{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/942/","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.","number":"720-942","topic":"720","title":"Financial Services—Depository and Lending","area":"Expenses","paragraphs":5,"summary":"This Subtopic governs how depository institutions account for assessments imposed by the Financing Corporation (FICO) under the Deposit Insurance Funds Act of 1996, which requires institutions with deposits assessable by the Deposit Insurance Fund to help finance outstanding FICO bonds. The single rule is that the FICO assessment is reported as a period cost as incurred (720-942-25-1) rather than capitalized or accrued for future periods.","concepts":["financing corporation assessment","deposit insurance fund","depository institution","period cost","expense as incurred","deposit insurance funds act of 1996"],"categories":["Recognition","Industry-specific"],"level":"intermediate","topic_title":"Other Expenses","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"720-942-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div> <div class=\"norm-text\"> <table class=\"asc-table\" id=\"SL51571081-203172\"> <tr> <td class=\"entry\"> <strong class=\"ph b\">Paragraph</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Action</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Accounting Standards Update</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Date</strong> </td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/720/942/#720-942-05-2\" class=\"xref\">942-720-05-2</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-A9A0D53D-6B0C-4858-88D0-A1E7A970B952.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2014-07 (PDF)</a> </td> <td class=\"entry\">03/17/2014</td> </tr> </table> </div> </div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n942-720-05-2 | Amended | Maintenance Update 2014-07 | 03/17/2014 |","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f4130349859f2d337f26a78aabd1a4866dba3707fcaf63a34b879321a53daf9","downloaded_from":"2026-09-10T01:11:04.995Z","last_downloaded_at":"2026-09-10T01:11:04.995Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478287","source_sha256":"f7cfb6bf2345fa6481f5f9664235ea6ad6ce68f3ee3bc816e4e6c0c16914075d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ea93d865712e98f14ba70c6b95e68cdfaa78df919e0a56b5ead29d86ba57dc1","downloaded_from":"2026-09-10T01:11:04.995Z","last_downloaded_at":"2026-09-10T01:11:04.995Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not 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the recognition of assessments by the Financing Corporation.</div></div>","snippet":"This Subtopic addresses the recognition of assessments by the Financing Corporation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4c58631180eecc2ec0696e236363f4fd8f06b0117c418f58daa710d91c708a2","downloaded_from":"2026-09-10T01:11:07.010Z","last_downloaded_at":"2026-09-10T01:11:07.010Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477398","source_sha256":"6a1811e7cc596adb48d861fc202ca5a60c1a2b206540504030759561fca03160"}},{"citation":"720-942-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_F703DD1D-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">On September 30, 1996, the Deposit Insurance Funds Act of 1996 was enacted. </span></span><span class=\"sfragment\" id=\"sfr_F703DE90-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Act authorizes the Financing Corporation (FICO) to impose an assessment on institutions with deposits assessable by the Deposit Insurance Fund to share in the cost of financing outstanding FICO bonds. </span></span></div></div>","snippet":"On September 30, 1996, the Deposit Insurance Funds Act of 1996 was enacted. The Act authorizes the Financing Corporation (FICO) to impose an assessment on institutions with deposits assessable by the Deposit Insurance Fu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:106bc4efbb8e0a7a0ae08420eba41a4834124df3576947f506919c792f7c9ec7","downloaded_from":"2026-09-10T01:11:07.010Z","last_downloaded_at":"2026-09-10T01:11:07.010Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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Subtopic applies to all depository institutions that are subject to Financing Corporation assessment.</div></div>","snippet":"The guidance in this Subtopic applies to all depository institutions that are subject to Financing Corporation assessment.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b106d5cf625f5d23d56352f2a2a1c7e7d73c85bb52f2515361e1863a86188ea","downloaded_from":"2026-09-10T01:11:11.116Z","last_downloaded_at":"2026-09-10T01:11:11.116Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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id=\"sfr_F714E862-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A depository institution shall report the Financing Corporation (FICO) assessment as a period cost as incurred. </span></span></div></div>","snippet":"A depository institution shall report the Financing Corporation (FICO) assessment as a period cost as incurred.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3529043caa3aeef6c0c7570449ef74e763381e1b29f5a45471213bae14434297","downloaded_from":"2026-09-10T01:11:13.136Z","last_downloaded_at":"2026-09-10T01:11:13.136Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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FICO bonds. The single rule is that the FICO assessment is reported as a period cost as incurred (720-942-25-1) rather than capitalized or accrued for future periods.","key_points":["The Subtopic applies to all depository institutions that are subject to Financing Corporation assessment (720-942-15-1).","The Deposit Insurance Funds Act of 1996 authorizes FICO to impose an assessment on institutions with deposits assessable by the Deposit Insurance Fund to share the cost of financing outstanding FICO bonds (720-942-05-2).","A depository institution shall report the FICO assessment as a period cost as incurred (720-942-25-1).","Because the assessment is expensed as incurred, no asset or liability is recognized for the institution's share of future FICO bond financing costs."],"categories":["Recognition","Industry-specific"],"audience_level":"intermediate","student_note":"A very short, single-rule industry Subtopic: the FICO assessment is simply an expense of the period incurred. The common mistake is treating the assessment as a prepaid asset or accruing the institution's share of the entire remaining FICO bond obligation instead of recognizing it period by period.","related_topics":["720","942","942-405","450"],"key_concepts":["financing corporation assessment","deposit insurance fund","depository institution","period cost","expense as incurred","deposit insurance funds act of 1996"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38b9f7a675a7fbc4d29456da2e4795af3b2c4cca8ecd819c1730506a6c09503b","downloaded_from":"2026-09-10T01:11:04.995Z","last_downloaded_at":"2026-09-10T01:11:13.136Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"720-948","title":"Financial Services—Mortgage Banking","topic_title":"Other 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