Wiley GAAP 2019

49ASC 808 COLLABORATIVE ARRANGEMENTS

PERSPECTIVE AND ISSUES

Subtopic

ASC 808-10, Collaborative Arrangements, contains one subtopic:

• ASC 808-10, Overall, which defines collaborative arrangements and gives reporting requirements.

Scope

Transactions and Events.

ASC 808-10 applies to all collaborative arrangements, except for those addressed in other topics. Specifically excluded from ASC 808 are arrangements for which the accounting treatment is addressed by other authoritative literature. (ASC 808-10-15-3)

It is important to note that ASC 808 does not address recognition or measurement of collaborative arrangements, including guidance regarding matters such as:

• Determining the appropriate units of accounting
• Determining the appropriate recognition requirements for a given unit of accounting
• The timing of when recognition criteria are considered to have been met (ASC 808- 10-15-5)

A collaborative arrangement is not primarily conducted through a separate legal entity created for it. If a part of the arrangement is conducted through a legal entity, that part is accounted for under ASC 810, Consolidations, ASC 323-20 on Investments—Equity Method and Joint Ventures, or other relevant accounting literature. A collaborative arrangement may involve various types of activities conducted or supervised by the participants. In some collaborative arrangements, a legal entity may be used for certain specified activities or in certain geographic jurisdictions due, for example, to ...