# ASC 720-40-25: Other Expenses — Electronic Equipment Waste Obligations — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/40/#25-recognition)

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## ASC 720-40-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/720/40/#25-recognition)

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##### [720-40-25-1](https://asc.understandingaccounting.org/asc/720/40/#720-40-25-1)

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The financing of historical waste held by private households is to be borne collectively by producers that are selling in the market during each measurement period (to be defined by each EU-member country). The obligation is triggered by participation in the market during the measurement period and, therefore, shall not be recognized before the beginning of that period. The volume of equipment that qualifies as historical waste that those producers have sold in the market before the measurement period is not considered.

##### [720-40-25-2](https://asc.understandingaccounting.org/asc/720/40/#720-40-25-2)

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Producers will be required to contribute proportionately based on their participation in the market (for example, in proportion to their respective share of the market by type of equipment). However, the exact method to be used to compute the respective proportions to be contributed by producers will be determined by each EU-member country.

##### [720-40-25-3](https://asc.understandingaccounting.org/asc/720/40/#720-40-25-3)

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If, for example, the method is based on each producer's respective share of the market by type of equipment during the measurement period, a liability for the obligation, with an offsetting amount to expense, shall be recognized over the measurement period for the appropriate portion of the cost based on the estimated total allocable costs of the waste management program and that producer's estimated market share.