# ASC 720-942: Other Expenses — Financial Services—Depository and Lending Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/942/) 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): 2026-09-10T01:11:04.995Z to 2026-09-10T01:11:13.136Z Record version: sha256:3987582325974c72a09d2daae22fbdc451aa7d839f77ebbd2d58f1c2add01a65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-942: Other Expenses — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "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.", "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" ] } ``` Source downloaded (UTC): 2026-09-10T01:11:04.995Z to 2026-09-10T01:11:04.995Z Record version: sha256:fec63b0dc8bf874ebcc61e7842f7ee6a381089edab84e4d28c738b0750a473a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/720/942/#00-status) SEC content: no ##### [720-942-00-1](https://asc.understandingaccounting.org/asc/720/942/#720-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:11:04.995Z to 2026-09-10T01:11:04.995Z Record version: sha256:7f4130349859f2d337f26a78aabd1a4866dba3707fcaf63a34b879321a53daf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
942-720-05-2AmendedMaintenance Update 2014-07 (PDF)03/17/2014
Source downloaded (UTC): 2026-09-10T01:11:07.010Z to 2026-09-10T01:11:07.010Z Record version: sha256:cbfc0fb384077d09180ac86f7d6122b1f4747e064772d361c8e771149dda1f3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/720/942/#05-overview-and-background) SEC content: no ##### [720-942-05-1](https://asc.understandingaccounting.org/asc/720/942/#720-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:11:07.010Z to 2026-09-10T01:11:07.010Z Record version: sha256:f4c58631180eecc2ec0696e236363f4fd8f06b0117c418f58daa710d91c708a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the recognition of assessments by the Financing Corporation. ##### [720-942-05-2](https://asc.understandingaccounting.org/asc/720/942/#720-942-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:11:07.010Z to 2026-09-10T01:11:07.010Z Record version: sha256:106bc4efbb8e0a7a0ae08420eba41a4834124df3576947f506919c792f7c9ec7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 Fund to share in the cost of financing outstanding FICO bonds. Source downloaded (UTC): 2026-09-10T01:11:11.116Z to 2026-09-10T01:11:11.116Z Record version: sha256:d4010267db2c6a9cac9dbdba47071fc5f5be90df7b3aaf01a0a5dada7d540a4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/720/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [720-942-15-1](https://asc.understandingaccounting.org/asc/720/942/#720-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:11:11.116Z to 2026-09-10T01:11:11.116Z Record version: sha256:4b106d5cf625f5d23d56352f2a2a1c7e7d73c85bb52f2515361e1863a86188ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all depository institutions that are subject to Financing Corporation assessment. Source downloaded (UTC): 2026-09-10T01:11:13.136Z to 2026-09-10T01:11:13.136Z Record version: sha256:d6edc1aaedc63e59c91dde4b464ee53d34deae93cdf67c036ef268e20ffc1b67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-942-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/942/#25-recognition) SEC content: no ##### [720-942-25-1](https://asc.understandingaccounting.org/asc/720/942/#720-942-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:11:13.136Z to 2026-09-10T01:11:13.136Z Record version: sha256:3529043caa3aeef6c0c7570449ef74e763381e1b29f5a45471213bae14434297 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A depository institution shall report the Financing Corporation (FICO) assessment as a period cost as incurred.