# ASC 912-10: Contractors—Federal Government — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/912/10/) 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): 2026-09-10T02:09:56.619Z to 2026-09-10T02:10:05.382Z Record version: sha256:07592a940fe81ecc1f556a2a71a7f09f950aeeb18381d901bb3f89730ba9999a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 912-10: Contractors—Federal Government — Overall ### Machine-generated study aids ```json { "summary": "ASC 912-10 is the Overall subtopic of the Contractors—Federal Government Topic, which layers incremental industry guidance on top of otherwise applicable GAAP for entities doing business with the U.S. federal government. It explains that the federal customer is a sovereign that procures under statutes and regulations governing contractor selection, monitoring, and payment, creating risks not present in commercial dealings. Its scope covers all entities with federal government contracts, specifically cost-plus-fixed-fee contracts and fixed-price war and defense supply contracts terminated for the convenience of the government.", "key_points": [ "This Topic provides only incremental industry-specific guidance; entities within its scope must also comply with all other applicable GAAP standards (912-10-15-1).", "The term 'contractor' means either a prime contractor or subcontractor, and 'contract' means either a prime contract or subcontract, unless the text clearly indicates otherwise (912-10-15-1).", "The guidance applies to all entities engaging in federal government contracts (912-10-15-2), and specifically to cost-plus-fixed-fee contracts and to fixed-price war and defense supply contracts terminated in whole or in part for the convenience of the government (912-10-15-3).", "The terminated fixed-price war and defense supply contract guidance does not specifically apply to terminated cost-plus-fixed-fee contracts or contracts for facilities or services, but may serve as a guide for them (912-10-15-4).", "Government contractors face risks beyond their industry risks, including complex cost accounting regulations, penalties even for immaterial violations (e.g., False Claims Act), frequent government scrutiny of business and accounting practices, and unilateral government rights (912-10-05-5).", "Where contracts or contract changes are negotiated based on cost, cost accounting considerations drive pricing, contract administration, and thus reported financial position and results of operations (912-10-05-5(d)).", "Several subtopics and scope subparagraphs (including revenue-related guidance) were superseded by ASU 2014-09, and related industry guidance appears in Subtopic 910-20 (912-10-05-1, 912-10-05-2)." ], "categories": [ "Industry-specific", "Recognition", "Contingencies and guarantees", "Revenue" ], "audience_level": "intermediate", "student_note": "Remember that ASC 912 is only an overlay: it never replaces mainstream GAAP, so you must first apply ASC 606, 340-40, etc., then add these federal-contracting specifics. A common misunderstanding is treating ASC 912 as a self-contained revenue model—much of its old revenue guidance was superseded by ASU 2014-09.", "related_topics": [ "910-20", "606", "340-40", "912-20", "912-450", "912-235" ], "key_concepts": [ "government contractor", "cost-plus-fixed-fee contract", "termination for convenience", "prime contractor and subcontractor", "cost accounting regulations", "incremental industry guidance", "procurement statutes and regulations", "unilateral government rights" ] } ``` Source downloaded (UTC): 2026-09-10T02:09:56.619Z to 2026-09-10T02:09:56.619Z Record version: sha256:b2a65a22679fffe39839d5e27adcc45ca21f45af82bfb769f58e2d3ef093c52f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 912-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/912/10/#00-status) SEC content: no ##### [912-10-00-1](https://asc.understandingaccounting.org/asc/912/10/#912-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:09:56.619Z to 2026-09-10T02:09:56.619Z Record version: sha256:31a1a69e09acec717079a92eac4b21840b6e1b015c919b0b7d452789b376baf1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
912-10-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
912-10-15-3AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T02:10:00.188Z to 2026-09-10T02:10:00.188Z Record version: sha256:3e7f23a4ef40074d983c79b9857e8d1f0447c0932d6e6a99a19074a4a556c167 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 912-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/912/10/#05-overview-and-background) SEC content: no ##### [912-10-05-1](https://asc.understandingaccounting.org/asc/912/10/#912-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:00.188Z to 2026-09-10T02:10:00.188Z Record version: sha256:bc9fe78a7abf3255d3b5ab46849228c47b60a2e3351ebaf3dcddf61c3d1d8794 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Contractors—Federal Government Topic provides incremental guidance for government contractors. See also Subtopic 910-20. ##### [912-10-05-2](https://asc.understandingaccounting.org/asc/912/10/#912-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:00.188Z to 2026-09-10T02:10:00.188Z Record version: sha256:3ce9f300f53d2696edd4a5e711fe398da63e2207fb10f02de8be8ecf3e072710 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic includes the following Subtopics: 1. a Overall 2. b Contract Costs 3. c [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 4. d Income Statement 5. e [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 6. f Changing Prices 7. g Risks and Uncertainties 8. h Receivables 9. i Inventory 10. j Liabilities 11. k Contingencies 12. l [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 13. m Cost of Sales and Services 14. n Compensation—Retirement Benefits 15. o Research and Development 16. p Interest. ##### [912-10-05-3](https://asc.understandingaccounting.org/asc/912/10/#912-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:00.188Z to 2026-09-10T02:10:00.188Z Record version: sha256:db0bc401147fc8ac8042bededa743759007c9c0038100b7706e96e85536a6cb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities electing to do business with the federal government will find a customer who behaves, in some significant ways, very differently from commercial customers. This unique behavior results from the customer being a sovereign power that conducts its procurement activities under specific laws and implementing regulations. These procurement statutes and regulations govern the process the federal government must follow in its business dealings with private industry. They cover such critical matters as how the federal government selects, monitors, and pays its contractors. ##### [912-10-05-4](https://asc.understandingaccounting.org/asc/912/10/#912-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:00.188Z to 2026-09-10T02:10:00.188Z Record version: sha256:f928083f93593f44a1afad71ed47c190183c0e108e8d07c1bb2dabb84aac6c8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. While most industries include entities that are government contractors, certain industries are more heavily involved in providing goods and services to the government. These industries include manufacturing, architect-engineering, professional services, construction, aerospace, shipbuilding, and technology. ##### [912-10-05-5](https://asc.understandingaccounting.org/asc/912/10/#912-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:00.188Z to 2026-09-10T02:10:00.188Z Record version: sha256:63b510dbfcfb72427414fe634ba982a991dc7a380f808d124021ad12ca2f600b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities engaged in government contracting are subject to the risks associated with their respective industries, as well as additional risks that generally are not encountered by other business entities in the commercial sector. These additional risks are caused principally by the highly regulated environment in which government contractors operate. Such risks include, but are not necessarily limited to, all of the following: 1. a Contractors are subject to extensive and complex cost accounting and other regulations, and in some circumstances, significant penalties even for violations of relatively immaterial dollar amounts (such as penalties under the False Claims Act). 2. b Business and accounting practices are subject to frequent scrutiny by the government. 3. c The government has unilateral rights not found in commercial relationships. 4. d If contracts or contract changes are negotiated based on cost, cost accounting considerations play a vital role in pricing and administering government contracts and, consequently, determining the contractor's reported financial position and results of operations. Source downloaded (UTC): 2026-09-10T02:10:02.232Z to 2026-09-10T02:10:02.232Z Record version: sha256:e76ee950ee5f6a65f84004095c3360dc740196345bac8d6aeff2507cc4b6d866 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 912-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/912/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [912-10-15-1](https://asc.understandingaccounting.org/asc/912/10/#912-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:02.232Z to 2026-09-10T02:10:02.232Z Record version: sha256:522a58c6648b2982243a2551c6dfd1414c768c9fbad674587274aa119bc0d586 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Contractors—Federal Government Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Subtopics. Entities within the scope of this Topic shall also comply with the applicable standards not included in this Topic. Except where the text clearly indicates otherwise, the term _contractor_ is used to denote either a prime contractor or a subcontractor, and the term _contract_ to denote either a prime contract or a subcontract. #### Entities ##### [912-10-15-2](https://asc.understandingaccounting.org/asc/912/10/#912-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:02.232Z to 2026-09-10T02:10:02.232Z Record version: sha256:72060389110cb132863ec801a2725ac4ce2f6907ea7c67d095f416637161b622 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all entities that engage in federal government contracts. #### Transactions ##### [912-10-15-3](https://asc.understandingaccounting.org/asc/912/10/#912-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:02.232Z to 2026-09-10T02:10:02.232Z Record version: sha256:250e0eaf09a9e4ebe40149fd49364d47404cd532a9ca5756588e9a58f0a12b5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all of the following transactions and activities: 1. a [Cost-plus-fixed-fee contracts](https://asc.understandingaccounting.org/glossary/c/#cost-plus-fixed-fee-contract "A contract under which the contractor is reimbursed for costs plus the provision for a fixed fee.") 2. b [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 3. c Fixed-price war and defense supply contracts terminated, in whole or in part, for the convenience of the government. ##### [912-10-15-4](https://asc.understandingaccounting.org/asc/912/10/#912-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:10:02.232Z to 2026-09-10T02:10:02.232Z Record version: sha256:3ea90a35d4263c2357d4a385ea32c486725fe7e4d4a9e2b49afbe5c3393f4fbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic with respect to fixed-price war and defense supply contracts terminated, in whole or in part, for the convenience of the government does not specifically apply to terminated cost-plus-fixed-fee contracts nor to contracts for facilities or services. However, the conclusions reached herein may serve as guides for the accounting applicable to such contracts.