# ASC 720-45-30: Other Expenses — Business and Technology Reengineering — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/45/#30-initial-measurement)

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## ASC 720-45-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/720/45/#30-initial-measurement)

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##### [720-45-30-1](https://asc.understandingaccounting.org/asc/720/45/#720-45-30-1)

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When a third party is used for a business process reengineering project, the total consulting contract price (or the sum of the linked contracts with the same vendor) shall be allocated to each activity based on the relative fair values of those separate activities. The allocation shall be based on the objective evidence of the fair value of the elements in the contract, not necessarily the separate prices stated within the contract for each element.