# ASC 720-944-25: Other Expenses — Financial Services—Insurance — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/944/#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): 2026-09-10T01:11:30.049Z to 2026-09-10T01:11:30.049Z

Record version: sha256:efc2fbe806960afe7bfeda24a1d8a7ee565ba3f27303d06dc6a3c03b6877a163

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 720-944-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/720/944/#25-recognition)

SEC content: no

##### [720-944-25-1](https://asc.understandingaccounting.org/asc/720/944/#720-944-25-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:11:30.049Z to 2026-09-10T01:11:30.049Z

Record version: sha256:87463ae9e9550a741cb5d75968952c580a1b7b587e03206d8ded88166f070c90

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Paragraph [944-30-25-1A](https://asc.understandingaccounting.org/asc/944/30/#944-30-25-1A) requires that an insurance entity capitalize certain [acquisition costs](https://asc.understandingaccounting.org/glossary/a/#acquisition-costs "Costs that are related directly to the successful acquisition of new or renewal insurance contracts.") directly related to successful contracts.

##### [720-944-25-2](https://asc.understandingaccounting.org/asc/720/944/#720-944-25-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:11:30.049Z to 2026-09-10T01:11:30.049Z

Record version: sha256:dfee5756953e8c7c9710eb6fe9ea801e4ea43131102d5a19a77cb661d9980fec

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An insurance entity shall charge to expense as incurred any of the following costs:

1.  a
    
    An acquisition-related cost that cannot be capitalized in accordance with paragraph [944-30-25-1A](https://asc.understandingaccounting.org/asc/944/30/#944-30-25-1A) (for implementation guidance, see paragraph [944-720-55-1](https://asc.understandingaccounting.org/asc/720/944/#720-944-55-1))
    
2.  b
    
    An indirect cost (for implementation guidance, see paragraph [944-720-55-2](https://asc.understandingaccounting.org/asc/720/944/#720-944-55-2)).