{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/610/20/#15-scope-and-scope-exceptions","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":"610","topic_title":"Other Income","subtopic":"610-20","subtopic_title":"Gains and Losses from the Derecognition of Nonfinancial Assets","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Entities","paragraphs":[{"citation":"610-20-15-1","para":"15-1","html":"
The guidance in this Subtopic applies to all entities.
","snippet":"The guidance in this Subtopic applies to all entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de84046143dce42398ce2c14bed39ee4d3c18770595da7d4aed732c21a8287b9","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cae0bc380645d40b3e9650bc8b3d84818b63eb8587cab0e45862303f449d019e","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"610-20-15-2","para":"15-2","html":"
Except as described in paragraph 610-20-15-4, the guidance in this Subtopic applies to gains or losses recognized upon the derecognition of nonfinancial assets and in substance nonfinancial assets. Nonfinancial assets within the scope of this Subtopic include intangible assets, land, buildings, or materials and supplies and may have a zero carrying value. In substance nonfinancial assets are described in paragraphs
610-20-15-5 through 15-8
.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2017-05.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2017-05.
","snippet":"Except as described in paragraph 610-20-15-4, the guidance in this Subtopic applies to gains or losses recognized upon the derecognition of nonfinancial assets and in substance nonfinancial assets. Nonfinancial assets wi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a33699ae707fa39bbf7efc78d6725c91aa1a646b242fcc49eee98e8b32de3d1e","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"citation":"610-20-15-3","para":"15-3","html":"
The guidance in this Subtopic applies to a transfer of an ownership interest (or a variable interest) in a consolidated subsidiary (that is not a business or nonprofit activity) only if all of the assets in the subsidiary are nonfinancial assets and/or in substance nonfinancial assets.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2017-05.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2017-05.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2017-05.
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2017-05.
  5. e
    Subparagraph superseded by Accounting Standards Update No. 2017-05.
","snippet":"The guidance in this Subtopic applies to a transfer of an ownership interest (or a variable interest) in a consolidated subsidiary (that is not a business or nonprofit activity) only if all of the assets in the subsidiar…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4268ea888b3647b7734dce07271434f391287fe377874ff88dbc1d780eb22ccb","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"citation":"610-20-15-3A","para":"15-3A","html":"
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
606-10-65-3An entity shall apply the guidance in this Subtopic, including the guidance on noncash consideration in paragraphs 610-20-32-3(a)(4) and 610-20-32-4, to a contract with share-based noncash consideration (for example, shares, share options, or other equity instruments) from a counterparty for the transfer of nonfinancial assets or in substance nonfinancial assets. The guidance in other Topics (including Topic 815 on derivatives and hedging and Topic 321 on equity securities) does not apply to share-based noncash consideration from a counterparty for the transfer of nonfinancial assets or in substance nonfinancial assets unless and until the entity’s right to receive or retain the share-based noncash consideration is unconditional under this Subtopic. To assess whether the right is unconditional under this Subtopic, only the contract terms that relate to the entity’s transfer of nonfinancial assets or in substance nonfinancial assets (or a specific outcome of the entity’s transfer) within the scope of this Subtopic are evaluated. The determination of whether the right is unconditional is consistent with the guidance in paragraph 606-10-45-4, which states that a right to consideration is unconditional if only the passage of time is required before payment of that consideration is due.
","snippet":"Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:606-10-65-3An entity shall apply the guidance in this Subtopic, including the guidance on noncash consideration in paragraphs 610-20-32-3(a)…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5c13ec3906a7e1c8f3120c9fccaca752d432ea2eb937dfb1c7c24a4030f9a880","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"citation":"610-20-15-4","para":"15-4","html":"
The guidance in this Subtopic does not apply to the following:
  1. a
    A transfer of a nonfinancial asset or an in substance nonfinancial asset in a contract with a customer, see Topic 606 on revenue from contracts with customers
  2. b
    A transfer of a subsidiary or group of assets that constitutes a business or nonprofit activity, see Section 810-10-40 on consolidation
  3. c
    Sale and leaseback transactions within the scope of Subtopic 842-40 on leases
  4. d
    A conveyance of oil and gas mineral rights within the scope of Subtopic 932-360 on extractive activities—oil and gas
  5. e
    A transaction that is entirely accounted for in accordance with Topic 860 on transfers and servicing (for example, a transfer of investments accounted for under Topic 320 on investments—debt securities, Topic 321 on investments—equity securities, Topic 323 on investments—equity method and joint ventures, Topic 325 on investments—other, Topic 815 on derivatives and hedging, and Topic 825 on financial instruments)
  6. f
    A transfer of nonfinancial assets that is part of the consideration in a business combination within the scope of Topic 805 on business combinations, see paragraph 805-30-30-8
  7. g
    A nonmonetary transaction within the scope of Topic 845 on nonmonetary transactions
  8. h
    A lease contract within the scope of Topic 842 on leases
  9. i
    An exchange of takeoff and landing slots within the scope of Subtopic 908-350 on airlines—intangibles
  10. j
    A contribution of cash and other assets, including a promise to give, within the scope of Subtopic 720-25 on other expenses—contributions made or within the scope of Subtopic 958-605 on not-for-profit entities—revenue recognition
  11. k
    A transfer of an investment in a venture that is accounted for by proportionately consolidating the assets, liabilities, revenues, and expenses of the venture as described in paragraph 810-10-45-14
  12. l
    A transfer of nonfinancial assets or in substance nonfinancial assets solely between entities or persons under common control, such as between a parent and its subsidiaries or between two subsidiaries of the same parent.
","snippet":"The guidance in this Subtopic does not apply to the following:\n(a) A transfer of a nonfinancial asset or an in substance nonfinancial asset in a contract with a customer, see Topic 606 on revenue from contracts with cust…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f88a2620e7a4da3f2345e4b376e5cebbc9e9819eaabc7a3fa64bda4cd21525f","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fecba603b66fe9a68905433326733ae04730d2f1b0a056014224cb4bf312e9b","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"block":null,"heading":"In Substance Nonfinancial Assets","paragraphs":[{"citation":"610-20-15-5","para":"15-5","html":"
An in substance nonfinancial asset is a financial asset (for example, a receivable) promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to a counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty in the contract are in substance nonfinancial assets. For purposes of this evaluation, when a contract includes the transfer of ownership interests in one or more consolidated subsidiaries that is not a business, an entity shall evaluate the underlying assets in those subsidiaries.
","snippet":"An in substance nonfinancial asset is a financial asset (for example, a receivable) promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are pro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c39980726e6e76dcb2acf7b9b52ba4b961599fc2138766fc4b2622e70672b90","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"citation":"610-20-15-6","para":"15-6","html":"
When a contract includes the transfer of ownership interests in one or more consolidated subsidiaries that is not a business, and substantially all of the fair value of the assets promised to a counterparty in the contract is not concentrated in nonfinancial assets, an entity shall evaluate whether substantially all of the fair value of the assets promised to the counterparty in an individual subsidiary within the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets in an individual subsidiary is concentrated in nonfinancial assets, then the financial assets in that subsidiary are in substance nonfinancial assets. (See Case C of Example 1 in paragraphs
610-20-55-9 through 55-10
.)
","snippet":"When a contract includes the transfer of ownership interests in one or more consolidated subsidiaries that is not a business, and substantially all of the fair value of the assets promised to a counterparty in the contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bbd80aa02d9bedc4bee4d50c24c3f812798a7c563cdc90195740bf6dd59ed8ab","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"citation":"610-20-15-7","para":"15-7","html":"
When determining whether substantially all of the fair value of the assets promised to a counterparty in a contract (or an individual consolidated subsidiary within a contract) is concentrated in nonfinancial assets, cash or cash equivalents promised to the counterparty shall be excluded. Also, any liabilities assumed or relieved by the counterparty shall not affect the determination of whether substantially all of the fair value of the assets transferred is concentrated in nonfinancial assets.
","snippet":"When determining whether substantially all of the fair value of the assets promised to a counterparty in a contract (or an individual consolidated subsidiary within a contract) is concentrated in nonfinancial assets, cas…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58c4bdae579f3e2f062c2bf8313984c2a9a7ee61adad516fdbb8d46231ba8ed4","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"citation":"610-20-15-8","para":"15-8","html":"
If all of the assets promised to a counterparty in an individual consolidated subsidiary within a contract are not nonfinancial assets and/or in substance nonfinancial assets, an entity shall apply the guidance in paragraph 810-10-40-3A(c) or 810-10-45-21A(b)(2) to determine the guidance applicable to that subsidiary.
","snippet":"If all of the assets promised to a counterparty in an individual consolidated subsidiary within a contract are not nonfinancial assets and/or in substance nonfinancial assets, an entity shall apply the guidance in paragr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3576883414adfa75b12e995c878549a923213fe2929393c87caf75a06e056330","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e651cc9cc8c58567bab553fb1181d0cd2ebe692fa1e59a9a0afb195da7a6b669","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"block":null,"heading":"Contracts Partially within the Scope of Other Topics","paragraphs":[{"citation":"610-20-15-9","para":"15-9","html":"
If the promises to a counterparty in a contract are not all nonfinancial assets or all nonfinancial assets and in substance nonfinancial assets, a contract may be partially within the scope of this Subtopic and partially within the scope of other Topics. For example, in addition to transferring nonfinancial assets and in substance nonfinancial assets that are within the scope of this Subtopic, an entity may issue a guarantee to the counterparty that is within the scope of Topic 460 on guarantees. An entity shall apply the guidance in paragraph 606-10-15-4 to determine how to separate and measure one or more parts of a contract that are within the scope of other Topics. (See also Case A of Example 1 in paragraphs
610-20-55-2 through 55-5
and Case C of Example 1 in paragraphs
610-20-55-9 through 55-10
.)
","snippet":"If the promises to a counterparty in a contract are not all nonfinancial assets or all nonfinancial assets and in substance nonfinancial assets, a contract may be partially within the scope of this Subtopic and partially…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43d3afcdfcf3919313103f3b889acc3963484dd54afef7d97f82a5d9324786cd","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d904cba755bd7bf80112119ba7399a75da3a35e5cfa6a7c5c07ec346ae400700","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},{"block":null,"heading":"Decision Tree","paragraphs":[{"citation":"610-20-15-10","para":"15-10","html":"
The following decision tree depicts the process for evaluating whether assets promised to a counterparty in a contract (or parts of a contract) shall be derecognized within the scope of this Subtopic. The decision tree is not intended as a substitute for the guidance in this Subtopic.
","snippet":"The following decision tree depicts the process for evaluating whether assets promised to a counterparty in a contract (or parts of a contract) shall be derecognized within the scope of this Subtopic. The decision tree i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a28f42ba9b5ebc023dc613ea8a3ccaa33a1cc64185c8a0129e3119b6c678c65","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ffb864d691680ff4a98c0ecc47110323c15e09b7aac0f4c8dae653573780bd7","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db9168e3cab60ca0eecdd8d927364595cc896e2baf4a37872559a337cfeddab7","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db9168e3cab60ca0eecdd8d927364595cc896e2baf4a37872559a337cfeddab7","downloaded_from":"2026-09-10T00:54:54.566Z","last_downloaded_at":"2026-09-10T00:54:54.566Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480099","source_sha256":"9ab91b66032def56eed9cdf61cd635598682e6a1538f93220d779d6b1a99907c"}}