# ASC 450-912: Contingencies — Contractors—Federal Government Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/450/912/) 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): 2026-09-10T00:28:13.837Z to 2026-09-10T00:28:25.535Z Record version: sha256:b4c20571eab6d21dfa83b2df41f512651a8502c39e565376dc5608e55015a423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-912: Contingencies — Contractors—Federal Government ### Machine-generated study aids ```json { "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claim contingencies are addressed in paragraph 912-20-25-3, and the former recognition paragraph was superseded by ASU 2014-09.", "key_points": [ "The Subtopic covers contingencies of government contractors associated with contracts terminated for the convenience of the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government contracts (450-912-15-1).", "Paragraph 450-912-25-1, which previously provided recognition guidance, was superseded by Accounting Standards Update No. 2014-09 (the revenue recognition standard).", "Subcontractor claims as they relate to contingencies are addressed by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" ] } ``` Source downloaded (UTC): 2026-09-10T00:28:13.837Z to 2026-09-10T00:28:13.837Z Record version: sha256:b8b42abd54027795b4c3ecc1813f2674c7382d51679c9988f186b1cdbe0f545a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-912-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/450/912/#00-status) SEC content: no ##### [450-912-00-1](https://asc.understandingaccounting.org/asc/450/912/#450-912-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:13.837Z to 2026-09-10T00:28:13.837Z Record version: sha256:4046d837f1b48c2279e50297136297cf7de2421f3332b89e8ae5a9d646cc7346 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
912-450-25-1SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:28:16.856Z to 2026-09-10T00:28:16.856Z Record version: sha256:0e6bc9879f2300669d31c251757594ccf04319f1d674ae3ab315dafef9304cd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-912-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/450/912/#05-overview-and-background) SEC content: no ##### [450-912-05-1](https://asc.understandingaccounting.org/asc/450/912/#450-912-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:16.856Z to 2026-09-10T00:28:16.856Z Record version: sha256:ab8eeec8e5b7937b5e30c0c916296394d9b9b9a27a48a51c751a90524bd6d51c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to government contractors related to contingencies associated with contracts terminated for the convenience of the government and [subcontractor claims](https://asc.understandingaccounting.org/glossary/s/#subcontractor-claims "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.") under terminated contracts. Source downloaded (UTC): 2026-09-10T00:28:19.356Z to 2026-09-10T00:28:19.356Z Record version: sha256:7b8baac88c46c5c8e8d47d9baf5ca7eeb292235369bbca835be185cd2ec28359 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-912-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/450/912/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [450-912-15-1](https://asc.understandingaccounting.org/asc/450/912/#450-912-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:19.356Z to 2026-09-10T00:28:19.356Z Record version: sha256:34e7a36bd04a1e62ed6efef8f826ac2e766e7ef8ce420f8cf208df636af2a4a3 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 912-10-15. Source downloaded (UTC): 2026-09-10T00:28:25.535Z to 2026-09-10T00:28:25.535Z Record version: sha256:3d15964b7e463a98ae2d0abe89e341643c6bb78037df4ce7c587b3640a5e0185 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-912-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/450/912/#25-recognition) SEC content: no ##### [450-912-25-1](https://asc.understandingaccounting.org/asc/450/912/#450-912-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:25.535Z to 2026-09-10T00:28:25.535Z Record version: sha256:a7b918e08e19ecbeb28c2cf4d131075da2fb2017cdb441fb1e171a362667a60d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Subcontractor Claims ##### [450-912-25-2](https://asc.understandingaccounting.org/asc/450/912/#450-912-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:25.535Z to 2026-09-10T00:28:25.535Z Record version: sha256:8e6d3863481037dd262164d591a048d0637d7b144024700e4979735129f9b116 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a discussion of [subcontractor claims](https://asc.understandingaccounting.org/glossary/s/#subcontractor-claims "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.") as they relate to contingencies, see paragraph [912-20-25-3](https://asc.understandingaccounting.org/asc/912/20/#912-20-25-3).