{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/946/#05-overview-and-background","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.","topic":"720","topic_title":"Other Expenses","subtopic":"720-946","subtopic_title":"Financial Services—Investment Companies","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"720-946-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic addresses:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Investment adviser's <a href=\"/glossary/o/#offering-costs\" class=\"term\" title=\"Offering costs include all of the following: Legal fees pertaining to the investment company's shares offered for sale Securities and Exchange Commission (SEC)and state registration fees Underwriting and other similar costs Costs of printing prospectuses for sales purposes Initial fees paid to be listed on an exchange Tax opinion costs related to offering of shares Initial agency fees of securing the rating for bonds or preferred stock issued by closed-end funds.\"><span>offering costs</span></a> when both <a href=\"/glossary/b/#12b-1\" class=\"term\" title=\"Rule 12b-1 in Chapter 17 of the Code of Federal Regulations is one of the regulations implementing the Investment Company Act of 1940.\"><span>12b-1</span></a> fees and <a href=\"/glossary/c/#contingent-deferred-sales-load\" class=\"term\" title=\"A sales charge imposed directly on redeeming shareholders based on a percentage of the lesser of the redemption proceeds or original cost. The percentage may decrease or be eliminated based on the duration of share ownership (frequently decreases by 1 percent a year). Also referred to as back-end load.\"><span>contingent-deferred sales fees</span></a> are not received</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Subparagraph superseded by Accounting Standards Update No. 2014-09</a>.</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Distribution costs for mutual funds with no front-end sales fee.</div></li></ol></div></div>","snippet":"This Subtopic addresses:\n(a) Investment adviser's offering costs when both 12b-1 fees and contingent-deferred sales fees are not received\n(b) Subparagraph superseded by Accounting Standards Update No. 2014-09.\n(c) Distri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d5770312eb59c2a1ad9843ce96927761c0e2c4eda4c80b313dc6f5a3874920fa","downloaded_from":"2026-09-10T01:11:45.518Z","last_downloaded_at":"2026-09-10T01:11:45.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478877","source_sha256":"dd73f83f9456a1b541c088b40fa12bab74d28788f5817f95d65ec20268bc6c7e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44f9b327bc0482998b4ba28a870774c0f2b9b32b08355e5913ed77757db889ae","downloaded_from":"2026-09-10T01:11:45.518Z","last_downloaded_at":"2026-09-10T01:11:45.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478877","source_sha256":"dd73f83f9456a1b541c088b40fa12bab74d28788f5817f95d65ec20268bc6c7e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d78b91a55289673f9cc04a16c6b28efc54ecebffbc962e857c514e63674375e5","downloaded_from":"2026-09-10T01:11:45.518Z","last_downloaded_at":"2026-09-10T01:11:45.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478877","source_sha256":"dd73f83f9456a1b541c088b40fa12bab74d28788f5817f95d65ec20268bc6c7e"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d78b91a55289673f9cc04a16c6b28efc54ecebffbc962e857c514e63674375e5","downloaded_from":"2026-09-10T01:11:45.518Z","last_downloaded_at":"2026-09-10T01:11:45.518Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478877","source_sha256":"dd73f83f9456a1b541c088b40fa12bab74d28788f5817f95d65ec20268bc6c7e"}}