# ASC 720-946-05: Other Expenses — Financial Services—Investment Companies — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/946/#05-overview-and-background)

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): 2026-09-10T01:11:45.518Z to 2026-09-10T01:11:45.518Z

Record version: sha256:d78b91a55289673f9cc04a16c6b28efc54ecebffbc962e857c514e63674375e5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 720-946-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/720/946/#05-overview-and-background)

SEC content: no

##### [720-946-05-1](https://asc.understandingaccounting.org/asc/720/946/#720-946-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:11:45.518Z to 2026-09-10T01:11:45.518Z

Record version: sha256:d5770312eb59c2a1ad9843ce96927761c0e2c4eda4c80b313dc6f5a3874920fa

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic addresses:

1.  a
    
    Investment adviser's [offering costs](https://asc.understandingaccounting.org/glossary/o/#offering-costs "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.") when both [12b-1](https://asc.understandingaccounting.org/glossary/b/#12b-1 "Rule 12b-1 in Chapter 17 of the Code of Federal Regulations is one of the regulations implementing the Investment Company Act of 1940.") fees and [contingent-deferred sales fees](https://asc.understandingaccounting.org/glossary/c/#contingent-deferred-sales-load "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.") are not received
    
2.  b
    
    [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).
    
3.  c
    
    Distribution costs for mutual funds with no front-end sales fee.