# ASC 720-15-15: Other Expenses — Start-Up Costs — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/15/#15-scope-and-scope-exceptions) 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): 2026-09-10T01:07:05.683Z to 2026-09-10T01:07:05.683Z Record version: sha256:22a928a8cd4003f0580675788bfb68ee50c50e27da6e6b9b8082855c62435ac5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-15-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/720/15/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [720-15-15-1](https://asc.understandingaccounting.org/asc/720/15/#720-15-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:05.683Z to 2026-09-10T01:07:05.683Z Record version: sha256:a46bac5faaaf0dace4a70cb07ff7467a66d1fc50e37021bdcf516abc3b3652d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 a [Subparagraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). #### Transactions ##### [720-15-15-2](https://asc.understandingaccounting.org/asc/720/15/#720-15-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:05.683Z to 2026-09-10T01:07:05.683Z Record version: sha256:d67fc36f3e923a223cbdbdbe7692869c012ddd004e16262b7bb01b6af78d9be3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to [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."). 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). ##### [720-15-15-3](https://asc.understandingaccounting.org/asc/720/15/#720-15-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:05.683Z to 2026-09-10T01:07:05.683Z Record version: sha256:7156e9a6387f775f33be3af3a6febae9a8470c7ae5707a3d36fb7d2bdaa90e64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [720-15-15-4](https://asc.understandingaccounting.org/asc/720/15/#720-15-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:05.683Z to 2026-09-10T01:07:05.683Z Record version: sha256:fbef4098474620580a3ba426819b445ecfc1ac23674626ee7b5a11cf3f760fec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") 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). ##### [720-15-15-5](https://asc.understandingaccounting.org/asc/720/15/#720-15-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:05.683Z to 2026-09-10T01:07:05.683Z Record version: sha256:11e6aedc5da0547102e177a99d45ba10af84e8213d114a2791c9fa356772860c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 720-15-55 provides Examples of costs that are within the scope and outside the scope of this Subtopic.