# ASC 105-10-70: Generally Accepted Accounting Principles — Overall — 70 Grandfathered Guidance Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/105/10/#70-grandfathered-guidance) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T22:51:41.648Z to 2026-09-09T22:51:41.648Z Record version: sha256:494eeae9dd96c18dc662a520d34c28f8b0423da9b4d4ecea3fa2953b8edf2177 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 105-10-70: 70 Grandfathered Guidance [Read section](https://asc.understandingaccounting.org/asc/105/10/#70-grandfathered-guidance) SEC content: no ##### [105-10-70-1](https://asc.understandingaccounting.org/asc/105/10/#105-10-70-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:41.648Z to 2026-09-09T22:51:41.648Z Record version: sha256:8825634a2a447e95e5427b912e49836fb260c517a16eb91435ac8578beeb1b4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial Accounting Standards Board (FASB) Statement No. 162, _The Hierarchy of Generally Accepted Accounting Principles,_ contained a description of the categories of the generally accepted accounting principles (GAAP) hierarchy that existed before the Codification. An entity that has followed, and continues to follow, an accounting treatment that was previously in category (_c_) or category (_d_) of that GAAP hierarchy as of March 15, 1992, need not change to an accounting treatment in a higher category ((_b_) or (_c_)) of that hierarchy if its effective date was before March 15, 1992. For example, a [nongovernmental entity](https://asc.understandingaccounting.org/glossary/n/#nongovernmental-entity "An entity that is not required to issue financial reports in accordance with guidance promulgated by the Governmental Accounting Standards Board or the Federal Accounting Standards Advisory Board.") that followed a prevalent industry practice (category (_d_)) as of March 15, 1992, does not have to change to an accounting treatment included in a standard in category (_b_) or category (_c_) (such as an accounting principle in a cleared American Institute of Certified Public Accountants \[AICPA\] Statement of Position or Accounting Standards Executive Committee Practice Bulletin) whose effective date is before March 15, 1992. For standards whose effective date is after March 15, 1992, and for entities initially applying an accounting principle after March 15, 1992 (except for Emerging Issues Task Force consensus positions issued before March 16, 1992, which become effective in the hierarchy for initial application of an accounting principle after March 15, 1993), an entity shall follow guidance in the Codification. ##### [105-10-70-2](https://asc.understandingaccounting.org/asc/105/10/#105-10-70-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:41.648Z to 2026-09-09T22:51:41.648Z Record version: sha256:98886e3306b0dffb6d36cccfcd1229653ff1dbd6698e36b0ee96f958c415943d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain accounting standards have allowed for the continued application of superseded accounting standards for transactions that have an ongoing effect in an entity's financial statements. That superseded guidance has not been included in the Codification, shall be considered grandfathered, and shall continue to remain authoritative for those transactions after the effective date of FASB Statement No. 168, _The_ FASB Accounting Standards Codification® _and the Hierarchy of Generally Accepted Accounting Principles._ While not comprehensive, the following are examples of such grandfathered items: 1. a Pooling of interests in a business combination (originally addressed by APB Opinion No. 16, _Business Combinations_) described in paragraph B217 of FASB Statement No. 141, _Business Combinations_ 2. b Pension transition assets or obligations described in paragraph 77 of FASB Statement No. 87, _Employers' Accounting for Pensions_ 3. c Employee stock ownership plan shares (originally addressed by AICPA Statement of Position 76-3, _Accounting Practices for Certain Employee Stock Ownership Plans_) purchased by, and held as of, December 31, 1992, as described in paragraphs 97 and 102 of AICPA Statement of Position 93-6, _Employers' Accounting for Employee Stock Ownership Plans_ 4. d Loans restructured in a troubled debt restructuring before the effective date of FASB Statement No. 114, _Accounting by Creditors for Impairment of a Loan,_ described in paragraph 24 of FASB Statement No. 118, _Accounting by Creditors for Impairment of a Loan—Income Recognition and Disclosures_ 5. e Stock compensation for [nonpublic](https://asc.understandingaccounting.org/glossary/n/#nonpublic-entity "Any entity that does not meet any of the following conditions: Its debt or equity securities trade in a public market either on a stock exchange (domestic or foreign) or in an over-the-counter market, including securities quoted only locally or regionally. It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It files with a regulatory agency in preparation for the sale of any class of debt or equity securities in a public market. It is required to file or furnish financial statements with the Securities and Exchange Commission. It is controlled by an entity covered by criteria (a) through (d).") and other entities (originally addressed by FASB Statement No. 123, _Accounting for Stock-Based Compensation,_ or APB Opinion No. 25, _Accounting for Stock Issued to Employees_) described in paragraph 83 of FASB Statement No. 123 (revised 2004), _Share-Based Payment_ 6. f For nonpublic entities electing the deferral of FASB Interpretation No. 48, _Accounting for Uncertainty in Income Taxes,_ FASB Statement No. 109, _Accounting for Income Taxes,_ and related standards 7. g For business combinations with an acquisition date before the first annual reporting period beginning on or after December 15, 2008, Statement 141 and any other relevant standards 8. h For a combination of a not-for-profit entity with one or more other not-for-profit entities, businesses, or nonprofit activities, Opinion 16, if the combination occurred before the effective dates of FASB Statement No. 164, _Not-for-Profit Entities: Mergers and Acquisitions_. 9. i [Subparagraph superseded by Accounting Standards Update No. 2010-07](https://asc.understandingaccounting.org/updates/asu-2010-07/).