# ASC 720-50-25: Other Expenses — Fees Paid to the Federal Government by Pharmaceutical Manufacturers and Health Insurers — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/50/#25-recognition)

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): 2026-09-10T01:09:17.233Z to 2026-09-10T01:09:17.233Z

Record version: sha256:0180cd8bc23bf4fc1bfdde6c299a922b6d065f85aadbf2dfb828e6701894d7ec

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 720-50-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/720/50/#25-recognition)

SEC content: no

##### [720-50-25-1](https://asc.understandingaccounting.org/asc/720/50/#720-50-25-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:09:17.233Z to 2026-09-10T01:09:17.233Z

Record version: sha256:7f9ba2ad6da544f34c6f3e96cd2bb6bd44096b9dabd3b45ee34aea30838892ce

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The liability related to the annual fee described in paragraphs

[720-50-05-1 through 05-4](https://asc.understandingaccounting.org/asc/720/50/#720-50-05-1)

shall be estimated and recorded in full upon the first qualifying sale 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 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. 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 _acquisition cost_ in Subtopic 944-30.