# ASC 730-912-25: Research and Development — Contractors—Federal Government — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/730/912/#25-recognition)

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## ASC 730-912-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/730/912/#25-recognition)

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#### Best-Efforts-Basis, Research-and-Development-Cost-Sharing Arrangements

##### [730-912-25-1](https://asc.understandingaccounting.org/asc/730/912/#730-912-25-1)

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Best-efforts-basis, research-and-development-cost-sharing arrangements within the scope of this Subtopic (see paragraph [912-730-15-2](https://asc.understandingaccounting.org/asc/730/912/#730-912-15-2)) shall be recognized as research and development expense as incurred in conformity with Topic 730. Because of the cost-sharing nature of these fixed-price, best-efforts-basis, research-and-development-cost-sharing arrangements, the amounts funded by the customer shall be recognized as an offset to the contractor's aggregate research and development expense rather than as contract revenues. Example 1 (see paragraphs

[912-730-55-1 through 55-3](https://asc.understandingaccounting.org/asc/730/912/#730-912-55-1)

) illustrates the application of this guidance.