# ASC 205-10: Presentation of Financial Statements — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/205/10/) 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): 2026-09-09T22:51:47.839Z to 2026-09-09T22:52:44.916Z Record version: sha256:34d8feaa45efaa35528017d1679d1e06ac2fa9641df7b38837d044dbe0b3794b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10: Presentation of Financial Statements — Overall ### Machine-generated study aids ```json { "summary": "ASC 205-10 sets the pervasive scope for the Presentation of Financial Statements Topic (applying to both business entities and NFPs) and governs comparative financial statements. It explains that presenting statements for a series of periods is more meaningful than a single period, lists the elements of a full set of financial statements, and requires that prior-period figures actually be comparable, with any change in presentation basis or reclassification explained.", "key_points": [ "Topic 205 comprises four subtopics: Overall, Discontinued Operations, Liquidation Basis of Accounting, and Going Concern (205-10-05-1), and the Overall Subtopic's scope applies pervasively to all of them (205-10-15-1).", "The guidance applies to both business entities and not-for-profit entities (205-10-15-2).", "A full set of financial statements shall show financial position at period-end, earnings (net income), comprehensive income (if required to report it), cash flows, and investments by and distributions to owners (205-10-45-1A).", "It is ordinarily desirable that the statement of financial position, income statement, and statement of changes in equity be presented for one or more preceding years as well as the current year (205-10-45-2).", "Prior-year comparative figures must in fact be comparable with the most recent period, and any exceptions to comparability must be clearly brought out as described in Topic 250 (205-10-45-3).", "Changes in the manner or basis of presenting corresponding items for two or more periods (including reclassifications) must be explained, because any change in practice affecting comparability must be disclosed (205-10-50-1).", "Notes, explanations, and accountants' report qualifications from preceding years must be repeated or at least referred to in the comparative statements to the extent they remain significant (205-10-45-4; 205-10-50-2)." ], "categories": [ "Presentation", "Financial statement presentation", "Disclosure" ], "audience_level": "introductory", "student_note": "This is the foundational \"what goes in a complete set of financial statements\" guidance and the source of the comparability/reclassification disclosure requirement. A common misunderstanding is thinking GAAP mandates comparative statements — 205-10-45-2 says it is \"ordinarily desirable,\" while SEC rules (Regulation S-X) are what actually compel comparative presentation for registrants.", "related_topics": [ "205-20", "205-30", "205-40", "220-10", "250-10", "830-30" ], "key_concepts": [ "comparative financial statements", "full set of financial statements", "comparability", "reclassification disclosure", "statement of financial position", "comprehensive income", "pervasive scope", "not-for-profit entities" ] } ``` Source downloaded (UTC): 2026-09-09T22:51:47.839Z to 2026-09-09T22:51:47.839Z Record version: sha256:5774951e8aa551ce437017cc1c76a97f6c2cfc061871f6cfafedae5992762fe5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/205/10/#00-status) SEC content: no ##### [205-10-00-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:47.839Z to 2026-09-09T22:51:47.839Z Record version: sha256:62fdf0ec68e3db5a864b1c8c4a8ec7b8f0f5c8585f14a20eafc636471bc2522b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
BusinessAddedAccounting Standards Update No. 2014-0804/10/2014
Comprehensive IncomeAddedAccounting Standards Update No. 2011-0506/16/2011
Corporate Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Nonprofit ActivityAddedAccounting Standards Update No. 2014-0804/10/2014
205-10-05-1AmendedMaintenance Update 2025-05 (PDF)06/20/2025
205-10-05-1AmendedAccounting Standards Update No. 2013-0704/22/2013
205-10-05-3AmendedAccounting Standards Update No. 2023-0508/23/2023
205-10-05-3AmendedAccounting Standards Update No. 2014-0804/10/2014
205-10-05-3AAddedAccounting Standards Update No. 2014-0804/10/2014
205-10-05-4AddedAccounting Standards Update No. 2013-0704/22/2013
205-10-45-1AAmendedAccounting Standards Update No. 2025-1112/08/2025
205-10-45-1AAddedAccounting Standards Update No. 2011-0506/16/2011
205-10-45-2AmendedAccounting Standards Update No. 2025-1212/17/2025
205-10-45-4AmendedAccounting Standards Update No. 2020-1010/29/2020
205-10-50-1AmendedAccounting Standards Update No. 2025-1112/08/2025
205-10-50-2AddedAccounting Standards Update No. 2020-1010/29/2020
Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:b62ed5e2b74548fff19dad400f584b29147f4ffd236dda224dc7031c0d4447af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/205/10/#05-overview-and-background) SEC content: no ##### [205-10-05-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:03b608204ba007b17ddf11bc64e62299ace36cefbfa0d1cb002671cda280e76b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Presentation of Financial Statements Topic includes the following Subtopics: 1. a Overall 2. b Discontinued Operations 3. c Liquidation Basis of Accounting 4. d Going Concern. ##### [205-10-05-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:bc7aaca0a2293f7a5dbf792efeaae949864b99d11fb021a5a853a0f42f356258 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic describes the benefits of presenting comparative financial statements instead of single-period financial statements, and addresses how the comparative information shall be presented and the required disclosures. ##### [205-10-05-3](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:acad13c450119f908e025c6658204c241cbacab47691bdf2b1e3603b3ecb82ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Discontinued Operations Subtopic discusses the conditions under which either of the following would be reported in an entity's financial statements as a discontinued operation: 1. a A [component of an entity](https://asc.understandingaccounting.org/glossary/c/#component-of-an-entity "A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. A component of an entity may be a reportable segment or an operating segment, a reporting unit, a subsidiary, or an asset group.") that either has been disposed of or is classified as held for sale 2. b A [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") that, on acquisition or upon formation of a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities."), is classified as held for sale. ##### [205-10-05-3A](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-3A) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:b4278c26cd082595c5c28a8f4f3afd042f008edb4bd9128ee74089c71453b6f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a component of an entity that either has been disposed of or is classified as held for sale does not meet the conditions to be reported in discontinued operations, Section 360-10-45 on other presentation matters of property, plant, and equipment provides guidance on presenting disposal gains and losses and impairment losses on assets classified as held for sale. ##### [205-10-05-4](https://asc.understandingaccounting.org/asc/205/10/#205-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:50.899Z to 2026-09-09T22:51:50.899Z Record version: sha256:33cf4175a3b804c60e38f7d7daab87f4c4f84e1344c47c4ab3af989e4276978e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Liquidation Basis of Accounting Subtopic provides guidance on when and how an entity should prepare its financial statements using the liquidation basis of accounting and describes the related disclosures that should be made. Source downloaded (UTC): 2026-09-09T22:51:54.072Z to 2026-09-09T22:51:54.072Z Record version: sha256:08854faa1e00e933603302ea88f88abba45b6fda20031884aa8a7c30aebaeb22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/205/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [205-10-15-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:54.072Z to 2026-09-09T22:51:54.072Z Record version: sha256:37f4b2230a245b42e49a6cd5d347b24adebc31330cfb1a5c21dc5ed3c287824a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Presentation of Financial Statements Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Presentation of Financial Statements Topic. #### Entities ##### [205-10-15-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:54.072Z to 2026-09-09T22:51:54.072Z Record version: sha256:ccb21da896865b1fa8277cbd964384e5596ce766342f3c066dc394428619301f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Presentation of Financial Statements Topic applies to business entities and not-for-profit entities (NFPs). Source downloaded (UTC): 2026-09-09T22:51:59.498Z to 2026-09-09T22:51:59.498Z Record version: sha256:8e2f8da529d5e44f22e2430c8aee842975cf1d4403baa481a2c8169f6e37be68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/205/10/#45-other-presentation-matters) SEC content: no #### Comparative Financial Statements ##### [205-10-45-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:59.498Z to 2026-09-09T22:51:59.498Z Record version: sha256:d0d9139b13d4c0c901565f3a6ce1462f3ec50e8fe38b35b2da951ee38b7f97f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The presentation of comparative financial statements in annual and other reports enhances the usefulness of such reports and brings out more clearly the nature and trends of current changes affecting the entity. Such presentation emphasizes the fact that statements for a series of periods are far more significant than those for a single period and that the accounts for one period are but an installment of what is essentially a continuous history. ##### [205-10-45-1A](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-1A) Pending content: yes Source downloaded (UTC): 2026-09-09T22:51:59.498Z to 2026-09-09T22:51:59.498Z Record version: sha256:54a7fbfe2f448e498adf287c798ea35f0960d9bbf16c07919366e81f72a45301 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A full set of financial statements for a period shall show all of the following: 1. a Financial position at the end of the period 2. b Earnings ([net income](https://asc.understandingaccounting.org/glossary/n/#net-income "A measure of financial performance resulting from the aggregation of revenues, expenses, gains, and losses that are not items of other comprehensive income. A variety of other terms such as net earnings or earnings may be used to describe net income.")) for the period, (which may be presented as a separate statement or within a continuous statement of [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income.") \[see paragraph [220-10-45-1A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1A)\]) 3. c Comprehensive income (total nonowner changes in equity) for the period in one statement or two separate but consecutive statements (if the reporting entity is required to report comprehensive income, see paragraph [220-10-15-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-3)) 4. d Cash flows during the period 5. e Investments by and distributions to owners during the period. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)A full set of financial statements for a period shall show all of the following (unless not required to do so by other Topics): 1. a Financial position at the end of the period 2. b Earnings ([net income](https://asc.understandingaccounting.org/glossary/n/#net-income "A measure of financial performance resulting from the aggregation of revenues, expenses, gains, and losses that are not items of other comprehensive income. A variety of other terms such as net earnings or earnings may be used to describe net income.")) for the period, (which may be presented as a separate statement or within a continuous statement of [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income.") \[see paragraph [220-10-45-1A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1A)\]) 3. c Comprehensive income (total nonowner changes in equity) for the period in one statement or two separate but consecutive statements (if the reporting entity is required to report comprehensive income, see paragraph [220-10-15-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-3)) 4. d Cash flows during the period 5. e Investments by and distributions to owners during the period. ##### [205-10-45-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-2) Pending content: yes Source downloaded (UTC): 2026-09-09T22:51:59.498Z to 2026-09-09T22:51:59.498Z Record version: sha256:f53becf5ce2590a8f440f767236043edd83a743de5b63552d310e95688c2764e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In any one year it is ordinarily desirable that the statement of financial position, the income statement, and the statement of changes in equity be presented for one or more preceding years, as well as for the current year. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)In any one year it is ordinarily desirable that the financial statements be presented for one or more preceding years, as well as for the current year. ##### [205-10-45-3](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:59.498Z to 2026-09-09T22:51:59.498Z Record version: sha256:0e1e5bcb715c22f88ac50c47f31aec56f3f0f06c2f23749e5ada34f8cd495695 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prior-year figures shown for comparative purposes shall in fact be comparable with those shown for the most recent period. Any exceptions to comparability shall be clearly brought out as described in Topic 250. ##### [205-10-45-4](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:51:59.498Z to 2026-09-09T22:51:59.498Z Record version: sha256:4e8a6fcf70c2a47cd80038f5c8046121fbb650cc255972e9d4fd0c9207bfc81f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Notes to financial statements, explanations, and accountants' reports containing qualifications that appeared on the statements for the preceding years shall be repeated, or at least referred to, in the comparative statements to the extent that they continue to be of significance. (See paragraph [205-10-50-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-50-2).) Source downloaded (UTC): 2026-09-09T22:52:01.583Z to 2026-09-09T22:52:01.583Z Record version: sha256:407f94dd9612977398ebb37761753a68d2eb0857787791b092518a01eac79f93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/205/10/#50-disclosure) SEC content: no #### Changes Affecting Comparability ##### [205-10-50-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-50-1) Pending content: yes Source downloaded (UTC): 2026-09-09T22:52:01.583Z to 2026-09-09T22:52:01.583Z Record version: sha256:0364e92d1d4d27a9d0557aa66a945c37b7454b9531c7f8decdc50a3c17bed647 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, because of reclassifications or for other reasons, changes have occurred in the manner of or basis for presenting corresponding items for two or more periods, information shall be furnished that will explain the change. This procedure is in conformity with the well-recognized principle that any change in practice that affects comparability of financial statements shall be disclosed. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If, because of reclassifications or for other reasons, changes have occurred in the manner of or basis for presenting corresponding items for two or more periods, information shall be furnished for interim and annual reporting periods that will explain the change. This procedure is in conformity with the well-recognized principle that any change in practice that affects comparability of financial statements shall be disclosed. ##### [205-10-50-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:01.583Z to 2026-09-09T22:52:01.583Z Record version: sha256:529008ad8a762335c7d6008a3d058d549ee57817962f411edba3d9773bdf5916 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Notes to financial statements, explanations, and accountants' reports containing qualifications that appeared on the statements for the preceding years shall be repeated, or at least referred to, in the statements to the extent that they continue to be of significance. (See paragraph [Check output number.205-10-45-4](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-4).) Source downloaded (UTC): 2026-09-09T22:52:03.345Z to 2026-09-09T22:52:03.345Z Record version: sha256:a3021a8f97b9fc6d1352005a233d2f8e4735291e46914c3a64e0bc248d18867b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/205/10/#60-relationships) SEC content: no #### Foreign Currency Matters ##### [205-10-60-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:03.345Z to 2026-09-09T22:52:03.345Z Record version: sha256:14f9a0015bd705c9a39fc052f7c0c9b20af35bd514c35fa02fee3ede8588124e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on translating foreign currency statements that are incorporated in the financial statements of a reporting entity by consolidation, combination, or the equity method of accounting, see Subtopic 830-30. Source downloaded (UTC): 2026-09-09T22:52:09.215Z to 2026-09-09T22:52:09.215Z Record version: sha256:800335efa9b18a138f727c1d3988bb275de91bc09e96b874774e5316bda65dbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/205/10/#sec-00-status) SEC content: yes ##### [205-10-S00-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:09.215Z to 2026-09-09T22:52:09.215Z Record version: sha256:95479ef8d0dd2b61ccac11f33a4d04a6aaeafb4c481cc711e7aea7c72f71ebee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
205-10-S99-1 through S99-6
AmendedAccounting Standards Update No. 2019-0707/26/2019
205-10-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
205-10-S99-5AmendedAccounting Standards Update No. 2021-0608/09/2021
205-10-S99-6AmendedAccounting Standards Update No. 2010-2108/02/2010
205-10-S99-8AmendedAccounting Standards Update No. 2012-0308/27/2012
Source downloaded (UTC): 2026-09-09T22:52:11.847Z to 2026-09-09T22:52:11.847Z Record version: sha256:ddbd2c89b14fa76acf046fab1837fef28b2769278e91e4926eec9a1a1a6b309b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-S15: SEC 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/205/10/#sec-15-scope-and-scope-exceptions) SEC content: yes #### Entities ##### [205-10-S15-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-S15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:11.847Z to 2026-09-09T22:52:11.847Z Record version: sha256:a625f4051d09e6461f4e1c6077e02cc922d01246edb3a5b53e7e4858bc695489 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-5](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-5), Regulation S-X Rule 5-01, for entities to which this Subtopic applies. Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:34ad9807fa7be7ec2219f625a48248125a4bf7370d8bfc2cc30f7a7364ee5a11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/205/10/#sec-45-other-presentation-matters) SEC content: yes #### Form and Order of Financial Statements ##### [205-10-S45-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:48d1b6c23df0ce215b8ae96c22156954fee29d859e3ce0a63c7717d948f11183 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-1(a)](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-1), Regulation S-X Rule 4-01(a), for requirements for form and order of financial statements and terminology used in financial statements. ##### [205-10-S45-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:7b05bc02ed866873f204e0ca829f81e14e5efbacb8851677e5f7621163db06e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-1(b)](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-1), Regulation S-X Rule 4-01(b), for requirements for presentation of dollar amounts required to be shown in the financial statements. ##### [205-10-S45-3](https://asc.understandingaccounting.org/asc/205/10/#205-10-S45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:5b17ec911d995a245a8771c8afc8308f76c00e7c2386e4af82ee18fc974af07f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-9](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-9), SAB Topic 11.E, for SEC Staff views on chronological ordering of data. ##### [205-10-S45-4](https://asc.understandingaccounting.org/asc/205/10/#205-10-S45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:17d2db155656d5fe3433a4b8fe040032b47b9436a76f11baee725b9ad7863a1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-2), Regulation S-X Rule 4-02, for requirements for omission of certain items not considered material. ##### [205-10-S45-5](https://asc.understandingaccounting.org/asc/205/10/#205-10-S45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:29994ff47d444790ede97920036dae4342d8b42c2782b0ba4c10b6119c25f84f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-3](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-3), Regulation S-X Rule 4-03. for requirements for inapplicable captions and omission of unrequired or inapplicable financial statements. ##### [205-10-S45-6](https://asc.understandingaccounting.org/asc/205/10/#205-10-S45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:0457059d5ff4b0eab196564f03cdd241db5fc52551438df5b7d7b362b4634f06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-4](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-4), Regulation S-X Rule 4-04, for rules pertaining to the omission of substantially identical footnotes. #### Supplemental Schedules ##### [205-10-S45-7](https://asc.understandingaccounting.org/asc/205/10/#205-10-S45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:17.223Z to 2026-09-09T22:52:17.223Z Record version: sha256:cbe9c61c08796aebdb3200b2b4de63e29113e1065b54968c0dd7749196b434ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-6(a)](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-6), Regulation S-X Rule 5-04(a), regarding requirements to provide supplemental schedules. Source downloaded (UTC): 2026-09-09T22:52:19.055Z to 2026-09-09T22:52:19.055Z Record version: sha256:050405332241b84709762fb317db218660029de3c2397b7a643ac62c57c18066 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/205/10/#sec-50-disclosure) SEC content: yes #### Supplemental Schedules ##### [205-10-S50-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:19.055Z to 2026-09-09T22:52:19.055Z Record version: sha256:fb2c9e4bb4aff7e46d93d3cdd241f748af4e9f589678b0d073b36c45d960600f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-6(c)](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-6), Regulation S-X Rule 5-04(c), for requirements for Supplemental Schedules I - IV. #### Changes Affecting Comparability ##### [205-10-S50-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:19.055Z to 2026-09-09T22:52:19.055Z Record version: sha256:cb5902d96ee2c8ad90cd56db97164195a9b07c3ce4db419d7eba365dc78dafcd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-7](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-7), SAB Topic 1.B.2, for SEC Staff views on when historical financial statements are not indicative of the ongoing entity. Source downloaded (UTC): 2026-09-09T22:52:21.394Z to 2026-09-09T22:52:21.394Z Record version: sha256:6e0296829928d3945d45ab76cc8ddb2583d54b48dbc172613a0796fa1c5ad51f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/205/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes #### Parent Entity Disclosures and Supplemental Schedules ##### [205-10-S55-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:21.394Z to 2026-09-09T22:52:21.394Z Record version: sha256:dbe1e6e19053e3af9d4d48051d810b13f70bd03143fa302000b454d21074f83c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08(e)(3), for requirements for computation of [restricted net assets](https://asc.understandingaccounting.org/glossary/r/#restricted-net-assets "See paragraph 235-10-S99-1, Regulation S-X Rule 4-08(e)(3), for definition of restricted net assets for purposes of the restricted net asset test."). ##### [205-10-S55-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-S55-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:21.394Z to 2026-09-09T22:52:21.394Z Record version: sha256:ee6c09ba54f89259732c6a1702cc95ec5c444968636cca9a975302603d6a2e1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-8](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-8), SAB Topic 6.K.2, for SEC Staff views on the computation of restricted net assets of subsidiaries and application of tests for parent entity disclosures. Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:731bb576a813870b296834e777bbd959784078b954476d92241f69050156798f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/205/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [205-10-S99-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:a2626b4e259580e9e81c44d9a9e3460cf0cf853051634a4d706a3bbe0fa660f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 4-01, Form, Order and Terminology (17 CFR 210.4-01). - (a) Financial statements should be filed in such form and order, and should use such generally accepted terminology, as will best indicate their significance and character in the light of the provisions applicable thereto. The information required with respect to any statement shall be furnished as a minimum requirement to which shall be added such further material information as is necessary to make the required statements, in the light of the circumstances under which they are made, not misleading. - (1) Financial statements filed with the Commission which are not prepared in accordance with generally accepted accounting principles will be presumed to be misleading or inaccurate, despite footnote or other disclosures, unless the Commission has otherwise provided. This article and other articles of Regulation S-X provide clarification of certain disclosures which must be included in any event, in financial statements filed with the Commission. - (2) In all filings of foreign private issuers (see § 230.405 of this chapter), except as stated otherwise in the applicable form, the financial statements may be prepared according to a comprehensive set of accounting principles other than those generally accepted in the United States or International Financial Reporting Standards as issued by the International Accounting Standards Board, if a reconciliation to U.S. Generally Accepted Accounting Principles and the provisions of Regulation S-X of the type specified in Item 18 of Form 20-F (§ 249.220f of this chapter) is also filed as part of the financial statements. Alternatively, the financial statements may be prepared according to U.S. Generally Accepted Accounting Principles or International Financial Reporting Standards as issued by the International Accounting Standards Board. - (b) All money amounts required to be shown in financial statements may be expressed in whole dollars or multiples thereof, as appropriate: _Provided_, That, when stated in other than whole dollars, an indication to that effect is inserted immediately beneath the caption of the statement or schedule, at the top of the money columns, or at an appropriate point in narrative material. - (c) Negative amounts (red figures) shall be shown in a manner which clearly distinguishes the negative attribute. When determining methods of display, consideration should be given to the limitations of reproduction and microfilming processes. - \[45 FR 63669, Sept. 25, 1980, as amended at 47 FR 54767, Dec. 6, 1982; 70 FR 20719, Apr. 21, 2005; 73 FR 953, Jan. 4, 2008; 73 FR 1009, Jan. 4, 2008; 76 FR 50119, Aug. 12, 2011; 83 FR 50200, Oct. 4, 2018\] ##### [205-10-S99-2](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:18c58c01702e1b993ec1fe16f4f91c9716c8fa6e36c17e413c0c815e1397c3a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 4-02, Items Not Material (17 CFR 210.4-02). - If the amount which would otherwise be required to be shown with respect to any item is not material, it need not be separately set forth. The combination of insignificant amounts is permitted. ##### [205-10-S99-3](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:a9d651164d94b945f4b973f775366a800a077d95c58ec12031320258871fe12e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 4-03, Inapplicable Captions and Omission of Unrequired or Inapplicable Financial Statements (17 CFR 210.4-03). - (a) No caption should be shown in any financial statement as to which the items and conditions are not present. - (b) Financial statements not required or inapplicable because the required matter is not present need not be filed. - (c) The reasons for the omission of any required financial statements shall be indicated. ##### [205-10-S99-4](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:06a5f9b850c59013bd9abea6c349be8cdd2195345cfbf19636db0a95290a6ac8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 4-04, Omission of Substantially Identical Notes (17 CFR 210.4-04). - If a note covering substantially the same subject matter is required with respect to two or more financial statements relating to the same or affiliated persons, for which separate sets of notes are presented, the required information may be shown in a note to only one of such statements: Provided, That a clear and specific reference thereto is made in each of the other statements with respect to which the note is required. ##### [205-10-S99-5](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:192732578be125309be96dfe73708829feb1f05d0a9bf5f2157ca08eb21813b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 5-01, Application of §§ 210.5-01 to 210.5-04 (17 CFR 210.5-01). - Sections 210.5-01 to 210.5-04 shall be applicable to financial statements filed for all persons except - (a) Registered investment companies (see §§ 210.6-01 through 210.6-11). - (b) Employee stock purchase, savings and similar plans (see §§ 210.6A-01 to 210.6A-05). - (c) Insurance companies (see §§ 210.7-01 to 210.7-05). - (d) Bank holding companies and banks (see §§ 210.9-01 to 210.9-07). - (e) Brokers and dealers when filing Form X-17A-5 \[249.617\] (see §§ 240.17a-5 and 240.17a-10 under the Securities Exchange Act of 1934). - \[50 FR 49533, Dec. 3, 1985, as amended at 85 FR 54064, Aug. 31, 2020\] ##### [205-10-S99-6](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:5eba280b97b4ab89240c4ce96d75ee06dd43d876143aeac348d092720da77199 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 5-04, What Schedules are to Be Filed (17 CFR 210.5-04). - (a) Except as expressly provided otherwise in the applicable form: - (1) The schedules specified below in this Section as Schedules II and III shall be filed as of the date of the most recent audited balance sheet for each person or group. - (2) Schedule II of this section shall be filed for each period for which an audited statement of comprehensive income is required to be filed for each person or group. - (3) Schedules I and IV shall be filed as of the date and for periods specified in the schedule. - (b) When information is required in schedules for both the registrant and the registrant and its subsidiaries consolidated it may be presented in the form of a single schedule: _Provided_, That items pertaining to the registrant are separately shown and that such single schedule affords a properly summarized presentation of the facts. If the information required by any schedule (including the notes thereto) may be shown in the related financial statement or in a note thereto without making such statement unclear or confusing, that procedure may be followed and the schedule omitted. - (c) The schedules shall be examined by the independent accountant if the related financial statements are so examined. - Schedule I—Condensed financial information of registrant. The schedule prescribed by § 210.12-04 shall be filed when the [restricted net assets](https://asc.understandingaccounting.org/glossary/r/#restricted-net-assets "See paragraph 235-10-S99-1, Regulation S-X Rule 4-08(e)(3), for definition of restricted net assets for purposes of the restricted net asset test.") (§210.1-02(dd)) of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. - Schedule II—Valuation and qualifying accounts. The schedule prescribed by § 210.12-09 shall be filed in support of valuation and qualifying accounts included in each balance sheet but not included in Schedule VI. (See § 210.4-02.) - Schedule III—Real estate and accumulated depreciation. The schedule prescribed by § 210.12-28 shall be filed for real estate (and the related accumulated depreciation) held by persons a substantial portion of whose business is that of acquiring and holding for investment real estate or interests in real estate, or interests in other persons a substantial portion of whose business is that of acquiring and holding real estate or interests in real estate for investment. Real estate used in the business shall be excluded from the schedule. - Schedule IV—Mortgage loans on real estate. The schedule prescribed by § 210.12-29 shall be filed by persons specified under Schedule XI for investments in mortgage loans on real estate. - Schedule V—Supplemental Information Concerning Property-casualty Insurance Operations. The schedule prescribed by § 210.12-18 shall be filed when a registrant, its subsidiaries or 50%-or-less-owned equity basis investees, have liabilities for property-casualty ("P/C") insurance claims. The required information shall be presented as of the same dates and for the same periods for which the information is reflected in the audited consolidated financial statements required by §§ 210.3-01 and 3-02. The schedule may be omitted if reserves for unpaid P/C claims and claims adjustment expenses of the registrant and its consolidated subsidiaries, its unconsolidated subsidiaries and its 50%-or-less-owned equity basis investees did not, in the aggregate, exceed one-half of common stockholders' equity of the registrant and its consolidated subsidiaries as of the beginning of the fiscal year. For purposes of this test only the proportionate share of the registrant and its other subsidiaries in the reserves for unpaid claims and claim adjustment expenses of 50%-or-less-owned equity basis investees taken in the aggregate after intercompany eliminations shall be taken into account. - \[45 FR 63671, Sept. 25, 1980, as amended at 46 FR 48137, Oct. 1, 1981; 46 FR 56180, Nov. 16, 1981; 49 FR 47598, Dec. 6, 1984; 50 FR 25215, June 18, 1985; 59 FR 65636, Dec. 20, 1994; 74 FR 18615, Apr. 23, 2009; 83 FR 50202, Oct. 4, 2018\] #### SEC Staff Guidance ##### [205-10-S99-7](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:16d8746acbd61d278ea71e158b92f652f46f129c8c46ca08d9d4a4355f57c6a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 1.B.2, Pro Forma Financial Statements and Earnings per Share. - Question: What disclosure should be made if the registrant's historical financial statements are not indicative of the ongoing entity (e. g., tax or other cost sharing agreements will be terminated or revised)? - Interpretive Response: The registration statement should include pro forma financial information that is in accordance with Article 11 of Regulation S-X and reflects the impact of terminated or revised cost sharing agreements and other significant changes. ##### [205-10-S99-8](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:39c99955a34325c541d5c629bb529fdd3c2e2b78a6438cda816e78b793163eb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 6.K.2, Parent Company Financial Information. - a. Computation of restricted net assets of subsidiaries. - Facts: The revised rules for parent company disclosures adopted in ASR 302 require, in certain circumstances, (1) footnote disclosure in the consolidated financial statements about the nature and amount of significant restrictions on the ability of subsidiaries to transfer funds to the parent through intercompany loans, advances or cash dividends \[Rule 4-08(e)(3)\], and (2) the presentation of condensed parent company financial information and other data in a schedule (Rule 12-04). To determine which disclosures, if any, are required, a registrant must compute its proportionate share of the net assets of its consolidated and unconsolidated subsidiary companies as of the end of the most recent fiscal year which are restricted as to transfer to the parent company because the consent of a third party (a lender, regulatory agency, foreign government, etc.) is required. If the registrant's proportionate share of the restricted net assets of consolidated subsidiaries exceeds 25% of the registrant's consolidated net assets, both the footnote and schedule information are required. If the amount of such restrictions is less than 25%, but the sum of these restrictions plus the amount of the registrant's proportionate share of restricted net assets of unconsolidated subsidiaries plus the registrant's equity in the undistributed earnings of 50% or less owned persons (investees) accounted for by the equity method exceed 25% of consolidated net assets, the footnote disclosure is required. - Question 1: How are restricted net assets of subsidiaries computed? - Interpretative Response: The calculation of restricted net assets requires an evaluation of each subsidiary to identify any circumstances where third parties may limit the subsidiary's ability to loan, advance or dividend funds to the parent. This evaluation normally comprises a review of loan agreements, statutory and regulatory requirements, etc., to determine the dollar amount of each subsidiary's restrictions. The related amount of the subsidiary's net assets designated as restricted, however, should not exceed the amount of the subsidiary's net assets included in consolidated net assets, since parent company disclosures are triggered when a significant amount of consolidated net assets are restricted. The amount of each subsidiary's net assets included in consolidated net assets is determined by allocating (pushing down) to each subsidiary any related consolidation adjustments such as intercompany balances, intercompany profits, and differences between fair value and historical cost arising from a business combination accounted for as a purchase. This amount is referred to as the subsidiary's adjusted net assets. If the subsidiary's adjusted net assets are less than the amount of its restrictions because the push down of consolidating adjustments reduced its net assets, the subsidiary's adjusted net assets is the amount of the subsidiary's restricted net assets used in the tests. - Registrants with numerous subsidiaries and investees may wish to develop approaches to facilitate the determination of its parent company disclosure requirements. For example, if the parent company's adjusted net assets (excluding any interest in its subsidiaries) exceed 75% of consolidated net assets, or if the total of all of the registrant's consolidated and unconsolidated subsidiaries' restrictions and its equity in investees' earnings is less than 25% of consolidated net assets, then the allocation of consolidating adjustments to the subsidiaries to determine the amount of their adjusted net assets would not be necessary since no parent company disclosures would be required. - Question 2: If a registrant makes a decision that it will permanently reinvest the undistributed earnings of a subsidiary, and thus does not provide for income taxes thereon because it meets the criteria set forth in FASB ASC Subtopic Check output number.740-30, Income Taxes—Other Considerations or Special Areas, is there considered to be a restriction for purposes of the test? - Interpretive Response: No. The rules require that only third party restrictions be considered. Restrictions on subsidiary net assets imposed by management are not included. - b. Application of tests for parent company disclosures. - Facts: The balance sheet of the registrant's 100%-owned subsidiary at the most recent fiscal year-end is summarized as follows: - ![](https://asc.understandingaccounting.org/asc-img/GUID-2C87008F-615B-4F33-B350-9D7B71425B30-low.gif) Current assets $120 Current liabilities $30 Noncurrent assets 45 Long-term debt 60 90 Common stock 25 Retained earnings 50 75 $165 $165 - Net assets of the subsidiary are $75. Assume there are no consolidating adjustments to be allocated to the subsidiary. Restrictive covenants of the subsidiary's debt agreements provide that: - Net assets, excluding intercompany loans, cannot be less than $35. - 60% of accumulated earnings must be maintained. - Question 1: What is the amount of the subsidiary's restricted net assets? - Interpretive Response: - ![](https://asc.understandingaccounting.org/asc-img/GUID-80A5CE4D-6458-4BE7-BA1E-877F4CDD51F2-low.gif) Restriction Computed Restrictions "Net assets: currently $75, cannot be less than $35; therefore " $35 Dividends: 60% of accumulated earnings ($50) cannot be paid out; therefore $30 - Restricted net assets for purposes of the test are $35. The maximum amount that can be loaned or advanced to the parent without violating the net asset covenant is $40 ($75 - 35). Alternatively, the subsidiary could pay a dividend of up to $20 ($50 - 30) without violating the dividend covenant, and loan or advance up to $20, without violating the net asset provision. - Facts: The registrant has one 100%-owned subsidiary. The balance sheet of the subsidiary at the latest fiscal year-end is summarized as follows: - ![](https://asc.understandingaccounting.org/asc-img/GUID-1822D533-DDEE-4081-A793-7EDA3E4A8D65-low.gif) Current assets $75 Current liabilities $23 Noncurrent assets 90 Long-term debt 57 Redeemable preferred stock 10 Common stock 30 Retained earnings 45 75 $165 $165 - Assume that the registrant's consolidated net assets are $130 and there are no consolidating adjustments to be allocated to the subsidiary. The subsidiary's net assets are $75. The subsidiary's noncurrent assets are comprised of $40 in operating plant and equipment used in the subsidiary's business and a $50 investment in a 30% investee. The subsidiary's equity in this investee's undistributed earnings is $18. Restrictive covenants of the subsidiary's debt agreements are as follows: - 1\. Net assets, excluding intercompany balances, cannot be less than $20. - 2\. 80% of accumulated earnings must be reinvested in the subsidiary. - 3\. Current ratio of 2:1 must be maintained. - Question 2: Are parent company footnote or schedule disclosures required? - Interpretive Response: Only the parent company footnote disclosures are required. The subsidiary's restricted net assets are computed as follows: - ![](https://asc.understandingaccounting.org/asc-img/GUID-413FAB50-6AB6-44EC-AC71-58773179865F-low.gif) Restriction Computed Restriction "Net assets: currently $75, cannot be less than $20; therefore " $20 Dividends: 80% of accumulated earnings ($45) cannot be paid; therefore $36 Current ratio: must be at least 2:1 ($46 current assets must be maintained since current liabilities are $23 at fiscal year-end); therefore $46 - Restricted net assets for purposes of the test are $20. The amount computed from the dividend restriction ($36) and the current ratio requirement ($46) are not used because net assets may be transferred by the subsidiary up to the limitation imposed by the requirement to maintain net assets of at least $20, without violating the other restrictions. For example, a transfer to the parent of up to $55 of net assets could be accomplished by a combination of dividends of current assets of $9 ($45-36), and loans or advances of current assets of up to $20 and noncurrent assets of up to $26. - Parent company footnote disclosures are required in this example since the restricted net assets of the subsidiary and the registrant's equity in the earnings of its 100%-owned subsidiary's investee exceed 25% of consolidated net assets \[($20 + 18)/$130 = 29%\]. The parent company schedule information is not required since the restricted net assets of the subsidiary are only 15% of consolidated net assets ($20/$130 = 15%). - Although the subsidiary's noncurrent assets are not in a form which is readily transferable to the parent company, the illiquid nature of the assets is not relevant for purposes of the parent company tests. The objective of the tests is to require parent company disclosures when the parent company does not have control of its subsidiaries' funds because it does not have unrestricted access to their net assets. The tests trigger parent company disclosures only when there are significant third party restrictions on transfers by subsidiaries of net assets and the subsidiaries' net assets comprise a significant portion of consolidated net assets. Practical limitations, other than third party restrictions on transferability at the measurement date (most recent fiscal year-end), such as subsidiary illiquidity, are not considered in computing restricted net assets. However, the potential effect of any limitations other than those imposed by third parties should be considered for inclusion in Management's Discussion and Analysis of liquidity. - ![](https://asc.understandingaccounting.org/asc-img/GUID-FFCCC9F7-C134-4E7F-ADEA-9CD31D1206CD-low.gif) Net assets Subsidiary A $ (500) Subsidiary B "$2,000 " Consolidated "$3,700 " - Subsidiaries A and B are 100% owned by the registrant. Assume there are no consolidating adjustments to be allocated to the subsidiaries. Subsidiary A has restrictions amounting to $200. Subsidiary B's restrictions are $1,000. - Question 3: What parent company disclosures are required for the registrant? - Interpretive Response: Since subsidiary A has an excess of liabilities over assets, it has no restricted net assets for purposes of the test. However, both parent company footnote and schedule disclosures are required, since the restricted net assets of subsidiary B exceed 25% of consolidated net assets ($1,000/3,700 = 27%). - ![](https://asc.understandingaccounting.org/asc-img/GUID-11221191-2744-40E1-A5FD-7549DEE35AF9-low.gif) Net assets Subsidiary A $ 850 Subsidiary B $ 300 Consolidated $ 3700 - The registrant owns 80% of subsidiary A. Subsidiary A owns 100% of subsidiary B. Assume there are no consolidating adjustments to be allocated to the subsidiaries. A may not pay any dividends or make any affiliate loans or advances. B has no restrictions. A's net assets of $850 do not include its investment in B. - Question 4: Are parent company footnote or schedule disclosures required for this registrant? - Interpretive Response: No. All of the registrant's share of subsidiary A's net assets ($680) are restricted. Although B may pay dividends and loan or advance funds to A, the parent's access to B's funds through A is restricted. However, since there are no limitations on B's ability to loan or advance funds to the parent, none of the parent's share of B's net assets are restricted. Since A's restricted net assets are less than 25% of consolidated net assets ($680/3700 = 18%), no parent company disclosures are required. - Facts: The consolidating balance sheet of the registrant at the latest fiscal year-end is summarized as follows: - ![](https://asc.understandingaccounting.org/asc-img/GUID-A66FB021-AC87-4856-80F3-A53CBAA80446-low.gif) Registrant Subsidiary Consolidating Adjustments Consolidated Current assets $800 $700 $0 " $1,500 " 30% investment in affiliate 175 0 0 175 Investment in subsidiary 350 0 (350) 0 Other noncurrent assets $625 $300 (100) $825 " $1,950 " " $1,000 " $(450) " $2,500 " Current liabilities 600 400 $0 " 1,000 " Concurrent liabilities 375 150 0 525 Redeemable preferred stock 275 0 0 275 Common stock 110 1 (1) 110 Paid-in capital 290 49 (49) 290 "Retained earnings " 300 400 (400) 300 700 450 (450) 700 " $1,950 " " $1,000 " $(450) " $2,500 " - The acquisition of the 100%-owned subsidiary was consummated on the last day of the most recent fiscal year. Immediately preceding the acquisition, the registrant had net assets of $700, which included its equity in the undistributed earnings of its 30% investee of $75. Immediately after acquiring the subsidiary's net assets, which had an historical cost of $450 and a fair value of $350, the registrant's net assets were still $700 since debt and preferred stock totaling $350 were issued in the purchase. The subsidiary has debt covenants which permit dividends, loans or advances, to the extent, if any, that net assets exceed an amount which is determined by the sum of $100 plus 75% of the subsidiary's accumulated earnings. - Question 5: What is the amount of the subsidiary's restricted net assets? Are parent company footnote or schedule disclosures required? - Interpretive Response: Restricted net assets for purposes of the test are $350, and both the parent company footnote and schedule disclosures are required. - The amount of the subsidiary's restrictions at year-end is $400 \[$100 + (75% x $400)\]. The subsidiary's adjusted net assets after the push down of the consolidation entry to the subsidiary to record the noncurrent assets acquired at their fair value is $350 ($450 - $100). Since the subsidiary's adjusted net assets ($350) are less than the amount of its restrictions ($400), restricted net assets are $350. The computed percentages applicable to each of the disclosure tests is in excess of 25%. Therefore, both parent company footnote and schedule information are required. The percentage applicable to the footnote disclosure test is 61% \[($75 + 350)/$700\]. The computed percentage for the schedule disclosure is 50% ($350/$700). ##### [205-10-S99-9](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:52:44.916Z to 2026-09-09T22:52:44.916Z Record version: sha256:df379a68c15a7bf8ee8519a01fc2a3da4b5f6efb7383436d959845c2c9783950 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 11.E, Chronological Ordering of Data. - Question: Does the staff have any preference in what order data are presented (e. g., the most current data displayed first, etc.)? - Interpretive Response: The staff has no preference as to order; however, financial statements and other data presented in tabular form should read consistently from left to right in the same chronological order throughout the filing. Similarly, numerical data included in narrative sections should be consistently ordered.