# ASC 720-40-05: Other Expenses — Electronic Equipment Waste Obligations — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 720-40-05: 05 Overview and Background

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##### [720-40-05-1](https://asc.understandingaccounting.org/asc/720/40/#720-40-05-1)

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This Subtopic provides guidance on accounting for historical electronic equipment waste held by private households for obligations associated with Directive 2002/96/EC on Waste Electrical and Electronic Equipment adopted by the European Union.

##### [720-40-05-2](https://asc.understandingaccounting.org/asc/720/40/#720-40-05-2)

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This Subtopic refers to and paraphrases various provisions of the Directive. Nothing in this Subtopic shall be considered a definitive interpretation of any provision of the Directive for any purpose.

##### [720-40-05-3](https://asc.understandingaccounting.org/asc/720/40/#720-40-05-3)

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The Directive distinguishes between new and historical waste. New waste relates to products put on the market after August 13, 2005. All products put on the market on or before August 13, 2005, are deemed to be historical waste equipment for the purposes of the Directive. This Subtopic does not address the accounting for new waste. As explained in paragraph [410-20-55-23](https://asc.understandingaccounting.org/asc/410/20/#410-20-55-23), costs relating to waste of new equipment are to be borne solely by the producers of the new equipment.

##### [720-40-05-4](https://asc.understandingaccounting.org/asc/720/40/#720-40-05-4)

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For the financing of historical waste, the Directive also distinguishes between historical waste from private households and historical waste from users other than private households (commercial users).

This Subtopic provides guidance for historical waste from private households, while Subtopic 410-20 provides guidance for historical waste from commercial users.