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 depreciated. 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 searches. • Costs incurred to construct a backplant (a title plant that predates the time span of an existing title plant) must also be capitalized.