{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/50/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"720","topic_title":"Other Expenses","subtopic":"720-50","subtopic_title":"Fees Paid to the Federal Government by Pharmaceutical Manufacturers and Health Insurers","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"720-50-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_057ADBA8-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The liability related to the annual fee described in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/720/50/#720-50-05-1\" class=\"xref\">720-50-05-1 through 05-4</a></div> shall be estimated and recorded in full upon the first qualifying sale </span></span> <span class=\"sfragment\" id=\"sfr_057ADCB1-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">for pharmaceutical manufacturers or once the entity provides qualifying health insurance for health insurers in the applicable calendar year in which the fee is payable </span></span> <span class=\"sfragment\" id=\"sfr_057ADD71-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">with a corresponding deferred cost that is amortized to expense using a straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. </span></span> <span class=\"sfragment\" id=\"sfr_057ADE25-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The annual fee imposed on health insurers does not represent a cost related to the acquisition of policies that is consistent with the definition of an <em class=\"ph i\">acquisition cost</em> in Subtopic <a altsource=\"GUID-FF5ECAE8-5C8C-4E07-B8E0-96D5CBD7671B.ditamap\" class=\"ditamap\">944-30</a>.</span></span> </div> </div>","snippet":"The liability related to the annual fee described in paragraphs 720-50-05-1 through 05-4 shall be estimated and recorded in full upon the first qualifying sale for pharmaceutical manufacturers or once the entity provides…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f9ba2ad6da544f34c6f3e96cd2bb6bd44096b9dabd3b45ee34aea30838892ce","downloaded_from":"2026-09-10T01:09:17.233Z","last_downloaded_at":"2026-09-10T01:09:17.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479878","source_sha256":"33f269a8dbef058a48139f0ae014ca3cc81a1b87ecf8680664a5ae722d71a19e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:deb20c00dd1a33e78f135076327fc48703bf9eb3dec7d21af16574b43fb4e7e6","downloaded_from":"2026-09-10T01:09:17.233Z","last_downloaded_at":"2026-09-10T01:09:17.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479878","source_sha256":"33f269a8dbef058a48139f0ae014ca3cc81a1b87ecf8680664a5ae722d71a19e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0180cd8bc23bf4fc1bfdde6c299a922b6d065f85aadbf2dfb828e6701894d7ec","downloaded_from":"2026-09-10T01:09:17.233Z","last_downloaded_at":"2026-09-10T01:09:17.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479878","source_sha256":"33f269a8dbef058a48139f0ae014ca3cc81a1b87ecf8680664a5ae722d71a19e"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0180cd8bc23bf4fc1bfdde6c299a922b6d065f85aadbf2dfb828e6701894d7ec","downloaded_from":"2026-09-10T01:09:17.233Z","last_downloaded_at":"2026-09-10T01:09:17.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479878","source_sha256":"33f269a8dbef058a48139f0ae014ca3cc81a1b87ecf8680664a5ae722d71a19e"}}