{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/470/40/#55-implementation-guidance-and-illustrations","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.","topic":"470","topic_title":"Debt","subtopic":"470-40","subtopic_title":"Product Financing Arrangements","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"470-40-55-1","para":"55-1","html":"
This Example illustrates how the guidance in paragraphs
470-40-25-1 through 25-4
applies to product financing arrangements in which a sponsor arranges for another entity to purchase the product on the sponsor's behalf and, in a related transaction, agrees to purchase the product from the other entity.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
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The facts assumed in this Example are illustrative only and are not intended to modify or limit in any way the provisions of this Subtopic. The facts assumed in the Example could vary in one or more respects without altering the application of the provisions of this Subtopic.
","snippet":"The facts assumed in this Example are illustrative only and are not intended to modify or limit in any way the provisions of this Subtopic. The facts assumed in the Example could vary in one or more respects without alte…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55d52d9192097b3bc7544f951e2e1b68a1ec20f8adace09d18534639d1d4fc1b","downloaded_from":"2026-09-10T00:32:41.026Z","last_downloaded_at":"2026-09-10T00:32:41.026Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481445","source_sha256":"89e9b706ac2c62cafa24a424e5a3ed16b473d4f64a9c2e8604d97b95239e4caf"}},{"citation":"470-40-55-3","para":"55-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
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Paragraph superseded by Accounting Standards Update No. 2014-09.
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Paragraph superseded by Accounting Standards Update No. 2014-09.
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A sponsor arranges for another entity to buy product on the sponsor's behalf with a related agreement to purchase the product from the other entity.
","snippet":"A sponsor arranges for another entity to buy product on the sponsor's behalf with a related agreement to purchase the product from the other entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aacb6c649fb7d54920f04a6d792f5367f7bf740020e0592f9c15a5e8d4450730","downloaded_from":"2026-09-10T00:32:41.026Z","last_downloaded_at":"2026-09-10T00:32:41.026Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481445","source_sha256":"89e9b706ac2c62cafa24a424e5a3ed16b473d4f64a9c2e8604d97b95239e4caf"}},{"citation":"470-40-55-7","para":"55-7","html":"
The sponsor arranges for the other entity to purchase on its behalf an existing supply of fuel. In a related agreement, the sponsor agrees to purchase the fuel from the other entity over a specified period and at specified prices. The prices established are adequate to cover all financing and holding costs of the other entity. The other entity finances the purchase of fuel using the fuel and the agreement as collateral.
","snippet":"The sponsor arranges for the other entity to purchase on its behalf an existing supply of fuel. In a related agreement, the sponsor agrees to purchase the fuel from the other entity over a specified period and at specifi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:927eec4c9996371a86e700ae62607c4d7334781bc940a5f2d18c65ceae855c1f","downloaded_from":"2026-09-10T00:32:41.026Z","last_downloaded_at":"2026-09-10T00:32:41.026Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481445","source_sha256":"89e9b706ac2c62cafa24a424e5a3ed16b473d4f64a9c2e8604d97b95239e4caf"}},{"citation":"470-40-55-8","para":"55-8","html":"
In this product financing arrangement, both of the characteristics in paragraphs
470-40-15-2 through 15-3
are present; accordingly, the sponsor reports the asset (fuel) and the related liability on its balance sheet when the fuel is acquired by the other entity. Financing and holding costs are accrued by the sponsor as incurred by the other entity and accounted for in accordance with the sponsor's accounting policies for financing and holding costs. Interest costs are separately identified and accounted for in accordance with Topic 835.
","snippet":"In this product financing arrangement, both of the characteristics in paragraphs 470-40-15-2 through 15-3 are present; accordingly, the sponsor reports the asset (fuel) and the related liability on its balance sheet when…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a5db85c1da1adb7d0325097f606489a46eb3ee836b627328e6dfcb346ca2312","downloaded_from":"2026-09-10T00:32:41.026Z","last_downloaded_at":"2026-09-10T00:32:41.026Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481445","source_sha256":"89e9b706ac2c62cafa24a424e5a3ed16b473d4f64a9c2e8604d97b95239e4caf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb5e657406d42f473f0154c90659b8ab0673b29adde370841182d1e6e31cdf63","downloaded_from":"2026-09-10T00:32:41.026Z","last_downloaded_at":"2026-09-10T00:32:41.026Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481445","source_sha256":"89e9b706ac2c62cafa24a424e5a3ed16b473d4f64a9c2e8604d97b95239e4caf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65c509b9e8323f6667284be95a8d0dcc30fae687acba645d400b60c0f18b8735","downloaded_from":"2026-09-10T00:32:41.026Z","last_downloaded_at":"2026-09-10T00:32:41.026Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481445","source_sha256":"89e9b706ac2c62cafa24a424e5a3ed16b473d4f64a9c2e8604d97b95239e4caf"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65c509b9e8323f6667284be95a8d0dcc30fae687acba645d400b60c0f18b8735","downloaded_from":"2026-09-10T00:32:41.026Z","last_downloaded_at":"2026-09-10T00:32:41.026Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481445","source_sha256":"89e9b706ac2c62cafa24a424e5a3ed16b473d4f64a9c2e8604d97b95239e4caf"}}