{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/730/20/#15-scope-and-scope-exceptions","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":"730-20","subtopic_title":"Research and Development Arrangements","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"730-20-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 730-10-15, with specific qualifications and exceptions noted below.
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This Subtopic also applies to software-development arrangements that are fully or partially funded by a party other than the vendor that is developing the software and for which technological feasibility of the computer software product in accordance with the provisions of Subtopic 985-20 on software has not been established before entering into the arrangement. Those arrangements typically provide the funding party with some or all of the following benefits:
  1. a
    Royalties payable to the funding party based solely on future sales of the product by the software vendor (that is, reverse royalties)
  2. b
    Discounts on future purchases by the funding party of products produced under the arrangement
  3. c
    A nonexclusive sublicense to the funding party, at no additional charge, for the use of any product developed (a prepaid or paid-up nonexclusive sublicense).
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This Subtopic establishes standards of financial accounting and reporting for an entity that is a party to a research and development arrangement through which it can obtain the results of research and development funded partially or entirely by others.
","snippet":"This Subtopic establishes standards of financial accounting and reporting for an entity that is a party to a research and development arrangement through which it can obtain the results of research and development funded…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3ccedc9751379b28a220c92fcef9aed2f23c7849c1f0812bd77c7fc15f03ebe","downloaded_from":"2026-09-10T01:15:07.621Z","last_downloaded_at":"2026-09-10T01:15:07.621Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482946","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"citation":"730-20-15-3","para":"15-3","html":"
The guidance in this Subtopic applies whether the research and development is performed by the entity, the funding parties, or a third party. Although the limited-partnership form of arrangement is used for illustrative purposes in this Subtopic, the guidance also applies for other forms.
","snippet":"The guidance in this Subtopic applies whether the research and development is performed by the entity, the funding parties, or a third party. Although the limited-partnership form of arrangement is used for illustrative …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e37eef7ee9f91c0cb361c5835865bf668c296c0a0e4cb57961e1420bd3b2b0bb","downloaded_from":"2026-09-10T01:15:07.621Z","last_downloaded_at":"2026-09-10T01:15:07.621Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482946","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbf6b43c339973e76c7f4744d1f4c6d1686693176e66b3d1b9ab803e7d8809a8","downloaded_from":"2026-09-10T01:15:07.621Z","last_downloaded_at":"2026-09-10T01:15:07.621Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482946","source_sha256":"b7abe7601c5c0050f4a4c9fe985edb4bb2593feefbeb1ac8d1383e0dd4303903"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"730-20-15-4","para":"15-4","html":"
The guidance in this Subtopic does not apply to the following transactions and activities:
  1. a
    Government-sponsored research and development.
  2. b
    Funded software-development arrangements in which the technological feasibility of the computer software product, in accordance with the provisions of Subtopic 985-20 on software, has been established before the arrangement has been entered into (see paragraph 985-20-25-12).
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