# ASC 720-944-05: Other Expenses — Financial Services—Insurance — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 720-944-05: 05 Overview and Background

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##### [720-944-05-1](https://asc.understandingaccounting.org/asc/720/944/#720-944-05-1)

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This Subtopic provides guidance to insurance entities on accounting for and financial reporting of other expenses.

##### [720-944-05-2](https://asc.understandingaccounting.org/asc/720/944/#720-944-05-2)

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In a number of life insurance entities, virtually all sales expense is composed of compensation paid to agents. Such compensation relates directly to the amount of business produced by an agent.

##### [720-944-05-3](https://asc.understandingaccounting.org/asc/720/944/#720-944-05-3)

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In other entities, considerably less compensation will be paid to agents; however, additional sums will be paid to salaried employees, such as branch managers and employees, or to field representatives, who call on and assist the agents.

##### [720-944-05-4](https://asc.understandingaccounting.org/asc/720/944/#720-944-05-4)

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There are also entities that do not sell through agents. Some entities use mail, the internet, and other mass-marketing methods to sell their products.