Perspective and Issues


Scope and scope exceptions

Definitions of Terms

Concepts, Rules, and Examples

ASC 720-15, Start-up Costs

ASC 720-30, Real and Personal Property Taxes

Example of accrued real estate taxes

ASC 730-35, Advertising Costs



ASC 720, Other Expenses, contains nine subtopics:

  • ASC 720-10, Overall, which merely lists the other subtopics
  • ASC 720-15, Start-Up Costs
  • ASC 720-20, Insurance Costs
  • ASC 720-25, Contributions Made
  • ASC 720-30, Real and Personal Property Taxes
  • ASC 720-35, Advertising Costs
  • ASC 720-40, Electronic Equipment Waste Obligations
  • ASC 720-45, Business and Technology Reengineering
  • ASC 720-50, Fees Paid to the Federal Government by Pharmaceutical Manufacturers and Health Insurers.

Scope and Scope Exceptions

ASC 720-15. ASC 720-15 applies to all nongovernmental entities. Routine ongoing efforts to improve existing quality of products, services, or facilities are not start-up costs. The subtopics lists specific activities that are not considered start-up costs and should be accounted for in accordance with other existing authoritative literature.

  1. Ongoing customer acquisition costs, such as policy acquisition costs (see Subtopic 944-30)
  2. Loan origination costs (see Subtopic 310-20)
  3. Activities related to routine, ongoing efforts to refine, enrich, or otherwise improve upon the qualities of an existing product, service, process, or facility
  4. Activities related to mergers or acquisitions

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