# ASC 720-15-05: Other Expenses — Start-Up Costs — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 720-15-05: 05 Overview and Background

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##### [720-15-05-1](https://asc.understandingaccounting.org/asc/720/15/#720-15-05-1)

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This Subtopic provides guidance on the financial reporting of start-up and organization costs. This Subtopic defines [start-up activities](https://asc.understandingaccounting.org/glossary/s/#start-up-activities "Defined broadly as those one-time activities related to any of the following: Opening a new facility Introducing a new product or service Conducting business in a new territory Conducting business with an entirely new class of customers (for example, a manufacturer who does all of its business with retailers attempts to sell merchandise directly to the public) or beneficiary Initiating a new process in an existing facility Commencing some new operation.") and provides Examples to help entities determine which costs fall within the scope and outside the scope of this Subtopic.