Recognition

This Subtopic applies the general accounting change and error correction rules of Topic 250 to entities with regulated operations that meet the criteria of paragraph 980-10-15-2 (so that costs designated for future recovery by the regulator are probable of recovery). Its core rule is that a change in accounting method that does not affect costs allowable for rate-making purposes is reported the same way an unregulated entity would report it, whereas a change that does affect allowable costs is generally implemented the way it is implemented for regulatory purposes. It also confirms that prior period adjustments are limited to error corrections and prior interim period adjustments of the current fiscal year, and that previously unaccrued estimated refunds are charged to income when the accrual criteria are first met.

This subtopic governs how income tax expense (or benefit) is computed and presented in interim financial statements. The core rule is a hybrid model: tax on "ordinary income (or loss)" is measured by applying a best-estimate annual effective tax rate to year-to-date ordinary income, while items excluded from that rate — significant unusual or infrequently occurring items, discontinued operations, changes in tax law or rates on deferred taxes, changes in beginning-of-year valuation allowances, and certain share-based payment tax effects — are computed individually and recognized discretely in the interim period in which they occur (740-270-25-2; 740-270-30-11 through 30-13). Recognition of interim tax benefits from losses is limited to amounts expected to be realized during the year or recognizable as a deferred tax asset at year-end (740-270-25-9).

ASC 310-20 governs how lenders and loan purchasers account for nonrefundable fees, origination costs, commitment fees, syndication fees, credit card fees, and purchase premiums/discounts. The core rule is that loan origination fees and direct loan origination costs are deferred, offset, and recognized only as a net amount over the life of the loan as a yield (interest income) adjustment using the interest method; all other lending-related costs (advertising, solicitation, servicing, unsuccessful efforts, occupancy, equipment) are expensed as incurred. It also prescribes when a refinancing/restructuring is treated as a new loan versus a carryover of unamortized net fees and costs.

ASC 310-905 provides industry-specific guidance on receivables (loans, notes, and others) for agricultural entities, with dedicated Cooperatives—Patrons Subsections for patrons of agricultural cooperatives. Its core rules govern when a patron recognizes a patronage refund receivable and how a patron's unbilled receivable from products delivered to a cooperative is subsequently measured. Scope follows ASC 905-10-15.

This Subtopic tells federal government contractors how to recognize, present, and disclose receivables arising from government contracts. Its core rules: unbilled costs and fees under cost-plus-fixed-fee contracts are receivables or contract assets (not advances or inventory); progress payments are applied first against unbilled receivables (or accounted for as financing if the government obtains only a secured interest); and a terminated contract converts contract inventory into a termination claim receivable classified as a current asset.

ASC 310-920 formerly provided industry-specific guidance on receivables arising in broadcasting arrangements. Both of its substantive paragraphs — the overview/background paragraph (310-920-05-1) and the recognition paragraph (310-920-25-1) — were superseded by ASU No. 2014-09 (Revenue from Contracts with Customers). As a result, the subtopic contains no remaining operative guidance.

ASC 310-940 is a "link" subtopic: it contains no substantive accounting guidance of its own. It simply directs readers looking for guidance on receivables of brokers and dealers in securities to other locations in the Codification — specifically, Subtopic 940-325 for receivables arising as part of a financial-restructuring transaction (310-940-05-2).

ASC 310-944 tells insurance entities how to account for receivables: mortgage loans held as investments, reinsurance recoverables, and premium receivables on financial guarantee insurance contracts. Mortgage loans are recognized as assets at principal (or cost if bought at a discount/premium) and carried at amortized cost with an allowance for expected credit losses under Topic 326-20; reinsurance recoverables must be reported gross as assets (no netting against related liabilities absent a legal right of setoff). For financial guarantee contracts with installment premiums, the premium receivable is measured at the present value of premiums expected to be collected using a risk-free rate at inception, with the discount accreted to earnings.

ASC 310-954 governs how health care entities recognize, measure, present, and disclose receivables, principally amounts due from patients and third-party payors (Blue Cross, Medicare, Medicaid, HMOs, workers' compensation). Contractual adjustments and discounts are treated as variable consideration under ASC 606 (606-10-32-5 through 32-14 and 32-42 through 32-45), while an allowance for credit losses is measured under Topic 326. Charity care is never recognized as a receivable, and amounts due from third-party payors for retroactive adjustments such as final settlements or appeals must be reported separately.

This Subtopic governs when a defined benefit pension plan recognizes contributions receivable in its own financial statements. Amounts due at the reporting date from employers, participants, or other funding sources (separately identified) are recognized when supported by legal or contractual requirements or a formal commitment, net of an allowance for estimated uncollectible amounts. Unfunded prior service costs and any excess of the actuarial present value of accumulated plan benefits over net assets available for benefits are not plan receivables.

This Subtopic governs receivables in the financial statements of defined contribution pension plans — principally employer/participant contributions receivable and participant loans. Contributions receivable are recognized when supported by a formal commitment or legal/contractual requirement, are shown net of an allowance for estimated uncollectible amounts, and are separately identified. Participant loans are measured at unpaid principal plus accrued but unpaid interest and are reported as notes receivable from participants rather than as investments at fair value.

This Subtopic governs receivables of health and welfare benefit plans, principally contributions receivable from employers and amounts due from insurance entities. Employer contributions are recognized only when supported by a formal commitment (e.g., a governing-body resolution, an established pattern of post-year-end funding, a tax deduction, or the employer's own recorded payable), and contributions receivable must carry an allowance for estimated uncollectible amounts. Deposits with insurance entities or service providers and premium stabilization reserves remain plan assets until applied against premiums or claims, and experience-rating refunds are recorded when probable and reasonably estimable.

This Subtopic governs how an investment company (a fund) accounts for its portfolio of debt and equity securities, with special attention to high-yield debt securities such as zero-coupon, step, and payment-in-kind (PIK) bonds. Core rules: record purchases and sales on trade date, initially measure at transaction price including commissions, subsequently measure at fair value, recognize interest on step and PIK bonds using the interest method (with reserves when income is not expected to be realized), and record dividends on the ex-dividend date. It also prescribes the treatment of capital infusions, workout expenditures, and writeoffs of purchased versus accrued interest.

ASC 323-10 governs the equity method of accounting for investments in common stock (and in-substance common stock) of corporate joint ventures and other investees over which the investor can exercise significant influence but does not control. An investment of 20% or more of the voting stock creates a rebuttable presumption of significant influence (323-10-15-8); under the method, the investment is initially recorded at cost (323-10-30-2) and then adjusted for the investor's share of investee earnings/losses, dividends, OCI, intra-entity profit eliminations, and basis-difference amortization, and reported as a single line on both the balance sheet and income statement (323-10-45-1). Losses are recognized only down to zero (plus other investments and committed support), and other-than-temporary declines in value must be recognized (323-10-35-32).

ASC 323-30 extends equity method concepts to investments in unincorporated entities—partnerships, unincorporated joint ventures (undivided interests in ventures), and limited liability companies—that are outside the literal scope of Subtopic 323-10 (which addresses common stock of corporations). Investors generally apply the equity method by analogy when they can exercise significant influence over the investee (323-30-25-1), including the intra-entity profit elimination rules of 323-10-35-7. An LLC that maintains a specific ownership account for each investor is treated like a limited partnership interest in deciding between Topic 321 and the equity method (323-30-35-3).

ASC 323-970 (also cited as 970-323) governs how an investor accounts for interests in real estate ventures—corporate joint ventures, general partnerships, limited partnerships, and undivided interests. The general rule is one-line equity method presentation for noncontrolling investors (pro rata consolidation is prohibited except under 810-10-45-14), consolidation principles if the investor controls the venture, and Topic 321 if the interest is so minor that the investor has virtually no influence. It also prescribes initial measurement of contributed cash or real estate (via Subtopic 610-20 / 360-10-40-3A through 40-3C), elimination of intra-entity profit, and rules for recognizing losses in excess of the investment.

This Subtopic tells a REIT how to account for its investment in a "service corporation" — an affiliated entity, typically holding non-qualifying REIT activities, whose voting stock is largely held by others. Even without a voting majority, listed factors (activities performed primarily for the REIT, economic benefits flowing to the REIT, common board members/officers, nominal outside equity, management influence, access to financial information) indicate the REIT has at least significant influence, requiring the equity method or consolidation based on facts and circumstances (323-974-25-1). Service corporations that are variable interest entities are excluded and are instead evaluated under the VIE Subsections of Section 810-10.

ASC 325-10 is the Overall subtopic of Investments—Other, the residual investments Topic in the Codification. It mainly serves as a roadmap: it explains that investment accounting is split across Topics 320 (debt securities), 321 (equity securities), 323 (equity method and joint ventures), and 325 (other investments), and it lists the Subtopics within Topic 325 — Overall, Investments in Insurance Contracts (325-30), and Beneficial Interests in Securitized Financial Assets (325-40). It contains no substantive recognition or measurement guidance of its own.

This Subtopic gives depository and lending institutions the recognition and measurement rules for four narrow items: Federal Home Loan Bank (FHLB) and Federal Reserve Bank stock, National Credit Union Share Insurance Fund (NCUSIF) deposits and premiums, regular-way securities trades, and exchange memberships. FHLB/Federal Reserve Bank stock is a restricted investment security carried at cost (no readily determinable fair value; redeemable only at $100 par) and tested for impairment based on ultimate recoverability of par, not temporary declines. NCUSIF deposits are assets only so long as they are fully refundable, and regular-way purchases and sales are recorded on the trade date.

This Subtopic gives government contractors narrow guidance on inventory affected by contracts terminated for the convenience of the government, plus disclosure of the accounting policy for costs included in contract inventory. If inventory whose costs are in the termination claim is later reacquired by the contractor, the reacquisition value is recorded as a purchase; in "no-cost settlements," where the contractor waives its claim, no sale transaction arises and retained inventory is accounted for under ordinary inventory methods rather than as a purchase.

This subtopic governs how mining entities account for stripping costs — the costs of removing overburden and waste materials to access ore — incurred during the production phase of a mine. The core rule is that post-production-phase stripping costs are variable production costs that must be capitalized into the cost of the inventory (ore) extracted in the same period the stripping costs are incurred. Stripping costs incurred before the production phase (i.e., during development) are outside the scope of this subtopic.

This subtopic governs how a software vendor accounts for the costs of producing physical copies of software to be sold, leased, or otherwise marketed. Costs of duplicating the software, documentation, and training materials from the product masters and of physically packaging the product for distribution are capitalized as inventory on a unit-specific basis (330-985-25-1). Those capitalized costs are charged to cost of sales when revenue from the sale of the related units is recognized (330-985-40-1).

ASC 340-10 is the Overall subtopic for Other Assets and Deferred Costs, applicable to all entities. Its substantive guidance is limited to (1) describing prepaid expenses — amounts paid in advance (insurance, interest, rents, taxes, unused royalties, prepaid advertising service, operating supplies) that are used up within the normal operating cycle and classified as current assets — and (2) the recognition rules for preproduction design and development costs incurred under long-term supply arrangements. Costs deferred under other regimes (loan origination costs, internal-use software, environmental costs, broker-dealer and industry costs) are addressed by other Topics cross-referenced in Section 60.

ASC 340-20 formerly governed capitalized advertising costs (including direct-response advertising) — when such costs could be recorded as assets, how they were measured, amortized, tested for realizability, presented, and disclosed. Every paragraph in the subtopic (Sections 05, 15, 25, 30, 35, 45, 50, 55, and 60) has been superseded by Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance; advertising costs are now expensed as incurred (or the first time the advertising takes place) under ASC 720-35, and contract-related costs are addressed by ASC 340-40.

ASC 340-30 tells you how to apply the deposit method of accounting to insurance and reinsurance contracts that fail to transfer insurance risk (which requires transfer of both timing risk and underwriting risk). At inception a deposit asset or liability is recognized at consideration paid or received less explicitly identified premiums or fees retained (340-30-25-1; 340-30-30-1). Subsequent measurement depends on which of four risk categories the contract falls into: effective-yield/interest-method accretion for timing-risk-only or no-risk contracts, unexpired-coverage plus present value of expected recoveries for underwriting-risk-only contracts, and the open-year method for indeterminate-risk contracts.

ASC 340-40 governs capitalization, amortization, and impairment of two kinds of contract costs for contracts within the scope of Topic 606: incremental costs of obtaining a contract and costs to fulfill a contract that are not within the scope of another Topic. Incremental costs of obtaining a contract (e.g., sales commissions) are capitalized if the entity expects to recover them (340-40-25-1), while fulfillment costs are capitalized only if they relate directly to an identifiable (or specifically anticipated) contract, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered (340-40-25-5). Capitalized amounts are amortized consistently with transfer of the related goods or services and tested for impairment, with no reversal of impairment losses.

ASC 340-915 formerly provided guidance on other assets and deferred costs for development stage entities, but every paragraph in the subtopic (Sections 05, 15, 25, and 35) was superseded by Accounting Standards Update No. 2014-10. As a result, there is no longer any incremental GAAP for deferred costs that is specific to development stage entities; such entities apply the same recognition and measurement guidance as any other reporting entity.

ASC 340-928 governs when a music entity may capitalize advance royalties paid to artists, the cost of record masters, and minimum guarantees paid in advance by licensees. Capitalization hinges on recoverability: an advance royalty or the record company's share of record master cost is an asset only if the artist's past performance and current popularity provide a sound basis for estimating recovery from future royalties or sales. Capitalized amounts are charged to expense as royalties are earned or amortized over the recorded performance's life in relation to expected net revenue, with immediate write-off of nonrecoverable portions.

ASC 340-940 governs two broker-dealer asset/deferred-cost items: exchange memberships and deferred underwriting expenses. Memberships are classified based on the rights conveyed — as an intangible asset (trading right only), an ownership interest in the exchange (cost less impairment), or a contributed interest (fair value with an equal, offsetting subordinated liability). Underwriting expenses incurred before securities are issued are deferred and recognized when the related underwriting revenues are recorded, or written off if the deal does not close.

ASC 340-944 governs how insurance entities account for and report certain deferred costs and prepaid expenses, organized into a General Subsection and a Reinsurance Contracts Subsection. Its operative rule is that amounts an insurer pays a reinsurer for the unexpired portion of reinsured contracts — prepaid reinsurance premiums — must be reported separately as assets (340-944-25-1), rather than netted against related liabilities.

This Subtopic governs the accounting for the cost of issuing certain Government National Mortgage Association (GNMA) securities by mortgage banking entities. Issuers electing the internal reserve method must capitalize the one month's interest cost required to be paid to a trustee (340-948-25-1), subject to a ceiling equal to the present value of net future servicing income (340-948-30-1). The capitalized amount is then amortized in proportion to, and over the period of, estimated net servicing income (340-948-35-1).

ASC 340-952 formerly contained the franchisor-specific guidance on deferred costs (for example, direct and indirect costs of franchise sales). Every paragraph in the subtopic — Sections 05, 15, and 25 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Franchisors now account for costs of obtaining and fulfilling franchise contracts under ASC 340-40 and recognize franchise revenue under ASC 606 (including the industry guidance in ASC 952-606).

This Subtopic covers "other assets and deferred costs" of health care entities — prepaid expenses, deposits, and deferred expenses, including amounts paid to physicians for future services such as administering a hospital department or providing community services that further the entity's mission (340-954-05-2). If such prepaid costs are deferred, they must be amortized over the period benefited (340-954-35-2), and all such items are classified as current or noncurrent as appropriate (340-954-45-1). The former recognition guidance (Sections 25 and part of 35) was superseded by ASU 2014-09, so contract cost questions now fall under ASC 340-40 and revenue under ASC 606.

This Subtopic governs deferred cost recognition for real estate time-sharing activities. The default rule is that all costs incurred to sell time-sharing intervals are expensed as incurred unless they qualify for capitalization as incremental costs of obtaining a contract under 340-40-25-1 through 25-4. Seller financing costs (e.g., loan origination costs) follow Subtopic 310-20, and incremental costs to rent units during holding periods are deferred and then expensed (or netted against inventory) when the rental occurs.

This subtopic governs when a rate-regulated entity may capitalize incurred costs as regulatory assets (deferred costs) and, in particular, how to account for phase-in plans — rate-making arrangements that defer part of the rate increase caused by placing a newly completed plant in service in order to avoid a "rate spike." A cost is capitalized only if it is probable that future revenue at least equal to the cost will result from including it in allowable costs and that revenue is intended to recover the previously incurred cost rather than fund similar future costs (980-340-25-1). Amounts deferred under a phase-in plan may be capitalized only for plants completed or substantially constructed before January 1, 1988, and only if the plan meets four strict criteria (980-340-25-3).

ASC 350-40 governs the accounting for costs of computer software acquired, developed, or modified solely for an entity's internal needs (with no substantive plan to market it externally), and for implementation costs of hosting arrangements that are service contracts. Under current guidance, preliminary project stage costs and training/data conversion costs are expensed, while internal and external direct costs incurred during the application development stage are capitalized (350-40-25-1 through 25-6) once management authorizes and commits funding and completion is probable (350-40-25-12). Capitalized amounts are amortized straight-line beginning when the software is ready for its intended use (350-40-35-4 through 35-6) and tested for impairment under Section 360-10-35.

ASC 350-50 tells you which website development costs get capitalized and which get expensed, organized by five stages: planning, application and infrastructure development, graphics development, content development, and operating. Planning-stage costs, content input costs, data conversion costs, and operating-stage costs are expensed as incurred; website software (including graphics, which are treated as a component of software) is capitalized under ASC 350-40 for internal-use software or ASC 985-20 if a plan exists to market the software externally, and domain registration costs are capitalized under ASC 350-30. The entire Subtopic is superseded by ASU 2025-06 effective for fiscal years beginning after December 16, 2027 (transition guidance in 350-40-65-4).

ASC 350-908 tells airlines how to account for purchased take-off and landing slots. Because the Department of Transportation permits airlines to sell or trade slots, a purchased slot is a salable right recorded as an intangible asset under Topic 350 (350-908-25-1). Slots acquired by exchanging slots with another airline are nonmonetary assets measured under Topic 845 and then accounted for under Topic 350 (350-908-35-2).

This Subtopic tells a broadcaster (licensee) how to account for rights acquired under a license agreement for program material: when to recognize the asset and related liability, at what amounts to record them, and how to amortize and test them for impairment. The core rule is that the license is treated as a purchase of a right or group of rights, recognized when the license period begins and three cost/acceptance/availability conditions are met, then amortized based on estimated future showings and carried at the lower of unamortized cost or fair value. It also governs accounting for terminated network affiliation agreements.

This Subtopic governs intangible-type costs incurred by cable television systems, principally programming and other system costs during the "prematurity period" and franchise application costs. During the prematurity period, fixed system costs incurred in anticipation of a fully operating system are split between current operations (expensed) and future operations (capitalized) using the subscriber-based fraction in 922-360-35-3, and amortization is computed using that same fraction. Costs of successful franchise applications are capitalized and amortized under Topic 350, while unsuccessful or abandoned franchise costs are expensed.

ASC 350-950 governs accounting for title plants — the indexed historical records of land ownership, encumbrances, maps, and prior title reports used by title insurers, abstract entities, and title agents. Costs directly identifiable with constructing a title plant (and purchased title plants, recorded at cost/fair value of consideration given) are capitalized, while maintenance and title search costs are expensed as incurred. Capitalized title plant is not amortized or depreciated; it is carried indefinitely unless impaired under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10.

ASC 350-985 is a link-only subtopic: it contains no substantive rules of its own but points readers to Subtopic 985-20 for the capitalization of computer software costs as intangible assets. Specifically, it directs users to 985-20-25-3 (costs of producing product masters incurred after technological feasibility is established) and 985-20-25-10 (purchased software having an alternative future use).

ASC 360-908 governs property, plant, and equipment accounting unique to airlines: unit versus group depreciation, rotable parts, airframe modifications, and airframe/engine overhauls. Its core rules are that modifications enhancing an aircraft's usefulness must be capitalized and depreciated over the shorter of the aircraft's or the modification's useful life, and that overhauls must be accounted for under one of three permitted methods—direct expensing, built-in overhaul, or deferral—with the accrue-in-advance (accrual) method prohibited.

This Subtopic tells common interest realty associations (CIRAs) — cooperatives, condominium associations, and homeowners associations — when to recognize common real and personal property as assets, how to measure it, and what to disclose. Cooperatives recognize all common real property because they hold title and can dispose of it and keep the proceeds; other CIRAs generally do not recognize real property directly associated with the units, and recognize property not directly associated with the units only if they have title or other evidence of ownership plus disposal discretion or significant cash-flow generation. Recognized property is measured at cost (or fair value if acquired in a nonmonetary transaction such as a developer transfer) and depreciated over estimated useful lives.

ASC 405-10 is the Overall subtopic of the Liabilities Topic; it functions as a navigational "roadmap" rather than a source of substantive measurement rules. It lists the other Subtopics within Topic 405 (Extinguishments of Liabilities, Insurance-Related Assessments, Joint and Several Liability Arrangements, Supplier Finance Programs) and points to the Topics elsewhere in the Codification that directly address recognition of particular liabilities.

ASC 405-30 governs when and how entities—insurers and self-insurers alike—accrue liabilities for statutory or regulatory insurance-related assessments such as state guaranty-fund assessments, insurance department administrative assessments, and workers' compensation second-injury fund assessments. A liability is recognized only when an assessment is probable, the obligating event has occurred by the balance sheet date, and the amount is reasonably estimable (405-30-25-1); the obligating event differs by assessment mechanism (retrospective vs. prospective vs. prefunded premium-based, and loss-based). Related recoveries via premium tax offsets or policy surcharges are recognized as assets when probable (405-30-25-8), but recoveries expected only through future premium rate structures are not (405-30-25-10).

ASC 405-40 governs how an entity recognizes, measures, and discloses obligations arising from joint and several liability arrangements when the total amount of the obligation is fixed at the reporting date (e.g., debt with co-obligors, settled litigation shared with other defendants). The core measurement rule is that the reporting entity records the amount it agreed to pay under its arrangement with co-obligors plus any additional amount it expects to pay on behalf of those co-obligors. Scope excludes obligations already covered by Topics 410, 450, 460, 715, and 740.

ASC 405-905 governs liabilities of agricultural entities, with Cooperatives Subsections addressing how agricultural cooperatives account for product deliveries from patrons. When a pooling marketing cooperative's board assigns amounts to unprocessed products received from patrons, those assigned amounts must approximate estimated net realizable value and are credited to amounts due patrons, creating a short-term liability. Excess of pool revenues over assigned amounts and operating costs is paid or allocated to patrons pro rata, and retained allocated equities may be mandatorily redeemable instruments requiring liability classification under Subtopic 480-10.

This Subtopic governs how broadcasters account for the liabilities they incur under license agreements for program material. A broadcaster recognizes both an asset (the program rights) and a liability when the license period begins and the conditions in 920-350-25-2 are met, measuring both at either the fair value or the gross amount of the liability, with any discount accreted as interest under Topic 835. The liability is then split between current and noncurrent on the balance sheet according to the payment terms.

This Subtopic governs two casino-specific liabilities: outstanding gaming chips and jackpot obligations. A casino recognizes a chip liability equal to the difference between chips placed in service and chips in its own custody/control, adjusted periodically for chips that will never be redeemed. Jackpot liabilities are accrued only when the casino has an obligation to pay — base jackpots that can be avoided (e.g., by pulling the machine) are not accrued, while the customer-funded incremental portion of a progressive jackpot is accrued as play occurs.

ASC 405-926 governs how film production and distribution entities accrue participation costs — amounts owed to third parties such as actors and writers — and costs of insignificant post-release changes to a film. Participation costs are accrued using the individual-film-forecast-computation method (current period actual revenue over estimated remaining unrecognized ultimate revenue at the beginning of the fiscal year), but only when it is probable an entity will sacrifice assets to settle the obligation, and never for less than amounts currently payable. If the recorded participation liability exceeds estimated unpaid ultimate participation costs, the excess reduces unamortized film costs first, then goes to income.

This subtopic tells a music licensee how to account for fees owed under a license agreement with the owner/licensor of a record master or music copyright that grants the right to sell or distribute records or music for a stipulated fee. Its single rule: license fees that are not fixed in amount before the agreement expires must be estimated and accrued, license by license.

This Subtopic governs how depository and lending institutions recognize, measure, present, and disclose deposit liabilities and short-sale obligations. Deposit liabilities are recognized when deposits are received (not when funds are collected), with deposit float recorded as both an asset and a liability, and credit unions must present member share/savings accounts unequivocally as liabilities. Short sales ("securities sold, not yet purchased") are reported as liabilities measured at fair value through income, with interest on short positions accrued as interest expense.

ASC 405-944 tells insurance entities where liability accounting guidance lives and adds one specific rule for reinsurance contracts. Liabilities for claims costs and future policyholder benefits are in Subtopic 944-40, premium deficiencies in 944-60, and policyholder dividends in 944-50. The substantive rule here: a ceding entity that agrees to service the reinsured contracts without reasonable compensation must accrue a liability for estimated excess future servicing costs (405-944-25-1).

This Subtopic governs recognition and disclosure of liabilities unique to health care entities, principally accrued health care costs under capitation and other risk-bearing payor contracts. Providers that bear risk for referrals and outside services must accrue a liability for unpaid claims, including incurred but not reported (IBNR) claims, and must accrue health care costs as services are rendered, including services required beyond the premium period and post-termination costs. It also clarifies that entering into a Medicare fraud settlement that requires five years of future compliance audits is not itself the obligating event, so no liability is recognized for those future audits.

This Subtopic addresses how a not-for-profit entity accounts for its own liabilities, principally unconditional promises to give (grants/pledges the NFP makes to others). It fixes the discount rate used in a present-value measurement at initial recognition (no revision unless the fair value option under 825-10 is elected), requires discount amortization to be reported in the same functional expense classification as the original promise, and requires a maturity schedule disclosure. It also cross-references guidance for donated assets transferred to intermediaries/agents and for refundable membership interests of social and country clubs.

This Subtopic explains when a regulator's rate actions create liabilities (regulatory liabilities) for an entity with regulated operations. Three mechanisms create liabilities: required refunds to customers that meet the loss-contingency accrual criteria, current rates collected to recover costs expected to be incurred in the future for which the entity remains accountable, and gains or other reductions of net allowable costs that the regulator requires be amortized to customers over future periods. A regulator's actions can eliminate a liability only if the regulator's actions imposed it in the first place.

ASC 410-10 is a purely navigational "Overall" subtopic within the Asset Retirement and Environmental Obligations Topic. Its sole purpose is to explain the difference between Subtopic 410-20 (asset retirement obligations, the associated asset retirement cost, and environmental remediation liabilities arising from normal operation of a long-lived asset) and Subtopic 410-30 (environmental remediation liabilities generally). It contains no independent recognition or measurement rules.

ASC 410-20 governs legal obligations associated with the retirement of tangible long-lived assets that arise from acquisition, construction, development, and/or normal operation of the asset, including environmental remediation resulting from normal operations. An entity recognizes the fair value of the ARO liability in the period incurred if fair value can be reasonably estimated, and simultaneously capitalizes an equal asset retirement cost in the carrying amount of the related long-lived asset (410-20-25-4; 410-20-25-5). Fair value is normally measured with an expected present value technique discounted at a credit-adjusted risk-free rate, with later changes recognized as accretion expense and as revisions to estimated cash flows (410-20-30-1; 410-20-35-3).

ASC 410-30 governs accounting for environmental remediation liabilities — obligations to clean up pollution arising from past acts under Superfund (CERCLA), RCRA corrective-action provisions, or analogous state/non-U.S. laws. Applied site by site, it uses the loss contingency model of ASC 450-20: accrue when it is probable a liability has been incurred (litigation/claim asserted or probably will be, and an unfavorable outcome probable) and the amount (or a minimum in a range) is reasonably estimable, measured as the entity's allocable share of the joint and several liability plus amounts other PRPs won't pay. Remediation costs are generally expensed as a component of operating income, with narrow capitalization exceptions and separate recognition of probable third-party recoveries as assets.

ASC 410-980 explains how rate-regulated entities apply the asset retirement obligation (ARO) model of Subtopic 410-20. Because rate regulation may allow recovery of retirement costs on a timing pattern different from GAAP ARO cost recognition, a regulated entity that meets the requirements of Topic 980 recognizes a regulatory asset or regulatory liability for that timing difference. Capitalized asset retirement cost is included in long-lived asset impairment testing on the same basis as for any other entity.

ASC 420-10 governs when and how an entity recognizes and measures liabilities for costs of exit or disposal activities (restructurings), including one-time involuntary employee termination benefits, costs to terminate non-lease contracts, and other associated costs such as facility closures and employee relocation. The core rule is that a liability is recognized only when it is incurred — i.e., when a present obligation exists — and measured initially at fair value; a mere commitment to an exit or disposal plan is not the requisite past event (420-10-25-1 through 25-2, 420-10-30-1). Ongoing termination-benefit arrangements, pension/OPEB special termination benefits, deferred compensation, stock compensation, and asset retirement obligations are excluded and handled under other Topics (420-10-15-5 through 15-6).

ASC 430-10 is now only a signpost: it contains no substantive recognition or measurement rules of its own. Its single remaining paragraph (430-10-05-1) directs readers to Topic 606 for guidance on deferred revenue and contract liabilities. The former recognition and relationship paragraphs (430-10-25-1 and 430-10-60-1) were superseded by ASU 2014-09.

ASC 430-928 was the deferred revenue guidance for the music industry (Entertainment—Music), addressing when amounts received (e.g., minimum guarantees or advances under licensing arrangements) had to be deferred rather than recognized. Every paragraph in the subtopic — 430-928-05-1, 430-928-15-1, and 430-928-25-1 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). No substantive guidance remains; music-industry deferred revenue questions are now answered under ASC 606 and the music-specific guidance in ASC 928-606.

ASC 430-954 formerly provided the deferred revenue guidance for health care entities, principally continuing care retirement communities (CCRCs) accounting for nonrefundable advance (entrance) fees and refundable advance fees. Every paragraph in the subtopic has been superseded by ASU 2014-09 (Revenue from Contracts with Customers), and the transition paragraph 430-954-65-1 was superseded on 06/26/2015 following ASU 2012-01. The subtopic therefore contains no operative guidance; deferred revenue for health care entities is now addressed under ASC 606 and ASC 954-405/954-606.

ASC 430-972 was the deferred revenue guidance for common interest realty associations (CIRAs) — e.g., condominium and homeowners' associations — addressing when assessments and similar member charges collected in advance had to be deferred rather than recognized. All of its substantive paragraphs (05-1, 15-1, 25-1) were superseded by ASU 2014-09, so the subtopic is now an empty shell. CIRA revenue and deferral questions are instead resolved under ASC 606 and the related contract liability guidance.

ASC 440-10 is the general "Commitments" subtopic: it requires disclosure of certain contractual commitments (unused letters of credit, pledged assets, cumulative preferred dividends in arrears, plant acquisition commitments, obligations to reduce debt, maintain working capital, or restrict dividends) that are not otherwise more explicitly addressed elsewhere in the Codification. Its Unconditional Purchase Obligations Subsections require disclosure of off-balance-sheet take-or-pay and throughput contracts that are noncancelable, were negotiated as part of arranging financing for the supplier's facility, and have a remaining term over one year. The Topic is largely a disclosure standard—recognition of such obligations is governed by other Topics (842, 815, 330).

This Subtopic governs disclosure by broadcasters of program license agreements that have been signed (executed) but that do not yet qualify for recognition as an asset and liability on the balance sheet. The single rule is that such executory license commitments must be disclosed in the notes, even though they are not recorded, because the recognition conditions in 920-350-25-2 have not been met.

This subtopic governs the commitment of a continuing care retirement community (CCRC) to provide future services and the use of facilities to current residents under continuing-care contracts. The CCRC must recalculate that obligation annually and, if advance fees plus periodic fees are insufficient to cover the cost of future services and facilities, record a liability measured actuarially at the present value of future net cash flows, less deferred revenue (contract liability), plus depreciation of facilities to be charged to those contracts and any unamortized incremental costs of obtaining a contract. Extensive note disclosure about the contracts, liability, discount rate, escrow requirements, and refund policy is required.

ASC 450-10 is the Overall subtopic of the Contingencies Topic; it sets the pervasive scope, definitions, and cross-references for gain and loss contingencies addressed in 450-20 and 450-30. A contingency exists when an existing condition, situation, or set of circumstances involves uncertainty that will be resolved by a future event confirming the acquisition of an asset, reduction of a liability, loss or impairment of an asset, or incurrence of a liability (450-10-05-5). Critically, the mere use of an estimate does not create a contingency (450-10-05-6), and the Topic does not apply to recognition and initial measurement of contingency-related assets and liabilities measured at fair value in a business combination, NFP acquisition, or joint venture formation (450-10-15-2A).

ASC 450-20 governs when a loss contingency must be accrued as a charge to income and when it must instead be disclosed. A loss is accrued only if, based on information available before the financial statements are issued, it is probable that an asset was impaired or a liability incurred at the balance sheet date and the amount of loss is reasonably estimable (450-20-25-2). If the estimate is a range, the best estimate in the range is accrued, or the minimum of the range if no amount is better than any other (450-20-30-1); if accrual criteria are not met but a loss is at least reasonably possible, disclosure of the nature of the contingency and an estimate of possible loss (or a statement that none can be made) is required (450-20-50-3 through 50-4).

ASC 450-30 governs gain contingencies — existing conditions or situations involving uncertainty that may result in a future gain to the entity. The core rule is asymmetric to loss contingencies: a gain contingency usually should not be reflected in the financial statements, because doing so might recognize revenue before it is realized (450-30-25-1). Instead, adequate disclosure is required, worded carefully so as not to imply that realization is more likely than it is (450-30-50-1).

ASC 450-912 is the contingencies guidance specific to contractors dealing with the U.S. federal government. It addresses contingencies arising when a contract is terminated for the convenience of the government and contingencies related to subcontractor claims under those terminated contracts. The substantive recognition guidance is largely cross-referenced elsewhere—subcontractor claim contingencies are addressed in paragraph 912-20-25-3, and the former recognition paragraph was superseded by ASU 2014-09.

This subtopic applies Topic 450 loss-contingency principles to health care entities, principally medical malpractice claims, prepaid health care contract losses, and preferred provider "stop-loss" guarantees. Malpractice liabilities must be accrued when the incidents giving rise to the claims occur — including losses from incidents probable of having occurred but not yet reported — based on best estimates of ultimate claim costs, and may not be presented net of anticipated insurance recoveries. Losses on prepaid health care contracts are recognized when it is probable that expected future health care and maintenance costs on a group of existing contracts will exceed anticipated future premiums and stop-loss recoveries.

This Subtopic applies the general loss contingency model of Topic 450 to not-for-profit entities. It identifies two NFP-specific triggers — noncompliance with donor-imposed restrictions on contributed assets and problems with (or absence of a determination letter for) tax-exempt status — that may require accrual of a loss contingency under Subtopic 450-20 and disclosure under Section 450-20-50.

This subtopic addresses loss contingencies for entities with regulated operations (rate-regulated utilities). Its core rule: when a regulator allows an entity to recover an amount for a contingency in rates even though the amount does not meet the accrual criteria of 450-20-25-2, and the regulator requires the entity to remain accountable for amounts collected but not yet spent for the intended purpose, the increased charges to customers give rise to a liability rather than income.

ASC 460-10 requires a guarantor to recognize a liability at the inception of a guarantee for the noncontingent "stand-ready" obligation it undertakes, generally measured at the fair value of the guarantee (with the premium received as a practical expedient), even if payment under the guarantee is not probable. It also imposes extensive disclosures about each guarantee (nature, term, triggering events, maximum potential undiscounted future payments, carrying amount, recourse and collateral) even when the likelihood of payment is remote. Separate Product Warranties Subsections apply ASC 450-20 loss-accrual conditions to warranty obligations and require a tabular rollforward of the aggregate product warranty liability.

This subtopic applies the general guarantee accounting model in Topic 460 to health care entities, following the scope of Subtopic 954-10. Its only substantive content points to Topic 460's guidance on minimum revenue guarantees, illustrated by a health care entity's guarantee of minimum revenue to a recruited physician.

ASC 470-30 governs how a *borrower* accounts for a participating mortgage loan — a mortgage in which the lender is entitled to share in appreciation in the fair value of the mortgaged real estate project, in its results of operations, or both. If the lender participates in fair value appreciation, the borrower recognizes a participation liability at the fair value of the participation feature at loan inception with an offsetting debt discount, remeasures the liability to current fair value each reporting period (adjusting the discount), and amortizes the discount to interest expense using the interest method. Participations in results of operations are charged to interest expense in the period incurred with a credit to the participation liability.

ASC 470-40 governs product financing arrangements — transactions in which a "sponsor" arranges for another entity to buy and hold inventory on its behalf (or controls the disposition of such product) with a related commitment to buy it back at specified prices covering the other entity's financing and holding costs. Because the sponsor is in substance the owner of the product, the arrangement is accounted for as a borrowing rather than a sale: the sponsor records the inventory as an asset and a corresponding liability when the other entity buys the product (470-40-25-1 through 25-2). After ASU 2014-09, sale-and-repurchase legs are handled under Topic 606, leaving this Subtopic focused on purchases made by another entity on the sponsor's behalf.

This Subtopic governs how oil and gas entities account for certain "conveyance" transactions that are, in substance, borrowings repayable in cash or its equivalent. Under 470-932-25-1, such arrangements must be recorded as a payable by the operator receiving the funds and a receivable by the party advancing the funds, rather than as a sale or conveyance of mineral interests.

This Subtopic gives health care entity-specific debt guidance, principally for tax-exempt bond financings. Bonds issued by a financing authority for a health care entity's benefit are recorded as a liability (or lease liability) only if the entity is responsible for repayment; otherwise the proceeds are reported as contributions from the sponsoring entity. It also addresses arbitrage rebate liabilities owed to the U.S. Treasury and the accounting for crossover refundings.

This subtopic addresses how a not-for-profit entity accounts for debt, in particular conduit financing obtained through state and local financing authorities. The core rule is that because the NFP is responsible for repaying tax-exempt bonds or other obligations issued on its behalf, the NFP recognizes that financing as a liability on its statement of financial position (470-958-25-1). Scope follows the NFP Overall Subtopic scope in Section 958-10-15.

This subtopic tells a real estate developer when it must record a liability for infrastructure debt issued by a municipality (special assessments) or by a tax increment financing (TIF) entity. The core rule is a presumption of liability recognition when the assessment levied on each individual property owner is a fixed or determinable amount for a fixed or determinable period (470-970-25-1); if the assessment is not fixed or determinable, no obligation is recorded, but credit support features (shortfall make-up, pledged assets, letters of credit) must be evaluated as contingencies under Topic 450 and possibly as guarantees under Topic 460.

ASC 505-20 governs how corporations (issuers) and shareholders (recipients) account for stock dividends and stock splits. The core rule is substance over form: a small issuance (generally less than 20–25% of previously outstanding shares) is a stock dividend requiring capitalization of retained earnings at the fair value of the shares issued, while a larger issuance that materially reduces the unit market price is a stock split in substance, requiring capitalization only to the extent of legal requirements. Recipients recognize no income; they simply reallocate the cost of previously held shares over the larger number of shares.

ASC 605-10 is the residual "Overall" subtopic of the legacy Revenue Recognition Topic; after ASU 2014-09 substantially all of its recognition guidance was superseded and replaced by Topic 606. What remains is a navigational shell: it states that no revenue recognition guidance is located in Topic 605, points to industry Subtopics that still govern revenue for contracts not with customers within Topic 606's scope, and directs users to the Subtopics containing guidance on provisions for losses on onerous contracts.

ASC 605-15 was the legacy guidance on revenue recognition for sales of product, most notably sales with a right of return (and related product financing and industry arrangements). Every paragraph in the subtopic — background, scope, recognition, and presentation — has been superseded by ASU 2014-09, which replaced it with the revenue model in ASC 606. As a result, the subtopic contains no operative guidance today and exists only as a historical marker.

After ASU 2014-09 gutted most of legacy Topic 605, ASC 605-20 survives only as the guidance on recognizing a loss (onerous-contract provision) on separately priced extended warranty and product maintenance contracts. A separately priced contract is one whose price is not included in the original price of the covered product. If expected costs of providing the services plus any capitalized incremental cost of obtaining the contract exceed the related unearned revenue (contract liability), a loss must be recognized.

ASC 605-25 was the legacy guidance on multiple-element (multiple-deliverable) revenue arrangements — how a vendor decided whether deliverables in one contract were separate units of accounting and how to allocate arrangement consideration among them. Every paragraph of the subtopic has been superseded, principally by ASU 2014-09 (Revenue from Contracts with Customers), with a few earlier paragraphs superseded by ASU 2009-13. There is therefore no operative guidance left in 605-25; entities apply ASC 606 (and ASC 340-40) instead.

ASC 605-28 formerly provided the "milestone method" of revenue recognition, an accounting policy election that allowed a vendor in a research-and-development arrangement to recognize contingent milestone consideration in its entirety in the period the milestone was achieved, if the milestone was deemed substantive. Every paragraph of this subtopic — scope, recognition, disclosure, and transition — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Milestone-type contingent consideration is now accounted for as variable consideration under ASC 606, subject to the constraint on variable consideration.

ASC 605-30 was the legacy revenue recognition guidance for "Rights to Use" arrangements (transfers of rights to use property rather than sales of the property itself). Its substantive paragraphs — 605-30-05-1 (overview) and 605-30-25-1 (recognition) — were superseded by ASU 2014-09, so the subtopic is now an empty shell. Arrangements formerly analyzed here are accounted for under ASC 606 (or ASC 842 if the arrangement conveys a lease).

After ASU 2014-09 superseded the old percentage-of-completion/completed-contract revenue guidance, ASC 605-35 survives only as the loss-provision guidance for construction-type and production-type contracts — contracts built to a customer's specifications. Its core rule is that when current estimates of the consideration expected (measured under Topic 606's transaction price principles, without the variable consideration constraint, and adjusted for customer credit risk) fall below estimated contract costs, the entire anticipated loss is recognized immediately in the period it becomes evident. The subtopic also specifies whether the loss is measured at the contract, combined-contract, or performance obligation level, and how the provision is presented in the income statement and balance sheet.

ASC 605-40 formerly addressed gains and losses arising from involuntary conversions of nonmonetary assets (such as property destroyed by fire or taken by condemnation) into monetary assets like insurance or condemnation proceeds. Every paragraph in the subtopic — scope, recognition, measurement, presentation, and relationships — was superseded by ASU 2014-09 (the revenue recognition standard), so the subtopic contains no remaining authoritative guidance. Entities now look to ASC 610-30 for gains and losses on involuntary conversions and to ASC 606 for revenue from contracts with customers.

ASC 605-905 provides industry-specific revenue recognition guidance for agricultural entities, with separate General and Cooperatives Subsections. It requires government income replacement and subsidy payments (deficiency, disaster, and other program payments) to be recorded as additional income when the amount of and right to receive the payment can be reasonably determined (605-905-25-1). For agricultural cooperatives it describes accepted methods of allocating overall, departmental, and functional losses among patrons, equities, and unallocated retained earnings, and distinguishes patronage from nonpatronage earnings (605-905-45-1). Most of the customer-revenue paragraphs were superseded by ASU 2014-09.

ASC 605-908 was the legacy industry-specific revenue recognition guidance for airlines (passenger ticket sales, frequent flyer/mileage programs, and related items). Every paragraph in Sections 05, 15, and 25 has been superseded by Accounting Standards Update No. 2014-09, so the subtopic contains no operative guidance. Airline revenue is now accounted for under ASC 606 (with airline-specific implementation guidance in ASC 606-10-55 and Subtopic 908-606).

ASC 605-912 was the legacy industry guidance on revenue recognition for contractors with the U.S. federal government, covering matters such as recognition of fees, contract terminations, renegotiation and price redetermination. Every paragraph in the subtopic (Sections 05, 15, 25, and 50) was superseded by ASU 2014-09, so the subtopic contains no remaining substantive guidance. Federal government contractors now apply ASC 606 (with related guidance in ASC 340-40) and, if applicable, the residual industry guidance in ASC 912.

ASC 605-915 formerly provided revenue recognition guidance specific to development stage entities (pre-revenue enterprises devoting efforts to establishing a new business). Every remaining paragraph in this subtopic (05-1, 15-1, 25-1) was superseded by ASU 2014-10, which eliminated the concept of a "development stage entity" from U.S. GAAP. As a result, there is no separate revenue guidance for such entities; they apply the same revenue recognition standards as any other entity.

ASC 605-920 formerly provided industry-specific revenue recognition guidance for broadcasters (entertainment industry), including recognition of barter and license/advertising revenue. All of its substantive paragraphs (605-920-05-1 and 605-920-25-1) were superseded by ASU 2014-09, so the subtopic is now an empty shell. Broadcaster revenue is instead accounted for under the general revenue model in ASC 606, with related industry guidance in ASC 926.

ASC 605-922 formerly contained industry-specific revenue recognition guidance for cable television entities (e.g., accounting for installation and hookup revenue and initial subscriber fees). Every paragraph in the subtopic — scope, background, and recognition — was superseded by ASU 2014-09, the revenue recognition standard. Cable television revenue is now accounted for under ASC 606, with related industry guidance in ASC 922 and contract cost guidance in ASC 340-40.

ASC 605-926 formerly contained the industry-specific revenue recognition guidance for entertainment—films (licensing of films to theaters, television, home video, and other markets). Every paragraph in the subtopic — scope, recognition, disclosure, and implementation guidance — was superseded by ASU 2014-09 (the revenue standard). Film revenue is now accounted for under ASC 606, with related industry guidance retained in ASC 926-605 and other 926 subtopics.

ASC 605-928 formerly provided industry-specific revenue recognition guidance for the music industry (licensors of music rights, record masters, and related fees). Every paragraph in the subtopic — scope, recognition, initial measurement, and relationships sections — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). Entities now account for music-industry revenue under ASC 606 and, for licensing arrangements, ASC 606-10-55-54 through 55-65, with residual industry guidance in ASC 928.

ASC 605-932 was the oil and gas industry-specific guidance under the legacy revenue recognition model (ASC 605), addressing revenue recognition for extractive activities such as gas balancing arrangements. Every substantive paragraph in the subtopic (05-1, 15-1, 25-2, and 50-1) was superseded by ASU 2014-09, so the subtopic now contains no operative guidance. Oil and gas revenue is instead accounted for under ASC 606, with industry-specific application guidance in ASC 932-606.

ASC 605-940 formerly provided industry-specific revenue recognition guidance for brokers and dealers in securities (e.g., trade-date recognition of commissions and related expenses, and measurement of such revenues). Every paragraph in the subtopic — Sections 05, 15, 25 and 30 — was superseded by ASU 2014-09, so the subtopic contains no remaining operative guidance. Broker-dealer revenue from contracts with customers is now accounted for under ASC 606, with related industry implementation guidance in ASC 940-605.

ASC 605-942 was the industry-specific revenue recognition guidance for depository and lending institutions (financial services) under the legacy ASC 605 model. Every paragraph in its Overview (05), Scope (15), and Recognition (25) sections was superseded by ASU 2014-09, so the subtopic contains no operative guidance. Revenue from contracts with customers for banks and lenders is now addressed under ASC 606 (with financial-instrument-related income remaining in ASC 310, 320, 815, 825, 942, etc.).

ASC 944-605 governs when and how insurance entities recognize premium revenue, split into short-duration, long-duration, reinsurance, and financial guarantee subsections. Short-duration premiums are earned over the contract (or risk) period in proportion to insurance protection provided; long-duration premiums are recognized when due from policyholders; universal life-type contract revenue is limited to amounts assessed against policyholders, with front-end fees deferred as unearned revenue. Reinsurance sections address prepaid reinsurance premiums, deferral and amortization of retroactive reinsurance gains, and the open year versus periodic method for foreign reinsurance.

ASC 605-946 was the legacy revenue recognition guidance for investment company activities (notably investment advisers' incentive/performance-based fee arrangements) under the superseded Topic 605 model. Every paragraph in Sections 05, 15, 25, and 50 was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic now contains no operative guidance; revenue from such contracts is accounted for under ASC 606 (with related costs under ASC 340-40).

ASC 605-948 formerly provided revenue recognition guidance for mortgage banking activities (notably loan servicing fees and related mortgage banking revenues) under the legacy ASC 605 model. Every paragraph in the subtopic — Sections 05, 15, and 25 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no operative guidance today; mortgage banking revenue is addressed under ASC 606 and the specialized guidance retained in ASC 948.

ASC 605-952 formerly contained the industry-specific revenue recognition guidance for franchisors (initial franchise fees, area franchise sales, continuing fees, and related disclosures). Every paragraph in the subtopic — Sections 05, 15, 25, 35, 40, 45, and 50 — has been superseded by ASU 2014-09 (Revenue from Contracts with Customers). Franchisors now apply ASC 606 (with ASC 340-40 for contract costs), including the franchisor-specific implementation guidance and, for private companies, the practical expedient added by ASU 2021-02.

After ASU 2014-09 superseded most of its content, ASC 605-954 retains only two pieces of health care recognition guidance: charity care and distributions from financially interrelated fundraising (recipient) entities. Charity care is never recognized as revenue, and distributions from a related fundraising foundation are generally a reduction of the health care entity's interest in that recipient entity rather than contribution revenue. Revenue from contracts with patients and other customers is now governed by Topic 606.

ASC 958-605 governs revenue recognition by not-for-profit entities, principally contributions received. Its core rules are (1) distinguishing contributions (no commensurate value to the resource provider) from exchange transactions accounted for under Topic 606, (2) recognizing unconditional contributions as revenue or gains at fair value when received while conditional contributions (a barrier plus a right of return/release) are deferred as refundable advances until the barrier is substantially met, and (3) classifying contributions as with or without donor restrictions. It also covers agency-type transfers where an NFP recipient acts as intermediary, agent, or trustee for a donor and a specified third-party beneficiary.

ASC 605-976 formerly contained the industry-specific revenue recognition guidance for retail land sales (sales of lots in subdivided developments, typically on installment contracts with refund/cancellation periods), including the percentage-of-completion and installment methods for such sales. Every paragraph in the subtopic — Sections 05, 15, 25, 30, 35, and 55 — was superseded by Accounting Standards Update No. 2014-09 (Revenue from Contracts with Customers). The subtopic therefore contains no remaining operative guidance; retail land sales are now accounted for under ASC 606 (and ASC 610-20 for sales of nonfinancial assets to noncustomers).

ASC 605-978 formerly contained the specialized revenue recognition guidance for real estate time-sharing transactions (interval sales, vacation clubs), including profit recognition tests, buyer's commitment and continuing investment thresholds, relative sales value accounting, and reload/upgrade transactions. Every paragraph in every section of the subtopic was superseded by Accounting Standards Update No. 2014-09. Time-sharing revenue is now accounted for under ASC 606, with transfers of real estate outside a customer contract addressed in ASC 610-20.

ASC 605-980 is the surviving remnant of the old revenue standard for entities with regulated operations (and nonutility generators), governing recognition of revenue from "alternative revenue programs" — regulator-authorized adjustments to future billings for past events. Type A programs adjust billings for weather abnormalities, broad external factors, or demand-side management; Type B programs award incentives for achieving objectives such as cost reduction or improved service. Revenue is recognized once the triggering events are complete if the program arises from a regulatory order allowing automatic rate adjustment, the amount is objectively determinable and probable of recovery, and collection occurs within 24 months after the end of the annual period of recognition (605-980-25-4).

After ASU 2014-09 gutted nearly all of its content, ASC 605-985 survives only to address recognizing a provision for losses on contracts to deliver software or a software system (alone or with other products and services) that require significant production, modification, or customization of software. It expressly provides no revenue recognition guidance; revenue for such arrangements is accounted for under Topic 606, with the loss provision guidance in Subtopic 605-35. If it becomes probable that the transaction price allocated to an unsatisfied or partially unsatisfied performance obligation will produce a loss, that loss is recognized under Topic 450.

ASC 606-10 is the general revenue recognition model for contracts with customers: revenue is recognized to depict the transfer of promised goods or services in an amount reflecting the consideration to which the entity expects to be entitled. It is applied through five steps — identify the contract, identify the performance obligations, determine the transaction price, allocate that price to the performance obligations, and recognize revenue as each obligation is satisfied when the customer obtains control (606-10-05-4). It also sets the scope exclusions (leases, insurance, financial instruments, guarantees, certain nonmonetary exchanges), balance sheet presentation of contract assets/liabilities and receivables, and a broad disclosure package.

This subtopic gives franchisors that are not public business entities a practical expedient for identifying performance obligations under Topic 606. Rather than applying the general distinct analysis to the franchise license, a private franchisor may treat listed pre-opening services (site selection, facility assistance, training, manuals, bookkeeping/IT/advisory, quality control) as distinct from the franchise license, and may further elect as an accounting policy to treat all such pre-opening services as a single performance obligation. The expedient affects only step 2 of the model; allocation of transaction price and timing of recognition still follow Topic 606.

ASC 610-10 is the Overall subtopic of the Other Income Topic, which covers income that is not revenue from a contract with a customer under Topic 606 and is not addressed by other Topics (such as Topic 842 on leases or Topic 944 on insurance) or other revenue/income recognition guidance. It is largely a scope-setting subtopic: it establishes the pervasive scope for Topic 610 and identifies its Subtopics — Overall (610-10), Gains and Losses from the Derecognition of Nonfinancial Assets (610-20), and Gains and Losses on Involuntary Conversions (610-30). The guidance applies to all entities.

ASC 610-20 governs how an entity recognizes and measures gains or losses when it derecognizes nonfinancial assets (and "in substance nonfinancial assets") transferred to counterparties who are not customers — for example, sales of real estate, intangibles, IPR&D, or ownership interests in a non-business subsidiary holding only such assets. The entity first applies Topic 810 to determine whether it retains a controlling financial interest, then applies Topic 606's contract-existence, distinct-asset, and transfer-of-control criteria to decide when to derecognize each distinct asset, and computes gain or loss as the difference between consideration (transaction price plus the carrying amount of liabilities assumed or relieved) and the asset's carrying amount (610-20-25-1 through 25-7; 610-20-32-2).

ASC 610-30 governs the accounting when a nonmonetary asset (property, equipment, inventory) is involuntarily converted into monetary assets — e.g., insurance proceeds from destruction or theft, or condemnation awards in eminent domain. Because the conversion is a monetary transaction rather than a nonmonetary exchange, any difference between the asset's cost (or carrying amount) and the monetary assets received is a realized gain or loss that must be recognized, even if the proceeds are reinvested or the entity is obligated to reinvest them in replacement assets (610-30-25-2; 610-30-25-3).

ASC 705-10 is a "pointer" subtopic: it contains almost no substantive rules of its own and instead links to the Topics where cost of sales and services guidance actually resides. This structure follows from the Codification's asset liability model, under which costs are recognized as assets are sold or remeasured (or liabilities incurred), so the guidance sits in Topics such as 330 (inventory), 360 (PP&E), 606/340-40 (customer contracts), and 718 (share-based payment).

ASC 705-20 governs how a customer (often a reseller) accounts for cash, credits, coupons, or vouchers received from a vendor. The default rule is that vendor consideration reduces the purchase price of the goods or services acquired (705-20-25-1), unless it is payment for a distinct good or service transferred to the vendor, a reimbursement of specific incremental costs incurred to sell the vendor's products, or reimbursement for the vendor's sales incentives offered directly to consumers. The Subtopic also prescribes systematic and rational recognition of volume/loyalty rebates payable under binding arrangements.

ASC 705-905 is a "link-only" subtopic: it contains no substantive rules of its own and simply directs agricultural cooperatives to the guidance elsewhere in the Agriculture topic on when unprocessed products received from patrons are charged to cost of goods sold. The core point is that a COGS charge (and the related liability to patrons) arises only when the cooperative's board of directors assigns an amount to those unprocessed products.

This Subtopic governs how film production and distribution entities account for costs of manufacturing or duplicating products held for sale, such as videocassettes and digital video discs. Manufacturing/duplication costs are charged to expense on a unit-specific basis when the related product revenue is recognized (705-926-25-1). The cost of theatrical film prints is instead expensed over the period benefited (705-926-25-2).

ASC 710-10 is the catch-all compensation subtopic for arrangements outside pensions/OPEB (715), postemployment benefits (712), and stock compensation (718). Its General Subsections require accrual of a liability for compensated absences when four conditions are met (services already rendered, rights vest or accumulate, payment probable, amount reasonably estimable), prescribe accrual of individual deferred compensation contracts over the service period to the full eligibility date at present value, and limit deferral of union-contract lump-sum payments. The Deferred Compensation—Rabbi Trusts Subsections classify trust-held employer stock as treasury stock and classify the deferred compensation obligation as equity or a liability depending on the plan's settlement and diversification features (Plans A–D).

This Subtopic addresses compensated absences and other compensation-related costs for entities with regulated operations. Even though a regulator may allow such compensation in rates only when paid, the entity must still accrue the liability under Topic 710 because regulator rate actions cannot eliminate obligations the regulator did not impose. Because the cost will be recoverable in future rates as paid, the entity simultaneously records a regulatory asset representing the probable future increased revenue.

ASC 712-10 governs employer accounting for nonretirement postemployment benefits — special and contractual termination benefits and other postemployment benefits (severance, salary continuation, disability, continued health coverage) paid to former or inactive employees after employment but before retirement and not paid through a pension or other postretirement plan. Special termination benefits are accrued when employees accept the offer and the amount is reasonably estimable; contractual termination benefits are accrued when it is probable employees will be entitled to them and the amount is reasonably estimable. Other postemployment benefits are accrued under Subtopic 710-10 if they accumulate or vest, and otherwise under the loss contingency model of paragraph 450-20-25-2.

ASC 715-10 is the Overall subtopic that sets the objectives and pervasive scope for employer accounting for pension, other postretirement, and certain special or contractual termination benefits. Its core premise is that a benefit plan is an exchange of deferred compensation for employee service, so the employer's obligation is incurred as services are rendered and cost is recognized over the employee service periods. Because the original content was built on an expense recognition model, most operative guidance sits in the Subsequent Measurement Sections of Subtopics 715-20, 715-30, 715-60, 715-70, and 715-80.

ASC 715-30 governs an employer's accounting for single-employer defined benefit pension plans: it requires the employer to recognize the plan's funded status (projected benefit obligation versus fair value of plan assets) on the balance sheet and to recognize net periodic pension cost made up of service cost, interest cost, actual return on plan assets, and amortization of prior service cost/credit, net gain or loss, and any remaining transition asset or obligation. Gains, losses, and prior service cost are first recognized in other comprehensive income and amortized into net periodic pension cost over time (subject to the 10 percent corridor for net gains and losses). Separate Subsections govern settlements, curtailments, and certain termination benefits, which accelerate recognition in earnings of amounts sitting in accumulated other comprehensive income.

ASC 715-60 governs an employer's accounting for single-employer defined benefit postretirement benefit plans other than pensions (OPEB)—chiefly retiree health care, but also retiree life insurance, tuition, day care, legal services and housing subsidies. The employer must recognize the funded status of each plan (fair value of plan assets less the accumulated postretirement benefit obligation) on the balance sheet, attribute the expected postretirement benefit obligation ratably over an attribution period ending at the full eligibility date, and recognize net periodic postretirement benefit cost with delayed recognition of prior service cost, gains/losses, and any transition obligation through other comprehensive income. Separate Subsections address the Medicare Part D subsidy, settlements/curtailments/termination benefits, and split-dollar life insurance arrangements.

ASC 715-70 governs employer accounting and disclosure for defined contribution pension and other postretirement benefit plans—plans that provide an individual account for each participant and benefits based only on contributions plus returns. The core rule is that net periodic cost equals the contribution called for in the period in which the employee renders service (715-70-35-1), with costs accrued during the service period if contributions relate to periods after retirement or termination. Plans with characteristics of both defined benefit and defined contribution plans must be accounted for based on their substance (715-70-15-2).

ASC 715-80 governs an employer's accounting and disclosure for participation in multiemployer pension and other postretirement benefit plans — plans to which two or more unrelated employers contribute, usually under collective-bargaining agreements. The core rule is defined-contribution-like: the employer recognizes as net pension (or net periodic postretirement benefit) cost the required contribution for the period, including cash and the fair value of noncash contributions, and recognizes a liability only for unpaid required contributions (715-80-35-1). Extensive plan-by-plan disclosures (zone status, EIN, contributions, collective-bargaining agreement expirations, withdrawal exposure) are required so users can assess the distinctive risks of multiemployer participation.

ASC 715-930 governs how coal industry entities account for postretirement medical and death benefit obligations imposed by the Coal Industry Retiree Health Benefit Act of 1992, which assigns beneficiaries (and a share of "orphan" beneficiaries) of the UMWA Combined Benefit Fund to former signatories of coal wage agreements. Entities still operating in the coal industry may elect to account for the obligation either as participation in a multiemployer plan or as a liability imposed by the Act; entities electing liability treatment, and all entities no longer operating in the coal industry, must recognize the entire obligation as a loss under Subtopic 450-20 (715-930-25-1). Losses so recognized are presented as an unusual or infrequently occurring item, and the impact of the Act must be disclosed.

ASC 715-980 tells rate-regulated entities how to account for the difference between net periodic pension cost (715-30) or net periodic postretirement benefit cost (715-60) and the amounts of those costs allowed for rate-making purposes. The regulator's actions create a regulatory asset (deferred cost whose recovery is probable) or a liability (unearned revenue collected for future costs), which changes only the timing of expense recognition, not the underlying 715-30/715-60 measurement. Deferral of 715-60 costs as a regulatory asset is permitted only if strict criteria about the rate order, five-year phase-in, roughly 20-year deferral-recovery period, and non-increasing rate escalation are met.

ASC 718-10 is the "Overall" subtopic for share-based payment arrangements, setting the pervasive scope, recognition, measurement, classification, and disclosure principles that apply to both equity- and liability-classified awards granted to employees and nonemployees (and, by cross-reference, to customers). Its core rule is that cost must be recognized for all share-based payment transactions using a fair-value-based measurement method, generally grant-date fair value of the equity instruments issued (or fair value of liabilities incurred), recognized as the goods are obtained or services are received (718-10-10-2; 718-10-25-2; 718-10-30-3). Classification as liability or equity follows Topic 480 criteria as modified by 718-10-25-8 through 25-19A, and performance conditions are accrued based on the probable outcome while market conditions are reflected in grant-date fair value.

ASC 718-50 governs employee share purchase plans (ESPPs), including Section 423-style plans. Its core rule is a three-part test in 718-50-25-1: a plan is noncompensatory only if (a) its terms are no more favorable than those available to all holders of the same class of shares or the discount does not exceed the per-share cost of raising capital publicly (a 5% or smaller discount is automatically acceptable), (b) substantially all employees meeting limited employment qualifications may participate on an equitable basis, and (c) the plan has no option features other than two narrow exceptions. If the plan is compensatory (e.g., it has a look-back feature), grant-date fair value is measured by valuing the award as the sum of its separate components, and the requisite service period is the period over which the employee participates and pays for the shares.

ASC 720-10 is the Overall subtopic of the Other Expenses Topic, which is essentially an organizing shell. It lists the eight subtopics housed under Topic 720 — Overall, Start-Up Costs, Insurance Costs, Contributions Made, Real and Personal Property Taxes, Advertising Costs, Electronic Equipment Waste Obligations, and Business and Technology Reengineering — and states that each contains standalone guidance with no interrelationship among them.

ASC 720-15 governs the accounting for start-up activities — including one-time activities to open a new facility, introduce a new product or service, conduct business in a new territory or with a new class of customer, initiate a new process in an existing facility, or organize a new entity (organization costs). The single core rule is that costs of start-up activities, including organization costs, must be expensed as incurred (720-15-25-1). The Subtopic defines start-up activities by their nature rather than by the time period in which they occur, and carves out numerous costs governed by other GAAP.

ASC 720-20 tells a policyholder (a noninsurance entity, or an insurer buying coverage outside its core operations) how to account for insurance it purchases, covering three contract types: retroactive contracts, claims-made contracts, and multiple-year retrospectively rated contracts. If a contract does not actually transfer insurance risk, the premium (less amounts retained by the insurer) is accounted for as a deposit under Subtopic 340-30 (720-20-25-1). For retroactive coverage of already-incurred liabilities, the premium is expensed immediately, a receivable is recorded for expected recoveries, and any excess of receivable over premium is a deferred gain amortized over the recovery period (720-20-25-3 through 25-4; 720-20-35-2).

ASC 720-25 governs how a resource provider (any entity) accounts for contributions it makes, including unconditional promises to give. Contributions made are recognized as expenses in the period made, with a corresponding decrease in assets or increase in liabilities, and are measured at the fair value of the assets given (or of the donee liabilities cancelled). Conditional promises are not recognized until the barrier is overcome, using the same conditionality analysis as the contributions received guidance in 958-605.

ASC 720-30 governs when an accrual-basis taxpayer records a liability for real and personal property taxes and how much is charged to income in each period. Legal liability for such taxes generally attaches at a specific event date (assessment date, lien date, levy date, etc.) determined by state law, but the preferred accounting is a monthly accrual over the fiscal period of the taxing authority for which the taxes are levied. Accrued property taxes are current liabilities, and later revisions of estimated amounts run through the income statement.

ASC 720-35 governs how entities account for advertising costs in annual financial statements. The core rule: advertising costs are expensed either as incurred or the first time the advertising takes place, applied consistently as an accounting policy to similar kinds of advertising activities (720-35-25-1); no advertising asset is capitalized, though sales materials may be treated as prepaid supplies and cooperative-advertising obligations must be accrued when the related revenue is recognized. The notes must disclose the policy elected and total advertising expense for each income statement presented (720-35-50-1).

ASC 720-40 addresses when a producer must recognize a liability and expense for the cost of disposing of "historical waste" electrical and electronic equipment held by private households under EU Directive 2002/96/EC (WEEE). Because the Directive funds historical household waste collectively by producers selling in the market during a country-defined measurement period, the obligating event is participation in that market — so no liability may be recognized before the measurement period begins, regardless of how much qualifying equipment the producer previously sold (720-40-25-1). The liability is accrued over the measurement period based on estimated total program costs and the producer's estimated market share, and is adjusted as actual data arrives (720-40-25-3; 720-40-35-1).

ASC 720-45 governs the accounting for costs of business process reengineering (BPR) activities, including those bundled into information technology transformation projects (e.g., enterprise software installations). The core rule is that BPR costs—whether performed internally or by third parties—must be expensed as incurred, even when they are part of a project to acquire, develop, or implement internal-use software. When a bundled third-party consulting contract covers multiple activities, the contract price must be allocated among activities based on objective evidence of relative fair values.

ASC 720-50 governs how pharmaceutical manufacturers and health insurers account for the annual, non-tax-deductible fees payable to the U.S. Treasury under the Affordable Care Act (as amended by the Health Care and Education Reconciliation Act). The entire estimated annual fee liability is recognized in full upon the first qualifying event in the calendar year (first branded prescription drug sale, or first provision of U.S. health risk insurance), with an offsetting deferred cost amortized to expense — normally straight-line — over that calendar year. The fee is presented as an operating expense.

ASC 720-908 governs how airlines account for route developmental costs, preoperating costs, and certain maintenance/overhaul costs. The core rule is expense-as-incurred: because route expansion is a normal, recurring activity in a deregulated environment with uncertain recoverability, these costs may not be capitalized. It also addresses the direct expensing method for overhauls and the cost of repairing rotables.

This Subtopic tells cable television entities which industry-specific costs must be expensed rather than capitalized. During the prematurity period (while a cable system is being built out and partially marketed), subscriber-related costs and general and administrative expenses are period costs. Costs of disconnecting/reconnecting subscribers after initial installation, and costs of unsuccessful franchise applications or abandoned franchises, are also charged to expense.

This Subtopic governs how a casino entity accounts for the cost of promotional allowances — complimentary goods and services (comps) such as rooms, food, beverages, and entertainment given to customers. Its single substantive rule is that the cost of providing those promotional allowances is included in costs and expenses (720-924-25-1). Scope follows the casino Overall Subtopic, Section 924-10-15.

This Subtopic governs how film production and distribution entities account for certain costs incurred to develop and market a film, including overall deal costs and exploitation costs. Costs of overall deals that cannot be identified with specific projects are charged to expense as incurred over the related time period (720-926-25-1), advertising costs follow Subtopic 720-35 (720-926-25-2), and all other exploitation costs, including marketing costs, are expensed as incurred (720-926-25-3).

This Subtopic tells music-industry entities when to expense artist royalties, record master production costs, advance minimum guarantees paid by licensees, and other license fees. The core rule is that artist royalties (adjusted for anticipated returns) are charged to expense in the period the record sale occurs, advances are expensed as royalties are subsequently earned, and any advance or minimum guarantee that appears unrecoverable is expensed when the loss becomes evident (720-928-25-1, 720-928-25-3).

This Subtopic identifies costs unique to oil- and gas-producing activities that do not result in acquisition of an asset and therefore must be charged to expense as incurred. Under the successful efforts framework, geological and geophysical (G&G) costs, costs of carrying and retaining undeveloped properties, dry hole and bottom hole contributions, and the costs of exploratory wells (and exploratory-type stratigraphic test wells) that do not find proved reserves are expensed immediately. It also notes the customary practice of accumulating an in-house exploration department's costs and allocating them to exploration activities using standardized charges.

This short subtopic addresses how brokers and dealers in securities account for mutual fund distribution costs. Its only substantive instruction is a cross-reference: for 12b-1 fees and contingent deferred sales charges, apply the cost guidance in Subtopic 946-720 (Investment Companies—Other Expenses). Its scope follows the broker-dealer Overall Subtopic scope in Section 940-10-15.

This Subtopic governs how depository institutions account for assessments imposed by the Financing Corporation (FICO) under the Deposit Insurance Funds Act of 1996, which requires institutions with deposits assessable by the Deposit Insurance Fund to help finance outstanding FICO bonds. The single rule is that the FICO assessment is reported as a period cost as incurred (720-942-25-1) rather than capitalized or accrued for future periods.

ASC 944-720 tells insurance entities which costs must be expensed as incurred rather than capitalized as deferred acquisition costs. Because 944-30-25-1A permits capitalization only of incremental direct acquisition costs relating to successful contract acquisitions or renewals, everything else — non-qualifying acquisition-related costs and all indirect costs — is charged to expense as incurred (944-720-25-2).

This Subtopic tells investment advisers and mutual fund distributors how to account for costs incurred to distribute fund shares. The general rule: if the adviser does not receive both 12b-1 fees and contingent-deferred sales fees, the distribution/offering costs fail the definition of an asset and must be expensed as incurred (with initial offering costs treated as start-up costs under Subtopic 720-15). Distributors of no-front-end-load mutual funds instead defer and amortize incremental direct costs and expense indirect costs as incurred.

This Subtopic governs how a mortgage banking enterprise accounts for fees it pays to permanent investors to assure the ultimate sale of residential or commercial loans. Such commitment fees are expensed when the loans are actually sold to the permanent investor, or earlier if it becomes evident the commitment will not be used. Because residential commitments typically cover blocks of loans, the fee is allocated to individual loan transactions on the ratio of the individual loan amount to the total commitment amount.

ASC 720-954 governs how health care entities account for insurance-related and other operating expenses, principally retrospectively rated insurance policies, claims-made policies, malpractice loss accruals, multiprovider captive insurance arrangements, and stop-loss insurance. The core rules turn on whose loss experience drives the premium: if the entity's own experience, the minimum premium is expensed over the coverage period and recoveries are deferred until estimated losses exceed the stipulated maximum premium; if a group's experience, additional premiums or refunds are accrued based on group experience to date, including asserted and unasserted, reported and unreported claims.

ASC 720-970 addresses when real estate project costs must be expensed rather than capitalized. Its core rules: internal costs of preacquisition activities for a property that will be an operating property at acquisition date are expensed as incurred (720-970-25-1), and indirect costs not clearly related to projects under development or construction — including general and administrative expenses — are charged to expense as incurred (720-970-25-3). The Subtopic defines "operating" property as one where major construction is substantially complete and the property is either available for occupancy upon tenant improvements or already income-producing (720-970-25-2).

This Subtopic tells common interest realty associations (CIRAs) — such as condominium and homeowners' associations — how to account for expenditures on major repairs or replacements of common property. Under 720-972-25-1, a CIRA that uses fund accounting charges such expenditures to the fund(s) established for major repairs and replacements; if the expenditure relates to common property that has been recognized as an asset, the amount is instead reported as a transfer to the operating fund (or property fund, if one exists).

This subtopic governs how a real estate investment trust (REIT) accounts for "operating support" received from its external adviser — arrangements designed to guarantee the REIT a certain return, such as buying loans or property above fair value, debt forgiveness, advisory fee reductions, compensating balances, or cash payments. The REIT must adjust any transferred assets or liabilities to fair value at the transaction date and recognize the support effectively obtained as income or as a reduction of advisory fees. The effect of these transactions must be reported separately in the income statement and fully disclosed as a related party relationship.

This subtopic governs how a time-share seller accounts for other expenses of time-sharing activities — chiefly selling and marketing costs and subsidies of the owners association. The core rule is that all costs incurred to sell time-sharing intervals are expensed as incurred unless they qualify for capitalization as costs to obtain a contract under ASC 340-40-25-1 through 25-4, and seller payments of dues, maintenance fees, or subsidies of owners association losses are likewise expensed as incurred.

ASC 730-10 governs the identification and accounting for research and development (R&D) costs. The core rule is that R&D costs within scope are charged to expense when incurred (730-10-25-1), because future benefits are too uncertain and unmeasurable to support asset recognition (730-10-05-2 through 05-3). The subtopic also defines which activities count as R&D, which cost elements are R&D costs, and requires disclosure of total R&D expense for each income statement period.

ASC 730-20 governs how an entity accounts for arrangements in which other parties (often a limited partnership of investors) fund the entity's research and development. The central question is the substance of the entity's obligation: whether the entity has merely contracted to perform R&D services for others, or has in substance incurred a liability to repay the funding parties. Substance governs over form, so payments labeled royalties or option/purchase prices may in fact be settlement of a borrowing, the purchase price of an asset, or true royalties.

This subtopic tells government contractors how to account for best-efforts-basis, research-and-development-cost-sharing arrangements with the federal government. When all six scope conditions in 730-912-15-2 are met (qualifying R&D, contractor retains rights to data/results, best-efforts-only obligation, mutual expectation that costs will exceed funding, no contract combination under 606-10-25-9, and the federal government as sole or principal ultimate customer), the arrangement is not a revenue contract under Topic 606. Instead, costs are expensed as R&D as incurred under Topic 730, and customer funding is recorded as an offset to aggregate R&D expense rather than as contract revenue (730-912-25-1).

ASC 730-985 is a "link" subtopic: it contains no substantive rules of its own but points readers from the research and development Topic to the software guidance. It directs users to 985-20-25-1 for costs incurred to establish the technological feasibility of software to be sold, leased, or otherwise marketed, and to 985-20-25-8 through 25-10 for the cost of purchased software to be marketed.

ASC 740-10 is the Overall subtopic for income taxes and contains the core asset-and-liability model: recognize (1) current taxes payable or refundable for the year and (2) deferred tax assets and liabilities for the future tax consequences of temporary differences and operating loss/tax credit carryforwards (740-10-10-1; 740-10-25-2). Deferred taxes are measured using enacted tax rates expected to apply when the item reverses, are not discounted, and deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all will not be realized (740-10-30-5, 740-10-30-8). It also houses the two-step uncertain tax position model — more-likely-than-not recognition on technical merits, then measurement at the largest benefit greater than 50 percent likely of being realized on settlement (740-10-25-6; 740-10-30-7).

ASC 740-30 governs the limited exceptions to comprehensive deferred tax recognition for temporary differences (outside basis differences) arising from investments in subsidiaries and corporate joint ventures, principally undistributed earnings. The starting presumption is that all undistributed earnings of a subsidiary will be transferred to the parent and thus create a taxable temporary difference (740-30-25-3), but that presumption can be overcome by the "indefinite reversal criteria" for foreign subsidiaries/foreign corporate joint ventures essentially permanent in duration and for pre-December 16, 1992 domestic undistributed earnings (740-30-25-17 and 25-18). Deferred tax assets for excess outside tax basis are recognized only if it is apparent the difference will reverse in the foreseeable future (740-30-25-9).

ASC 740-805 (codified as 805-740) gives the income tax rules that apply when an acquirer accounts for a business combination or a not-for-profit acquisition. It requires recognizing deferred tax assets and liabilities (and valuation allowances) at the acquisition date for the differences between the tax bases and the recognized values of assets acquired and liabilities assumed, measured under Subtopic 740-10 with no discounting. It also specifies exceptions (nondeductible goodwill, leveraged leases) and how post-acquisition changes in valuation allowances and acquired tax positions are recognized — through goodwill only within the measurement period, otherwise in income tax expense.

This subtopic governs deferred tax accounting for basis differences that arise in foreign operations when tax or financial reporting bases are restated — because of a change in functional currency, general price-level (inflation) indexing, or a functional currency that differs from the local currency. Its core rules: when an economy ceases to be highly inflationary and new functional currency bases are established for nonmonetary items, the resulting differences from local currency tax bases are temporary differences requiring deferred taxes recognized in other comprehensive income as an adjustment to cumulative translation adjustments (830-740-45-2); by contrast, no deferred taxes are recognized for nonmonetary assets remeasured at historical exchange rates whose differences arise from exchange rate changes or tax indexing (740-10-25-3(f)).

This Subtopic applies Topic 740's deferred tax model to casino entities, identifying the common situations where casino book accounting diverges from income tax reporting. Under 740-924-25-1, deferred income taxes arise from three recurring casino differences: casino receivables recognized for books but taxed when collected, costs deferred for books but expensed for tax, and progressive slot jackpots accrued from meter readings for books but deducted for tax when paid. It provides no separate scope, following the scope of Subtopic 924-10 (740-924-15-1).

This subtopic covers income tax accounting peculiar to oil- and gas-producing activities. Its core rules: the tax benefit of statutory depletion in excess of cost depletion is recognized only in the period the excess is deducted on the tax return (no deferred tax asset before then), and the likelihood that future statutory depletion will reduce or eliminate future taxable income must be weighed in the more-likely-than-not realizability assessment for deferred tax assets. It also notes that costs such as intangible drilling and development costs and geological and geophysical costs are deducted for tax purposes in periods different from when they are expensed or amortized for book purposes, creating temporary differences.

This subtopic applies Topic 740 to stock and mutual savings and loan associations and mutual savings banks, whose tax bad-debt reserve deductions differ from book bad-debt experience. Its core rule is an exception to comprehensive deferred tax recognition: no deferred tax liability is recognized for the tax bad-debt reserve that arose in tax years beginning before December 31, 1987 (the base-year amount), while a deferred tax liability must be recognized for reserve amounts in excess of the base year. Related valuation allowance, measurement, and disclosure requirements are specified.

This Subtopic applies Topic 740's income tax model to insurance entities. Deferred tax liabilities and assets are recognized for temporary differences generally, but a life insurance entity does not provide deferred taxes on taxable temporary differences related to policyholders' surplus arising in fiscal years beginning on or before December 15, 1992 — unless a known or expected reduction in that surplus makes tax payment likely, in which case the attributable tax is accrued currently. Disclosure of unrecognized deferred tax liabilities under the Topic 740 exceptions is required.

This subtopic applies ASC 740 to entities whose rates are regulated and that meet the criteria in 980-10-15-2. It prohibits net-of-tax accounting, requires a deferred tax liability for tax benefits flowed through to customers and for the equity component of the allowance for funds used during construction (AFUDC), and requires deferred taxes to be adjusted for enacted changes in tax law or rates. When it is probable that a regulator will allow recovery from (or require refund to) customers of those future tax amounts, the entity recognizes a separate regulatory asset or liability, which is itself a temporary difference generating additional deferred tax.

ASC 805-10 is the Overall subtopic of Business Combinations: it sets the scope of the Topic and governs two of the four steps of the acquisition method — identifying the acquirer and determining the acquisition date — plus the definition of a business, the measurement period, and deciding what is (and is not) part of the business combination exchange. Every transaction meeting the definition of a business combination must be accounted for by the acquisition method (805-10-25-1); if the acquired set is not a business, it is an asset acquisition. It also sets the disclosure objectives and requirements enabling users to evaluate the nature and financial effects of a combination.

ASC 805-20 governs one piece of the acquisition method: recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest (NCI) in the acquiree. The core rules are that at the acquisition date the acquirer recognizes these items separately from goodwill (if they meet the asset/liability definitions and are part of the exchange, not a separate transaction) and measures them at acquisition-date fair value, subject to a closed list of recognition and measurement exceptions (income taxes, employee benefits, indemnification assets, reacquired rights, share-based payments, held-for-sale assets, certain contingencies, leases, PCD assets, contract assets/liabilities). Private companies and NFPs may elect an accounting alternative that subsumes most customer-related intangibles and all noncompetition agreements into goodwill.

ASC 810-10 sets out the pervasive framework for determining whether one reporting entity must consolidate another legal entity, and it is organized into three Subsections: General (voting interest model), Variable Interest Entities (VIE model), and Consolidation of Entities Controlled by Contract. Consolidation is required when a reporting entity has a "controlling financial interest" — usually ownership of a majority voting interest (or, for limited partnerships, a majority of kick-out rights through voting interests) under the General Subsections, or, for a VIE, both power over the activities that most significantly impact the VIE's economic performance and exposure to potentially significant losses/benefits. A reporting entity must first test whether the other entity is a VIE (810-10-15-14); only if it is not does the voting-interest or contractual-control analysis apply.

ASC 810-30 tells a sponsor how to account for a research and development arrangement in which the sponsor funds 100% of the R&D activities — typically by capitalizing a new entity (Newco) with cash and technology rights, spinning off Newco's Class A common stock to the sponsor's shareholders, and retaining a purchase option and nominal Class B shares. The sponsor reclassifies the contributed cash as restricted cash, recognizes R&D expense as the activities are performed, and records the Class A distribution as a dividend at the fair value of that stock. The Class A stock is presented as noncontrolling interest classified in equity but separate from the parent's equity, and exercise of the purchase option is accounted for like an acquisition of a noncontrolling interest.

ASC 810-970 gives real-estate-specific consolidation guidance layered on top of ASC 810-10. It explains when an investor controls a general or limited partnership that holds real estate (majority voting interest, or majority of profit/loss interests when voting interests are unclear), when substantive participating rights of other partners overcome the presumption of control, and when a noncontrolling investor instead uses the equity method. It also sets the five conditions that permit proportionate (undivided interest) presentation of an investment in real property.

ASC 815-10 is the Overall subtopic of the derivatives and hedging Topic: it defines what a derivative instrument is, sets the scope (including a long list of scope exceptions), and requires that derivatives be recognized as assets or liabilities on the statement of financial position and measured at fair value. A contract is a derivative only if it has (1) one or more underlyings and one or more notional amounts or payment provisions, (2) no or a smaller-than-usual initial net investment, and (3) the ability to be settled net (815-10-15-83). If conditions are met, an entity may elect to designate a derivative as a fair value hedge, cash flow hedge, or hedge of foreign currency exposure (including a net investment in a foreign operation).

ASC 815-20 sets the general "gatekeeping" rules for hedge accounting that apply to all three hedge types — fair value, cash flow, and net investment hedges. It requires formal designation and documentation at hedge inception (risk management objective, hedging instrument, hedged item, hedged risk, and the effectiveness assessment method), and it specifies which items and transactions may be designated as hedged items, which risks may be designated as the hedged risk, which instruments may be hedging instruments, and how effectiveness must be assessed. Items outside those criteria (e.g., equity method investments, most intra-entity transactions, an entity's own equity) simply cannot be hedged for accounting purposes.

This Subtopic applies the derivatives and hedging guidance of Topic 815 to casinos and to the casino operations of other entities. Its single substantive rule is a scope-out: fixed-odds wagering contracts — bets where the odds of winning are known or knowable when placed (e.g., certain sports and race wagers) — are not accounted for as derivatives by the casino that issues them. Instead, the casino treats them as revenue transactions under Topic 606.

This subtopic addresses whether gas-balancing arrangements between working-interest partners in a gas well are derivative instruments under Topic 815. When one partner (the overtaker) takes more than its share of production, the undertaken partner has a right to make up the imbalance in kind, with gas from another well, or in cash; the terms of each arrangement must be analyzed against the definition of a derivative. Even where the arrangement is a derivative whose settlement price leaves it at a fair value of zero, the Section 815-10-50 disclosures still apply, and the option feature cannot use the normal purchases and normal sales exception.

This Subtopic applies Topic 815's derivative and hedging guidance to insurance entities, chiefly for long-duration contracts such as variable annuities. Its core rules are that a traditional variable annuity contract is not a hybrid instrument containing an embedded derivative requiring bifurcation (815-944-25-1 through 25-2), that the traditional variable annuity serves as the host contract for a nontraditional variable annuity whose other features (excluding market risk benefits) may be embedded derivatives (815-944-25-5), and that these conclusions are exceptions that may not be analogized to other structures (815-944-25-3, 25-6). It also illustrates when an insurer may apply cash flow hedge accounting to forecasted interest credited on surrenderable fixed-rate contracts.

ASC 815-958 is a link-only subtopic: it contains no substantive rules of its own but points not-for-profit entities to the derivatives guidance that applies to them. It directs readers to 958-30-25-7 through 25-14 to decide whether an obligation arising from an irrevocable split-interest agreement contains an embedded derivative requiring bifurcation under 815-15-25-1, and (upon transition) to 815-20-25-3A and 815-20-25-143 for the timing of hedge documentation and hedge effectiveness assessments by certain NFPs.

ASC 815-980 addresses long-term power sales contracts, including those entered into by nonutility generators that sell power (often to rate-regulated utilities) under contracts with stated prices, formula-based prices, or a combination. The core rule is that if such a contract meets the definition of a derivative, it is marked to fair value through earnings unless designated in a qualifying hedging relationship; otherwise Topic 606 applies. Contracts that qualify for the normal purchases and normal sales scope exception in 815-10-15-13(b) are accounted for under this Section rather than as derivatives.

ASC 818-10 is the Overall subtopic of the new Environmental Credits and Environmental Credit Obligations Topic (created by ASU 2026-02), which sets the accounting and reporting requirements for entities that acquire, internally generate, or receive environmental credits and for entities subject to regulatory compliance programs (e.g., cap-and-trade, renewable portfolio or fuel standards) that create environmental credit obligations. It applies to all environmental credits and environmental credit obligations, and items within its scope are excluded from derivatives accounting under Topic 815. The objective is to give investors useful information about the amount, timing, and uncertainty of cash flows from these transactions.

ASC 818-20 governs the accounting for environmental credits (e.g., emissions allowances, carbon offsets, renewable energy certificates, RINs). An environmental credit is recognized as an asset only if it is probable it will be used to settle an environmental credit obligation, transferred in an exchange transaction, or used in a nonreciprocal transfer; otherwise the cost is expensed as incurred and can never later be capitalized. Credits recognized as assets are classified as compliance credits (not remeasured) or noncompliance credits (tested for impairment each reporting date, with an optional fair value policy election by class for eligible credits).

ASC 818-30 governs when and how an entity recognizes, measures, presents, and discloses an environmental credit obligation — a liability to remit environmental credits (e.g., emissions allowances, renewable energy certificates) under a regulatory compliance program. A liability is recognized when events on or before the reporting date would require remitting credits assuming the reporting date were the end of the compliance period (818-30-25-1). The liability is split into a funded portion, measured at the carrying amount of compliance environmental credits on hand under Subtopic 818-20 costing methods (818-30-30-2), and an unfunded portion, measured at fair value of the needed credits unless the entity intends to settle in cash or with credits from an unconditional commitment or right (818-30-30-3).

ASC 825-20 governs registration payment arrangements — agreements in which an issuer must file/obtain effectiveness of a registration statement (or obtain/maintain a stock exchange listing) for financial instruments and must transfer cash or shares to the counterparty if it fails. The core rule is that the arrangement is a separate unit of account: the underlying financial instruments are recognized and measured under other GAAP (e.g., 815-10, 815-40, 835-30) ignoring the contingent obligation, while the contingent obligation itself is recognized and measured under the loss-contingency model in Subtopic 450-20. Extensive disclosures are required even if payment is remote.

ASC 832-10 governs government assistance received by business entities (not-for-profits and plans under Topics 960, 962, and 965 are excluded). In its current form it is a disclosure-only topic requiring annual disclosure of the nature, accounting policy, financial statement effects, and significant terms of transactions with a government accounted for by analogy to a grant or contribution model. ASU 2025-10 converts it into a full recognition and measurement model for "government grants," under which a grant is recognized only when it is probable the entity will comply with the grant's conditions and receive the grant (832-10-25-1), with grants related to assets recognized under either a deferred income approach or a cost accumulation approach and grants related to income recognized in earnings on a systematic and rational basis as the related costs are expensed.

ASC 835-10 is the Overall subtopic of the Interest Topic; it does little more than map the Topic's structure and point readers elsewhere. It explains that Topic 835 addresses interest recognition in two instances — capitalization of interest costs incurred in connection with an investment in an asset (Subtopic 835-20) and imputation of interest where required (Subtopic 835-30) — and acknowledges that interest income/expense for specific transactions and instrument types is governed by other Topics.

ASC 835-20 requires interest cost incurred while a qualifying asset is being readied for its intended use to be capitalized as part of the asset's historical cost, on the theory that such interest is an avoidable cost caused by the acquisition. Qualifying assets include assets constructed for an entity's own use, discrete projects built for sale or lease, and equity-method investments in investees that have not yet begun planned principal operations; routinely mass-produced inventory, assets already in use or idle, and gift/grant-funded assets are excluded. The amount capitalized equals the capitalization rate (rate on specific new borrowing, then weighted average of other borrowings) applied to average accumulated expenditures, capped at total interest cost incurred in the period.

This Subtopic tells federal government contractors when interest cost may (and may not) be capitalized. Because assets built under contracts where revenue is recognized over time are "employed in the earnings activities" of the contractor (and often involve routinely produced inventories), interest capitalization is prohibited for those long-term contracts. Only when revenue is recognized at a point in time and fulfillment costs are capitalized as an asset under Subtopic 340-40 can those costs be qualifying assets for interest capitalization, and then the investment is limited to uncollected receivables net of related non-interest-bearing liabilities.

This short subtopic tells film producers and distributors how to handle interest costs incurred while a film is being produced. The rule is simple: interest costs related to film production are accounted for under the general interest-capitalization guidance in Subtopic 835-20 (835-926-25-1). Its scope follows the Entertainment—Films overall scope in Section 926-10-15.

This Subtopic governs when an investor-lender may recognize interest income on loans or advances made to a real estate venture (e.g., a joint venture in which the investor holds an equity interest). The core rule is that interest income must be deferred where collectibility is doubtful or other investors may not bear their share of losses; it is recognized in full only where the venture has expensed the interest (or the investor adjusts its equity pickup as if it had); otherwise a portion is deferred in proportion to the investor's interest in the venture's profits and losses (835-970-35-1).

This Subtopic governs when a real estate investment trust must stop recognizing interest revenue on loans it holds. Interest recognition must be discontinued when it is no longer reasonable to expect the revenue will be received, and certain conditions (past-due payments, default, foreclosure, borrower creditworthiness doubts, construction cost overruns/delays, renegotiation) create a rebuttable presumption that recognition should stop (835-974-35-1). Once discontinued, recognition may not resume and unrecorded interest may not be recognized until it is evident that principal and interest will be collected (835-974-35-2).

ASC 840-30 was the legacy guidance governing lessee accounting for capital leases and lessor accounting for direct financing and sales-type leases (recognition, initial measurement of the leased asset and obligation at the present value of minimum lease payments, subsequent interest and amortization, terminations/renewals, presentation, and disclosure). Every paragraph in this subtopic has been superseded — almost entirely by ASU 2016-02 (Leases, which created ASC 842), with 840-30-25-5 superseded by ASU 2014-09 (Revenue). As a result, 840-30 contains no operative guidance for entities that have adopted ASC 842.

ASC 840-40 was the legacy sale-leaseback guidance under the old lease model, addressing when a seller-lessee could recognize a sale of property it simultaneously leased back and how any gain or loss was deferred and amortized. Every substantive paragraph in the subtopic (Sections 05, 15, 25, 30, 35, 50, and 55) has been superseded by ASU 2016-02, so the subtopic now contains no operative guidance. Sale-leaseback transactions are instead accounted for under ASC 842-40, which conditions sale recognition on satisfying the transfer-of-control requirements in ASC 606.

ASC 842-10 sets the scope and core mechanics common to all leases: how to decide whether a contract is or contains a lease, how to identify and separate lease and nonlease components and allocate consideration, how to classify the lease (finance/sales-type, direct financing, or operating), and how to determine lease term and lease payments. A contract contains a lease if it conveys the right to control the use of an identified item of property, plant, or equipment for a period of time in exchange for consideration — meaning the customer has both the right to obtain substantially all the economic benefits from use and the right to direct the use of that asset (842-10-15-3, 15-4). Classification is made once at the commencement date and is reassessed only on a modification not accounted for as a separate contract (or, for lessees, a change in lease term or purchase option assessment) (842-10-25-1).

ASC 842-30 governs how lessors account for leases already classified under 842-10 as sales-type, direct financing, or operating leases. For sales-type and direct financing leases the lessor derecognizes the underlying asset and recognizes a net investment in the lease (lease receivable plus unguaranteed residual asset, discounted at the rate implicit in the lease), with selling profit recognized immediately in a sales-type lease but deferred into the net investment in a direct financing lease; interest income then accretes at a constant periodic rate. For operating leases the lessor keeps the asset on its books and recognizes lease payments as income straight-line (or another systematic and rational basis) over the lease term, and a collectibility-not-probable assessment overrides normal recognition in all three models.

ASC 842-40 governs sale and leaseback transactions, in which a seller-lessee transfers an asset to a buyer-lessor and leases it back. The threshold question is whether the transfer qualifies as a sale under Topic 606's control-transfer guidance; if it does, the seller-lessee derecognizes the asset, recognizes the sale at the transaction price, and accounts for the leaseback under 842-20, while the buyer-lessor accounts for the purchase under other Topics and the lease under 842-30. If the transfer is not a sale (e.g., the leaseback is a finance/sales-type lease or there is a non-fair-value repurchase option), the transaction is a failed sale accounted for as a financing by both parties.

This narrow subtopic tells a real estate investment trust (REIT) how much it may capitalize when a related service corporation performs leasing services for it. The service corporation is never treated as an independent third party, no matter how the REIT accounts for its investment in it (equity method, consolidation, etc.). Capitalized amounts are capped at the initial direct costs the REIT could have capitalized under 842-10-30-9 through 30-10 had it incurred the leasing costs directly.

ASC 845-10 governs nonmonetary transactions — reciprocal exchanges of nonmonetary assets and nonreciprocal transfers of nonmonetary assets to owners or others. The default rule is that such transactions are measured at the fair value of the asset surrendered (or received, if more clearly evident) with gain or loss recognized (845-10-30-1), subject to three exceptions requiring carryover (recorded amount) accounting: fair value not determinable within reasonable limits, an exchange of product held for sale to facilitate sales to customers, or a transaction lacking commercial substance (845-10-30-3). Special subsections address purchases and sales of inventory with the same counterparty, barter credits, and exchanges involving boot.

This Subtopic addresses how airlines account for exchanges of take-off and landing slots. Slots received in an exchange with another airline are nonmonetary assets and must be recorded under the general nonmonetary transaction guidance in Topic 845 (845-908-25-1), with related intangible asset guidance in Subtopic 908-350. Its scope is the same as the airline industry Overall Subtopic scope in Section 908-10-15.

ASC 845-926 was the industry-specific guidance applying nonmonetary-exchange principles to film entities (e.g., barter or exchange transactions involving film licensing rights). Every remaining paragraph in the subtopic — the overview (845-926-05-1), scope (845-926-15-1), and recognition (845-926-25-1) guidance — was superseded by ASU 2014-09, the revenue recognition standard. As a result, the subtopic contains no operative guidance; exchanges of film rights for consideration other than cash are now analyzed under ASC 606 (and related film cost guidance in ASC 926).

ASC 853-10 governs how an operating entity accounts for a service concession arrangement — a contract in which a public-sector grantor engages the operating entity to operate (and possibly construct, upgrade, or maintain) the grantor's infrastructure, such as airports, roads, bridges, prisons, or hospitals. The arrangement is in scope only if the grantor controls or can modify/approve the services, the recipients, and the price, and controls any residual interest in the infrastructure at the end of the term (853-10-15-3). In scope, the grantor is always deemed the customer of the operation services under Topic 606, the infrastructure is not recognized as the operating entity's PP&E, and the arrangement is not a lease under Topic 842 (853-10-25-1 through 25-2).

ASC 855-10 governs how entities account for and disclose events that occur after the balance sheet date but before the financial statements are issued or available to be issued. Events providing additional evidence about conditions that existed at the balance sheet date are "recognized subsequent events" and must be reflected in the financial statements (855-10-25-1); events reflecting conditions arising only after the balance sheet date are "nonrecognized" and are only disclosed if needed to keep the statements from being misleading (855-10-25-3; 855-10-50-2). It applies to all entities but yields to any other Codification Topic that addresses the same post-balance-sheet event (855-10-15-4).

ASC 860-30 governs transfers of financial assets that fail the sale conditions and therefore must be accounted for as secured borrowings, plus the accounting for collateral pledged in such transactions. The transferor keeps the transferred asset on its balance sheet with no change in measurement basis (860-30-25-2), reclassifying it separately (e.g., "securities pledged to creditors") if the secured party may sell or repledge it (860-30-45-1). Cash collateral — and securities collateral the holder may sell or repledge — is treated as proceeds of a borrowing rather than as collateral, and is recognized as an asset by the recipient with a corresponding obligation to return it (860-30-25-3, 25-8).

ASC 860-50 governs when a servicer must separately recognize a servicing asset or servicing liability and how to measure it. A servicing contract is recognized separately each time an entity undertakes an obligation to service financial assets through a qualifying sale of an entire financial asset, group of entire financial assets, or participating interest, or through an acquisition/assumption of servicing for others' assets (860-50-25-1); it is initially measured at fair value (860-50-30-1) whether or not explicit consideration is exchanged. Subsequently, each class of servicing assets and liabilities is measured using either the amortization method (with impairment tested by stratum via a valuation allowance) or the irrevocable fair value measurement method (860-50-35-1).

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.

ASC 912-20 governs how contractors with the federal government account for contract costs, including the requirement to follow Federal Acquisition Regulation cost principles when costs are analyzed in the procurement process. It addresses allocation of indirect costs, recording of subcontractor/vendor claims, accounting for terminations (convenience versus default), and restricts the use of program accounting. Losses from default terminations are treated as changes in accounting estimate in the current period, not as prior-period adjustments.

ASC 926-10 is the overall/scope subtopic for Entertainment—Films. It establishes that Topic 926 provides only incremental, industry-specific guidance on film costs, participation costs, and manufacturing costs for producers and distributors that own or hold rights to distribute or exploit films in any market or territory. Entities in scope must still apply all other applicable GAAP not contained in Topic 926.

ASC 928-10 is the overview and scope subtopic for accounting by entities in the record and music industry. It flags the topics covered elsewhere in ASC 928 — licensing of music copyrights and record masters, artist compensation costs (including royalties paid to recording artists), costs of producing record masters, and licensees' accounting for fees and minimum guarantees. The guidance is incremental industry-specific guidance only; entities in scope must still follow all other applicable GAAP.

ASC 940-20 governs specific broker-dealer activities, organized into General (commissions, soft-dollar arrangements, mutual fund distribution fees, agency transactions, financial presentation), Clearing (fails, due bills, suspense accounts, trading errors), and Underwriting Subsections. Its core rules are that agency transactions stay off the broker-dealer's statement of financial condition unless they fail to settle on the contracted settlement date, commission income is recognized under Topic 606 while related expenses accrue on trade date, and fails-to-deliver/fails-to-receive are recorded at selling/purchase price including accrued interest.

ASC 944-10 is the Overall subtopic of the Financial Services—Insurance Topic; it serves as the roadmap and scope gate for all insurance-specific accounting guidance. It lists the Topic's Subtopics (acquisition costs, claim costs and liabilities for future policy benefits, policyholder dividends, premium deficiency, separate accounts, and the statement/disclosure subtopics) and identifies the four contract-type Subsections used throughout: short-duration, long-duration, reinsurance, and financial guarantee insurance contracts. The guidance is incremental industry-specific guidance—entities in scope must still apply all other applicable GAAP.

ASC 944-20 sets the framework for insurance accounting based on the nature of the contract rather than the type of entity: contracts are classified at inception as short-duration (fixed short coverage period, insurer can cancel or reprice each period, 944-20-15-7) or long-duration (not subject to unilateral change, services rendered over an extended period, 944-20-15-10), with sub-models for traditional, universal life-type, participating, and financial guarantee contracts. It also defines when a contract with a reinsurer actually transfers insurance risk (significant insurance risk plus reasonable possibility of significant loss, 944-20-15-41) and prescribes recognition and with-and-without measurement for multiple-year retrospectively rated contracts. Contracts lacking indemnification or significant insurance risk are accounted for under the deposit method (340-30) or as investment contracts.

ASC 944-40 governs how insurance entities recognize and measure claim costs and liabilities for future policy benefits, with separate subsections for short-duration contracts, long-duration contracts, reinsurance contracts, and financial guarantee insurance contracts. Its core rules are that liabilities for unpaid claims (including IBNR) and claim adjustment expenses are accrued when insured events occur, and that a liability for future policy benefits—the present value of future benefits and related expenses less the present value of future net premiums—is accrued when premium revenue is recognized. Post-ASU 2018-12, cash flow assumptions are updated at least annually with remeasurement gains/losses in net income, the discount rate is an upper-medium grade (low-credit-risk) fixed-income yield updated each reporting date through OCI, and market risk benefits are measured at fair value.

ASC 944-50 governs how insurance entities account for and report policyholder dividends on participating insurance contracts. For participating contracts other than the long-duration participating life contracts described in 944-20-15-3, dividends are accrued (measured at an estimate of the amount to be paid, or recognized over the premium-paying period using anticipated/illustrated dividend scales), and any policyholders' share of net income that cannot be distributed to stockholders is charged to operations and credited to a participating policyholders' funds liability. For long-duration participating life contracts meeting 944-20-15-3, annual policyholder dividends are expensed based on amounts incurred for policies in force and reported separately in the statement of earnings.

ASC 946-10 sets the scope of the Financial Services—Investment Companies Topic by defining which entities qualify as investment companies and therefore apply the Topic's specialized (fair value) accounting and reporting. Any entity regulated under the Investment Company Act of 1940 is automatically an investment company (946-10-15-4); all others must possess the two fundamental characteristics in 946-10-15-6 and are assessed against five typical characteristics in 946-10-15-7, applying judgment when a typical characteristic is absent. Status is determined at formation and reassessed only upon a change in purpose and design (or loss of 1940 Act regulation), with prescribed prospective or cumulative-effect accounting and disclosure for a change in status.

ASC 946-20 governs specific "investment company activities" — payments by affiliates to reimburse fund losses or cure investment-restriction violations, Rule 12b-1 distribution plans, expense limitation/waiver arrangements, offering costs, shareholder and distribution transactions, and related presentation and disclosure. Its core rules: affiliate payments and gains/losses on non-conforming investments are combined in one line within net realized/unrealized gains (losses) and quantified in the financial highlights (946-20-45-1; 946-20-50-2); a fund with an enhanced 12b-1 plan (or a board-contingent plan once the board commits) accrues a liability and expense for the distributor's excess distribution costs (946-20-25-3), while an excess of fees collected over distributor costs may never be booked as an asset (946-20-45-2). Offering costs are charged to paid-in capital for closed-end funds, partnerships and unit investment trusts, but deferred and amortized straight-line over 12 months for open-end funds and continuously offered closed-end funds (946-20-25-5 through 25-6; 35-5; 35-6).

ASC 958-20 governs accounting by two NFPs that are "financially interrelated" — one entity can influence the other's operating and financial decisions AND one has an ongoing, residual economic interest in the other's net assets (958-20-15-2). When a donor transfers assets to a recipient entity (e.g., a fundraising foundation) for a financially interrelated specified beneficiary and the recipient is not a trustee, the recipient recognizes contribution revenue on receipt (958-20-25-1) and the beneficiary recognizes an interest in the recipient's net assets, adjusted for its share of changes in those net assets in a manner similar to the equity method (958-20-25-2; 35-1). Transfers in which the resource provider names itself or an affiliate as beneficiary and expects no repayment are "equity transactions" reported as a separate line in the statement of activities (958-20-25-4; 45-1).

ASC 958-30 governs how a not-for-profit entity accounts for split-interest agreements—trusts or similar arrangements (charitable lead/remainder annuity trusts and unitrusts, charitable gift annuities, pooled income funds) in which the NFP shares the benefits of donated assets with other, usually non-charitable, beneficiaries. Revocable agreements are treated as intentions to give (assets recorded as a refundable advance); irrevocable agreements are recognized on execution at fair value, with contribution revenue equal to the assets received less the fair value of the obligation to other beneficiaries. When a third party holds the assets, the NFP instead recognizes a beneficial interest at fair value, and the liability side of period-certain, variable-payment agreements may contain a bifurcable embedded derivative under Topic 815.

ASC 970-10 is the Overall subtopic of the Real Estate—General Topic; it maps the industry's guidance (statement of cash flows, equity method/joint ventures, other assets and deferred costs, PP&E, debt, other expenses, consolidation, interest) and sets the pervasive scope. The Topic supplies only incremental industry-specific guidance and applies to all entities with productive activities relating to real property, excluding property used primarily in the entity's non-real estate operations (970-10-15-3). Its guidance runs in three Subsections: General (real estate ventures, partnerships, joint ventures, tax increment financing entities), Real Estate Syndication (income recognition from syndication activities), and Real Estate Project Costs (acquisition, development, construction, selling and rental costs).

ASC 976-10 is the Overall subtopic of the Real Estate—Retail Land Topic, which provides incremental industry-specific guidance for retail land sales — high-volume sales of lots subdivided from large tracts of land, characterized by very small down payments and a sales contract or buyer's note for the balance. It defines the scope of the Topic (entities selling such lots on a volume basis where the note could not be sold to a bank without substantial discount and the seller cannot enforce against the buyer's general credit) and lists the transactions excluded from that scope. Entities in scope must also apply all other applicable GAAP not contained in this Topic.

ASC 978-10 is the Overall subtopic for real estate time-sharing activities, describing the scope of the industry guidance and the transaction structures it covers. It applies to all entities that sell real estate time-share interests — fee simple sales, sales where title remains with or reverts to the seller, and reseller transactions — but not to time-sharing in other long-lived assets like cruise ships or corporate jets. It also supplies the tests for determining what constitutes real estate (including integral equipment) and requires that each phase of a time-share project be delineated at the outset and accounted for separately.

ASC 980-10 sets the overall scope and framework for accounting by entities with rate-regulated operations. Because regulators sometimes allow costs into rates in a period different from when an unregulated entity would expense them, the rate-making process can create assets (regulatory assets), reduce assets, or create liabilities; an incurred cost the regulator permits to be recovered in a future period is accounted for like a cost reimbursable under a cost-reimbursement-type contract (980-10-05-5, 05-6). The Topic applies only to operations meeting the three criteria in 980-10-15-2 and provides incremental industry guidance that overrides conflicting guidance elsewhere in the Codification.

ASC 985-10 is the Overall subtopic of the Software Topic, which sets the scope umbrella for the industry-specific software guidance (costs of software to be sold, leased, or marketed; inventory; intangibles—goodwill and other; provision for losses; cost of sales and services; and research and development). The Topic provides only incremental industry-specific guidance—entities within its scope must also apply all other applicable GAAP (985-10-15-1). It applies to all entities and to computer software to be sold, leased, or otherwise marketed as a separate product or as part of a product or process (985-10-15-2 through 15-3).

ASC 985-20 governs the accounting for costs of computer software to be sold, leased, or otherwise marketed, whether internally developed or purchased. All costs incurred to establish technological feasibility are research and development expensed as incurred (985-20-25-1); costs of producing product masters after technological feasibility is established are capitalized (985-20-25-3) and capitalization ceases when the product is available for general release (985-20-25-6). Capitalized amounts are amortized product-by-product at the greater of the revenue-ratio or straight-line amount (985-20-35-1) and are written down to net realizable value at each balance sheet date (985-20-35-4).