{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/15/#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":"720","topic_title":"Other Expenses","subtopic":"720-15","subtopic_title":"Start-Up Costs","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":"720-15-15-1","para":"15-1","html":"
The guidance in this Subtopic applies to all nongovernmental entities, including not-for-profit entities (NFPs).
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2014-10.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2014-10.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2014-10.
","snippet":"The guidance in this Subtopic applies to all nongovernmental entities, including not-for-profit entities (NFPs).\n(a) Subparagraph superseded by Accounting Standards Update No. 2014-10.\n(b) Subparagraph superseded by Acco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a46bac5faaaf0dace4a70cb07ff7467a66d1fc50e37021bdcf516abc3b3652d1","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31dd2742c20a447c625dfdf1d6e2aa8e0bc1b1aada80697805a6c7b457b0431a","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"720-15-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to start-up activities. The definition of start-up activities is based on the nature of the activities and not the time period in which they occur. Start-up activities include activities related to organizing a new entity (commonly referred to as organization costs).
","snippet":"The guidance in this Subtopic applies to start-up activities. The definition of start-up activities is based on the nature of the activities and not the time period in which they occur. Start-up activities include activi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d67fc36f3e923a223cbdbdbe7692869c012ddd004e16262b7bb01b6af78d9be3","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}},{"citation":"720-15-15-3","para":"15-3","html":"
Various terms are used to refer to start-up costs, such as preopening costs, preoperating costs, and organization costs. For purposes of this Subtopic, these costs are referred to as start-up costs.
","snippet":"Various terms are used to refer to start-up costs, such as preopening costs, preoperating costs, and organization costs. For purposes of this Subtopic, these costs are referred to as start-up costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7156e9a6387f775f33be3af3a6febae9a8470c7ae5707a3d36fb7d2bdaa90e64","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}},{"citation":"720-15-15-4","para":"15-4","html":"
Certain costs that may be incurred in conjunction with start-up activities are outside the scope of this Subtopic. Such costs should be accounted for in accordance with other existing authoritative accounting literature. The guidance in this Subtopic does not apply to the following transactions and activities:
  1. a
    Ongoing customer acquisition costs, such as policy acquisition costs (see Subtopic 944-30)
  2. b
    Loan origination costs (see Subtopic 310-20)
  3. c
    Activities related to routine, ongoing efforts to refine, enrich, or otherwise improve upon the qualities of an existing product, service, process, or facility
  4. d
    Activities related to mergers or acquisitions
  5. e
    Business process reengineering and information technology transformation costs addressed in Subtopic 720-45
  6. f
    Costs of acquiring or constructing long-lived assets and getting them ready for their intended uses (however, the costs of using long-lived assets that are allocated to start-up activities [for example, depreciation of computers] are within the scope of this Subtopic)
  7. g
    Costs of acquiring or producing inventory
  8. h
    Costs of acquiring intangible assets (however, the costs of using intangible assets that are allocated to start-up activities [for example, amortization of a purchased patent] are within the scope of this Subtopic)
  9. i
    Costs related to internally developed assets (for example, internal-use computer software costs) (however, the costs of using those assets that are allocated to start-up activities are within the scope of this Subtopic)
  10. j
    Research and development costs that are within the scope of Section 730-10-15
  11. k
    Regulatory costs that are within the scope of Section 980-10-15
  12. l
    Costs of fundraising incurred by NFPs
  13. m
    Costs of raising capital
  14. n
    Costs of advertising
  15. o
    Learning or start-up costs incurred in connection with existing contracts with customers and in anticipation of follow-on or future contracts for the same goods or services (see Subtopic 340-40 on other assets and deferred costs).
  16. p
    Costs incurred in connection with acquiring a contract with a customer (see Subtopic 340-40).
","snippet":"Certain costs that may be incurred in conjunction with start-up activities are outside the scope of this Subtopic. Such costs should be accounted for in accordance with other existing authoritative accounting literature.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbef4098474620580a3ba426819b445ecfc1ac23674626ee7b5a11cf3f760fec","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}},{"citation":"720-15-15-5","para":"15-5","html":"
Section 720-15-55 provides Examples of costs that are within the scope and outside the scope of this Subtopic.
","snippet":"Section 720-15-55 provides Examples of costs that are within the scope and outside the scope of this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11e6aedc5da0547102e177a99d45ba10af84e8213d114a2791c9fa356772860c","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:709c7e9d6762f25c61188f3e828e56fa24f407cb6ba60e5634a7e5cce4ad79a2","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22a928a8cd4003f0580675788bfb68ee50c50e27da6e6b9b8082855c62435ac5","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22a928a8cd4003f0580675788bfb68ee50c50e27da6e6b9b8082855c62435ac5","downloaded_from":"2026-09-10T01:07:05.683Z","last_downloaded_at":"2026-09-10T01:07:05.683Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483365","source_sha256":"5f7f60624d2035a52f22e9d683bf8109acb05f81cf865b0e92b00d115c16135e"}}