ASC

ASC 705-912

Contractors—Federal Government

705 Cost of Sales and Services

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In brief

IntermediateIndustry-specificRevenueTransition and effective dates

ASC 705-912 formerly contained cost-of-sales guidance for contractors with the federal government, addressing matters such as contract costs and related recognition and disclosure. Every paragraph in the subtopic (scope, recognition, and disclosure) was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic is therefore an empty shell; federal government contractors now apply ASC 606 and the cost guidance in ASC 340-40.

Key points (5)
  • All substantive paragraphs — 705-912-05-1 (overview), 705-912-15-1 (scope), 705-912-25-1 through 25-3 (recognition), and 705-912-50-1 (disclosure) — were superseded by Accounting Standards Update No. 2014-09.
  • No extant recognition, measurement, or disclosure requirements remain in ASC 705-912.
  • Revenue and related contract accounting for federal government contractors is now governed by ASC 606, Revenue from Contracts with Customers.
  • Costs to obtain and fulfill a contract that were previously addressed by industry cost guidance are now addressed in ASC 340-40, Other Assets and Deferred Costs—Contracts with Customers.
  • Entities should consult ASC 912 (Contractors—Federal Government) industry subtopics for any guidance that survived ASU 2014-09 and the transition provisions in ASC 606-10-65-1.

For students. This subtopic is a placeholder — knowing that ASU 2014-09 wiped out the legacy industry-specific contractor cost guidance is the whole point. The common mistake is citing 705-912 as live authority for government contract costs instead of ASC 606 and ASC 340-40.

superseded guidancefederal government contractorscost of salescontract costsrevenue from contracts with customersindustry-specific guidance

Machine-generated study aid for ASC 705-912. Check the source paragraphs below.

705-912-00Status

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705-912-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
912-705-05-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-705-15-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-705-25-1 through 25-3
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
912-705-50-1 Superseded Accounting Standards Update No. 2014-09 05/28/2014

705-912-05Overview and Background

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705-912-15Scope and Scope Exceptions

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705-912-25Recognition

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705-912-50Disclosure

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Related subtopics