39ASC 705 COST OF SALES AND SERVICES
PERSPECTIVE AND ISSUES
Subtopics
ASC 705 contains two subtopics:
- ASC 705-10, Overall, which merely links to guidance in other Codification topics on costs of sales and services.
- ASC 705-20, Accounting for Consideration Received from a Vendor. (ASC 705-10-05-1)
DEFINITIONS OF TERMS
See Appendix A, Definitions of Terms, for terms related to this topic: Cash Consideration, Contract, Customer, Probable, Reseller, Revenue, Stand-Alone Selling Price, and Vendor.
CONCEPTS, RULES, AND EXAMPLES
ASC 705-10, Overall
This subtopic consists solely of links to other subtopics. This is because the asset liability model requires that the applicable guidance be included in other topics:
| Topic | Codification Location | Guidance |
| Inventory | ASC 330-10-35-1A through 35-11 | Adjustments affecting cost of sales and services |
| ASC 330-10-30-1 through 30-13 | Adjustments affecting cost of sales and services resulting from establishing the cost basis and the use of inventory pricing methods | |
| ASC 606-10-32-10 and 606-10-55-22 through 55-29 | Accounting for a sale with a right of return | |
| Other Assets and Deferred Costs—Contracts with Customers | ASC 340-40 | Costs related to a contract with a customer within the scope of ASC 606:
|
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