# ASC 946-20-40: Financial Services—Investment Companies — Investment Company Activities — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/946/20/#40-derecognition)

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## ASC 946-20-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/946/20/#40-derecognition)

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#### Offering Costs

##### [946-20-40-1](https://asc.understandingaccounting.org/asc/946/20/#946-20-40-1)

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[Offering costs](https://asc.understandingaccounting.org/glossary/o/#offering-costs "Offering costs include all of the following: Legal fees pertaining to the investment company's shares offered for sale Securities and Exchange Commission (SEC)and state registration fees Underwriting and other similar costs Costs of printing prospectuses for sales purposes Initial fees paid to be listed on an exchange Tax opinion costs related to offering of shares Initial agency fees of securing the rating for bonds or preferred stock issued by closed-end funds.") of unit investment trusts that have not yet been charged to paid-in capital shall be written off when it is no longer probable that the shares to which the offering costs relate will be issued in the future. It is presumed that those costs will not have a future benefit one year from the initial offering.