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h. Other Accounting Guidance:
• ASC 980-605-25 states that Nonutility Generators (NUG) are to
recognize the lesser of (1) the amount billable under the contract or (2)
a formula-based pricing arrangement, as revenue.
• The formula-based pricing arrangement is determined by the kilowatthours (kwhs) made available during the period multiplied by the
estimated average revenue per kwh over the term of the contract for
the fixed or scheduled price period of the contract.
• Revenue is not to be recognized utilizing the formula-based pricing
arrangement if its only purpose is to establish liquidating damages.
In this Section:
15. Perspective and Issues/Definitions of Terms/Concepts,
Rules, and Examples
Title Plant
a. Acquisition Costs
b. Operating Costs
c. Reporting Title Plant Sales
Specialized Industry GAAP: Title Plant:
Perspective and Issues
• ASC 950-350, Financial Services—Title Plant, presents accounting
and reporting standards for costs relating to the construction and
operation of title plants.
• A title plant comprises a record of all transactions or conditions that
affect titles to land located in a specified area.
• This pronouncement applies to enterprises such as title insurance
companies, title abstract companies, and title agents that use a title
plant in their operations.
• The standard provides that costs directly incurred to construct a title
plant are to be capitalized when the entity can use the title plant to do
title searches and that such capitalized costs are not normally
Specialized Industry GAAP: Title Plant:
Definition of Terms
• Title plant
a. Acquisition Costs:
• The cost of constructing a title plant includes the cost of
obtaining, organizing, and summarizing historical
information pertaining to a particular tract of land.
• Costs incurred to assemble a title plant are to be
capitalized until the record is usable for conducting title
• Costs incurred to construct a backplant (a title plant that
predates the time span of an existing title plant) must
also be capitalized.

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