{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/810/30/#35-subsequent-measurement","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":"810","topic_title":"Consolidation","subtopic":"810-30","subtopic_title":"Research and Development Arrangements","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-30-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_91DCDA01-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If there is a purchase option, the <a href=\"/glossary/s/#sponsor\" class=\"term\" title=\"An entity that capitalizes a research and development arrangement.\"><span>sponsor</span></a> of a research and development arrangement shall account for the exercise of the option to acquire the new entity's Class A common stock like the acquisition of <a href=\"/glossary/n/#noncontrolling-interest\" class=\"term\" title=\"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.\"><span>noncontrolling interest</span></a>. That is, the excess of the option exercise price over the carrying amount of the new entity's Class A common stock should be allocated to the assets acquired (generally, in-process or completed research and development) and liabilities assumed (if any). However, if the sponsor does not exercise the purchase option, the new entity's Class A common stock should be reclassified to additional paid-in capital upon expiration of the option as an adjustment to the initial dividend. Example 1 (see paragraph <a href=\"/asc/810/30/#810-30-55-1\" class=\"xref\">810-30-55-1</a>) provides an illustration of the application of this guidance to a research and development arrangement. </span></span></div></div>","snippet":"If there is a purchase option, the sponsor of a research and development arrangement shall account for the exercise of the option to acquire the new entity's Class A common stock like the acquisition of noncontrolling in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af81cfe69024f186608640e60657b30c88c4a04cd820ac1631f40cf003e309d8","downloaded_from":"2026-09-10T01:30:23.424Z","last_downloaded_at":"2026-09-10T01:30:23.424Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481151","source_sha256":"4fcf1b016144d534d1926551147653b06824ff1c6de2ce9fb7ab1222bdb6b472"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f99d345a91e3e8941736cfd7316ff9a4dd51c03004a95a71d70582502aa06408","downloaded_from":"2026-09-10T01:30:23.424Z","last_downloaded_at":"2026-09-10T01:30:23.424Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481151","source_sha256":"4fcf1b016144d534d1926551147653b06824ff1c6de2ce9fb7ab1222bdb6b472"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8a05579669ccba7ba5dfab521ba3a7fbf551c19925d97cc46b7601a636c6bf1","downloaded_from":"2026-09-10T01:30:23.424Z","last_downloaded_at":"2026-09-10T01:30:23.424Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481151","source_sha256":"4fcf1b016144d534d1926551147653b06824ff1c6de2ce9fb7ab1222bdb6b472"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8a05579669ccba7ba5dfab521ba3a7fbf551c19925d97cc46b7601a636c6bf1","downloaded_from":"2026-09-10T01:30:23.424Z","last_downloaded_at":"2026-09-10T01:30:23.424Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481151","source_sha256":"4fcf1b016144d534d1926551147653b06824ff1c6de2ce9fb7ab1222bdb6b472"}}