c8c5534ead2b9948ab2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/350/20/#50-disclosure) SEC content: no #### Information for Each Period for Which a Statement of Financial Position Is Presented ##### [350-20-50-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:0861d7ea71cb634eff70552cc77e0e9d6aa5920c81f345fbe056328714a8743f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The changes in the carrying amount of [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.") during the period shall be disclosed, showing separately (see Example 3 \[paragraph [350-20-55-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-24)\]): 1. a The gross amount and accumulated impairment losses at the beginning of the period 2. b Additional goodwill recognized during the period, except goodwill included in a disposal group that, on acquisition, meets the criteria to be classified as held for sale in accordance with paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) 3. c Adjustments resulting from the subsequent recognition of deferred tax assets during the period in accordance with paragraphs [805-740-25-2 through 25-4](https://asc.understandingaccounting.org/asc/740/805/#740-805-25-2) and [805-740-45-2](https://asc.understandingaccounting.org/asc/740/805/#740-805-45-2) 4. d Goodwill included in a disposal group classified as held for sale in accordance with paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) and goodwill derecognized during the period without having previously been reported in a disposal group classified as held for sale 5. e Impairment losses recognized during the period in accordance with this Subtopic 6. f Net exchange differences arising during the period in accordance with Topic 830 7. g Any other changes in the carrying amounts during the period 8. h The gross amount and accumulated impairment losses at the end of the period. Entities that report segment information in accordance with Topic 280 shall provide the above information about goodwill in total and for each reportable segment and shall disclose any significant changes in the allocation of goodwill by reportable segment. If any portion of goodwill has not yet been allocated to a reporting unit at the date the financial statements are issued, that unallocated amount and the reasons for not allocating that amount shall be disclosed. ##### [350-20-50-1A](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:f89681abf552e6eea261a5cce15968b5368d00974e9b29e8361aa89aee010868 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities that have one or more reporting units with zero or negative carrying amounts of net assets shall disclose those reporting units with allocated goodwill and the amount of goodwill allocated to each and in which reportable segment the reporting unit is included. #### Goodwill Impairment Loss ##### [350-20-50-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:344329aa8cb7f04e528da132a723952531be132019aced4350db8cf99f764595 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each goodwill impairment loss recognized, all of the following information shall be disclosed in the notes to the financial statements that include the period in which the impairment loss is recognized: 1. a A description of the facts and circumstances leading to the impairment 2. b The amount of the impairment loss and the method of determining the fair value of the associated reporting unit (whether based on quoted market prices, prices of comparable businesses or nonprofit activities, a present value or other valuation technique, or a combination thereof) 3. c [Subparagraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-20-50-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:871229ebe3ed9eb6d0e30cd7a415fe031f01a7beab9520dc5d1263e703c87465 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by paragraph [820-10-50-2(bbb)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) are not required for fair value measurements related to the financial accounting and reporting for goodwill after its initial recognition in a business combination. ### Accounting Alternatives ##### [350-20-50-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:3eb4460d676f8d107243556695fc0752864d7333c3bab2263631d38913fe5cb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The information in paragraphs [350-20-50-4 through 50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4) shall be disclosed in the notes to financial statements for any entity within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4) that elects the accounting alternative for amortizing [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."). ##### [350-20-50-3B](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-3B) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:05479782039b8c60fc973a18d1d4c5dde7b03b65871c35ff13ad79e233e2450d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity within the scope of paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A) that elects the accounting alternative for a goodwill impairment triggering event evaluation shall disclose its use of the alternative as a significant accounting policy in accordance with paragraph [235-10-50-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1). #### Disclosures about Additions to Goodwill ##### [350-20-50-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:b05870ad1d8bdf9713c0737627c133b418f5278923bc80d5cf5a6afe378f2955 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be disclosed in the notes to financial statements for any additions to goodwill in each period for which a statement of financial position is presented: 1. a The amount assigned to goodwill in total and by major business combination, by major [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."), by [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, or by reorganization event resulting in fresh-start reporting 2. b The weighted-average amortization period in total and the amortization period by major business combination, by major acquisition by a not-for-profit entity, by joint venture formation, or by reorganization event resulting in fresh-start reporting. #### Information for Each Period for Which a Statement of Financial Position Is Presented ##### [350-20-50-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:3b4ec47ebdb038e53dccdebd056f78f481a0c247886d93a57791b5c9dc7f5256 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial position is presented: 1. a The gross carrying amounts of goodwill, accumulated amortization, and accumulated impairment loss 2. b The aggregate amortization expense for the period 3. c Goodwill included in a disposal group classified as held for sale in accordance with paragraph [360-10-45-9](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-9) and goodwill derecognized during the period without having previously been reported in a disposal group classified as held for sale. #### Goodwill Impairment Loss ##### [350-20-50-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:d3f87f4ba863e9f67a77613963d4dc10e1682c3ec0dfdcf001ee90683f724ed0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each goodwill impairment loss recognized, the following information shall be disclosed in the notes to financial statements that include the period in which the impairment loss is recognized: 1. a A description of the facts and circumstances leading to the impairment 2. b The amount of the impairment loss and the method of determining the fair value of the entity or the reporting unit (whether based on prices of comparable businesses or nonprofit activities, a present value or other valuation technique, or a combination of those methods) 3. c The caption in the income statement or statement of activities in which the impairment loss is included 4. d The method of allocating the impairment loss to the individual amortizable units of goodwill. ##### [350-20-50-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:20.846Z to 2026-09-10T00:01:20.846Z Record version: sha256:ff542de6f714cb4c8b4c41ec1690f0001ab39587f5654f0600d41337562f7a62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by paragraph [820-10-50-2(bbb)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) are not required for fair value measurements related to the financial accounting and reporting for goodwill after its initial recognition in a business combination, an acquisition by not-for-profit entity, or a joint venture formation. Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:c59eb304c4c9d5ccde6408bd1b7f90d20d6cecef1c4810e9aeab5609e080ff6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/350/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [350-20-55-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:3c24e22c2e28bfe7f3242839f5f9fd323a1bbea0d8df9d9823a32594977c5b10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Determining whether a component of an [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment.") is a [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component).") is a matter of judgment based on an entity's individual facts and circumstances. Although paragraphs [350-20-35-33 through 35-35](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) includes a number of characteristics that must be present for a component of an operating segment to be a reporting unit, no single factor or characteristic is determinative. How an entity manages its operations and how an acquired entity is integrated with the acquiring entity are key to determining the reporting units of the entity. ##### [350-20-55-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:1c97effb62428e76f00e905bc148fe18e19dfa405f5e1417e6ea89c1f52fb666 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The characteristics identified in paragraphs [350-20-35-33 through 35-35](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-33) that must be present for a component to be a reporting unit are discussed in the following implementation guidance. ##### [350-20-55-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:e7c6e07473ebce90c3aa5ca9eac5aa06803fd18ca28d23619b32e97acc3a888d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of whether a component constitutes 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 a [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.") requires judgment based on specific facts and circumstances. The guidance in Section 805-10-55 should be considered in determining whether a group of assets constitutes a business or a nonprofit activity. ##### [350-20-55-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:c9c921c79be12f3d8587d0cfc956c6cc4a11d44a20ddf9a2bfc25d136c674d4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The term _discrete financial information_ should be applied in the same manner that it is applied in determining operating segments in accordance with paragraph [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1). That guidance indicates that it is not necessary that assets be allocated for a component to be considered an operating segment (that is, no balance sheet is required). Thus, discrete financial information can constitute as little as operating information. Therefore, in order to test [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.") for impairment in accordance with this Subtopic, an entity may be required to assign assets and liabilities to reporting units (consistent with the guidance in paragraphs [350-20-35-39 through 35-40](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-39) ). ##### [350-20-55-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:d19d7e7571b7c0e1112d2017af66a6929bbbafcac33dd723bf2c39b79be12b70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Segment management, as defined in paragraphs [280-10-50-7 through 50-8](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-7) , is either a level below or the same level as the chief operating decision maker. According to Topic 280, a segment manager is directly accountable to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment. The approach used in this Subtopic to determine reporting units is similar to the one used to determine operating segments; however, this Subtopic focuses on how operating segments are managed rather than how the entity as a whole is managed; that is, reporting units should reflect the way an entity manages its operations. ##### [350-20-55-6](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:64130bd2a4de7e48511a6e6fb9a1f238ae4c503803a7b8db10003883253ed8b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Evaluating whether two components have similar economic characteristics is a matter of judgment that depends on specific facts and circumstances. That assessment should be more qualitative than quantitative. ##### [350-20-55-7](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:de6317634de6be1bdfd8b59ab7f8268e7acbee5cc5a3e2813fee19591c1bb13f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining whether the components of an operating segment have similar economic characteristics, all of the factors in paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) should be considered. However, every factor need not be met in order for two components to be considered economically similar. In addition, the determination of whether two components are economically similar need not be limited to consideration of the factors described in that paragraph. In determining whether components should be combined into one reporting unit based on their economic similarities, factors that should be considered in addition to those in that paragraph include but are not limited to, the following: 1. a The manner in which an entity operates its business or nonprofit activity and the nature of those operations 2. b Whether goodwill is recoverable from the separate operations of each component business (or nonprofit activity) or from two or more component businesses (or nonprofit activities) working in concert (which might be the case if the components are economically interdependent) 3. c The extent to which the component businesses (or nonprofit activities) share assets and other resources, as might be evidenced by extensive transfer pricing mechanisms 4. d Whether the components support and benefit from common research and development projects. The fact that a component extensively shares assets and other resources with other components of the operating segment may be an indication that the component either is not a business or nonprofit activity or it may be economically similar to those other components. ##### [350-20-55-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:8bdf5cea635c0c680b7c652d2638ebb11400f400387833d3e8e0a36ad893d557 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Components that share similar economic characteristics but relate to different operating segments may not be combined into a single reporting unit. For example, an entity might have organized its operating segments on a geographic basis. If its three operating segments (Americas, Europe, and Asia) each have two components (A and B) that are dissimilar to each other but similar to the corresponding components in the other operating segments, the entity would not be permitted to combine component A from each of the operating segments to make reporting unit A. ##### [350-20-55-9](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:f398a1175401c159ddde672f29cd18e35d4147a33872b63c66b6c86f7f9734ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If two operating segments have been aggregated into a reportable segment by applying the aggregation criteria in paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11), it would be possible for one or more of those components to be economically dissimilar from the other components and thus be a reporting unit for purposes of testing goodwill for impairment. That situation might occur if an entity's operating segments are based on geographic areas. The following points need to be considered in addressing this circumstance: 1. a The determination of reporting units under this Subtopic begins with the definition of an operating segment in paragraph [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) and considers disaggregating that operating segment into economically dissimilar components for the purpose of testing goodwill for impairment. The determination of reportable segments under Topic 280 also begins with an operating segment, but considers whether certain economically similar operating segments should be aggregated into a single operating segment or into a reportable segment. 2. b The level at which operating performance is reviewed differs between this Subtopic and Topic 280. It is the chief operating decision maker who reviews operating segments and the segment manager who reviews reporting units (components of operating segments). Therefore, a component of an operating segment would not be considered an operating segment for purposes of that Topic unless the chief operating decision maker regularly reviews its operating performance; however, that same component might be a reporting unit under this Subtopic if a segment manager regularly reviews its operating performance (and if other reporting unit criteria are met). #### Illustrations ##### [350-20-55-10](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:6a1e7e3254689750f32064bce88a54edbf20e572208b30593b0e702d649c24c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the effect of a nontaxable transaction on the impairment test of goodwill. The Example may not necessarily be indicative of actual income tax liabilities that would arise in the sale of a reporting unit or the relationship of those liabilities in a taxable versus nontaxable structure. ##### [350-20-55-11](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:3a8c13a0e6704e37e346706d39c440f0a05747981e2be26996817f167569ca91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A is performing a goodwill impairment test relative to Reporting Unit at December 31, 20X2. Reporting Unit has the following assets and liabilities: 1. a Net assets (excluding goodwill and deferred income taxes) of $60 with a tax basis of $35 2. b Goodwill of $40 3. c Net deferred tax liabilities of $10. ##### [350-20-55-12](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:0c9464e243b9e3cd737683e5c7d6e4cbad48ed1f83e32fefa3bf77773175aa4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A believes that it is feasible to sell Reporting Unit in either a nontaxable or a taxable transaction. Entity A could sell Reporting Unit for $80 in a nontaxable transaction or $90 in a taxable transaction. If Reporting Unit were sold in a nontaxable transaction, Entity A would have a current tax payable resulting from the sale of $10. Assuming a tax rate of 40 percent, if Reporting Unit were sold in a taxable transaction, Entity A would have a current tax payable resulting from the sale of $22 (\[$90 - 35\] × 40%). ##### [350-20-55-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:e5bb8624b8f4c66b12806997c32fa63377efb29733db2d1b21bde0a71f4ad651 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the quantitative impairment test in paragraphs [350-20-35-4 through 35-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4) , Entity A concludes that market participants would act in their economic best interest by selling Reporting Unit in a nontaxable transaction based on the following evaluation of its expected after-tax proceeds. - ![](https://asc.understandingaccounting.org/asc-img/GUID-2A9B4923-FB4E-4546-A8AB-942826EA7319-low.gif) Nontaxable Taxable Gross proceeds (fair value) $80 $90 Less: taxes arising from transaction (10) (22) Value to Entity A $70 $68 ##### [350-20-55-14](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:10d3f431c38a27ba9fa0e6c0a5f6616e3e024dd5a97fd234b766ee0c05437753 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the quantitative impairment test, Entity A would determine the carrying amount of Reporting Unit as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-835839B5-A6E7-4644-B7F4-835E34D58E28-low.gif) Net assets $60 Goodwill 40 Deferred taxes (10) Carrying value $90 ##### [350-20-55-15](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:313c8698de6a1a58f15bef2694153a672fbede6614b27d3792da3e379b1c47e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The goodwill allocated to Reporting Unit is determined to be impaired because Reporting Unit's carrying value ($90) exceeds its fair value ($80 assuming a nontaxable transaction). ##### [350-20-55-16](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:f4d3b056f2b3dbe948f4842f3300cf24d1ade5be2eaacac3cf761d8b51b193fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Reporting Unit must recognize the full goodwill impairment loss of $10 (determined as the excess of the carrying amount of Reporting Unit of $90 compared with its fair value of $80) because the $10 impairment loss does not exceed the $40 carrying amount of the goodwill allocated to Reporting Unit. ##### [350-20-55-17](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:004f39ec8da6b76d4488a5e87ada62b9f4461238910f423737aec306de13d46a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the effect of a taxable transaction on the impairment test of goodwill. The Example may not necessarily be indicative of actual income tax liabilities that would arise in the sale of a reporting unit or the relationship of those liabilities in a taxable versus nontaxable structure. ##### [350-20-55-18](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:469f82255ebf452d2e83a8e5cf66a4690435e6258196a83946e47392271a3187 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A is performing a goodwill impairment test relative to Reporting Unit at December 31, 20X2. Reporting Unit has the following assets and liabilities: 1. a Net assets (excluding goodwill and deferred income taxes) of $60 with a tax basis of $35 2. b Goodwill of $40 3. c Net deferred tax liabilities of $10. ##### [350-20-55-19](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:a76087d371c75f0c30d7affea21125c8266749f2a631e74945d0212cc7b26249 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A believes that it is feasible to sell Reporting Unit in either a nontaxable or a taxable transaction. Entity A could sell Reporting Unit for $65 in a nontaxable transaction or $80 in a taxable transaction. If Reporting Unit were sold in a nontaxable transaction, Entity A would have a current tax payable resulting from the sale of $4. Assuming a tax rate of 40 percent, if Reporting Unit were sold in a taxable transaction, Entity A would have a current tax payable resulting from the sale of $18 (\[$80 - 35\] × 40%). ##### [350-20-55-20](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:df090184be2cc01447e0301a756d430cc9efd2cf679fa8cbee5abb5a953e5fbb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the quantitative impairment test in paragraphs [350-20-35-4 through 35-8](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-4) , Entity A concludes that market participants would act in their economic best interest by selling Reporting Unit in a taxable transaction. This conclusion was based on the following. - ![](https://asc.understandingaccounting.org/asc-img/GUID-0244B189-CC70-47C7-9C71-A7B152108C72-low.gif) Nontaxable Transaction Taxable Transaction Gross proceeds (fair value) $65 $80 Less: taxes arising from transaction (4) (18) Value to Entity A $61 $62 ##### [350-20-55-21](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:ad2d7f50f15074887e319ac1ef3647bb77db496ff6254b425b06dbb4aed9c4c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Deferred taxes related to the net assets of Reporting Unit should be included in the carrying value of Reporting Unit. Accordingly, in the quantitative impairment test Entity A would determine the carrying amount of Reporting Unit as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-43D060F0-72F7-46D8-97B4-802DB2A38B06-low.gif) Net assets $60 Goodwill 40 Deferred income taxes (10) Carrying value $90 ##### [350-20-55-22](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:b9452dd1c7089d36e5aaef9ee4851723f4d3f2cf63e1e0eef7e07cf5fe21fbd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The goodwill allocated to Reporting Unit is determined to be impaired because Reporting Unit's carrying amount ($90) exceeds its fair value ($80). ##### [350-20-55-23](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:c3512141be786ee8b50fc7b69847feaa7bed8bf702e52f295414dba72631edff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Reporting Unit must recognize the full goodwill impairment loss of $10 (determined as the excess of the carrying amount of Reporting Unit of $90 compared with its fair value of $80) because the $10 impairment loss does not exceed the $40 carrying amount of the goodwill allocated to Reporting Unit. ##### [350-20-55-23A](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:15c11e0aa30e0ff167a16c633e3419647f3f44beb0653c22cce979968efdb574 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Goodwill is deductible for tax purposes for some business combinations in certain jurisdictions. In those jurisdictions, a deferred tax asset or deferred tax liability is recorded upon acquisition on the basis of the difference between the book basis and the tax basis of goodwill. When goodwill of a reporting unit is tax deductible, the impairment of goodwill creates a cycle of impairment because the decrease in the book value of goodwill increases the deferred tax asset (or decreases the deferred tax liability) such that the carrying amount of the reporting unit increases. However, there is no corresponding increase in the fair value of the reporting unit and this could trigger another impairment test. ##### [350-20-55-23B](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23B) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:56c960651842296aeb90a21b1b6c0bc5e53bfd2f3b6fdc92322c49766c04b575 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the use of a simultaneous equation when tax deductible goodwill is present to account for the increase in the carrying amount from the deferred tax benefit. - Beta Entity has goodwill from an acquisition in Reporting Unit X. All of the goodwill allocated to Reporting Unit X is tax deductible. On October 1, 20X6 (the date of the annual impairment test for the reporting unit), Reporting Unit X had a book value of goodwill of $400, which is all tax deductible, deferred tax assets of $200 relating to the tax-deductible goodwill, and book value of other net assets of $400. Reporting Unit X is subject to a 40 percent income tax rate. Beta Entity estimated the fair value of Reporting Unit X at $900. - ![](https://asc.understandingaccounting.org/asc-img/GUID-1143ECB6-B929-42D5-A461-2F8E6032F70E-low.gif) Carrying Amount Fair Value Preliminary Impairment Preliminary Deferred Tax Adjustment Carrying Amount after Preliminary Impairment Goodwill $400 $ - $(100) $ - $300 Deferred taxes 200 - - 40 240 Other net assets 400 - - - 400 Total " $1,000 " $900 $(100) $40 $940 ##### [350-20-55-23C](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23C) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:10c9b594a667984165484b2de494602f9f68b39b4632db96a1a48ad66592ed12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the Example above, the carrying amount of Reporting Unit X immediately after the impairment charge exceeds its fair value by the amount of the increase in the deferred tax asset calculated as 40 percent of the impairment charge. To address the circular nature of the carrying amount exceeding the fair value, instead of continuing to calculate impairment on the excess of carrying amount over fair value until those amounts are equal, Beta Entity would apply the simultaneous equation demonstrated in paragraphs [805-740-55-9 through 55-13](https://asc.understandingaccounting.org/asc/740/805/#740-805-55-9) to Reporting Unit X, as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-CF45D93B-54C3-431C-83AD-EDA6DA98604A-low.gif) Simultaneous equation: \[tax rate/(1 - tax rate)\] × (preliminary temporary difference) = deferred tax asset Equation for this example: 40%/(1 - 40%) × 100 = 67 Carrying Amount Fair Value Preliminary Impairment Adjustment for Equation Carrying Amount after Impairment Goodwill $400 $ - $(100) $(67) $233 Deferred taxes 200 - - 67 267 Other net assets 400 - - - 400 Total " $1,000 " $900 $(100) $0 $900 ##### [350-20-55-23D](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-23D) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:136802fade6ce969afee8db1d34a82d4bb67c8a3b34c99577d1cfdcba4c1ed99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The company would report a $167 goodwill impairment charge partially offset by a $67 deferred tax benefit recognized in the income tax line. If the impairment charge calculated using the equation exceeds the total goodwill allocated to a reporting unit, the total impairment charge would be limited to the goodwill amount. ##### [350-20-55-24](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:49cdc10b0cc57d28c5d01f17593af11fa4366e8f623a3a98e0fe7d4863f2bea3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with paragraphs [350-20-50-1 through 50-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1) , the following disclosures would be made by Theta Entity in its December 31, 20X3 financial statements relating to goodwill. - Theta Entity has three reporting units with goodwill—Software, Electronics, and Communications—and two reportable segments—Technology and Communications. The Electronics reporting unit has a negative carrying amount. - Note C: Goodwill - The changes in the carrying amount of goodwill for the year ended December 31, 20X3, are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-B5D5D4CE-AE02-4955-8FC0-BA0A0CE06333-low.gif) ($000s) "Technology Segment" "Communications Segment" Total "Balance as of January 1, 20X3" Goodwill " $1,413 " " $1,104 " " $2,517 " Accumulated impairment losses - (200) (200) "1,413" 904 " 2,317 " Goodwill acquired during year 189 115 304 Impairment losses - (46) (46) Goodwill written off related to sale of business unit (484) - (484) "Balance as of December 31, 20X3" Goodwill " 1,118 " " 1,219 " " 2,337 " Accumulated impairment losses - (246) (246) " $1,118 " $973 " $2,091 " - The Communications segment is tested for impairment in the third quarter, after the annual forecasting process. Due to an increase in competition in the Texas and Louisiana cable industry, operating profits and cash flows were lower than expected in the fourth quarter of 20X2 and the first and second quarters of 20X3. Based on that trend, the earnings forecast for the next five years was revised. In September 20X3, a goodwill impairment loss of $46 was recognized in the Communications reporting unit. The fair value of that reporting unit was estimated using the expected present value of future cash flows. - The Electronics reporting unit to which $498 of goodwill is allocated had a negative carrying amount on December 31, 20X3, and 20X2. This reporting unit is part of the Technology segment. ##### [350-20-55-25](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:93a427dcf03177fa1017103a63af4c61c80b2e3343f2c0a46e1e20f384ef65aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The flowchart in this Example illustrates the optional qualitative assessment and the quantitative goodwill impairment test described in paragraphs [350-20-35-3A through 35-13](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-3A) . - ![](https://asc.understandingaccounting.org/asc-img/GUID-2E0DCF05-F286-4297-A5AF-BAADC5E754EB-low.gif) Note: 1. 1 An entity has the unconditional option to skip the qualitative assessment and proceed directly to calculating the fair value of the reporting unit and comparing that value with its carrying amount, including goodwill. ### Accounting Alternatives #### Implementation Guidance ##### [350-20-55-26](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:305faf7243abae1cac18b7e7d80d8aa10f8504cd571970419be7bb7680a1b47d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following flowchart provides an overview of the accounting alternative for amortizing goodwill for entities within the scope of paragraph [350-20-15-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4). - ![](https://asc.understandingaccounting.org/asc-img/GUID-273DDE41-8A87-4EEB-9B47-C0D43D5CB760-low.gif) Qualitative Assessment Evaluate relevant events or circumstances to determine whether it is more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount (see note 1). Is it more likely than not that the fair value of the entity (or the reporting unit) is less than its carrying amount? Calculate the fair value of the entity (or the reporting unit) and compare with its carrying amount, including goodwill. Is the fair value of the entity (or the reporting unit) less than its carrying amount? Recognize impairment equal to the difference between the carrying amount of the entity (or the reporting unit) and its fair value, not to exceed the carrying amount of goodwill. Yes Triggering Event Has an event occurred or circumstances changed that would indicate that the fair value of the entity (or the reporting unit) may be below its carrying amount? Yes No Yes No No Stop Note 1: - An entity has the unconditional option to skip the qualitative assessment and proceed directly to calculating the fair value of the entity (or the reporting unit) and comparing that value with its carrying amount, including goodwill. #### Illustrations ##### [350-20-55-27](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:8fe13c0c87b41af09c72436453e573ab3a3c26e688504454543f311b7fb849e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the effect of the accounting alternative for a goodwill impairment triggering event evaluation on the impairment conclusion for an entity within the scope of paragraph [350-20-15-4A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-4A). This Example is not indicative of every outcome that may occur because facts and circumstances surrounding triggering events are unique to each entity. ##### [350-20-55-28](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:b2a77c8a7e0220d498c4655402fe3cb515832100abf112ee918a4ddd91828a9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A adopted the accounting alternative for a goodwill impairment triggering event evaluation and performs a goodwill impairment triggering event evaluation only as of the end of each reporting period. Entity A also adopted the accounting alternative for amortizing goodwill in accordance with paragraph [350-20-05-5](https://asc.understandingaccounting.org/asc/350/20/#350-20-05-5) and elected to perform an impairment test for goodwill at the entity level upon the occurrence of a triggering event only. During the second quarter, Entity A lost a significant customer. However, Entity A was able to replace that customer late in the third quarter of the same year, and the entity's operations returned to previously forecasted levels by the annual reporting date. ##### [350-20-55-29](https://asc.understandingaccounting.org/asc/350/20/#350-20-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:23.951Z to 2026-09-10T00:01:23.951Z Record version: sha256:426a8a941fe459b8a7cdf306896539bd7f418858aa29707085920ed9ac11cbdb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If Entity A reports only annually, then it would evaluate the facts and circumstances as of the annual reporting date and may conclude that no triggering event exists; therefore, no further goodwill impairment testing would be necessary. Alternatively, if Entity A reports on both a quarterly basis and an annual basis, then it would evaluate the facts and circumstances as of the end of each quarter and may conclude that the loss of the significant customer represents a goodwill impairment triggering event requiring additional impairment testing as of the end of the second quarter. Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z Record version: sha256:9112ab635d33e316ba70a2045c296ab900ae42874257c4a07eac37113b686b66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-20-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/350/20/#65-transition-and-open-effective-date-information) SEC content: no ##### [350-20-65-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z Record version: sha256:007a277cc57b09dc15bd122271920b8238901abc333cbeef30800a8f0df88c7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2011-08, _Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment_. #### Transition Related to Accounting Standards Updates No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill, No. 2019-06, Intangibles—Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities, and No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events ##### [350-20-65-2](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z Record version: sha256:5361ff390dba6c95d32c769bf4543997e55ce3aff473dc4c0d331d76b1aa7068 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following represents the transition information related to Accounting Standards Updates No. 2014-02, _Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill,_ No. 2019-06, _Intangibles—Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities,_ and No. 2021-03, _Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events_ referenced in paragraph [350-20-15-3A](https://asc.understandingaccounting.org/asc/350/20/#350-20-15-3A): 1. a Upon adoption of the guidance for the accounting alternative for amortizing goodwill in the Accounting Alternatives Subsections of this Subtopic and the guidance in paragraph [323-10-35-13](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-13), that guidance shall be effective prospectively for new goodwill recognized after the adoption of that guidance. For existing goodwill, that guidance shall be effective as of the beginning of the first fiscal year in which the accounting alternative is adopted. 2. b Goodwill existing as of the beginning of the period of adoption shall be amortized prospectively on a straight-line basis over 10 years, or less than 10 years if an entity demonstrates that another useful life is more appropriate. 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-03](https://asc.understandingaccounting.org/updates/asu-2016-03/). 4. d Upon adoption of the accounting alternative for amortizing goodwill, an entity shall make an accounting policy election to test goodwill for impairment at either the entity level or the reporting unit level. 5. e A private company or not-for-profit entity that makes an accounting policy election to apply the accounting alternative for amortizing goodwill in the Accounting Alternatives Subsections of this Subtopic for the first time need not justify that the use of the accounting alternative is preferable as described in paragraph [250-10-45-2](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-2). ##### [350-20-65-3](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z Record version: sha256:b7e987711557a6542b1c1932ce7658c5187c8b2394c7973c5313e662ba9a0e22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/21/2024 after the end of the transition period stated in Accounting Standards Updates No. 2017-04, _Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,_ No. 2019-10, _Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates_, and No. 2021-03, _Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events_. #### Transition Related to Accounting Standards Update No. 2021-03, Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events ##### [350-20-65-4](https://asc.understandingaccounting.org/asc/350/20/#350-20-65-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:25.713Z to 2026-09-10T00:01:25.713Z Record version: sha256:a576ac97bd65f5b1750b1f255f482e7eae76b4258e0ca1997b69da7e319c9878 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following represents the transition and effective date information related to Accounting Standards Update No. 2021-03, _Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events:_ 1. a The pending content that links to this paragraph shall be effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance as of March 30, 2021. A private company or not-for-profit entity that adopts the pending content that links to this paragraph shall apply it as of the beginning of the interim or annual period for financial statements that have not yet been issued or made available for issuance in the year of adoption. A private company or not-for-profit entity shall not retroactively adopt the pending content that links to this paragraph as of the beginning of an annual period for which interim-period financial statements have already been issued in the year of adoption. 2. b For a private company or not-for-profit entity that adopts the pending content that links to this paragraph after its original effective date, that pending content shall be applied prospectively as of the beginning of the first reporting period in which the accounting alternative is adopted. 3. c A private company or not-for-profit entity that makes an accounting policy election to apply the pending content that links to this paragraph for the first time need not justify that the use of the accounting alternative is preferable as described in paragraph [250-10-45-2](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-2). Source downloaded (UTC): 2026-09-10T00:01:33.372Z to 2026-09-10T00:02:11.627Z Record version: sha256:b80305d80cf7cf05efef35d268d411c71da5965b8a00d323bf9d1f76da943f51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30: Intangibles—Goodwill and Other — General Intangibles Other Than Goodwill ### Machine-generated study aids ```json { "summary": "ASC 350-30 governs the accounting for intangible assets other than goodwill — their recognition when acquired individually or in an asset group, the expensing of internally developed intangibles that are not specifically identifiable, and, for all intangibles (including those from a business combination), their subsequent measurement, impairment, presentation, and disclosure. The core rule is that accounting after acquisition turns on useful life: finite-lived intangibles are amortized over their useful life (residual value presumed zero) and tested for impairment under Subtopic 360-10, while indefinite-lived intangibles are not amortized and are tested for impairment at least annually by comparing fair value with carrying amount.", "key_points": [ "An intangible asset acquired individually or with a group of other assets shall be recognized, with the group's cost allocated to individual assets on relative fair values and no goodwill recognized (350-30-25-1; 350-30-25-2); such assets may be recognized even if they fail the contractual-legal and separability criteria (350-30-25-4).", "Costs of internally developing, maintaining, or restoring intangibles that are not specifically identifiable, have indeterminate lives, or are inherent in a continuing business and related to the entity as a whole are expensed as incurred (350-30-25-3).", "Useful life is the period over which the asset is expected to contribute directly or indirectly to the entity's future cash flows, estimated using the pertinent factors in 350-30-35-3 (expected use, related asset lives, legal/contractual limits, renewal experience, obsolescence and competition, maintenance level), with no factor presumptive.", "A finite-lived intangible is amortized in the pattern in which its economic benefits are consumed (straight-line if that pattern is not reliably determinable), over the amount assigned less residual value, which is presumed zero unless a condition in 350-30-35-8(a)-(b) is met (350-30-35-6; 350-30-35-8).", "Useful life is indefinite when no legal, regulatory, contractual, competitive, economic, or other factors limit it; such assets are not amortized (350-30-35-4; 350-30-35-15), but life must be reassessed each reporting period, with a change tested for impairment and applied prospectively as a change in estimate (350-30-35-9 through 35-13; 350-30-35-16 through 35-17; 350-30-45-3).", "Indefinite-lived intangibles are tested annually and more frequently upon triggering events, using an optional qualitative 'more likely than not' assessment that may be bypassed; the quantitative test compares fair value with carrying amount, and reversal of a recognized impairment loss is prohibited (350-30-35-18 through 35-20).", "Separately recorded indefinite-lived intangibles operated as a single asset and essentially inseparable are combined into one unit of accounting for impairment testing under the indicators in 350-30-35-23 and 35-24; that unit cannot include goodwill or finite-lived assets or constitute a business (350-30-35-21; 350-30-35-26)." ], "categories": [ "Intangibles and goodwill", "Impairment", "Subsequent measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exams love the finite/indefinite split: indefinite-lived intangibles get a one-step fair-value-versus-carrying-amount test (no recoverability step), while finite-lived ones go through the long-lived-asset test in 360-10. A common misunderstanding is that \"indefinite\" means \"infinite\" — it only means no foreseeable limit, and the classification must be revisited every period, with any change treated prospectively as a change in estimate, never as a change in accounting principle.", "related_topics": [ "350-10", "360-10", "805-20", "805-50", "730-10", "350-40" ], "key_concepts": [ "indefinite-lived intangible asset", "finite useful life amortization", "residual value", "qualitative impairment assessment", "unit of accounting", "defensive intangible asset", "in-process research and development", "internally developed intangibles" ] } ``` Source downloaded (UTC): 2026-09-10T00:01:33.372Z to 2026-09-10T00:01:33.372Z Record version: sha256:1c3c9ea37406bcb86a61db66336e2bca2c47b120a7e3e2be60fe041af9f54d5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/30/#00-status) SEC content: no ##### [350-30-00-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:33.372Z to 2026-09-10T00:01:33.372Z Record version: sha256:becd18372c5df374fe61c9d97f81cf9f4a580cacd4aaaec42fc5539cd1bb77c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
Corporate Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Formation DateAddedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2010-0701/28/2010
IdentifiableAddedAccounting Standards Update No. 2024-0203/29/2024
Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
LeaseAddedAccounting Standards Update No. 2018-0101/25/2018
Nonprofit ActivityAddedAccounting Standards Update No. 2010-0701/28/2010
Variable Interest EntitySupersededAccounting Standards Update No. 2025-0305/12/2025
350-30-05-1AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-05-1AmendedAccounting Standards Update No. 2017-0401/26/2017
350-30-05-1AmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-05-2AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-05-2 through 05-5
AddedAccounting Standards Update No. 2017-0401/26/2017
350-30-15-3AmendedAccounting Standards Update No. 2025-0609/18/2025
350-30-15-3AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-15-3AmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-15-4AmendedAccounting Standards Update No. 2025-0609/18/2025
350-30-15-4AmendedAccounting Standards Update No. 2023-0812/13/2023
350-30-15-4AmendedAccounting Standards Update No. 2018-1208/15/2018
350-30-15-4AmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-25-2AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-25-2AmendedAccounting Standards Update No. 2010-0802/02/2010
350-30-25-2 through 25-5
AmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-25-4AmendedAccounting Standards Update No. 2024-0203/29/2024
350-30-25-4AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-25-5AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-30-1AmendedAccounting Standards Update No. 2010-0802/02/2010
350-30-30-2SupersededAccounting Standards Update No. 2010-0802/02/2010
350-30-35-7AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-35-7AmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-35-17 through 35-18
AmendedAccounting Standards Update No. 2012-0207/27/2012
350-30-35-17AAmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-35-17AAmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-35-18A through 35-18F
AddedAccounting Standards Update No. 2012-0207/27/2012
350-30-35-19AmendedAccounting Standards Update No. 2012-0207/27/2012
350-30-35-25SupersededAccounting Standards Update No. 2010-0701/28/2010
350-30-35-26AmendedAccounting Standards Update No. 2017-0401/26/2017
350-30-35-26AmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-50-1AmendedAccounting Standards Update No. 2024-0311/04/2024
350-30-50-1AmendedAccounting Standards Update No. 2023-0508/23/2023
350-30-50-1AmendedAccounting Standards Update No. 2010-0701/28/2010
350-30-50-3AmendedAccounting Standards Update No. 2024-0311/04/2024
350-30-50-3AAddedAccounting Standards Update No. 2012-0207/27/2012
350-30-55-30AmendedAccounting Standards Update No. 2018-0101/25/2018
350-30-65-3AddedAccounting Standards Update No. 2012-0207/27/2012
Source downloaded (UTC): 2026-09-10T00:01:36.105Z to 2026-09-10T00:01:36.105Z Record version: sha256:a07ef0cab8412e9381deed39439e9fe0ed199ebb08e91921e4f194d0df081352 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/30/#05-overview-and-background) SEC content: no ##### [350-30-05-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:36.105Z to 2026-09-10T00:01:36.105Z Record version: sha256:287618f999fdc3a33a543f6643e8f8238579076831fa6d9031b098c1e0251e98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses financial accounting and reporting for [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.)") (other than [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.")) acquired individually or with a group of other assets and for the cost of developing, maintaining, or restoring internally generated intangible assets. However, it does not discuss the recognition and initial measurement of intangible assets acquired in a business combination, acquired in 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 recognized by 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.") upon formation. This Subtopic also addresses financial accounting and reporting for intangible assets after their acquisition, including intangible assets acquired in a business combination, in an acquisition by a not-for-profit entity, or by a joint venture upon formation. ##### [350-30-05-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:36.105Z to 2026-09-10T00:01:36.105Z Record version: sha256:5adb39fa76d33adf5749f0419da2a5f05f38f60cc907d3295867f8918478cba4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Guidance on the initial recognition and measurement of intangible assets acquired in a business combination or in an acquisition by a not-for-profit entity is provided in Subtopics 805-20 and 958-805, respectively. Guidance on the initial recognition and measurement of intangible assets by a joint venture upon formation is provided in Subtopic 805-60. ##### [350-30-05-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:36.105Z to 2026-09-10T00:01:36.105Z Record version: sha256:1f856ba650438b14e26c5e20ca42a24eb6dbe40e49c8dd601010d831d72edaa9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Intangible assets acquired individually or with a group of other assets should be recognized as assets in accordance with Section 350-30-25. Costs of developing internally generated intangible assets should be accounted for in accordance with paragraph [350-30-25-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-25-3). ##### [350-30-05-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:36.105Z to 2026-09-10T00:01:36.105Z Record version: sha256:4fb5cbb475e43e3d4524d587fb3828951e10ddf6a6b3a692f7f923e9e5e53d98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting for an intangible asset after acquisition depends on its useful life. If that life is indefinite, the intangible asset should not be amortized but should be tested for impairment at least annually in accordance with paragraphs [350-30-35-15 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-15) . If that life is finite, the intangible asset should be amortized in accordance with paragraphs [350-30-35-6 through 35-13](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-6) and tested for impairment under the guidance for long-lived assets in Subtopic 360-10. ##### [350-30-05-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:36.105Z to 2026-09-10T00:01:36.105Z Record version: sha256:e92f9696ecd2fedb0082895ad0b7a6dd7225d69475ad02d9fc69579ab975456e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic also includes guidance on the presentation of intangible assets in the balance sheet, presentation of amortization expense and impairment losses for intangible assets in the income statement, and disclosure of information on intangible assets in the notes to financial statements. Source downloaded (UTC): 2026-09-10T00:01:38.534Z to 2026-09-10T00:01:38.534Z Record version: sha256:d1194f11440dcf8d0cbdd74bdbabf7a0d6d93b1bc2f3e92d097b649641662f30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/30/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-30-15-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:38.534Z to 2026-09-10T00:01:38.534Z Record version: sha256:fb7cca6e06f7433ad365e90568623dfbeca8baa10f265dca9afcb0f3fb4e096c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 350-10-15, with specific transaction qualifications noted below. #### Transactions ##### [350-30-15-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:38.534Z to 2026-09-10T00:01:38.534Z Record version: sha256:76c92f850ddc87d28fceb4fbe29557cc06f1c564302ecd3b44fdcd4fb7cb6050 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. While [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.") is an [intangible asset](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.)"), the term intangible asset is used in this Subtopic to refer to an intangible asset other than goodwill. ##### [350-30-15-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:01:38.534Z to 2026-09-10T00:01:38.534Z Record version: sha256:cc71dd605052f093de99355f5b530f345713cb33ab1f9141d5f528a81c320e25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the following: 1. a Intangible assets acquired individually or with a group of other assets (but not the recognition and initial measurement of those acquired in a business combination, acquired in 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 recognized by 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.") upon formation) 2. b Intangible assets (other than goodwill) that an entity recognizes in accordance with Subtopic 805-20, 805-60, or 958-805 after they have been initially recognized and measured, except for those identified in paragraph [350-30-15-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-4) 3. c [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 4. d Costs of internally developing identifiable intangible assets that an entity recognizes as assets. The disclosure requirements of paragraphs [350-30-50-1 through 50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1) also apply to capitalized software costs. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The guidance in this Subtopic applies to the following: 1. a Intangible assets acquired individually or with a group of other assets (but not the recognition and initial measurement of those acquired in a business combination, acquired in 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 recognized by 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.") upon formation) 2. b Intangible assets (other than goodwill) that an entity recognizes in accordance with Subtopic 805-20, 805-60, or 958-805 after they have been initially recognized and measured, except for those identified in paragraph [350-30-15-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-4) 3. c [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 4. d Costs of internally developing identifiable intangible assets that an entity recognizes as assets. The disclosure requirements of paragraphs [350-30-50-1 through 50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1) also apply to capitalized software costs related to software to be sold, leased, or marketed that an entity recognizes in accordance with Subtopic 985-20. ##### [350-30-15-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:01:38.534Z to 2026-09-10T00:01:38.534Z Record version: sha256:c0beddd359db21af20901ffe9d7e1a54563da8a1c6adba9927b400e8ab6a1386 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following: 1. a [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2010-07](https://asc.understandingaccounting.org/updates/asu-2010-07/). 3. c Except for certain disclosure requirements as noted in paragraph [350-30-15-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-3), capitalized software costs 4. d Except for disclosures required by paragraph [944-805-50-1](https://asc.understandingaccounting.org/asc/805/944/#805-944-50-1) (however, an insurance entity need not duplicate disclosures that also are required by paragraphs [944-30-50-2A through 50-2B](https://asc.understandingaccounting.org/asc/944/30/#944-30-50-2A) ), intangible assets recognized for acquired insurance contracts under the requirements of Subtopic 944-805 5. e Crypto assets accounted for in accordance with Subtopic 350-60, except for recognition and initial measurement of crypto assets. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The guidance in this Subtopic does not apply to the following: 1. a [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2010-07](https://asc.understandingaccounting.org/updates/asu-2010-07/). 3. c Except for certain disclosure requirements as noted in paragraph [350-30-15-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-3), capitalized software costs that an entity recognizes in accordance with Subtopic 985-20. 4. d Except for disclosures required by paragraph [944-805-50-1](https://asc.understandingaccounting.org/asc/805/944/#805-944-50-1) (however, an insurance entity need not duplicate disclosures that also are required by paragraphs [944-30-50-2A through 50-2B](https://asc.understandingaccounting.org/asc/944/30/#944-30-50-2A) ), intangible assets recognized for acquired insurance contracts under the requirements of Subtopic 944-805. 5. e Crypto assets accounted for in accordance with Subtopic 350-60, except for recognition and initial measurement of crypto assets. 6. f Capitalized software costs that an entity recognizes in accordance with Subtopic 350-40 on internal-use software. #### Other Considerations ##### [350-30-15-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:38.534Z to 2026-09-10T00:01:38.534Z Record version: sha256:5e480b4657196a9d483e46838ecd110347d743f2230b2e1f573906482067f347 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not address the identification of market participants, market participant assumptions, or valuation issues associated with defensive intangible assets. 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. Source downloaded (UTC): 2026-09-10T00:01:45.413Z to 2026-09-10T00:01:45.413Z Record version: sha256:37712575b118726f22356557703d8a802217db71dd02a724cec8db29b3989e67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/350/30/#30-initial-measurement) SEC content: no ##### [350-30-30-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:45.413Z to 2026-09-10T00:01:45.413Z Record version: sha256:71a7507e7e9fededb18ec1800b0f6e3c203542d3610d17e9864eebcae6efd289 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 (but not those acquired in a business combination) shall be initially measured based on the guidance included in paragraphs [805-50-15-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-3) and [805-50-30-1 through 30-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-1) . ##### [350-30-30-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:45.413Z to 2026-09-10T00:01:45.413Z Record version: sha256:58cd726964deb73f8b7f28fc305cb3ffc4463aff821ce98d9eaaf2bc425b4524 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-08](https://asc.understandingaccounting.org/updates/asu-2010-08/). Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:731a5dc9b93a7c81e46f0450949f9084def9f2211f67ae3a18f423c72dc19aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/30/#35-subsequent-measurement) SEC content: no #### Determining the Useful Life of an Intangible Asset ##### [350-30-35-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:b87908754ac1bb1e2f3b97f8986a918ab361ff9f34c4855ff860c6030c033afc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting for a recognized intangible asset is based on its [useful life](https://asc.understandingaccounting.org/glossary/u/#useful-life "The period over which an asset is expected to contribute directly or indirectly to future cash flows.") to the reporting entity. An intangible asset with a finite useful life shall be amortized; an intangible asset with an indefinite useful life shall not be amortized. ##### [350-30-35-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:a245133c05d9f58b6c10018a5d35d50696439ece8b81935aa0b519e99b5c1831 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The useful life of an intangible asset to an entity is the period over which the asset is expected to contribute directly or indirectly to the future cash flows of that entity. The useful life is not the period of time that it would take that entity to internally develop an intangible asset that would provide similar benefits. However, a reacquired right recognized as an intangible asset is amortized over the remaining contractual period of the contract in which the right was granted. If an entity subsequently reissues (sells) a reacquired right to a third party, the entity includes the related unamortized asset, if any, in determining the gain or loss on the reissuance. ##### [350-30-35-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:9b15bd470dd2808a286527d6bbe2431bb2ec7a1c26d34277a41c078483cfc768 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The estimate of the useful life of an intangible asset to an entity shall be based on an analysis of all pertinent factors, in particular, all of the following factors with no one factor being more presumptive than the other: 1. a The expected use of the asset by the entity. 2. b The expected useful life of another asset or a group of assets to which the useful life of the intangible asset may relate. 3. c Any legal, regulatory, or contractual provisions that may limit the useful life. The cash flows and useful lives of [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 based on legal rights are constrained by the duration of those legal rights. Thus, the useful lives of such intangible assets cannot extend beyond the length of their legal rights and may be shorter. 4. d The entity's own historical experience in renewing or extending similar arrangements, consistent with the intended use of the asset by the entity, regardless of whether those arrangements have explicit renewal or extension provisions. In the absence of that experience, the entity shall consider the assumptions that market participants would use about renewal or extension consistent with the highest and best use of the asset by market participants, adjusted for entity-specific factors in this paragraph. 5. e The effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, known technological advances, legislative action that results in an uncertain or changing regulatory environment, and expected changes in distribution channels) 6. f The level of maintenance expenditures required to obtain the expected future cash flows from the asset (for example, a material level of required maintenance in relation to the carrying amount of the asset may suggest a very limited useful life). As in determining the useful life of depreciable tangible assets, regular maintenance may be assumed but enhancements may not. Further, if an income approach is used to measure the fair value of an intangible asset, in determining the useful life of the intangible asset for amortization purposes, an entity shall consider the period of expected cash flows used to measure the fair value of the intangible asset adjusted as appropriate for the entity-specific factors in this paragraph. ##### [350-30-35-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:15dbad48bc3eddb1b3ebf7fd248e42fcebf8cfde90a42c0975c47ea0116d60e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If no legal, regulatory, contractual, competitive, economic, or other factors limit the useful life of an intangible asset to the reporting entity, the useful life of the asset shall be considered to be indefinite. The term _indefinite_ does not mean the same as infinite or indeterminate. The useful life of an intangible asset is indefinite if that life extends beyond the foreseeable horizon—that is, there is no foreseeable limit on the period of time over which it is expected to contribute to the cash flows of the reporting entity. Such intangible assets might be airport route authorities, certain trademarks, and taxicab medallions. ##### [350-30-35-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:d1e6e9ac28d6dc8747b6b78bc03f2307bb9e473f3fbe6bc1cc5e0fd9e0b7f3ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples 1 through 9B (see paragraphs [350-30-55-2 through 55-28F](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-2)) illustrate different intangible assets and how they should be accounted for in accordance with this Subtopic, including determining whether the useful life of an intangible asset is indefinite. ##### [350-30-35-5A](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-5A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:ce8621ad850367addec867eab6f18e250400593130cebe1e330fdecc72633a03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the application of paragraphs [350-30-35-1 through 35-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) to 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. A defensive intangible asset shall be assigned a useful life that reflects the entity's consumption of the expected benefits related to that asset. The benefit a reporting entity receives from holding a defensive intangible asset is the direct and indirect cash flows resulting from the entity preventing others from realizing any value from the intangible asset (defensively or otherwise). An entity shall determine a defensive intangible asset's useful life, that is, the period over which an entity consumes the expected benefits of the asset, by estimating the period over which the defensive intangible asset will diminish in fair value. The period over which a defensive intangible asset diminishes in fair value is a proxy for the period over which the reporting entity expects a defensive intangible asset to contribute directly or indirectly to the future cash flows of the entity. ##### [350-30-35-5B](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-5B) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:d75cb81aeec246fb8948fec79da704575bdd3a8dfa95b8a92c93cbf9530bb4e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It would be rare for a defensive intangible asset to have an indefinite life because the fair value of the defensive intangible asset will generally diminish over time as a result of a lack of market exposure or as a result of competitive or other factors. Additionally, if an acquired intangible asset meets the definition of a defensive intangible asset, it shall not be considered immediately abandoned. #### Intangible Assets Subject to Amortization ##### [350-30-35-6](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:53e83baebdd71a5a3e09fe0f49f59a2f15d059936f62190cd2ecd1a41afcb1c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A recognized intangible asset shall be amortized over its useful life to the reporting entity unless that life is determined to be indefinite. If an intangible asset has a finite useful life, but the precise length of that life is not known, that intangible asset shall be amortized over the best estimate of its useful life. The method of amortization shall reflect the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, a straight-line amortization method shall be used. ##### [350-30-35-7](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:f7c460d4a0aa66fe64c09da0315497811735a7281faa91f86992f0430d4538fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset shall not be written down or off in the period of acquisition unless it becomes impaired during that period. However, paragraph [730-10-25-2(c)](https://asc.understandingaccounting.org/asc/730/10/#730-10-25-2) requires amounts assigned to intangible assets acquired in a transaction other than a business combination or 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 recognized by 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.") upon formation that are to be used in a particular research and development project and that have no alternative future use to be charged to expense at the acquisition date. ##### [350-30-35-8](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:13419262faafa8872313e0d850e52b0d951eb6d7502a771a923f7cd400c75da1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount of an intangible asset to be amortized shall be the amount initially assigned to that asset less any [residual value](https://asc.understandingaccounting.org/glossary/r/#residual-value "The estimated fair value of an intangible asset at the end of its useful life to an entity, less any disposal costs."). The residual value of an intangible asset shall be assumed to be zero unless at the end of its useful life to the entity the asset is expected to continue to have a useful life to another entity and either of the following conditions is met: 1. a The reporting entity has a commitment from a third party to purchase the asset at the end of its useful life. 2. b The residual value can be determined by reference to an exchange transaction in an existing market for that asset and that market is expected to exist at the end of the asset's useful life. ##### [350-30-35-9](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:f5f93a876d884134a24ee0ba5efc31203acd1fa2ce18c482727ac2c1c11f5834 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate the remaining useful life of an intangible asset that is being amortized each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset's remaining useful life is changed, the remaining carrying amount of the intangible asset shall be amortized prospectively over that revised remaining useful life. ##### [350-30-35-10](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:7d907ba0b67748ddef124407142859b16589e73bdd726088b5b21f63069985a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that initially is deemed to have a finite useful life shall cease being amortized if it is subsequently determined to have an indefinite useful life, for example, due to a change in legal requirements. If an intangible asset that is being amortized is subsequently determined to have an indefinite useful life, the asset shall be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . ##### [350-30-35-11](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:581d6ff52109389325bdbbf1e7f50f97035a85eafe5a1362c1573a9191f1dfc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any resulting impairment loss would be due to a change in accounting estimate and thus, consistent with Topic 250, shall be recognized as a change in estimate, not as a change in accounting principle. Therefore, that loss shall be presented in the income statement in the same manner as other impairment losses. ##### [350-30-35-12](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:89bd926df828c870fc1a626e34eac48f19838e0f7ae8f21c3599b3ea0522288b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. That intangible asset shall no longer be amortized and shall be accounted for in the same manner as other intangible assets that are not subject to amortization. ##### [350-30-35-13](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:c678ca456c6191e03330a5932bac577ff63f862acaca32ab273e67633796e39b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an intangible asset's useful life is no longer considered to be indefinite, such as when unanticipated competition enters the market, the intangible asset must be amortized over the remaining period that it is expected to contribute to cash flows. #### Recognition and Measurement of an Impairment Loss ##### [350-30-35-14](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:7c3ad6a2804be7fa128bb40e9f387a9f052fdcc566da0a4cb1f80e1c957a52db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that is subject to amortization shall be reviewed for impairment in accordance with the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 by applying the recognition and measurement provisions in paragraphs [360-10-35-17 through 35-35](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-17) . In accordance with the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10, an impairment loss shall be recognized if the carrying amount of an intangible asset is not recoverable and its carrying amount exceeds its fair value. After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. Subsequent reversal of a previously recognized impairment loss is prohibited. ##### [350-30-35-15](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:47eeb9815c33008f27e2372deda8e8c67d9d3addde5e604b952b60031137ddd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an intangible asset is determined to have an indefinite useful life, it shall not be amortized until its useful life is determined to be no longer indefinite. ##### [350-30-35-16](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:c07d401102f169d89844450af873527665ddac6fab52446d989084cb109dc767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. ##### [350-30-35-17](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:4fe998c1a0e65db462a7a310a830ba31cb6fb3b3b7bc873c84ffc2aa629a16f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset shall be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . That intangible asset shall then be amortized prospectively over its estimated remaining useful life and accounted for in the same manner as other intangible assets that are subject to amortization. ##### [350-30-35-17A](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-17A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:9092183dd38c7c2abc00272ce059c06caad5fe0a576ab1c4fa6cce9d1bd786d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) shall be considered indefinite lived until the completion or abandonment of the associated research and development efforts. During the period that those assets are considered indefinite lived, they shall not be amortized but shall be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . Once the research and development efforts are completed or abandoned, the entity shall determine the useful life of the assets based on the guidance in this Section. Consistent with the guidance in paragraph [360-10-35-49](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-49), 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 have been temporarily idled shall not be accounted for as if abandoned. ##### [350-30-35-18](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:8c33505eb3e536db59d5d6f3bafbdc50a43a77e62246ea2df0540cbd2cdf5834 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that is not subject to amortization shall be tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. ##### [350-30-35-18A](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18A) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:96002881383f89f97d306c8551b14e810f6900d1077beaa975624d32bfb72eed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may first perform a qualitative assessment, as described in this paragraph and paragraphs [350-30-35-18B through 35-18F](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18B) , to determine whether it is necessary to perform the quantitative impairment test as described in paragraph [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19). An entity has an unconditional option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test as described in paragraph 350-30-35-19. An entity may resume performing the qualitative assessment in any subsequent period. If an entity elects to perform a qualitative assessment, it first shall assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that an indefinite-lived intangible asset is impaired. ##### [350-30-35-18B](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18B) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:f2989105b8b9e14b2618fe9a8d5d55bbde77ac6cde13c7c6e9f34b259d949161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In assessing whether it is more likely than not that an indefinite-lived intangible asset is impaired, an entity shall assess all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. Examples of such events and circumstances include the following: 1. a Cost factors such as increases in raw materials, labor, or other costs that have a negative effect on future expected earnings and cash flows that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 2. b Financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 3. c Legal, regulatory, contractual, political, business, or other factors, including asset-specific factors that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 4. d Other relevant entity-specific events such as changes in management, key personnel, strategy, or customers; contemplation of bankruptcy; or litigation that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 5. e Industry and market considerations such as a deterioration in the environment in which an entity operates, an increased competitive environment, a decline in market-dependent multiples or metrics (in both absolute terms and relative to peers), or a change in the market for an entity's products or services due to the effects of obsolescence, demand, competition, or other economic factors (such as the stability of the industry, known technological advances, legislative action that results in an uncertain or changing business environment, and expected changes in distribution channels) that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset 6. f Macroeconomic conditions such as deterioration in general economic conditions, limitations on accessing capital, fluctuations in foreign exchange rates, or other developments in equity and credit markets that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset. ##### [350-30-35-18C](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18C) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:471471e9e69bd57622632f4f56f1604cca541d6f5ab617f1996bf80ad043a87b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The examples included in the preceding paragraph are not all-inclusive, and an entity shall consider other relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. An entity shall consider the extent to which each of the adverse events and circumstances identified could affect the significant inputs used to determine the fair value of an indefinite-lived intangible asset. An entity also shall consider the following to determine whether it is more likely than not that the indefinite-lived intangible asset is impaired: 1. a Positive and mitigating events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset 2. b If an entity has made a recent fair value calculation for an indefinite-lived intangible asset, the difference between that fair value and the then carrying amount 3. c Whether there have been any changes to the carrying amount of the indefinite-lived intangible asset. ##### [350-30-35-18D](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18D) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:a7e796159a1151aecd5a8e565cbff01afe65b73375e3ba9b1be03cc03a1b7c3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall evaluate, on the basis of the weight of the evidence, the significance of all identified events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset for determining whether it is more likely than not that the indefinite-lived intangible asset is impaired. None of the individual examples of events and circumstances included in paragraph [350-30-35-18B(a) through (f)](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18B) are intended to represent standalone events and circumstances that necessarily require an entity to calculate the fair value of an intangible asset. Also, the existence of positive and mitigating events and circumstances is not intended to represent a rebuttable presumption that an entity should not perform the quantitative impairment test as described in paragraph [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19). ##### [350-30-35-18E](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18E) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:5733044c8b6a7ed10e8dc518ffeef772505c123c799d97de61933e2179184970 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If after assessing the totality of events and circumstances and their potential effect on significant inputs to the fair value determination an entity determines that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity need not calculate the fair value of the intangible asset and perform the quantitative impairment test in accordance with paragraph [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19). ##### [350-30-35-18F](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18F) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:9c3c1962c43b6ea5f116f14590980e9b8e77327191ddb2c054450499856ca200 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If after assessing the totality of events and circumstances and their potential effect on significant inputs to the fair value determination an entity determines that it is more likely than not that the indefinite-lived intangible asset is impaired, then the entity shall calculate the fair value of the intangible asset and perform the quantitative impairment test in accordance with the following paragraph. ##### [350-30-35-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:eb3c9b3adcc8c5775baf4a2d7a962f2e2f332cb2791e0a64ddb0a7ce8f535c68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The quantitative impairment test for an indefinite-lived intangible asset shall consist of a comparison of the fair value of the asset with its carrying amount. If the carrying amount of an intangible asset exceeds its fair value, an entity shall recognize an impairment loss in an amount equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. ##### [350-30-35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:e4a42fbdaa39570e50f973b93c598c115af15a2bce1b34cefad8dc58cd506fab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent reversal of a previously recognized impairment loss is prohibited. #### Unit of Accounting for Purposes of Testing for Impairment of Intangible Assets Not Subject to Amortization ##### [350-30-35-21](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:466fb46aae54ecf60b9a970ae65f07a4390efaf889e800c80b207b34f61ae106 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Separately recorded indefinite-lived intangible assets, whether acquired or internally developed, shall be combined into a single unit of accounting for purposes of testing impairment if they are operated as a single asset and, as such, are essentially inseparable from one another. ##### [350-30-35-22](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:d080a67220dd809cebc935a5f4e686efc40dbc7639886d90020b195f1ab0e5d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Determining whether several indefinite-lived intangible assets are essentially inseparable is a matter of judgment that depends on the relevant facts and circumstances. The indicators in paragraph [350-30-35-23](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-23) shall be considered in making that determination. None of the indicators shall be considered presumptive or determinative. ##### [350-30-35-23](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:e26b086a032d29117750dd7c7e2386da420d1cbe1a2b68951416e6b8352e64c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Indicators that two or more indefinite-lived intangible assets shall be combined as a single unit of accounting for impairment testing purposes are as follows: 1. a The intangible assets were purchased in order to construct or enhance a single asset (that is, they will be used together). 2. b Had the intangible assets been acquired in the same acquisition they would have been recorded as one asset. 3. c The intangible assets as a group represent the highest and best use of the assets (for example, they yield the highest price if sold as a group). This may be indicated if it is unlikely that a substantial portion of the assets would be sold separately or the sale of a substantial portion of the intangible assets individually would result in a significant reduction in the fair value of the remaining assets as a group. 4. d The marketing or branding strategy provides evidence that the intangible assets are complementary, as that term is used in paragraph [805-20-55-18](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-18). ##### [350-30-35-24](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:7fcf6fd42004ccbe585f2336b400abbf04bc654db7fa60bfb94f28595ea27bfd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Indicators that two or more indefinite-lived intangible assets shall not be combined as a single unit of accounting for impairment testing purposes are as follows: 1. a Each intangible asset generates cash flows independent of any other intangible asset (as would be the case for an intangible asset licensed to another entity for its exclusive use). 2. b If sold, each intangible asset would likely be sold separately. A past practice of selling similar assets separately is evidence indicating that combining assets as a single unit of accounting may not be appropriate. 3. c The entity has adopted or is considering a plan to dispose of one or more intangible assets separately. 4. d The intangible assets are used exclusively by different asset groups (see the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10). 5. e The economic or other factors that might limit the useful economic life of one of the intangible assets would not similarly limit the useful economic lives of other intangible assets combined in the unit of accounting. ##### [350-30-35-25](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:003640c36219bdb62bd54a32f2b8186b3b46dc2bea0e5243c82a88b2868fc7b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-07](https://asc.understandingaccounting.org/updates/asu-2010-07/). ##### [350-30-35-26](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:225e0a04b70c1a10e5231b0c7a2bd24d6eeb3918e4edb072fce513e66f779f87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following shall be included in the determination of the unit of accounting used to test indefinite-lived intangible assets for impairment: 1. a The unit of accounting shall include only indefinite-lived intangible assets—those assets cannot be tested in combination with [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.") or with a finite-lived asset. 2. b The unit of accounting cannot represent a group of indefinite-lived intangible assets that collectively constitute a business or a [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."). 3. c A unit of accounting may include indefinite-lived intangible assets recorded in the separate financial statements of consolidated subsidiaries. As a result, an impairment loss recognized in the consolidated financial statements may differ from the sum of the impairment losses (if any) recognized in the separate financial statements of those subsidiaries. 4. d [Subparagraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-30-35-27](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:975b9339acf9f367ea902950d589e4453288df3ac43a77b059843658535a7003 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, based on a change in the way in which intangible assets are used, an entity combines as a unit of accounting for impairment testing purposes indefinite-lived intangible assets that were previously tested for impairment separately, those intangible assets shall be separately tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) prior to being combined as a unit of accounting. ##### [350-30-35-28](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:48.455Z to 2026-09-10T00:01:48.455Z Record version: sha256:728abe563e07943cb0757270238a98ec71ce344ff3bceccd158d90dd6c908a1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples 10 through 12 (see paragraphs [350-30-55-29 through 55-38](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-29) ) illustrate the determination of the unit of accounting to use in impairment testing. Source downloaded (UTC): 2026-09-10T00:01:58.947Z to 2026-09-10T00:01:58.947Z Record version: sha256:dbe63ffc73fdfd3de6d844bcfa1643f7ca993d7eea7f7dd32678754d4b458bc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/350/30/#45-other-presentation-matters) SEC content: no ##### [350-30-45-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:58.947Z to 2026-09-10T00:01:58.947Z Record version: sha256:2e562fb422f468a312b48abe2664b9ac7c55c8a21b5499544acaacbc6f0f494b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At a minimum, all [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.)") shall be aggregated and presented as a separate line item in the statement of financial position. However, that requirement does not preclude presentation of individual intangible assets or classes of intangible assets as separate line items. ##### [350-30-45-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:58.947Z to 2026-09-10T00:01:58.947Z Record version: sha256:410af07d06665134e081d717dbfc575413294680f411eb7c25b6db75deb8b44f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amortization expense and impairment losses for intangible assets shall be presented in income statement line items within continuing operations as deemed appropriate for each entity. ##### [350-30-45-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:01:58.947Z to 2026-09-10T00:01:58.947Z Record version: sha256:f57178c94c0e1900cb6265270760dc31b0dc2fb254e592d942540276942bd8de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [350-30-35-9 through 35-12](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-9) and [350-30-35-15 through 35-17](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-15) require that an intangible asset be tested for impairment when it is determined that the asset shall no longer be amortized or shall begin to be amortized due to a reassessment of its remaining [useful life](https://asc.understandingaccounting.org/glossary/u/#useful-life "The period over which an asset is expected to contribute directly or indirectly to future cash flows."). An impairment loss resulting from that impairment test shall not be recognized as a change in accounting principle. Source downloaded (UTC): 2026-09-10T00:02:02.470Z to 2026-09-10T00:02:02.470Z Record version: sha256:6559fb8497b7fedc45323f00a59eb14deb66bcad46e621bf6f9f476f2eddeabb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/350/30/#50-disclosure) SEC content: no #### Disclosures in the Period of Acquisition ##### [350-30-50-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:02.470Z to 2026-09-10T00:02:02.470Z Record version: sha256:cdc0503461908575c80209277eae805e1bde4c7e9c2d80b6e98567cc759c718f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For [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.)") acquired either individually or as part of a group of assets (in asset acquisition, a business combination, acquisition by a not-for-profit entity, or a joint venture formation), all of the following information shall be disclosed in the notes to financial statements in the period of acquisition: 1. a For intangible assets subject to amortization, all of the following: 1. 1 The total amount assigned and the amount assigned to any major [intangible asset class](https://asc.understandingaccounting.org/glossary/i/#intangible-asset-class "A group of intangible assets that are similar, either by their nature or by their use in the operations of an entity.") 2. 2 The amount of any significant [residual value](https://asc.understandingaccounting.org/glossary/r/#residual-value "The estimated fair value of an intangible asset at the end of its useful life to an entity, less any disposal costs."), in total and by major intangible asset class 3. 3 The weighted-average amortization period, in total and by major intangible asset class. 2. b For intangible assets not subject to amortization, the total amount assigned and the amount assigned to any major intangible asset class. 3. c The amount of research and development assets acquired in a transaction other than a business combination, an acquisition by a not-for-profit entity, or a joint venture formation and written off in the period and the line item in the income statement in which the amounts written off are aggregated. 4. d For intangible assets with renewal or extension terms, the weighted-average period before the next renewal or extension (both explicit and implicit), by major intangible asset class. This information also shall be disclosed separately for each material business combination or acquisition by a not-for-profit entity or in the aggregate for individually immaterial business combinations or acquisitions by a not-for-profit entity that are material collectively if the aggregate fair values of intangible assets acquired, other than goodwill, are significant. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For [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.)") acquired either individually or as part of a group of assets (in asset acquisition, a business combination, acquisition by a not-for-profit entity, or a joint venture formation), all of the following information shall be disclosed in the notes to financial statements in the period of acquisition: 1. a For intangible assets subject to amortization, all of the following: 1. 1 The total amount assigned and the amount assigned to any major [intangible asset class](https://asc.understandingaccounting.org/glossary/i/#intangible-asset-class "A group of intangible assets that are similar, either by their nature or by their use in the operations of an entity.") 2. 2 The amount of any significant [residual value](https://asc.understandingaccounting.org/glossary/r/#residual-value "The estimated fair value of an intangible asset at the end of its useful life to an entity, less any disposal costs."), in total and by major intangible asset class 3. 3 The weighted-average amortization period, in total and by major intangible asset class. 2. b For intangible assets not subject to amortization, the total amount assigned and the amount assigned to any major intangible asset class. 3. c The amount of research and development assets acquired in a transaction other than a business combination, an acquisition by a not-for-profit entity, or a joint venture formation and written off in the period and the line item in the income statement in which the amounts written off are aggregated. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. 4. d For intangible assets with renewal or extension terms, the weighted-average period before the next renewal or extension (both explicit and implicit), by major intangible asset class. This information also shall be disclosed separately for each material business combination or acquisition by a not-for-profit entity or in the aggregate for individually immaterial business combinations or acquisitions by a not-for-profit entity that are material collectively if the aggregate fair values of intangible assets acquired, other than goodwill, are significant. #### Disclosures for Each Period for Which a Statement of Financial Position Is Presented ##### [350-30-50-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:02.470Z to 2026-09-10T00:02:02.470Z Record version: sha256:97b44841ffd7f0f971380a863965278079e1b8b01372768651e3fbdcf72c9464 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial position is presented: 1. a For intangible assets subject to amortization, all of the following: 1. 1 The gross carrying amount and accumulated amortization, in total and by major intangible asset class 2. 2 The aggregate amortization expense for the period 3. 3 The estimated aggregate amortization expense for each of the five succeeding fiscal years. 2. b For intangible assets not subject to amortization, the total carrying amount and the carrying amount for each major intangible asset class 3. c The entity's accounting policy on the treatment of costs incurred to renew or extend the term of a recognized intangible asset 4. d For intangible assets that have been renewed or extended in the period for which a statement of financial position is presented, both of the following: 1. 1 For entities that capitalize renewal or extension costs, the total amount of costs incurred in the period to renew or extend the term of a recognized intangible asset, by major intangible asset class 2. 2 The weighted-average period before the next renewal or extension (both explicit and implicit), by major intangible asset class. Example 13 (see paragraph [350-30-55-39](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-39)) illustrates these disclosure requirements. #### Disclosures Relating to Impairment Losses ##### [350-30-50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:02.470Z to 2026-09-10T00:02:02.470Z Record version: sha256:028e5ec2784e276a99bd4b33a90ce07a7700def038cd94ec6fb0ee6e988c3d78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each impairment loss recognized related to an intangible asset, all of the following information shall be disclosed in the notes to financial statements that include the period in which the impairment loss is recognized: 1. a A description of the impaired intangible asset and the facts and circumstances leading to the impairment 2. b The amount of the impairment loss and the method for determining fair value 3. c The caption in the income statement or the statement of activities in which the impairment loss is aggregated 4. d If applicable, the segment in which the impaired intangible asset is reported under Topic 280. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For each impairment loss recognized related to an intangible asset, all of the following information shall be disclosed in the notes to financial statements that include the period in which the impairment loss is recognized: 1. a A description of the impaired intangible asset and the facts and circumstances leading to the impairment 2. b The amount of the impairment loss and the method for determining fair value 3. c The caption in the income statement or the statement of activities in which the impairment loss is aggregated 4. d If applicable, the segment in which the impaired intangible asset is reported under Topic 280. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [350-30-50-3A](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:02.470Z to 2026-09-10T00:02:02.470Z Record version: sha256:444fcdd599327c8ad097d831ff6d462e2b57e59f97dd54f727b6ba8c9dc672ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [nonpublic entity](https://asc.understandingaccounting.org/glossary/n/#nonpublic-entity "Any entity that does not meet any of the following conditions: Its debt or equity securities trade in a public market either on a stock exchange (domestic or foreign) or in an over-the-counter market, including securities quoted only locally or regionally. It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It files with a regulatory agency in preparation for the sale of any class of debt or equity securities in a public market. It is required to file or furnish financial statements with the Securities and Exchange Commission. It is controlled by an entity covered by criteria (a) through (d).") is not required to disclose the quantitative information about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by paragraph [820-10-50-2(bbb)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) that relate to the financial accounting and reporting for an indefinite-lived intangible asset after its initial recognition. #### Renewal or Extension of an Intangible Asset's Legal or Contractual Life ##### [350-30-50-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:02.470Z to 2026-09-10T00:02:02.470Z Record version: sha256:d273ec5bb8d145e129420d0cfa37f9d3d6b2c7ca7899bfe3859c12b5f9c8946c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a recognized intangible asset, an entity shall disclose information that enables users of financial statements to assess the extent to which the expected future cash flows associated with the asset are affected by the entity's intent or ability (or both intent and ability) to renew or extend the arrangement. #### Certain Significant Estimates ##### [350-30-50-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:02.470Z to 2026-09-10T00:02:02.470Z Record version: sha256:5a92ad24b26db612413cb4e768e4f8453d0c86dba527428fefb55ecc834f44f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on determining whether disclosures about an estimate of the useful life of an intangible asset are required under paragraph [275-10-50-8](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-8), see paragraph [275-10-50-15A](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-15A). Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:be4342e0d76034da7443c91ccfeae177a96f16c704856c20f4f54a32da288eb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/350/30/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [350-30-55-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:c9ccc3bfdac30e45a9d1cfa439977019e834c44dd71be9cea75c97997a68cb95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This implementation guidance addresses the determination of whether or not an intangible asset meets the definition of a defensive intangible asset. A defensive intangible asset could include any of the following: 1. a An asset that the entity will never actively use 2. b An asset that will be used by the entity during a transition period when the intention of the entity is to discontinue the use of that asset. ##### [350-30-55-1A](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:b9d767810c7c786fa6d381fc86a6ee62f328aa823f528b723e2c73a412e2aaa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [350-30-55-1B](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-1B) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:54386f7f78f978ab016f3be458c2f25a50d07a0d8e6db0c507dcc1b819ad412a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of whether an intangible asset is a defensive intangible asset is based on the intentions of the reporting entity and that determination may change as the reporting entity's intentions change. For example, an intangible asset that was accounted for as a defensive intangible asset on the date of acquisition will cease to be a defensive asset if the entity subsequently decides to actively use the asset). Examples 9C and 9D (see paragraphs [350-30-55-28G through 55-28L](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28G) ) illustrate the determination of whether an acquired intangible asset is a defensive intangible asset. ##### [350-30-55-1C](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-1C) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:53f398b976cb4ea1230fdd3dd401432fc931a420cd2dc228c565be313e532c2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This paragraph provides implementation guidance on paragraph [350-30-35-3(d)](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-3). For a recognized intangible asset, there might continue to be a difference between the useful life of the asset and the period of expected cash flows used to measure the fair value of the asset. However, that difference likely will be limited to situations in which the entity's own assumptions about the period over which the asset is expected to contribute directly and indirectly to the future cash flows of the entity are different from the assumptions market participants would use in pricing the asset. In those situations, it is appropriate for the entity to use its own assumptions because amortization of a recognized intangible asset should reflect the period over which the asset will contribute both directly and indirectly to the expected future cash flows of the entity. #### Example 1: Acquired Customer List ##### [350-30-55-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:ee2297082fec63c1089f0f296fb833c9757b8385ffd6096f5b0970458bbc5526 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:3f0163278b55e760a43d8a16205ea61040a7da3add291990a95dcddcf4165d72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A direct-mail marketing entity acquired a customer list and expects that it will be able to derive benefit from the information on the acquired customer list for at least one year but for no more than three years. ##### [350-30-55-4](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:2d03331b6876c3077413dfb07a76d374e5fd58e45084436d9aae75bbfea4ef8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The customer list would be amortized over 18 months, management's best estimate of its useful life, following the pattern in which the expected benefits will be consumed or otherwise used up. Although the acquiring entity may intend to add customer names and other information to the list in the future, the expected benefits of the acquired customer list relate only to the customers on that list at the date of acquisition (a closed-group notion). The customer list would be reviewed for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 2: Acquired Patent ##### [350-30-55-5](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:597550bd48a81254f36549bc44b4dba0bf6d58df44a4a2f7754c557a0474d216 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-6](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:4e235b67d85c7494474869c22ff55f835e4bde9dcc3edb9e596ad7dbc5404783 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquired patent expires in 15 years. The product protected by the patented technology is expected to be a source of cash flows for at least 15 years. The reporting entity has a commitment from a third party to purchase that patent in 5 years for 60 percent of the fair value of the patent at the date it was acquired, and the entity intends to sell the patent in 5 years. ##### [350-30-55-7](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:936b2e42035c163ba99df9ed252d10fab9120226c5375e337f4320bc5f577491 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The patent would be amortized over its five-year useful life to the reporting entity following the pattern in which the expected benefits will be consumed or otherwise used up. The amount to be amortized is 40 percent of the patent's fair value at the acquisition date ([residual value](https://asc.understandingaccounting.org/glossary/r/#residual-value "The estimated fair value of an intangible asset at the end of its useful life to an entity, less any disposal costs.") is 60 percent). The patent would be reviewed for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 3: Acquired Copyright ##### [350-30-55-8](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:dc992a4b026a3a626a23737e3e22f3a7457f3ecc40b290567553c197ec7ed414 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-9](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:f13efa52caaf226912e96a86cf873d2f91ccd57ce16cf41f378f9c2a5b265ad6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquired copyright has a remaining legal life of 50 years. An analysis of consumer habits and market trends provides evidence that the copyrighted material will generate cash flows for approximately 30 more years. ##### [350-30-55-10](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:0a10bd952f6ce73f8237bd3338ccba1e51dbf72cf3b2d552e7f9c589d0faafb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The copyright would be amortized over its 30-year estimated useful life following the pattern in which the expected benefits will be consumed or otherwise used up and reviewed for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 4: Acquired Broadcast License Deemed to Have an Indefinite Life ##### [350-30-55-11](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:1610f70f89f5a7f8f0eeac35d5e2179069022fc6de65a8f9cfb10cf9c4a7b3e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-12](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:765c8afb75cdad461a8db7c1efa0c9454d4264ca6520b43993cc1a2ff0c7be3b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquired broadcast license expires in five years. The broadcast license is renewable every 10 years if the entity provides at least an average level of service to its customers and complies with the applicable Federal Communications Commission (FCC) rules and policies and the FCC Communications Act of 1934. The license may be renewed indefinitely at little cost and was renewed twice prior to its recent acquisition. The acquiring entity intends to renew the license indefinitely, and evidence supports its ability to do so. Historically, there has been no compelling challenge to the license renewal. The technology used in broadcasting is not expected to be replaced by another technology any time in the foreseeable future. Therefore, the cash flows from that license are expected to continue indefinitely. ##### [350-30-55-13](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:ec9b0026e4b6f9567ba2d6fe6eac1fa689f486a88655f361fdbf9a106669611e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The broadcast license would be deemed to have an indefinite useful life because cash flows are expected to continue indefinitely. Therefore, the license would not be amortized until its useful life is deemed to be no longer indefinite. The license would be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . #### Example 5: Acquired Broadcast License Deemed to Have a Finite Life ##### [350-30-55-14](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:25ac66c6a9b7fa9b02106c0d4f52dc901138d2ec7971d75324f4793baab31384 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-15](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:4e03e22e8b73d449cffefdf3c011a5fb8f47d0ea240ba676f9ce0abf259dbaaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regarding the broadcast license acquired in Example 4 (see paragraph [350-30-55-11](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-11)), the FCC subsequently decides that it will no longer renew broadcast licenses, but rather will auction those licenses. At the time the decision is made, the broadcast license has three years until it expires. The cash flows from that license are expected to continue until the license expires. ##### [350-30-55-16](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:c441184c7a3c64cb5b85b9d06a4cf0eef6bbb41245a4b3e7fad627c73b5af85b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the broadcast license can no longer be renewed, its useful life is no longer indefinite. Thus, the acquired license would be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . The license would then be amortized over its remaining three-year useful life following the pattern in which the expected benefits will be consumed or otherwise used up. Because the license will be subject to amortization, in the future it would be reviewed for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 6: Acquired Airline Route ##### [350-30-55-17](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:32d31625b60d05eca5847fdb5168aa68b8d9947a1ee1d86a5ec10e74b9dbfdb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-18](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:1f0b31b35f4f40cbe9b040ba9e2fd59ede0316ecce9e3c0620530c227508a51d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquired airline route authority from the United States to the United Kingdom expires in three years. The route authority may be renewed every five years, and the acquiring entity intends to comply with the applicable rules and regulations surrounding renewal. Route authority renewals are routinely granted at a minimal cost and have historically been renewed when the airline has complied with the applicable rules and regulations. The acquiring entity expects to provide service to the United Kingdom from its hub airports indefinitely and expects that the related supporting infrastructure (airport gates, slots, and terminal facility leases) will remain in place at those airports for as long as it has the route authority. An analysis of demand and cash flows supports those assumptions. ##### [350-30-55-19](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:cb04dfc6ee9935c74a3c5c165d7e3a8411dd3b8f800feffbad29135500346743 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the facts and circumstances support the acquiring entity's ability to continue providing air service to the United Kingdom from its U.S. hub airports indefinitely, the intangible asset related to the route authority is considered to have an indefinite useful life. Therefore, the route authority would not be amortized until its useful life is deemed to be no longer indefinite and would be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . #### Example 7: Acquired Trademark Deemed to Have an Indefinite Useful Life ##### [350-30-55-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:1afb47a180f9002e0f8a55ae6e7d4806d51d8c5bfbbbd77572355c6335dcb10c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-21](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:49e0fd0e0b805920ee3a8d17d6bc2faba571be692ae444a6ed426aca7443eea8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquired trademark that is used to identify and distinguish a leading consumer product has been a market-share leader for the past eight years. The trademark has a remaining legal life of 5 years but is renewable every 10 years at little cost. The acquiring entity intends to continuously renew the trademark, and evidence supports its ability to do so. An analysis of product life cycle studies; market, competitive, and environmental trends; and brand extension opportunities provides evidence that the trademarked product will generate cash flows for the acquiring entity for an indefinite period of time. ##### [350-30-55-22](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:5f5bebcaae60564adebed8a12275d848d3bfeb540c299c2f4aafb5ae15d24a3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The trademark would be deemed to have an indefinite useful life because it is expected to contribute to cash flows indefinitely. Therefore, the trademark would not be amortized until its useful life is no longer indefinite. The trademark would be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . #### Example 8: Acquired Trademark Determined to Have Reduced Cash Flows ##### [350-30-55-23](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:8bd0f2b08216670dd20f4f8c86d2beaef41901bd8f05395fcd47e5aeb3c1daf8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-24](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:a0fa4163ed5d195ad771200115e2bb29f1830d29642ee68f6095d2e251c28116 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A trademark that distinguished a leading consumer product was acquired 10 years ago. When it was acquired, the trademark was considered to have an indefinite useful life because the product was expected to generate cash flows indefinitely. During the annual impairment test of the intangible asset, the entity determines that unexpected competition has entered the market that will reduce future sales of the product. Management estimates that cash flows generated by that consumer product will be 20 percent less for the foreseeable future; however, management expects that the product will continue to generate cash flows indefinitely at those reduced amounts. ##### [350-30-55-25](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:e7a0234cafaf2ff6d3c680e403ce9c7660c34bd3b92ad18e4cfa99112ecf16cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As a result of the projected decrease in future cash flows, the entity determines that the estimated fair value of the trademark is less than its carrying amount, and an impairment loss is recognized. Because it is still deemed to have an indefinite useful life, the trademark would continue to not be amortized and would continue to be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . #### Example 9: Acquired Trademark No Longer Deemed to Have an Indefinite Life ##### [350-30-55-26](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:102242021d7699b0465b994f0c3fa940b3c7ffeffa5dbdac6485c6ebd8d6c499 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-27](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:367db5b2f48c932d89d184dd6fa821297ee96f903f9c19c198f730cbf6c3f0b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A trademark for a line of automobiles was acquired several years ago in an acquisition of an automobile entity. The line of automobiles had been produced by the acquired entity for 35 years with numerous new models developed under the trademark. At the acquisition date, the acquiring entity expected to continue to produce that line of automobiles, and an analysis of various economic factors indicated there was no limit to the period of time the trademark would contribute to cash flows. Because cash flows were expected to continue indefinitely, the trademark was not amortized. Management recently decided to phase out production of that automobile line over the next four years. ##### [350-30-55-28](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:5b09a32440d5744e1260473e8d710df14344bbf1127e6853621c545abe7d9e36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the useful life of that acquired trademark is no longer deemed to be indefinite, the trademark would be tested for impairment in accordance with paragraphs [350-30-35-18 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-18) . The carrying amount of the trademark after adjustment, if any, would then be amortized over its remaining four-year useful life following the pattern in which the expected benefits will be consumed or otherwise used up. Because the trademark will be subject to amortization, in the future it would be reviewed for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 9A: Acquired Technology License That Renews Annually ##### [350-30-55-28A](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28A) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:8f03cf7ca59f03e11ffb196c55a18971363778aca75c9f1d15dd2e7f20da4058 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-28B](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28B) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:ec1e27dc218eac6c7bd096eb81ef20d3fb90389e3aecad4b2f5d2a95cc620a93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An exclusive, annually renewable technology license with a third party is acquired by an entity that has made significant progress in developing next-generation technology for digital video products. The acquiring entity believes that in two years, after it has completed developing its next-generation products, the acquired technology license will be obsolete because customers will convert to the acquiring entity's products. Market participants, however, are not as advanced in their development efforts and are not aware of the acquiring entity's proprietary development efforts. Thus, those market participants would expect the technology license to be obsolete in three years. The acquiring entity determines that the fair value of the technology license using 3 years of cash flows is $10 million, consistent with the highest and best use of the asset by market participants. ##### [350-30-55-28C](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28C) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:e659485a186257fb59268ecd75bbee30d3bee84ba3aa32b853507f76d0d39144 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In applying paragraph [350-30-35-3(d)](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-3), the acquiring entity would consider its own historical experience in renewing or extending similar arrangements. In this case, the acquiring entity lacks historical experience in renewing or extending similar arrangements. Therefore, in accordance with that paragraph, the entity would consider the assumptions that a market participant would use consistent with the highest and best use of the technology license. However, because the acquiring entity expects to use the technology license until it becomes obsolete in two years, it must adjust the market participants' assumptions for the entity-specific factors in paragraph [350-30-35-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-3), specifically item (a), which requires consideration of the entity's expected use of the asset. As a result, the technology license would be amortized over a two-year period. The technology license would be reviewed for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 9B: Acquired Customer Relationship ##### [350-30-55-28D](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28D) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:a4fb31ff82f4c9187844c3e2ef46c7cbc15b13103929ccc7b92a6422887dcaa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-1 through 35-20](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-1) . ##### [350-30-55-28E](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28E) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:41ebec2bee5c389a11fe09feca2078a6f61909c9af062149bc3f149cd7badb68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An insurance entity acquired 50 customer relationships operating under contracts that are renewable annually. The acquiring entity determines that the fair value of the customer relationship asset is $10 million, considering assumptions (including turnover rate) that a market participant would make consistent with the highest and best use of the asset by market participants. An income approach was used to determine the fair value of the acquired customer relationship asset. ##### [350-30-55-28F](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28F) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:1ecc04701e7739f1ea33d98fcbaea95c1e4a687540ac547ca48d073aea5b693b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In applying paragraph [350-30-35-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-3), the acquiring entity would consider its own historical experience in renewing or extending similar customer relationships. In this case, the acquiring entity concludes that its customer relationships are dissimilar to the acquired customer relationships and, therefore, the acquiring entity lacks historical experience in renewing or extending similar arrangements. Accordingly, the acquiring entity considers turnover assumptions that market participants would make about the renewal or extension of the acquired customer relationships or similar arrangements. Without evidence to the contrary, the acquiring entity expects that the acquired customer relationships will be renewed or extended at the same rate as a market participant would expect, and no other factors would indicate a different useful life is appropriate. Thus, absent any other of the entity-specific factors in paragraph [350-30-35-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-3), in determining the useful life for amortization purposes, the entity shall consider the period of expected cash flows used to measure the fair value of the asset. The customer relationships would be reviewed for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 9C: Trade Name ##### [350-30-55-28G](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28G) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:341cb48ce3142f1ea92f56145d47e6c5fcf77cc16f7a6b5b17b86cc19095729e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the application of the implementation guidance in paragraphs [350-30-55-1 through 55-1B](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-1) on the determination of whether an intangible asset meets the definition of a defensive intangible asset. ##### [350-30-55-28H](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28H) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:548ced4116c04b3689bd9b5aec0e5befb5d6c3f2f0496b4fae29dabeeff03132 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A, a consumer products manufacturer, acquires an entity that sells a product that competes with one of Entity A's existing products. Entity A plans to discontinue the sale of the competing product within the next six months, but will maintain the rights to the trade name, at minimal expected cost, to prevent a competitor from using the trade name. As a result, Entity A's existing product is expected to experience an increase in market share. Entity A does not have any current plans to reintroduce the acquired trade name in the future. ##### [350-30-55-28I](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28I) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:f5cb188db12ffd5ffe403f932c6914ea07f7007a391b54738d8fc138d32a8f1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because Entity A does not intend to actively use the acquired trade name, but intends to hold the rights to the trade name to prevent others from using it, the trade name meets the definition of a defensive intangible asset. #### Example 9D: Internally Developed Software ##### [350-30-55-28J](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28J) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:0e0126191caeaadc7c8560bdae447d03d263dfb6e65f107fb007adc444b497e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the application of the implementation guidance in paragraphs [350-30-55-1 through 55-1B](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-1) on the determination of whether an intangible asset meets the definition of a defensive intangible asset. ##### [350-30-55-28K](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28K) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:78973dc771aaa06ca9e507abd8375d0f23432197d24d24051d4651090c5f8293 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A acquires a group of assets, one of which is billing software developed by the selling entity for its own use. After a six month transition period, Entity A plans to discontinue use of the internally developed billing software. In valuing the billing software in connection with the acquisition, Entity A determines that a market participant would use the billing software, along with other assets in the asset group, for its full remaining economic life—that is, Entity A does not intend to use the asset in a way that is at its highest and best use. Due to the specialized nature of the software, Entity A does not believe the software could be sold to a third party without the other assets acquired. ##### [350-30-55-28L](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-28L) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:b53ccfc698dd371c147531d66a76a78ae5df43bda2bdd0c36136d37eef6ffbca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although Entity A does not intend to actively use the internally developed billing software after a six month transition period, Entity A is not holding the internally developed software to prevent others from using it. Therefore, the internally developed software asset does not meet the definition of a defensive intangible asset. #### Example 10: Easements ##### [350-30-55-29](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:537fd2c8e21ffad42dcf263756cd1e30693f1354029a817a4ed045ce4eed31f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-21 through 35-24](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-21) . ##### [350-30-55-30](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:0be3f0d84b040db77001510d74798dc3613d7a6d094fada8a628769d944252b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A is a distributor of natural gas. Entity A has two self-constructed pipelines, the Northern pipeline and the Southern pipeline. Each pipeline was constructed on land for which Entity A owns perpetual easements that Entity A evaluated under Topic 842 and determined do not meet the definition of a [lease](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") under that Topic (because those easements are perpetual and, therefore, do not convey the right to use the underlying land for a period of time). The Northern pipeline was constructed on 50 easements acquired in 50 separate transactions. The Southern pipeline was constructed on 100 separate easements that were acquired in a business combination and were recorded as a single asset. Although each pipeline functions independently of the other, they are contained in the same [reporting unit](https://asc.understandingaccounting.org/glossary/r/#reporting-unit "The level of reporting at which goodwill is tested for impairment. A reporting unit is an operating segment or one level below an operating segment (also known as a component)."). Operation of each pipeline is directed by a different manager. There are discrete, identifiable cash flows for each pipeline; thus, each pipeline and its related easements represent a separate asset group under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. While Entity A has no current plans to sell or otherwise dispose of any of its easements, Entity A believes that if either pipeline was sold, it would most likely convey all rights under the easements with the related pipeline. ##### [350-30-55-31](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:4d61cca2c2149394e52b759bf4fe0b0032758d9b69c39dc4c2aa84977efb4c9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Based on an evaluation of the circumstances, Entity A would have two units of accounting for purposes of testing the easements for impairment-the collection of easements supporting the Northern pipeline and the collection of easements supporting the Southern pipeline. The 50 easements supporting the Northern pipeline represent a single unit of accounting as evidenced by the fact that they are collectively used together in a single asset group (see paragraphs [360-10-35-23 through 35-26](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-23) ), if acquired in a single transaction, they would have been recorded as one asset, and if sold, they would likely be sold as a group with the related pipeline. For the same reasons, the easements supporting the Southern pipeline would represent a single unit of accounting. ##### [350-30-55-32](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:3cd45f4037e80555964f427331596ab6dde6844ef9d4cb6c63aef9171bdf6d1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the collective land easements underlying the Northern and Southern pipelines generate cash flows independent of one another and are used exclusively by separate asset groups under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10, they should not be combined into a single unit of accounting. #### Example 11: Trade Name ##### [350-30-55-33](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:520df06b09d51bc7a32b77b06ed9b927fb022b3039b57256fe62b5853cd5fa1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-21 through 35-24](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-21) . ##### [350-30-55-34](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:e30c7354cd1a092cee710f0effe1c8aaf7daf8697b40613a3f683619f247784d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity B purchases an international vacuum cleaner manufacturer, Entity A, which sells vacuums under a well-known trade name. The operations of Entity A are conducted through separate legal entities in three countries and each of those legal entities owns the registered trade name used in that country. When the business combination was recorded, Entity B recorded three separate intangible trade name assets because separate financial statements are required to be prepared for each separate legal entity. There are separate identifiable cash flows for each country, and each country represents an asset group under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. A single brand manager is responsible for the Entity A trade name, the value of which is expected to be recovered from the worldwide sales of Entity A's products. ##### [350-30-55-35](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:27dc1877e78c49bcd8507298c3750c3e52ff781dcd00b6c68ed81f5da768a1aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Based on an evaluation of the circumstances, three separately recorded trade name assets would be combined into a single unit of accounting for purposes of testing the acquired trade name for impairment. The three registered trade names were acquired in the same business combination and, absent the requirement to prepare separate financial statements for subsidiaries, would have been recorded as a single asset. The trade name is managed by a single brand manager. If sold, Entity C would most likely sell all three legally registered trade names as a single asset. #### Example 12: Brands ##### [350-30-55-36](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:bfda2c674de8491738bd60072f37fb293997d705397c6ce71e54cacc54552186 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [350-30-35-21 through 35-24](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-21) . ##### [350-30-55-37](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-37) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:7166f0328e02a435b76cba2a721c4057a761b365a44a0e26254ba4e129bd5176 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity Z manufactures and distributes cereals under two different brands, Brand A and Brand B. Both brands were acquired in the same business combination. Entity Z recorded two separate intangible assets representing Brand A and Brand B. Each brand represents a group of complementary indefinite-lived intangible assets including the trademark, the trade dress, and a recipe. Brand A has two underlying trade names for its Honey and Cinnamon cereals. The trade name and recipe of Cinnamon were internally generated subsequent to the acquisition of Brand A. Sales of Honey have decreased while sales of Cinnamon have increased over the past several years. Despite the decline in sales of Honey, the combined sales of Honey and Cinnamon have increased at the levels expected by management. Sales of Brand B also have increased at expected levels. There are discrete cash flows for Honey, Cinnamon, and Brand B, and each represents a separate asset group under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. Both Honey and Cinnamon are managed by one brand manager. A separate brand manager is responsible for Brand B; however, there are some shared resources used by these groups, such as procurement. While Entity Z has no current plans to sell its brands or exit the cereal business, it believes if it ever did, it would exit the cereal business in its entirety. ##### [350-30-55-38](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-38) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:d136ad80653fefdc977edf36dd1b098217fdceaf86b723931352ba6fd49f3b21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Based on an evaluation of the circumstances, Entity Z would have two units of accounting for purposes of testing the acquired brands for impairment. Brand A's purchased Honey and internally generated Cinnamon trademarks should be combined as a single unit of accounting for purposes of impairment testing. The intangible asset associated with the Cinnamon trademark is simply a variation of the previously acquired Brand A Honey trademark. Although they are associated with different asset groups, they are managed by a single brand manager. Entity Z would consider Brand B to be a separate unit of accounting for purposes of testing impairment because that brand is managed separately from Brand A and is used exclusively by a separate asset group under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. #### Example 13: Illustration of Disclosure Requirements ##### [350-30-55-39](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-39) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:d9d01995484c52631a803b3983658cd1da028ecc631d6a82ebfca31165642e71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosure requirements of paragraphs [350-30-50-1 through 50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1) . ##### [350-30-55-40](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-40) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:05.575Z to 2026-09-10T00:02:05.575Z Record version: sha256:2ba03520cba20a81ca4bc850ad8343056738b4a2ab401439f850c78be2cf34e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with paragraph [350-30-50-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-2), the following disclosures would be made by Theta Entity in its December 31, 20X3 financial statements relating to acquired intangible assets. Theta Entity did not incur costs to renew or extend the term of acquired intangible assets during the period ending December 31, 20X3. - ![](https://asc.understandingaccounting.org/asc-img/GUID-9D73994B-77E2-4C03-A884-FCEC021D7C45-low.gif) Note B: Acquired Intangible Assets "As of December 31, 20X3" ($000s) Gross Carrying Amount Accumulated Amortization Amortized intangible assets Trademark " $1,078 " $(66) Unpatented technology 475 (380) Other 90 (30) Total " $1,643 " $(476) Unamortized intangible assets Broadcast licenses " $1,400 " Trademark 600 Total " $2,000 " - ![](https://asc.understandingaccounting.org/asc-img/GUID-7FAF8F65-CCEB-44F7-9155-72C033D7188C-low.gif) Aggregate Amortization Expense: For year ended 12/31/X3 $319 Estimated Amortization Expense: For year ended 12/31/X4 $199 For year ended 12/31/X5 $74 For year ended 12/31/X6 $74 For year ended 12/31/X7 $64 For year ended 12/31/X8 $54 Source downloaded (UTC): 2026-09-10T00:02:08.646Z to 2026-09-10T00:02:08.646Z Record version: sha256:d3842cd19ed1333cabf15895c99b2e4de3853904fbd609b23e8989b545b3cb3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-30-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/350/30/#65-transition-and-open-effective-date-information) SEC content: no ##### [350-30-65-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:08.646Z to 2026-09-10T00:02:08.646Z Record version: sha256:165776eb7ad1f2c6a0080717669d05cd14eb3704977fd42e92ab8cb5b1b03572 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/01/2010 after the end of the transition period stated in FASB Staff Position FAS 142-3, _Determination of the Useful Life of Intangible Assets_. ##### [350-30-65-2](https://asc.understandingaccounting.org/asc/350/30/#350-30-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:08.646Z to 2026-09-10T00:02:08.646Z Record version: sha256:3c03fab3b076aba3f87b7be7129eb9f876b44c1249c730f1fd3faec9339410bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/01/2010 after the end of the transition period stated in EITF Issue No. 08-7, _Accounting for Defensive Intangible Assets_. ##### [350-30-65-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-65-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:08.646Z to 2026-09-10T00:02:08.646Z Record version: sha256:4208b4a88cc4a395c0175a929423528f21783356c93c07681199d40bf5065879 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/26/2015 after the end of the transition period stated in Accounting Standards Update No. 2012-02, _Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment_. Source downloaded (UTC): 2026-09-10T00:02:14.508Z to 2026-09-10T00:02:45.249Z Record version: sha256:d03f4c0f21be62aab909b3d0813d4dc4421760e5db856caddac7387ca9109423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40: Intangibles—Goodwill and Other — Internal-Use Software ### Machine-generated study aids ```json { "summary": "ASC 350-40 governs the accounting for costs of computer software acquired, developed, or modified solely for an entity's internal needs (with no substantive plan to market it externally), and for implementation costs of hosting arrangements that are service contracts. Under current guidance, preliminary project stage costs and training/data conversion costs are expensed, while internal and external direct costs incurred during the application development stage are capitalized (350-40-25-1 through 25-6) once management authorizes and commits funding and completion is probable (350-40-25-12). Capitalized amounts are amortized straight-line beginning when the software is ready for its intended use (350-40-35-4 through 35-6) and tested for impairment under Section 360-10-35.", "key_points": [ "Software is 'internal use' only if it is acquired, internally developed, or modified solely to meet internal needs AND no substantive plan exists or is being developed to market it externally (350-40-15-2A); a past practice of both using and selling software creates a rebuttable presumption the software is intended for sale (350-40-15-2C).", "Preliminary project stage costs are expensed as incurred and application development stage costs are capitalized, while training, data conversion (except access/conversion software), maintenance, general and administrative, and overhead costs are expensed (350-40-25-1 through 25-6; 350-40-30-3).", "Only external direct costs of materials and services, payroll and payroll-related costs of employees devoting time directly to the project, and interest under Subtopic 835-20 may be capitalized (350-40-30-1); multiple-element prices are allocated based on relative standalone price (350-40-30-4).", "Capitalization begins when the preliminary project stage is complete, management with relevant authority authorizes and commits funding, and completion is probable (350-40-25-12), and ceases no later than when the project is substantially complete and ready for its intended use, that is, after all substantial testing (350-40-25-14).", "A hosting arrangement is a software license within this Subtopic only if the customer can take possession of the software at any time without significant penalty and it is feasible to run or host it elsewhere (350-40-15-4A); otherwise it is a service contract whose capitalized implementation costs are amortized over the hosting term and presented in the same income statement, balance sheet, and cash flow lines as the hosting fees (350-40-35-13; 350-40-45-1 through 45-3).", "Amortization is straight-line unless another systematic and rational basis is more representative and begins per module when it is ready for its intended use (350-40-35-4 through 35-6); unamortized costs of replaced software are expensed when the new software is ready for use (350-40-25-15).", "Impairment follows Section 360-10-35; when it is no longer probable the software will be completed and placed in service, the asset is reported at the lower of carrying amount or fair value less costs to sell, with a rebuttable presumption that fair value is zero (350-40-35-1 through 35-3). ASU 2025-06 (effective for annual periods beginning after December 15, 2027; 350-40-65-4) replaces the project-stage model with a probable-to-complete threshold that is not met while significant development uncertainty exists (350-40-25-12A)." ], "categories": [ "Recognition", "Initial measurement", "Subsequent measurement", "Intangibles and goodwill" ], "audience_level": "intermediate", "student_note": "Exam questions almost always hinge on the stage in which a cost was incurred (preliminary = expense, application development = capitalize, postimplementation training/maintenance = expense) and on whether a cloud arrangement conveys a software license under 350-40-15-4A. A common misunderstanding is assuming every cost incurred during the application development stage is capitalized — training and most data conversion costs are expensed based on their nature, not their timing (350-40-55-4).", "related_topics": [ "985-20", "350-30", "360-10", "730-10", "835-20", "720-35" ], "key_concepts": [ "internal-use software", "preliminary project stage", "application development stage", "hosting arrangement that is a service contract", "implementation costs", "significant development uncertainty", "probable-to-complete recognition threshold", "upgrades and enhancements" ] } ``` Source downloaded (UTC): 2026-09-10T00:02:14.508Z to 2026-09-10T00:02:14.508Z Record version: sha256:1004d6ed5c5d155c20989706ae883db93a922e6aaa864c795db65452d368ed3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/40/#00-status) SEC content: no ##### [350-40-00-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:14.508Z to 2026-09-10T00:02:14.508Z Record version: sha256:95a9aecd51d3cb2df1e734398049853a038ebd094081c962949df6e533eaa281 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Hosting ArrangementAmendedAccounting Standards Update No. 2018-1508/29/2018
Hosting ArrangementAddedAccounting Standards Update No. 2015-0504/15/2015
Performance RequirementsAddedAccounting Standards Update No. 2025-0609/18/2025
Preliminary Project StageSupersededAccounting Standards Update No. 2025-0609/18/2025
ProbableAddedAccounting Standards Update No. 2025-0609/18/2025
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2015-0504/15/2015
RevenueAddedAccounting Standards Update No. 2014-0905/28/2014
Standalone PriceAddedAccounting Standards Update No. 2018-1508/29/2018
350-40-05-1AmendedAccounting Standards Update No. 2017-0401/26/2017
350-40-05-1AAddedAccounting Standards Update No. 2017-0401/26/2017
350-40-05-1BAddedAccounting Standards Update No. 2017-0401/26/2017
350-40-05-1 through 05-1BSupersededAccounting Standards Update No. 2018-1508/29/2018
350-40-05-1DAmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-05-1C through 05-1F
AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-05-2 through 05-5
SupersededAccounting Standards Update No. 2017-0401/26/2017
350-40-05-7SupersededAccounting Standards Update No. 2025-0609/18/2025
350-40-05-8SupersededAccounting Standards Update No. 2017-0401/26/2017
350-40-05-9SupersededAccounting Standards Update No. 2017-0401/26/2017
350-40-05-10AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-15-1AmendedAccounting Standards Update No. 2018-1508/29/2018
350-40-15-2AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-15-2AmendedAccounting Standards Update No. 2018-1508/29/2018
350-40-15-2A through 15-2C
AddedAccounting Standards Update No. 2017-0401/26/2017
350-40-15-3 through 15-4AAmendedAccounting Standards Update No. 2018-1508/29/2018
350-40-15-4AmendedAccounting Standards Update No. 2015-0504/15/2015
350-40-15-4CAmendedAccounting Standards Update No. 2018-1508/29/2018
350-40-15-4A through 15-4C
AddedAccounting Standards Update No. 2015-0504/15/2015
350-40-15-4DAddedAccounting Standards Update No. 2018-1508/29/2018
350-40-15-5AmendedAccounting Standards Update No. 2017-0401/26/2017
350-40-15-8AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-15-9AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-25-1AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-25-2SupersededAccounting Standards Update No. 2025-0609/18/2025
350-40-25-3SupersededAccounting Standards Update No. 2025-0609/18/2025
350-40-25-4AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-25-5AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-25-5AmendedAccounting Standards Update No. 2017-0401/26/2017
350-40-25-6 through 25-11
SupersededAccounting Standards Update No. 2025-0609/18/2025
350-40-25-7AmendedAccounting Standards Update No. 2017-0401/26/2017
350-40-25-12AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-25-12AAddedAccounting Standards Update No. 2025-0609/18/2025
350-40-25-13AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-25-16SupersededAccounting Standards Update No. 2015-0504/15/2015
350-40-25-17AddedAccounting Standards Update No. 2016-1912/14/2016
350-40-25-17A through 25-17J
AddedAccounting Standards Update No. 2025-0609/18/2025
350-40-25-18AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-30-1AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-30-4AmendedAccounting Standards Update No. 2018-1508/29/2018
350-40-30-5AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-35-3AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-35-8AmendedAccounting Standards Update No. 2014-0905/28/2014
350-40-35-11 through 35-17
AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-45-1 through 45-3
AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-50-1AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-50-1AmendedAccounting Standards Update No. 2018-1508/29/2018
350-40-50-2AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-50-3AmendedAccounting Standards Update No. 2024-0311/04/2024
350-40-50-3AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-55-3SupersededAccounting Standards Update No. 2025-0609/18/2025
350-40-55-4AmendedAccounting Standards Update No. 2025-0609/18/2025
350-40-55-5 through 55-21
AddedAccounting Standards Update No. 2025-0609/18/2025
350-40-65-1AddedAccounting Standards Update No. 2015-0504/15/2015
350-40-65-2AddedAccounting Standards Update No. 2016-1912/14/2016
350-40-65-3AddedAccounting Standards Update No. 2018-1508/29/2018
350-40-65-4AddedAccounting Standards Update No. 2025-0609/18/2025
Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:ae7ffd07a123765a4d5399a722b37d2e9e717bd0c75dfea3a9897b315bbd6670 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/40/#05-overview-and-background) SEC content: no ##### [350-40-05-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:d3f58cd08636cd6161d56243843960de4d2a30e5261f416c33633e18c52533c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-15](https://asc.understandingaccounting.org/updates/asu-2018-15/). ##### [350-40-05-1A](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:4d8d80ecf309ac2abfb8d67fc9c30445ed31e612da437adacdbedb923446cd7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-15](https://asc.understandingaccounting.org/updates/asu-2018-15/). ##### [350-40-05-1B](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-1B) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:2de95055716ad0ea151a3080d08bfe5796f3e5220253ec0b6eb63789c51ebabf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-15](https://asc.understandingaccounting.org/updates/asu-2018-15/). ##### [350-40-05-1C](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-1C) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:aee579452e07f526af94057ff28a3a86a61756e7efbb52f7801bd6d312f9a26a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Internal-Use Software Subtopic presents guidance in the following Subsections: 1. a General 2. b Implementation Costs of a Hosting Arrangement That Is a Service Contract. ##### [350-40-05-1D](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-1D) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:b966760bf607d7409b2489c52eea677738ac884ba99ec9dac80282f6062ae0a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain costs incurred for computer software developed or obtained for internal use should be capitalized depending on the nature of the costs and the project stage during which they were incurred in accordance with the guidance in Section 350-40-25. Computer software to be sold, leased, or otherwise marketed externally is not considered to be for internal use. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Certain costs incurred for computer software developed or obtained for internal use should be capitalized in accordance with the guidance in Section 350-40-25. Computer software to be sold, leased, or otherwise marketed externally is not considered to be for internal use. ##### [350-40-05-1E](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-1E) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:ecbf0555c18eee00aea100dae8d5e755f455f5064f6b8a71094b33b95cd3c39a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 350-40-30 includes guidance on the types of costs that should be capitalized, including costs for the purchase of internal-use software in a multiple element transaction. ##### [350-40-05-1F](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-1F) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:cfaeb93d89584f6ec063d141b9d0303bd744239edf9e9ac1f09431abfd8a51dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 350-40-35 includes guidance on the following: 1. a How to test the internal-use software for impairment 2. b How to amortize the asset 3. c How to account for software that previously was considered for internal use, but subsequently was marketed. ##### [350-40-05-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:ebfae1965569a1098dae088824162647079491988b6a929c844f6bb0eb545887 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-40-05-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:b664c84b040977eea7cbddca3760926f84d32a93500cc7924d731b53b3ac02fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-40-05-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:082c41aac2eebf34b107732d1ee309036157fbc4a1c2a7b1153162404a7c0938 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-40-05-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:d62a753509604bdac41e7b3c89735a50c725ee4f7ff279e68e56c7c59846d398 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-40-05-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:cdba6c79b491ba17dc8e91172ae785d52522e455a56a24bae9f0f311ad4dbc85 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [350-40-55-1 through 55-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-1) provide examples of when computer software is and is not for internal use. ##### [350-40-05-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:7462e3a599a7fd5db5b0136e8c064d23ee519f24625aa8007ca24808a19ec6a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [350-40-55-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-3) illustrates the various stages and related processes of computer software development. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-05-8](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:fd28c05a7896153ca5ae9fd8fdd4dc93276b8b47c4dc258b2dbd4d727917a9f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ##### [350-40-05-9](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:ea75078429a213cf3d664e57b016d4c491e68235db54dc677acfc02b5dc90eec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-04](https://asc.understandingaccounting.org/updates/asu-2017-04/). ### Implementation Costs of a Hosting Arrangement That Is a Service Contract ##### [350-40-05-10](https://asc.understandingaccounting.org/asc/350/40/#350-40-05-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:17.711Z to 2026-09-10T00:02:17.711Z Record version: sha256:90133af9a56217c1a655db33784f02f71ddb3b3211f367f096b6ff775a388258 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsections of this Subtopic address the accounting for the implementation, setup, and other upfront costs (implementation costs) incurred in a [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that does not meet the criteria in paragraph [350-40-15-4A](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4A). Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:fc62f936683ab006cbd3f70fc6c573993c4895b0f3a8788f716a9daa2c473074 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/40/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-40-15-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:15902de6415f736fd34bb293d65c7b1b658adc31fb3a394b1c0bd36fef48882a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope for this Subtopic. The General Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 350-10-15, with specific transaction qualifications and exceptions noted below and in the Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsection. #### Transactions ##### [350-40-15-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:f83fff2fe264a85cccba648d3151c84194e24f97f4a299bb9fafa9bec7ae401e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections of this Subtopic applies to the following transactions and activities: 1. a Internal-use software 2. b The proceeds of computer software developed or obtained for internal use that is marketed 3. c New internal-use software developed or obtained that replaces previously existing internal-use software 4. d Computer software that consists of more than one component or module. For example, an entity may develop an accounting software system containing three elements: a general ledger, an accounts payable subledger, and an accounts receivable subledger. In this example, each element might be viewed as a component or module of the entire accounting software system. The guidance in this Subtopic shall be applied to individual components or modules. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The guidance in the General Subsections of this Subtopic applies to the following transactions and activities: 1. a Internal-use software 2. b The proceeds of computer software developed or obtained for internal use that is marketed 3. c New internal-use software developed or obtained that replaces previously existing internal-use software 4. d Computer software that consists of more than one component or module. For example, an entity may develop an accounting software system containing three elements: a general ledger, an accounts payable subledger, and an accounts receivable subledger. In this example, each element might be viewed as a component or module of the entire accounting software system. The guidance in this Subtopic shall be applied to individual components or modules. 5. e Costs incurred to develop a website. ##### [350-40-15-2A](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:970c1e1b8ab234fec491a30843ad69f3d98f168b928f027f2ed9f7b0482ee09a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internal-use software has both of the following characteristics: 1. a The software is acquired, internally developed, or modified solely to meet the entity's internal needs. 2. b During the software's development or modification, no substantive plan exists or is being developed to market the software externally. ##### [350-40-15-2B](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-2B) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:42b98d01fafd6ea32f6813b002e7354f9f033b5bb9263290263b65d2e122f9b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A substantive plan to market software externally could include the selection of a marketing channel or channels with identified promotional, delivery, billing, and support activities. To be considered a substantive plan, implementation of the plan should be reasonably possible. Arrangements providing for the joint development of software for mutual internal use (for example, cost-sharing arrangements) and routine market feasibility studies are not substantive plans to market software for purposes of this Subtopic. Both characteristics in paragraph [350-40-15-2A](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-2A) must be met for software to be considered for internal use. ##### [350-40-15-2C](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-2C) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:1bbe0d2f628b28547e90e981c16df63f03e8d414fb63c129f80873cf7ca5117d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity's past practices related to selling software may help determine whether the software is for internal use or is subject to a plan to be marketed externally. For example, an entity in the business of selling computer software often both uses and sells its own software products. Such a past practice of both using and selling computer software creates a rebuttable presumption that any software developed by that entity is intended for sale, lease, or other marketing. ##### [350-40-15-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:fb6f297386fbcd8b9284c0c915b240954beb14f7ed001307182878eccaf8a126 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections of this Subtopic provide guidance on when costs incurred for internal-use computer software are and are not capitalized. ##### [350-40-15-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:3b68ea9f3c42c8c48a7555f410256ef570f9e82a7d7e171edf6eb21ea2f8b47e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions and activities: 1. a Software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process, subject to Subtopic 985-20 2. b Software to be used in research and development, subject to Subtopic 730-10 3. c Software developed for others under a contractual arrangement, subject to contract accounting standards 4. d Accounting for costs of reengineering activities, which often are associated with new or upgraded software applications. 5. e [Subparagraph superseded by Accounting Standards Update No. 2018-15](https://asc.understandingaccounting.org/updates/asu-2018-15/). ##### [350-40-15-4A](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4A) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:1abe748865633c273f6f97244713580399dd3d190a2807c8161e8a2fc6cbb2ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections of this Subtopic applies only to internal-use software that a customer obtains access to in a [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") if both of the following criteria are met: 1. a The customer has the contractual right to take possession of the software at any time during the hosting period without significant penalty. 2. b It is feasible for the customer to either run the software on its own hardware or contract with another party unrelated to the vendor to host the software. ##### [350-40-15-4B](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4B) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:24bb9218390c10cae96c08be17feef2afe5e348980b1df3e14df6302b310e679 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of the guidance in paragraph [350-40-15-4A(a)](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4A), the term _without significant penalty_ contains two distinct concepts: 1. a The ability to take delivery of the software without incurring significant cost 2. b The ability to use the software separately without a significant diminution in utility or value. ##### [350-40-15-4C](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4C) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:77bb359c8a3af84615b2505facd4927a97aa64aaf1ed2113877b1189ea73d634 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Hosting arrangements that do not meet both criteria in paragraph [350-40-15-4A](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4A) are service contracts and do not constitute a purchase of, or convey a license to, software. ##### [350-40-15-4D](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4D) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:49cb4555297cf5a90174ee77f2359662b4df8783ee5fe8e2a78e3550444e00ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Implementation costs of a hosting arrangement that does not meet both criteria in paragraph [350-40-15-4A](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4A) shall be accounted for in accordance with the Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsections of this Subtopic. ##### [350-40-15-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:d41b2b6e7765258600a6dd7398de7113f7615a071bf1145490ea228350d2939c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of computer software that is sold, leased, or otherwise marketed as a separate product or as part of a product or process are within the scope of Subtopic 985-20. For example, software designed for and embedded in a semiconductor chip is included in the scope of that Subtopic because it is an integral part of the product. By contrast, software for internal use, though it may be used in developing a product, is not part of or included in the actual product or service sold. If software is used by the vendor in the production of the product or providing the service but the customer does not acquire the software or the future right to use it, the software is covered by this Subtopic. For example, for a communications entity selling telephone services, software included in a telephone switch is part of the internal equipment used to deliver a service but is not part of the product or service actually being acquired or received by the customer. Paragraph [350-40-55-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-1) includes examples of computer software considered to be for internal use and thus not part of a product or process. Paragraph [350-40-55-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-2) includes examples of when computer software is not for internal use. #### Other Considerations ##### [350-40-15-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:eed9154403f94ef91462ff250859f7de6f9fa02cb6c3aaa160e702b219f3e80d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not change any of the provisions in the following Subtopics: 1. a Subtopic 985-20 2. b Subtopic 720-45. ##### [350-40-15-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:38697b02f367b0c6aaace65ead141768429cf0feffddde6f119769cfe170b573 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following costs of internal-use computer software are included in research and development and shall be accounted for in accordance with the provisions of Subtopic 730-10: 1. a Purchased or leased computer software used in research and development activities where the software does not have alternative future uses 2. b All internally developed internal-use computer software (including software developed by third parties, for example, programmer consultants) in either of the following circumstances: 1. 1 The software is a pilot project (that is, software of a nature similar to a pilot plant as noted in paragraph [730-10-55-1(h)](https://asc.understandingaccounting.org/asc/730/10/#730-10-55-1)). 2. 2 The software is used in a particular research and development project, regardless of whether the software has alternative future uses. ### Implementation Costs of a Hosting Arrangement That Is a Service Contract ##### [350-40-15-8](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:95cb7a73857877e72d513b4723dbede38c925a074ff343f4b63ccfcf8746f70e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific qualifications noted in paragraph [350-40-15-9](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-9). ##### [350-40-15-9](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:20.520Z to 2026-09-10T00:02:20.520Z Record version: sha256:f94aaf73bd10984794c9390dc00d559732fd4d7379b286f9fd336270d01fb0ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsections of this Subtopic provide guidance on when costs incurred to implement a [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that does not meet both criteria in paragraph [350-40-15-4A](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-4A) are and are not capitalized. Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:d5aa80b17a57759280fe22a34c62ac98d61aa4a083625a67809ddbfd6b6de15c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/40/#25-recognition) SEC content: no #### Preliminary Project Stage ##### [350-40-25-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:4d3f95bff65ad34d9a5b05b19912b4ca65d0f4426c362eddcd66fcae8ffa5a18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internal and external costs incurred during the [preliminary project stage](https://asc.understandingaccounting.org/glossary/p/#preliminary-project-stage "When a computer software project is in the preliminary project stage, entities will likely do the following: Make strategic decisions to allocate resources between alternative projects at a given point in time. For example, should programmers develop a new payroll system or direct their efforts toward correcting existing problems in an operating payroll system? Determine the performance requirements (that is, what it is that they need the software to do) and systems requirements for the computer software project it has proposed to undertake. Invite vendors to perform demonstrations of how their software will fulfill an entity's needs. Explore alternative means of achieving specified performance requirements. For example, should an entity make or buy the software? Should the software run on a mainframe or a client server system? Determine that the technology needed to achieve performance requirements exists. Select a vendor if an entity chooses to obtain software. Select a consultant to assist in the development or installation of the software. (P) December 16, 2027; (N) December 16, 2027350-40-65-4Paragraph superseded by Accounting Standards Update No. 2025-06.") shall be expensed as they are incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: The content of paragraph 350-40-25-1 will change upon transition, together with a change in the heading noted below.
> Costs to Be Expensed as Incurred
Internal and external costs incurred prior to meeting the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) shall be expensed as they are incurred. #### Application Development Stage ##### [350-40-25-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:a9c1a8ca0542b3c4120b8197a5a29ed33db2653af789f070bbd26229836f339d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internal and external costs incurred to develop internal-use computer software during the application development stage shall be capitalized. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-40-25-2 will be will be superseded upon transition, together with its heading.
> Application Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-25-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:e2b6c0597aab9a701d0cfd121f932e3b95d6d4c2656157cad65aff7be62322b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to develop or obtain software that allows for access to or conversion of old data by new systems shall also be capitalized. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-25-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:4d437b45a3a5dbed838437068865b4dff6c6254aa424b456785b059c28a41c69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Training costs are not internal-use software development costs and, if incurred during this stage, shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Internal and external training costs are not internal-use software development costs and shall be expensed as incurred. ##### [350-40-25-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-5) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:1c209d364054c1816fac40f0a514847248632f4bb0e564308d8530cca8e851a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Data conversion costs, except as noted in paragraph [350-40-25-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-3), shall be expensed as incurred. The process of data conversion from old to new systems may include purging or cleansing of existing data, reconciliation or balancing of the old data and the data in the new system, creation of new or additional data, and conversion of old data to the new system. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Data conversion costs, except as noted in paragraph [350-40-30-1(d)](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-1), shall be expensed as incurred. The process of data conversion from old to new systems may include purging or cleansing of existing data, reconciliation or balancing of the old data and the data in the new system, creation of new or additional data, and conversion of old data to the new system. #### Postimplementation-Operation Stage ##### [350-40-25-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:4874f449d8062641ddecff57dd0808c3b823723ec8a2081aee48632f6a9649c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internal and external training costs and maintenance costs during the postimplementation-operation stage shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-40-25-6 will be will be superseded upon transition, together with its heading.
> Postimplementation-Operation Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Upgrades and Enhancements ##### [350-40-25-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:0ac87e25a471356773fb81339d78fb06f8bdc620b07921fe3e0ee16a045c450c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upgrades and enhancements are defined as modifications to existing internal-use software that result in additional functionality—that is, modifications to enable the software to perform tasks that it was previously incapable of performing. Upgrades and enhancements normally require new software specifications and may also require a change to all or part of the existing software specifications. In order for costs of specified upgrades and enhancements to internal-use computer software to be capitalized in accordance with paragraphs [350-40-25-8 through 25-10](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-8) , it must be probable that those expenditures will result in additional functionality. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-40-25-7 will be will be superseded upon transition, together with its heading.
> Upgrades and Enhancements
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-25-8](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-8) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:fa1868968f36b53092a01aa4075ea84a0754b54a7303b912e44a68210d5dc8a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internal costs incurred for upgrades and enhancements shall be expensed or capitalized in accordance with paragraphs [350-40-25-1 through 25-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-1) . Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-25-9](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-9) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:0c527784efa6316c2b1395cc4b7a61282db6d588fed707385ca5f423efefa896 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internal costs incurred for maintenance shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-25-10](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-10) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:a3ddd3e64dc30ab3ae3afd299fe1a36f346e6bbfc0f3758431870ef9f071508b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities that cannot separate internal costs on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements shall expense such costs as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-25-11](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-11) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:9a4b539e41169df094d05c275be534a8e7350b7fa4dbafc1557906643344dd14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. External costs incurred under agreements related to specified upgrades and enhancements shall be expensed or capitalized in accordance with paragraphs [350-40-25-1 through 25-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-1) . If maintenance is combined with specified upgrades and enhancements in a single contract, the cost shall be allocated between the elements as discussed in paragraph [350-40-30-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-4) and the maintenance costs shall be expensed over the contract period. However, external costs related to maintenance, unspecified upgrades and enhancements, and costs under agreements that combine the costs of maintenance and unspecified upgrades and enhancements shall be recognized in expense over the contract period on a straight-line basis unless another systematic and rational basis is more representative of the services received. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Capitalization of Cost ##### [350-40-25-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:a09a47fbb309b5538e684242efddba804069bcdb962180f39c8d9e5b64f3ced0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Capitalization of costs shall begin when both of the following occur: 1. a Preliminary project stage is completed. 2. b Management, with the relevant authority, implicitly or explicitly authorizes and commits to funding a computer software project and it is probable that the project will be completed and the software will be used to perform the function intended. Examples of authorization include the execution of a contract with a third party to develop the software, approval of expenditures related to internal development, or a commitment to obtain the software from a third party. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: The content of paragraph 350-40-25-12 will change upon transition, together with a change in the heading noted below.
> Capitalization of Costs
Capitalization of costs shall begin when both of the following occur: 1. a [Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) 2. b Management, with the relevant authority, implicitly or explicitly authorizes and commits to funding a computer software project.Examples of authorization and commitment to funding a computer software project include the execution of a contract with a third party to develop the software, approval of expenditures related to internal development, or a commitment to obtain the software from a third party. 3. c It is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that the project will be completed and the software will be used to perform the function intended (referred to as the probable-to-complete recognition threshold). In evaluating whether the probable-to-complete recognition threshold has been met, an entity shall assess whether there is significant uncertainty associated with the development activities of the software (referred to as significant development uncertainty) in accordance with paragraph [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A). ##### [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:0441a899145e6a39aa38d8629701eb3e1abcd5c53aa8e201ea03efd898b420a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)If significant development uncertainty exists, the probable-to-complete recognition threshold in paragraph [350-40-25-12(c)](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) is not met until that significant development uncertainty has been resolved. Significant development uncertainty exists if either of the following factors is present: 1. a The software being developed has technological innovations or novel, unique, or unproven functions or features, and the uncertainty related to those technological innovations, functions, or features, if identified, has not been resolved through coding and testing. 2. b The significant [performance requirements](https://asc.understandingaccounting.org/glossary/p/#performance-requirements "(P) December 16, 2027; (N) December 16, 2027 350-40-65-4 Performance requirements are what an entity needs the software to do (for example, functions or features).") of the software have not been identified, or the identified significant performance requirements continue to be substantially revised. For some types of software projects, the assessment of whether significant development uncertainty exists will be straightforward, such as illustrated in Example 1 (see paragraphs [350-40-55-5 through 55-8](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-5) ). For other types of software projects, the assessment will be more complex, such as illustrated in Example 3 (see paragraphs [350-40-55-13 through 55-17](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-13) ). If significant development uncertainty does not exist or if there was significant development uncertainty that has been resolved, an entity shall evaluate the requirements in paragraph [350-40-25-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) to determine when to begin capitalizing costs. ##### [350-40-25-13](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-13) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:478d56a82fbeee04dc864ed934573fd1d61f265b7b3a2f17098ad96585e7102c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When it is no longer probable that the computer software project will be completed and placed in service, no further costs shall be capitalized, and guidance in paragraphs [350-40-35-1 through 35-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-1) on impairment shall be applied to existing balances. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)If the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) are no longer met for software being developed, no further costs shall be capitalized, and guidance in paragraphs [350-40-35-1 through 35-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-1) on impairment shall be applied to existing balances. ##### [350-40-25-14](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:82351f22cade0b321c9ce39ae128b805476c5c8f1aa101ee370526f9cf45d7ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Capitalization shall cease no later than the point at which a computer software project is substantially complete and ready for its intended use, that is, after all substantial testing is completed. ##### [350-40-25-15](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:b39ed1f2cf7093ba22667efff0e414a8fba0d7541e4b3f82a55687b2e4dd0dc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. New software development activities shall trigger consideration of remaining useful lives of software that is to be replaced. When an entity replaces existing software with new software, unamortized costs of the old software shall be expensed when the new software is ready for its intended use. ##### [350-40-25-16](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:55a2330de36015af27aae5e6a9447482b0a28df324475e5faa5e89b1996a7ba7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-05](https://asc.understandingaccounting.org/updates/asu-2015-05/). ##### [350-40-25-17](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:878b16aa38b581c0af767945e75d48b9b6e8a21ca7df669db4a15c74c1005ee6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities often license internal-use software from third parties. A software license within the scope of this Subtopic (see paragraphs [350-40-15-1 through 15-4C](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-1)) shall be accounted for as the acquisition of an intangible asset and the incurrence of a liability (that is, to the extent that all or a portion of the software licensing fees are not paid on or before the acquisition date of the license) by the licensee. The intangible asset acquired shall be recognized and measured in accordance with paragraphs [350-30-25-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-25-1) and [350-30-30-1](https://asc.understandingaccounting.org/asc/350/30/#350-30-30-1), respectively. #### Upgrades and Enhancements ##### [350-40-25-17A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17A) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:bf4f25279ab0e8652f2daf37973616f6ac29c15f41a4391f14d28ef7936de478 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Upgrades and enhancements are defined as modifications to existing internal-use software that result in additional functionality—that is, modifications to enable the software to perform tasks that it was previously incapable of performing. Upgrades and enhancements normally require new software specifications and may also require a change to all or part of the existing software specifications. In order for costs of specified upgrades and enhancements to internal-use computer software to be evaluated for capitalization in accordance with paragraphs[350-40-25-17B through 25-17E](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17B) , it must be probable that those expenditures will result in additional functionality. ##### [350-40-25-17B](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17B) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:92f61936a219917310dcff7787a228c01082e8090c0f00925c81b3821606210e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Internal and external costs incurred for upgrades and enhancements shall be expensed or capitalized in accordance with paragraphs [350-40-25-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-1), [350-40-25-4 through 25-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-4) , [350-40-25-12 through 25-14](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) , and [350-40-25-17](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17). ##### [350-40-25-17C](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17C) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:11112373adecbf4341605405d6fbb0be29242fddcaa5906146f0da3f1de41624 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Internal and external costs incurred for maintenance shall be expensed as incurred. ##### [350-40-25-17D](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17D) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:2e2c6d3cba75e1db143b0892aaf7090f148f5646882bda0a84ba0e4fe3aaa811 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Entities that cannot separate internal costs on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements shall expense such costs as incurred. ##### [350-40-25-17E](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17E) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:83e1ffa631b699820b0399255025b04126d13d1c78fb38e271ff6aeb79486edd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)External costs incurred under agreements related to specified upgrades and enhancements shall be expensed or capitalized in accordance with paragraphs [350-40-25-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-1),[350-40-25-4 through 25-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-4) , [350-40-25-12 through 25-14](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) , and [350-40-25-17](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17). If maintenance is combined with specified upgrades and enhancements in a single contract, the cost shall be allocated between the elements as discussed in paragraph [350-40-30-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-4) and the maintenance costs shall be expensed over the contract period. However, external costs related to maintenance, unspecified upgrades and enhancements, and costs under agreements that combine the costs of maintenance and unspecified upgrades and enhancements shall be recognized in expense over the contract period on a straight-line basis unless another systematic and rational basis is more representative of the services received. #### Additional Considerations for Website Development Costs ##### [350-40-25-17F](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17F) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:b7f1006ed0660e4755a0c1bd487c004ba53a91f6c1c6ceddbdc5fda54347aa1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Fees incurred for website hosting, which involve the payment of a specified, periodic fee to an internet service provider in return for hosting the website on its server(s) connected to the internet, generally are expensed over the period of benefit. ##### [350-40-25-17G](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17G) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:64f74b9c1eb7c1a8fa23225d99042d28dc3be3e6ce4b655a0230be206dd0ce32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Accounting for website content involves issues that also apply to other forms of content or information that are not unique to websites. Costs to input content into a website shall be expensed as incurred. Content refers to information included on the website, which may be textual or graphical in nature (although the specific graphics described in paragraph [350-40-25-17H](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17H)are excluded from content). For example, articles, product photos, maps, and stock quotes and charts are all forms of content. Content may reside in separate databases that are integrated into (or accessed from) the web page with software, or it may be coded directly into the web pages. ##### [350-40-25-17H](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17H) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:cca96db433f84743b4d0cf489b816eeae25e23cdb929fb0642ab50db7ba0350b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Graphics are a component of software. The costs of developing initial graphics shall be evaluated for capitalization under this Subtopic for internal-use software, and Subtopic 985-20 for software marketed externally. For purposes of this Subtopic, graphics involve the overall design of the web page (use of borders, background and text colors, fonts, frames, buttons, and so forth) that affect the look and feel of the web page and generally remain consistent regardless of changes made to the content. ##### [350-40-25-17I](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17I) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:2a3fc948c4cb1109989c6eaee91b0c6124a3669059fe6a7761de0aa226825d42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Costs to register the website with internet search engines represent advertising costs and shall be expensed as incurred under paragraph [720-35-25-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-1). ##### [350-40-25-17J](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17J) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:5ccd6d42989742a41ebd8024f2ca60af70a863ad88dd7b1d82d6494259d18c08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)Costs to obtain and register an internet domain shall be evaluated for capitalization under Section 350-30-25. ### Implementation Costs of a Hosting Arrangement That Is a Service Contract ##### [350-40-25-18](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:26.447Z to 2026-09-10T00:02:26.447Z Record version: sha256:bf20a678d36b25c7a061363d2a0531d69b728b1e9d94b279a3a1dbc8180b57ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall apply the General Subsection of this Section as though the [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that is a service contract were an internal-use computer software project to determine when implementation costs of a hosting arrangement that is a service contract are and are not capitalized. Source downloaded (UTC): 2026-09-10T00:02:28.885Z to 2026-09-10T00:02:28.885Z Record version: sha256:3177c19c6fb7c383d3f0ddd4c580e4893c45de777554f8f739f73646cb44665c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/350/40/#30-initial-measurement) SEC content: no #### Capitalizable Cost ##### [350-40-30-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:28.885Z to 2026-09-10T00:02:28.885Z Record version: sha256:39582da305f66e5e8fe960d7e6617add333cba034997605819a032d028518943 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of computer software developed or obtained for internal use that shall be capitalized include only the following: 1. a External direct costs of materials and services consumed in developing or obtaining internal-use computer software. Examples of those costs include but are not limited to the following: 1. 1 Fees paid to third parties for services provided to develop the software during the application development stage 2. 2 Costs incurred to obtain computer software from third parties 3. 3 Travel expenses incurred by employees in their duties directly associated with developing software. 2. b Payroll and payroll-related costs (for example, costs of employee benefits) for employees who are directly associated with and who devote time to the internal-use computer software project, to the extent of the time spent directly on the project. Examples of employee activities include but are not limited to coding and testing during the application development stage. 3. c Interest costs incurred while developing internal-use computer software. Interest shall be capitalized in accordance with the provisions of Subtopic 835-20. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: The content of paragraph 350-40-30-1 will change upon transition, together with a change in the heading noted below.
> Capitalizable Costs
Costs of computer software developed or obtained for internal use that shall be capitalized include only the following: 1. a External direct costs of materials and services consumed in developing or obtaining internal-use computer software. Examples of those costs include but are not limited to the following: 1. 1 Fees paid to third parties for services provided to develop the software 2. 2 Costs incurred to obtain computer software from third parties 3. 3 Travel expenses incurred by employees in their duties directly associated with developing software. 2. b Payroll and payroll-related costs (for example, costs of employee benefits) for employees who are directly associated with and who devote time to the internal-use computer software project, to the extent of the time spent directly on the project. Examples of employee activities include but are not limited to design of chosen path, including software configuration and software interfaces, coding, installation to hardware, and testing, including parallel processing phase. 3. c Interest costs incurred while developing internal-use computer software. Interest shall be capitalized in accordance with the provisions of Subtopic 835-20. 4. d Costs to develop or obtain software that allows for access to or conversion of old data by new systems. ##### [350-40-30-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:28.885Z to 2026-09-10T00:02:28.885Z Record version: sha256:6df9d2b67c703fd4e81b1738c29dca4db50e048d7816785f4fd2a25a3e97c886 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the entity suspends substantially all activities related to the software developed or obtained for internal use, interest capitalization shall cease until activities are resumed. ##### [350-40-30-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:28.885Z to 2026-09-10T00:02:28.885Z Record version: sha256:1a644eec59ebd1c44602961cb327fe709edb7428d5c81e8b382308560c41e75a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. General and administrative costs and overhead costs shall not be capitalized as costs of internal-use software. #### Multiple-Element Arrangements Included in Purchase Price ##### [350-40-30-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:28.885Z to 2026-09-10T00:02:28.885Z Record version: sha256:a2fce733f48dcae9033c891191e1e79ca362ac17577610162fb75dc0469717c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities may purchase internal-use computer software from a third party or may enter into a [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis."). In some cases, the price includes multiple elements, such as the license or hosting, training for the software, maintenance fees for routine maintenance work to be performed by the third party, data conversion costs, reengineering costs, and rights to future upgrades and enhancements. Entities shall allocate the cost among all individual elements. The allocation shall be based on the relative [standalone price](https://asc.understandingaccounting.org/glossary/s/#standalone-price "The price at which a customer would purchase a component of a contract separately.")of the elements in the contract, not necessarily separate prices stated within the contract for each element. Those elements included in the scope of this Subtopic shall be accounted for in accordance with the provisions of this Subtopic. ### Implementation Costs of a Hosting Arrangement That Is a Service Contract ##### [350-40-30-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:28.885Z to 2026-09-10T00:02:28.885Z Record version: sha256:361c9d08154105812bd35b2bdcf44e0a9288f1ad513b6b11a213656941d32136 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall apply the General Subsection of this Section as though the [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that is a service contract were an internal-use computer software project to determine when implementation costs of a hosting arrangement that is a service contract are and are not capitalized. Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:108a9b404df763d9fa6f9aa93015edc0a84a3b5e12649606069c0cb461a95803 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/40/#35-subsequent-measurement) SEC content: no #### Impairment ##### [350-40-35-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:62eec78c9edc49bf73963ca310e55a9f1ed7b959c7bb1d94f9cc77e8b500e692 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Impairment shall be recognized and measured in accordance with the provisions of Section 360-10-35, which requires that assets be grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The guidance is applicable, for example, when one of the following events or changes in circumstances occurs related to computer software being developed or currently in use indicating that the carrying amount may not be recoverable: 1. a Internal-use computer software is not expected to provide substantive service potential. 2. b A significant change occurs in the extent or manner in which the software is used or is expected to be used. 3. c A significant change is made or will be made to the software program. 4. d Costs of developing or modifying internal-use computer software significantly exceed the amount originally expected to develop or modify the software. ##### [350-40-35-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:811cc5be26fe7609482392c7e9d19f60bf8564796b4baef7cad60a45eddede65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [360-10-35-47 through 35-49](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-47) requires that the asset be accounted for as abandoned when it ceases to be used. ##### [350-40-35-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:23a761f212875f9ca648ae58bf687ff6f0b6aca7f3898abbcbe08abd0069adb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When it is no longer probable that computer software being developed will be completed and placed in service, the asset shall be reported at the lower of the carrying amount or fair value, if any, less costs to sell. The rebuttable presumption is that such uncompleted software has a fair value of zero. Indications that the software may no longer be expected to be completed and placed in service include the following: 1. a A lack of expenditures budgeted or incurred for the project. 2. b Programming difficulties that cannot be resolved on a timely basis. 3. c Significant cost overruns. 4. d Information has been obtained indicating that the costs of internally developed software will significantly exceed the cost of comparable third-party software or software products, so that management intends to obtain the third-party software or software products instead of completing the internally developed software. 5. e Technologies are introduced in the marketplace, so that management intends to obtain the third-party software or software products instead of completing the internally developed software. 6. f Business segment or unit to which the software relates is unprofitable or has been or will be discontinued. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)If the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) are no longer met for software being developed, the asset shall be reported at the lower of the carrying amount or fair value, if any, less costs to sell. The rebuttable presumption is that such uncompleted software has a fair value of zero. Indications that the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) are no longer met include the following: 1. a A lack of expenditures budgeted or incurred for the project. 2. b Programming difficulties that cannot be resolved on a timely basis. 3. c Significant cost overruns. 4. d Information has been obtained indicating that the costs of internally developed software will significantly exceed the cost of comparable third-party software or software products, so that management intends to obtain the third-party software or software products instead of completing the internally developed software. 5. e Technologies are introduced in the marketplace, so that management intends to obtain the third-party software or software products instead of completing the internally developed software. 6. f Business segment or unit to which the software relates is unprofitable or has been or will be discontinued. #### Amortization ##### [350-40-35-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:e0bbf218affc2f26a18eda0ed36479af8c1164e2bda7ea7e78119a81e257cce0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The costs of computer software developed or obtained for internal use shall be amortized on a straight-line basis unless another systematic and rational basis is more representative of the software's use. ##### [350-40-35-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:33bda494596eec173a00956be5528d952e823d9986f7c65187c6febb13d5c2c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining and periodically reassessing the estimated [useful life](https://asc.understandingaccounting.org/glossary/u/#useful-life "The period over which an asset is expected to contribute directly or indirectly to future cash flows.") over which the costs incurred for internal-use computer software will be amortized, entities shall consider the effects of all of the following: 1. a Obsolescence 2. b Technology 3. c Competition 4. d Other economic factors 5. e Rapid changes that may be occurring in the development of software products, software operating systems, or computer hardware and whether management intends to replace any technologically inferior software or hardware. Given the history of rapid changes in technology, software often has had a relatively short useful life. ##### [350-40-35-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:3767b47279c75c2ef10d44b12882cc68b228cd156946ef746966f58b1e04710b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each module or component of a software project, amortization shall begin when the computer software is ready for its intended use, regardless of whether the software will be placed in service in planned stages that may extend beyond a reporting period. For purposes of this Subtopic, computer software is ready for its intended use after all substantial testing is completed. If the functionality of a module is entirely dependent on the completion of other modules, amortization of that module shall begin when both that module and the other modules upon which it is functionally dependent are ready for their intended use. #### Internal-Use Computer Software Subsequently Marketed ##### [350-40-35-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:64515612dcb79fd24a6c0f4b5af1c1e25b31fb5b0eadf6450bea2a7fc5ca49cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, after the development of internal-use software is completed, an entity decides to market the software, proceeds received from the license of the computer software, net of direct incremental costs of marketing, such as commissions, software reproduction costs, warranty and service obligations, and installation costs, shall be applied against the carrying amount of that software. ##### [350-40-35-8](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:7823897b984ea9fe58a4862cbcd960732618313244586b49b937a70f8fc3e992 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No profit shall be recognized until aggregate net proceeds from licenses and amortization have reduced the carrying amount of the software to zero. Subsequent proceeds shall be recognized as [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.")in accordance with Topic 606 on revenue from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](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.") or recognized as a gain in accordance with Subtopic 610-20 on derecognition of nonfinancial assets if the contract is not with a customer. ##### [350-40-35-9](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:de65a458e2e85f349f609cba8a7b322cb666ff5e7c8700ebd6a0311df763a9a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, during the development of internal-use software, an entity decides to market the software to others, the entity shall follow the guidance in Subtopic 985-20. Amounts previously capitalized under this Subtopic shall be evaluated at each balance sheet date in accordance with paragraph [985-20-35-4](https://asc.understandingaccounting.org/asc/985/20/#985-20-35-4). Capitalized software costs shall be amortized in accordance with paragraphs [985-20-35-1 through 35-2](https://asc.understandingaccounting.org/asc/985/20/#985-20-35-1) . ##### [350-40-35-10](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:1dd694b2a066aa6cbb47ae0cd92496873d2187050cf5241c5dbc832f003ae55e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A pattern of deciding to market internal-use software during its development creates a rebuttable presumption that any software developed by that entity is intended for sale, lease, or other marketing, and thus is subject to the guidance in Subtopic 985-20. ### Implementation Costs of a Hosting Arrangement That Is a Service Contract #### Impairment ##### [350-40-35-11](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:31309bd29ba129d34f7432fbead4fd208b00ef563f0cf7368f986034e184c802 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Impairment shall be recognized and measured in accordance with the provisions of Section 360-10-35 as if the capitalized implementation costs were a long-lived asset. That guidance requires that assets be grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. The guidance is applicable, for example, when one of the following events or changes in circumstances occurs related to the [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that is a service contract indicating that the carrying amount of the related implementation costs may not be recoverable: 1. a The hosting arrangement is not expected to provide substantive service potential. 2. b A significant change occurs in the extent or manner in which the hosting arrangement is used or is expected to be used. 3. c A significant change is made or will be made to the hosting arrangement. ##### [350-40-35-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:4dd9015e7d38ca88100f717f6b72d471e1de33aeede089a14a1a56ae373f46ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [360-10-35-47 through 35-49](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-47) require that the asset be accounted for as abandoned when it ceases to be used. Implementation costs related to each module or component of a hosting arrangement that is a service contract shall be evaluated separately as to when it ceases to be used. #### Amortization ##### [350-40-35-13](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:7856d469de2a3f0c59905ce0e44d3db5ce37723249d177b2b8864e776f429ce4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Implementation costs capitalized in accordance with the Implementation Costs of a Hosting Arrangement That Is a Service Contract Subsections of this Subtopic shall be amortized over the term of the associated hosting arrangement, considering the guidance in paragraph [350-40-35-17](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-17), on a straight-line basis unless another systematic and rational basis is more representative of the pattern in which the entity expects to benefit from access to the hosted software. This Subsection considers the right to access the hosted software to be equivalent to actual use, which shall not be affected by the extent to which the entity uses, or the expectations about the entity's use of, the hosted software (for example, how many transactions the entity processes or expects to process or how many users access or are expected to access the hosted software). ##### [350-40-35-14](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:6c82f0b959034de04b69b2a3051978a01be22a5e44759c64fcd04e0beb0ba1e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity (customer) shall determine the term of the hosting arrangement that is a service contract as the fixed noncancellable term of the hosting arrangement plus all of the following: 1. a Periods covered by an option to extend the hosting arrangement if the entity (customer) is reasonably certain to exercise that option 2. b Periods covered by an option to terminate the hosting arrangement if the entity (customer) is reasonably certain not to exercise that option 3. c Periods covered by an option to extend (or not to terminate) the hosting arrangement in which exercise of the option is controlled by the vendor. ##### [350-40-35-15](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:e501028ce4ac3dba9d9cca073807c939a73204a3daf0852c41b09c8971b152e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity (customer) shall periodically reassess the estimated term of the arrangement and shall account for any change in the estimated term as a change in accounting estimate in accordance with Topic 250 on accounting changes and error corrections. ##### [350-40-35-16](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:9625adddbe989f57ddba7af8682eee4dad793eae0263b59f9a927b3696f06255 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall consider the effects of all the following when determining the term of the hosting arrangement in accordance with paragraph [350-40-35-14](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-14) and when reassessing the term of the hosting arrangement in accordance with paragraph [350-40-35-15](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-15): 1. a Obsolescence 2. b Technology 3. c Competition 4. d Other economic factors 5. e Rapid changes that may be occurring in the development of hosting arrangements or hosted software 6. f Significant implementation costs that are expected to have significant economic value for the entity (customer) when the option to extend or terminate the hosting arrangement becomes exercisable. ##### [350-40-35-17](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:32.106Z to 2026-09-10T00:02:32.106Z Record version: sha256:15bdab143a0539c07345d158b7f66cf730a16d797fcaabc694d252358bbabd60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each module or component of a hosting arrangement, an entity shall begin amortizing the capitalized implementation costs related to the hosting arrangement that is a service contract when the module or component of the hosting arrangement is ready for its intended use, regardless of whether the overall hosting arrangement will be placed in service in planned stages that may extend beyond a reporting period. For purposes of this Subsection, a hosting arrangement (or a module or component of a hosting arrangement) is ready for its intended use after all substantial testing is completed. If the functionality of a module or component is entirely dependent on the completion of other modules or components, the entity shall begin amortizing the capitalized implementation costs related to that module or component when both that module or component and the other modules or components upon which it is functionally dependent are ready for their intended use. Source downloaded (UTC): 2026-09-10T00:02:34.682Z to 2026-09-10T00:02:34.682Z Record version: sha256:b9224de48c090d0fc0801b0bcf333b08cb66d431c345bb6f7a248d3e332eb8b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/350/40/#45-other-presentation-matters) SEC content: no ### Implementation Costs of a Hosting Arrangement That Is a Service Contract #### Amortization ##### [350-40-45-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:34.682Z to 2026-09-10T00:02:34.682Z Record version: sha256:47a507d3f5bbae4383dd0030a98a046a92bc2343e753f25646e8a34ef40c5aab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present the amortization of implementation costs described in paragraph [350-40-35-13](https://asc.understandingaccounting.org/asc/350/40/#350-40-35-13) in the same line item in the statement of income as the expense for fees for the associated [hosting arrangement](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis."). #### Statement of Financial Position ##### [350-40-45-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:34.682Z to 2026-09-10T00:02:34.682Z Record version: sha256:ee2cc142075fcd59ca28f6914f7451923e72802f2b7ab7e0284b9f5e7737b522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present the capitalized implementation costs described in paragraph [350-40-25-18](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-18) in the same line item in the statement of financial position that a prepayment of the fees for the associated hosting arrangement would be presented. #### Statement of Cash Flows ##### [350-40-45-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:34.682Z to 2026-09-10T00:02:34.682Z Record version: sha256:b1c7b085865f4125c13aa74a2ea8e5334f41942967fd10db70f4014b6bdc794a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall classify the cash flows from capitalized implementation costs described in paragraph [350-40-25-18](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-18) in the same manner as the cash flows for the fees for the associated hosting arrangement. Source downloaded (UTC): 2026-09-10T00:02:37.630Z to 2026-09-10T00:02:37.630Z Record version: sha256:c568dd4acfbac14d7095740ded5e166b45c1cbf5af8bd7c45381b25c6b8c5bae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/350/40/#50-disclosure) SEC content: no ##### [350-40-50-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:37.630Z to 2026-09-10T00:02:37.630Z Record version: sha256:aa0cf4ecbe3dadd100e9bc08673c6e924d42eb374e439d5670c03cfe9de54d6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Subtopic does not require any incremental disclosures. Disclosure shall be made in accordance with existing authoritative literature including the following: 1. a Topic 275 2. b Subtopic 730-10 3. c Topic 235 4. d Subtopic 360-10. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The disclosure requirements in Subtopic 360-10 on property, plant, and equipment apply to capitalized costs accounted for under this Subtopic, regardless of how those costs are presented in the financial statements. For purposes of applying those disclosure requirements, any disclosures in Subtopic 360-10 related to property, plant, and equipment shall be applied to internal-use software costs and related amortization. Additionally, disclosure shall be made in accordance with existing authoritative literature including the following: 1. a Topic 275 2. b Subtopic 730-10 3. c Topic 235 4. d [Subparagraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ### Implementation Costs of a Hosting Arrangement That Is a Service Contract ##### [350-40-50-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:37.630Z to 2026-09-10T00:02:37.630Z Record version: sha256:5551d62ef7d98277d5347d167e05598d9396566de302a95a77959c1065d06f45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the nature of its [hosting arrangements](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that are service contracts. ##### [350-40-50-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:37.630Z to 2026-09-10T00:02:37.630Z Record version: sha256:4a74594bedfa29fa182552b0d768a715bc07b2bc4f7b16597856e2a28726d342 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirements in the General Subsection of this Section are applicable to the capitalized implementation costs of hosting arrangements that are service contracts. An entity shall make the disclosures in Subtopic 360-10 as if the capitalized implementation costs were a separate major class of depreciable asset. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The disclosure requirements in the General Subsection of this Section are applicable to the capitalized implementation costs of hosting arrangements that are service contracts. An entity shall make the disclosures in Subtopic 360-10 as if the capitalized implementation costs were a separate major class of depreciable asset. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:907fec2ed60a3ccf9bc457f1019581911a37cbd5480de4d1dcfdd62cb3eedc30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/350/40/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [350-40-55-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:300a4e984d0791756537871d0c7514211cfa546ec1bff6e6c0a64e9ed12c04ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is a list of examples illustrating when computer software is for internal use: 1. a A manufacturing entity purchases robots and customizes the software that the robots use to function. The robots are used in a manufacturing process that results in finished goods. 2. b An entity develops software that helps it improve its cash management, which may allow the entity to earn more revenue. 3. c An entity purchases or develops software to process payroll, accounts payable, and accounts receivable. 4. d An entity purchases software related to the installation of an online system used to keep membership data. 5. e A travel agency purchases a software system to price vacation packages and obtain airfares. 6. f A bank develops software that allows a customer to withdraw cash, inquire about balances, make loan payments, and execute wire transfers. 7. g A mortgage loan servicing entity develops or purchases computer software to enhance the speed of services provided to customers. 8. h A telecommunications entity develops software to run its switches that are necessary for various telephone services such as voice mail and call forwarding. 9. i An entity is in the process of developing an accounts receivable system. The software specifications meet the entity's internal needs and the entity did not have a marketing plan before or during the development of the software. In addition, the entity has not sold any of its internal-use software in the past. Two years after completion of the project, the entity decided to market the product to recoup some or all of its costs. 10. j A broker-dealer entity develops a software database and charges for financial information distributed through the database. 11. k An entity develops software to be used to create components of music videos (for example, the software used to blend and change the faces of models in music videos). The entity then sells the final music videos, which do not contain the software, to another entity. 12. l An entity purchases software to computerize a manual catalog and then sells the manual catalog to the public. 13. m A law firm develops an intranet research tool that allows firm members to locate and search the firm's databases for information relevant to their cases. The system provides users with the ability to print cases, search for related topics, and annotate their personal copies of the database. ##### [350-40-55-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:1d9dba1babb001d77b28d0cee3732949c0be3452aa8fbd2bba634784d6aea3f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following list provides examples of computer software that is not for internal use: 1. a An entity sells software required to operate its products, such as robots, electronic game systems, video cassette recorders, automobiles, voice-mail systems, satellites, and cash registers. 2. b A pharmaceutical entity buys machines and writes all of the software that allows the machines to function. The pharmaceutical entity then sells the machines, which help control the dispensation of medication to patients and help control inventory, to hospitals. 3. c A semiconductor entity develops software embedded in a microcomputer chip used in automobile electronic systems. 4. d An entity purchases software to computerize a manual catalog and then sells the computer version and the related software to the public. 5. e A software entity develops an operating system for sale and for internal use. Though the specifications of the software meet the entity's internal needs, the entity had a marketing plan before the project was complete. In addition, the entity has a history of selling software that it also uses internally and the plan has a reasonable possibility of being implemented. 6. f An entity is developing software for a point-of-sale system. The system is for internal use; however, a marketing plan is being developed concurrently with the software development. The plan has a reasonable possibility of being implemented. 7. g A telecommunications entity purchases computer software to be used in research and development activities. 8. h An entity incurs costs to develop computer software for another entity under a contract with that other entity. ##### [350-40-55-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:87ba1618acbaa4c20c0b73b40aa49ef48bbab4eca2d57be1c29f47fce4b3112e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following list illustrates the various stages and related processes of computer software development: 1. a [Preliminary project stage](https://asc.understandingaccounting.org/glossary/p/#preliminary-project-stage "When a computer software project is in the preliminary project stage, entities will likely do the following: Make strategic decisions to allocate resources between alternative projects at a given point in time. For example, should programmers develop a new payroll system or direct their efforts toward correcting existing problems in an operating payroll system? Determine the performance requirements (that is, what it is that they need the software to do) and systems requirements for the computer software project it has proposed to undertake. Invite vendors to perform demonstrations of how their software will fulfill an entity's needs. Explore alternative means of achieving specified performance requirements. For example, should an entity make or buy the software? Should the software run on a mainframe or a client server system? Determine that the technology needed to achieve performance requirements exists. Select a vendor if an entity chooses to obtain software. Select a consultant to assist in the development or installation of the software. (P) December 16, 2027; (N) December 16, 2027350-40-65-4Paragraph superseded by Accounting Standards Update No. 2025-06."): 1. 1 Conceptual formulation of alternatives 2. 2 Evaluation of alternatives 3. 3 Determination of existence of needed technology 4. 4 Final selection of alternatives. 2. b Application development stage: 1. 1 Design of chosen path, including software configuration and software interfaces 2. 2 Coding 3. 3 Installation to hardware 4. 4 Testing, including parallel processing phase. 3. c Postimplementation-operation stage: 1. 1 Training 2. 2 Application maintenance. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-40-55-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:880e403f3aeacbd84cdca0b7f0a64d70c81021ae60eb5a94f23d8a24f08d630f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic recognizes that the development of internal-use computer software may not follow the order shown in the preceding list. For example, coding and testing are often performed simultaneously. Regardless, for costs incurred subsequent to completion of the preliminary project stage, the guidance shall be applied based on the nature of the costs incurred, not the timing of their incurrence. For example, while some training may occur in the application development stage, it should be expensed as incurred as required in paragraphs [350-40-25-2 through 25-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-2) . Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)This Subtopic recognizes that certain development activities such as coding and testing are often performed simultaneously. Regardless, for costs incurred subsequent to meeting the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) , the guidance shall be applied based on the nature of the costs incurred, not the timing of their incurrence. For example, while some training may occur subsequent to meeting the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) and before the software project is substantially complete and ready for its intended use, it should be expensed as incurred as required in paragraph [350-40-25-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-4). #### Illustrations ##### [350-40-55-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-5) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:f74849071b5684e6db768ccaedb735af95a2741df3abd6c8d71eb740b233ca68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)On February 1, 20X3, a professional services company starts internal discussions to transform its information technology by implementing an enterprise resource planning system to support finance, human resources, accounting, and client relationships. ##### [350-40-55-6](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:f987c03be682c971174e9b362ab51af1cae5e8f2c76dd0ea62e3286620a650da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)After researching different solutions and performing its due diligence procedures, management executes a contract with a third party on August 1, 20X3, to implement and customize a hybrid solution that offers on-premises software and cloud computing services for the enterprise resource planning system. Within this solution, the third party offers different functionality and features, and the company will have to make customization decisions throughout the development process to select which functionality and features it wants included. ##### [350-40-55-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:5162c5952eb04568bcbf3e1cad1e55bacfdb200e12e6605437835953480e2b12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The company assesses whether the internal and external costs to implement and customize the enterprise resource planning system meet the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) , as follows: 1. a As part of its assessment under paragraph [350-40-25-12(c)](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12), the company evaluates whether there is significant development uncertainty in accordance with paragraph [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A). As of August 1, 20X3, the company determines that: 1. 1 It has identified the significant [performance requirements](https://asc.understandingaccounting.org/glossary/p/#performance-requirements "(P) December 16, 2027; (N) December 16, 2027 350-40-65-4 Performance requirements are what an entity needs the software to do (for example, functions or features).") and does not expect to continue to substantially revise those requirements because the only expected customization is selecting from existing functionality and features. 2. 2 The software being developed does not have technological innovations or novel, unique, or unproven functions or features because the company has selected a developed solution. Therefore, as of August 1, 20X3, the company determines that significant development uncertainty does not exist. 2. b The company evaluates the requirements in paragraph [350-40-25-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) to determine when to begin capitalizing software costs: 1. 1 The company determines that management authorized and committed to funding the software project on August 1, 20X3, when it executed the contract with the third party. 2. 2 Considering all other relevant facts and circumstances (for example, the company has engaged an established and experienced third party to implement and customize the software), as of August 1, 20X3, the company determines that it is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that the software project will be completed and the software will be used to perform the function intended. ##### [350-40-55-8](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-8) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:92fa5bf0f8cdb53ae326a3c0e962a01a9ec249c5e65054d767366bd9f79f4bf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)As a result, on August 1, 20X3, the company determines that the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) are met, and it begins capitalizing eligible software costs, including those related to implementation and customization of the on-premises software license and those related to implementation of the cloud computing service features of the hybrid solution. ##### [350-40-55-9](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-9) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:89960eaa1af16e49e7190d576269079067e03d34e7bdce716cda7daec4c86da9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)A company is in the process of internally developing X-Crowd, which is a mobile application that will allow users to see how crowded a restaurant or store is on the basis of a user’s real-time input. An internet connection is required to be able to access the application. ##### [350-40-55-10](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-10) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:6f33a38a3eb7e4a5f9c3fe369cd73665c97cfd0e16bb9d1db6997ce1552ab0bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)On February 1, 20X1, management approved funding for internal development of the application. However, the company has not yet identified what functions and features would be included in the application. Through November 30, 20X1, the company continues to develop the functions and features of the application, including getting feedback on preliminary product versions from user groups and modifying the development of those functions and features to incorporate the feedback. On December 1, 20X1, management determines that it has identified the significant performance requirements (the significant functions and features it needs the application to have), and it does not anticipate substantial changes to those requirements. Throughout the development of X-Crowd, management determines that the application does not have technological innovations or novel, unique, or unproven functions or features. ##### [350-40-55-11](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-11) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:0d57833dfacef73273ea75fd76d8f9016db2d64df5d104e30e0f2ff827dea822 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The company assesses whether the internal and external costs to develop the application meet the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) , as follows: 1. a As part of its assessment under paragraph [350-40-25-12(c)](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12), the company evaluates whether there is significant development uncertainty in accordance with paragraph [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A). As of February 1, 20X1, the company determines that: 1. 1 It has not yet identified the significant performance requirements. 2. 2 The software being developed does not have technological innovations or novel, unique, or unproven functions or features. Therefore, as of February 1, 20X1, the company determines that significant development uncertainty exists and, in accordance with paragraph [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A), the software project does not meet the requirements to begin capitalizing software costs in paragraph [350-40-25-12(c)](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12). 2. b As of December 1, 20X1, the company determines that: 1. 1 It has identified the significant performance requirements and does not expect to continue to substantially revise those requirements. 2. 2 The software being developed does not have technological innovations or novel, unique, or unproven functions or features. Therefore, as of December 1, 20X1, the company determines that significant development uncertainty has been resolved. 3. c As of December 1, 20X1, the company evaluates the requirements in paragraph [350-40-25-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) to determine when to begin capitalizing software costs: 1. 1 The company determines that management authorized and committed to funding the software project on February 1, 20X1, when it approved funding for internal development of the application. 2. 2 Considering all other relevant facts and circumstances, as of December 1, 20X1, the company determines that it is probable that the software project will be completed and the software will be used to perform the function intended. ##### [350-40-55-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-12) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:fec456a66bd4fe325fa3bdfb6464ebcb27ccd53595f9f2574be7e96902a71eb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)As a result, on December 1, 20X1, the company determines that the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) are met, and it begins capitalizing eligible software costs. ##### [350-40-55-13](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-13) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:6071d0f12e221b922eeb09b464c8f8d6ca6a8e013965521d17abf695e2a7ad3b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)On January 1, 20X1, a software development company starts discussions to develop software with novel functionality. ##### [350-40-55-14](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-14) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:a18a6983fc11961886a927a4e6c2b94966708f2b8de8b99cb1d5faf520206122 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)On February 1, 20X1, management completes its due diligence procedures, approves a budget to internally develop the software, and allocates an internal development team to start developing the novel software. At the time that the company started discussions and management approved a budget, the software still had novel functionality. ##### [350-40-55-15](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-15) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:e2ae23bad0437039d459ee8a8cc60ed59caa3804f994204b1139514d871056ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)On March 1, 20X3, the company resolves the uncertainty related to the novel functionality through coding and testing. Additionally, on March 1, 20X3, the company determines that it does not expect substantial changes to the identified significant performance requirements (the significant functions and features) included in the software. On April 1, 20X3, the company determines that all substantial testing is completed. ##### [350-40-55-16](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-16) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:901f67bf59b38ceea97e5a087c1a42dd54276249b48ac78210383bc6d08775d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The company assesses whether the internal and external costs to develop the software meet the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) , as follows: 1. a As part of its assessment under paragraph [350-40-25-12(c)](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12), the company evaluates whether there is significant development uncertainty in accordance with paragraph [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A). As of February 1, 20X1, the company determines that: 1. 1 It has not yet identified the significant performance requirements. 2. 2 The software being developed has novel functionality and that functionality has not been resolved through coding and testing. Therefore, as of February 1, 20X1, the company determines that significant development uncertainty exists and, in accordance with paragraph [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A), the software project does not meet the requirements to begin capitalizing software costs in paragraph [350-40-25-12(c)](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12). 2. b As of March 1, 20X3, the company determines that: 1. 1 It has identified the significant performance requirements and does not expect to continue to substantially revise those requirements. 2. 2 The uncertainty related to the novel functionality has been resolved through coding and testing. Therefore, as of March 1, 20X3, the company determines that significant development uncertainty has been resolved. 3. c As of March 1, 20X3, the company evaluates the requirements in paragraph [350-40-25-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) to determine when to begin capitalizing software costs: 1. 1 The company determines that management authorized and committed to funding the software project on February 1, 20X1, when it approved a budget and allocated an internal development team. 2. 2 Considering all other relevant facts and circumstances, as of March 1, 20X3, the company determines that it is probable that the software project will be completed and the software will be used to perform the function intended. ##### [350-40-55-17](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-17) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:dbd1ee88828f1fcc75e36cbc582c36ab633a631ecbf818e86f7798add5849217 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)As a result, on March 1, 20X3, the company determines that the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) are met, and it begins capitalizing eligible software costs. On April 1, 20X3, the company determines that the software project is substantially complete and ready for its intended use because all substantial testing has been completed. Therefore, the company ceases capitalizing eligible software costs on April 1, 20X3, in accordance with paragraph [350-40-25-14](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-14). ##### [350-40-55-18](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-18) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:2e0db9963a20b0ab13a0ea5037f8105b9be772ebc742d3177b460ccf60081a22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)An animal rescue organization starts discussions on June 15, 20X5, to develop a website that will be used to share information with users of the organization, including hours of operation, contact details, animals available for adoption, and standard adoption procedures. ##### [350-40-55-19](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-19) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:53a7ae467507a8b62c29ba203005a662df152846dca61229320d2a7f37f8bbd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)After researching different website developers and performing its due diligence procedures, management executes a contract with a third party on August 1, 20X5, to develop a website for the organization. The third party is an established website developer and offers different templates that the organization can use to create its website. In addition to website development fees paid to the third party, the organization incurs costs: 1. a To obtain and register an internet domain 2. b To input content into the website 3. c To develop initial graphics for the website 4. d To register the website with internet search engines 5. e For ongoing website hosting fees. ##### [350-40-55-20](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-20) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:538bd2c8946dd25fb29b513db95ab838bd43e3b51c1513ee69a3769c75956671 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)The organization assesses whether the internal and external costs to develop the website meet the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) , as follows: 1. a As part of its assessment under paragraph [350-40-25-12(c)](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12), the organization evaluates whether there is significant development uncertainty in accordance with paragraph [350-40-25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12A). As of August 1, 20X5, the organization determines that: 1. 1 It has identified the significant performance requirements and does not expect to continue to substantially revise those requirements because the website will be created from existing templates that the organization can use to share the information described in paragraph [350-40-55-18](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-18). 2. 2 The website being developed does not have technological innovations or novel, unique, or unproven functions or features because it will be developed from existing templates. Therefore, as of August 1, 20X5, the organization determines that significant development uncertainty does not exist. 2. b The organization evaluates the requirements in paragraph [350-40-25-12](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) to determine when to begin capitalizing costs: 1. 1 The organization determines that management authorized and committed to funding the development of the website on August 1, 20X5, when it executed the contract with the third party. 2. 2 Considering all other relevant facts and circumstances (for example, the organization has engaged an established and experienced third party to develop the website), as of August 1, 20X5, the organization determines that it is probable that the project will be completed and the website will be used to perform the function intended. ##### [350-40-55-21](https://asc.understandingaccounting.org/asc/350/40/#350-40-55-21) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:39.961Z to 2026-09-10T00:02:39.961Z Record version: sha256:70539ea92dd381345e291fb25922739ef8f77333f0404e1da4ff90458e742fb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)As a result, on August 1, 20X5, the organization determines that the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) are met, and it begins capitalizing eligible costs. In evaluating which costs are eligible for capitalization, the organization determines the following: 1. a Fees paid to the third party for services to develop the website are evaluated for capitalization in accordance with paragraph [350-40-30-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-30-1). 2. b Costs incurred to obtain and register the internet domain are evaluated for capitalization in accordance with paragraph [350-40-25-17J](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17J). 3. c Costs incurred to input content into the website are expensed as incurred in accordance with paragraph [350-40-25-17G](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17G). 4. d Costs incurred to develop initial graphics for the website are evaluated for capitalization in accordance with paragraph [350-40-25-17H](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17H). 5. e Costs incurred to register the website with internet search engines are expensed as incurred in accordance with paragraph [350-40-25-17I](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17I). 6. f Ongoing website hosting fees are expensed over the period of benefit in accordance with paragraph [350-40-25-17F](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-17F). Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:1b64d48da0ce6f79e53d7a752e8e16e2773fa59e27d35f8103f78a4e67df16cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-40-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/350/40/#65-transition-and-open-effective-date-information) SEC content: no ##### [350-40-65-1](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:6b8a3fae11132fc4772d3b5291edd813f810ddb2ee38b74635f2b2a235628759 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 10/26/2017 after the end of the transition period stated in Accounting Standards Update No. 2015-05, _Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement_. ##### [350-40-65-2](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:132d4b75fdfa08306a2938cd6c111d1d0be86c0d9c99fef0c10b14f5a0a4f9d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/17/2019 after the end of the transition period stated in Accounting Standards Update No. 2016-19, _Technical Corrections and Improvements_. ##### [350-40-65-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:4b074ffb073ec11e75837523783bc4b2f8510a725c2d63e4c6725cd948690ecd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 12/14/2022 after the end of the transition period stated in Accounting Standards Update No. 2018-15, _Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract_. #### Transition Related to Accounting Standards Update No. 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software ##### [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:43.475Z to 2026-09-10T00:02:43.475Z Record version: sha256:effd04a6c0274316ae28c38acda994c408cba1c0f9858c2da95600b78b8fa052 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Accounting Standards Update 2025-06](https://asc.understandingaccounting.org/updates/asu-2025-06/) 2029-6-13 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 2027-12-16 The following represents the transition and effective date information related to Accounting Standards Update No. 2025-06, _Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software_: **Effective date and early adoption** 1. a All entities shall apply the pending content that links to this paragraph for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. 2. b Early adoption of the pending content that links to this paragraph is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. If an entity adopts the pending content that links to this paragraph in an interim reporting period, it shall adopt the pending content as of the beginning of the annual reporting period that includes that interim reporting period. **Transition methods** 1. c An entity shall apply the pending content that links to this paragraph using one of the following transition methods: 1. 1 Prospectively to new software costs incurred for all projects, including costs incurred for in-process projects, during annual reporting periods (and interim reporting periods within those annual reporting periods) beginning after the date that the pending content that links to this paragraph is adopted. 2. 2 On a modified transition approach, as follows: 1. i Prospectively to new software costs incurred (for all projects, including costs incurred for in-process projects), excluding those described in (c)(2)(ii), during annual reporting periods (and interim reporting periods within those annual reporting periods) beginning after the date that the pending content that links to this paragraph is adopted. 2. ii For an in-process project that, as of the date that the pending content that links to this paragraph is adopted, the entity determines does not meet the capitalization requirements in paragraphs [350-40-25-12 through 25-12A](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-12) but had met the capitalization requirements before that date, the entity shall derecognize capitalized costs for that in-process project through a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the annual reporting period in which the pending content that links to this paragraph is adopted. 3. 3 Retrospectively through a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the first period presented. **Transition disclosures** 1. d An entity that applies the pending content that links to this paragraph prospectively in accordance with (c)(1) shall provide the transition disclosures required by paragraph [250-10-50-1(a)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1) in both the interim reporting period (if applicable) and the annual reporting period of the change. 2. e An entity that applies the pending content that links to this paragraph using a modified transition approach in accordance with (c)(2) shall provide the transition disclosures required by paragraph [250-10-50-1(a)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1) and the cumulative effect of the change on retained earnings (or other components of equity or net assets in the statement of financial position) as of the beginning of the annual reporting period in which the pending content that links to this paragraph is adopted in both the interim reporting period (if applicable) and the annual reporting period of the change. 3. f An entity that applies the pending content that links to this paragraph retrospectively in accordance with (c)(3) shall provide the transition disclosures required by paragraph [250-10-50-1(a) through (b)(1)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1), (b)(2) for any prior periods retrospectively adjusted, and (b)(3) and (c)(2) in both the interim reporting period (if applicable) and the annual reporting period of the change. Source downloaded (UTC): 2026-09-10T00:02:49.004Z to 2026-09-10T00:03:06.009Z Record version: sha256:60210408c70e8039074f7af7e835e7c0a757af1e8684b171ff785233f89ee961 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50: Intangibles—Goodwill and Other — Website Development Costs ### Machine-generated study aids ```json { "summary": "ASC 350-50 tells you which website development costs get capitalized and which get expensed, organized by five stages: planning, application and infrastructure development, graphics development, content development, and operating. Planning-stage costs, content input costs, data conversion costs, and operating-stage costs are expensed as incurred; website software (including graphics, which are treated as a component of software) is capitalized under ASC 350-40 for internal-use software or ASC 985-20 if a plan exists to market the software externally, and domain registration costs are capitalized under ASC 350-30. The entire Subtopic is superseded by ASU 2025-06 effective for fiscal years beginning after December 16, 2027 (transition guidance in 350-40-65-4).", "key_points": [ "All costs incurred in the planning stage are expensed as incurred, regardless of whether the planning activities relate to software (350-50-25-2).
", "Software used to operate a website is accounted for under Subtopic 350-40 (internal-use software) unless a plan exists or is being developed to market it externally, in which case Subtopic 985-20 applies and costs are expensed until technological feasibility is established (350-50-25-4; 985-20-25-2).", "Website hosting fees paid periodically to an internet service provider are generally expensed over the period of benefit (350-50-25-5); costs of hardware and servers are outside the Subtopic's scope (350-50-15-3).", "Purchased software tools, and internally developed tools during the application development stage, are capitalized unless used in research and development with no alternative future use or as a pilot/specific R&D project (350-50-25-6); costs to obtain and register an internet domain are capitalized under Section 350-30-25 (350-50-25-7).", "Graphics are a component of software: initial graphics development follows 350-40 or 985-20, and post-launch graphics modifications must be evaluated as either maintenance or enhancements (350-50-25-8 through 25-9).", "Costs to input content and data conversion costs are expensed as incurred, but software that integrates a database with the website is capitalized under 350-40-25-2 through 25-4 (350-50-25-11 through 25-13).", "Operating-stage costs are expensed as incurred (350-50-25-14), except upgrades and enhancements that add functionality, which are capitalized under the general model of 350-40-25-7 (or 985-20-25-3 through 25-4 for marketed software); costs to register the website with search engines are advertising costs expensed under 720-35-25-1 (350-50-25-15, 25-17)." ], "categories": [ "Recognition", "Intangibles and goodwill", "Subsequent measurement", "Transition and effective dates" ], "audience_level": "intermediate", "student_note": "Exam questions test the stage-by-stage capitalize/expense pattern: planning and operating costs are expensed, application/infrastructure and graphics software costs are capitalized. The most common misunderstanding is treating graphics and content alike—graphics are software (capitalizable), while costs to input content and convert data are always expensed. Note this Subtopic is superseded by ASU 2025-06 for periods beginning after December 16, 2027.", "related_topics": [ "350-40", "985-20", "350-30", "720-35", "730" ], "key_concepts": [ "website development stages", "planning stage costs", "application and infrastructure development stage", "graphics development", "content development", "operating stage costs", "internal-use software capitalization", "upgrades and enhancements" ] } ``` Source downloaded (UTC): 2026-09-10T00:02:49.004Z to 2026-09-10T00:02:49.004Z Record version: sha256:725ead8cf6320bdec84a6dc7cf67fbe51c7a53d6430cd6085c0da1201a73123d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/50/#00-status) SEC content: no ##### [350-50-00-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:02:49.004Z to 2026-09-10T00:02:49.004Z Record version: sha256:c67dd3f8ef5098930d2534186c51a922b6a6ae4937fe28d14bd1ae78307bfba3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
350-50-05-1SupersededAccounting Standards Update No. 2025-0609/18/2025
350-50-15-1 through 15-3
SupersededAccounting Standards Update No. 2025-0609/18/2025
350-50-25-1 through 25-17
SupersededAccounting Standards Update No. 2025-0609/18/2025
350-50-55-1 through 55-9
SupersededAccounting Standards Update No. 2025-0609/18/2025
Source downloaded (UTC): 2026-09-10T00:02:51.519Z to 2026-09-10T00:02:51.519Z Record version: sha256:51ffaca65f7f74d7bddf66e200ce1d46562c4f8dd0acdcac415b2d606f959820 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/50/#05-overview-and-background) SEC content: no ##### [350-50-05-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-05-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:51.519Z to 2026-09-10T00:02:51.519Z Record version: sha256:9c3ebcf4ab134863db3c82a90a91d4fb1c93b04f95600a1a3a7ce590f2acd113 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for costs incurred to develop a website, including whether to capitalize or expense the following types of costs: 1. a Costs incurred in the planning stage 2. b Costs incurred in the website application and infrastructure development stage 3. c Costs incurred to develop graphics 4. d Costs incurred to develop content 5. e Costs incurred in the operating stage. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:01ccd840a1204f5cfa2b0b6ca15621329463ffde9e75c4a87b02cbda68ea5f96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/50/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-50-15-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-15-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:9540c3396317d37b85796d7cf246a852739f1bd96e5d3124da0a38c26f1419f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 350-10-15, with specific transaction qualifications noted below. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-15-1 will be superseded upon transition, together with its heading.
> Overall Guidance
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Transactions ##### [350-50-15-2](https://asc.understandingaccounting.org/asc/350/50/#350-50-15-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:c26a9262391011f956ae8c7f35b464ad607770b17079608f18d9a8a336915a4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the following transactions and activities: 1. a Costs incurred to develop a website. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-15-2 will be superseded upon transition, together with its heading.
> Transactions
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-15-3](https://asc.understandingaccounting.org/asc/350/50/#350-50-15-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:55.514Z to 2026-09-10T00:02:55.514Z Record version: sha256:5e1b1dca96e8a8c6f647a3b4e433d297605512969cc98ca4723c0544b0847c00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions and activities: 1. a The cost of hardware 2. b Acquisitions of servers and related hardware infrastructure. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:dd0ad1376c46523d06f16e64a5240692b3486e82cbcfec6de94bda4e235b68f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/50/#25-recognition) SEC content: no ##### [350-50-25-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:2751c098ea559ed34b27c177585aca2c298d3e186c4a9af0f5ebbe69dab361b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Section refers to various website development stages. See Section 350-50-55 for details regarding the types of costs and activities incurred during those stages. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Planning Stage ##### [350-50-25-2](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:3ef2f5da19a1bb239f7264f00f588ee23b48e20abd2fe0e9f2a311b3cb44e409 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regardless of whether the website planning activities specifically relate to software, all costs incurred in the planning stage shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-2 will be superseded upon transition, together with its heading.
> Costs Incurred in the Planning Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Website Application and Infrastructure Development Stage ##### [350-50-25-3](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:4dc878e2ca0a7023a95bc698635c160a49d34829358a4d09627cc8e7895dc7ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The discussion of website application and infrastructure development assumes that any software is developed for the entity's internal needs and no plan exists or is being developed to market the software externally. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-3 will be superseded upon transition, together with its heading.
> Costs Incurred in the Website Application and Infrastructure Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-4](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:24e02d6ce614a2ea70390dacd42587485874ff11bc5c03da7d4393174b8fefda Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All costs relating to software used to operate a website shall be accounted for under Subtopic 350-40 unless a plan exists or is being developed to market the software externally. Software for which a plan exists or is being developed to market the software externally is subject to Subtopic 985-20, and costs associated with the development of that software shall be expensed until technological feasibility is established. See paragraph [985-20-25-2](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-2). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-5](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-5) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:236c55a491d6fe4dcc467c38e7b8f046a14624b172c0c66a8a7ff49e300f9e36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees incurred for website hosting, which involve the payment of a specified, periodic fee to an internet service provider in return for hosting the website on its server(s) connected to the internet, generally are expensed over the period of benefit. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-6](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:55ca66111a8d375b982fb54d780d25c97d351552bb28df60367d625702bee00b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred to purchase software tools, or costs incurred during the application development stage for internally developed tools, shall be capitalized unless they are used in research and development and meet either of the following conditions: 1. a They do not have any alternative future uses. 2. b They are internally developed and represent a pilot project or are being used in a specific research and development project (see paragraph [350-40-15-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-15-7)). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-7](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:93c83f1439be8b1f82ad4de861325d0fa94a787e16ba2a7168154fa4b9d4113f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to obtain and register an internet domain shall be capitalized under Section 350-30-25. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Graphics Development Stage ##### [350-50-25-8](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-8) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:b9b64fca83dbfcd0587ca6a1d087272698911bcb1794d201b34776c699c01cc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Graphics are a component of software. The costs of developing initial graphics shall be accounted for under Subtopic 350-40 for internal-use software, and Subtopic 985-20 for software marketed externally. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-8 will be superseded upon transition, together with its heading.
> Costs Incurred in the Graphics Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-9](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-9) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:eef831a426849ae7b3155b5f306d10852e74ce30f2f11e70f54b9567a6057b60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Modifications to graphics after a website is launched shall be evaluated to determine whether the modifications represent maintenance or enhancements of the website. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Content Development Stage ##### [350-50-25-10](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-10) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:a4cd008080713716029eeabab1bbad7eec2a974922dd30acc861fe4fee9e7d25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accounting for website content involves issues that also apply to other forms of content or information that are not unique to websites. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-10 will be superseded upon transition, together with its heading.
> Costs Incurred in the Content Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-11](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-11) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:70b43bc58848b3dff642c2881880f74ce80789e42f1865d3e914fb282888bbf3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to input content into a website shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-12](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-12) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:2624005c4c7bb7e3824900bcbd054eb7a6762e7bb8d2c5192518f6a3facfb1a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Software used to integrate a database with a website shall be capitalized under paragraphs [350-40-25-2 through 25-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-2) . Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-13](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-13) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:9d04d0f8f0fd8787eb45b68e5e1f059a86c18f63f1411f74783afd977fea5d6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Data conversion costs shall be expensed as incurred (see paragraph [350-40-25-5](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-5)). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) #### Costs Incurred in the Operating Stage ##### [350-50-25-14](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-14) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:ced65af8dd9e0c742d40fefa550c4cb3c5e68558517b2e7d5b25b4adea8e1af4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of operating a website shall not be accounted for differently from the costs of other operations; that is, those costs shall be expensed as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-25-14 will be superseded upon transition, together with its heading.
> Costs Incurred in the Operating Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-15](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-15) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:66b37dc9cfe3d715b48fb19adcf273814a0116d4853f0daff92f0e0c6b81f38c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred in the operation stage that involve providing additional functions or features to the website shall be accounted for as, in effect, new software. That is, costs of upgrades and enhancements that add functionality shall be expensed or capitalized based on the general model of paragraph [350-40-25-7](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-7) (which requires certain costs relating to upgrades and enhancements to be capitalized if it is probable that they will result in added functionality) or, for software that is marketed, paragraphs [985-20-25-3 through 25-4](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-3) (which apply a software capitalization model to product enhancements, which include improvements that extend the life or significantly improve the marketability of a product). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-16](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-16) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:62bda0a2f2a16112532f95e67d516cf2efeed0f0d6c51c18e3f8f00feac17d3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of whether a change to website software results in an upgrade or enhancement (if internal-use software), or a product enhancement (if externally marketed software), is a matter of judgment based on the specific facts and circumstances. Paragraph [350-40-25-10](https://asc.understandingaccounting.org/asc/350/40/#350-40-25-10) states that entities that cannot separate internal costs on a reasonably cost-effective basis between maintenance and relatively minor upgrades and enhancements shall expense such costs as incurred. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-25-17](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-17) Pending content: yes Source downloaded (UTC): 2026-09-10T00:02:59.489Z to 2026-09-10T00:02:59.489Z Record version: sha256:c2c0ac19a55f708c4806ffab598a8880600f9fde029142b19e6a30c90856990c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs to register the website with internet search engines represent advertising costs and shall be expensed as incurred under paragraph [720-35-25-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-1). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:8692e10222a21863afa21bf595adcf7a6a4cfc76ac3e10c259f7a04047097f3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-50-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/350/50/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [350-50-55-1](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:9d5b8f5045d773acb9b4bd5ff8c7985439b5392cbf1ff816fc4e2a1608f722e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance describes or provides examples of various activities that take place at different stages of website development. See Section 350-50-25 for the relevant accounting guidance. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-55-1 will be superseded upon transition, together with its heading.
> Implementation Guidance
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-2](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:d4b693c71840b6cdcab35a2ef2823cf4bdfb53191802794062440ede0b50f0af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Planning stage activities include the following: 1. a Develop a business, project plan, or both. This may include identification of specific goals for the website (for example, to provide information, supplant manual processes, conduct e-commerce, and so forth), a competitive analysis, identification of the target audience, creation of time and cost budgets, and estimates of the risks and benefits. 2. b Determine the functionalities (for example, order placement, order and shipment tracking, search engine, email, chat rooms, and so forth) of the website. 3. c Identify necessary hardware (for example, the server) and web applications. Web applications are the software needed for the website's functionalities. Examples of web applications are search engines, interfaces with inventory or other back-end systems, as well as systems for registration and authentication of users, commerce, content management, usage analysis, and so forth. 4. d Determine that the technology necessary to achieve the desired functionalities exists. Factors might include, for example, target audience numbers, user traffic patterns, response time expectations, and security requirements. 5. e Explore alternatives for achieving functionalities (for example, internal versus external resources, custom-developed versus licensed software, company-owned versus third-party-hosted applications and servers). 6. f Conceptually formulate and/or identify graphics and content (see paragraphs [350-50-25-8 through 25-13](https://asc.understandingaccounting.org/asc/350/50/#350-50-25-8) ). 7. g Invite vendors to demonstrate how their web applications, hardware, or service will help achieve the website's functionalities. 8. h Select external vendors or consultants. 9. i Identify internal resources for work on the website design and development. 10. j Identify software tools and packages required for development purposes. 11. k Address legal considerations such as privacy, copyright, trademark, and compliance. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-55-2 will be superseded upon transition, together with its heading.
• > Planning Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-3](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:dc28cb390dd71d0fe352382dba4cab38be2ea1d66e4cfea74fc25ad100ae591c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The website application and infrastructure development stage involves acquiring or developing hardware and software to operate the website. The activities in this stage include the following: 1. a Acquire or develop the software tools required for the development work (for example, HTML editor, software to convert existing data to HTML form, graphics software, multimedia software, and so forth). 2. b Obtain and register an internet domain name. 3. c Acquire or develop software necessary for general website operations, including server operating system software, internet server software, web browser software, and internet protocol software. 4. d Develop or acquire and customize code for web applications (for example, catalog software, search engines, order processing systems, sales tax calculation software, payment systems, shipment tracking applications or interfaces, email software, and related security features). 5. e Develop or acquire and customize database software and software to integrate distributed applications (for example, corporate databases and accounting systems) into web applications. 6. f Develop HTML web pages or develop templates and write code to automatically create HTML pages. 7. g Purchase the web and application server(s), internet connection (bandwidth), routers, staging servers (where preliminary changes to the website are made in a test environment), and production servers (accessible to customers using the website). Alternatively, these services may be provided by a third party via a hosting arrangement. 8. h Install developed applications on the web server(s). 9. i Create initial hypertext links to other websites or to destinations within the website. Depending on the site, links may be extensive or minimal. 10. j Test the website applications (for example, stress testing). Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-55-3 will be superseded upon transition, together with its heading.
• > Application and Infrastructure Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-4](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:326ad24aae34468ba619a6df6c8d624866c3fee9a85483588b9a0f44beb23a2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of this Subtopic, graphics involve the overall design of the web page (use of borders, background and text colors, fonts, frames, buttons, and so forth) that affect the look and feel of the web page and generally remain consistent regardless of changes made to the content. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-55-4 will be superseded upon transition, together with its heading.
• > Graphics Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-5](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-5) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:f7c28ab6d2c36fc49462ddbc575856b8089a545b61a564b7b9e894f9405d8875 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Graphics include the design or layout of each page (that is, the graphical user interface), color, images, and the overall look and feel and usability of the website. Creation of graphics may involve coding of software, either directly or through the use of graphic software tools. The amount of coding depends on the complexity of the graphics. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-6](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:fbcb947ee22cc8f6a34c715975f446258424af46725be194e00df9e5e50408fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Content refers to information included on the website, which may be textual or graphical in nature (although the specific graphics described in paragraph [350-50-55-4](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-4) are excluded from content). For example, articles, product photos, maps, and stock quotes and charts are all forms of content. Content may reside in separate databases that are integrated into (or accessed from) the web page with software, or it may be coded directly into the web pages. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-55-6 will be superseded upon transition, together with its heading.
• > Content Development Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-7](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:06f7e3e22559509a832d3a2c894dd90feea65d11c11f2d24e2b5706d9640843e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Content may be created or acquired to populate databases or web pages. Content may be acquired from unrelated parties or may be internally developed. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-8](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-8) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:c8e1bbcde1d35c3e8bf8e7e77e201b4df210175225c90fde3c259af3ab4af90b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Content is text or graphical information (exclusive of graphics described in paragraphs [350-50-55-4 through 55-5](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-4) ) on the website which may include information on the entity, products offered, information sources that the user subscribes to, and so forth. Content may originate from databases that must be converted to HTML pages or databases that are linked to HTML pages through integration software. Content also may be coded directly into web pages. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) ##### [350-50-55-9](https://asc.understandingaccounting.org/asc/350/50/#350-50-55-9) Pending content: yes Source downloaded (UTC): 2026-09-10T00:03:03.306Z to 2026-09-10T00:03:03.306Z Record version: sha256:56d4782633c5fbf5ae391856c265aec94f1aa00ad481603e501c84ff84c7328f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred during the operating stage include training, administration, maintenance, and other costs to operate an existing website. Activities in the operating stage include the following: 1. a Train employees involved in support of the website. 2. b Register the website with internet search engines. 3. c Perform user administration activities. 4. d Update site graphics (for updates of graphics related to major enhancements, see \[h\]). 5. e Perform regular backups. 6. f Create new links. 7. g Verify that links are functioning properly and update existing links (that is, link management or maintenance). 8. h Add additional functionalities or features. 9. i Perform routine security reviews of the website and, if applicable, of the third-party host. 10. j Perform usage analysis. Transition date:(P) December 16, 2027; (N) December 16, 2027Transition guidance: [350-40-65-4](https://asc.understandingaccounting.org/asc/350/40/#350-40-65-4)
Editor's Note: Paragraph 350-50-55-9 will be superseded upon transition, together with its heading.
• > Operating Stage
[Paragraph superseded by Accounting Standards Update No. 2025-06.](https://asc.understandingaccounting.org/updates/asu-2025-06/) Source downloaded (UTC): 2026-09-10T00:03:09.498Z to 2026-09-10T00:03:31.443Z Record version: sha256:b31e928672015a00f3bfa94b034207290fca6eaa8aafb927bf511f5eab65eff8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60: Intangibles—Goodwill and Other — Crypto Assets ### Machine-generated study aids ```json { "summary": "ASC 350-60 governs the subsequent measurement, presentation, and disclosure of in-scope crypto assets (e.g., bitcoin-type fungible tokens). The core rule is that such assets are measured at fair value on the balance sheet with remeasurement gains and losses recognized in net income (350-60-35-1), replacing the old indefinite-lived intangible impairment-only model. Initial measurement, recognition, and derecognition remain governed by other GAAP (350-60-05-2).", "key_points": [ "Scope is limited to holdings that meet all six criteria in 350-60-15-1: they meet the definition of an intangible asset; give no enforceable rights to or claims on underlying goods, services, or other assets; are created or reside on a blockchain or similar distributed ledger; are secured through cryptography; are fungible; and are not created or issued by the reporting entity or its related parties.", "The Subtopic applies to all entities holding crypto assets (350-60-15-2) but does not address initial measurement, recognition, or derecognition, which follow other GAAP (350-60-05-2).", "Crypto assets are measured at fair value in the statement of financial position, with remeasurement gains and losses included in net income (350-60-35-1).", "Crypto assets must be presented separately from other intangible assets on the balance sheet, and remeasurement gains and losses separately from changes in the carrying amount of other intangible assets (350-60-45-1 through 45-2); more disaggregated presentation is permitted.", "Interim and annual disclosures include, for each significant holding, the name, cost basis, fair value, and number of units held, plus aggregated cost bases and fair values of holdings that are not individually significant (350-60-50-1).", "Annual disclosures include the cost basis method used to compute gains and losses (e.g., FIFO, specific identification, average cost) and the income statement line item if gains and losses are not presented separately (350-60-50-2), plus an aggregate opening-to-closing reconciliation showing additions, dispositions, gains, and losses determined on a crypto-asset-by-crypto-asset basis (350-60-50-3).", "Crypto assets subject to contractual sale restrictions require interim and annual disclosure of their fair value, the nature and remaining duration of the restriction, and circumstances that could cause it to lapse (350-60-50-6)." ], "categories": [ "Subsequent measurement", "Fair value", "Presentation", "Disclosure" ], "audience_level": "intermediate", "student_note": "This is the ASU 2023-08 fix that ended the much-criticized impairment-only model for bitcoin and similar tokens; the common trap is assuming it covers all digital assets — NFTs (nonfungible), wrapped tokens or stablecoins conveying enforceable claims on underlying assets, and self-issued tokens are all outside the scope of 350-60-15-1.", "related_topics": [ "350-30", "820", "230-10", "606", "825" ], "key_concepts": [ "crypto assets", "fair value measurement", "fungible intangible assets", "distributed ledger", "remeasurement gains and losses", "cost basis method", "contractual sale restrictions", "rollforward reconciliation" ] } ``` Source downloaded (UTC): 2026-09-10T00:03:09.498Z to 2026-09-10T00:03:09.498Z Record version: sha256:985892aaa4f0733ea95047bab3ec5d025d9976c123cdce331810ae45d9a5078c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/60/#00-status) SEC content: no ##### [350-60-00-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:09.498Z to 2026-09-10T00:03:09.498Z Record version: sha256:2fe204efb78daaad4f3d30d0c5c6872276474365fa17f9e654b6c2b5fae13589 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContributionAddedAccounting Standards Update No. 2023-0812/13/2023
Conditional ContributionAddedAccounting Standards Update No. 2023-0812/13/2023
CustomerAddedAccounting Standards Update No. 2023-0812/13/2023
Donor-Imposed ConditionAddedAccounting Standards Update No. 2023-0812/13/2023
Fair Value (2nd def.)AddedAccounting Standards Update No. 2023-0812/13/2023
Inherent ContributionAddedAccounting Standards Update No. 2023-0812/13/2023
Intangible Asset ClassAddedAccounting Standards Update No. 2023-0812/13/2023
Intangible AssetsAddedAccounting Standards Update No. 2023-0812/13/2023
Market ParticipantsAddedAccounting Standards Update No. 2023-0812/13/2023
Not-for-Profit EntityAddedAccounting Standards Update No. 2023-0812/13/2023
Orderly TransactionAddedAccounting Standards Update No. 2023-0812/13/2023
Promise to GiveAddedAccounting Standards Update No. 2023-0812/13/2023
Related PartiesAddedAccounting Standards Update No. 2023-0812/13/2023
Unconditional Promise to GiveAddedAccounting Standards Update No. 2023-0812/13/2023
350-60-05-1AddedAccounting Standards Update No. 2023-0812/13/2023
350-60-05-2AddedAccounting Standards Update No. 2023-0812/13/2023
350-60-15-1AddedAccounting Standards Update No. 2023-0812/13/2023
350-60-15-2AddedAccounting Standards Update No. 2023-0812/13/2023
350-60-35-1AddedAccounting Standards Update No. 2023-0812/13/2023
350-60-45-1 through 45-3
AddedAccounting Standards Update No. 2023-0812/13/2023
350-60-50-1 through 50-7
AddedAccounting Standards Update No. 2023-0812/13/2023
350-60-65-1AddedAccounting Standards Update No. 2023-0812/13/2023
Source downloaded (UTC): 2026-09-10T00:03:11.686Z to 2026-09-10T00:03:11.686Z Record version: sha256:c5bd87ef9426aa25642fbe15ebc60ab7c55108f0ed1273482ae6b378a9c9aff6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/60/#05-overview-and-background) SEC content: no ##### [350-60-05-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:11.686Z to 2026-09-10T00:03:11.686Z Record version: sha256:f005640f1d0528b87e90f26a004ad7a2f03415e09bcf73a1c25b3c6167674c18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the subsequent measurement, presentation, and disclosure of crypto assets that are within the scope of this Subtopic. ##### [350-60-05-2](https://asc.understandingaccounting.org/asc/350/60/#350-60-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:11.686Z to 2026-09-10T00:03:11.686Z Record version: sha256:d00cbcd94b217417b1c48301af0c47c6f9c04a2d81d07cf644ea84566735887a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not address the initial measurement, recognition, and derecognition of crypto assets. Reporting entities shall account for the initial measurement, recognition, and derecognition of crypto assets in accordance with other generally accepted accounting principles (GAAP). Source downloaded (UTC): 2026-09-10T00:03:13.633Z to 2026-09-10T00:03:13.633Z Record version: sha256:755335fc6791ce0ab561e138828ca3ce9fec296bc1df2fbaf24194ec31e25fa9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/60/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-60-15-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:13.633Z to 2026-09-10T00:03:13.633Z Record version: sha256:a9b5d2b40a6a16f87a447d8e7971f00fefca7831e8621121a398ba49a5641a02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to holdings of assets that meet all of the following criteria: 1. a Meet the definition of [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.)") as defined in the Codification 2. b Do not provide the asset holder with enforceable rights to or claims on underlying goods, services, or other assets 3. c Are created or reside on a distributed ledger based on blockchain or similar technology 4. d Are secured through cryptography 5. e Are fungible 6. f Are not created or issued by the reporting entity or its [related parties](https://asc.understandingaccounting.org/glossary/r/#related-parties "Related parties include: Affiliates of the entity Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management Principal owners of the entity and members of their immediate families Management of the entity and members of their immediate families Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests."). #### Entities ##### [350-60-15-2](https://asc.understandingaccounting.org/asc/350/60/#350-60-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:13.633Z to 2026-09-10T00:03:13.633Z Record version: sha256:4dc92ae70d03fcabdefca6125a7fc5b49cfca2476557aedf70149332215726c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities that hold crypto assets. Source downloaded (UTC): 2026-09-10T00:03:20.817Z to 2026-09-10T00:03:20.817Z Record version: sha256:e2dd0b6d3f0457d130d4bc84955bb9146d491dbb754d0cfd1f82060c32d8fb04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/60/#35-subsequent-measurement) SEC content: no ##### [350-60-35-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:20.817Z to 2026-09-10T00:03:20.817Z Record version: sha256:9287fcb3f90cccc72dd895438bcc76accacbb52ab4e0d65f3e5eea8b587b5c87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall measure crypto assets at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") in the statement of financial position. Gains and losses from the remeasurement of crypto assets shall be included in net income. Source downloaded (UTC): 2026-09-10T00:03:23.550Z to 2026-09-10T00:03:23.550Z Record version: sha256:ad24f4f8021f804f4c034bea1d88949a77979890653b765382e8edfb50e61a5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/350/60/#45-other-presentation-matters) SEC content: no #### Statement of Financial Position ##### [350-60-45-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:23.550Z to 2026-09-10T00:03:23.550Z Record version: sha256:74feb746a34efaba1e8c187634977777c426333f6d2dd446707d5d6a7500fb55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Crypto assets shall be presented separately from other [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.)") in the statement of financial position. An entity is permitted to present crypto assets on a more disaggregated basis (for example, by individual crypto asset holding or [intangible asset class](https://asc.understandingaccounting.org/glossary/i/#intangible-asset-class "A group of intangible assets that are similar, either by their nature or by their use in the operations of an entity.")). #### Income Statement ##### [350-60-45-2](https://asc.understandingaccounting.org/asc/350/60/#350-60-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:23.550Z to 2026-09-10T00:03:23.550Z Record version: sha256:05d2a773f94a3ed190f0e9d1db933bcc9d515dc6bac4ef1ec0ad6cea51ce959c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains and losses from the remeasurement of crypto assets shall be included in net income and presented separately from changes in the carrying amount of other intangible assets. #### Statement of Cash Flows ##### [350-60-45-3](https://asc.understandingaccounting.org/asc/350/60/#350-60-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:23.550Z to 2026-09-10T00:03:23.550Z Record version: sha256:8ab30de890d46070aac1e023682562832d8977dbf5369eff58a6551333e56844 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance related to the presentation of cash receipts arising from the sale of crypto assets that are received as noncash consideration in the ordinary course of business (or as a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution."), in the case of a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.")) and are converted nearly immediately into cash, see paragraphs [230-10-45-21A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21A) and [230-10-45-27A](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-27A). Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:0903286d0ed5f4d999122decde1635bb95587590a8e2af5247d0d11268d97c2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/350/60/#50-disclosure) SEC content: no ##### [350-60-50-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:5afe9d5caf7c38fafe7d3f8ccb38c167b56698c9a7eaec59deea9c6c7d3216b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At interim and annual reporting periods, an entity shall disclose the following for each significant (as determined by the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.")) crypto asset holding: 1. a Name of the crypto asset 2. b Cost basis 3. c Fair value 4. d Number of units held. An entity shall disclose the aggregated cost bases and fair values of the crypto asset holdings that are not individually significant. ##### [350-60-50-2](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:5e1d55bfb7535110b64e1637f5210ed2780b2db1fe8d41d9a060350c69b29abc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At annual reporting periods, an entity shall disclose both of the following: 1. a The method used to determine its cost basis for computing gains and losses (for example, first-in, first-out; specific identification; average cost; or other method used) 2. b If not presented separately, the line item in which gains and losses are reported in the income statement. ##### [350-60-50-3](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:9b8b84ff6603d7c918a2c2b3e3f24e9e929db9dba61e2265382dfc2d167c78e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At annual reporting periods, an entity shall provide a reconciliation, in the aggregate, of activity from the opening to the closing balances of crypto assets, separately disclosing changes during the period attributable to the following: 1. a Additions. 2. b Dispositions. 3. c Gains included in net income for the period, determined on a crypto-asset-by-crypto-asset basis. Each crypto asset holding that has a net gain from remeasurement as included in net income for the period shall be included in the gains line. 4. d Losses included in net income for the period, determined on a crypto-asset-by-crypto-asset basis. Each crypto asset holding that has a net loss from remeasurement as included in net income for the period shall be included in the losses line. ##### [350-60-50-4](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:09d0e1ad90165cbac2ba03d1c6594e76d0762343c9d51f3ee8c07c6b196033b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information about the reconciliation in paragraph [350-60-50-3](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-3): 1. a A description of the nature of activities that result in additions (for example, purchases, receipts from [customers](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."), or mining activities) and dispositions (for example, sales or use as payment for services) 2. b Total amount of cumulative realized gains and cumulative realized losses from dispositions that occurred during the period. ##### [350-60-50-5](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:a466c4aa4a6f93525b2c0b6cc85a12ade53a70b65b86c13ee3a9f182022d9871 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that receives crypto assets as noncash consideration in the ordinary course of business (or as a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution."), in the case of a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.")) that are converted nearly immediately into cash need not include that activity in the disclosures required by paragraphs [350-60-50-3 through 50-4](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-3) . ##### [350-60-50-6](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:4835152cae04520a0dfd12732a3d9a9dc4b67d16edd35d7a125e580260057178 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For interim and annual reporting periods, an entity shall disclose the following information for crypto assets subject to contractual sale restrictions at the balance sheet date: 1. a The fair value of the crypto assets that are subject to contractual sale restrictions 2. b The nature and remaining duration of the restriction(s) 3. c Circumstances that could cause the restriction(s) to lapse. ##### [350-60-50-7](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:25.691Z to 2026-09-10T00:03:25.691Z Record version: sha256:91132aaf1b3c84f3a939b450401da1eac217ad848f99897a3198d86323a956a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In providing the required disclosures in paragraph [350-60-50-6](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-6), an entity with multiple crypto assets subject to contractual sale restrictions shall consider all of the following: 1. a The level of detail necessary to satisfy the required disclosures 2. b How much emphasis to place on each of the required disclosures 3. c How much aggregation or disaggregation to undertake 4. d Whether users of financial statements need additional information to evaluate the quantitative information disclosed. Source downloaded (UTC): 2026-09-10T00:03:27.423Z to 2026-09-10T00:03:27.423Z Record version: sha256:5228162f0783401af3b7380c79641a34d9f42472321f628e03760ba3c88e5a6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-60-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/350/60/#65-transition-and-open-effective-date-information) SEC content: no ##### [350-60-65-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:27.423Z to 2026-09-10T00:03:27.423Z Record version: sha256:bb3c1ec54c9fcc804e08d30f8cd8dd82827f198ec0ed3a69a0daf45b352871dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/02/2026 after the end of the transition period stated in Accounting Standards Update No. 2023-08, _Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets_. Source downloaded (UTC): 2026-09-10T00:03:35.089Z to 2026-09-10T00:03:43.707Z Record version: sha256:c0549ae8a134d4a72de8fe02192e13fc1622d117d1b23a70cc1cfc6a3a6c0d9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-908: Intangibles—Goodwill and Other — Airlines ### Machine-generated study aids ```json { "summary": "ASC 350-908 tells airlines how to account for purchased take-off and landing slots. Because the Department of Transportation permits airlines to sell or trade slots, a purchased slot is a salable right recorded as an intangible asset under Topic 350 (350-908-25-1). Slots acquired by exchanging slots with another airline are nonmonetary assets measured under Topic 845 and then accounted for under Topic 350 (350-908-35-2).", "key_points": [ "Take-off and landing slots purchased by an airline are recorded as intangible assets and accounted for in conformity with Topic 350 (350-908-25-1).", "Slots have value because airports are at capacity and DOT policy makes slots transferable by sale or exchange, turning them into salable rights (350-908-05-2).", "In determining the useful life of slots, an airline must consider, in addition to the Topic 350 factors: the pace of change and airport competition, uncertainty about continued government policy on slot sales, terms of existing airport facility leases, probability of new airport construction serving the same metro area, and traffic patterns/trends and local operating restrictions (350-908-35-1).", "Slots received in an airline-to-airline slot exchange are nonmonetary assets recorded in conformity with Topic 845 and thereafter accounted for under Topic 350 (350-908-35-2).", "Acquisition of an international airline route authority is illustrated in Example 6 at paragraph 350-30-55-17 (350-908-25-1).", "The Subtopic follows the same scope and scope exceptions as the airlines Overall Subtopic, Section 908-10-15 (350-908-15-1)." ], "categories": [ "Intangibles and goodwill", "Industry-specific", "Recognition", "Subsequent measurement" ], "audience_level": "intermediate", "student_note": "This is a short industry overlay: the real work is done by Topic 350 (and Topic 845 for exchanges), and this Subtopic only adds airline-specific useful-life factors. A common misunderstanding is assuming slots are automatically indefinite-lived — regulatory and competitive factors in 350-908-35-1 must be evaluated, and the guidance covers purchased or exchanged slots, not internally obtained ones.", "related_topics": [ "350-30", "845", "908-10", "805", "350-20" ], "key_concepts": [ "take-off and landing slots", "intangible assets", "useful life determination", "nonmonetary exchange", "airline route authority", "indefinite-lived intangibles", "airport gates" ] } ``` Source downloaded (UTC): 2026-09-10T00:03:35.089Z to 2026-09-10T00:03:35.089Z Record version: sha256:3107beb4e355079797b371cfe705768247b1b7a4f8cca824e26dca88a36fb809 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-908-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/908/#05-overview-and-background) SEC content: no ##### [350-908-05-1](https://asc.understandingaccounting.org/asc/350/908/#350-908-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:35.089Z to 2026-09-10T00:03:35.089Z Record version: sha256:a19c4dbef03a7f8b8a0f8ba74efc3a4dc52e241a4c52c265eca4e1ed4332c946 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides accounting guidance for take-off and landing slots for entities in the airline industry. ##### [350-908-05-2](https://asc.understandingaccounting.org/asc/350/908/#350-908-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:35.089Z to 2026-09-10T00:03:35.089Z Record version: sha256:272cebb6a440b57bae3d218de7d8db4c12989eb36b2ea03ebc1741eb47e12fbb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. New entrants to a market and airlines expanding in markets need gates and take-off and landing slots available to them at the airports in those markets. At certain airports, the frequency of take-offs and landings at all times is generally at capacity. At other airports, the slots during popular travel times are at capacity. Because an airline cannot enter a market where no slots are available, the Department of Transportation has adopted a rule under which airlines may sell or trade slots. These transactions frequently include the sale of or access to gates for the acquiring airlines. Although slots, particularly those in high-demand time periods, have always had intrinsic value, the Department of Transportation policy of transferability through sale or exchange has made the slot a salable right. Source downloaded (UTC): 2026-09-10T00:03:36.943Z to 2026-09-10T00:03:36.943Z Record version: sha256:52b2b3213abe5994006ca7183f3dbb21406d650b63eca099a9ba91b89b4caf92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-908-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/908/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-908-15-1](https://asc.understandingaccounting.org/asc/350/908/#350-908-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:36.943Z to 2026-09-10T00:03:36.943Z Record version: sha256:8f965cb3871437d79eebcdd354f9af13f846fa95b6f398075339ca2cc4f4a801 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 908-10-15. Source downloaded (UTC): 2026-09-10T00:03:40.815Z to 2026-09-10T00:03:40.815Z Record version: sha256:69ffc928babfed8f249d8af40efbbaa30e9a92f885440b297010f4c6939656be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-908-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/908/#25-recognition) SEC content: no #### Take-off and Landing Slots ##### [350-908-25-1](https://asc.understandingaccounting.org/asc/350/908/#350-908-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:40.815Z to 2026-09-10T00:03:40.815Z Record version: sha256:153edcff62490e164ba30e2a65b4488dad98d4824786367d9e3d06eaa1c308bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When airlines buy take-off and landing slots, the recorded asset is an intangible asset that shall be accounted for in conformity with Topic 350. See also Example 6 (paragraph [350-30-55-17](https://asc.understandingaccounting.org/asc/350/30/#350-30-55-17)) for guidance with respect to the acquisition of an international airline route authority. Source downloaded (UTC): 2026-09-10T00:03:43.707Z to 2026-09-10T00:03:43.707Z Record version: sha256:df34675b6dbc90c3c79d153444e5d342d4876c55f08d3f1479710f1fbad2d354 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-908-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/908/#35-subsequent-measurement) SEC content: no #### Take-Off and Landing Slots ##### [350-908-35-1](https://asc.understandingaccounting.org/asc/350/908/#350-908-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:43.707Z to 2026-09-10T00:03:43.707Z Record version: sha256:2d4fcc6c00500631dd0d14972d22de75269cb2ce6fdd7f1b31c6cb4c524b2bb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When determining a useful life of take-off and landing slots, the following factors shall be considered, in addition to the factors indicated in Topic 350: 1. a The accelerated pace of change in the airline industry and the effects of competition among airports 2. b The uncertainty of the continuation of the current governmental policy regarding sale of and access to landing slots 3. c The terms of existing facility leases at airports 4. d The probability of new airport construction to serve the same metropolitan area 5. e The traffic patterns and trends and local operating restrictions. ##### [350-908-35-2](https://asc.understandingaccounting.org/asc/350/908/#350-908-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:43.707Z to 2026-09-10T00:03:43.707Z Record version: sha256:3c99e47c542e641cc5d1685d6e5884ce14de370a8d3752e70ef9bc8c17d1bf57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an airline exchanges slots with another airline, the slots acquired in the exchange are nonmonetary assets that shall be recorded in conformity with Topic 845 and accounted for in accordance with Topic 350. Source downloaded (UTC): 2026-09-10T00:03:46.608Z to 2026-09-10T00:04:16.226Z Record version: sha256:97c143bb5100866863edb817ec8a48cb8c6d982d525443350466a39142560481 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920: Intangibles—Goodwill and Other — Entertainment—Broadcasters ### Machine-generated study aids ```json { "summary": "This Subtopic tells a broadcaster (licensee) how to account for rights acquired under a license agreement for program material: when to recognize the asset and related liability, at what amounts to record them, and how to amortize and test them for impairment. The core rule is that the license is treated as a purchase of a right or group of rights, recognized when the license period begins and three cost/acceptance/availability conditions are met, then amortized based on estimated future showings and carried at the lower of unamortized cost or fair value. It also governs accounting for terminated network affiliation agreements.", "key_points": [ "A broadcaster shall account for a program license agreement and any exhibition rights acquired as a purchase of a right or group of rights (350-920-25-1).", "An asset and liability are reported when the license period begins and all three conditions are met: cost of each program is known or reasonably determinable, the material has been accepted by the licensee, and the program is available for its first showing or telecast (350-920-25-2).", "Capitalized cost is measured under one of the methods in 920-405-30-1 and allocated to individual programs in a package based on relative value to the broadcaster; the asset is reported at the lower of unamortized cost or fair value on a program-by-program, series, package, or daypart basis (350-920-30-1 through 30-3).", "Amortization is based on the estimated number of future showings, except licenses for unlimited showings of cartoons and similar programs, which may be amortized over the agreement period; feature programs are amortized program-by-program and series as a series, with an accelerated method if the first showing is more valuable (350-920-35-1 through 35-2).", "A license agreement that is part of a film group is tested for impairment under 926-20-35-12 and 926-20-35-12B; otherwise under 920-350-35-3, and a writeoff from unamortized cost to fair value establishes a new cost basis (350-920-35-2A, 35-3).", "On termination of a network affiliation agreement not immediately replaced, the unamortized balance is charged to expense; if immediately replaced, a loss is recognized only to the extent unamortized cost exceeds the fair value of the new affiliation, and no gain is recognized (350-920-40-1).", "Required disclosures include amortization and impairment methods and units of account, aggregate amortization expense and its income statement caption, and the portion of capitalized license costs expected to be amortized in each of the next three operating cycles (350-920-50-1 through 50-4)." ], "categories": [ "Recognition", "Subsequent measurement", "Impairment", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Watch the recognition trigger: the licensee capitalizes the full asset and liability when the license period begins and the program is available for its first telecast — not as installment payments are made — and the fee is owed whether or not the rights are ever exercised. A common misunderstanding is treating these agreements as executory contracts or leases rather than as a purchase of rights.", "related_topics": [ "920-350", "920-405", "926-20", "920-10", "280", "220-40" ], "key_concepts": [ "program license agreement", "broadcaster licensee", "capitalized program rights", "estimated number of future showings", "lower of unamortized cost or fair value", "network affiliation agreement", "film group impairment", "daypart" ] } ``` Source downloaded (UTC): 2026-09-10T00:03:46.608Z to 2026-09-10T00:03:46.608Z Record version: sha256:c095fa018f18422fc5d60ce323e2686cea00b9ec1e261a8988248661b185c631 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/920/#00-status) SEC content: no ##### [350-920-00-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:46.608Z to 2026-09-10T00:03:46.608Z Record version: sha256:a71b42c1df4e929765ebe6effe6f692071fe8dcbd6c0ab895749ab3366b6c99f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
FilmsAddedAccounting Standards Update No. 2019-0203/06/2019
Film GroupAddedAccounting Standards Update No. 2019-0203/06/2019
920-350-30-3AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-35-1AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-35-2AAddedAccounting Standards Update No. 2019-0203/06/2019
920-350-35-3AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-45-1AmendedAccounting Standards Update No. 2019-0203/06/2019
920-350-50-1 through 50-4
AddedAccounting Standards Update No. 2019-0203/06/2019
920-350-50-2AmendedAccounting Standards Update No. 2024-0311/04/2024
920-350-50-4AmendedAccounting Standards Update No. 2024-0311/04/2024
Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:ea7b23aa0f8f85596d181bd2284ff80be7cdad617b9766dde39d59164339ad6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/920/#05-overview-and-background) SEC content: no ##### [350-920-05-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:0173ee5a5c54427daac9c0898edc727b43c680dba1f2f1308124cc77ef818b19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and reporting by a [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") licensee for the rights acquired under a [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material. Guidance is provided on: 1. a When to recognize the asset acquired under such license agreements in the financial statements 2. b At what amounts to record the asset 3. c Amortization of the capitalized amounts recorded. Guidance also is provided in this Subtopic on the accounting for [network affiliation agreements](https://asc.understandingaccounting.org/glossary/n/#network-affiliation-agreement "A broadcaster may be affiliated with a network under a network affiliation agreement. Under the agreement, the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in network programming. Program costs, a major expense of television stations, are generally lower for a network affiliate than for an independent station because an affiliate does not incur program costs for network programs.") that are terminated. ##### [350-920-05-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:ec346516ca9320d02fef20769881d283098716807f9a745e7b3797bf8debb1aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [920-350-25-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-25-2) for guidance on recording the obligation incurred by a broadcaster licensee under a program license agreement. ##### [350-920-05-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:49.256Z to 2026-09-10T00:03:49.256Z Record version: sha256:aa43ab8beec6f19bcf3dd7b1c2dc9242ecb37877a7c9358a4eecb1b3370d6b89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A typical license agreement for program material grants a licensee the right to broadcast a specified number or an unlimited number of showings during the license period for a fee. Ordinarily, the fee is paid in installments over a period generally shorter than the license period. The agreement usually contains a separate license for each program in the package. The license expires at the earlier of the last allowed telecast or the end of the license period. The licensee pays the required fee whether or not the rights are exercised. If the licensee does not exercise the contractual rights, the rights revert to the licensor with no refund to the licensee. The license period is not intended to provide continued use of the program material throughout that period but rather to define a reasonable period of time within which the licensee can exercise the limited rights to use the program material. Source downloaded (UTC): 2026-09-10T00:03:51.767Z to 2026-09-10T00:03:51.767Z Record version: sha256:3ff2d13b5b4d034f2d044f9031ace6a72980bf6916f8a5309c6904733006df4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/920/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-920-15-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:51.767Z to 2026-09-10T00:03:51.767Z Record version: sha256:64b8405e3c1c02bf956ef91d0d825f6d6c228bc7197d35c4ed9cf3e2528577e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 920-10-15. Source downloaded (UTC): 2026-09-10T00:03:57.244Z to 2026-09-10T00:03:57.244Z Record version: sha256:7abe88e883d3bb724e02af4ccafe0100bce06ec32c9ebb21a5e8d21e1b228592 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/920/#25-recognition) SEC content: no #### License Agreements for Program Material—Exhibition Rights ##### [350-920-25-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:57.244Z to 2026-09-10T00:03:57.244Z Record version: sha256:18d40530cce5af58c45b3893f4c1f8a17fa1cdac5f92d7907a29153b46421fba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") (licensee) shall account for a [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material and any exhibition right(s) acquired under a license agreement for program material as a purchase of a right or group of rights. ##### [350-920-25-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:57.244Z to 2026-09-10T00:03:57.244Z Record version: sha256:d5e6c752546e9de2a001104611aaf8f584cc7180c5030cbfd8ae07521becde01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A licensee shall report an asset and a liability for the rights acquired and obligations incurred under a license agreement when the license period begins and all of the following conditions have been met: 1. a The cost of each program is known or reasonably determinable. 2. b The program material has been accepted by the licensee in accordance with the conditions of the license agreement. 3. c The program is available for its first showing or telecast. Except when a conflicting license prevents usage by the licensee, restrictions under the same license agreement or another license agreement with the same licensor on the timing of subsequent showings shall not affect this availability condition. Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:11c5617c7baf62ece5ae05054326a978a8e4715df94d6debeff36f7f587f1cee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/350/920/#30-initial-measurement) SEC content: no #### License Agreements for Program Material ##### [350-920-30-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:8c49fbb590d2ecdd905b73da2a8b9d89437061a9b0c713bc54aa4daf07c4c062 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [920-405-30-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-30-1) presents the alternative methods under which a [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") shall report the amount of the asset and liability for a broadcast [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee."). ##### [350-920-30-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:daea43fe51106a3f9cef0f6d99589b3d8046082a61b5a0c52e29f986194db62c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The capitalized costs to be amortized shall be determined under one of the methods specified in paragraph [920-405-30-1](https://asc.understandingaccounting.org/asc/405/920/#405-920-30-1). Those costs shall be allocated to individual programs within a package on the basis of the relative value of each to the broadcaster, which ordinarily would be specified in the contract. ##### [350-920-30-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:03:59.422Z to 2026-09-10T00:03:59.422Z Record version: sha256:98c9506c17edd3cb735d14bcdfec287fd12782f50a5c9f90a816320875105cd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The capitalized costs of rights to program materials shall be reported in the balance sheet at the lower of unamortized cost or fair value on a program-by-program, series, package, or [daypart](https://asc.understandingaccounting.org/glossary/d/#daypart "An aggregation of programs broadcast during a particular time of day (for example, daytime, evening, late night) or programs of a similar type (for example, sports, news, children's shows). Broadcasters generally sell access to viewing audiences to advertisers on a daypart basis.") basis, as appropriate. Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:957929ed1f088e5aba572115f9e2cb49af063eadaf0c85c7daa8fa5fd4c32d0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/920/#35-subsequent-measurement) SEC content: no #### License Agreements for Program Material—Amortization ##### [350-920-35-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:f88a380cc73c886578c1d1782e053ad87f26b84cba398e4474d3c8218343de05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The capitalized costs of [license agreements](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material, including license agreements in a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), shall be amortized based on the estimated number of future showings, except that licenses providing for unlimited showings of cartoons and programs with similar characteristics may be amortized over the period of the agreement because the estimated number of future showings may not be determinable. ##### [350-920-35-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:8152fef5ff5ce8c6017c7de3d74fbe7b99e782473a1f5bd23411c8a6af906cff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Feature programs shall be amortized on a program-by-program basis; however, amortization as a package may be appropriate if it approximates the amortization that would have been provided on a program-by-program basis. Program series and other syndicated products shall be amortized as a series. If the first showing is more valuable to a station than reruns, an accelerated method of amortization shall be used. However, the straight-line amortization method may be used if each showing is expected to generate similar revenues. #### License Agreements for Program Material—Valuation ##### [350-920-35-2A](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:0aa9db26403c8a7609a78effb34a21886e3889afe0e76cb7ce37f6d04a6f8cb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a license agreement within the scope of this Subtopic is part of a film group (see paragraphs [926-20-35-3B through 35-3C](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-3B) ), it shall be reviewed for impairment in accordance with paragraphs [926-20-35-12](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12) and [926-20-35-12B](https://asc.understandingaccounting.org/asc/926/20/#926-20-35-12B). If the license agreement is not part of a film group, it shall be reviewed for impairment in accordance with paragraph [920-350-35-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-3). ##### [350-920-35-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:01.297Z to 2026-09-10T00:04:01.297Z Record version: sha256:8f64d15b27f5124c88d6ad61eb86acdf3356ef0a62b94eb1765665f1b658d32b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If management's expectations of the programming usefulness of a program, series, package, or [daypart](https://asc.understandingaccounting.org/glossary/d/#daypart "An aggregation of programs broadcast during a particular time of day (for example, daytime, evening, late night) or programs of a similar type (for example, sports, news, children's shows). Broadcasters generally sell access to viewing audiences to advertisers on a daypart basis.") are revised downward, it may be necessary to write off to the income statement the amount by which the unamortized capitalized costs exceed fair value. A writeoff from unamortized cost to fair value establishes a new cost basis. Source downloaded (UTC): 2026-09-10T00:04:02.946Z to 2026-09-10T00:04:02.946Z Record version: sha256:8db74d1df7d09540eed3df618176453c25de91f3b0f77e4acacbe5ecbce14b1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/350/920/#40-derecognition) SEC content: no #### Termination of a Network Affiliation Agreement ##### [350-920-40-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:02.946Z to 2026-09-10T00:04:02.946Z Record version: sha256:e1870ded26276e23132986f840c94eae51f2c83b45d968830222761e9e2d3201 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [network affiliation agreement](https://asc.understandingaccounting.org/glossary/n/#network-affiliation-agreement "A broadcaster may be affiliated with a network under a network affiliation agreement. Under the agreement, the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in network programming. Program costs, a major expense of television stations, are generally lower for a network affiliate than for an independent station because an affiliate does not incur program costs for network programs.") is terminated and not immediately replaced or under agreement to be replaced, the unamortized balance of the amount originally allocated to the network affiliation agreement shall be charged to expense. If a network affiliation is terminated and immediately replaced or under agreement to be replaced, a loss shall be recognized to the extent that the unamortized cost of the terminated affiliation exceeds the fair value of the new affiliation. Gain shall not be recognized if the fair value of the new network affiliation exceeds the unamortized cost of the terminated affiliation. Source downloaded (UTC): 2026-09-10T00:04:04.809Z to 2026-09-10T00:04:04.809Z Record version: sha256:254ed49ad89b1040733569df530a50297f76b66669df159d04d4b4f6f4fe900c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/350/920/#45-other-presentation-matters) SEC content: no #### License Agreements for Program Material ##### [350-920-45-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:04.809Z to 2026-09-10T00:04:04.809Z Record version: sha256:57e5b7c0bbc69cdaabe23f2f8f58bb69fad3900425522523fcf6879e9ee6d335 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The asset recorded for the rights acquired under a [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material shall be presented separately from [films](https://asc.understandingaccounting.org/glossary/f/#films "Feature films, television specials, television series, or similar products (including animated films and television programming) that are sold, licensed, or exhibited, whether produced on film, video tape, digital, or other video recording format.") that are accounted for under Subtopic 926-20 either on the balance sheet or in the notes to financial statements. #### Network Affiliation Agreements ##### [350-920-45-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:04.809Z to 2026-09-10T00:04:04.809Z Record version: sha256:34511767cdd5ddcab41cd40b2bca37677fea153beae3b4169142f493cc44b6bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Network affiliation agreements](https://asc.understandingaccounting.org/glossary/n/#network-affiliation-agreement "A broadcaster may be affiliated with a network under a network affiliation agreement. Under the agreement, the station receives compensation for the network programming that it carries based on a formula designed to compensate the station for advertising sold on a network basis and included in network programming. Program costs, a major expense of television stations, are generally lower for a network affiliate than for an independent station because an affiliate does not incur program costs for network programs.") and other such items ordinarily are presented in the balance sheet of a [broadcaster](https://asc.understandingaccounting.org/glossary/b/#broadcaster "An entity or an affiliated group of entities that transmits radio or television program material.") as intangible assets. Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:4113084b1ec6c8dcaba0840be97e96545cc1bc601db32e41f08ae292f05e549b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/350/920/#50-disclosure) SEC content: no #### License Agreements for Program Material ##### [350-920-50-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:3c1c3ead1a29a0cd2d4574c2235e83facf922f20da3ae29626912baf0b8726f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose its methods of accounting for the rights acquired under a [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee."), including, but not limited to, the following methods: 1. a The method or method(s) used in computing amortization 2. b For impairment, a description of the unit(s) of account used for impairment testing and the method(s) used for determining fair value. ##### [350-920-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:44e1a040f6dd1ef85f050284bdb0945289cdb7eb850c4262f2b7aa1052d99deb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial performance is presented: 1. a The aggregate amortization expense for the period 2. b The caption in the income statement where the amortization is recorded. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)The following information shall be disclosed in the financial statements or the notes to financial statements for each period for which a statement of financial performance is presented: 1. a The aggregate amortization expense for the period 2. b The caption in the income statement where the amortization is recorded. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [350-920-50-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:96efc9ba2ef30f52380ce46db7816b8e8ef317ba36bd21a5887f4309118ab0ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the most recent annual period for which a statement of financial position is presented, an entity shall disclose in the notes to financial statements the portion of the costs of license agreements recognized at the date of the most recent statement of financial position that an entity expects to amortize within each of the next three operating cycles. An operating cycle is presumed to be 12 months. An entity shall disclose its operating cycle if it is other than 12 months. ##### [350-920-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:04:08.809Z to 2026-09-10T00:04:08.809Z Record version: sha256:d2a27af51927aff0f1f231f2d07b0e93dcb70bbbc105008cc8e448749bd17f4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For impairment amounts recognized for a license agreement that is not included in a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), the following information shall be disclosed in the notes to financial statements that include the period in which the impairment losses are recognized: 1. a A description of the facts and circumstances leading to the impairment 2. b The amount of impairment losses 3. c The caption in the income statement where the impairment losses are recorded 4. d If applicable, the segment(s) under Topic 280 where the impairment losses are recorded. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For impairment amounts recognized for a license agreement that is not included in a [film group](https://asc.understandingaccounting.org/glossary/f/#film-group "The unit of account used for impairment testing for a film or a license agreement for program material when the film or license agreement is expected to be predominantly monetized with other films and/or license agreements instead of being predominantly monetized on its own. A film group represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other films and/or license agreements."), the following information shall be disclosed in the notes to financial statements that include the period in which the impairment losses are recognized: 1. a A description of the facts and circumstances leading to the impairment 2. b The amount of impairment losses 3. c The caption in the income statement where the impairment losses are recorded 4. d If applicable, the segment(s) under Topic 280 where the impairment losses are recorded. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:9df24a0d6d8db5414ea7c44f0791fdc6793a8a39d37daa43e32c3ace4e3ed7d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-920-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/350/920/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [350-920-55-1](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:08c9dcc11b36e7f9655e893d9dc95ad8f954d6415f28ed7e7db152044acb7529 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates accounting for a [license agreement](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for television program material in accordance with this Topic. ##### [350-920-55-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:361679447a773628a49012fd8cf722294fec609142c0b589eb74940d9490e5eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions: 1. a End of Fiscal Year—December 31 2. b Contract Execution Date—July 31, 19X1 3. c Number of Films and Telecasts Permitted—four films, two telecasts each 4. d Payment Schedule—$1,000,000 at contract execution date, $6,000,000 on January 1, 19X2, 19X3, and 19X4 5. e Appropriate Interest Rate for Imputation of Interest—12 percent per year 6. f Fees, License Periods, and Film Availability Dates. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-87B209DB-505D-488B-AE32-983BE4C6BAD9-low.gif) Stated License Periods Film Availability Dates Film Total Fee From To(a) A "$8,000,000" 10/1/X1 9/30/X3 9/1/X1 B "5,000,000" 10/1/X1 9/30/X3 9/1/X1 C "3,750,000" 9/1/X2 8/31/X4 12/1/X1 D "2,250,000" 9/1/X3 8/31/X5 12/1/X2 "$19,000,000" (a) The actual license periods expire at the earlier of the second telecast or the end of the stated license period. 7. g Telecast Dates and Revenues. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-D225D6F6-2EEB-4606-9D29-A31869B4B6D8-low.gif) First Telecast Second Telecast Film Date Percent of Total Revenue Date Percent of Total Revenue A 3/1/X2 60% 6/1/X3 40% B 5/1/X2 70% 7/1/X3 30% C 6/1/X3 75% 6/1/X4 25% D 12/1/X4 65% 8/1/X5 35% ##### [350-920-55-3](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:8174164d846d980ef3bd032fc20dbcb51edaef8e39790ffc74fe8640f6e257da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of imputing interest, it is assumed that the $1,000,000 payment on July 31, 19X1 and the $6,000,000 payments on January 1, 19X2 and 19X3 relate to Films A and B and the $6,000,000 payment on January 1, 19X4 relates to Films C and D. Other simplifying assumptions or methods of assigning the payments to the films could be made. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C07B901B-A559-4168-9CA1-E6E212276740-low.gif) Payment Discounted Present Value (rounded to 000s) Film Date Amount As of Date Amount A and B 7/31/X1 " $1,000,000 " 10/1/X1 " $1,000,000 " 1/1/X2 " 6,000,000 " 10/1/X1 " 5,825,000 " 1/1/X3 " 6,000,000 " 10/1/X1 " 5,201,000 " " $13,000,000 " " $12,026,000 " C 1/1/X4 " $3,750,000 " 9/1/X2 " $3,219,000 " D 1/1/X4 " $2,250,000 " 9/1/X3 " $2,163,000 " " $6,000,000 " ##### [350-920-55-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:5f2cf1aaa25157df4beec3b62b9eefee260eed500b456ba3f4243ce0c5e1deba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Asset and Liability Recognition (Fair Value Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F69E33F8-04DF-4BA3-B3C8-622F610BB173-low.gif) License Period Year of Asset and Liability Recognition Film From To 19X1 19X2 19X3 A 10/1/X1 9/30/X3 " $7,401,000 " ( a) B 10/1/X1 9/30/X3 " 4,625,000 " ( a) C 9/1/X2 8/31/X4 " $3,219,000 " " $2,163,000 " D 9/1/X3 8/31/X5 (a) "Discounted present value of $12,026,000 allocated 8/13 to film A and 5/13 to film B based on stated license fees." ##### [350-920-55-5](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:8083482e436300a8429e8f993b49db77d34d43795a5f53b2ba124650c4c4d7ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expense Recognition (Fair Value Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-586EB856-2BC8-4312-BCC5-7D56B63217C5-low.gif) Year of Expense Recognition Film 19X1 19X2 19X3 19X4 19X5 A " $204,000 " (I) (a) " $396,000 " (I) (b) " 4,441,000 " (A) (c) " $2,960,000 " (A) (d) B " 127,000 " (I) (e) " 247,000 " (I) (f) " 3,238,000 " (A) (g) " 1,387,000 " (A) (h) C " 129,000 " (I) (i) " 402,000 " (I) (j) " 2,414,000 " (A) (k) " $805,000 " (A) (l) D " 87,000 " (I) (m) " 1,406,000 " (A) (n) " $757,000 " (A) (o) " $331,000 " " $8,451,000 " " $7,250,000 " " $2,211,000 " " $757,000 " (I) Accrued interest expense (A) Amortization of program cost (a) "Interest at 12% for 3 months on liability of $11,026,000 allocated 8/13 to Film A" (b) "Interest at 12% for 1 year on liability of $5,357,000 ($11,026,000 plus $331,000 less 1/1/X2 payment of $6,000,000) allocated 8/13 to Film A" (c) "$7,401,000 × 60%" (d) "$7,401,000 × 40%" (e) "Interest at 12% for 3 months on liability of $11,026,000 allocated 5/13 to Film B" (f) "Interest at 12% for 1 year on liability of $5,357,000 ($11,026,000 plus $331,000 less 1/1/X2 payment of $6,000,000) allocated 5/13 to Film B" (g) "$4,625,000 × 70%" (h) "$4,625,000 × 30%" (i) "Interest at 12% for 4 months on liability of $3,219,000" (j) "Interest at 12% for 1 year on liability of $3,348,000 ($3,219,000 plus $129,000)" (k) "$3,219,000 × 75%" (l) "$3,219,000 × 25%" (m) "Interest at 12% for 4 months on liability of $2,163,000" (n) "$2,163,000 × 65%" (o) "$2,163,000 × 35%" ##### [350-920-55-6](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:c16fe6f675866a6fc21c07e14df265cd810537cb68bca966741936617f74bba1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Asset and Liability Recognition (Gross Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-56D5514B-070A-49E0-BE69-1ECC21562CB3-low.gif) License Period Year of Asset and Liability Recognition Film From To 19X1 19X2 19X3 A 10/1/X1 9/30/X3 " $8,000,000 " B 10/1/X1 9/30/X3 " 5,000,000 " C 9/1/X2 8/31/X4 " $3,750,000 " D 9/1/X3 8/31/X5 " $2,250,000 " ##### [350-920-55-7](https://asc.understandingaccounting.org/asc/350/920/#350-920-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:12.170Z to 2026-09-10T00:04:12.170Z Record version: sha256:77e8611bc95f73c391c6b500e0ebe2ea1e746caafb3c34ccdf891a9a281a35d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expense Recognition (Gross Approach) - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-D74C25F8-1041-4C60-B2ED-C4B407FE4320-low.gif) Year of Expense Recognition (a) Film 19X1 19X2 19X3 19X4 19X5 A " $4,800,000 " (b) " $3,200,000 " (c) B " 3,500,000 " (d) " 1,500,000 " (e) C " 2,813,000 " (f) " $937,000 " (g) D " 1,463,000 " (h) " $787,000 " (i) $- " $8,300,000 " " $7,513,000 " " $2,400,000 " " $787,000 " (a) "Under the gross approach, all costs under a license agreement are recorded as amortization of program cost." (b) "$8,000,000 × 60%" (c) "$8,000,000 × 40%" (d) "$5,000,000 × 70%" (e) "$5,000,000 × 30%" (f) "$3,750,000 × 75%" (g) "$3,750,000 × 25%" (h) "$2,250,000 × 65%" (i) "$2,250,000 × 35%" Source downloaded (UTC): 2026-09-10T00:04:18.369Z to 2026-09-10T00:04:37.790Z Record version: sha256:e8a30953c3dceec83cbd31f8df867e97512ba4bf87036c192ae66c0bf4c02c52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922: Intangibles—Goodwill and Other — Entertainment—Cable Television ### Machine-generated study aids ```json { "summary": "This Subtopic governs intangible-type costs incurred by cable television systems, principally programming and other system costs during the \"prematurity period\" and franchise application costs. During the prematurity period, fixed system costs incurred in anticipation of a fully operating system are split between current operations (expensed) and future operations (capitalized) using the subscriber-based fraction in 922-360-35-3, and amortization is computed using that same fraction. Costs of successful franchise applications are capitalized and amortized under Topic 350, while unsuccessful or abandoned franchise costs are expensed.", "key_points": [ "During the prematurity period, programming and other system costs incurred in anticipation of a fully operating system that do not vary significantly with subscriber count are allocated between current and future operations; the current portion is expensed and the remainder capitalized (350-922-25-1).", "The amount expensed currently equals the month's total of such costs multiplied by the fraction described in paragraph 922-360-35-3; covered costs include property taxes, pole/underground duct/antenna site/microwave rental based on a fully operating system, and local origination programming required by the franchise (350-922-25-1).", "Prematurity-period amortization expense equals the monthly amortization of total capitalized costs expected at completion of the prematurity period multiplied by the same 922-360-35-3 fraction, using the post-prematurity amortization method (350-922-35-1).", "Costs capitalized under paragraph 922-350-25-1 are amortized over the same period used to depreciate the main cable television plant (350-922-35-2).", "Capitalization does not stop when total cost exceeds a recoverable amount; capitalization continues and the provision reducing capitalized costs to recoverable value is increased (350-922-35-3).", "Costs of successful franchise applications are capitalized (350-922-25-3) and amortized under Topic 350 (350-922-35-4), while costs of unsuccessful applications and abandoned franchises are charged to expense (350-922-40-1, 922-720-25-4).", "Interest costs during the prematurity period are capitalized as provided in paragraph 922-835-25-1 (350-922-25-2)." ], "categories": [ "Industry-specific", "Recognition", "Subsequent measurement", "Intangibles and goodwill" ], "audience_level": "intermediate", "student_note": "This is narrow industry guidance, but it illustrates a rare rule: capitalization continues even when costs exceed recoverable value, with a valuation provision instead. A common misunderstanding is thinking all franchise costs are capitalized — only successful applications qualify; unsuccessful and abandoned ones are expensed.", "related_topics": [ "922-10", "922-360", "922-720", "922-835", "350", "360" ], "key_concepts": [ "prematurity period", "programming costs", "franchise application costs", "cost allocation fraction", "capitalization and amortization", "recoverable value provision", "cable television plant" ] } ``` Source downloaded (UTC): 2026-09-10T00:04:18.369Z to 2026-09-10T00:04:18.369Z Record version: sha256:ede46465ff4e28fcac73f52cc9948937e49be596077e3bb0e44ac8946d42d40e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/922/#00-status) SEC content: no ##### [350-922-00-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:18.369Z to 2026-09-10T00:04:18.369Z Record version: sha256:90d5a18659ba0bb062135f05e26c956c2ed4aee5c9faa87ebd9b35ca1bc6457f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
922-350-30-1AmendedAccounting Standards Update No. 2009-0207/01/2009
Source downloaded (UTC): 2026-09-10T00:04:21.297Z to 2026-09-10T00:04:21.297Z Record version: sha256:4bea1c8248cbd2b9e2bf560ee5a0eafcb43dc0cf8965c3498b1a664a760a2df4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/922/#05-overview-and-background) SEC content: no ##### [350-922-05-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:21.297Z to 2026-09-10T00:04:21.297Z Record version: sha256:fd28c19769e816e3ba961820c95a927157ae3e8996a16171c0b3afae8ee9976e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for various intangible costs incurred by entities in the cable television industry, such as programming costs and franchise application costs. Source downloaded (UTC): 2026-09-10T00:04:25.054Z to 2026-09-10T00:04:25.054Z Record version: sha256:73c7ae21de3dc8c2cfd694b69aeb8afffce8083cdca6ee6886e3709acdbfdd88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/922/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-922-15-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:25.054Z to 2026-09-10T00:04:25.054Z Record version: sha256:aef90720f591aa1e6523d99c5e88c315926d8260c26b6c8d9ea074abb7cc8382 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 922-10-15. Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:e45d65c9c69f92d9b1540555cd7d1c644872cbed6c8b2f26e3dabce5877e0dfb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/922/#25-recognition) SEC content: no #### Prematurity Period—Programming and Other System Costs ##### [350-922-25-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:1105f983c6d38ad7781a2451ad56f481834535fdf8ac668df8dec5d13caa9d27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the [prematurity period](https://asc.understandingaccounting.org/glossary/p/#prematurity-period "During the prematurity period, the cable television system is partially under construction and partially in service. The prematurity period begins when revenue from the first subscriber is recognized in accordance with Topic 606 on revenue from contracts with customers.Its end will vary with circumstances of the system but will be determined based on plans for completion of the first major construction period or achievement of a specified predetermined subscriber level at which no additional investment will be required for other than cable television plant. The construction period of a cable television system varies with the size of the franchise area, density of population, and difficulty of physical construction. The construction period is not completed until the head-end, main cable, and distribution cables are installed, and includes a reasonable time to provide for installation of subscriber drops and related hardware. During the construction period, many system operators complete installation of drops and begin to provide service to some subscribers in some parts of the system while construction continues. Providing the signal for the first time is referred to as energizing the system. The length of the prematurity period varies with the franchise development and construction plans. Such plans may consist of any of the following: Small franchise that is characterized by the absence of free television signal and a short construction period. The entire system is energized at one time near the end of the construction period. Medium-size franchise that is characterized by some direct competition from free television and by a more extensive geographical franchise area lending itself to incremental construction. Some parts of the system are energized as construction progresses. Large metropolitan franchise that is characterized by heavy direct competition from free television and fringe area signal inadequacy, high cost, and difficult construction. Many parts of the system are energized as construction progresses. Except in the smallest systems, programming is usually delivered to portions of the system and some revenues are obtained before construction of the entire system is complete. Thus, virtually every cable television system experiences a prematurity period during which it is receiving some revenue while continuing to incur substantial costs related to the establishment of the total system."), programming costs and other system costs that are incurred in anticipation of servicing a fully operating system and that will not vary significantly regardless of the number of subscribers shall be allocated between current and future operations. The proportion attributable to current operations shall be expensed currently and the remainder shall be capitalized. The amount to be expensed currently shall be determined by multiplying the total of such costs for the month by the fraction determined for that month as described in paragraph [922-360-35-3](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-3). Those costs include property taxes based on valuation as a fully operating system; pole, underground duct, antenna site, and microwave rental based on rental costs for a fully operating system; and local origination programming to satisfy franchise requirements. ##### [350-922-25-2](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:bcd427aea0b391016af2874a9328ceaaec19095324f9704ce2e5d84e0c7c16b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Refer to paragraph [922-835-25-1](https://asc.understandingaccounting.org/asc/835/922/#835-922-25-1) concerning the capitalization of interest costs during the prematurity period. #### Franchise Application Costs ##### [350-922-25-3](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:30.728Z to 2026-09-10T00:04:30.728Z Record version: sha256:a17e541b504b3a1a66bf7744e3ca9bd9d40e905394796c2e79d9b2ec2d4d1880 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of successful franchise applications shall be capitalized. Source downloaded (UTC): 2026-09-10T00:04:32.598Z to 2026-09-10T00:04:32.598Z Record version: sha256:9fcf67379fa028aa907305f656fa79bfe8a40fc7ada1df952d679202fbb4d11b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/350/922/#30-initial-measurement) SEC content: no ##### [350-922-30-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:32.598Z to 2026-09-10T00:04:32.598Z Record version: sha256:7e4ceac24210ba9ec1bd93335049d2b6225f1910bdb46b3e5e229a79f6c57608 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T00:04:35.098Z to 2026-09-10T00:04:35.098Z Record version: sha256:47fee01021da99c828898ae93d2621cde93d03e49d02f57605cd142acb89ce9f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/922/#35-subsequent-measurement) SEC content: no #### Amortization During the Prematurity Period ##### [350-922-35-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:35.098Z to 2026-09-10T00:04:35.098Z Record version: sha256:d84f5135cc27d51c71b15d971414596d360d672afe1e36d35b59843ef90cddb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the [prematurity period](https://asc.understandingaccounting.org/glossary/p/#prematurity-period "During the prematurity period, the cable television system is partially under construction and partially in service. The prematurity period begins when revenue from the first subscriber is recognized in accordance with Topic 606 on revenue from contracts with customers.Its end will vary with circumstances of the system but will be determined based on plans for completion of the first major construction period or achievement of a specified predetermined subscriber level at which no additional investment will be required for other than cable television plant. The construction period of a cable television system varies with the size of the franchise area, density of population, and difficulty of physical construction. The construction period is not completed until the head-end, main cable, and distribution cables are installed, and includes a reasonable time to provide for installation of subscriber drops and related hardware. During the construction period, many system operators complete installation of drops and begin to provide service to some subscribers in some parts of the system while construction continues. Providing the signal for the first time is referred to as energizing the system. The length of the prematurity period varies with the franchise development and construction plans. Such plans may consist of any of the following: Small franchise that is characterized by the absence of free television signal and a short construction period. The entire system is energized at one time near the end of the construction period. Medium-size franchise that is characterized by some direct competition from free television and by a more extensive geographical franchise area lending itself to incremental construction. Some parts of the system are energized as construction progresses. Large metropolitan franchise that is characterized by heavy direct competition from free television and fringe area signal inadequacy, high cost, and difficult construction. Many parts of the system are energized as construction progresses. Except in the smallest systems, programming is usually delivered to portions of the system and some revenues are obtained before construction of the entire system is complete. Thus, virtually every cable television system experiences a prematurity period during which it is receiving some revenue while continuing to incur substantial costs related to the establishment of the total system."), amortization expense shall be determined by multiplying the monthly amortization of total capitalized costs expected on completion of the prematurity period by the same fraction described in paragraph [922-360-35-3](https://asc.understandingaccounting.org/asc/360/922/#360-922-35-3), using the amortization method that will be applied by the entity after the prematurity period. #### Amortization of Capitalized Costs ##### [350-922-35-2](https://asc.understandingaccounting.org/asc/350/922/#350-922-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:35.098Z to 2026-09-10T00:04:35.098Z Record version: sha256:e936157732873f4c0ff4c7d1695ad4314a8b55d3eb8467f655392ec958198afa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs that have been capitalized in accordance with paragraph [922-350-25-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-1) shall be amortized over the same period used to depreciate the main [cable television plant](https://asc.understandingaccounting.org/glossary/c/#cable-television-plant "The cable television plant required to render service to the subscriber includes the following equipment: Head-end. This includes the equipment used to receive signals of distant television or radio stations, whether directly from the transmitter or from a microwave relay system. It also includes the studio facilities required for operator-originated programming, if any. Cable. This consists of cable and amplifiers (which maintain the quality of the signal) covering the subscriber area, either on utility poles or underground. Drops. These consist of the hardware that provides access to the main cable, the short length of cable that brings the signal from the main cable to the subscriber's television set, and other associated hardware, which may include a trap to block particular channels. Converters and descramblers. These devices are attached to the subscriber's television sets when more than 12 channels are provided or when special services are provided, such as pay cable or 2-way communication."). #### Recoverability ##### [350-922-35-3](https://asc.understandingaccounting.org/asc/350/922/#350-922-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:35.098Z to 2026-09-10T00:04:35.098Z Record version: sha256:f259c0bcc8e9019e4dd6c9198b39e210e7e737c00f40f8f0097e23bcf635d863 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain intangible assets are subject to the provisions of Topic 360. Other intangible assets are subject to the provisions of Topic 350. Capitalization of costs shall not cease when the total cost reaches an amount that is not fully recoverable. Capitalization of costs shall continue, and the provision required to reduce capitalized costs to recoverable value shall be increased. #### Franchise Application Costs ##### [350-922-35-4](https://asc.understandingaccounting.org/asc/350/922/#350-922-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:35.098Z to 2026-09-10T00:04:35.098Z Record version: sha256:2c5c1d00cb99e15a46ad75f76fd40bdfd5a188cd7c85c521d35125b48794de9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of successful franchise applications capitalized under paragraph [922-350-25-3](https://asc.understandingaccounting.org/asc/350/922/#350-922-25-3) shall be amortized in accordance with the provisions of Topic 350. Source downloaded (UTC): 2026-09-10T00:04:37.790Z to 2026-09-10T00:04:37.790Z Record version: sha256:80b3ca00a6aa3d621aa2eeef7905e765874a7211ffa52ac52c362840e53d67c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-922-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/350/922/#40-derecognition) SEC content: no #### Unsuccessful Franchise Applications and Abandoned Franchises ##### [350-922-40-1](https://asc.understandingaccounting.org/asc/350/922/#350-922-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:37.790Z to 2026-09-10T00:04:37.790Z Record version: sha256:81965a7c51b404669b527f2506726b4da15967ec4b5a3ee95edd8924d959c861 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [922-720-25-4](https://asc.understandingaccounting.org/asc/720/922/#720-922-25-4), costs of unsuccessful franchise applications and abandoned franchises shall be charged to expense. Source downloaded (UTC): 2026-09-10T00:04:39.480Z to 2026-09-10T00:04:44.333Z Record version: sha256:f262385875082b720b53064c0f9567833ab20147df3743fd154698b89b9c7475 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-932: Intangibles—Goodwill and Other — Extractive Activities—Oil and Gas ### Machine-generated study aids ```json { "summary": "This Subtopic carves oil- and gas-producing entities out of the general intangible asset balance sheet classification and disclosure rules for their drilling and mineral rights. Because the oil and gas accounting framework turns on the level of established reserves rather than on whether an asset is tangible or intangible, the scope exception in 350-10-15-4(b) extends to the disclosure provisions, with disclosure instead governed by Section 932-235-50. Entities may voluntarily provide additional information about drilling and mineral rights but may not analogize this exception to other items in 350-10-15-4.", "key_points": [ "This Subtopic creates an oil and gas industry exception to the general intangible asset disclosure rules (350-932-05-1).", "The scope exception in paragraph 350-10-15-4(b) covers both balance sheet classification and disclosures for drilling and mineral rights of oil- and gas-producing entities within the scope of Topic 932 (350-932-50-1).", "The rationale is that the oil and gas accounting framework is based on the level of established reserves, not on whether an asset is tangible or intangible (350-932-50-1).", "Required disclosures for these rights come from Section 932-235-50, though an entity is not precluded from providing additional information about its drilling and mineral rights (350-932-50-1).", "Entities must not analogize this guidance to the other items listed in paragraph 350-10-15-4 (350-932-50-2).", "Scope follows the Overall Subtopic scope in Section 932-10-15 (350-932-15-1)." ], "categories": [ "Disclosure", "Intangibles and goodwill", "Industry-specific", "Presentation" ], "audience_level": "intermediate", "student_note": "Exam trap: students assume mineral and drilling rights are \"intangible assets\" subject to ASC 350's classification and disclosure rules—for oil and gas producers they are not; look to ASC 932-235-50 instead. Equally important, the exception is narrow and cannot be analogized to other 350-10-15-4 items.", "related_topics": [ "350-10", "932-10", "932-235", "932-360", "805-20" ], "key_concepts": [ "drilling and mineral rights", "oil- and gas-producing entities", "scope exception", "intangible asset disclosures", "established reserves", "balance sheet classification", "prohibition on analogy" ] } ``` Source downloaded (UTC): 2026-09-10T00:04:39.480Z to 2026-09-10T00:04:39.480Z Record version: sha256:66a4e65d5e388e2baa87adcbf38694b2cda119e9dbcf742b90f144ebe1bbdfa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-932-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/932/#05-overview-and-background) SEC content: no ##### [350-932-05-1](https://asc.understandingaccounting.org/asc/350/932/#350-932-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:39.480Z to 2026-09-10T00:04:39.480Z Record version: sha256:edcd5e5a906420607109ebef6f2fe55ba475be9aa8609f82df3a1b46f0811177 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses an exception for the oil and gas industry to the disclosure rules for intangible assets. Source downloaded (UTC): 2026-09-10T00:04:41.613Z to 2026-09-10T00:04:41.613Z Record version: sha256:86555cb72fa4d3e7b3b1bf50314dc7138e123c6fd24c5504be072db046f4f2eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-932-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/932/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-932-15-1](https://asc.understandingaccounting.org/asc/350/932/#350-932-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:41.613Z to 2026-09-10T00:04:41.613Z Record version: sha256:609c18bc56255486553d375c8a24cb30d20e831d709794bde2490fbbee01e615 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 932-10-15. Source downloaded (UTC): 2026-09-10T00:04:44.333Z to 2026-09-10T00:04:44.333Z Record version: sha256:a125981de4cdb6ce3b8ccf423bd822748e2925acb20ceaf196f9d529d3dfcb25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-932-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/350/932/#50-disclosure) SEC content: no ##### [350-932-50-1](https://asc.understandingaccounting.org/asc/350/932/#350-932-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:44.333Z to 2026-09-10T00:04:44.333Z Record version: sha256:7a0555e24195ee7444142f6a155ad2179a7e201ff1a355fd46dafc33e6745f42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The scope exception in paragraph [350-10-15-4(b)](https://asc.understandingaccounting.org/asc/350/10/#350-10-15-4) includes the balance sheet classification and disclosures for drilling and mineral rights of oil- and gas-producing entities that are within the scope of this Topic. The accounting framework for oil- and gas-producing entities is based on the level of established reserves—not whether an asset is tangible or intangible. Accordingly, the scope exception extends to its disclosure provisions for drilling and mineral rights of oil- and gas-producing entities. However, an entity is not precluded from providing information about its drilling and mineral rights in addition to the information required by Section 932-235-50. ##### [350-932-50-2](https://asc.understandingaccounting.org/asc/350/932/#350-932-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:44.333Z to 2026-09-10T00:04:44.333Z Record version: sha256:55498133fb0809ed49828ae34d27bcc42e09f6e250ccee9258dc5e71b1b18239 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities should not analogize this guidance to other items listed in paragraph [350-10-15-4](https://asc.understandingaccounting.org/asc/350/10/#350-10-15-4). Source downloaded (UTC): 2026-09-10T00:04:47.698Z to 2026-09-10T00:05:10.067Z Record version: sha256:ea42a7a60762459c4ec77797279465b57701837e581d5b4d55096df3918a947c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950: Intangibles—Goodwill and Other — Financial Services—Title Plant ### Machine-generated study aids ```json { "summary": "ASC 350-950 governs accounting for title plants — the indexed historical records of land ownership, encumbrances, maps, and prior title reports used by title insurers, abstract entities, and title agents. Costs directly identifiable with constructing a title plant (and purchased title plants, recorded at cost/fair value of consideration given) are capitalized, while maintenance and title search costs are expensed as incurred. Capitalized title plant is not amortized or depreciated; it is carried indefinitely unless impaired under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10.", "key_points": [ "Costs incurred to construct a title plant are capitalized only if directly related to, and properly identified with, the construction activities (350-950-25-1); capitalizable costs are those to obtain, organize, and summarize historical information until the plant can be used for title searches (350-950-30-1).", "A purchased title plant, including a purchased undivided interest, is recorded at cost at the date of acquisition, measured for a separate acquisition by the fair value of the consideration given (350-950-25-2; 350-950-30-2).", "Costs to maintain a title plant (daily updating) and to perform title searches are expensed as incurred (350-950-25-2); backplant construction costs must be identifiable to be capitalized (350-950-25-2).", "Costs incurred after the title plant is operational to convert information between storage and retrieval systems or to modify/modernize the system are not capitalized as title plant (350-950-25-3), but may be capitalized separately (350-950-25-4) and then charged to expense in a systematic and rational manner (350-950-35-4).", "Capitalized title plant costs are not depreciated or charged to income unless circumstances indicate impairment (350-950-35-1); indicators include changes in legal requirements, obsolescence, competitor actions, failure to maintain the plant currently, and abandonment (350-950-35-2), with Subtopic 360-10 impairment provisions applying (350-950-35-3).", "On sale with relinquishment of all rights to future use, gain or loss equals the amount to which the entity is entitled under Subtopic 610-20 net of the adjusted cost of the title plant (350-950-40-1(a)); sale of an undivided interest yields gain or loss of the amount received net of a pro rata portion of adjusted cost (350-950-40-1(b)).", "Sale of a copy of the title plant or the right to use it is revenue under Topic 606 if with a customer (otherwise Subtopic 610-20), and ordinarily no cost is allocated unless the plant's value falls below its adjusted cost as a result of the sale (350-950-40-1(c))." ], "categories": [ "Recognition", "Initial measurement", "Subsequent measurement", "Impairment" ], "audience_level": "intermediate", "student_note": "Title plant is the classic example of a capitalized asset that is never amortized — the common mistake is assuming an intangible with a long life must be amortized; here the only write-down comes through ASC 360-10 impairment. Also distinguish construction costs (capitalize) from maintenance and title search costs (expense), and from post-operational storage/retrieval system costs (capitalize separately and expense systematically).", "related_topics": [ "360-10", "610-20", "606", "350-30", "944" ], "key_concepts": [ "title plant", "backplant", "capitalization of construction costs", "title plant maintenance", "title searches", "no amortization", "impairment indicators", "undivided ownership interest" ] } ``` Source downloaded (UTC): 2026-09-10T00:04:47.698Z to 2026-09-10T00:04:47.698Z Record version: sha256:922d9c0fadf62c2da2e382154ae0c60a59617dbce0268f0a8ea45c6eeab9baec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/950/#00-status) SEC content: no ##### [350-950-00-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:47.698Z to 2026-09-10T00:04:47.698Z Record version: sha256:b70c08b08f60c9af7935dbf31fff1a04b2d2cf12b16b23a330f9c285847dab0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
RevenueAddedAccounting Standards Update No. 2014-0905/28/2014
950-350-40-1AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:04:51.049Z to 2026-09-10T00:04:51.049Z Record version: sha256:4068d2ff86216f10678a602d3c0e0f53b9a81f888fe53d989752295a5dd02612 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/950/#05-overview-and-background) SEC content: no ##### [350-950-05-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:51.049Z to 2026-09-10T00:04:51.049Z Record version: sha256:ce233b9d299d22ffb60683278d833b20b7f3db3a16eb27a8a44fa69d1be0bace Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and reporting for [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.") and related intangible assets. ##### [350-950-05-2](https://asc.understandingaccounting.org/asc/350/950/#350-950-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:51.049Z to 2026-09-10T00:04:51.049Z Record version: sha256:8bc4bdea37d63fcedb4f4aa214891e339de86f8c7956b27a84dde636dcf48f90 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A title plant consists of all of the following: 1. a Indexed and catalogued information for a period concerning the ownership of, and encumbrances on, parcels of land in a particular geographic area 2. b Information relating to persons having an interest in real estate 3. c Maps and plats 4. d Copies of prior title insurance contracts and reports 5. e Other documents and records. ##### [350-950-05-3](https://asc.understandingaccounting.org/asc/350/950/#350-950-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:51.049Z to 2026-09-10T00:04:51.049Z Record version: sha256:0aff9d8a3a5c65c781fb7e27cb00605083b2f2dc6b5741032ccd1f3571f75291 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A title plant constitutes 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. ##### [350-950-05-4](https://asc.understandingaccounting.org/asc/350/950/#350-950-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:51.049Z to 2026-09-10T00:04:51.049Z Record version: sha256:344c2af850847a88cd169a5487e3c2a3fe966eeef9fc9169dd015f2afc356e56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may decide to construct or purchase a title plant that antedates the period covered by its existing title plant ([backplant](https://asc.understandingaccounting.org/glossary/b/#backplant "A title plant that antedates the period covered by its existing title plant.")). ##### [350-950-05-5](https://asc.understandingaccounting.org/asc/350/950/#350-950-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:51.049Z to 2026-09-10T00:04:51.049Z Record version: sha256:ec5ecebcec682cab2333df9fbb631c9e44697547c271bf7f97671e07510a8fc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Title plant maintenance involves the updating of the title plant on a daily or other frequent basis by adding both of the following: 1. a Reports on the current status of title to specific parcels of real estate 2. b Other documents, such as records relating to security or other ownership interests. ##### [350-950-05-6](https://asc.understandingaccounting.org/asc/350/950/#350-950-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:51.049Z to 2026-09-10T00:04:51.049Z Record version: sha256:ab135ba663b7a9af43f6b92ab0d105b079977e2550299268c9e6e4852393ef42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Title searches involve the process of searching through records for all recorded documents or updating information summarized in the most recently issued title report. Source downloaded (UTC): 2026-09-10T00:04:54.962Z to 2026-09-10T00:04:54.962Z Record version: sha256:e69c5181df12ae7e9ecbf9b54063737a7ab6b0f058218b1c590b5d71eb10ee5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/950/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [350-950-15-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:04:54.962Z to 2026-09-10T00:04:54.962Z Record version: sha256:a4c49f23e35c7c3898e3a17191c6d95bc7fa5779a9a711a3670d0b4d9753548b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities that use 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.") in their operations. Those entities include, but are not limited to: 1. a Title insurance entities (underwriters) 2. b Title abstract entities 3. c Title agents. Source downloaded (UTC): 2026-09-10T00:05:01.119Z to 2026-09-10T00:05:01.119Z Record version: sha256:26d6714aed38ed2553925cbb4d6b9c9eac273d7ccd6d99bbfdf546ef493317c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/950/#25-recognition) SEC content: no #### Title Plant ##### [350-950-25-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:01.119Z to 2026-09-10T00:05:01.119Z Record version: sha256:2f105f6884e3565c1d1a9084a7077233a53ad6b5787767ad0023da0e7f636e38 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred to construct 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 capitalized. To qualify for capitalization, costs need to be directly related to, and properly identified with, the activities necessary to construct the title plant. ##### [350-950-25-2](https://asc.understandingaccounting.org/asc/350/950/#350-950-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:01.119Z to 2026-09-10T00:05:01.119Z Record version: sha256:9861dc6810885cb7416db7893609a6a32787eebd4d9d50bcc798e1dcf8971382 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A purchased title plant, including a purchased undivided interest in a title plant, shall be recorded at the date of acquisition. Costs to construct a [backplant](https://asc.understandingaccounting.org/glossary/b/#backplant "A title plant that antedates the period covered by its existing title plant.") need to be identifiable to qualify for capitalization. Costs incurred to maintain a title plant and to do title searches shall be expensed as incurred. #### Storage and Retrieval ##### [350-950-25-3](https://asc.understandingaccounting.org/asc/350/950/#350-950-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:01.119Z to 2026-09-10T00:05:01.119Z Record version: sha256:7d56b7fd15d5c9c439aa279eb332e04e69706da5f762d317f215f9c066d0f3fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following costs incurred after a title plant is operational shall not be capitalized as title plant: 1. a Costs to convert the information from one storage and retrieval system to another 2. b Costs to modify or modernize the storage and retrieval system. ##### [350-950-25-4](https://asc.understandingaccounting.org/asc/350/950/#350-950-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:01.119Z to 2026-09-10T00:05:01.119Z Record version: sha256:8a5e9c7ba6b2904467e4bf156f89409c0b518733537a658d2366714bc9ffa125 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those costs, however, may be capitalized separately. Source downloaded (UTC): 2026-09-10T00:05:04.529Z to 2026-09-10T00:05:04.529Z Record version: sha256:2d152926c54aaf66bd909010ca6d4315a1143e0fa3ee13dcfd62b667a477c160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/350/950/#30-initial-measurement) SEC content: no ##### [350-950-30-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:04.529Z to 2026-09-10T00:05:04.529Z Record version: sha256:3d92a85a8dc5bdc658662b857d01ce596c5421c85d1b6bce07c0ec2f42c6fb2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") costs to be capitalized include the costs incurred to obtain, organize, and summarize historical information in an efficient and useful manner until the title plant can be used by the entity to do title searches. ##### [350-950-30-2](https://asc.understandingaccounting.org/asc/350/950/#350-950-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:04.529Z to 2026-09-10T00:05:04.529Z Record version: sha256:a7abb1c5d0c27aa047cd81c877c655bcb791f89cf445186ee877fc7946e5d95f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A purchased title plant, including a purchased undivided interest in title plant, shall be recorded at cost. For a title plant acquired separately, cost shall be measured by the fair value of the consideration given. Source downloaded (UTC): 2026-09-10T00:05:08.281Z to 2026-09-10T00:05:08.281Z Record version: sha256:d80689d17ff0dc966b4a1fb5b491b8ea2c6714f7ea30d0a355987751b4fbf1ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/950/#35-subsequent-measurement) SEC content: no #### Title Plant ##### [350-950-35-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:08.281Z to 2026-09-10T00:05:08.281Z Record version: sha256:5554a06d2f7085d906ff266d800d65079743c03fbc8349d33130040f2b8142cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Capitalized costs 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 not be depreciated or charged to income unless circumstances indicate that the carrying amount of the title plant has been impaired. ##### [350-950-35-2](https://asc.understandingaccounting.org/asc/350/950/#350-950-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:08.281Z to 2026-09-10T00:05:08.281Z Record version: sha256:13e73601b5cfbcb66b91280c69ff185e147c13a157244c5164e516e842bdf547 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following circumstances may indicate that the carrying amount of title plant has been impaired: 1. a Changes in legal requirements or statutory practices 2. b Effects of obsolescence, demand, and other economic factors 3. c Actions of competitors and others that may affect competitive advantages 4. d Failure to maintain the title plant properly on a current basis 5. e Abandonment of the title plant or other circumstances that indicate obsolescence. ##### [350-950-35-3](https://asc.understandingaccounting.org/asc/350/950/#350-950-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:08.281Z to 2026-09-10T00:05:08.281Z Record version: sha256:975c6b93ef7adca467b9758ed7d06c94d876137af022967a1022ba6978b8688b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those events or changes in circumstances, in addition to the examples in paragraph [360-10-35-21](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-21), indicate that the carrying amount of the capitalized costs may not be recoverable. Accordingly, the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 apply. #### Storage and Retrieval ##### [350-950-35-4](https://asc.understandingaccounting.org/asc/350/950/#350-950-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:08.281Z to 2026-09-10T00:05:08.281Z Record version: sha256:bc66385ae6265029fec5484d77726826daea65b5f77fcb33b775a973c2dbe7b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Capitalized storage and retrieval costs (addressed in paragraph [950-350-25-3](https://asc.understandingaccounting.org/asc/350/950/#350-950-25-3)) incurred after a title plant is operational shall be charged to expense in a systematic and rational manner. Source downloaded (UTC): 2026-09-10T00:05:10.067Z to 2026-09-10T00:05:10.067Z Record version: sha256:33653b616f75230849337ca4107612382d90a6732fd7154f3b951120769f202c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-950-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/350/950/#40-derecognition) SEC content: no ##### [350-950-40-1](https://asc.understandingaccounting.org/asc/350/950/#350-950-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:10.067Z to 2026-09-10T00:05:10.067Z Record version: sha256:c0240f23e1b3de73b36dce7f5f35152d9eb4ab55b43f94d45f23931b00356cb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)). Source downloaded (UTC): 2026-09-10T00:05:12.805Z to 2026-09-10T00:05:19.146Z Record version: sha256:e7f84647e0618e6d3f659e2993ae6f82cfd1a4eec2fc768e184c7e0a8cf955e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-980: Intangibles—Goodwill and Other — Regulated Operations ### Machine-generated study aids ```json { "summary": "This subtopic applies Topic 350's goodwill and intangibles guidance to entities with regulated operations. Its core rule is that goodwill is not amortized and is tested for impairment under Topic 350 unless a regulator permits amortization of goodwill as an allowable cost for rate-making purposes, in which case the regulator's action provides reasonable assurance of a regulatory asset that is amortized over the period allowed for rate-making. It also addresses long-term power sales contracts acquired in a business combination and the need to review such contracts for loss-contract status.", "key_points": [ "Goodwill generally shall not be amortized and shall be tested for impairment in accordance with Topic 350, even for entities with regulated operations (350-980-35-1).", "A regulator may permit amortization of purchased goodwill over a specified period, direct that goodwill not be amortized, or direct a write-off of goodwill for rate-making purposes (350-980-35-1).", "If the regulator permits all or part of goodwill to be amortized as an allowable cost for rate-making, that action provides reasonable assurance of a regulatory asset (see 980-340-25-1), which is then amortized for financial reporting over the period allowed for rate-making (350-980-35-2).", "Absent such regulatory action, goodwill is not amortized and is accounted for under Topic 350 (350-980-35-2).", "A long-term power sales contract not accounted for as a derivative under Topic 815 must be periodically reviewed to determine whether it is a loss contract requiring immediate loss recognition (350-980-35-3).", "For long-term power sales contracts acquired in a purchase business combination, a premium for a contractual rate in excess of the current market rate is amortized over the remaining portion of the respective portion of the contract (for example, over the remaining fixed or scheduled period) (350-980-35-4).", "The scope follows Section 980-10-15, and paragraph 980-605-25-15 addresses power sales contracts meeting the definition of a derivative (350-980-15-1; 350-980-35-5)." ], "categories": [ "Subsequent measurement", "Intangibles and goodwill", "Industry-specific", "Impairment" ], "audience_level": "intermediate", "student_note": "The key insight is that rate regulation does not create an exception to the no-amortization rule for goodwill itself; instead, the regulator's allowance converts the recoverable amount into a regulatory asset that is amortized. Students often mistakenly say regulated entities may simply amortize goodwill.", "related_topics": [ "350-20", "980-10", "980-340", "980-605", "815", "805" ], "key_concepts": [ "goodwill", "regulatory asset", "allowable cost for rate-making", "goodwill amortization", "long-term power sales contract", "loss contract", "acquired contract premium", "regulated operations" ] } ``` Source downloaded (UTC): 2026-09-10T00:05:12.805Z to 2026-09-10T00:05:12.805Z Record version: sha256:75632dfc0fcea4ddc3aa351d61786fb5c5cd9bc8376420dd4ed1dbea6a402f4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-980-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/980/#05-overview-and-background) SEC content: no ##### [350-980-05-1](https://asc.understandingaccounting.org/asc/350/980/#350-980-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:12.805Z to 2026-09-10T00:05:12.805Z Record version: sha256:a556b3859f3b2efb81cf8009f943a5f1a76551142629a91248b08508bcaca545 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for goodwill and other intangible assets for entities with regulated operations. Source downloaded (UTC): 2026-09-10T00:05:15.370Z to 2026-09-10T00:05:15.370Z Record version: sha256:7c386f1874723a65ef7fde47f687eac20e28f07ef94507796a743216acec189a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-980-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/350/980/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [350-980-15-1](https://asc.understandingaccounting.org/asc/350/980/#350-980-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:15.370Z to 2026-09-10T00:05:15.370Z Record version: sha256:a717d9145b4b3bc6a4920b16bba39b305ca16384a33407ec41bc42ebe1eec646 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 980-10-15. Source downloaded (UTC): 2026-09-10T00:05:19.146Z to 2026-09-10T00:05:19.146Z Record version: sha256:da6bae9af7abbe99cb1b405776ed35f22699ecd5b80226e89afc79fb71214f3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-980-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/350/980/#35-subsequent-measurement) SEC content: no #### Amortization of Goodwill ##### [350-980-35-1](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:19.146Z to 2026-09-10T00:05:19.146Z Record version: sha256:6903dd96f1bfcf83575049ecd980ee46702f22d8d7c3cdbd65b560263a3c6481 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 350 states that goodwill shall not be amortized and shall be tested for impairment in accordance with that Subtopic. For rate-making purposes, a regulator may permit an entity to amortize purchased goodwill over a specified period. In other cases, a regulator may direct an entity not to amortize goodwill or to write off goodwill. ##### [350-980-35-2](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:19.146Z to 2026-09-10T00:05:19.146Z Record version: sha256:7aad731d72c93e51cbf229be64cbdf0058e3376f5ce89fa5e8b2513beeeded73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the regulator permits all or a portion of goodwill to be amortized over a specific time period as an allowable cost for rate-making purposes, the regulator's action provides reasonable assurance of the existence of a regulatory asset (see paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1)). That regulatory asset would then be amortized for financial reporting purposes over the period during which it will be allowed for rate-making purposes. Otherwise, goodwill shall not be amortized and shall be accounted for in accordance with Topic 350. #### Long-Term Power Sales Contracts ##### [350-980-35-3](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:19.146Z to 2026-09-10T00:05:19.146Z Record version: sha256:62d75681251774e0edaaae7f520268d71ff2d3c213b709790e89aa4d9c3710d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A long-term power sales contract that is not accounted for as a derivative instrument under Topic 815 shall be periodically reviewed to determine whether it is a loss contract in which the loss shall be recognized immediately. ##### [350-980-35-4](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:19.146Z to 2026-09-10T00:05:19.146Z Record version: sha256:006566ba4d6402f65818d4a780d27da2da561a0267bde8a7b9ba7997d975da57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For long-term power sales contracts acquired in a purchase business combination, any premium related to a contractual rate in excess of the current market rate should be amortized over the remaining portion of the respective portion of the contract. For example, if the above market rate relates to the fixed or scheduled portion of the contract, the premium would be amortized over the remaining fixed period of the acquired contract. ##### [350-980-35-5](https://asc.understandingaccounting.org/asc/350/980/#350-980-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:19.146Z to 2026-09-10T00:05:19.146Z Record version: sha256:3532d118bdaa81024334afe9caef677cc1624c571eb02dbd4834c7380ebd7fc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [980-605-25-15](https://asc.understandingaccounting.org/asc/605/980/#605-980-25-15) for a discussion of a long-term power sales contract that meets the definition of a derivative. Source downloaded (UTC): 2026-09-10T00:05:21.279Z to 2026-09-10T00:05:31.733Z Record version: sha256:0c65ffab08826133ff65fe4a910da449ea6831ec01540ae6dba49018c92cb87f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-985: Intangibles—Goodwill and Other — Software ### Machine-generated study aids ```json { "summary": "ASC 350-985 is a link-only subtopic: it contains no substantive rules of its own but points readers to Subtopic 985-20 for the capitalization of computer software costs as intangible assets. Specifically, it directs users to 985-20-25-3 (costs of producing product masters incurred after technological feasibility is established) and 985-20-25-10 (purchased software having an alternative future use).", "key_points": [ "This Subtopic only provides a link to guidance on costs of computer software that are capitalized as intangible assets (350-985-05-1).", "Costs of producing product masters incurred after technological feasibility has been established are capitalized under paragraph 985-20-25-3 (350-985-25-1).", "Costs of purchased software that has an alternative future use are capitalized under paragraph 985-20-25-10 (350-985-25-1).", "No recognition, measurement, or disclosure requirements are established within 350-985 itself; the operative guidance resides in Topic 985." ], "categories": [ "Recognition", "Intangibles and goodwill", "Industry-specific" ], "audience_level": "introductory", "student_note": "Don't look here for software accounting answers—350-985 is purely a cross-reference; the real rules for software to be sold, leased, or marketed are in 985-20 (and internal-use software is in 350-40). A common mistake is assuming this subtopic adds intangible-asset requirements for software beyond the Topic 985 guidance.", "related_topics": [ "985-20", "350-40", "350-30", "730" ], "key_concepts": [ "computer software costs", "capitalized software as intangible asset", "product masters", "technological feasibility", "purchased software", "alternative future use", "link-only subtopic" ] } ``` Source downloaded (UTC): 2026-09-10T00:05:21.279Z to 2026-09-10T00:05:21.279Z Record version: sha256:79fafbd57e7bd38ad042e07610f4c8adf10c2d60da926959b15d731afb4cc436 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-985-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/350/985/#00-status) SEC content: no ##### [350-985-00-1](https://asc.understandingaccounting.org/asc/350/985/#350-985-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:21.279Z to 2026-09-10T00:05:21.279Z Record version: sha256:be1fb46dff9fa1ed409f844e62c28ae7813679c02a2e68803da2af7e000a2753 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No updates have been made to this Subtopic. Source downloaded (UTC): 2026-09-10T00:05:24.672Z to 2026-09-10T00:05:24.672Z Record version: sha256:843c9828e66a96e94e76236f384537e6f3d7075e80ae221c0b1224f5f3d1b08e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-985-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/350/985/#05-overview-and-background) SEC content: no ##### [350-985-05-1](https://asc.understandingaccounting.org/asc/350/985/#350-985-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:24.672Z to 2026-09-10T00:05:24.672Z Record version: sha256:c37ffc7b4f64497d2e77374a62f63ed7c57ab8a8ff509b0408b482d8f17216f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic only provides a link to guidance on costs of computer software that are capitalized as intangible assets. Source downloaded (UTC): 2026-09-10T00:05:31.733Z to 2026-09-10T00:05:31.733Z Record version: sha256:ca55dd59b887a3329dded1d4cccdf820636efa71cfc2e002031c898ebb17bfa0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 350-985-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/350/985/#25-recognition) SEC content: no ##### [350-985-25-1](https://asc.understandingaccounting.org/asc/350/985/#350-985-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:05:31.733Z to 2026-09-10T00:05:31.733Z Record version: sha256:3ecbdc9c94de2bca919cd13f554e8da1274ddcf547c388aff90731b8571c0680 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [985-20-25-3](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-3) addresses capitalizing costs of producing [product masters](https://asc.understandingaccounting.org/glossary/p/#product-master "A completed version, ready for copying, of the computer software product, the documentation, and the training materials that are to be sold, leased, or otherwise marketed.") incurred after establishing technological feasibility. Paragraph [985-20-25-10](https://asc.understandingaccounting.org/asc/985/20/#985-20-25-10) addresses capitalizing the costs of purchased software that has an alternative future use.