Add to favorites
Certain research and development transactions may be structured as collaborative arrangements subject to the guidance in ASC 808, Collaborative Arrangements.
Reporting entities should evaluate payments related to collaborative arrangements based on the nature of the arrangement, the nature of the reporting entity’s business operations, and the contractual terms of the arrangement. If there is other guidance that is applicable to payments in collaborative arrangements, reporting entities should follow that guidance (e.g., guidance on customer payments in ASC 605-50) for determining the income statement classification. If the payments are not in the scope of other guidance, or if there is no appropriate analogy, reporting entities should make a consistently-applied accounting policy election, and should consider disclosure of that policy election.
Reporting entities are required to disclose the following information about collaborative agreements in the scope of ASC 808.

ASC 808-10-50-1

In the period in which a collaborative arrangement is entered into (which may be an interim period) and all annual periods thereafter, a participant to a collaborative arrangement shall disclose all of the following:
  1. Information about the nature and purpose of its collaborative arrangements
  2. Its rights and obligations under the collaborative arrangements
  3. The accounting policy for collaborative arrangements in accordance with Topic 235
  4. The income statement classification and amounts attributable to transactions arising from the collaborative arrangement between participants for each period an income statement is presented.
Information related to individually significant collaborative arrangements shall be disclosed separately.

New guidance
ASC 808 precludes entities from presenting transactions with collaborative partners outside the scope of ASC 606 with revenue subject to ASC 606; however, ASC 808 does not prescribe any specific presentation for these transactions. Similar to the underlying accounting framework, ASC 808 permits entities to present transactions based on analogy to other authoritative guidance, or a reasonable, rational, and consistently applied policy election, if there is no appropriate analogy. We believe there will be instances when it will be acceptable to present transactions in the scope of ASC 808 as revenue; however, these amounts cannot be included with revenue in the scope of ASC 606. Refer to RR 2.4.1 for further discussion about collaborative arrangements.
Expand

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

Your session has expired

Please use the button below to sign in again.
If this problem persists please contact support.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide