# ASC 805-20-55: Business Combinations — Identifiable Assets and Liabilities, and Any Noncontrolling Interest — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/20/#55-implementation-guidance-and-illustrations) 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): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:33e66e07eccf94760812ea6acd65f9793d692b88d0c941a51aa13385db2b51a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/805/20/#55-implementation-guidance-and-illustrations) SEC content: no ##### [805-20-55-1](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:e8ff5b86b44210c594ab442ab9a9b1ac6a4bbf944efa73e40d43a7660280837d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section is an integral part of the requirements of this Subtopic. This Section provides additional guidance and illustrations that address the application of accounting requirements for [business combinations](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.") to [identifiable](https://asc.understandingaccounting.org/glossary/i/#identifiable "An asset is identifiable if it meets either of the following criteria: It is separable, that is, capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability, regardless of whether the entity intends to do so. It arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.") assets and liabilities and to [noncontrolling interests](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest."). #### Implementation Guidance ##### [805-20-55-2](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:cc26ae5972e6dd45ea2193f996e6d3cf5ffad838999612e1a645d5cd6ff32462 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [805-20-25-10](https://asc.understandingaccounting.org/asc/805/20/#805-20-25-10) establishes that an intangible asset is identifiable if it meets either the separability criterion or the contractual-legal criterion described in the definition of identifiable. An [intangible asset](https://asc.understandingaccounting.org/glossary/i/#intangible-assets "Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)") that meets the contractual-legal criterion is identifiable even if the asset is not transferable or separable from the [acquiree](https://asc.understandingaccounting.org/glossary/a/#acquiree "The business or businesses that the acquirer obtains control of in a business combination. This term also includes a nonprofit activity or business that a not-for-profit acquirer obtains control of in an acquisition by a not-for-profit entity.") or from other rights and obligations. For example: 1. a An acquiree leases a manufacturing facility to a [lessee](https://asc.understandingaccounting.org/glossary/l/#lessee "An entity that enters into a contract to obtain the right to use an underlying asset for a period of time in exchange for consideration.") under an [operating lease](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease.") that has terms that are favorable relative to market terms. The lease terms explicitly prohibit transfer of the [lease](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") (through either sale or [sublease](https://asc.understandingaccounting.org/glossary/s/#sublease "A transaction in which an underlying asset is re-leased by the lessee (or intermediate lessor) to a third party (the sublessee) and the original (or head) lease between the lessor and the lessee remains in effect.")). The amount by which the lease terms are favorable compared with the pricing of current market transactions for the same or similar items is an intangible asset that meets the contractual-legal criterion for recognition separately from [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29."), even though the [acquirer](https://asc.understandingaccounting.org/glossary/a/#acquirer "The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer. (P) December 16, 2026; (N) December 16, 2026805-10-65-5The entity that obtains control of the acquiree.See paragraphs 805-10-25-4805-10-25-5 for guidance on determining the acquirer.") cannot sell or otherwise transfer the lease contract. See also paragraph [805-20-25-12](https://asc.understandingaccounting.org/asc/805/20/#805-20-25-12). 2. b An acquiree owns and operates a nuclear power plant. The license to operate that power plant is an intangible asset that meets the contractual-legal criterion for recognition separately from goodwill, even if the acquirer cannot sell or transfer it separately from the acquired power plant. An acquirer may recognize the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the operating license and the fair value of the power plant as a single asset for financial reporting purposes if the useful lives of those assets are similar. 3. c An acquiree owns a technology patent. It has licensed that patent to others for their exclusive use outside the domestic market, receiving a specified percentage of future foreign revenue in exchange. Both the technology patent and the related license agreement meet the contractual-legal criterion for recognition separately from goodwill even if selling or exchanging the patent and the related license agreement separately from one another would not be practical. ##### [805-20-55-3](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:6cc6bf9305c962c779cf950636ddd0ba9f88473338cabb768a1f059c9d641f11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The separability criterion means that an acquired intangible asset is capable of being separated or divided from the acquiree and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability. An intangible asset that the acquirer would be able to sell, license, or otherwise exchange for something else of value meets the separability criterion even if the acquirer does not intend to sell, license, or otherwise exchange it. ##### [805-20-55-4](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:7b69bc67aefc98f8b8da06647a2e1a0b6ff5dc7a459d99b6063e8a10c7b4aed8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquired intangible asset meets the separability criterion if there is evidence of exchange transactions for that type of asset or an asset of a similar type, even if those transactions are infrequent and regardless of whether the acquirer is involved in them. For example, customer and subscriber lists are frequently licensed and thus meet the separability criterion. Even if an acquiree believes its customer lists have characteristics different from other customer lists, the fact that customer lists are frequently licensed generally means that the acquired customer list meets the separability criterion. However, a customer list acquired in a [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.") would not meet the separability criterion if the terms of confidentiality or other agreements prohibit an entity from selling, leasing, or otherwise exchanging information about its customers. ##### [805-20-55-5](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:59c0b3bcade331e79a70e71de05f5cc4f882e1336fe98167958eb3674003ecc0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An intangible asset that is not individually separable from the acquiree or combined entity meets the separability criterion if it is separable in combination with a related contract, identifiable asset, or liability. For example: 1. a Market participants exchange deposit liabilities and related depositor relationship [intangible assets](https://asc.understandingaccounting.org/glossary/i/#intangible-assets "Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)") in observable exchange transactions. Therefore, the acquirer should recognize the depositor relationship intangible asset separately from goodwill. 2. b An acquiree owns a registered trademark and documented but unpatented technical expertise used to manufacture the trademarked product. To transfer ownership of a trademark, the owner is also required to transfer everything else necessary for the new owner to produce a product or service indistinguishable from that produced by the former owner. Because the unpatented technical expertise must be separated from the acquiree or combined entity and sold if the related trademark is sold, it meets the separability criterion. ##### [805-20-55-6](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:677fec9b077ac7faa75528bca5cad90f19888a6216e3638ad303fe85151aafdb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The acquirer subsumes into goodwill the value of an acquired intangible asset that is not identifiable as of the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree."). For example, an acquirer may attribute value to the existence of an assembled workforce, which is an existing collection of employees that permits the acquirer to continue to operate an acquired business from the acquisition date. An assembled workforce does not represent the intellectual capital of the skilled workforce―the (often specialized) knowledge and experience that employees of an acquiree bring to their jobs. Because the assembled workforce is not an identifiable asset to be recognized separately from goodwill, any value attributed to it is subsumed into goodwill. ##### [805-20-55-7](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:4677e0b03c197f1f513560bbb148310a45e7ce79bf75eff81abf35e02dc8b41b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The acquirer also subsumes into goodwill any value attributed to items that do not qualify as assets at the acquisition date. For example, the acquirer might attribute value to potential contracts the acquiree is negotiating with prospective new customers at the acquisition date. Because those potential contracts are not themselves assets at the acquisition date, the acquirer does not recognize them separately from goodwill. The acquirer should not subsequently reclassify the value of those contracts from goodwill for events that occur after the acquisition date. However, the acquirer should assess the facts and circumstances surrounding events occurring shortly after the acquisition to determine whether a separately recognizable intangible asset existed at the acquisition date. ##### [805-20-55-8](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:7423c6efbfa01dc5f4a03e5231bce298f5c686f1aadb4cab106cbc45e13dab6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After initial recognition, an acquirer accounts for intangible assets acquired in a business combination in accordance with the provisions of Subtopics 350-30and 360-10. However, as described in paragraph [350-10-15-4](https://asc.understandingaccounting.org/asc/350/10/#350-10-15-4), the accounting for some acquired intangible assets after initial recognition is prescribed in other standards. ##### [805-20-55-9](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:a63352c1acd1a874804da7dd59c042689b8460ca7f682eb657a873e454f579c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The identifiability criteria determine whether an intangible asset is recognized separately from goodwill. However, the criteria neither provide guidance for measuring the fair value of an intangible asset nor restrict the assumptions used in measuring the fair value of an intangible asset. For example, the acquirer would take into account the assumptions that market participants would use when pricing the intangible asset, such as expectations of future contract renewals, in measuring fair value. It is not necessary for the renewals themselves to meet the identifiability criteria. (However, see paragraph [805-20-30-20](https://asc.understandingaccounting.org/asc/805/20/#805-20-30-20), which establishes an exception to the fair value measurement principle for reacquired rights recognized in a business combination.) ##### [805-20-55-10](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:74c1631c3a25f8da7e4a2fce6133a5d19b8ea9d16c1c56ed265fd33b284bb443 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [350-30-35-21 through 35-28](https://asc.understandingaccounting.org/asc/350/30/#350-30-35-21) provide guidance for determining whether indefinite-lived intangible assets should be combined into a single unit of account to test for impairment if they are operated as a single asset and essentially are inseparable from one another. ##### [805-20-55-11](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:1f43ccbd4e8655b30c24c7ea5f0b6bcfb2d74e0782715ee10e3215a5eed9a701 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance presents examples of identifiable intangible assets acquired in a business combination. Some of the examples may have characteristics of assets other than intangible assets. The acquirer should account for those assets in accordance with their substance. The examples are not intended to be all-inclusive. ##### [805-20-55-12](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:187d1a5174076e5b10dc9f0e83c3e83e388c5d66212ad7ed5701696fbb6d6d03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Intangible assets designated with the symbol # are those that arise from contractual or other legal rights. Those designated with the symbol \* do not arise from contractual or other legal rights but are separable. Intangible assets designated with the symbol # might also be separable, but separability is not a necessary condition for an asset to meet the contractual-legal criterion. ##### [805-20-55-13](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:a1fc08b31fb96ce9bfdc8828c02f1dc1b0da56d32d218e487480975a5529db2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance is organized as follows: 1. a Marketing-related intangible assets 2. b Customer-related intangible assets 3. c Artistic-related intangible assets 4. d Contract-based intangible assets 5. e Technology-based intangible assets. ##### [805-20-55-14](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:32963fa88a5ed24b6d87e40dab674c82444580119eeffe805f1a1e903d7c204e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Marketing-related intangible assets are primarily used in the marketing or promotion of products or services. Examples of marketing-related intangible assets are: 1. a Trademarks, trade names, service marks, collective marks, certification marks # 2. b Trade dress (unique color, shape, package design) # 3. c Newspaper mastheads # 4. d Internet domain names # 5. e Noncompetition agreements. # ##### [805-20-55-15](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:ce5a9e93ed6bc465b4b6d05f579609cfaf7bf9164ce9ead11f087157c42c2837 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Guidance on trademarks, trade names, service marks, collective marks, certification marks, and internet domain names follows. ##### [805-20-55-16](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:15057e3bd64e69caa3f77498bd827a018eed9ce84858467a856fc13192ac1b91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Trademarks are words, names, symbols, or other devices used in trade to indicate the source of a product and to distinguish it from the products of others. A service mark identifies and distinguishes the source of a service rather than a product. Collective marks identify the goods or services of members of a group. Certification marks certify the geographical origin or other characteristics of a good or service. ##### [805-20-55-17](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:3f23479573d8b842dae4ac412859731e19d2b1fdd9d842ed47be71b10e4e74f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Trademarks, trade names, service marks, collective marks, and certification marks may be protected legally through registration with governmental agencies, continuous use in commerce, or by other means. If it is protected legally through registration or other means, a trademark or other mark acquired in a business combination is an intangible asset that meets the contractual-legal criterion. Otherwise, a trademark or other mark acquired in a [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.") can be recognized separately from goodwill if the separability criterion is met, which normally it would be. ##### [805-20-55-18](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:f8f575ffe1642c88c7a9412285e7445b8a1cb9e89953a73b508ddba83fbcb646 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms _brand_ and _brand name_, often used as synonyms for trademarks and other marks, are general marketing terms that typically refer to a group of complementary assets such as a trademark (or service mark) and its related trade name, formulas, recipes, and technological expertise. This Subtopic does not preclude an entity from recognizing, as a single asset separately from goodwill, a group of complementary intangible assets commonly referred to as a brand if the assets that make up that group have similar useful lives. ##### [805-20-55-19](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:7dda199f69df4054168c3acb5964763286c2e5d32a793efe70a3b7989d166423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An internet domain name is a unique alphanumeric name that is used to identify a particular numeric internet address. Registration of a domain name creates an association between that name and a designated computer on the internet for the period of the registration. Those registrations are renewable. A registered domain name acquired in a business combination meets the contractual-legal criterion. ##### [805-20-55-20](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:00ea16b8b39e832c2e43e98a9f1401f2d2c51434fe73878c00d782962ee7fb68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of customer-related intangible assets are: 1. a Customer lists \* 2. b Order or production backlog # 3. c Customer contracts and related customer relationships # 4. d Noncontractual customer relationships. \* ##### [805-20-55-21](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:7e2e93447d1ca8e1b0fb5476fc653e0d71bf974c2e95dae7b885581594bdd86c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A customer list consists of information about customers, such as their names and contact information. A customer list also may be in the form of a database that includes other information about the customers, such as their order histories and demographic information. A customer list generally does not arise from contractual or other legal rights. However, customer lists are frequently leased or exchanged. Therefore, a customer list acquired in a business combination normally meets the separability criterion. ##### [805-20-55-22](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:6ce468f5001732248824a52e5ff78dfb5082e04e20d39a52dbf9f68d7ce28968 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An order or production backlog arises from contracts such as purchase or sales orders. An order or production backlog acquired in a business combination meets the contractual-legal criterion even if the purchase or sales orders are cancelable. ##### [805-20-55-23](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:9cddc03d391a449588da7e23aba6e260c859221b1fc2e15a4c1799505151cda1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity establishes relationships with its customers through contracts, those customer relationships arise from contractual rights. Therefore, customer contracts and the related customer relationships acquired in a business combination meet the contractual-legal criterion, even if confidentiality or other contractual terms prohibit the sale or transfer of a contract separately from the acquiree. ##### [805-20-55-24](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:e0cb21e369bfd07ed4f59a0b63d5522bef19c4cd0252b5abb52d2156072b431c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A customer contract and the related customer relationship may represent two distinct intangible assets. Both the useful lives and the pattern in which the economic benefits of the two assets are consumed may differ. ##### [805-20-55-25](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:6aa2c3f70fe986e8fbaf41bf4d276bb85570951f11dad09c87b292824ddcf66d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A customer relationship exists between an entity and its customer if the entity has information about the customer and has regular contact with the customer, and the customer has the ability to make direct contact with the entity. Customer relationships meet the contractual-legal criterion if an entity has a practice of establishing contracts with its customers, regardless of whether a contract exists at the acquisition date. Customer relationships also may arise through means other than contracts, such as through regular contact by sales or service representatives. As noted in paragraph [805-20-55-22](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-22), an order or a production backlog arises from contracts such as purchase or sales orders and therefore is considered a contractual right. Consequently, if an entity has relationships with its customers through these types of contracts, the customer relationships also arise from contractual rights and therefore meet the contractual-legal criterion. ##### [805-20-55-26](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:ccd9ffd999b19c8f9e01f2f83ea619c1c6c35f425fc301ab6745061f67040529 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1 (paragraph [805-20-55-52](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-52)) for illustrations of customer contract and customer relationship intangible assets acquired in a business combination. ##### [805-20-55-27](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:89a23c3287e6e1c43cfec2ee9ee8e8b06b4cd08261488ca4f0e44642d13703d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A customer relationship acquired in a business combination that does not arise from a contract may nevertheless be identifiable because the relationship is separable. Exchange transactions for the same asset or a similar asset that indicate that other entities have sold or otherwise transferred a particular type of noncontractual customer relationship would provide evidence that the noncontractual customer relationship is separable. For example, relationships with depositors are frequently exchanged with the related deposits and therefore meet the criteria for recognition as an intangible asset separately from goodwill. ##### [805-20-55-28](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:7fa8d657599c341b1908b92136ee0f12d8da61731ce7e72a42bcff83f474bb0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1 (paragraph [805-20-55-52](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-52)) for illustrations of customer contract and customer relationship intangible assets acquired in a business combination. ##### [805-20-55-29](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:4d58a865addc1b8ccef227b36a2078d9bc25087ce195e5b8658b9752ccef7149 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of artistic-related intangible assets are: 1. a Plays, operas, ballets # 2. b Books, magazines, newspapers, other literary works # 3. c Musical works such as compositions, song lyrics, advertising jingles # 4. d Pictures, photographs # 5. e Video and audiovisual material, including motion pictures or films, music videos, television programs. # ##### [805-20-55-30](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:2752551fe67b961e25bfed38486595ad465564675f2f5362fd05ec4d25d7e18e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Artistic-related assets acquired in a business combination are identifiable if they arise from contractual or legal rights such as those provided by copyright. The holder can transfer a copyright, either in whole through an assignment or in part through a licensing agreement. An acquirer is not precluded from recognizing a copyright intangible asset and any related assignments or license agreements as a single asset, provided they have similar useful lives. ##### [805-20-55-31](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:e4a483cb90f0f66715dac8d3682f425aac1ac2683de1868d3fd2040d8f6068d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contract-based intangible assets represent the value of rights that arise from contractual arrangements. Customer contracts are one type of contract-based intangible asset. If the terms of a contract give rise to a liability (for example, if the terms of a customer contract are unfavorable relative to market terms), the acquirer recognizes it as a liability assumed in the business combination. Examples of contract-based intangible assets are: 1. a Licensing, royalty, standstill agreements # 2. b Advertising, construction, management, service or supply contracts # 3. c Operating lease agreements of a lessor # 4. d Construction permits # 5. e Franchise agreements # 6. f Operating and broadcast rights # 7. g Servicing contracts such as mortgage servicing contracts # 8. h Employment contracts # 9. i Use rights such as drilling, water, air, timber cutting, and route authorities. # ##### [805-20-55-32](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:769bd48a5138513349f74a729e291203bc64e36a749e457d1d862fa2a0d3d70a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Guidance on servicing contracts, employment contracts, and use rights follows. ##### [805-20-55-33](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:34eae6024511785613267394614866b421a2867764e66e115e611eb058f07b41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contracts to service financial assets are one type of contract-based intangible asset. Although servicing is inherent in all financial assets, it becomes a distinct asset or liability by either of the following: 1. a If the transfer of the servicer's financial assets met the requirements for sale accounting 2. b Through the separate acquisition or assumption of a servicing obligation that does not relate to financial assets of the combined entity. ##### [805-20-55-34](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:89bb9eaed33114e249e31d279c4454ab0ab0ed7f293e3d20b037e7e27f1beebb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 860 provides guidance on accounting for servicing contracts. ##### [805-20-55-35](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:cc4a5ae7cdf4b950312dff8a42898d0e5127f109b8fde46d7ac344f3f97b64a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If mortgage loans, credit card receivables, or other financial assets are acquired in a business combination with the servicing obligation, the inherent servicing rights are not a separate intangible asset because the fair value of those servicing rights is included in the measurement of the fair value of the acquired financial asset. ##### [805-20-55-36](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:a77392ce5315853dea80936c9c38821375b91ef61abcd077062d22fd2f8b701e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Employment contracts that are beneficial contracts from the perspective of the employer because the pricing of those contracts is favorable relative to market terms are one type of contract-based intangible asset. ##### [805-20-55-37](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-37) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:e0b0eba2f85a0c626ddc5cd44bf401913f377e338052aed8d8c670d65cd3b2a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Use rights such as drilling, water, air, timber cutting, and route authorities are contract-based intangible assets to be accounted for separately from goodwill. Particular use rights may have characteristics of tangible, rather than intangible, assets. For example, [mineral rights](https://asc.understandingaccounting.org/glossary/m/#mineral-rights "The legal right to explore, extract, and retain at least a portion of the benefits from mineral deposits.") are tangible assets. An acquirer should account for use rights based on their nature. ##### [805-20-55-38](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-38) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:f7b9564468bfb7a27231d7bdcc89615370f32f5becbbc5c3a285e7f05de20a77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of technology-based intangible assets are: 1. a Patented technology # 2. b Computer software and mask works # 3. c Unpatented technology \* 4. d Databases, including title plants \* 5. e Trade secrets, such as secret formulas, processes, recipes. # ##### [805-20-55-39](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-39) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:c568b4c51599927a99e9fe0ba17a46f4542312284e00cb78a5d2755f3a511540 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Guidance on computer software and mask works, databases, including title plants, and trade secrets such as secret formulas, processes, and recipes follows. ##### [805-20-55-40](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-40) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:c6f2f0d12ec0e41f70235f401853fe9a9e83ada735716099216852e150462d7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Computer software and program formats acquired in a business combination that are protected legally, such as by patent or copyright, meet the contractual-legal criterion for identification as intangible assets. ##### [805-20-55-41](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-41) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:1667785a904de3f1af2317a66882647aa1d8c3a3c709713750f19408f9f0d0ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mask works are software permanently stored on a read-only memory chip as a series of stencils or integrated circuitry. Mask works may have legal protection. Mask works with legal protection that are acquired in a business combination meet the contractual-legal criterion for identification as intangible assets. ##### [805-20-55-42](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-42) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:dc2f5bd33633c1286903639f9dd77b9b637170b469ff939d89ed30c55ff0a06b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Databases are collections of information, often stored in electronic form, such as on computer disks or files. A database that includes original works of authorship may be entitled to copyright protection. A database acquired in a business combination that is protected by copyright meets the contractual-legal criterion. However, a database typically includes information created as a consequence of an entity's normal operations, such as customer lists, or specialized information, such as scientific data or credit information. Databases that are not protected by copyright can be, and often are, exchanged, licensed, or leased to others in their entirety or in part. Therefore, even if the future economic benefits from a database do not arise from legal rights, a database acquired in a business combination meets the separability criterion. ##### [805-20-55-43](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-43) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:852c66e4208f9ca8f5f49481c865ffd1e314365526db701359bc8c6b768da611 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Title plants constitute a historical record of all matters affecting title to parcels of land in a particular geographical area. Title plant assets are bought and sold, either in whole or in part, in exchange transactions or are licensed. Therefore, title plant assets acquired in a business combination meet the separability criterion. ##### [805-20-55-44](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-44) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:f47c2df799e1eda0474809c953f795c69282e00687e9969fda91c4b627c81f00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A trade secret is “information, including a formula, pattern, recipe, compilation, program, device, method, technique, or process that (1) derives independent economic value, actual or potential, from not being generally known and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy," according to _The New Role of Intellectual Property in Commercial Transactions_ (Simensky and Breyer 1998). ##### [805-20-55-45](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-45) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:aa50c4dec322bc228cea18a86a65145b38aac9691971ad5d008771c20fa9d4b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the future economic benefits from a trade secret acquired in a business combination are legally protected, that asset meets the contractual-legal criterion. Otherwise, trade secrets acquired in a business combination are identifiable only if the separability criterion is met, which is likely to be the case. ##### [805-20-55-46](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-46) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:d9a1f0dae47a09d645248d0cc9debff0174fbd39ea2613d6d58b70a7dae78aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [805-20-55-47](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-47) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:38a9afc7707c1442c4b788896aae6d804846c044e82668017ce6658ecd1118e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [805-20-55-48](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-48) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:ca331c338f097704abe7973a440f8f0f63b19d2ca4b3ae66571f29fe1fb8fda6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [805-20-55-49](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-49) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:504a8b166f383e6649b52f3bb59600902095055a17173a91fe9eb8eab8b222bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [805-20-55-50](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-50) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:5d61fa187eae826a51418e7a5e720edfc4878f5fd27d64a00713719690fcbb5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that has agreed to a business combination may develop a plan to terminate certain employees. The plan will be implemented only if the combination is consummated, but the entity assesses the likelihood of the combination to be probable. In this circumstance, when terminated, the employees will be entitled to termination benefits under a preexisting plan or contractual relationship. The termination of the employees also may affect the entity's assumptions in estimating its obligations for pension benefits, other postretirement benefits, and postemployment benefits; that is, the termination of the employees may trigger curtailment losses or the recording of a contractual termination benefit. ##### [805-20-55-51](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-51) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:32ba1aeb80c3e733157c4c4c6bf978f91892e79422fe77e74fc5d830a7e93904 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The liability for the contractual termination benefits and the curtailment losses under employee benefit plans that will be triggered by the consummation of the business combination shall not be recognized when it is probable that the business combination will be consummated; rather it shall be recognized when the business combination is consummated. #### Illustrations ##### [805-20-55-52](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-52) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:744c40e9be186e7642497f7ebf0560f0fd56592ae897ef98a9c6d72ea4c2189a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the guidance in paragraphs [805-20-55-23 through 55-27](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-23) on recognition of customer contract and customer relationship intangible assets acquired in a business combination: 1. a Five-year supply agreement (Case A) 2. b One customer, contract in one of two lines of business (Case B) 3. c Purchase and sales orders (Case C) 4. d Cancelable contracts (Case D). ##### [805-20-55-53](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-53) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:5e9a8c33a8c7be70454e8c92b8aa93d2fdb8c69b792ca9ac1c5c4febc968a937 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In each of the Cases, the Acquirer acquires Target in a business combination on December 31, 20X5. ##### [805-20-55-54](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-54) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:796f64ab81af8b88aa78005f4af5cf678e21eb0cdd3538a6c43b9410b5ca5c8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Target has a five-year agreement to supply goods to Customer. Both Target and Acquirer believe that Customer will renew the agreement at the end of the current contract. The agreement is not separable. The agreement, whether cancelable or not, meets the contractual-legal criterion. Additionally, because Target establishes its relationship with Customer through a contract, not only the agreement itself but also Target's customer relationship with Customer meet the contractual-legal criterion. ##### [805-20-55-55](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-55) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:0c8c2f6a87a9d65845aaa38e03929b71933f10652dd0c3097098ced4151277e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Target manufactures goods in two distinct lines of business: sporting goods and electronics. Customer purchases both sporting goods and electronics from Target. Target has a contract with Customer to be its exclusive provider of sporting goods but has no contract for the supply of electronics to Customer. Both Target and Acquirer believe that only one overall customer relationship exists between Target and Customer. The contract to be Customer's exclusive supplier of sporting goods, whether cancelable or not, meets the contractual-legal criterion. Additionally, because Target establishes its relationship with Customer through a contract, the customer relationship with Customer meets the contractual-legal criterion. Because Target has only one customer relationship with Customer, the fair value of that relationship incorporates assumptions about Target's relationship with Customer related to both sporting goods and electronics. However, if Acquirer determines that the customer relationships with Customer for sporting goods and for electronics are separate from each other, Acquirer would assess whether the customer relationship for electronics meets the separability criterion for identification as an intangible asset. ##### [805-20-55-56](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-56) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:b613f599f5b94cd63ac4276ecd8f9b2f13a43a05b9f2c158b5c193e40ea21fa7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Target does business with its customers solely through purchase and sales orders. At December 31, 20X5, Target has a backlog of customer purchase orders from 60 percent of its customers, all of whom are recurring customers. The other 40 percent of Target's customers also are recurring customers. However, as of December 31, 20X5, Target has no open purchase orders or other contracts with those customers. Regardless of whether they are cancelable or not, the purchase orders from 60 percent of Target's customers meet the contractual-legal criterion. Additionally, because Target has established its relationship with 60 percent of its customers through contracts, not only the purchase orders but also Target's customer relationships meet the contractual-legal criterion. Because Target has a practice of establishing contracts with the remaining 40 percent of its customers, its relationship with those customers also arises through contractual rights and therefore meets the contractual-legal criterion even though Target does not have contracts with those customers at December 31, 20X5. ##### [805-20-55-57](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-57) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:2a8629a7fd33bdf31fa6cdefd57e24ac69a7f620cfee65f3c15013600405e23d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Target has a portfolio of one-year motor insurance contracts that are cancelable by policyholders. Because Target establishes its relationships with policyholders through insurance contracts, the customer relationship with policyholders meets the contractual-legal criterion. The guidance in Subtopic 350-30 applies to the customer relationship intangible asset. ##### [805-20-55-58](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-58) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:d51e5e9315828e7849768b2a11ffa4105a4139c8063c7bac7116c8af6f22268b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [805-20-55-59](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-59) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:a9449b00f7057df3187856067ff5f2583adad9b3fd320eca0a0b602bd9ffdfba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [805-20-55-60](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-60) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:36.397Z to 2026-09-10T01:23:36.397Z Record version: sha256:5f60d44b0d01c6c059a8e7b5e36a7f98e6bd892c4c02a86486363bfa67b9b1ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).