# ASC 808-10-45: Collaborative Arrangements — Overall — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/808/10/#45-other-presentation-matters) 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): 2026-09-10T01:28:29.703Z to 2026-09-10T01:28:29.703Z Record version: sha256:68f733350fa39586ee2107621bd3371f0efab7efd6d7b801ba4f19c193a2fb47 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 808-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/808/10/#45-other-presentation-matters) SEC content: no ##### [808-10-45-1](https://asc.understandingaccounting.org/asc/808/10/#808-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:29.703Z to 2026-09-10T01:28:29.703Z Record version: sha256:031fb44515edb8f89b25e871307b8ea775fed95a2bc29eb0100d4f319f2d56c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Participants in a [collaborative arrangement](https://asc.understandingaccounting.org/glossary/c/#collaborative-arrangement "A contractual arrangement that involves a joint operating activity (see paragraph 808-10-15-7). These arrangements involve two (or more) parties that meet both of the following requirements: They are active participants in the activity (see paragraphs 808-10-15-8808-10-15-9). They are exposed to significant risks and rewards dependent on the commercial success of the activity (see paragraphs 808-10-15-10808-10-15-11808-10-15-12808-10-15-13).") shall report costs incurred and [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") generated from transactions with _third parties_ (that is, parties that do not participate in the arrangement) in each entity's respective income statement pursuant to the guidance on principal versus agent considerations in paragraphs [606-10-55-36 through 55-40](https://asc.understandingaccounting.org/asc/606/10/#606-10-55-36) . An entity shall not apply the equity method of accounting under Subtopics 323-10 and 323-30 to activities of collaborative arrangements. ##### [808-10-45-2](https://asc.understandingaccounting.org/asc/808/10/#808-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:29.703Z to 2026-09-10T01:28:29.703Z Record version: sha256:6a4655006fbd869393eb0bf92f000d8745251d8941892a8775ff96de2ec84836 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For costs incurred and revenue generated from third parties, the participant in a collaborative arrangement that is deemed to be the principal for a given transaction under paragraphs [606-10-55-36 through 55-40](https://asc.understandingaccounting.org/asc/606/10/#606-10-55-36) shall record that transaction on a gross basis in its financial statements. ##### [808-10-45-3](https://asc.understandingaccounting.org/asc/808/10/#808-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:29.703Z to 2026-09-10T01:28:29.703Z Record version: sha256:6dfbf84d69de2a0b81927766a32829477bb0a8e0c9c9bb80e19e177e82564e71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Parts of a collaborative arrangement that are within the scope of other authoritative accounting literature in accordance with paragraph [808-10-15-5A](https://asc.understandingaccounting.org/asc/808/10/#808-10-15-5A) shall be presented using the relevant provisions of that literature. If parts of the arrangement are outside the scope of other authoritative accounting literature, the presentation of those parts shall be based on an analogy to authoritative accounting literature or if there is no appropriate analogy, a reasonable, rational, and consistently applied accounting policy election. An entity shall evaluate the presentation of parts of a collaborative arrangement on the basis of the nature of the arrangement, the nature of its business operations, and the contractual terms of the arrangement. For example, if one party to an arrangement is required to make a payment to the other party to reimburse a portion of that party's research and development costs, that portion of the net payment may be classified as research and development expense in the payor's financial statements in accordance with Topic 730. An entity is precluded from presenting transactions in a collaborative arrangement together with revenue from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") unless the entity applies the guidance in Topic 606 to a unit of account that is within the scope of that Topic in accordance with paragraph [808-10-15-5B](https://asc.understandingaccounting.org/asc/808/10/#808-10-15-5B). ##### [808-10-45-4](https://asc.understandingaccounting.org/asc/808/10/#808-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:29.703Z to 2026-09-10T01:28:29.703Z Record version: sha256:765fcfd3f8aa2804f8b276d8e90cee8f98da8df1a60716248adcb67c211df031 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-18](https://asc.understandingaccounting.org/updates/asu-2018-18/). ##### [808-10-45-5](https://asc.understandingaccounting.org/asc/808/10/#808-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:29.703Z to 2026-09-10T01:28:29.703Z Record version: sha256:8088ca6b2035ebb41b7b3d64baf20ffa169299e0315456d510858500a8c72378 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 808-10-55 for additional guidance, including Examples 1 through 4.