# ASC 720-25-55: Other Expenses — Contributions Made — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/25/#55-implementation-guidance-and-illustrations)

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): 2026-09-10T01:08:09.526Z to 2026-09-10T01:08:09.526Z

Record version: sha256:64c10b516a4f473d4f49ec097393157c61da8f144ece73eef049bc22e1527bd9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 720-25-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/720/25/#55-implementation-guidance-and-illustrations)

SEC content: no

#### Implementation Guidance

##### [720-25-55-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-55-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:08:09.526Z to 2026-09-10T01:08:09.526Z

Record version: sha256:fb07cbfb36c24fd2edf6f5b4440b21ac1fc3ec4deb77584de734963ee381b5ef

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


See paragraph [958-720-55-1A](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-1A) for a diagram that depicts the process for determining whether a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") is conditional in addition to distinguishing contributions from exchange transactions. Paragraphs

[958-605-55-4 through 55-6](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-4)

and [958-605-55-13A through 55-14I](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-13A) provide additional guidance and illustrations on what is a [conditional contribution](https://asc.understandingaccounting.org/glossary/c/#conditional-contribution "A contribution that contains a donor-imposed condition.").

##### [720-25-55-2](https://asc.understandingaccounting.org/asc/720/25/#720-25-55-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:08:09.526Z to 2026-09-10T01:08:09.526Z

Record version: sha256:9e48e38fa1a8841f73b60f609f988deff602fe0572976863a1d8777cac6fbc2f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


See paragraphs

[958-605-55-17A through 55-17F](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-17A)

and

[958-605-55-70A through 55-70T](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-70A)

for implementation guidance and illustrations on determining whether a contribution is conditional. That guidance applies to contributions made by a resource provider (for example, a corporate foundation, a corporation, or a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") \[NFP\]) as well as contributions received by a recipient.