{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/730/10/#55-implementation-guidance-and-illustrations","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":"730","topic_title":"Research and Development","subtopic":"730-10","subtopic_title":"Overall","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"730-10-55-1","para":"55-1","html":"
The following activities typically would be considered research and development within the scope of this Topic (unless conducted for others under a contractual arrangement—see paragraph 730-10-15-4[a]):
  1. a
    Laboratory research aimed at discovery of new knowledge
  2. b
    Searching for applications of new research findings or other knowledge
  3. c
    Conceptual formulation and design of possible product or process alternatives
  4. d
    Testing in search for or evaluation of product or process alternatives
  5. e
    Modification of the formulation or design of a product or process
  6. f
    Design, construction, and testing of preproduction prototypes and models
  7. g
    Design of tools, jigs, molds, and dies involving new technology
  8. h
    Design, construction, and operation of a pilot plant that is not of a scale economically feasible to the entity for commercial production
  9. i
    Engineering activity required to advance the design of a product to the point that it meets specific functional and economic requirements and is ready for manufacture
  10. j
    Design and development of tools used to facilitate research and development or components of a product or process that are undergoing research and development activities.
","snippet":"The following activities typically would be considered research and development within the scope of this Topic (unless conducted for others under a contractual arrangement—see paragraph 730-10-15-4[a]):\n(a) Laboratory re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ce13c23a1f3ee0797ce494363161168770fe0dd541a2c07c5b29569b0553589","downloaded_from":"2026-09-10T01:14:48.408Z","last_downloaded_at":"2026-09-10T01:14:48.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483094","source_sha256":"29e8cad5863846c6c0c2de6aeebf7f0d55b9623028bf4d5993c6cfc79d936194"}},{"citation":"730-10-55-2","para":"55-2","html":"
The following activities typically would not be considered research and development within the scope of this Topic:
  1. a
    Engineering follow-through in an early phase of commercial production
  2. b
    Quality control during commercial production including routine testing of products
  3. c
    Trouble-shooting in connection with break-downs during commercial production
  4. d
    Routine, ongoing efforts to refine, enrich, or otherwise improve upon the qualities of an existing product
  5. e
    Adaptation of an existing capability to a particular requirement or customer's need as part of a continuing commercial activity
  6. f
    Seasonal or other periodic design changes to existing products
  7. g
    Routine design of tools, jigs, molds, and dies
  8. h
    Activity, including design and construction engineering, related to the construction, relocation, rearrangement, or start-up of facilities or equipment other than the following:
    1. 1
      Pilot plants (see [h] in the preceding paragraph)
    2. 2
      Facilities or equipment whose sole use is for a particular research and development project (see paragraph 730-10-25-2[a]).
  9. i
    Legal work in connection with patent applications or litigation, and the sale or licensing of patents.
","snippet":"The following activities typically would not be considered research and development within the scope of this Topic:\n(a) Engineering follow-through in an early phase of commercial production\n(b) Quality control during com…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:967e9e794ae657b5a690bc59a79160e350b992269a3f9124eac4eddfa6166776","downloaded_from":"2026-09-10T01:14:48.408Z","last_downloaded_at":"2026-09-10T01:14:48.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483094","source_sha256":"29e8cad5863846c6c0c2de6aeebf7f0d55b9623028bf4d5993c6cfc79d936194"}},{"citation":"730-10-55-3","para":"55-3","html":"
Nonrefundable advance payments for future research and development activities for materials, equipment, facilities, and purchased intangible assets that have an alternative future use (in research and development projects or otherwise) are within the scope of this Subtopic. Subtopic 730-20 provides guidance on accounting for nonrefundable advance payments for goods or services that have the characteristics that will be used or rendered for future research and development activities pursuant to an executory contractual arrangement.
","snippet":"Nonrefundable advance payments for future research and development activities for materials, equipment, facilities, and purchased intangible assets that have an alternative future use (in research and development project…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:083c795f86ea72c2fd2bb0dabf2c6e5ebfd588e9d71218fb82bd3052ce0b164b","downloaded_from":"2026-09-10T01:14:48.408Z","last_downloaded_at":"2026-09-10T01:14:48.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483094","source_sha256":"29e8cad5863846c6c0c2de6aeebf7f0d55b9623028bf4d5993c6cfc79d936194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a22f0091e72ac434915b03ffce51cc79e2b48ba30f917977e8174bfceec8b9e","downloaded_from":"2026-09-10T01:14:48.408Z","last_downloaded_at":"2026-09-10T01:14:48.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483094","source_sha256":"29e8cad5863846c6c0c2de6aeebf7f0d55b9623028bf4d5993c6cfc79d936194"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:481d3f9ea0ea3497fd63101f04ae7289904833cc791ece46421cc12e14485851","downloaded_from":"2026-09-10T01:14:48.408Z","last_downloaded_at":"2026-09-10T01:14:48.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483094","source_sha256":"29e8cad5863846c6c0c2de6aeebf7f0d55b9623028bf4d5993c6cfc79d936194"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:481d3f9ea0ea3497fd63101f04ae7289904833cc791ece46421cc12e14485851","downloaded_from":"2026-09-10T01:14:48.408Z","last_downloaded_at":"2026-09-10T01:14:48.408Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483094","source_sha256":"29e8cad5863846c6c0c2de6aeebf7f0d55b9623028bf4d5993c6cfc79d936194"}}