# ASC 720-944-55: Other Expenses — Financial Services—Insurance — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/944/#55-implementation-guidance-and-illustrations)

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## ASC 720-944-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/720/944/#55-implementation-guidance-and-illustrations)

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#### Implementation Guidance

##### [720-944-55-1](https://asc.understandingaccounting.org/asc/720/944/#720-944-55-1)

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This implementation guidance addresses paragraph [944-720-25-2(a)](https://asc.understandingaccounting.org/asc/720/944/#720-944-25-2), which requires that an insurance entity charge to expense as incurred any acquisition-related cost that cannot be capitalized in accordance with paragraphs [944-30-25-1A through 25-1AA](https://asc.understandingaccounting.org/asc/944/30/#944-30-25-1A). Such costs include costs of all of the following:

1.  a
    
    Soliciting potential customers (except direct-response advertising capitalized in accordance with paragraph [944-30-25-1AA](https://asc.understandingaccounting.org/asc/944/30/#944-30-25-1AA))
    
2.  b
    
    Market research
    
3.  c
    
    Training
    
4.  d
    
    Administration
    
5.  e
    
    Unsuccessful acquisition or renewal efforts (except direct-response advertising capitalized in accordance with paragraph [944-30-25-1AA](https://asc.understandingaccounting.org/asc/944/30/#944-30-25-1AA))
    
6.  f
    
    Product development.

##### [720-944-55-2](https://asc.understandingaccounting.org/asc/720/944/#720-944-55-2)

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This implementation guidance addresses paragraph [944-720-25-2(b)](https://asc.understandingaccounting.org/asc/720/944/#720-944-25-2), which requires that an insurance entity charge to expense as incurred any indirect cost. Such costs include all of the following:

1.  a
    
    Administrative costs
    
2.  b
    
    Rent
    
3.  c
    
    Depreciation
    
4.  d
    
    Occupancy costs
    
5.  e
    
    Equipment costs (including data processing equipment dedicated to acquiring insurance contracts)
    
6.  f
    
    Other general overhead.