# ASC 470-40-55: Debt — Product Financing Arrangements — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/470/40/#55-implementation-guidance-and-illustrations) 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): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:65c509b9e8323f6667284be95a8d0dcc30fae687acba645d400b60c0f18b8735 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-40-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/470/40/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [470-40-55-1](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:712a037067a28ed4a0ee979d939bda199c0358a32d4c2c0bc99fd9189468c6f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates how the guidance in paragraphs [470-40-25-1 through 25-4](https://asc.understandingaccounting.org/asc/470/40/#470-40-25-1) applies to [product financing arrangements](https://asc.understandingaccounting.org/glossary/p/#product-financing-arrangement "A product financing arrangement is a transaction in which an entity sells and agrees to repurchase inventory with the repurchase price equal to the original sale price plus carrying and financing costs, or other similar transactions.") 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 a [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [470-40-55-2](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:55d52d9192097b3bc7544f951e2e1b68a1ec20f8adace09d18534639d1d4fc1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [470-40-55-3](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:4751182c079548a17209a3c325f3b3a19b6b8831ef3bab82540e897870e11c73 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/). ##### [470-40-55-4](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:78b81f2cdfa995d84d5a2cded2855fb17f04e0872ba7a7c9df3fba9c82540739 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/). ##### [470-40-55-5](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:a9b5feed6fbcfa293b58bf7f6bb461954c82fb34d4a5fa5b143cd72d0078dde9 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/). ##### [470-40-55-6](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:aacb6c649fb7d54920f04a6d792f5367f7bf740020e0592f9c15a5e8d4450730 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [470-40-55-7](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:927eec4c9996371a86e700ae62607c4d7334781bc940a5f2d18c65ceae855c1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [470-40-55-8](https://asc.understandingaccounting.org/asc/470/40/#470-40-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:32:41.026Z to 2026-09-10T00:32:41.026Z Record version: sha256:5a5db85c1da1adb7d0325097f606489a46eb3ee836b627328e6dfcb346ca2312 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this product financing arrangement, both of the characteristics in paragraphs [470-40-15-2 through 15-3](https://asc.understandingaccounting.org/asc/470/40/#470-40-15-2) 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.