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ASC 350 — Intangibles — Goodwill and Other

Overview

The full text of ASC 350, Intangibles — Goodwill and Other, can be found in the FASB Accounting Standards Codification (link to the FASB's Web site; registration required). Also, the full text of the Codification and Deloitte-authored Q&As related to the Codification are available in the Deloitte Accounting Research Tool (DART) Web site (subscription required).

ASC 350 comprises five Subtopics (Overall, Goodwill, General Intangibles Other than Goodwill, Internal-Use Software, and Website Development Costs). Below is an overview of each Subtopic.

 

350-10 Overall

ASC 350-10 provides an overview of Topic 350 and the Subtopics within Topic 250.

 

350-20 Goodwill

ASC 350-20 notes the following:

 

This Subtopic addresses financial accounting and reporting for goodwill subsequent to its acquisition and for the cost of internally developing goodwill.

While goodwill is an intangible asset, the term intangible asset is used in this Subtopic to refer to an intangible asset other than goodwill.

350-30 General Intangibles Other than Goodwill

ASC 350-30 notes the following:

 

This Subtopic addresses financial accounting and reporting for intangible assets (other than goodwill) acquired individually or with a group of other assets. However, it does not discuss the recognition and initial measurement of intangible assets acquired in a business combination or in an acquisition by a not-for-profit entity. That acquisition guidance is provided in Subtopics 805-20 and 958-805. This Subtopic also addresses financial accounting and reporting for intangible assets after their acquisition, including intangible assets acquired in a business combination or an acquisition by a not-for-profit entity.

350-40 Internal-Use Software

ASC 350-40 notes the following:

 

This Subtopic provides guidance on accounting for the cost of computer software developed or obtained for internal use and for determining whether the software is for internal use.

Internal-use software has both of the following characteristics:

  1. The software is acquired, internally developed, or modified solely to meet the entity’s internal needs.
  2. During the software’s development or modification, no substantive plan exists or is being developed to market the software externally.

350-50 Website Development Costs

ASC 350-50 notes the following:

 

This Subtopic provides guidance on accounting for costs incurred to develop a website, including whether to capitalize or expense the following types of costs:

  1. Costs incurred in the planning stage
  2. Costs incurred in the website application and infrastructure development stage
  3. Costs incurred to develop graphics
  4. Costs incurred to develop content
  5. Costs incurred in the operating stage.

Content from the FASB Accounting Standards Codification® included at http://www.usgaapplus.com is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission.

FASB Accounting Standards Updates

    The following ASUs amended the guidance in this Topic:

    Proposed FASB Accounting Standards Updates

    No current proposed ASUs on Topic 350.

    Related resources

    See our comprehensive collection of news and publications related to intangibles — goodwill and other.

    International guidance

    For the IASB's guidance on this topic, see IAS 38, Intangible Assets.

    Correction list for hyphenation

    These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.