{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/450/912/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"450-912","topic":"450","title":"Contractors—Federal Government","area":"Liabilities","paragraphs":5,"summary":"ASC 450-912 is the contingencies guidance specific to contractors dealing with the U.S. federal government. It addresses contingencies arising when a contract is terminated for the convenience of the government and contingencies related to subcontractor claims under those terminated contracts. The substantive recognition guidance is largely cross-referenced elsewhere—subcontractor claim contingencies are addressed in paragraph 912-20-25-3, and the former recognition paragraph was superseded by ASU 2014-09.","concepts":["termination for convenience","government contracts","subcontractor claims","loss contingency","gain contingency","terminated contract claims","superseded guidance"],"categories":["Contingencies and guarantees","Industry-specific","Recognition","Revenue"],"level":"intermediate","topic_title":"Contingencies","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"450-912-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL51653166-203231\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/450/912/#450-912-25-1\" class=\"xref\">912-450-25-1</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a></td><td class=\"entry\">05/28/2014</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n912-450-25-1 | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 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guidance to government contractors related to contingencies associated with contracts terminated for the convenience of the government and <a href=\"/glossary/s/#subcontractor-claims\" class=\"term\" title=\"Those obligations of a contractor to a subcontractor that arise from the subcontractor's costs incurred through transactions that were related to a contract terminated but did not result in the transfer of billable materials or services to the contractor before termination.\"><span>subcontractor claims</span></a> under terminated contracts.</div></div>","snippet":"This Subtopic provides guidance to government contractors related to contingencies associated with contracts terminated for the convenience of the government and subcontractor claims under terminated contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab8eeec8e5b7937b5e30c0c916296394d9b9b9a27a48a51c751a90524bd6d51c","downloaded_from":"2026-09-10T00:28:16.856Z","last_downloaded_at":"2026-09-10T00:28:16.856Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478227","source_sha256":"aa4a7c2ee4e17b9fcb43f99405648eaa913040fd1c302151c21943556ae5f77f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e45c7c243ed023fb0a20808a4f1d1513a3993be3babd87779ddd56d58f1ea38","downloaded_from":"2026-09-10T00:28:16.856Z","last_downloaded_at":"2026-09-10T00:28:16.856Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not 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class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-EFF9C8BB-54F8-4F3B-8687-D616705EBFFA.ditamap\" class=\"ditamap\">912-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 912-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:34e7a36bd04a1e62ed6efef8f826ac2e766e7ef8ce420f8cf208df636af2a4a3","downloaded_from":"2026-09-10T00:28:19.356Z","last_downloaded_at":"2026-09-10T00:28:19.356Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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Accounting Standards Update No. 2014-09</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a7b918e08e19ecbeb28c2cf4d131075da2fb2017cdb441fb1e171a362667a60d","downloaded_from":"2026-09-10T00:28:25.535Z","last_downloaded_at":"2026-09-10T00:28:25.535Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477238","source_sha256":"2c731a1ac49120c5f6d89eba0516879bb5095aa78b8f51b9347c1de75f43715e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1eaa634639d9cf1b3917a746387bbe2091d7ff2564b721376a85391cc186ba93","downloaded_from":"2026-09-10T00:28:25.535Z","last_downloaded_at":"2026-09-10T00:28:25.535Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477238","source_sha256":"2c731a1ac49120c5f6d89eba0516879bb5095aa78b8f51b9347c1de75f43715e"}},{"block":null,"heading":"Subcontractor Claims","paragraphs":[{"citation":"450-912-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">For a discussion of <a href=\"/glossary/s/#subcontractor-claims\" class=\"term\" title=\"Those obligations of a contractor to a subcontractor that arise from the subcontractor's costs incurred through transactions that were related to a contract terminated but did not result in the transfer of billable materials or services to the contractor before termination.\"><span>subcontractor claims</span></a> as they relate to contingencies, see paragraph <a href=\"/asc/912/20/#912-20-25-3\" class=\"xref\">912-20-25-3</a>.</div></div>","snippet":"For a discussion of subcontractor claims as they relate to contingencies, see paragraph 912-20-25-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e6d3863481037dd262164d591a048d0637d7b144024700e4979735129f9b116","downloaded_from":"2026-09-10T00:28:25.535Z","last_downloaded_at":"2026-09-10T00:28:25.535Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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It addresses contingencies arising when a contract is terminated for the convenience of the government and contingencies related to subcontractor claims under those terminated contracts. The substantive recognition guidance is largely cross-referenced elsewhere—subcontractor claim contingencies are addressed in paragraph 912-20-25-3, and the former recognition paragraph was superseded by ASU 2014-09.","key_points":["The Subtopic covers contingencies of government contractors associated with contracts terminated for the convenience of the government and subcontractor claims under those terminated contracts (450-912-05-1).","Scope follows the Overall Subtopic scope in Section 912-10-15, so it applies to entities with federal government contracts (450-912-15-1).","Paragraph 450-912-25-1, which previously provided recognition guidance, was superseded by Accounting Standards Update No. 2014-09 (the revenue recognition standard).","Subcontractor claims as they relate to contingencies are addressed by cross-reference to paragraph 912-20-25-3 rather than in this Subtopic (450-912-25-2).","Because of the ASU 2014-09 supersession, termination-for-convenience claim amounts are now generally analyzed under the contract-with-customer revenue model rather than as contingent gains under Topic 450."],"categories":["Contingencies and guarantees","Industry-specific","Recognition","Revenue"],"audience_level":"intermediate","student_note":"This is a short, mostly cross-referencing industry subtopic—its practical significance is that ASU 2014-09 gutted its recognition paragraph, pushing termination claims into the Topic 606 revenue model. The common misunderstanding is assuming Topic 450's gain-contingency rules still govern claims on contracts terminated for the government's convenience.","related_topics":["912-10","912-20","912-605","606","450-20","450-30"],"key_concepts":["termination for convenience","government contracts","subcontractor claims","loss contingency","gain contingency","terminated contract claims","superseded guidance"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3be460a8241727c1fc07022dcc7686a0cdfaec415cb2612169de54f82d68801b","downloaded_from":"2026-09-10T00:28:13.837Z","last_downloaded_at":"2026-09-10T00:28:25.535Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"405-912","title":"Contractors—Federal Government","topic_title":"Liabilities","score":0.8038,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2cd815408c85b15ac7e27695c4195d72bf70330d0a0ab298f4cbd7abb3f190d","downloaded_from":"2026-09-10T00:16:17.263Z","last_downloaded_at":"2026-09-10T00:16:37.609Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"275-912","title":"Contractors—Federal Government","topic_title":"Risks and Uncertainties","score":0.7684,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c6ba5022673343322a43c6c896735bce93e7f53693c6baf9b315b64bc6a2731e","downloaded_from":"2026-09-09T23:22:22.572Z","last_downloaded_at":"2026-09-09T23:22:31.368Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"912-20","title":"Contract Costs","topic_title":"Contractors—Federal Government","score":0.7372,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1fd65e87e6231faee21c1e6bb40778039d661c8588f13ceb3d5d931e282e1b95","downloaded_from":"2026-09-10T02:10:07.952Z","last_downloaded_at":"2026-09-10T02:10:28.388Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"912-10","title":"Overall","topic_title":"Contractors—Federal Government","score":0.7366,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f4456d27cce8060112a2cf368f00504b66b66238c40f1112ca4d1c17df91283","downloaded_from":"2026-09-10T02:09:56.619Z","last_downloaded_at":"2026-09-10T02:10:05.382Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"220-912","title":"Contractors—Federal Government","topic_title":"Income Statement—Reporting Comprehensive Income","score":0.7101,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9174df8e0379cf9fec1db15cae0d8634c63476b101cb59d0ff0ea4e36ff653d","downloaded_from":"2026-09-09T23:05:16.949Z","last_downloaded_at":"2026-09-09T23:05:24.159Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"450-10","title":"Overall","topic_title":"Contingencies","score":0.6954,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8cd5e762689b250ba6b4e993d3bdc032a4ff9946309f02decee51b3d4769abca","downloaded_from":"2026-09-10T00:26:49.502Z","last_downloaded_at":"2026-09-10T00:26:58.831Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"450-30","title":"Gain Contingencies","topic_title":"Contingencies","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ee5e4c5fb04964bcaa29de4b3c01be4af2a83290d89406690bb476a1dbf70c6","downloaded_from":"2026-09-10T00:27:48.583Z","last_downloaded_at":"2026-09-10T00:28:10.377Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"450-954","title":"Health Care Entities","topic_title":"Contingencies","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f94417382ca035dd8c3cdf61955523cc36ac0eb650a03390ecab3c31522b8c7","downloaded_from":"2026-09-10T00:28:27.303Z","last_downloaded_at":"2026-09-10T00:28:57.040Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not 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