# ASC 730-912-55: Research and Development — Contractors—Federal Government — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/730/912/#55-implementation-guidance-and-illustrations)

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## ASC 730-912-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/730/912/#55-implementation-guidance-and-illustrations)

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#### Illustrations

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

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This Example illustrates the application of the guidance in paragraph [912-730-25-1](https://asc.understandingaccounting.org/asc/730/912/#730-912-25-1) to research and development costs under a best-efforts-basis, research-and-development-cost-sharing arrangement.

##### [730-912-55-2](https://asc.understandingaccounting.org/asc/730/912/#730-912-55-2)

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This Example has the following assumptions:

1.  a
    
    Estimated aggregate cost to be incurred by contractor in the specified research and development activity: $150
    
2.  b
    
    Anticipated reimbursement from customer: $100
    
3.  c
    
    As of the current reporting date 50 percent of the estimated aggregate costs have been incurred
    
4.  d
    
    Customer has paid 30 percent of its pro rata funding.

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

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The following table illustrates how to record expenditures for research and development in connection with the XYZ project.

-   ![](https://asc.understandingaccounting.org/asc-img/GUID-C00319E4-E29A-4E9C-8193-CEBC513CBB06-low.gif)
    
    Accounting Entries Research and Development Expense $75 Cash $75 To record expenditures for research and development in connection with the XYZ project. Receivable 35 Cash 15 Research and Development Expense 50 To record amounts receivable and collections of receivables from customer in connection with the XYZ project.