ASC

ASC 405-910

Contractors—Construction

405 Liabilities

Download JSONDownload Markdown7 paragraphs · 5 sectionsJump to summary

Source downloaded: .Record version db21e4661c63. Effective date must be checked in the source.

In brief

IntermediatePresentationDisclosureRevenueTransition and effective dates

ASC 405-910 formerly provided liability guidance (offsetting/presentation and disclosure of advances, billings, and related contractor obligations) for construction contractors. Every paragraph in the subtopic — Sections 05, 15, 45, and 50 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). As a result, the subtopic contains no operative guidance; contract liabilities of construction contractors are now addressed under ASC 606 (and contract costs under ASC 340-40).

Key points (5)
  • All content of ASC 405-910 was superseded by Accounting Standards Update No. 2014-09, including 405-910-05-1, 405-910-15-1, 405-910-45-1 and 45-2, and 405-910-50-1 and 50-2.
  • Because Sections 05 (Overview and Background), 15 (Scope), 45 (Other Presentation Matters), and 50 (Disclosure) are all superseded, the subtopic imposes no current recognition, presentation, or disclosure requirements.
  • Contractor obligations arising from customer contracts (for example, amounts billed or consideration received in advance of performance) are now accounted for as contract liabilities under ASC 606, with presentation guidance in 606-10-45-1 through 45-5.
  • Legacy construction-contractor liability guidance formerly linked to ASC 605-35 should not be applied for periods after the adoption of ASU 2014-09.
  • Researchers encountering citations to 405-910 in pre-2014-09 literature must map them to the corresponding ASC 606 (revenue) or ASC 340-40 (contract cost) guidance.

For students. The only thing to know here is that this subtopic is entirely empty post-ASU 2014-09 — a common exam trap is citing legacy construction-contractor liability rules that no longer exist; go to ASC 606 for contract liabilities and ASC 340-40 for contract costs instead.

superseded guidanceconstruction contractorscontract liabilitybillings in excess of costsrevenue from contracts with customerscodification research

Machine-generated study aid for ASC 405-910. Check the source paragraphs below.

405-910-00Status

Source downloaded: .Record version aede065a64c4. Effective date must be checked in the source.

405-910-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
910-405-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-405-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-405-45-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-405-45-2SupersededAccounting Standards Update No. 2014-0905/28/2014
910-405-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-405-50-2SupersededAccounting Standards Update No. 2014-0905/28/2014

405-910-05Overview and Background

Source downloaded: .Record version fc0ed5ab1da3. Effective date must be checked in the source.

405-910-15Scope and Scope Exceptions

Source downloaded: .Record version 361ce4a271a0. Effective date must be checked in the source.

405-910-45Other Presentation Matters

Source downloaded: .Record version baa9f9ee8b6c. Effective date must be checked in the source.

405-910-50Disclosure

Source downloaded: .Record version 8a4be55775b3. Effective date must be checked in the source.

Related subtopics