# ASC 720-35: Other Expenses — Advertising Costs Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/35/) 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): 2026-09-10T00:48:39.704Z to 2026-09-10T00:48:53.854Z Record version: sha256:e0984f5ce61712c0be2e77c9cfded479e7295602dc79828c885440868d13b738 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35: Other Expenses — Advertising Costs ### Machine-generated study aids ```json { "summary": "ASC 720-35 governs how entities account for advertising costs in annual financial statements. The core rule: advertising costs are expensed either as incurred or the first time the advertising takes place, applied consistently as an accounting policy to similar kinds of advertising activities (720-35-25-1); no advertising asset is capitalized, though sales materials may be treated as prepaid supplies and cooperative-advertising obligations must be accrued when the related revenue is recognized. The notes must disclose the policy elected and total advertising expense for each income statement presented (720-35-50-1).", "key_points": [ "Advertising costs within scope are expensed either as incurred or the first time the advertising takes place, and the elected policy must be applied consistently to similar kinds of advertising activities (720-35-25-1).", "Deferral until the first time advertising takes place is permitted only if the advertising is expected to occur; if it is not expected to occur, the costs are expensed immediately (720-35-25-1).", "Cooperative advertising and similar obligations to reimburse customers must be accrued and the advertising cost expensed when the related revenues are recognized, if revenue precedes the expenditure (720-35-25-1A).", "Production costs are incurred during production (720-35-25-4), while communication costs (television airtime, print space) are not incurred and cannot be expensed until the item or service has been received (720-35-25-5).", "Costs to produce film or audio/video tape used to communicate advertising do not create tangible assets (720-35-25-2), but sales materials such as brochures and catalogues may be carried as prepaid supplies until no longer owned or expected to be used (720-35-25-3).", "Notes must disclose the accounting policy selected (expensed as incurred vs. first time advertising takes place) and the total advertising expense for each income statement presented (720-35-50-1).", "Scope excludes insurance direct-response advertising (944-30), interim-period advertising (270-10-45-7), advertising conducted for others under contract, specifically reimbursable indirect costs, NFP fundraising, non-advertising customer acquisition, and costs of premiums, prizes, gifts, discounts, and rebates (720-35-15-3)." ], "categories": [ "Recognition", "Subsequent measurement", "Disclosure", "Not-for-profit" ], "audience_level": "introductory", "student_note": "Exam questions hinge on the two-policy election and the timing traps: you may defer production costs until the first showing, but you can never expense communication costs (airtime, print space) before the service is received. A common misunderstanding is thinking advertising can be capitalized as an asset because of expected future benefits — under 720-35 it cannot (except as prepaid supplies for unused brochures/catalogues).", "related_topics": [ "944-30", "270-10", "340-10", "606-10", "958-720" ], "key_concepts": [ "advertising costs", "expense as incurred", "first time advertising takes place", "cooperative advertising", "production versus communication costs", "prepaid supplies", "executory contracts", "accounting policy disclosure" ] } ``` Source downloaded (UTC): 2026-09-10T00:48:39.704Z to 2026-09-10T00:48:39.704Z Record version: sha256:03b426a92a6ae0a35e3cc6f37ba91dcc6081eaf81bd9e35909d0ae92f3287350 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/720/35/#00-status) SEC content: no ##### [720-35-00-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:39.704Z to 2026-09-10T00:48:39.704Z Record version: sha256:459c658324d34e7a05d90857400db101a4c463a981385b80dd7db5f3f9b2c2fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
720-35-05-1AmendedAccounting Standards Update No. 2016-2012/21/2016
720-35-05-2SupersededAccounting Standards Update No. 2014-0905/28/2014
720-35-15-2AmendedAccounting Standards Update No. 2018-0907/16/2018
720-35-15-2AmendedAccounting Standards Update No. 2014-0905/28/2014
720-35-15-3AmendedAccounting Standards Update No. 2014-0905/28/2014
720-35-15-5SupersededAccounting Standards Update No. 2018-0907/16/2018
720-35-15-5AddedAccounting Standards Update No. 2016-2012/21/2016
720-35-25-1AmendedAccounting Standards Update No. 2018-0907/16/2018
720-35-25-1AAmendedAccounting Standards Update No. 2018-0907/16/2018
720-35-25-1AAddedAccounting Standards Update No. 2016-2012/21/2016
720-35-25-5AmendedAccounting Standards Update No. 2014-0905/28/2014
720-35-35-1AmendedAccounting Standards Update No. 2014-0905/28/2014
720-35-55-1AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-10T00:48:41.867Z to 2026-09-10T00:48:41.867Z Record version: sha256:f4f47dc1a63b4a111c9727670a85cf90b247de416f4f33091a16a42381be0000 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/720/35/#05-overview-and-background) SEC content: no ##### [720-35-05-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:41.867Z to 2026-09-10T00:48:41.867Z Record version: sha256:d9bc67a3e3752b1bef09ba1f453d2058aaac3a5b27ca6dd1e76aa81d9b21667f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for annual financial statements on the following: 1. a Reporting the costs of advertising 2. b The financial statement disclosures that shall be made about advertising. ##### [720-35-05-2](https://asc.understandingaccounting.org/asc/720/35/#720-35-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:41.867Z to 2026-09-10T00:48:41.867Z Record version: sha256:8f4c1ce2c4ccd942bed7270c2bec0b7e5296b9e4ec793636828b7349dd9db9eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [720-35-05-3](https://asc.understandingaccounting.org/asc/720/35/#720-35-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:41.867Z to 2026-09-10T00:48:41.867Z Record version: sha256:2e3b1dffd9a536292f11c24811855b9df87d06c3d029e3de9ff01f96c1fffd3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are some of the reasons that costs incurred in anticipation of the probable future economic benefits of advertising generally are expensed: 1. a Financial statement preparers generally presumed that the benefit period is short. 2. b The periods during which the future economic benefits probably would be received and the amounts of such benefits could not be measured and determined easily and objectively. 3. c The advertising costs for some entities were not material. 4. d Advertising is undertaken to provide or increase future economic benefits. #### Description of Advertising ##### [720-35-05-4](https://asc.understandingaccounting.org/asc/720/35/#720-35-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:41.867Z to 2026-09-10T00:48:41.867Z Record version: sha256:e69fb72b8ee670412b70b566550f606766aec527220c72bc7f42cd03432bbad5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Advertising is the promotion of an industry, an entity, a brand, a product name, or specific products or services so as to create or stimulate a positive entity image or to create or stimulate a desire to buy the entity's products or services. Advertising generally uses a form of media—such as mail, television, radio, telephone, facsimile machine, newspaper, magazine, coupon, or billboard—to communicate with potential customers. Examples of advertising include the following: 1. a Directory and buyer's guide advertising 2. b Business and industrial publications 3. c Reprints of advertisements 4. d Television advertising 5. e Direct-mail advertising 6. f Consumer publications 7. g Radio advertisements 8. h Billboard advertisements 9. i Entity and product catalogues 10. j Cooperative advertising 11. k Booklets for sales promotion 12. l Newspaper advertising 13. m Point-of-sale material 14. n Sponsorship of public events. #### Components of Advertising Activities ##### [720-35-05-5](https://asc.understandingaccounting.org/asc/720/35/#720-35-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:41.867Z to 2026-09-10T00:48:41.867Z Record version: sha256:e6d63b06cb6515149a086aa6ea008d4939b7f56b5c924a11cee4dacd5e3a6b2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Advertising activities may have several component costs. Two primary components are the following: 1. a The costs of producing advertisements, such as for idea development, writing advertising copy, artwork, printing, audio and video crews, actors, and other costs 2. b The costs of communicating advertisements that have been produced, such as for magazine space, television airtime, billboard space, and distribution (for example, postage stamps). Source downloaded (UTC): 2026-09-10T00:48:43.595Z to 2026-09-10T00:48:43.595Z Record version: sha256:1fdb629b2ccd8af383e162a15ca136d51b2e602d3a1dafc272ddc2d3a8455b72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/720/35/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [720-35-15-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:43.595Z to 2026-09-10T00:48:43.595Z Record version: sha256:4f518bdf479917abe4e8b07b00b05bb20d6eddb34d834e8669c4c906a91a0e3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities, including not-for-profit entities (NFPs). #### Transactions ##### [720-35-15-2](https://asc.understandingaccounting.org/asc/720/35/#720-35-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:43.595Z to 2026-09-10T00:48:43.595Z Record version: sha256:c901777c0c1ed9957c36b7cf6a1c03f353afb2c1168cf0c7086c3a1ff379aa72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all advertising transactions and activities, with specific exceptions noted below. ##### [720-35-15-3](https://asc.understandingaccounting.org/asc/720/35/#720-35-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:43.595Z to 2026-09-10T00:48:43.595Z Record version: sha256:bdd92bedee2d92a86fa3cb2d6d0f201a4e5a5d15b3692ff5679996b7dcf03cee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions and activities: 1. a Direct-response advertising costs of an insurance entity (for guidance, see Subtopic 944-30 on insurance). 2. b Advertising costs in interim periods (for guidance, see paragraph [270-10-45-7](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-7)). 3. c Costs of advertising conducted for others under contractual arrangements. 4. d Indirect costs that are specifically reimbursable under the terms of a contract. 5. e Fundraising by NFPs (however, this Subtopic does apply to advertising activities of NFPs). 6. f Customer acquisition activities, other than advertising. 7. g The costs of premiums, contest prizes, gifts, and similar promotions, as well as discounts or rebates, including those resulting from the redemption of coupons. (Other costs of coupons and similar items, such as costs of newspaper advertising space, are considered advertising costs.) ##### [720-35-15-4](https://asc.understandingaccounting.org/asc/720/35/#720-35-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:43.595Z to 2026-09-10T00:48:43.595Z Record version: sha256:72b23930df3f83d152f57d3e332d13110ec256719cca25418cdf9865b55e04f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic may or may not apply to the following transactions and activities: 1. a Some activities, such as product endorsements and sponsorships of events, which may be performed pursuant to executory contracts. Costs incurred under executory contracts generally are recognized as performance under the contract is received. Executory contracts should be evaluated to determine whether the costs recognized under such contracts are advertising costs. To the extent that those costs are advertising costs, such costs should be accounted for in conformity with the guidance in this Subtopic. ##### [720-35-15-5](https://asc.understandingaccounting.org/asc/720/35/#720-35-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:43.595Z to 2026-09-10T00:48:43.595Z Record version: sha256:ec738029e4fd7dfa4e63a91046c42124f6031676c02976bf8807a14616b10629 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:55da5c945da28d490f235b225b1ed4d3dbc47894d7d73eaf2202673367697a77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/35/#25-recognition) SEC content: no ##### [720-35-25-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:b8ba6ae370a8211846cae4981268378b455321f92421cdab58aae9f128d271fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The costs of advertising within the scope of this Subtopic shall be expensed either as incurred or the first time the advertising takes place, except for those costs described in paragraph [720-35-25-1A](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-1A). The accounting policy selected from these two alternatives shall be applied consistently to similar kinds of advertising activities. Deferring the costs of advertising until the advertising takes place assumes that the costs have been incurred for advertising that will occur. Such costs shall be expensed immediately if such advertising is not expected to occur. Examples of the first time advertising takes place include the first public showing of a television commercial for its intended purpose and the first appearance of a magazine advertisement for its intended purpose. ##### [720-35-25-1A](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:4f008df7f6ffad0341aed5079f2c4d5eb47f5e37a196208d0f8a5db1a1caeeab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expenditures for some advertising costs are made after recognizing revenues related to those costs. For example, some entities assume an obligation to reimburse their customers for some or all of the customers' advertising costs (cooperative advertising). When revenues related to the transactions creating those obligations are recognized before the expenditures are made, those obligations shall be accrued and the advertising costs expensed when the related revenues are recognized. #### Tangible Assets ##### [720-35-25-2](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:87d14afda7fdbe231bd8b451f083ef3ca4b43cd1e3eee8de709125d595b5fb1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of applying this Subtopic, costs incurred to produce film or audio and video tape to be used to communicate advertising do not create tangible assets. ##### [720-35-25-3](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:680973d5fdecb8921450e38f9b2c36694d1e3e112086c05fb94986d4f01f84a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Sales materials, such as brochures and catalogues, may be accounted for as prepaid supplies until they no longer are owned or expected to be used, in which case their cost would be a cost of advertising and shall be accounted for in conformity with the guidance in this Subtopic. #### Producing Advertising ##### [720-35-25-4](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:27fbb10ee50eb5b7f50c45b90df387092034bf220d9b72832f5c0f226db16ecf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of producing advertising are incurred during production rather than when the advertising takes place. #### Communicating Advertising ##### [720-35-25-5](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:eed8cf01f1e87c93f5b73e9499c9be7a739407a74c3a1c5d0b9368c0fbbb8d0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of communicating advertising are not incurred until the item or service has been received and shall not be reported as expenses before the item or service has been received. For example: 1. a The costs of television airtime shall not be reported as advertising expense before the airtime is used. Once it is used, the costs shall be expensed. 2. b The costs of magazine, directory, or other print media advertising space shall not be reported as advertising expense before the space is used. Once it is used, the costs shall be expensed. #### Executory Contracts ##### [720-35-25-6](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:46.128Z to 2026-09-10T00:48:46.128Z Record version: sha256:2091e86f38291212a8c6e88ae4ec0911979196f048398ff2789d6888eb011f40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [720-35-15-4](https://asc.understandingaccounting.org/asc/720/35/#720-35-15-4), some activities, such as product endorsements and sponsorships of events, may be performed pursuant to executory contracts. Costs incurred under executory contracts generally are recognized as performance under the contract is received. Executory contracts should be evaluated to determine whether the costs recognized under such contracts are advertising costs. To the extent that those costs are advertising costs, such costs shall be accounted for in conformity with the guidance in this Subtopic. Source downloaded (UTC): 2026-09-10T00:48:47.803Z to 2026-09-10T00:48:47.803Z Record version: sha256:37cf3806708a0bc5e1429ccd83c9fc8cdc7f327847efa410f0b4a89ac16a4175 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/720/35/#35-subsequent-measurement) SEC content: no ##### [720-35-35-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:47.803Z to 2026-09-10T00:48:47.803Z Record version: sha256:b09493ed9dee086dcd804a7336d9333b494b621aa95c9b65725ac7004a3f97c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Depreciation or amortization of a tangible asset may be a cost of advertising if the tangible asset is used for advertising. Source downloaded (UTC): 2026-09-10T00:48:50.312Z to 2026-09-10T00:48:50.312Z Record version: sha256:e993cd03c3740a1aa255a8048a4bc21c3cb1d3544dc76872d29a3b1ab3141bd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/720/35/#50-disclosure) SEC content: no ##### [720-35-50-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:50.312Z to 2026-09-10T00:48:50.312Z Record version: sha256:e2789ea1b12aa411ac73802c0d49fceeb460e6277dd92fa2627c90a8bea4e199 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The notes to financial statements shall disclose both of the following: 1. a The accounting policy selected from the two alternatives in paragraph [720-35-25-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-25-1) for reporting advertising, indicating whether such costs are expensed as incurred or the first time the advertising takes place 2. b The total amount charged to advertising expense for each income statement presented. Source downloaded (UTC): 2026-09-10T00:48:51.939Z to 2026-09-10T00:48:51.939Z Record version: sha256:b387eda6b5685fde4e8a7d6f986d419873b6ef90c7b9c02cacb137014bdcc046 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-35-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/720/35/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [720-35-55-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:48:51.939Z to 2026-09-10T00:48:51.939Z Record version: sha256:c290c789583bc531456695f531e6324f185aba60fabd713555e0903b0788df3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance provided in paragraph [720-35-50-1](https://asc.understandingaccounting.org/asc/720/35/#720-35-50-1). - Note X. Advertising - The Entity expenses the production costs of advertising the first time the advertising takes place. For the year ended December 31, 20XX, advertising expense was $10,000,000.