ASC

ASC 210-946

Financial Services—Investment Companies

210 Balance Sheet

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In brief

AdvancedPresentationDisclosureIndustry-specificFair value

This subtopic governs how an investment company presents its financial position — either a statement of assets and liabilities or a statement of net assets — and the schedule (or condensed schedule) of investments that accompanies it. It sets bright-line disclosure thresholds (1 percent of net assets for registered/other investment companies; 5 percent for nonregistered investment partnerships), special presentation rules for multiple-class, master-feeder, and fund-of-funds structures, and requires contract-value reporting for fully benefit-responsive investment contracts held by qualified defined contribution plan trusts.

Key points (7)
  • An investment company presents financial position as either a statement of assets and liabilities or a statement of net assets, and a statement of net assets includes a schedule of investments (946-210-45-1 through 45-2).
  • For multiple-class funds, composition of net assets is reported in total but net asset value per share and shares outstanding are reported for each class (946-210-45-4).
  • In a master-feeder structure, the master fund generally does not report components of net assets, shares outstanding, or NAV per share and alone presents the portfolio of investments; each feeder reports its investment in the master (with NAV per share, shares outstanding, and components of net assets) and presents no schedule of portfolio investments (946-210-45-5 through 45-6).
  • Investment companies other than nonregistered investment partnerships must name each investment exceeding 1 percent of net assets (and each issuer aggregating over 1 percent), disclose at a minimum the 50 largest investments, categorize investments by type and by industry/country/geographic region, and aggregate the remainder by category with percent of net assets (946-210-50-1).
  • Nonregistered investment partnerships (hedge funds, LLCs, commodity pools, and similar) present a condensed schedule of investments using a 5 percent of net assets threshold, with long and short positions in any one issuer considered separately, special rules for derivatives by underlying, and investment objective and redemption restrictions for investments in other nonregistered partnerships exceeding 5 percent (946-210-50-4 through 50-6).
  • If the reporting fund's proportional share of an investment held by an investee fund exceeds 5 percent of the reporting fund's net assets, that investment must be named and categorized in the condensed schedule or a note; if investee portfolio information is unavailable, that fact must be disclosed (946-210-50-9 through 50-10).
  • For funds established under a trust adopted as part of qualified employer-sponsored defined contribution plans, contract value is the measurement attribute for net assets attributable to fully benefit-responsive investment contracts; the statement of assets and liabilities shows total assets, total liabilities, net assets reflecting all investments at fair value, and net assets, with the fair-value-to-contract-value adjustment shown as a single amount on the face (946-210-45-11, 45-16).

For students. Exam and practice traps here are the two different concentration thresholds — 1 percent for registered/other investment companies versus 5 percent for nonregistered investment partnerships — and the rule that long and short positions in the same issuer are tested separately. Students also frequently miss that in a master-feeder structure the schedule of investments appears only at the master level, while NAV per share and components of net assets appear only at the feeder level.

schedule of investmentscondensed schedule of investmentsstatement of assets and liabilitiesmaster-feeder structuremultiple-class sharesfully benefit-responsive investment contractcontract valuenonregistered investment partnership

Machine-generated study aid for ASC 210-946. Check the source paragraphs below.

210-946-00Status

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210-946-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
946-210-45-18A Added Accounting Standards Update No. 2012-04 10/01/2012
946-210-45-20 Added Maintenance Update 2017-21 (PDF) 12/22/2017
946-210-45-21 Amended Maintenance Update 2018-12 (PDF) 09/10/2018
946-210-45-21 Added Maintenance Update 2017-21 (PDF) 12/22/2017
946-210-50-7 Superseded Accounting Standards Update No. 2016-19 12/14/2016
946-210-50-9 Amended Accounting Standards Update No. 2016-19 12/14/2016
946-210-55-1 Amended Accounting Standards Update No. 2016-19 12/14/2016
946-210-55-2 Amended Maintenance Update 2016-11 (PDF) 06/27/2016

210-946-05Overview and Background

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210-946-05-1
This Subtopic addresses an investment company's reporting of its financial position, including a schedule of investments.

210-946-15Scope and Scope Exceptions

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Overall Guidance

210-946-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15.

210-946-45Other Presentation Matters

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Reporting Financial Position

210-946-45-1
Investment companies report financial position by presenting either a statement of assets and liabilities or a statement of net assets.
210-946-45-2
A statement of net assets includes a schedule of investments (see Section 946-210-50). Details of related-party balances and other assets and liabilities shall be presented in the statement of net assets or in the notes to financial statements.

Complex Capital Structures

210-946-45-3
Management investment companies that have multiple classes of shares or master-feeder structures shall apply the following guidance when preparing a statement of assets and liabilities.
210-946-45-4
The composition of net assets shall be reported in total, but net asset value per share and shares outstanding shall be reported for each class.
210-946-45-5
Master funds usually are organized as trusts with flow-through accounting treatment to their feeder funds. As such, the statement of assets and liabilities of the master fund usually shall not report the components of net assets, shares outstanding, or net asset value per share. The portfolio of investments shall be included only in the master fund's financial statements.
210-946-45-6
Each feeder fund's statement of assets and liabilities shall show an investment in the master fund, which is the sole or principal investment of the feeder fund. The total of all feeder funds' investments in the master fund shall equal the total net assets of the master fund. A schedule of portfolio investments shall not be presented at the feeder level. The net asset value per share, total shares outstanding, and the components of net assets shall be reported. Should the feeder fund have a multiple-class structure, it would report the multiple-class information specified in this Subtopic.
210-946-45-7
The reporting fund may list the investee (portfolio) funds directly on the statement of assets and liabilities. Additional disclosures may be required for those funds that hold a mixture of investments in other investment companies and direct investments in securities. However, there is usually no need for a separate schedule of investments. Fund management shall consider if an investment in a single underlying fund is so significant to the fund of funds as to make the presentation of financial statements in a manner similar to a master-feeder fund more appropriate.

Credit Enhancements

210-946-45-8
Credit enhancements shall be shown as a component of the security description in the schedule of investments.

Fully Benefit-Responsive Investment Contracts

210-946-45-9
This guidance describes the limited circumstances in which the net assets of an investment company (also referred to as a fund) shall reflect the contract value (which generally equals the principal balance plus accrued interest) of certain investments that it holds.
210-946-45-10
For purposes of this Subtopic, the term investment contract refers to any of the following:
  1. a
    A traditional or separate account guaranteed investment contract
  2. b
    A bank investment contract
  3. c
    A synthetic guaranteed investment contract composed of a wrapper contract and the underlying wrapped portfolio of individual investments
  4. d
    A contract with similar characteristics.
210-946-45-11
Contract value is the relevant measurement attribute for that portion of the net assets of an investment company attributable to fully benefit-responsive investment contracts provided that the investment company is established under a trust whereby the trust itself is adopted as part of one or more qualified employer-sponsored defined contribution plans (including both health and welfare and pension plans). A qualified plan refers to a plan that qualifies under the U.S. Internal Revenue Code by allowing full or partial tax-deferred contributions and tax-deferred investment gains on those contributions.
210-946-45-12
In applying the characteristic in item (c) of the definition of fully benefit-responsive investment contract (that is, execution of transaction at contract value), an investment company registered under the Investment Company Act of 1940 would not meet this requirement because Rule 22c-1 under the Act requires transactions between the investment company and its shareholders to be executed at current net asset value. The definition of fully benefit-responsive investment contract includes guidance for determining whether certain restrictions violate the provision that participants in the investment company have reasonable access to their funds. Restrictions that do not violate this provision shall also not be considered to violate the provisions in item (c) of the definition.
210-946-45-13
If any portion of an investment company's net assets is held by another investment company, the lower-level (investee) fund shall look through to the higher level (investor) fund in determining whether the lower level fund is within the scope of this guidance.
210-946-45-14
Under Rule 2a-4 of the Investment Company Act of 1940, current net asset value is computed using the fair value of the investment company's portfolio securities.
210-946-45-15
The following line items shall be separately reported on the statement of assets and liabilities with a parenthetical reference that such amounts are being reported at fair value:
  1. a
    Investments (including traditional guaranteed investment contracts)
  2. b
    Wrapper contracts.
210-946-45-16
The statement of assets and liabilities of the fund shall present amounts for all of the following:
  1. a
    Total assets
  2. b
    Total liabilities
  3. c
    Net assets reflecting all investments at fair value
  4. d
    Net assets.
Amount (d) represents the amount at which participants can transact with the fund. That amount shall be used also for purposes of preparing the per-share disclosures required by Section 946-205-50 and as the beginning and ending balance in the statement of changes in net assets of the fund. The amount representing the difference between (c) and (d) shall be presented on the face of the statement of assets and liabilities as a single amount, calculated as the sum of the amounts necessary to adjust the portion of net assets attributable to each fully benefit-responsive investment contract from fair value to contract value.
210-946-45-17
The statements of operations and changes in net assets of the fund shall be prepared on a basis that reflects income credited to participants in the fund and realized and unrealized gains and losses only on those investment contracts that are not deemed fully benefit-responsive.
210-946-45-18
The following information shall be disclosed in the financial statements as part of the schedule of investments, to the extent that schedule is already required under paragraph 946-210-50-1, and shall reconcile to corresponding line items on the statement of assets and liabilities:
  1. a
    The fair value of each investment contract, including separate disclosure of both of the following:
    1. 1
      The fair value of the wrapper contract
    2. 2
      The fair value of each of the corresponding underlying investments, if held by the fund, included in that investment contract.
  2. b
    Adjustment from fair value to contract value for each investment contract (if the investment contract is fully benefit-responsive)
  3. c
    Major credit ratings of the issuer or wrapper provider for each investment contract.
210-946-45-18A
To be considered within the scope of paragraphs
946-210-45-15 through 45-18
, any portion of the net assets of the investment company attributable to a particular plan investee that is not held in trust for the benefit of participants in a qualified employer-sponsored defined-contribution plan is not permitted to increase, except for reinvestment of income earned.
210-946-45-19
Example 2 (see paragraph 946-210-55-2) illustrates the application of this guidance.

Cash and Cash Equivalents

210-946-45-20
Cash on hand and demand deposits shall be included under the general caption cash.
210-946-45-21
Amounts held in foreign currencies shall be presented separately at value, with acquisition cost shown parenthetically.

210-946-50Disclosure

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Schedule of Investments

210-946-50-1
In the absence of regulatory requirements, investment companies other than nonregistered investment partnerships shall do all of the following:
  1. a
    Disclose the name, number of shares, or principal amount of all of the following:
    1. 1
      Each investment (including short sales, written options, futures contracts, forward contracts, and other investment-related liabilities) whose fair value constitutes more than 1 percent of net assets. In applying the 1-percent test, total long and total short positions in any one issuer should be considered separately.
    2. 2
      All investments in any one issuer whose fair values aggregate more than 1 percent of net assets. In applying the 1-percent test, total long and total short positions in any one issuer should be considered separately.
    3. 3
      At a minimum, the 50 largest investments.
  2. b
    Categorize investments by both of the following characteristics:
    1. 1
      The type of investment (such as common stocks, preferred stocks, convertible securities, fixed income securities, government securities, options purchased, options written, warrants, futures contracts, loan participations and assignments, short-term securities, repurchase agreements, short sales, forward contracts, other investment companies, and so forth)
    2. 2
      The related industry, country, or geographic region of the investment.
  3. c
    Disclose the aggregate other investments (each of which is not required to be disclosed by (a)) without specifically identifying the issuers of such investments, and categorize as required by (b). The disclosure shall include both of the following:
    1. 1
      The percent of net assets that each such category represents
    2. 2
      The total value for category in (b)(1) and (b)(2).
210-946-50-2
For required disclosures about any other significant concentration of credit risk, see Section 825-10-50. For example, an international fund that categorizes its investments by industry or geographic region should also report a summary of its investments by country, if such concentration is significant.
210-946-50-3
For required disclosures about certain significant estimates, such as use of estimates by directors, general partners, or others in an equivalent capacity to value securities, see Subtopic 275-10.
210-946-50-4
Except as noted in the following paragraph, the guidance in paragraph 946-210-50-6 applies to investment partnerships that are exempt from Securities and Exchange Commission (SEC) registration under the Investment Company Act of 1940, which include all of the following:
  1. a
    Hedge funds
  2. b
    Limited liability companies
  3. c
    Limited liability partnerships
  4. d
    Limited duration companies
  5. e
    Offshore investment companies with similar characteristics
  6. f
    Commodity pools subject to regulation under the Commodity Exchange Act of 1974.
210-946-50-5
The guidance in the following paragraph does not apply to investment partnerships that are brokers and dealers in securities subject to regulation under the Securities Exchange Act of 1934 (registered broker-dealers) and that manage funds only for those who are officers, directors, or employees of the general partner. For guidance applicable to those entities, see Topic 940.
210-946-50-6
The financial statements of an investment partnership meeting the condition in paragraph 946-210-50-4 shall, at a minimum, include a condensed schedule of investments in securities owned by the partnership at the close of the most recent period. Such a schedule shall do all of the following:
  1. a
    Categorize investments by all of the following:
    1. 1
      Type (such as common stocks, preferred stocks, convertible securities, fixed-income securities, government securities, options purchased, options written, warrants, futures, loan participations, short sales, other investment companies, and so forth)
    2. 2
      Country or geographic region, except for derivative instruments for which the underlying is not a security (see (a)(4))
    3. 3
      Industry, except for derivative instruments for which the underlying is not a security (see (a)(4))
    4. 4
      For derivative instruments for which the underlying is not a security, by broad category of underlying (for example, grains and feeds, fibers and textiles, foreign currency, or equity indexes) in place of the categories in (a)(2) and (a)(3).
  2. b
    Report the percent of net assets that each such category represents and the total fair value and cost for each category in (a)(1) and (a)(2).
  3. c
    Disclose the name, number of shares or principal amount, fair value, and type of both of the following:
    1. 1
      Each investment (including short sales) constituting more than 5 percent of net assets, except for derivative instruments (see (e) and (f)). In applying the 5-percent test, total long and total short positions in any one issuer should be considered separately.
    2. 2
      All investments in any one issuer aggregating more than 5 percent of net assets, except for derivative instruments (see (e) and (f)). In applying the 5-percent test, total long and total short positions in any one issuer shall be considered separately.
  4. d
    Aggregate other investments (each of which is 5 percent or less of net assets) without specifically identifying the issuers of such investments, and categorize them in accordance with the guidance in (a). In applying the 5-percent test, total long and total short positions in any one issuer shall be considered separately.
  5. e
    Disclose the number of contracts, range of expiration dates, and cumulative appreciation (depreciation) for open futures contracts of a particular underlying (such as wheat, cotton, specified equity index, or U.S. Treasury Bonds), regardless of exchange, delivery location, or delivery date, if cumulative appreciation (depreciation) on the open contracts exceeds 5 percent of net assets. In applying the 5-percent test, total long and total short positions in any one issuer shall be considered separately.
  6. f
    Disclose the range of expiration dates and fair value for all other derivative instruments of a particular underlying (such as foreign currency, wheat, specified equity index, or U.S. Treasury Bonds) regardless of counterparty, exchange, or delivery date, if fair value exceeds 5 percent of net assets. In applying the 5-percent test, total long and total short positions in any one issuer shall be considered separately.
  7. g
    Provide both of the following additional qualitative descriptions for each investment in another nonregistered investment partnership whose fair value constitutes more than 5 percent of net assets:
    1. 1
      The investment objective
    2. 2
      Restrictions on redemption (that is, liquidity provisions).
210-946-50-8
Investments in other investment companies (investees), such as investment partnerships, limited liability companies, and funds of funds, shall be considered investments for purposes of applying paragraph 946-210-50-1(a) through (b)and 946-210-50-6.
210-946-50-9
If the reporting investment company's proportional share of any investment owned by any individual investee exceeds 5 percent of the reporting investment company's net assets at the reporting date, each such investment shall be named and categorized as discussed in paragraph 946-210-50-6. These investee disclosures shall be made either in the condensed schedule of investments (as components of the investment in the investee) or in a note to that schedule.
210-946-50-10
If information about the investee's portfolio is not available, that fact shall be disclosed.
210-946-50-11
The terms, conditions, and other arrangements relating to a credit enhancement shall be disclosed in the notes to financial statements.
210-946-50-12
For a put option provided by an affiliate, the schedule of investments shall describe the put as from an affiliate and the notes to financial statements shall include the name and relationship of the affiliate.
210-946-50-13
For a letter of credit, the name of the entity issuing the letter of credit shall be disclosed separately.

Fully Benefit-Responsive Investment Contracts

210-946-50-14
Investment companies identified in paragraph 946-210-45-11 shall disclose all of the following in connection with fully benefit-responsive investment contracts, in the aggregate:
  1. a
    A description of the nature of those investment contracts.
  2. b
    A description of how those investment contracts operate.
  3. c
    A description of the methodology for calculating the interest crediting for those investment contracts, including all of the following:
    1. 1
      The key factors that could influence future average interest crediting rates
    2. 2
      The basis for and frequency of determining interest crediting rate resets
    3. 3
      Any minimum interest crediting rate under the terms of the contracts.
  4. d
    An explanation of the relationship between future interest crediting rates and the amount reported on the statement of assets and liabilities representing the adjustment for the portion of net assets attributable to fully benefit-responsive investment contracts from fair value to contract value.
  5. e
    A reconciliation between the beginning and ending balance of the amount presented on the statement of assets and liabilities that represents the difference between net assets reflecting all investments at fair value and net assets for each period in which a statement of changes in net assets is presented. This reconciliation shall include both of the following:
    1. 1
      The change in the difference between the fair value and contract value of all fully benefit-responsive investment contracts
    2. 2
      The increase or decrease due to changes in the fully benefit-responsive status of the fund's investment contracts.
  6. f
    The average yield earned by the entire fund (which may differ from the interest rate credited to participants in the fund) for each period for which a statement of assets and liabilities is presented. This average yield shall be calculated by dividing the annualized earnings of all investments in the fund (irrespective of the interest rate credited to participants in the fund) by the fair value of all investments in the fund.
  7. g
    The average yield earned by the entire fund with an adjustment to reflect the actual interest rate credited to participants in the fund for each period for which a statement of assets and liabilities is presented. This average yield shall be calculated by dividing the annualized earnings credited to participants in the fund (irrespective of the actual earnings of the investments in the fund) by the fair value of all investments in the fund.
  8. h
    Both of the following sensitivity analyses:
    1. 1
      The weighted average interest crediting rate (that is, the contract value yield) as of the date of the latest statement of assets and liabilities and the effect on this weighted average interest crediting rate, calculated as of the date of the latest statement of assets and liabilities and the end of the next four quarterly periods, under two or more scenarios where there is an immediate hypothetical increase or decrease in market yields, with no change to the duration of the underlying investment portfolio and no contributions or withdrawals. Those scenarios should include, at a minimum, immediate hypothetical increases and decreases in market yields equal to one-quarter and one-half of the current yield.
    2. 2
      The effect on the weighted average interest crediting rate calculated as of the date of the latest statement of assets and liabilities and the next four quarterly reset dates, under two or more scenarios where there are the same immediate hypothetical changes in market yields in the first analysis, combined with an immediate, one-time, hypothetical 10 percent decrease in the net assets of the fund due to participant transfers, with no change to the duration of the portfolio.
  9. i
    A description of the events that limit the ability of the fund to transact at contract value with the issuer (for example, premature termination of the contracts by the fund, plant closings, layoffs, plan termination, bankruptcy, mergers, and early retirement incentives), including a statement as to whether the occurrence of those events that would limit the fund's ability to transact at contract value with the participants in the fund is probable or not probable.
  10. j
    A description of the events and circumstances that would allow issuers to terminate fully benefit-responsive investment contracts with the fund and settle at an amount different from contract value.
Example 2 (see paragraph 946-210-55-2) illustrates the application of this guidance.

210-946-55Implementation Guidance and Illustrations

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Illustrations

210-946-55-1
This Example illustrates how to apply the guidance in paragraph 946-210-50-6. However, it does not address all possible circumstances that may arise in applying the guidance in that paragraph. Percent of net assets is shown for each category; net assets are assumed to be $50,000,000 for purposes of this Example.
  • "ABC Associates, ltd." Condensed Schedule of Investments(c) "December 31, 20XX" "Principal Amount, or Number of Shares, or Contracts" Description Fair Value COMMON STOCKS (54.9%) United States (33.8%) Airlines (7.2%) "53,125 " "Flight Airlines, Inc. (3.6%) (a)" " $1,811,297 " Other (3.6%) " 1,819,074 " " 3,630,371 " Banks (1.9%) " 937,099 " Financial Services (2.9%) " 1,433,210 " Foods (7.1%) "106,607 " Andrews Midlands Co. (5.7%) " 2,825,078 " Other (1.4%) " 702,824 " " 3,527,902 " Hospital Supplies and Services (5.6%) "100,404 " Chelsea Clinics Inc. " 2,811,297 " Technology (4.1%) " 2,039,578 " Utilities (5.0%) " 2,480,556 " "Total United States (cost $16,850,954)" " 16,860,013 " Hong Kong (5.7%) Drugs (0.6%) " 330,741 " Retail (4.0%) " 1,984,445 " Utility-Telephone (1.1%) " 552,235 " "Total Hong Kong (cost $2,756,959) " " 2,867,421 " Italy (5.6%) Airlines (0.2%) " 110,247 " Financial Services (1.8%) " 881,975 " Leisure Related (3.5%) " 1,763,951 " Office Supplies (0.1%) " 55,123 " "Total Italy (cost $2,912,465) " " 2,811,296 " Spain (5.4%) Banks (2.4%) " 1,212,716 " Oil (1.7%) " 826,852 " Railroads (1.3%) " 661,482 " "Total Spain (cost $2,643,197) " " 2,701,050 " United Kingdom (4.4%) Financial Services (2.3%) " 1,157,593 " Technology (2.1%) " 1,047,346 " "Total United Kingdom (cost $2,145,246)" " 2,204,939 " "TOTAL COMMON STOCKS (cost $27,308,821)" " 27,444,719 " DEBT SECURITIES (41.3%) United States (21.4%) Airlines (2.0%) " $1,000,000 " "Flight Airlines, Inc. 12%, 7/15/X5 (a)" " $1,000,000 " Government (19.4%) " $3,000,000 " "U.S. Treasury Bonds, 4.5%, 11/15/X7 " " 3,031,791 " " $6,600,000 " "U.S. Treasury Bonds, 3.00%-4.75%, 1/30/X5-7/15/X7 " " 6,686,175 " " 9,717,966 " "Total United States (cost $15,015,200)" " 10,717,966 " Mexico (19.9%) Government " $11,000,000 " "United Mexican States, 8.625%-9.125%, 3/12/X8-12/7/X9 (cost $10,000,000) " " 9,922,224 " "TOTAL DEBT SECURITIES (cost $25,015,200)" " 20,640,190 " LONG PUT AND CALL OPTIONS (2.4%) United States "Telecommunications (cost $1,225,800) " " 1,212,716 " "INTEREST IN INVESTMENT PARTNERSHIP (10.0%) (cost $4,000,000) " " 5,000,000 " "XYZ Hedge Fund, L.P. (35% owned) (b)" "(XYZ Hedge Fund L.P. owns 6,000 shares, valued at $9,000,000 of Leisure Cruises, Inc., which is a U.S. entity in the leisure time industry. The partnership's share of this investment is valued at $3,150,000 as of 12/31/20XX.) " "TOTAL INVESTMENTS (108.6%) (cost $57,549,821) " " $54,297,625 " SECURITIES SOLD SHORT (9.6%) COMMON STOCKS (5.7%) United States Energy " 100,000 " "ABC Resources Co (Proceeds $2,715,000)" " $2,825,075 " DEBT SECURITIES (3.7%) Canada (3.7%) "Telecommunications (proceeds $1,950,000)" " 1,867,000 " WRITTEN OPTIONS (2%) United States "Manufacturing (proceeds $130,000) " " 127,309 " "TOTAL SECURITIES SOLD SHORT (proceeds $4,795,000) " " $4,819,384 "
    Description Fair Value Expiration Dates No. of Contracts FUTURES CONTRACTS (12.5%) Financial (5.2%) " $2,611,825 " Feb-Apr 20XX 122 Eurodollar (5.2%) Indexes (5.6%) S 500 (5.6%) " 2,788,000 " Mar-May 20XX 89 Metals (1.7%) " 840,000 " TOTAL FUTURES CONTRACTS " $6,239,825 " FORWARDS (11.5%) Argentinian Peso (5.8%) " $2,910,000 " Oct-Nov 20XX Other Currencies (5.7%) " 2,876,315 " TOTAL FORWARDS " $5,786,315 " SWAPS " $2,875,000 " Interest rate swaps (5.7%) Currency swaps (7.7%) Yen/U.S. dollar swaps (6.0%) " 2,999,016 " Jan-Feb 20XX Other (1.7%) " 868,000 " TOTAL SWAPS " $6,742,018 " The accompanying notes are an integral part of these financial statements. (a) "Securities of Flight Airlines, Inc., aggregate 5.6 percent of net assets of ABC Associates, Ltd." (b) "Leisure Cruises, Inc., is named because the proportionate share of ABC Associates, Ltd., equity in it is greater than 5 percent of ABC's net assets. If information about the investments of XYZ was not available, that would have been stated either parenthetically or in a note to this schedule." (c) "This schedule does not include the disclosures relative to the investment objective and restrictions on redemptions, as discussed in paragraph 946-210-50-6(g), because it is presumed that those disclosures are presented in the notes to the financial statements."
210-946-55-2
The following illustrates the presentation for fully benefit-responsive investment contracts in the statement of assets and liabilities in accordance with the guidance beginning in paragraph 946-210-50-14 and related note disclosure prepared in accordance with the guidance beginning in paragraph 946-210-45-9.
  • Presentation for the Statement of Assets and Liabilities Investments (at fair value) " $8,800,000 " Wrapper contracts (at fair value) " 100,000 " Total assets " 8,900,000 " Total liabilities " 200,000 " Net assets reflecting all investments at fair value " 8,700,000 " Adjustment from fair value to contract value for fully benefit-responsive investment contracts " 1,100,000 " Net assets " $9,800,000 "
  • Related Footnote Disclosure Major Credit Ratings Investments at Fair Value Wrapper Contracts at Fair Value Adjustment to Contact Value Traditional guaranteed investment contract A AAA/Aaa " $1,600,000 " - " $400,000 " Bank ABC stable value fund I N/A " 1,800,000 " - " 200,000 " Wrapped portfolio A: Bond #1 " 850,000 " - - Bond #2 " 910,000 " - - Wrapper " 40,000 " - Total wrapped portfolio A AAA/Aa2 " 1,760,000 " " 40,000 " " 200,000 " Wrapped portfolio B: Bond #3 " 850,000 " - - Bond fund #1 " 860,000 " - - Bond #4 " 930,000 " - - Wrapper - " 60,000 " - Total wrapped portfolio B AA-/Aa3 " 2,640,000 " " 60,000 " " 300,000 " Short-term investments AAA/Aaa " 1,000,000 " - - Total " $8,800,000 " " $100,000 " " $1,100,000 "

210-946-S00StatusSEC

Source downloaded: .Record version 0e28393952b2. Effective date must be checked in the source.

210-946-S00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
946-210-S99-1 through S99-3
 Amended Accounting Standards Update No. 2019-07 07/26/2019

210-946-S45Other Presentation MattersSEC

Source downloaded: .Record version 9f4424eb8919. Effective date must be checked in the source.

Certificate Reserves

210-946-S45-1
See paragraph 946-10-S99-3, Regulation S-X Rule 6-03(k), for the required presentation for certificate reserves.

Balance Sheet Format

210-946-S45-2
See paragraph 946-210-S99-1, Regulation S-X Rule 6-04, for the required balance sheet presentation for registered investment companies.

Statements of Net Assets Format

210-946-S45-3
See paragraph 946-210-S99-2, Regulation S-X Rule 6-05, for the required statement of net asset presentation.

Format for Balance Sheets Filed by Issuers of Face-Amount Certificates

210-946-S45-4
See paragraph 946-210-S99-3, Regulation S-X Rule 6-06, for the required balance sheet presentation for issuers of face-amount certificates.

210-946-S50DisclosureSEC

Source downloaded: .Record version 294b62771052. Effective date must be checked in the source.

Cash

210-946-S50-1
See paragraph 946-210-S99-1, Regulation S-X Rule 6-04.5, for the required disclosures pertaining to cash.

Notes Payable, Bonds, and Similar Debt

210-946-S50-2
See paragraph 946-210-S99-1, Regulation S-X Rule 6-04.13(b), for the required disclosures pertaining to notes payable, bonds, and similar debt.

Units of Capital

210-946-S50-3
See paragraph 946-210-S99-1, Regulation S-X Rule 6-04.16(b), for the required disclosures pertaining to unit investment trusts.

Statement of Net Assets

210-946-S50-4
See paragraph 946-210-S99-2, Regulation S-X Rule 6-05, for the required disclosures related to the statement of net assets.

Balance Sheets Filed by Issuers of Face-Amount Certificates

210-946-S50-5
See paragraph 946-210-S99-3, Regulation S-X Rule 6-06, for the required disclosures related to face-amount certificate issuers.

210-946-S99SEC MaterialsSEC

Source downloaded: .Record version f290d6acbcd8. Effective date must be checked in the source.

SEC Rules, Regulations, and Interpretations

210-946-S99-1
The following is the text of Regulation S-X Rule 6-04, Balance Sheets (17 CFR 210.6-04).
  • This section is applicable to balance sheets filed by registered investment companies and business development companies except for persons who substitute a statement of net assets in accordance with the requirements specified in § 210.6-05, and issuers of face-amount certificates which are subject to the special provisions of § 210.6-06. Balance sheets filed under this rule shall comply with the following provisions:
  • ASSETS
  • 1. Investments in securities of unaffiliated issuers.
  • 2. Investments in and advances to affiliates. State separately investments in and advances to: (a) Controlled companies and (b) other affiliates.
  • 3. Other investments. State separately amounts of assets related to
    • (a) variation margin receivable on futures contracts,
    • (b) forward foreign currency contracts;
    • (c) swap contracts; and
    • (d) investments—other than those presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C
  • 4. Cash. Include under this caption cash on hand and demand deposits.
    • Provide in a note to the financial statements the information required under § 210.5-02.1 regarding restrictions and compensating balances.
  • 5. Receivables.
    • (a) State separately amounts receivable from
      • (1) sales of investments;
      • (2) subscriptions to capital shares;
      • (3) dividends and interest;
      • (4) directors and officers; and
      • (5) others.
    • (b) If the aggregate amount of notes receivable exceeds 10 percent of the aggregate amount of receivables, the above information shall be set forth separately, in the balance sheet or in a note thereto, for accounts receivable and notes receivable.
  • 6. Deposits for securities sold short and other investments. State separately amounts held by others in connection with:
    • (a) Short sales;
    • (b) open option contracts;
    • (c) futures contracts;
    • (d) forward foreign currency contracts;
    • (e) swap contracts; and
    • (f) investments—other than those presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C.
  • 7. Other assets. State separately
    • (a) prepaid and deferred expenses;
    • (b) pension and other special funds;
    • (c) organization expenses; and
    • (d) any other significant item not properly classified in another asset caption.
  • 8. Total assets.
  • LIABILITIES
  • 9. Other investments. State separately amounts of liabilities related to:
    • (a) Securities sold short;
    • (b) open option contracts written;
    • (c) variation margin payable on futures contracts;
    • (d) forward foreign currency contracts;
    • (e) swap contracts; and
    • (f) investments—other than those presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C.
  • 10. Accounts payable and accrued liabilities. State separately amounts payable for:
    • (a) Other purchases of securities;
    • (b) capital shares redeemed;
    • (c) dividends or other distributions on capital shares; and
    • (d) others.
    • State separately the amount of any other liabilities which are material.
  • 11. Deposits for securities loaned. State the value of securities loaned and indicate the nature of the collateral received as security for the loan, including the amount of any cash received.
  • 12. Other liabilities. State separately
    • (a) amounts payable for investment advisory, management and service fees; and
    • (b) the total amount payable to:
      • (1) Officers and directors;
      • (2) controlled companies; and
      • (3) other affiliates, excluding any amounts owing to noncontrolled affiliates which arose in the ordinary course of business and which are subject to usual trade terms.
  • 13. Notes payable, bonds and similar debt.
    • (a) State separately amounts payable to:
      • (1) Banks or other financial institutions for borrowings;
      • (2) controlled companies;
      • (3) other affiliates; and
      • (4) others, showing for each category amounts payable within one year and amounts payable after one year.
    • (b) Provide in a note the information required under § 210.5-02.19(b) regarding unused lines of credit for short-term financing and § 210.5-02.22(b) regarding unused commitments for long-term financing arrangements.
  • 14. Total liabilities.
  • 15. Commitments and contingent liabilities.
  • NET ASSETS
  • 16. Units of capital.
    • (a) Disclose the title of each class of capital shares or other capital units, the number authorized, the number outstanding, and the dollar amount thereof.
    • (b) Unit investment trusts, including those which are issuers of periodic payment plan certificates, also shall state in a note to the financial statements:
      • (1) The total cost to the investors of each class of units or shares;
      • (2) the adjustment for market depreciation or appreciation;
      • (3) other deductions from the total cost to the investors for fees, loads and other charges, including an explanation of such deductions; and
      • (4) the net amount applicable to the investors.
  • 17. Total distributable earnings (loss). Disclose total distributable earnings (loss), which generally comprise:
    • (a) Accumulated undistributed investment income-net,
    • (b) accumulated undistributed net realized gains (losses) on investment transactions, and
    • (c) net unrealized appreciation (depreciation) in value of investments at the balance sheet date.
  • 18. Other elements of capital. Disclose any other elements of capital or residual interests appropriate to the capital structure of the reporting entity.
  • 19. Net assets applicable to outstanding units of capital. State the net asset value per share.
[81 FR 82011, Nov. 18, 2016, as amended at 83 FR 50202, Oct. 4, 2018]
210-946-S99-2
The following is the text of Regulation S-X Rule 6-05, Statements of Net Assets (17 CFR 210.6-05).
  • In lieu of the balance sheet otherwise required by § 210.6-04, persons may substitute a statement of net assets if at least 95 percent of the amount of the person's total assets are represented by investments in securities of unaffiliated issuers. If presented in such instances, a statement of net assets shall consist of the following:
  • STATEMENTS OF NET ASSETS
  • 1. A schedule of investments in securities of unaffiliated issuers as prescribed in § 210.12-12.
  • 2. The excess (or deficiency) of other assets over (under) total liabilities stated in one amount, except that any amounts due from or to officers, directors, controlled persons, or other affiliates, excluding any amounts owing to noncontrolled affiliates which arose in the ordinary course of business and which are subject to usual trade terms, shall be stated separately.
  • 3. Disclosure shall be provided in the notes to the financial statements for any item required under §210.6-04.3 and §§210.6-04.9 to 210.6-04.13.
  • 4. The balance of the amounts captioned as net assets. The number of outstanding shares and net asset value per share shall be shown parenthetically.
  • 5. The information required by (i) § 210.6-04.16, (ii) § 210.6-04.17 and (iii) § 210.6-04.18 shall be furnished in a note to the financial statements.
[81 FR 82012, Nov. 18, 2016]
210-946-S99-3
The following is the text of Regulation S-X Rule 6-06, Special Provisions Applicable to the Balance Sheets of Issuers of Face-Amount Certificates (17 CFR 210.6-06).
  • Balance sheets filed by issuers of face-amount certificates shall comply with the following provisions:
  • ASSETS
  • 1. Investments. State separately each major category: such as, real estate owned, first mortgage loans on real estate, other mortgage loans on real estate, investments in securities of unaffiliated issuers, and investments in and advances to affiliates.
  • 2. Cash. Include under this caption cash on hand and demand deposits. Provide in a note to the financial statements the information required under § 210.5-02.1 regarding restrictions and compensating balances.
  • 3. Receivables.
    • (a) State separately amounts receivable from
      • (1) sales of investments;
      • (2) dividends and interest;
      • (3) directors and officers; and
      • (4) others.
    • (b) If the aggregate amount of notes receivable exceeds 10 percent of the aggregate amount of receivables, the above information shall be set forth separately, in the balance sheet or in a note thereto, for accounts receivable and notes receivable.
  • 4. Total qualified assets. State in a note to the financial statements the amount of qualified assets on deposit classified as to general categories of assets and as to general types of depositories, such as banks and states, together with a statement as to the purpose of the deposits.
  • 5. Other assets. State separately:
    • (a) Investments in securities of unaffiliated issuers not included in qualifying assets in item 1 above;
    • (b) investments in and advances to affiliates not included in qualifying assets in item 1 above; and
    • (c) any other significant item not properly classified in another asset caption.
  • 6. Total assets.
  • LIABILITIES
  • 7. Certificate reserves. Issuers of face-amount certificates shall state separately reserves for:
    • (a) Certificates of the installment type;
    • (b) certificates of the fully-paid type;
    • (c) advance payments;
    • (d) additional amounts accrued for or credited to the account of certificate holders in the form of any credit, dividend, or interest in addition to the minimum amount specified in the certificate; and
    • (e) other certificate reserves.
    • State in an appropriate manner the basis used in determining the reserves, including the rates of interest of accumulation.
  • 8. Notes payable, bonds and similar debt.
    • (a) State separately amounts payable to:
      • (1) Banks or other financial institutions for borrowings;
      • (2) controlled companies;
      • (3) other affiliates; and
      • (4) others, showing for each category amounts payable within one year and amounts payable after one year.
    • (b) Provide in a note the information required under § 210.5-02.19(b) regarding unused lines of credit for short-term financing and § 210.5-02.22(b) regarding unused commitments for long-term financing arrangements.
  • 9. Accounts payable and accrued liabilities. State separately
    • (a) amounts payable for investment advisory, management and service fees; and
    • (b) the total amount payable to:
      • (1) Officers and directors;
      • (2) controlled companies; and
      • (3) other affiliates, excluding any amounts owing to noncontrolled affiliates which arose in the ordinary course of business and which are subject to usual trade terms.
  • State separately the amount of any other liabilities which are material.
  • 10. Total liabilities.
  • 11. Commitments and contingent liabilities.
  • STOCKHOLDERS' EQUITY
  • 12. Capital shares. Disclose the title of each class of capital shares or other capital units, the number authorized, the number outstanding and the dollar amount thereof. Show also the dollar amount of any capital shares subscribed but unissued, and show the deduction for subscriptions receivable therefrom.
  • 13. Other elements of capital.
    • (a) Disclose any other elements of capital or residual interests appropriate to the capital structure of the reporting entity.
    • (b) A summary of each account under this caption setting forth the information prescribed in § 210.3-04 shall be given in a note or separate statement for each period in which a statement of operations is presented.
  • 14. Total liabilities and stockholders' equity.

Related subtopics