# ASC Topic 210: Balance Sheet Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/210/) 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): 2026-09-09T22:58:18.165Z to 2026-09-09T23:02:44.054Z Record version: sha256:c5713da0371ff50ab658b1a63aeba7821bed45347bd0f61020e1d2cd51abaa7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 210 governs the balance sheet (statement of financial position): when and how assets and liabilities are classified as current or noncurrent, and when they may be offset. The Overall Subtopic (210-10) defines current assets and current liabilities by reference to one year or the operating cycle, whichever is longer, and applies only if an entity elects a classified balance sheet; ASC 210-20 supplies the general offsetting principle — netting is improper unless all four right-of-setoff conditions in 210-20-45-1 are met (mutual determinable amounts, right to set off, intent to set off, enforceability at law including bankruptcy) — with a narrow repo/reverse-repo election and extensive master netting disclosures. Industry subtopics tailor these rules: brokers and dealers (210-940) simply point back to 210-20-45; depository and lending institutions (210-942) and insurance entities (210-944) specify which balances may or may not be offset; health care entities (210-954), not-for-profits (210-958), and investment companies (210-946) prescribe specialized formats and liquidity disclosures. Subtopics 210-912 (government contractors) and 210-915 (development stage entities) are empty shells fully superseded by ASU 2014-09 and ASU 2014-10 respectively. Source downloaded (UTC): 2026-09-09T22:58:18.165Z to 2026-09-09T22:59:02.715Z Record version: sha256:a4f1b3372d9bff7442a93cf1ff50719aa7e866179bbcc26c0242853192857a29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10: Balance Sheet — Overall ### Machine-generated study aids ```json { "summary": "ASC 210-10 provides the general guidance for classifying assets and liabilities as current or noncurrent on a classified balance sheet (statement of financial position), permitting ready determination of working capital. Current assets are cash and other resources expected to be realized in cash or consumed within one year or the operating cycle, whichever is longer; current liabilities are obligations whose liquidation is expected to require use of current assets within that same period. The guidance applies to all entities, but only when an entity chooses to present a classified balance sheet (210-10-15-3).", "key_points": [ "Current assets generally include cash available for current operations and cash equivalents, inventories, trade receivables, receivables collectible within a year, marketable securities representing investment of cash available for current operations, and prepaid expenses (210-10-45-1).", "The operating cycle, not one year, is the measuring period: use one year when several cycles occur within a year, use the longer cycle if it exceeds 12 months (e.g., tobacco, distillery, lumber), and default to one year if there is no clearly defined cycle (210-10-45-3).", "Excluded from current assets are restricted cash or cash designated for noncurrent asset acquisition or long-term debt liquidation, investments/advances held for control or affiliation, receivables from unusual transactions not collectible within 12 months, cash surrender value of life insurance, land and natural resources, depreciable assets, and long-term prepayments or deferred charges (210-10-45-4).", "Prepaid expenses are current not because they convert to cash but because, if not prepaid, they would require use of current assets during the operating cycle (210-10-45-2).", "A total of current liabilities shall be presented in classified balance sheets (210-10-45-5); current liabilities include payables from the operating cycle, collections received in advance of delivery, accruals for wages, taxes and royalties, and estimated or accrued known obligations measurable only approximately (210-10-45-6; 45-8).", "Other obligations liquidated within about 12 months are current, including short-term debts for capital assets, serial maturities of long-term obligations, amounts payable within one year under sinking fund provisions, and agency obligations (210-10-45-9); debts to be liquidated from funds not classified as current assets, or long-term obligations incurred to increase working capital, are excluded (210-10-45-12).", "Asset valuation allowances (e.g., for losses on receivables and investments) shall be deducted from the related assets or groups of assets (210-10-45-13), and inventory amounts must be supplemented by disclosure of the basis of statement and cost method such as average cost, FIFO, or LIFO (210-10-50-1)." ], "categories": [ "Presentation", "Financial statement presentation", "Disclosure" ], "audience_level": "introductory", "student_note": "This is the foundational current/noncurrent classification guidance tested constantly on the FAR exam; the classic trap is applying a rigid one-year rule when the entity's operating cycle is longer, or treating restricted cash and prepaid expenses incorrectly. Also remember classification of pension over/underfunded status goes to ASC 715-20-45, and debt refinancing/callable debt questions go to ASC 470-10-45.", "related_topics": [ "210-20", "470-10", "715-20", "310-10", "852-10", "926-20" ], "key_concepts": [ "classified balance sheet", "current assets", "current liabilities", "working capital", "operating cycle", "one-year rule", "prepaid expenses", "valuation allowance" ] } ``` Source downloaded (UTC): 2026-09-09T22:58:18.165Z to 2026-09-09T22:58:18.165Z Record version: sha256:2abdc8ff7f26549e3a06e5348a6bd743f4171256c14c194dc5206386625ae663 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/10/#00-status) SEC content: no ##### [210-10-00-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:18.165Z to 2026-09-09T22:58:18.165Z Record version: sha256:ff278bac3ff401de3f548be78301e0ddaf10c1e87d22782b3f5c46318c6875a8 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
210-10-45-1AmendedAccounting Standards Update No. 2016-0101/05/2016
210-10-45-2AmendedAccounting Standards Update No. 2012-0410/01/2012
210-10-45-10AmendedAccounting Standards Update No. 2012-0410/01/2012
210-10-45-13AmendedAccounting Standards Update No. 2016-1306/16/2016
210-10-45-13AddedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:4af0855449ffb107b4bc544ed838ba98a0495edda58ad7e07f8edb9fd8cd7378 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/10/#05-overview-and-background) SEC content: no ##### [210-10-05-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:918e2905f894d819aa191d3be307cfc8a8e457aede26bcb8967bafcdad43b6ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Balance Sheet Topic includes the following two Subtopics: 1. a Overall 2. b Offsetting. ##### [210-10-05-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:6417998d54d1675b9ded62b28792d19e9293b58ea9b55a30df684ad5f2313666 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The balance sheet is commonly referred to as statement of financial position. For purposes of the Codification, both titles are interchangeable. ##### [210-10-05-3](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:bb6113de781e44584c210e7a62de6e0a12619eb68050f0025cb1e7d96ff18bd5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Offsetting Subtopic provides guidance about offsetting amounts for certain contracts and repurchase and reverse repurchase agreements. ##### [210-10-05-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:647bd138d192f218c85f599b828fa09ae02530f6209732e35a88682a0dc7cdcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides general guidance on the classification of [current assets](https://asc.understandingaccounting.org/glossary/c/#current-assets "Current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. See paragraphs 210-10-45-1210-10-45-2210-10-45-3210-10-45-4.") and [current liabilities](https://asc.understandingaccounting.org/glossary/c/#current-liabilities "Current liabilities is used principally to designate obligations whose liquidation is reasonably expected to require the use of existing resources properly classifiable as current assets, or the creation of other current liabilities. See paragraphs 210-10-45-5210-10-45-6210-10-45-7210-10-45-8210-10-45-9210-10-45-10210-10-45-11210-10-45-12.") and discusses the determination of [working capital](https://asc.understandingaccounting.org/glossary/w/#working-capital "Working capital (also called net working capital) is represented by the excess of current assets over current liabilities and identifies the relatively liquid portion of total entity capital that constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the entity."). The balance sheets of most entities show separate classifications of current assets and current liabilities (commonly referred to as classified balance sheets) permitting ready determination of working capital. ##### [210-10-05-5](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:af535832e51db71faf6fea41bab80f00eed0232b10084088adb18e320e31b6b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial position, as it is reflected by the records and accounts from which the statement is prepared, is revealed in a presentation of the assets and liabilities of the entity. In the statements of manufacturing, trading, and service entities, these assets and liabilities are generally classified and segregated; if they are classified logically, summations or totals of the current or circulating or working assets (referred to as current assets) and of obligations currently payable (designated as current liabilities) will permit the ready determination of working capital. ##### [210-10-05-6](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:9ee2e70a99e77078803fe190f676b9c07f0a9e6e2da8ce570f4c92671ecb0024 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The ordinary operations of an entity involve a circulation of capital within the current asset group. Cash is expended for materials, finished parts, operating supplies, labor, and other factory services, and such expenditures are accumulated as inventory cost. Inventory costs, upon sale of the products to which such costs attach, are converted into trade receivables and ultimately into cash again. ##### [210-10-05-7](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:7f8fb3516452526cb229f8d7fdf387d23ddfc2e8e634d43b04346f10ab98bf70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph Not Used](https://asc.understandingaccounting.org/updates/page-1833002/) ##### [210-10-05-8](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:7f1f35e04ad9d9183a5589e5b8d839eddb14c44d570a7f317bee0b2ef30a3ea9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the classification guidance provided in this Subtopic, other Topics in the Codification also address specific classification matters. Source downloaded (UTC): 2026-09-09T22:58:25.890Z to 2026-09-09T22:58:25.890Z Record version: sha256:90daeb2c19961b90d063ca1996bafc9bd031d14e62dbf8207a7801903c821f94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/10/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [210-10-15-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:25.890Z to 2026-09-09T22:58:25.890Z Record version: sha256:626d2f9bc1446b928324ebd67c805f0ab7ff35aa1105e6b724a9d271f5c7e4c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. ##### [210-10-15-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:25.890Z to 2026-09-09T22:58:25.890Z Record version: sha256:d008d5c606dfca491d79431bbce11e5f3e913c88c099f7387a0f828622745064 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Transactions ##### [210-10-15-3](https://asc.understandingaccounting.org/asc/210/10/#210-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:25.890Z to 2026-09-09T22:58:25.890Z Record version: sha256:a0bfc42fdba1d7314c3a97f88750b8d936d309cd8c99a5aec1f3bec8f2d42c62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic that relates to separate classification of current assets and current liabilities (that is, a classified balance sheet) applies only when an entity is preparing a classified balance sheet for financial accounting and reporting purposes. Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:514a3a365ee047135090a65aa686962e6497f7a98aad91496790ba3cdf07dc2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/10/#45-other-presentation-matters) SEC content: no #### Classification of Current Assets ##### [210-10-45-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:db0d8eb401bfb0376e6048e18ff4a7931ef56dac058fea245000dc6f6faf8df3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Current assets](https://asc.understandingaccounting.org/glossary/c/#current-assets "Current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. See paragraphs 210-10-45-1210-10-45-2210-10-45-3210-10-45-4.") generally include all of the following: 1. a Cash available for current operations and items that are [cash equivalents](https://asc.understandingaccounting.org/glossary/c/#cash-equivalents "Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: Readily convertible to known amounts of cash So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month U.S. Treasury bill and a three-year U.S. Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Examples of items commonly considered to be cash equivalents are Treasury bills, commercial paper, money market funds, and federal funds sold (for an entity with banking operations).") 2. b Inventories of merchandise, raw materials, goods in process, finished goods, operating supplies, and ordinary maintenance material and parts 3. c Trade accounts, notes, and acceptances receivable 4. d Receivables from officers, employees, affiliates, and others, if collectible in the ordinary course of business within a year 5. e Installment or deferred accounts and notes receivable if they conform generally to normal trade practices and terms within the business 6. f Marketable securities representing the investment of cash available for current operations 7. g Prepaid expenses such as the following: 1. 1 Insurance 2. 2 Interest 3. 3 Rents 4. 4 Taxes 5. 5 Unused royalties 6. 6 Current paid advertising service not yet received 7. 7 Operating supplies. ##### [210-10-45-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:6f896bdd26e7e3c1751970886db6b66e76ee52afa6c6f1acefe931b2673abb91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prepaid expenses are not current assets in the sense that they will be converted into cash but in the sense that, if not paid in advance, they would require the use of current assets during the [operating cycle](https://asc.understandingaccounting.org/glossary/o/#operating-cycle "The average time intervening between the acquisition of materials or services and the final cash realization constitutes an operating cycle."). An asset representing the overfunded status of a single-employer defined benefit pension or postretirement plan shall be classified pursuant to Section 715-20-45. ##### [210-10-45-3](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:46256fc66f7f37ecfe5a416bdb1f111f5c0fc334eb28bd1334909ef18a39df02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A one-year time period shall be used as a basis for the segregation of current assets in cases where there are several operating cycles occurring within a year. However, if the period of the operating cycle is more than 12 months, as in, for instance, the tobacco, distillery, and lumber businesses, the longer period shall be used. If a particular entity has no clearly defined operating cycle, the one-year rule shall govern. ##### [210-10-45-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:8e263859844941f6a96d011ce3671e48f919e34345896e8cbec564f97f93f848 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The concept of the nature of current assets contemplates the exclusion from that classification of such resources as the following: 1. a Cash and claims to cash that are restricted as to withdrawal or use for other than current operations, are designated for expenditure in the acquisition or construction of noncurrent assets, or are segregated for the liquidation of long-term debts. Even though not actually set aside in special accounts, funds that are clearly to be used in the near future for the liquidation of long-term debts, payments to sinking funds, or for similar purposes shall also, under this concept, be excluded from current assets. However, if such funds are considered to offset maturing debt that has properly been set up as a current liability, they may be included within the current asset classification. 2. b Investments in securities (whether marketable or not) or advances that have been made for the purposes of control, affiliation, or other continuing business advantage. 3. c Receivables arising from unusual transactions (such as the sale of capital assets, or loans or advances to affiliates, officers, or employees) that are not expected to be collected within 12 months. 4. d Cash surrender value of life insurance policies. 5. e Land and other natural resources. 6. f Depreciable assets. 7. g Long-term prepayments that are fairly chargeable to the operations of several years, or deferred charges such as bonus payments under a long-term lease, costs of rearrangement of factory layout or removal to a new location. #### Classification of Current Liabilities ##### [210-10-45-5](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:fb665ca145ddd335247e2722bf23ce0eb90a016d593460e5059a4123cada7736 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A total of [current liabilities](https://asc.understandingaccounting.org/glossary/c/#current-liabilities "Current liabilities is used principally to designate obligations whose liquidation is reasonably expected to require the use of existing resources properly classifiable as current assets, or the creation of other current liabilities. See paragraphs 210-10-45-5210-10-45-6210-10-45-7210-10-45-8210-10-45-9210-10-45-10210-10-45-11210-10-45-12.") shall be presented in classified balance sheets. ##### [210-10-45-6](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:906f6de9c77cb45821038bff965064a6cd87e28176dad57a4e5679b179dbd767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The concept of current liabilities includes estimated or accrued amounts that are expected to be required to cover expenditures within the year for known obligations the amount of which can be determined only approximately (as in the case of provisions for accruing bonus payments) or where the specific person or persons to whom payment will be made cannot as yet be designated (as in the case of estimated costs to be incurred in connection with guaranteed servicing or repair of products already sold). ##### [210-10-45-7](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:c87f0719b958fa789ebc39335fe5213ddb96d950c4db0c4cf4bf6e3be0d822e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 470-10-45 includes guidance on various debt transactions that may result in current liability classification. These transactions are the following: 1. a Due on demand loan agreements 2. b Callable debt agreements 3. c [Short-term obligations](https://asc.understandingaccounting.org/glossary/s/#short-term-obligations "Short-term obligations are those that are scheduled to mature within one year after the date of an entity's balance sheet or, for those entities that use the operating cycle concept of working capital described in paragraphs 210-10-45-3 and 210-10-45-7, within an entity's operating cycle that is longer than one year.") expected to be refinanced. ##### [210-10-45-8](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:50aa904af5cee2d160e78a55cf0aba48dfd1647139940d8b858c49c747fe702e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As a balance sheet category, the classification of current liabilities generally includes obligations for items that have entered into the operating cycle, such as the following: 1. a Payables incurred in the acquisition of materials and supplies to be used in the production of goods or in providing services to be offered for sale. 2. b Collections received in advance of the delivery of goods or performance of services. Examples of such current liabilities are obligations resulting from advance collections on ticket sales, which will normally be liquidated in the ordinary course of business by the delivery of services. On the contrary, obligations representing long-term deferments of the delivery of goods or services would not be shown as current liabilities. Examples of the latter are the issuance of a long-term warranty or the advance receipt by a lessor of rental for the final period of a 10 year lease as a condition to execution of the lease agreement. 3. c Debts that arise from operations directly related to the operating cycle, such as accruals for wages, salaries, commissions, rentals, royalties, and income and other taxes. ##### [210-10-45-9](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:50d3d9c65a13ec6af57f8abd5b574092ff9c20e920d9b077ce30f5be6ffbaf7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other liabilities whose regular and ordinary liquidation is expected to occur within a relatively short period of time, usually 12 months, are also generally included, such as the following: 1. a Short-term debts arising from the acquisition of capital assets 2. b Serial maturities of long-term obligations 3. c Amounts required to be expended within one year under sinking fund provisions 4. d Agency obligations arising from the collection or acceptance of cash or other assets for the account of third persons. Loans accompanied by pledge of life insurance policies would be classified as current liabilities if, by their terms or by intent, they are to be repaid within 12 months. The pledging of life insurance policies does not affect the classification of the asset any more than does the pledging of receivables, inventories, real estate, or other assets as collateral for a short-term loan. However, when a loan on a life insurance policy is obtained from the insurance entity with the intent that it will not be paid but will be liquidated by deduction from the proceeds of the policy upon maturity or cancellation, the obligation shall be excluded from current liabilities. ##### [210-10-45-10](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:40113618e02a3b87264a2bf4cde1ba103c2439d4ab8cc493244e3df29a8ff709 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A liability representing the underfunded status of a single-employer defined benefit pension or postretirement plan shall be classified pursuant to Section 715-20-45. ##### [210-10-45-11](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:8e6eccb12aeb34a75d99ae243851fbf9712074a9cde247f370676181c631509f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the amounts of the periodic payments of an obligation are, by contract, measured by current transactions, as for example by rents or revenues received in the case of equipment trust certificates or by the depletion of natural resources in the case of property obligations, the portion of the total obligation to be included as a current liability shall be that representing the amount accrued at the balance sheet date. ##### [210-10-45-12](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:9a4542fe4421c3bd2382533d1e69137432e656da3ff7932586684721b737949b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The current liability classification is not intended to include debts to be liquidated by funds that have been accumulated in accounts of a type not properly classified as current assets, or long-term obligations incurred to provide increased amounts of [working capital](https://asc.understandingaccounting.org/glossary/w/#working-capital "Working capital (also called net working capital) is represented by the excess of current assets over current liabilities and identifies the relatively liquid portion of total entity capital that constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the entity.") for long periods. #### Valuation Allowances ##### [210-10-45-13](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:31.300Z to 2026-09-09T22:58:31.300Z Record version: sha256:be79188668749e916f62f4a60c49d1e256ad01c51b7c553dbd21f0274f2b1251 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Asset valuation allowances for losses such as those on receivables and investments shall be deducted from the assets or groups of assets to which the allowances relate. Source downloaded (UTC): 2026-09-09T22:58:33.760Z to 2026-09-09T22:58:33.760Z Record version: sha256:b5d8928c376d009208d4616f62442cee2a5832c84412f38100efc72a4cae413c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/10/#50-disclosure) SEC content: no #### Current Assets ##### [210-10-50-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:33.760Z to 2026-09-09T22:58:33.760Z Record version: sha256:f70b4bed359e166b9485e599962949999773f98c75d8c9a7550e3f80043f2183 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is important that the amounts at which [current assets](https://asc.understandingaccounting.org/glossary/c/#current-assets "Current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. See paragraphs 210-10-45-1210-10-45-2210-10-45-3210-10-45-4.") are stated be supplemented by information that reveals, for the various classifications of inventory items, the basis upon which their amounts are stated and, where practicable, indication of the method of determining the cost—for example, average cost, first-in first-out (FIFO), last-in first-out (LIFO), and so forth. Source downloaded (UTC): 2026-09-09T22:58:37.742Z to 2026-09-09T22:58:37.742Z Record version: sha256:b006cd677a57e9d1c3398da0a4aff891ffa503eb1d393949cb760c44ac5e9c5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/210/10/#60-relationships) SEC content: no #### Receivables ##### [210-10-60-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:37.742Z to 2026-09-09T22:58:37.742Z Record version: sha256:79036b72dbc285c5c8a57d0436c1ecbab3e814a2539743149874a06358777eee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the presentation of unearned discounts (other than cash or quantity discounts and the like), finance charges, and interest, see paragraph [310-10-45-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-8). #### Revenue Recognition ##### [210-10-60-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:37.742Z to 2026-09-09T22:58:37.742Z Record version: sha256:f509f90a0900058b288584ea4af6f802a476edf087705ee87b639c3a25602849 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the presentation of provisions for losses on contracts, see paragraph [605-35-45-2](https://asc.understandingaccounting.org/asc/605/35/#605-35-45-2). #### Reorganizations ##### [210-10-60-3](https://asc.understandingaccounting.org/asc/210/10/#210-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:37.742Z to 2026-09-09T22:58:37.742Z Record version: sha256:2d2ae6dad02fd838e1783f511cb04e4b805ff3fd04ddfdbd25eb626f0813657e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the presentation of liabilities subject to compromise and those not subject to compromise during reorganization proceedings, see paragraph [852-10-45-4](https://asc.understandingaccounting.org/asc/852/10/#852-10-45-4). #### Entertainment—Films ##### [210-10-60-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:37.742Z to 2026-09-09T22:58:37.742Z Record version: sha256:a32a9ac9bd63f10ff6678fb08c358863aa87684342954cb832035e7bb1ba24ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the presentation of film costs in a classified balance sheet, see paragraph [926-20-45-1](https://asc.understandingaccounting.org/asc/926/20/#926-20-45-1). Source downloaded (UTC): 2026-09-09T22:58:43.987Z to 2026-09-09T22:58:43.987Z Record version: sha256:64c0d586a15b50ee9b564017df1fef9e8a069eaa838921779208bcbfea5e9f16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/10/#sec-00-status) SEC content: yes ##### [210-10-S00-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:43.987Z to 2026-09-09T22:58:43.987Z Record version: sha256:2e94276812aa9523544010819c5b8ebe8c3892a62f5496d98b1ea969400898c1 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
210-10-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
210-10-S99-1AmendedAccounting Standards Update No. 2010-2108/02/2010
Source downloaded (UTC): 2026-09-09T22:58:46.271Z to 2026-09-09T22:58:46.271Z Record version: sha256:62600d93b40c1584888a5541c906c7e3ab97f76c36d75b3a49e372565a0d0da3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-S15: SEC 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/10/#sec-15-scope-and-scope-exceptions) SEC content: yes #### Entities ##### [210-10-S15-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:46.271Z to 2026-09-09T22:58:46.271Z Record version: sha256:0a129f585ddc3d234368cde4925bce22ac9f0715fbbe3e1c441867705bf0b419 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 Topic applies. Source downloaded (UTC): 2026-09-09T22:58:50.935Z to 2026-09-09T22:58:50.935Z Record version: sha256:43e0b5e894b05326224f6fd29e93eb76aae6b161a167f8af71f314b6f806f26a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/10/#sec-45-other-presentation-matters) SEC content: yes #### Classification ##### [210-10-S45-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:50.935Z to 2026-09-09T22:58:50.935Z Record version: sha256:0ba5a8bf3da5606f398c89dffa829aa42c60b2ee6847586c874f9f1fd3c0bbfe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02, for the presentation and classification of various items within the balance sheet. Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:3ccc09e79b5e05cd54a1ea78a19d0ecc51b57caa2e298c306604503248209fd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/10/#sec-50-disclosure) SEC content: yes #### Marketable Securities ##### [210-10-S50-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:b843aa92ba8b8dbf164893d5cb97429e45ce83c99957f3fcdbc2866399e64e52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.2, for disclosure requirements related to marketable securities. #### Receivables ##### [210-10-S50-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:4768e17dea7edf96715bea0c0c7ee79803b405239a6f44a725f40de980f598e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.3, for disclosure requirements related to receivables. #### Inventory ##### [210-10-S50-3](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:d73fc616e1dcd9f1ee0b1d77055bd0092b0f259f8c447175583213c7bd760ff1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.6, for disclosure requirements related to inventory. #### Other Investments ##### [210-10-S50-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:756231b5272b8535dc4c8d1ca29075505cb04b0c3bd2fbf0c076fd1a1118d5eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.12, for disclosure requirements related to other investments. #### Property, Plant, and Equipment ##### [210-10-S50-5](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:9c74c7e16ee1dc95f079b40f4712711fd69bdcc89f21859bfc2b98e6197bbd4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.13, for disclosure requirements related to property, plant, and equipment. #### Intangible Assets ##### [210-10-S50-6](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:aff7f0d14f2f30a1dfe2186f6fda401957b58dd22ab7b4d0a0e7230bcd930542 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.15, for disclosure requirements related to intangible assets. #### Other Assets, Including Deferred Costs ##### [210-10-S50-7](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:62f7466d58f3d651e75ab54c7a3c12e7d57b7e9e32c7a435bb5ce94179baca8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.17, for disclosure requirements related to other assets, including deferred costs. #### Debt ##### [210-10-S50-8](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:6b876817a7c1f45c1777347cefc0d0a23a061a81b7eab1ad226b96e9b3f0310a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.19, for disclosure requirements related to accounts and notes payable. ##### [210-10-S50-9](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:343e83505a60554d2ddaf4d55084ab53406b2cdabe1498db00d07f2aae659a10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.22, for disclosure requirements related to bonds, mortgages, and other long-term debt. ##### [210-10-S50-10](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-10) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:fc1974df06e969b1482342523fd128e171efb7d9dced55f54d5a8a7412ac7eb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-3), SAB Topic 1.B.1, Question 4, for SEC Staff views on disclosure pertaining to intercompany (intra-entity) debt due to a parent from a subsidiary. #### Redeemable Preferred Stock ##### [210-10-S50-11](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-11) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:ed6ad46a62195f13f9b0a400cec20a55d32674160927e1f56ea5395fc9eb5bd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.28, for disclosure requirements related to redeemable preferred stock. #### Compensating Balance Arrangements ##### [210-10-S50-12](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-12) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:4312db3b89f6cf3ee98cc93ed5c7c9e435c8433821c6477892c17d07905bb3d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-2), SAB Topic 6.H, for SEC Staff views on disclosure of compensating balances and short-term borrowing arrangements. #### Minority Interest Represented by Preferred Stock ##### [210-10-S50-13](https://asc.understandingaccounting.org/asc/210/10/#210-10-S50-13) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:53.193Z to 2026-09-09T22:58:53.193Z Record version: sha256:3e31f7bfadb073d24fd2b72c8c12df6850a9a5c85efdb8a23df9f3b810fc2a40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.27, for required disclosures for minority interest that is represented by preferred stock. Source downloaded (UTC): 2026-09-09T22:58:56.233Z to 2026-09-09T22:58:56.233Z Record version: sha256:044dbc1f3095541f4831d6b9a722142a79cff5cbc292598a0cbb30629112b311 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/210/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes #### Compensating Balance Arrangements ##### [210-10-S55-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:56.233Z to 2026-09-09T22:58:56.233Z Record version: sha256:b8194813250f2d2d641189bd63c4eb5333176e2abe83d804b02b51f54efc6bd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-2), SAB Topic 6.H.3.c, for SEC Staff guidance related to the calculation of float for the purposes of compensating balance arrangements disclosure. Source downloaded (UTC): 2026-09-09T22:59:02.715Z to 2026-09-09T22:59:02.715Z Record version: sha256:bba73459756129578b5c4a51405c49ab4d9a423ca2af06118722a148c7aea6fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/210/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:02.715Z to 2026-09-09T22:59:02.715Z Record version: sha256:bfd8900aa0f3bfb8ff5ee1edb5e47e379221a4d18b7720616697582bd2e885e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 5-02, Balance Sheets (17 CFR 210.5-02). - The purpose of this rule is to indicate the various line items and certain additional disclosures which, if applicable, and except as otherwise permitted by the Commission, should appear on the face of the balance sheets or related notes filed for the persons to whom this article pertains (see § 210.4-01(a)). - ASSETS AND OTHER DEBITS - Current Assets, when appropriate - 1\. Cash and cash items. Separate disclosure shall be made of the cash and cash items which are restricted as to withdrawal or usage. The provisions of any restrictions shall be described in a note to the financial statements. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits. In cases where compensating balance arrangements exist but are not agreements which legally restrict the use of cash amounts shown on the balance sheet, describe in the notes to the financial statements these arrangements and the amount involved, if determinable, for the most recent audited balance sheet required and for any subsequent unaudited balance sheet required in the notes to the financial statements. Compensating balances that are maintained under an agreement to assure future credit availability shall be disclosed in the notes to the financial statements along with the amount and terms of such agreement. - 2\. Marketable securities. The accounting and disclosure requirements for current marketable equity securities are specified by generally accepted accounting principles. With respect to all other current marketable securities, state, parenthetically or otherwise, the basis of determining the aggregate amount shown in the balance sheet, along with the alternatives of the aggregate cost or the aggregate market value at the balance sheet date. - 3\. Accounts and notes receivable. - (a) State separately amounts receivable from - (1) customers (trade); - (2) related parties (see § 210.4-08(k)); - (3) underwriters, promoters, and employees (other than related parties) which arose in other than the ordinary course of business; 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. - (c) If receivables include amounts due under [long-term contracts](https://asc.understandingaccounting.org/glossary/l/#long-term-contracts "See paragraph 210-10-S99-1, Regulation S-X Rule 5-02.6(d), for a definition of long-term contracts or programs.") (see §210.5-02.6(d)), state separately in the balance sheet or in a note to the financial statements the following amounts: - (1) Balances billed but not paid by customers under retainage provisions in contracts. - (2) Amounts representing the recognized sales value of performance and such amounts that had not been billed and were not billable to customers at the date of the balance sheet. - Include a general description of the prerequisites for billing. - (3) Billed or unbilled amounts representing claims or other similar items subject to uncertainty concerning their determination or ultimate realization. - Include a description of the nature and status of the principal items comprising such amount. - (4) With respect to (1) through (3) above, also state the amounts included in each item which are expected to be collected after one year. Also state, by year, if practicable, when the amounts of retainage (see (1) above) are expected to be collected. - 4\. Allowances for doubtful accounts and notes receivable. The amount is to be set forth separately in the balance sheet or in a note thereto. - 5\. Unearned income. - 6\. Inventories. - (a) State separately in the balance sheet or in a note thereto, if practicable, the amounts of major classes of inventory such as: - (1) Finished goods; - (2) inventoried costs relating to long-term contracts or programs (see paragraph (d) of this section); - (3) work in process; - (4) raw materials; and - (5) supplies. - If the method of calculating a LIFO inventory does not allow for the practical determination of amounts assigned to major classes of inventory, the amounts of those classes may be stated under cost flow assumptions other that LIFO with the excess of such total amount over the aggregate LIFO amount shown as a deduction to arrive at the amount of the LIFO inventory. - (b) The basis of determining the amounts shall be stated. - If _cost_ is used to determine any portion of the inventory amounts, the description of this method shall include the nature of the cost elements included in inventory. Elements of _cost_ include, among other items, retained costs representing the excess of manufacturing or production costs over the amounts charged to cost of sales or delivered or in-process units, initial tooling or other deferred startup costs, or general and administrative costs. - The method by which amounts are removed from inventory (e. g., average cost, first-in, first-out, last-in, first-out, estimated average cost per unit) shall be described. If the estimated average cost per unit is used as a basis to determine amounts removed from inventory under a total program or similar basis of accounting, the principal assumptions (including, where meaningful, the aggregate number of units expected to be delivered under the program, the number of units delivered to date and the number of units on order) shall be disclosed. - If any general and administrative costs are charged to inventory, state in a note to the financial statements the aggregate amount of the general and administrative costs incurred in each period and the actual or estimated amount remaining in inventory at the date of each balance sheet. - (c) If the LIFO inventory method is used, the excess of replacement or current cost over stated LIFO value shall, if material, be stated parenthetically or in a note to the financial statements. - (d) For purposes of §§ 210.5-02.3 and 210.5-02.6, long-term contracts or programs include - (1) all contracts or programs for which gross profits are recognized on a percentage-of-completion method of accounting or any variant thereof (e. g., delivered unit, cost to cost, physical completion), and - (2) any contracts or programs accounted for on a completed contract basis of accounting where, in either case, the contracts or programs have associated with them material amounts of inventories or unbilled receivables and where such contracts or programs have been or are expected to be performed over a period of more than twelve months. Contracts or programs of shorter duration may also be included, if deemed appropriate. - For all long-term contracts or programs, the following information, if applicable, shall be stated in a note to the financial statements: - (i) The aggregate amount of manufacturing or production costs and any related deferred costs (e. g., initial tooling costs) which exceeds the aggregate estimated cost of all in-process and delivered units on the basis of the estimated average cost of all units expected to be produced under long-term contracts and programs not yet complete, as well as that portion of such amount which would not be absorbed in cost of sales based on existing firm orders at the latest balance sheet date. In addition, if practicable, disclose the amount of deferred costs by type of cost (e. g., initial tooling, deferred production, etc.). - (ii) The aggregate amount representing claims or other similar items subject to uncertainty concerning their determination or ultimate realization, and include a description of the nature and status of the principal items comprising such aggregate amount. - (iii) The amount of progress payments netted against inventory at the date of the balance sheet. - 7\. Prepaid expenses. - 8\. Other current assets. State separately, in the balance sheet or in a note thereto, any amounts in excess of five percent of total current assets. - 9\. Total current assets, when appropriate. - 10\. Securities of related parties. (See § 210.4-08(k).) - 11\. Indebtedness of related parties—not current. (See § 210.4-08(k).) - 12\. Other investments. The accounting and disclosure requirements for non-current marketable equity securities are specified by generally accepted accounting principles. With respect to other security investments and any other investment, state, parenthetically or otherwise, the basis of determining the aggregate amounts shown in the balance sheet, along with the alternate of the aggregate cost or aggregate market value at the balance sheet date. - 13\. Property, plant and equipment. - (a) State the basis of determining the amounts. - (b) Tangible and intangible utility plant of a public utility company shall be segregated so as to show separately the original cost, plant acquisition adjustments, and plant adjustments, as required by the system of accounts prescribed by the applicable regulatory authorities. This rule shall not be applicable in respect to companies which are not required to make such a classification. - 14\. Accumulated depreciation, depletion, and amortization of property, plant and equipment. The amount is to be set forth separately in the balance sheet or in a note thereto. - 15\. Intangible assets. State separately each class of such assets which is in excess of five percent of the total assets, along with the basis of determining the respective amounts. Any significant addition or deletion shall be explained in a note. - 16\. Accumulated depreciation and amortization of intangible assets. The amount is to be set forth separately in the balance sheet or in a note thereto. - 17\. Other assets. State separately, in the balance sheet or in a note thereto, any other item not properly classed in one of the preceding asset captions which is in excess of five percent to total assets. - Any significant addition or deletion should be explained in a note. With respect to any significant deferred charge, state the policy for deferral and amortization. - 18\. Total assets. - LIABILITIES AND STOCKHOLDERS' EQUITY - Current Liabilities, When Appropriate - 19\. Accounts and notes payable. - (a) State separately amounts payable to - (1) banks for borrowings; - (2) factors or other financial institutions for borrowings; - (3) holders of commercial paper; - (4) trade creditors; - (5) related parties (see § 210.4-08(k)); - (6) underwriters, promoters, and employees (other than related parties); and - (7) others. - Amounts applicable to (1), (2) and (3) may be stated separately in the balance sheet or in a note thereto. - (b) The amount and terms (including commitment fees and the conditions under which lines may be withdrawn) of unused lines of credit for short-term financing shall be disclosed, if significant, in the notes to the financial statements. The weighted average interest rate on short term borrowings outstanding as of the date of each balance sheet presented shall be furnished in a note. The amount of these lines of credit which support a commercial paper borrowing arrangement or similar arrangements shall be separately identified. - 20\. Other current liabilities. State separately, in the balance sheet or in a note thereto, any item in excess of 5 percent of total current liabilities. Such items may include, but are not limited to, accrued payrolls, accrued interest, taxes, indicating the current portion of deferred income taxes, and the current portion of long-term debt. Remaining items may be shown in one amount. - 21\. Total current liabilities, when appropriate. - Long-Term Debt. - 22\. Bonds, mortgages and other long-term debt, including capitalized leases. - (a) State separately, in the balance sheet or in a note thereto, each issue or type of obligation and such information as will indicate: - (1) The general character of each type of debt including the rate of interest; - (2) the date of maturity, or, if maturing serially, a brief indication of the serial maturities, such as "maturing serially from 1980 to 1990"; - (3) if the payment of principal or interest is contingent, an appropriate indication of such contingency; - (4) a brief indication of priority; and - (5) if convertible, the basis. For amounts owed to related parties, see § 210.4-08(k). - (b) The amount and terms (including commitment fees and the conditions under which commitments may be withdrawn) of unused commitments for long-term financing arrangements that would be disclosed under this rule if used shall be disclosed in the notes to the financial statements if significant. - 23\. Indebtedness to related parties—noncurrent. Include under this caption indebtedness to related parties as required under § 210.4-08(k). - 24\. Other liabilities. State separately, in the balance sheet or in a note thereto, any item not properly classified in one of the preceding liability captions which is in excess of 5 percent of total liabilities. - 25\. Commitments and contingent liabilities. - 26\. Deferred credits. State separately in the balance sheet amounts for (a) deferred income taxes, (b) deferred tax credits, and (c) material items of deferred income. - Redeemable Preferred Stocks. - 27\. Preferred stocks subject to mandatory redemption requirements or whose redemption is outside the control of the issuer. - (a) Include under this caption amounts applicable to any class of stock which has any of the following characteristics: - (1) it is redeemable at a fixed or determinable price on a fixed or determinable date or dates, whether by operation of a sinking fund or otherwise; - (2) it is redeemable at the option of the holder; or - (3) it has conditions for redemption which are not solely within the control of the issuer, such as stocks which must be redeemed out of future earnings. - Amounts attributable to preferred stock which is not redeemable or is redeemable solely at the option of the issuer shall be included under § 210.5-02.28 unless it meets one or more of the above criteria. - (b) State on the face of the balance sheet the title of each issue, the carrying amount, and redemption amount. (If there is more than one issue, these amounts may be aggregated on the face of the balance sheet and details concerning each issue may be presented in the note required by paragraph (c) below.) Show also the dollar amount of any shares subscribed but unissued, and show the deduction of subscriptions receivable therefrom. - If the carrying value is different from the redemption amount, describe the accounting treatment for such difference in the note required by paragraph (c) below. - Also state in this note or on the face of the balance sheet, for each issue, the number of shares authorized and the number of shares issued or outstanding, as appropriate (See § 210.4-07). - (c) State in a separate note captioned "Redeemable Preferred Stocks" - (1) a general description of each issue, including its redemption features (e. g. sinking fund, at option of holders, out of future earnings) and the rights, if any, of holders in the event of default, including the effect, if any, on junior securities in the event a required dividend, sinking fund, or other redemption payment(s) is not made; - (2) the combined aggregate amount of redemption requirements for all issues each year for the five years following the date of the latest balance sheet; and - (3) the changes in each issue for each period for which a statement of comprehensive income is required to be filed. (See also § 210.4-08(d).) - (d) Securities reported under this caption are not to be included under a general heading "stockholders' equity" or combined in a total with items described in captions 29, 30 or 31 which follow. - Non-Redeemable Preferred Stocks. - 28\. Preferred stocks which are not redeemable or are redeemable solely at the option of the issuer. State on the face of the balance sheet, or if more than one issue is outstanding state in a note, the title of each issue and the dollar amount thereof. Show also the dollar amount of any shares subscribed but unissued, and show the deduction of subscriptions receivable therefrom. State on the face of the balance sheet or in a note, for each issue, the number of shares authorized and the number of shares issued or outstanding, as appropriate (see § 210.4-07). Show in a note or separate statement the changes in each class of preferred shares reported under this caption for each period for which a statement of comprehensive income is required to be filed. (See also § 210.4-08(d).) - Common Stocks. - 29\. Common stocks. For each class of common shares state, on the face of the balance sheet, the number of shares issued or outstanding, as appropriate (see § 210.4-07), and the dollar amount thereof. If convertible, this fact should be indicated on the face of the balance sheet. For each class of common shares state, on the face of the balance sheet or in a note, the title of the issue, the number of shares authorized, and, if convertible, the basis of conversion (see also § 210.4-08(d)). Show also the dollar amount of any common shares subscribed but unissued, and show the deduction of subscriptions receivable therefrom. Show in a note or statement the changes in each class of common shares for each period for which a statement of comprehensive income is required to be filed. - Other Stockholders' Equity. - 30\. Other stockholders' equity. - (a) Separate captions shall be shown for - (1) additional paid-in capital, - (2) other additional capital and - (3) retained earnings (i) appropriated and (ii) unappropriated. (See § 210.4-08(e)), and - (4) accumulated other comprehensive income. - Note 1 to Paragraph 30.(a). Additional paid-in capital and other additional capital may be combined with the stock caption to which it applies, if appropriate. - (b) For a period of at least 10 years subsequent to the effective date of a quasi-reorganization, any description of retained earnings shall indicate the point in time from which the new retained earnings dates and for a period of at least three years shall indicate, on the face of the balance sheet, the total amount of the deficit eliminated. - Noncontrolling Interests - 31\. Noncontrolling interests in consolidated subsidiaries. State separately in a note the amounts represented by preferred stock and the applicable dividend requirements if the preferred stock is material in relation to the consolidated equity. - 32\. Total liabilities and equity. - \[45 FR 63671, Sept. 25, 1980, as amended at 46 FR 43412, Aug. 28, 1981; 47 FR 29837, July 9, 1982; 50 FR 25215, June 18, 1985; 50 FR 49533, Dec. 3, 1985; 59 FR 65636, Dec. 20, 1994; 74 FR 18615, Apr. 23, 2009; 83 FR 50201, Oct. 4, 2018\] #### SEC Staff Guidance ##### [210-10-S99-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:02.715Z to 2026-09-09T22:59:02.715Z Record version: sha256:371652f69c56fb9d3656f95b4f6e20732ad3ad81a16eb1497781ffba41d19702 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 6.H, Accounting Series Release 148—Disclosures of Compensating Balances and Short-Term Borrowing Arrangements. - Facts: ASR 148 (as modified) amends Regulation S-X to include: - 1\. Disclosure of compensating balance arrangements. - 2\. Segregation of cash for compensating balance arrangements that are legal restrictions on the availability of cash. - SAB Topic 6.H.1, Applicability - a. Arrangements with other lending institutions. - Question: In addition to banks, is ASR 148 applicable to arrangements with factors, commercial finance companies or other lending entities? - Interpretive Response: Yes. - b. Bank holding companies and brokerage firms. - Question: Do the provisions of ASR 148 apply to bank holding companies and to brokerage firms filing under Rule 17a-5? - Interpretive Response: Yes; however, brokerage firms are not expected to meet these requirements when filing Form X-17a-5. - c. Financial statements of parent company and unconsolidated subsidiaries. - Question: Are the provisions of ASR 148 applicable to parent company financial statements in addition to consolidated financial statements? To financial statements of unconsolidated subsidiaries? - Interpretive Response: ASR 148 data for consolidated financial statements only will generally be sufficient when a filing includes consolidated and parent company financial statements. Such data are required for each unconsolidated subsidiary or other entity when a filing is required to include complete financial statements of those entities. When the filing includes summarized financial data in a footnote about such entities, the disclosures under ASR 148 relating to the consolidated financial statements will be sufficient. - d. Foreign lenders. - Question: Are ASR 148 disclosure requirements applicable to arrangements with foreign lenders? - Interpretive Response: Yes. - SAB Topic 6.H.3, Compensating balances - a. Compensating balances for future credit availability. - Facts: Rule 5-02.1 of Regulation S-X requires disclosure of compensating balances in order to avoid undisclosed commingling of such balances with other funds having different liquidity characteristics and bearing no determinable relationship to borrowing arrangements. It also requires footnote disclosure distinguishing the amounts of such balances maintained under a formal agreement to assure future credit availability. - Question: In disclosing compensating balances maintained to assure future credit availability, is it necessary to segregate compensating balances for an unused portion of a regular line of credit when a total compensating balance amount covering both used and unused amounts of a line of credit is disclosed? - Interpretive Response: No. - b. Changes in compensating balances. - Facts: ASR 148 guidelines indicate the need for additional disclosures where compensating balances were materially greater during the period than at the end of the period. - Question: Does this disclosure relate to changes in the arrangement (e. g., the required compensating balance percentage) or changes in borrowing levels? - Interpretive Response: Both. - c. Float. - Facts: ASR 148 states that "compensating balance arrangements... are normally expressed in terms of collected bank ledger balances but the financial statements are presented on the basis of the company's books. In order to make the disclosure of compensating balance amounts... consistent with the cash amounts reflected in the financial statements, the balance figure agreed upon by the bank and the company should be adjusted if possible by the estimated float." - Question: In determining the amount of "float" as suggested by ASR 148 guidelines, frequently an adjustment to the bank balance is required for "uncollected funds." On what basis should this adjustment be estimated? - Interpretive Response: The adjustment should be estimated based upon the method used by the bank or a reasonable approximation of that method. The following is a sample computation of the amount of compensating balances to be disclosed where uncollected funds are involved. - Assumptions: The company has agreed to maintain compensating balances equal to 20% of short-term borrowings. - ![](https://asc.understandingaccounting.org/asc-img/GUID-1D15A80F-7668-42A0-B2F8-442396FC550E-low.gif) Short-term borrowings " $10,000,000 " Compensating balances per bank balances " 2,000,000 " Estimated float (approximates the excess of outstanding checks over deposits in transit) " 480,000 " Estimated uncollected funds " 320,000 " Computation: Compensating balances per bank balances " 2,000,000 " Estimated uncollected funds " 320,000 " Estimated float " (480,000)" "Compensating balances stated in terms of a book cash balance and to be disclosed " " $1,840,000 " - SAB Topic 6.H.4, Miscellaneous - a. Periods required. - Question: For what periods are ASR 148 disclosures required? - Interpretive Response: Disclosure of compensating balance arrangements and other disclosures called for in ASR 148 are required for the latest fiscal year but are generally not required for any later interim period unless a material change has occurred since year end. - b. 10-Q Disclosures. - Question: Are ASR 148 disclosures required in 10-Q's? - Interpretive Response: In general, ASR 148 disclosures are not required in Form 10-Q. However, in some instances material changes in borrowing arrangements or borrowing levels may give rise to the need for disclosure either in Form 10-Q or Form 8-K. Source downloaded (UTC): 2026-09-09T22:59:04.667Z to 2026-09-09T22:59:32.460Z Record version: sha256:82473ddfffb7f0d750809b5902c6ba65af665e03ad024bc62a823fd3f3de8974 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20: Balance Sheet — Offsetting ### Machine-generated study aids ```json { "summary": "ASC 210-20 states the general principle that offsetting assets and liabilities on the balance sheet is improper unless a right of setoff exists, and sets the four conditions for a right of setoff (210-20-45-1): two parties owe each other determinable amounts, the reporting party has the right to set off, intends to set off, and the right is enforceable at law (including in bankruptcy). It also provides a narrow exception permitting (but not requiring) offsetting of payables and receivables under same-counterparty, same-settlement-date repurchase and reverse repurchase agreements accounted for as collateralized borrowings that meet all conditions in 210-20-45-11, and it imposes extensive netting disclosures for derivatives, repos/reverse repos, and securities borrowing/lending subject to enforceable master netting arrangements.", "key_points": [ "Offsetting is improper unless a right of setoff exists; all four conditions of 210-20-45-1 must be met (mutual determinable amounts owed, right to set off, intent to set off, and enforceability at law), and a debtor with a valid right of setoff may report the net amount (210-20-45-2).", "Ability to set off is not enough: if the reporting party does not intend to set off, net presentation is not representationally faithful (210-20-45-4); intent is evidenced by management's acknowledgment and, if applicable, demonstrated execution of setoff in similar situations (210-20-45-5).", "'Enforceable at law' means the right should be upheld in bankruptcy; offsetting is appropriate only if all available positive and negative evidence gives reasonable assurance the right would be upheld in bankruptcy, considering state law and the U.S. Bankruptcy Code (210-20-45-8 and 45-9).", "Cash or other assets generally may not be offset against taxes or other amounts owed to governmental bodies, except where the purchase of tax-acceptable government securities is in substance a prepayment of taxes payable in the near future (210-20-45-6 through 45-7).", "Notwithstanding the intent condition, an entity may elect to offset repo payables against reverse repo receivables accounted for as collateralized borrowings only if all conditions of 210-20-45-11 are met (same counterparty, same explicit settlement date, master netting arrangement, book entry securities, qualifying securities transfer system and banking arrangements, and same settlement account); the election must be applied consistently and net receivables may not be offset against net payables (210-20-45-12).", "Where maturities differ, only the party with the nearer maturity may offset (210-20-45-3); the general two-party setoff principle is not modified by the specialized offsetting regimes listed in 210-20-15-3 (e.g., 715-30, 715-60, 740-10, 815-10-45-1 through 45-7, 842-50).", "Entities must disclose, in tabular format separately for assets and liabilities, gross amounts, amounts offset, net amounts presented, amounts subject to an enforceable master netting arrangement not otherwise offset (including financial and cash collateral), and the resulting net amount (210-20-50-3 and 50-4), plus a description of the nature of the rights of setoff (210-20-50-5)." ], "categories": [ "Presentation", "Disclosure", "Financial instruments", "Derivatives and hedging" ], "audience_level": "intermediate", "student_note": "Balance sheet netting materially shrinks reported assets and liabilities for financial institutions, so examiners love the four-part test in 210-20-45-1. The most common mistake is assuming a master netting agreement alone permits offsetting — it does not; you still need intent plus legal enforceability (including in bankruptcy), except for the narrow repo/reverse repo election in 210-20-45-11 and the derivative collateral rules in 815-10-45.", "related_topics": [ "815-10", "740-10", "715-30", "860-30", "942-210", "825-10" ], "key_concepts": [ "right of setoff", "offsetting", "master netting arrangement", "repurchase and reverse repurchase agreements", "enforceability in bankruptcy", "intent to set off", "cash collateral", "net presentation in statement of financial position" ] } ``` Source downloaded (UTC): 2026-09-09T22:59:04.667Z to 2026-09-09T22:59:04.667Z Record version: sha256:1638ada1f70e3a1500e814ea78629411fa32fce6be295f01740b7d35fdb2ab28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/20/#00-status) SEC content: no ##### [210-20-00-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:04.667Z to 2026-09-09T22:59:04.667Z Record version: sha256:60ba80a0f6eec328d08512e64579bc4aead5d4ef1ba42113694ef1383473c7ec 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
CashAddedAccounting Standards Update No. 2012-0410/01/2012
Commencement Date of the Lease (Commencement Date)AddedAccounting Standards Update No. 2016-0202/25/2016
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Leveraged LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Repurchase Agreement Accounted for as a Collateralized Borrowing (formerly Repurchase Agreement [2nd def.])AddedAccounting Standards Update No. 2014-0603/14/2014
Repurchase Agreement (2nd def)SupersededAccounting Standards Update No. 2014-0603/14/2014
Reverse Repurchase Agreement Accounted for as a Collateralized Borrowing (formerly Reverse Repurchase Agreement)AddedAccounting Standards Update No. 2014-0603/14/2014
Reverse Repurchase AgreementSupersededAccounting Standards Update No. 2014-0603/14/2014
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
210-20-05-3AmendedAccounting Standards Update No. 2014-0603/14/2014
210-20-15-3AmendedMaintenance Update 2017-21 (PDF)12/22/2017
210-20-15-3AmendedAccounting Standards Update No. 2016-0202/25/2016
210-20-15-3AmendedAccounting Standards Update No. 2013-1107/18/2013
210-20-15-3AmendedAccounting Standards Update No. 2012-0410/01/2012
210-20-45-11AmendedAccounting Standards Update No. 2014-0603/14/2014
210-20-50-1 through 50-5
AmendedAccounting Standards Update No. 2025-1112/08/2025
210-20-50-1AmendedAccounting Standards Update No. 2014-0603/14/2014
210-20-50-1AmendedAccounting Standards Update No. 2013-0101/31/2013
210-20-50-1 through 50-6
AddedAccounting Standards Update No. 2011-1112/16/2011
210-20-50-2AmendedAccounting Standards Update No. 2013-0101/31/2013
210-20-55-1 through 55-22
AddedAccounting Standards Update No. 2011-1112/16/2011
210-20-55-2 through 55-5SupersededAccounting Standards Update No. 2013-0101/31/2013
210-20-55-7AmendedAccounting Standards Update No. 2013-0101/31/2013
210-20-55-10AAddedAccounting Standards Update No. 2013-0101/31/2013
210-20-55-18AAddedAccounting Standards Update No. 2012-0410/01/2012
210-20-55-20 through 55-22
AmendedAccounting Standards Update No. 2013-0101/31/2013
210-20-55-22AmendedAccounting Standards Update No. 2016-1912/14/2016
210-20-60-3AmendedAccounting Standards Update No. 2013-1107/18/2013
210-20-60-3AAddedAccounting Standards Update No. 2012-0410/01/2012
210-20-60-4AmendedAccounting Standards Update No. 2016-0202/25/2016
210-20-60-7AmendedMaintenance Update 2017-21 (PDF)12/22/2017
210-20-65-1AmendedAccounting Standards Update No. 2013-0101/31/2013
210-20-65-1AddedAccounting Standards Update No. 2011-1112/16/2011
210-20-65-2AddedAccounting Standards Update No. 2013-0101/31/2013
Source downloaded (UTC): 2026-09-09T22:59:07.769Z to 2026-09-09T22:59:07.769Z Record version: sha256:17bb9a2f7cc61f1491633d970d82cd646f81fd0de5e9624d509d9c27d7c97047 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/20/#05-overview-and-background) SEC content: no ##### [210-20-05-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:07.769Z to 2026-09-09T22:59:07.769Z Record version: sha256:476031241c53429e52790ccdef97609c4c4532309718ea2f8ea786149e455adb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides criteria for offsetting amounts related to certain contracts and provides guidance on presentation. It is a general principle of accounting that the offsetting of assets and liabilities in the balance sheet is improper except if a [right of setoff](https://asc.understandingaccounting.org/glossary/r/#right-of-setoff "A right of setoff is a debtor's legal right, by contract or otherwise, to discharge all or a portion of the debt owed to another party by applying against the debt an amount that the other party owes to the debtor.") exists. ##### [210-20-05-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:07.769Z to 2026-09-09T22:59:07.769Z Record version: sha256:ecc4ed7ace5664ae6b2c730a9eae540942c4be6a6b912c66d2decedac35c7f24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The general principle that the offsetting of assets and liabilities is improper except where a right of setoff exists is usually thought of in the context of unconditional receivables from and payables to another party. That general principle also applies to conditional amounts recognized for contracts under which the amounts to be received or paid or items to be exchanged in the future depend on future interest rates, future exchange rates, future commodity prices, or other factors. #### Repurchase and Reverse Repurchase Agreements ##### [210-20-05-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:07.769Z to 2026-09-09T22:59:07.769Z Record version: sha256:fe911d4a99f275c15c92c28c1e5fe80df2b90fae84c22256e96bc04471019ee5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As defined, [repurchase agreements accounted for as collateralized borrowings](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement-accounted-for-as-a-collateralized-borrowing "A repurchase agreement (repo) refers to a transaction in which a seller-borrower of securities sells those securities to a buyer-lender with an agreement to repurchase them at a stated price plus interest at a specified date or in specified circumstances. A repurchase agreement accounted for as a collateralized borrowing is a repo that does not qualify for sale accounting under Topic 860. The payable under a repurchase agreement accounted for as a collateralized borrowing refers to the amount of the seller-borrower's obligation recognized for the future repurchase of the securities from the buyer-lender. In certain industries, the terminology is reversed; that is, entities in those industries refer to this type of agreement as a reverse repo.") and [reverse repurchase agreements accounted for as collateralized borrowings](https://asc.understandingaccounting.org/glossary/r/#reverse-repurchase-agreement-accounted-for-as-a-collateralized-borrowing "A reverse repurchase agreement accounted for as a collateralized borrowing (also known as a reverse repo) refers to a transaction that is accounted for as a collateralized lending in which a buyer-lender buys securities with an agreement to resell them to the seller-borrower at a stated price plus interest at a specified date or in specified circumstances. The receivable under a reverse repurchase agreement accounted for as a collateralized borrowing refers to the amount due from the seller-borrower for the repurchase of the securities from the buyer-lender. In certain industries, the terminology is reversed; that is, entities in those industries refer to this type of agreement as a repo.") represent collateralized borrowing and lending transactions. These transactions may involve a master netting agreement between the parties. This Subtopic addresses offsetting for such borrowing and lending transactions. Source downloaded (UTC): 2026-09-09T22:59:11.191Z to 2026-09-09T22:59:11.191Z Record version: sha256:80eb74e3a5d171d43176472f5b5a692ac7d68a0aa586bca39d7d622880371a70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/20/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [210-20-15-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:11.191Z to 2026-09-09T22:59:11.191Z Record version: sha256:777124d74774d0576f390bd7bb7cd86fe68a06986162f8659e243e489c5a138d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Transactions ##### [210-20-15-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:11.191Z to 2026-09-09T22:59:11.191Z Record version: sha256:a753e4ed059b5170ab90e8e69725cdd71b7ba1e66ef49c53d8c9aaaf834b0e67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following types of transactions and contract arrangements: 1. a The derecognition or nonrecognition of assets and liabilities. Derecognition by sale of an asset or extinguishment of a liability results in removal of a recognized asset or liability and generally results in the recognition of gain or loss. Although conceptually different, offsetting that results in a net amount of zero and derecognition with no gain or loss are indistinguishable in their effects on the statement of financial position. Likewise, not recognizing assets and liabilities of the same amount in financial statements achieves similar reported results. #### Other Considerations ##### [210-20-15-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:11.191Z to 2026-09-09T22:59:11.191Z Record version: sha256:cc3c7878629ed801eb2357dd5b708bc3f84218e4632fcdde713a913205d202e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The general principle of a [right of setoff](https://asc.understandingaccounting.org/glossary/r/#right-of-setoff "A right of setoff is a debtor's legal right, by contract or otherwise, to discharge all or a portion of the debt owed to another party by applying against the debt an amount that the other party owes to the debtor.") involves only two parties, and exceptions to that general principle shall be limited to practices specifically permitted by the Subtopics listed in this paragraph. Various accounting Subtopics specify accounting treatments in circumstances that result in offsetting or in a presentation in a statement of financial position that is similar to the effect of offsetting. The guidance in this Subtopic does not modify the accounting treatment in the particular circumstances prescribed by any of the following Subtopics: 1. a Subtopic 842-50 ([leveraged leases](https://asc.understandingaccounting.org/glossary/l/#leveraged-lease "From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.")) 2. b Subtopic 715-30 (accounting for pension plan assets and liabilities) 3. c Subtopic 715-60 (accounting for plan assets and liabilities) 4. d Subtopic 740-10 (net tax asset or liability amounts reported) 5. dd Paragraphs [815-10-45-1 through 45-7](https://asc.understandingaccounting.org/asc/815/10/#815-10-45-1) (derivative instruments with the right to reclaim cash collateral or the obligation to return cash collateral) 6. e Subtopics 940-320 (trade date accounting for trading portfolio positions) and 910-405 (advances received on construction contracts) 7. f Paragraph [942-210-45-3A](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-3A) (reciprocal balances with other banks). Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:1004ee2ebd5591b78d929f65859a5b5addb2f4a4ec700fe88c290c34e93b6414 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/20/#45-other-presentation-matters) SEC content: no #### Right of Setoff Conditions ##### [210-20-45-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:51c04d62d1183753669b877b657f2dc591104cec86a3b5a1ce440eab2e495d97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [right of setoff](https://asc.understandingaccounting.org/glossary/r/#right-of-setoff "A right of setoff is a debtor's legal right, by contract or otherwise, to discharge all or a portion of the debt owed to another party by applying against the debt an amount that the other party owes to the debtor.") exists when all of the following conditions are met: 1. a Each of two parties owes the other determinable amounts. 2. b The reporting party has the right to set off the amount owed with the amount owed by the other party. 3. c The reporting party intends to set off. 4. d The right of setoff is enforceable at law. ##### [210-20-45-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:b8ea9b7d742df1161ad41669877b58f3adfe618c24617e8e6ab8074be016834e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A debtor having a valid right of setoff may offset the related asset and liability and report the net amount. ##### [210-20-45-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:92f3e9006c9a6e5058b7efa34c563e006293b4817dacd8ad01033b8dfe6e240c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the parties meet the criteria specified in paragraph [210-20-45-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-1), specifying currency or interest rate requirements is unnecessary. However, if maturities differ, only the party with the nearer maturity could offset because the party with the longer term maturity must settle in the manner that the other party selects at the earlier maturity date. ##### [210-20-45-4](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:c66bf3fb4fb33227166e58a17e37f713cf258b228b74b55bd239b0545dca98f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a party does not intend to set off even though the ability to set off exists, an offsetting presentation in the statement of financial position is not representationally faithful. ##### [210-20-45-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:823b94ec700c476f959e196597c5d6dddb8162917bfe6974f0267ee4a3be6f82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Acknowledgment of the intent to set off by the reporting party and, if applicable, demonstration of the execution of the setoff in similar situations meet the criterion of intent. #### Offsetting Securities Against Taxes Payable ##### [210-20-45-6](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:d62307c22f6ca48195674fc96a7d8f9a51d8c506664bc52d03e1536000786d98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The offset of cash or other assets against the tax liability or other amounts owing to governmental bodies shall not be acceptable except in the circumstances described in the following paragraph. ##### [210-20-45-7](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:35cf3cace830952b7e080c563d7afe9e3cbae603d61dbef4728219a60d9e689d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Most securities issued by governments are not by their terms designed specifically for the payment of taxes and, accordingly, shall not be deducted from taxes payable on the balance sheet. The only exception to this general principle occurs when it is clear that a purchase of securities (acceptable for the payment of taxes) is in substance an advance payment of taxes that will be payable in the relatively near future, so that in the special circumstances the purchase is tantamount to the prepayment of taxes. This occurs at times, for example, as an accommodation to a local government and in some instances when governments issue securities that are specifically designated as being acceptable for the payment of taxes of those governments. #### Assurance that Right of Setoff Is Enforceable in a Bankruptcy ##### [210-20-45-8](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:c9764f477d492c94dc989d2f90899933d886905427fdaccb6e4599e2f19afd83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. State laws about the right of setoff may provide results different from those normally provided by contract or as a matter of common law. Similarly, the U.S. Bankruptcy Code imposes restrictions on or prohibitions against the [right of setoff](https://asc.understandingaccounting.org/glossary/r/#right-of-setoff "A right of setoff is a debtor's legal right, by contract or otherwise, to discharge all or a portion of the debt owed to another party by applying against the debt an amount that the other party owes to the debtor.") in bankruptcy under certain circumstances. Legal constraints should be considered to determine whether the right of setoff is enforceable. ##### [210-20-45-9](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:915b7d48f27937d20176887026d8ccf3ab0431d82ee54a9aac99d5761cd76a29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The phrase _enforceable at law_ encompasses the idea that the right of setoff should be upheld in bankruptcy. The nature of support required for an assertion in financial statements that a right of setoff is enforceable at law is subject to a cost-benefit constraint and depends on facts and circumstances. All of the information that is available, either supporting or questioning enforceability, should be considered. Offsetting is appropriate only if the available evidence, both positive and negative, indicates that there is reasonable assurance that the right of setoff would be upheld in bankruptcy. ##### [210-20-45-10](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:515a0408fdb5d6c05299ffda2e877a2315478b4250f63dcf9b080f9c52d87973 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Repurchase and Reverse Repurchase Agreements ##### [210-20-45-11](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:fde7031b5e375738dc4f91f28320518bacd7677dedaf6560cb139775ecfa169d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Notwithstanding the condition in paragraph [210-20-45-1(c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-1), an entity may, but is not required to, offset amounts recognized as payables under [repurchase agreements accounted for as collateralized borrowings](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement-accounted-for-as-a-collateralized-borrowing "A repurchase agreement (repo) refers to a transaction in which a seller-borrower of securities sells those securities to a buyer-lender with an agreement to repurchase them at a stated price plus interest at a specified date or in specified circumstances. A repurchase agreement accounted for as a collateralized borrowing is a repo that does not qualify for sale accounting under Topic 860. The payable under a repurchase agreement accounted for as a collateralized borrowing refers to the amount of the seller-borrower's obligation recognized for the future repurchase of the securities from the buyer-lender. In certain industries, the terminology is reversed; that is, entities in those industries refer to this type of agreement as a reverse repo.") and amounts recognized as receivables under [reverse repurchase agreements accounted for as collateralized borrowings](https://asc.understandingaccounting.org/glossary/r/#reverse-repurchase-agreement-accounted-for-as-a-collateralized-borrowing "A reverse repurchase agreement accounted for as a collateralized borrowing (also known as a reverse repo) refers to a transaction that is accounted for as a collateralized lending in which a buyer-lender buys securities with an agreement to resell them to the seller-borrower at a stated price plus interest at a specified date or in specified circumstances. The receivable under a reverse repurchase agreement accounted for as a collateralized borrowing refers to the amount due from the seller-borrower for the repurchase of the securities from the buyer-lender. In certain industries, the terminology is reversed; that is, entities in those industries refer to this type of agreement as a repo.") if all of the following conditions are met: 1. a The repurchase and reverse repurchase agreements are executed with the same counterparty. 2. b The repurchase and reverse repurchase agreements have the same explicit settlement date specified at the inception of the agreement. 3. c The repurchase and reverse repurchase agreements are executed in accordance with a master netting arrangement. 4. d The securities underlying the repurchase and reverse repurchase agreements exist in book entry form and can be transferred only by means of entries in the records of the transfer system operator or [securities custodian](https://asc.understandingaccounting.org/glossary/s/#securities-custodian "The securities custodian for a securities transfer system may be the bank or financial institution that executes securities transfers over the securities transfer system, and book entry securities exist only in electronic form on the records of the transfer system operator for each entity that has a security account with the transfer system operator."). Book entry securities meeting the criterion in this paragraph exist only as items in accounting records maintained by a transfer system operator. This requirement does not preclude offsetting of securities held in book entry form solely because other securities of the same issue exist in other forms. 5. e The repurchase and reverse repurchase agreements will be settled on a securities transfer system that operates in the manner described in paragraphs [210-20-45-14 through 45-17](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-14) , and the entity must have associated banking arrangements in place as described in those paragraphs. Cash settlements for securities transferred shall be made under established banking arrangements that provide that the entity will need available cash on deposit only for any net amounts that are due at the end of the business day. It must be probable that the associated banking arrangements will provide sufficient [daylight overdraft](https://asc.understandingaccounting.org/glossary/d/#daylight-overdraft "Daylight overdraft or other intraday credit refers to the accommodation in the banking arrangements that allows transactions to be completed even if there is insufficient cash on deposit during the day provided there is sufficient cash to cover the net cash requirement at the end of the day. That accommodation may be through a credit facility, including a credit facility for which a fee is charged, or from a deposit of collateral.") or other intraday credit at the settlement date for each of the parties. The term _probable_ is used in this Subtopic consistent with its use in paragraph [450-20-25-1](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-1) to mean that a transaction or event is likely to occur. 6. f The entity intends to use the same account at the clearing bank or other financial institution at the settlement date in transacting both the cash inflows resulting from the settlement of the reverse repurchase agreement and the cash outflows in settlement of the offsetting repurchase agreement. ##### [210-20-45-12](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:460dec4690faf65d21e4057a0a83daafb95a4b8c559fb502de80d79375cee785 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity's choice to offset or not shall be applied consistently. Net receivables resulting from the application of this Subtopic shall not be offset against net payables resulting from the application of this Subtopic in the statement of financial position. ##### [210-20-45-13](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:cd0a6bd30c512615102f18a45100806a0bd0b0e66ea766be16855e2ae05e0ddb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [210-20-45-11](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-11) does not apply to amounts recognized for other types of repurchase and reverse repurchase agreements executed under a master netting arrangement; however, those amounts could otherwise meet the conditions of paragraph [210-20-45-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-1) for a right of setoff. Therefore, unless all conditions in that paragraph are met, the amount recognized under a repurchase agreement that does not settle in accordance with all the conditions of paragraphs [210-20-45-11 through 45-17](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-11) may not be offset against the amount recognized under a reverse repurchase agreement merely because the agreements are executed with the same counterparty under a master netting arrangement. The gross unconditional receivables and payables recognized in the statement of financial position related to those types of repurchase and reverse repurchase agreements provide useful information about the timing and amount of future cash flows that would be lost if those amounts were offset. #### Securities Transfer System ##### [210-20-45-14](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:482d7f2f5bec4002797fd72e554697e150ae3a5dc1dd05388764a4fb807ad87f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance describes a securities transfer system for repurchase agreements and reverse repurchase agreements (and associated banking arrangements) that meets the requirements of paragraph [210-20-45-11](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-11). In a securities transfer system for repurchase agreements and reverse repurchase agreements that meets the requirements of that paragraph, cash transfers are initiated by notification from the owner of record of the securities to its securities custodian to transfer those securities to the counterparty to the agreement. The securities custodian for a securities transfer system may be the bank or financial institution that executes securities transfers over the securities transfer system, and book entry securities exist only in electronic form on the records of the transfer system operator for each entity that has a security account with the transfer system operator. Book entry securities exist only as items of account on the controlling records of the transfer system operator. Banks or other financial institutions may maintain subsidiary records of book entry securities. Book entry securities may be transferred on the subsidiary records of a bank or financial institution but, for entities that have a security account with the transfer system operator, may be transferred from the account of such an entity only through the transfer system operator. ##### [210-20-45-15](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:6fb691a9356f13e56bb4f0e7e4ad49260c8835bb4a63da2d6ad4d47898ec948e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under associated banking arrangements, each party to a same-day settlement of both a repurchase agreement and a reverse repurchase agreement would be obligated to pay a gross amount of cash for the securities transferred from its counterparty but would be able to reduce that gross obligation by notifying its securities custodian to transfer other securities to that counterparty the same day. ##### [210-20-45-16](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:6b65860e5d253a52ba409d3c7271fce36d08a06202578d8093460da6ea139a5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Thus, each party is responsible for maintaining available cash on deposit only for the amount of any net payable unless it fails to instruct its securities custodian to transfer securities to its counterparty. Failure by either party to instruct its securities custodian to transfer securities owned of record would result in that party's failing to receive cash from the counterparty and, thereby, would require that party to have available cash on deposit for the gross payable due for securities transferred to it. The failure also shall be an event of default under the master netting arrangement required by paragraph [210-20-45-11](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-11). The event of default, in turn, shall entitle the other party to terminate the arrangement and demand the immediate net settlement of all contracts. ##### [210-20-45-17](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:16.403Z to 2026-09-09T22:59:16.403Z Record version: sha256:7bdc35af503d73f46ffc03ed92e89fb33beafb12c4255c364f0dbc1b18e4c5b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If both parties transfer the appropriate securities in settlement of the repurchase and reverse repurchase agreements, the party with a net receivable will not need any cash to facilitate the settlement, while the party with a net payable will need only to have available the required net amount due at the end of the business day. Source downloaded (UTC): 2026-09-09T22:59:19.272Z to 2026-09-09T22:59:19.272Z Record version: sha256:dc5415a4bd3a8ce28aae3784b76989e02c2f09ac4fa76b98125ba13e333a6b86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/20/#50-disclosure) SEC content: no #### Offsetting of Derivatives, Repurchase Agreements, and Securities Lending Transactions ##### [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) Pending content: yes Source downloaded (UTC): 2026-09-09T22:59:19.272Z to 2026-09-09T22:59:19.272Z Record version: sha256:46467fd1d76c4fdd5689d6d132b8af952267426dbd10e9cc172a26efa2ee88f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirements in paragraphs [210-20-50-2 through 50-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-2) apply to both of the following: 1. a [Subparagraph superseded by Accounting Standards Update No. 2013-01](https://asc.understandingaccounting.org/updates/asu-2013-01/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2013-01](https://asc.understandingaccounting.org/updates/asu-2013-01/). 3. c Recognized [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") accounted for in accordance with Topic 815, including bifurcated embedded derivatives, [repurchase agreements accounted for as collateralized borrowings](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement-accounted-for-as-a-collateralized-borrowing "A repurchase agreement (repo) refers to a transaction in which a seller-borrower of securities sells those securities to a buyer-lender with an agreement to repurchase them at a stated price plus interest at a specified date or in specified circumstances. A repurchase agreement accounted for as a collateralized borrowing is a repo that does not qualify for sale accounting under Topic 860. The payable under a repurchase agreement accounted for as a collateralized borrowing refers to the amount of the seller-borrower's obligation recognized for the future repurchase of the securities from the buyer-lender. In certain industries, the terminology is reversed; that is, entities in those industries refer to this type of agreement as a reverse repo.") and reverse repurchase agreements, and securities borrowing and securities lending transactions that are offset in accordance with either Section 210-20-45 or Section 815-10-45 4. d Recognized derivative instruments accounted for in accordance with Topic 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. 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)The disclosure requirements in paragraphs [210-20-50-2 through 50-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-2) apply to both of the following in interim and annual reporting periods: 1. a [Subparagraph superseded by Accounting Standards Update No. 2013-01](https://asc.understandingaccounting.org/updates/asu-2013-01/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2013-01](https://asc.understandingaccounting.org/updates/asu-2013-01/). 3. c Recognized [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") accounted for in accordance with Topic 815, including bifurcated embedded derivatives, [repurchase agreements accounted for as collateralized borrowings](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement-accounted-for-as-a-collateralized-borrowing "A repurchase agreement (repo) refers to a transaction in which a seller-borrower of securities sells those securities to a buyer-lender with an agreement to repurchase them at a stated price plus interest at a specified date or in specified circumstances. A repurchase agreement accounted for as a collateralized borrowing is a repo that does not qualify for sale accounting under Topic 860. The payable under a repurchase agreement accounted for as a collateralized borrowing refers to the amount of the seller-borrower's obligation recognized for the future repurchase of the securities from the buyer-lender. In certain industries, the terminology is reversed; that is, entities in those industries refer to this type of agreement as a reverse repo.") and reverse repurchase agreements, and securities borrowing and securities lending transactions that are offset in accordance with either Section 210-20-45 or Section 815-10-45 4. d Recognized derivative instruments accounted for in accordance with Topic 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. ##### [210-20-50-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T22:59:19.272Z to 2026-09-09T22:59:19.272Z Record version: sha256:ec496821d0561ee9ba0c7ed5f56b530df1503c1d680ac3788031c530203d309a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose information to enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities within the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1). This includes the effect or potential effect of [rights of setoff](https://asc.understandingaccounting.org/glossary/r/#right-of-setoff "A right of setoff is a debtor's legal right, by contract or otherwise, to discharge all or a portion of the debt owed to another party by applying against the debt an amount that the other party owes to the debtor.") associated with an entity's recognized assets and recognized liabilities that are in the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1). 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)For interim and annual reporting periods, an entity shall disclose information to enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities within the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1). This includes the effect or potential effect of [rights of setoff](https://asc.understandingaccounting.org/glossary/r/#right-of-setoff "A right of setoff is a debtor's legal right, by contract or otherwise, to discharge all or a portion of the debt owed to another party by applying against the debt an amount that the other party owes to the debtor.") associated with an entity's recognized assets and recognized liabilities that are in the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1). ##### [210-20-50-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T22:59:19.272Z to 2026-09-09T22:59:19.272Z Record version: sha256:09871367a3d0877e0590a13d4200f8ec7aee3b3b42e113e5fa98d2f5840aa7cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To meet the objective in paragraph [210-20-50-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-2), an entity shall disclose at the end of the reporting period the following quantitative information separately for assets and liabilities that are within the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1): 1. a The gross amounts of those recognized assets and those recognized liabilities 2. b The amounts offset in accordance with the guidance in Sections 210-20-45 and 815-10-45 to determine the net amounts presented in the statement of financial position 3. c The net amounts presented in the statement of financial position 4. d The amounts subject to an enforceable master netting arrangement or similar agreement not otherwise included in (b): 1. 1 The amounts related to recognized financial instruments and other derivative instruments that either: 1. i Management makes an accounting policy election not to offset. 2. ii Do not meet some or all of the guidance in either Section 210-20-45 or Section 815-10-45. 2. 2 The amounts related to financial collateral (including cash collateral). 5. e The net amount after deducting the amounts in (d) from the amounts in (c). 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)To meet the objective in paragraph [210-20-50-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-2), an entity shall disclose at the end of interim and annual reporting periods the following quantitative information separately for assets and liabilities that are within the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1): 1. a The gross amounts of those recognized assets and those recognized liabilities 2. b The amounts offset in accordance with the guidance in Sections 210-20-45 and 815-10-45 to determine the net amounts presented in the statement of financial position 3. c The net amounts presented in the statement of financial position 4. d The amounts subject to an enforceable master netting arrangement or similar agreement not otherwise included in (b): 1. 1 The amounts related to recognized financial instruments and other derivative instruments that either: 1. i Management makes an accounting policy election not to offset. 2. ii Do not meet some or all of the guidance in either Section 210-20-45 or Section 815-10-45. 2. 2 The amounts related to financial collateral (including cash collateral). 5. e The net amount after deducting the amounts in (d) from the amounts in (c). ##### [210-20-50-4](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-4) Pending content: yes Source downloaded (UTC): 2026-09-09T22:59:19.272Z to 2026-09-09T22:59:19.272Z Record version: sha256:3531349a779a35d6697c290bc7f919dd1e0bcb6e0f86017cf86cf8c8c72e305b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The information required by paragraph [210-20-50-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) shall be presented in a tabular format, separately for assets and liabilities, unless another format is more appropriate. The total amount disclosed in accordance with paragraph [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) for an instrument shall not exceed the amount disclosed in accordance with paragraph [210-20-50-3(c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) for that instrument. 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)For interim and annual reporting periods, the information required by paragraph [210-20-50-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) shall be presented in a tabular format, separately for assets and liabilities, unless another format is more appropriate. The total amount disclosed in accordance with paragraph [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) for an instrument shall not exceed the amount disclosed in accordance with paragraph [210-20-50-3(c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) for that instrument. ##### [210-20-50-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-5) Pending content: yes Source downloaded (UTC): 2026-09-09T22:59:19.272Z to 2026-09-09T22:59:19.272Z Record version: sha256:55e1240608fda7ef5684ffce237f4a083389e2d9e21af23cfece7afd0a4f32e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall provide a description of the rights of setoff associated with an entity's recognized assets and recognized liabilities subject to an enforceable master netting arrangement or similar agreement disclosed in accordance with paragraph [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3), including the nature of those rights. 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)For interim and annual reporting periods, an entity shall provide a description of the rights of setoff associated with an entity's recognized assets and recognized liabilities subject to an enforceable master netting arrangement or similar agreement disclosed in accordance with paragraph [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3), including the nature of those rights. ##### [210-20-50-6](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:19.272Z to 2026-09-09T22:59:19.272Z Record version: sha256:6682d184814168e7629cf2ddb352b50e39f120d79ebfa4ad74164a0c0d6046d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the information required by paragraphs [210-20-50-1 through 50-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) is disclosed in more than a single note to the financial statements, an entity shall cross-reference between those notes. Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:4f68777ea67e3c63a3f969427f66b5c4c3e044ba217340fdc2cc76af21099198 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/210/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [210-20-55-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:73a35e3bf703aaaeeac02ba2bf864d640e97937c7276738a50730d748143bf07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides additional guidance and illustrations that address the application of the disclosures for derivative instruments and other financial instruments. ##### [210-20-55-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:f862fbfba0284f551346a928b18ac508c155ef4d4ec13c43927984142f5c2746 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 210-20-55-2 through 55-5 superseded by Accounting Standards Update No. 2013-01](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-2). ##### [210-20-55-6](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:cc60b0b55a4bcd919ff0333f3a542d5f168d5057360fbb9c584eb82117bab42c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Instruments disclosed in accordance with paragraph [210-20-50-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) may be subject to different measurement attributes (for example, a payable related to a repurchase agreement may be measured at amortized cost, while a derivative will be measured at fair value). An entity should include instruments at their recognized amounts and describe any resulting measurement differences in the related disclosures. ##### [210-20-55-7](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:3030665f74fb492263cf2612d587e162c93b3af2a23a40ac27709788b995ac49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures required by paragraph [210-20-50-3(a)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) relate solely to recognized assets and liabilities within the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1). ##### [210-20-55-8](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:7737ef908157d6733e11fb6642d47d1b276717b3c7866779a74d9bed74924780 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [210-20-50-3(b)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) requires that entities disclose the amounts offset in accordance with Sections 210-20-45 and 815-10-45 to determine the net amounts presented in the statement of financial position. The amounts of both the recognized assets and the recognized liabilities subject to setoff under the same arrangement will be disclosed in the respective tables; however, the amounts included in the tables are limited to the amount that is subject to setoff. For example, an entity may have a recognized derivative asset and recognized derivative liability that meet the offsetting guidance in Section 815-10-45. If the gross amount of the derivative asset is larger than the gross amount of the derivative liability, the asset disclosure table will include the entire amount of the derivative asset and the entire amount of the derivative liability. The liability disclosures table, however, will include the entire amount of the derivative liability, but it will only include the amount of the derivative asset equal to the amount of the derivative liability. ##### [210-20-55-9](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:7cc3e01134c8b39ffa3810f778c95623a24e238ca0f9e11e4a7e5ada2593f03b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity has instruments that meet the scope of the disclosures but that do not meet the offsetting guidance in either Section 210-20-45 or Section 815-10-45 or that management does not elect to offset, the amounts required to be disclosed by paragraph [210-20-50-3(c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) would equal the amounts required to be disclosed by paragraph [210-20-50-3(a)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3). ##### [210-20-55-10](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:4201117c5d8e17074f536c681d6683355724b3682b41322e11806084104cd1d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts required by paragraph [210-20-50-3(c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) must be reconciled to the individual line item amount(s) presented in the statement of financial position. For example, if an entity determines that the aggregation or disaggregation of individual financial statement line items provides more relevant information, it must reconcile the aggregated or disaggregated amounts disclosed in accordance with paragraph 210-20-50-3(c) to the statement of financial position. ##### [210-20-55-10A](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-10A) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:2a735ed28bbbe49bfe689d3f79bb8de2d6a33800cdf235ccd2d8c25bf15b189b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity also may elect to include all recognized derivatives accounted for in accordance with Topic 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions in the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) to reconcile to the individual line-item amount(s) presented in the statement of financial position. For instruments not subject to an enforceable master netting arrangement or similar agreement, the amounts disclosed in accordance with paragraph [210-20-50-3(a)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) would equal the amounts disclosed for those instruments in accordance with both paragraph [210-20-50-3(c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) and paragraph [210-20-50-3(e)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3). ##### [210-20-55-11](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:4753bbae6b2d99208529f385ab03281d19b5b3139de481bc310b0eb0ba45fb31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) requires that entities disclose other amounts for instruments that are within the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) but are not included in paragraph [210-20-50-3(b)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3). These amounts include those that meet the guidance in either Section 210-20-45 or Section 815-10-45 to qualify for offsetting but management elects not to offset. ##### [210-20-55-12](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:463c56ea8fc7016db2374f95f05d6f53f4e39bb794cce0b8396f670837a8b5b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity should also disclose the fair value amounts related to cash or financial instrument collateral received or pledged (see paragraph [210-20-50-3(d)(2)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3)). ##### [210-20-55-13](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:c9137742142053a26bc28a9d0dce9ae8a2ed2e6a1faeb96dded4b1526af1d29a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When disclosing amounts in accordance with paragraph [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3), an entity must take into account the effect of overcollateralization by instrument. To do so, an entity must first deduct the amounts disclosed in accordance with paragraph [210-20-50-3(d)(1)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) from the amount disclosed in accordance with paragraph [210-20-50-3(c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3). An entity should then limit the amounts disclosed in accordance with paragraph [210-20-50-3(d)(2)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) to the remaining amount for the related instrument. However, if rights to collateral can be enforced across financial instruments, such rights may be included in the disclosure provided in accordance with [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3). ##### [210-20-55-14](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:c4730cad7f45160a39c9c64ac1efe26ffb9407fe40dd9b459333c02f2b970d80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity should describe the types of rights of setoff and similar agreements disclosed in accordance with paragraph [210-20-50-3(d)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3), including the nature of those rights. For example, for a conditional right of setoff, an entity should describe the related condition(s). For any financial collateral received or pledged, an entity should describe the terms of the collateral agreement (for example, when the collateral is restricted). ##### [210-20-55-15](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:f7e75704d135bfcb64bd0e18f28c4c8f9a0635b9f0ceca5eed772c2cf87fb5a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures required by paragraph [210-20-50-3(a) through (e)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) may be grouped by type of instrument or transaction (for example, derivatives, repurchase and reverse agreements, and securities borrowing and lending agreements). ##### [210-20-55-16](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:f74fe4e917448d2698e249fa865288fb0daf86edf712a0e4312cf36e37df4b72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Alternatively, an entity may group the information required by paragraph [210-20-50-3(a) through (c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) by type of instrument and paragraph [210-20-50-3(c) through (e)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) by counterparty. If an entity provides the required information by counterparty, the entity is not required to identify the counterparties by name. However, designation of the counterparties (Counterparty A, Counterparty B, Counterparty C, and so forth) should remain consistent from year to year to maintain comparability, and qualitative disclosures should be considered to give further information about the types of counterparties. When disclosure of the amounts in paragraph 210-20-50-3(c) through (e) is provided by counterparty, the amounts related to individually significant counterparties with respect to total counterparty amounts should be separately disclosed, and the remaining individually insignificant counterparties should be aggregated into one line item. ##### [210-20-55-17](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:a9f230870001ed1e56d6b3b3848878a9fac3d65df8ec0f30066a5e0adb6fcd7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures required by paragraphs [210-20-50-3 through 50-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) are minimum requirements, and to meet the objective in paragraph [210-20-50-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-2) an entity may need to supplement the disclosures with additional (qualitative) disclosures depending on the terms of the enforceable master netting arrangements and related agreements, including the nature of the rights of setoff and their effect or potential effect on the entity's financial position. ##### [210-20-55-18](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:ad4937d32f8e6279fac86cd93364f76f3b9dec408df391617c2daecf6eb85ac7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity should present the disclosures in a manner that clearly explains to users of its financial statements the nature of rights of setoff and related arrangements and their effect on the entity's assets and liabilities in the scope of paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) and its financial position. An entity should determine how much detail it must provide to satisfy the disclosure requirements. The entity must strike a balance between obscuring important information because of excessive aggregation and obscuring important information because of excessive detail that may not help users of financial statements to understand the entity's financial position. For example, an entity should not disclose information that is so aggregated that it obscures important differences between the different types of rights of setoff or related arrangements. ##### [210-20-55-18A](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-18A) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:84d9d0f60461c832ced16602393f546816b40a8a4073b2b6563df7adc3776b2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Cash](https://asc.understandingaccounting.org/glossary/c/#cash "Consistent with common usage, cash includes not only currency on hand but demand deposits with banks or other financial institutions. Cash also includes other kinds of accounts that have the general characteristics of demand deposits in that the customer may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. All charges and credits to those accounts are cash receipts or payments to both the entity owning the account and the bank holding it. For example, a bank's granting of a loan by crediting the proceeds to a customer's demand deposit account is a cash payment by the bank and a cash receipt of the customer when the entry is made.") on deposit at a financial institution shall be considered by the depositor as cash rather than as an amount owed to the depositor. #### Illustrations ##### [210-20-55-19](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:b4af92ad7baf7c8627f7ce64670ae4fc597913a52581ded45c35a7c3925cb3c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Examples illustrate ways to meet the quantitative disclosure requirements in paragraphs [210-20-50-1 through 50-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) by type of financial instrument or other derivative instrument. ##### [210-20-55-20](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:3725ab8356b37257e6ce7e49d672f2402ec739ffe89555b00a52256445436f1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Example, the reporting entity has entered into transactions subject to an enforceable master netting arrangement or other similar agreement with the following counterparties. The reporting entity has the following recognized financial assets and financial liabilities resulting from those transactions that meet the scope of the disclosure requirements in paragraph [210-20-50-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1). This Example has the following assumptions. 1. a Counterparty A: 1. 1 The reporting entity has a derivative asset (fair value of $100 million) and a derivative liability (fair value of $80 million) with Counterparty A. Assume that the entity qualifies for and makes an accounting policy election to offset in accordance with Section 815-10-45. Cash collateral also has been received from Counterparty A for a portion of the net derivative asset ($10 million). The derivative liability and the cash collateral received are set off against the derivative asset in the statement of financial position, resulting in the presentation of a net derivative asset of $10 million. 2. b Counterparty B: 1. 1 The reporting entity had entered into a sale and repurchase agreement with Counterparty B that is accounted for as a collateralized borrowing. The carrying value of the financial asset (bonds) used as collateral and held by the reporting entity for the transaction is $79 million, and their fair value is $85 million. The carrying value of the collateralized borrowing (repo payable) is $80 million. 2. 2 The reporting entity also has entered into a reverse sale and repurchase agreement with Counterparty B that is accounted for as a collateralized lending. The fair value of the asset (bonds) received as collateral (and not recognized in the statement of financial position) is $105 million. The carrying value of the secured lending (reverse repo receivable) is $90 million. 3. 3 Assume that the transactions are not offset. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-1D6F015A-6EA5-4AF3-9C90-BBBCC902EC76-low.gif) Application of Paragraph 210-20-50-3(a)-(e) Offsetting of Financial Assets and Derivative Assets $ million "As of December 31, 20XX " (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Description Derivatives $100 $(90) $10 $ - $ - $10 "Reverse repurchase, securities borrowing, and similar arrangements " 90 - 90 (90) - - Total $190 $(90) $100 $(90) $ - $10 - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-E5CB3ACD-3777-467A-ADC1-7A853C28F271-low.gif) Offsetting of Financial Liabilities and Derivative Liabilities $ million "As of December 31, 20XX " (i) (ii) (iii) = (i) - (ii) (iv) (v) = (iii) - (iv) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position "Net Amounts of Liabilities Presented in the Statement of Financial Position" Financial Instruments Cash Collateral Pledged Net Amount Description Derivatives $80 $(80) $ - $ - $ - $- "Repurchase, securities lending, and similar arrangements" 80 - 80 (80) - - Total $160 $(80) $80 $(80) $ - $- ##### [210-20-55-21](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:c17935a8241b83e2fd20bda3abaa488c11e01e7b651cc2e040d47355058a63ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates how an entity might provide the quantitative disclosure requirements in paragraph [210-20-50-3(a) through (c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) by type of instrument and the information required in paragraph [210-20-50-3(c) through (e)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) by counterparty. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-D04B0301-07CC-4482-BC15-4063B91274CD-low.gif) Application of Paragraph 210-20-50-3(a)-(c) by Instrument and Paragraph 210-20-50-3(c)-(e) by Counterparty Offsetting of Financial Liabilities and Derivative Liabilities $ million "As of December 31, 20XX" (i) (ii) (iii) = (i) - (ii) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Description Derivatives $80 $(80) $ - "Repurchase, securities lending, and similar arrangements" 80 - 80 Total $160 $(80) $80 "Financial Liabilities, Derivative Liabilities, and Collateral Pledged by Counterparty " $ million "As of December 31, 20XX" (iii) (iv) (v) = (iii) - (iv) Gross Amounts Not Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Financial Instruments "Cash Collateral Pledged" Net Amount Counterparty A $ - $ - $ - $ - Counterparty B 80 (80) - - Other Total $80 $(80) $ - $ - - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C9025F70-4A96-4741-8746-E62AAA4EA762-low.gif) Application of Paragraph 210-20-50-3(a)-(c) by Instrument and Paragraph 210-20-50-3(c)-(e) by Counterparty Offsetting of Financial Assets and Derivative Assets $ million "As of December 31, 20XX" (i) (ii) (iii) = (i) - (ii) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Description Derivatives $100 $(90) $10 "Reverse repurchase, securities borrowing, and similar arrangements" 90 - 90 Total $190 $(90) $100 "Financial Assets, Derivative Assets, and Collateral Held by Counterparty " $ million "As of December 31, 20XX" (iii) (iv) (v) = (iii) - (iv) Gross Amounts Not Offset in the Statement of Financial Position Net Amount of Assets in the Statement of Financial Position Financial Instruments "Cash Collateral Received" Net Amount Counterparty A $10 $ - $ - $10 Counterparty B 90 (90) - - Other Total $100 $(90) $ - $10 ##### [210-20-55-22](https://asc.understandingaccounting.org/asc/210/20/#210-20-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:22.298Z to 2026-09-09T22:59:22.298Z Record version: sha256:3daa210f0d29d184c4b967723f33ad90f7c2e33aa6a487635bc0e1bb4e12b70b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates how a sophisticated entity that engages in significant derivative activity might provide the quantitative disclosure requirements in paragraph [210-20-50-3(a) through (c)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) by type of instrument and paragraph [210-20-50-3(c) through (e)](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-3) by type of counterparty. In this Example, the entity further disaggregates the derivative line item by type of contract as discussed in paragraph [815-10-50-4D](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4D), with further disaggregation based on how the derivative is transacted. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-8FCDA683-547D-46C6-AC0A-2A31731796DE-low.gif) Application of Paragraph 210-20-50-3(a)-(c) by Instrument and Paragraph 210-20-50-3(c)-(e) by Counterparty Offsetting of Financial Assets and Derivative Assets $ million "As of December 31, 20XX" (i) (ii) (iii) = (i) - (ii) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Description Derivatives Interest rate contracts Over the counter " $XX,XXX " " $XX,XXX " " $XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Foreign exchange contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Equity contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Commodity contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Credit contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Other contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " "Total derivatives, subject to a master netting arrangement or similar arrangement" " XX,XXX " " XX,XXX " " XX,XXX " "Total derivatives, not subject to a master netting arrangement or similar arrangement" " XX,XXX " " XX,XXX " " XX,XXX " Total derivatives " XX,XXX " " XX,XXX " " XX,XXX " "Reverse repurchase, securities borrowing, and similar arrangements " " XX,XXX " " XX,XXX " " XX,XXX " Other financial instruments " XX,XXX " " XX,XXX " " XX,XXX " Total " $XX,XXX " " $XX,XXX " " $XX,XXX " - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-3E6D87D7-C983-4469-B9A4-9A5A6B62AC6B-low.gif) "Financial Assets, Derivative Assets, and Collateral Held by Counterparty " $ million "As of December 31, 20XX" (iii) (iv) (v) = (iii) - (iv) Gross Amounts Not Offset in the Statement of Financial Position Net Amount of Assets in the Statement of Financial Position "Financial Instruments" Cash Collateral Received Net Amount Counterparty A "$XX,XXX" "$XX,XXX" "$XX,XXX" "$XX,XXX" Counterparty B "XX,XXX" "XX,XXX" "XX,XXX" "XX,XXX" Other "XX,XXX" "XX,XXX" "XX,XXX" "XX,XXX" Total "$XX,XXX" "$XX,XXX" "$XX,XXX" "$XX,XXX" - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-1A8B1587-24C2-435A-AC26-4F3EBAA3FB05-low.gif) Application of Paragraph 210-20-50-3(a)-(c) by Instrument and Paragraph 210-20-50-3(c)-(e) by Counterparty Offsetting of Financial Liabilities and Derivative Liabilities $ million "As of December 31, 20XX" (i) (ii) (iii) = (i) - (ii) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities Presented in the Statement of Financial Position Description Derivatives Interest rate contracts Over the counter " $XX,XXX " " $XX,XXX " " $XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Foreign exchange contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Equity contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Commodity contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Credit contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " Other contracts Over the counter " XX,XXX " " XX,XXX " " XX,XXX " Exchange traded " XX,XXX " " XX,XXX " " XX,XXX " Exchange cleared " XX,XXX " " XX,XXX " " XX,XXX " "Total derivatives, subject to a master netting arrangement or similar arrangement" " XX,XXX " " XX,XXX " " XX,XXX " "Total derivatives, not subject to a master netting arrangement or similar arrangement" " XX,XXX " " XX,XXX " " XX,XXX " Total derivatives " XX,XXX " " XX,XXX " " XX,XXX " "Reverse repurchase, securities borrowing, and similar arrangements " " XX,XXX " " XX,XXX " " XX,XXX " Total " $XX,XXX " " $XX,XXX " " $XX,XXX " - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-312F69E7-0B4F-4BBF-9480-C6F2C1050A80-low.gif) "Financial Liabilities, Derivative Liabilities, and Collateral Held by Counterparty " $ million "As of December 31, 20XX" (iii) (iv) (v) = (iii) - (iv) Gross Amounts Not Offset in the Statement of Financial Position Net Amount of Liabilities in the Statement of Financial Position "Financial Instruments" Cash Collateral Pledged Net Amount Counterparty A " $XX,XXX " " $XX,XXX " " $XX,XXX " " $XX,XXX " Counterparty B " XX,XXX " " XX,XXX " " XX,XXX " " XX,XXX " Other " XX,XXX " " XX,XXX " " XX,XXX " " XX,XXX " Total " $XX,XXX " " $XX,XXX " " $XX,XXX " " $XX,XXX " Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:2f3b084ee95466f457b40e062429b8bb6b610e9dfde7ed5fa9be53857c7bec33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/210/20/#60-relationships) SEC content: no #### Compensation—Retirement Benefits ##### [210-20-60-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:d82e5048f455f57f897e3449dc6ba247c91303687db1e0d30966e39158c0d2ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting for pension plan assets and liabilities, see Subtopic 715-30. ##### [210-20-60-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:173e23751566ff7c482c0199cdc992242fd05e0d99e9d4c51ff6ac3e3315cec2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting for plan assets and liabilities, see Subtopic 715-60. #### Income Taxes ##### [210-20-60-3](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:e5b3c0f9bfa4ab96900f76554d31b3fdb620dcb4592100630cee5512ae652acd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on amounts reported for net tax assets or liabilities, see Subtopic 740-10. #### Derivatives and Hedging ##### [210-20-60-3A](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-3A) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:938692d387321f47cb1eacd93768af2ccde1e8490bdc2e5157f13b63782cf984 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on derivative instruments with the right to reclaim cash collateral or the obligation to return cash collateral, see paragraphs [815-10-45-1 through 45-7](https://asc.understandingaccounting.org/asc/815/10/#815-10-45-1) . #### Leases ##### [210-20-60-4](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:9b09d5a13e43049689d2c49672ff72a6ca212d0ec4e2a0b68ccc4e40cb2f0c0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on [leveraged leases](https://asc.understandingaccounting.org/glossary/l/#leveraged-lease "From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date."), see Section 842-50-35. #### Contractors—Federal Government ##### [210-20-60-5](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:090eba40f092c97f303e3a09b16b6bea0a354c5370f7143c28b586525821a566 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on advances received on construction contracts, see Subtopic 910-405. #### Financial Services—Brokers and Dealers ##### [210-20-60-6](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:07d7fdb94d95c25fca81e32c03c2475340ad4891206414304fc09b9ba2ff229b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on trade date accounting for trading portfolio positions, see Subtopic 940-320. #### Financial Services—Depository and Lending ##### [210-20-60-7](https://asc.understandingaccounting.org/asc/210/20/#210-20-60-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:25.011Z to 2026-09-09T22:59:25.011Z Record version: sha256:08562c30734102d2305c4b6a0241029342e3c0ee92124da666ba42bd01536461 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on reciprocal balances with other banks, see paragraph [942-210-45-3A](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-3A). Source downloaded (UTC): 2026-09-09T22:59:28.992Z to 2026-09-09T22:59:28.992Z Record version: sha256:e150d3306f6cebd8708bf13a87b0a2560bb3b5d5a799296f92cfb2caf6f89121 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-20-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/210/20/#65-transition-and-open-effective-date-information) SEC content: no ##### [210-20-65-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:28.992Z to 2026-09-09T22:59:28.992Z Record version: sha256:c84ff78a2b68a10d1747ad3ed4179d18db111353defaf1932f6840c0ba024616 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/02/2014 after the end of the transition period stated in Accounting Standards Update No. 2011-11, _Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities_. ##### [210-20-65-2](https://asc.understandingaccounting.org/asc/210/20/#210-20-65-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:28.992Z to 2026-09-09T22:59:28.992Z Record version: sha256:3be1f054b49878866edf8ac3842c038f7671b80bf76499401afecb701540018d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/02/2014 after the end of the transition period stated in Accounting Standards Update No. 2013-01, _Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities_. Source downloaded (UTC): 2026-09-09T22:59:35.983Z to 2026-09-09T22:59:51.511Z Record version: sha256:1a4f80688d5b73c4afdfe233a1a7fe3f2349e5c2c6193b70da5f194f28ea0df9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-912: Balance Sheet — Contractors—Federal Government ### Machine-generated study aids ```json { "summary": "ASC 210-912 formerly provided balance sheet classification and disclosure guidance for contractors with the federal government (e.g., presentation of receivables, unbilled amounts, and advances/progress payments on government contracts). Every paragraph in the subtopic — Sections 05, 15, 45, and 50 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). The subtopic is now an empty shell with no operative guidance; contract asset and contract liability presentation for government contractors is governed by ASC 606 (and ASC 340-40 for related costs).", "key_points": [ "All content of ASC 210-912 (paragraphs 210-912-05-1, 15-1, 45-1 through 45-8, and 50-1) was superseded by Accounting Standards Update No. 2014-09.", "No recognition, classification, or disclosure requirements remain in this subtopic; citing it as authoritative support is incorrect.", "Balance sheet presentation of amounts arising from federal government contracts is now determined under ASC 606-10-45 (contract assets, contract liabilities, and receivables) rather than industry-specific balance sheet rules.", "Costs to obtain or fulfill a government contract, and their presentation, are addressed by ASC 340-40 following the ASU 2014-09 amendments.", "The retention of the empty subtopic in the Codification reflects the FASB's practice of preserving the section structure while eliminating superseded industry guidance." ], "categories": [ "Presentation", "Industry-specific", "Revenue", "Transition and effective dates" ], "audience_level": "intermediate", "student_note": "Know that this subtopic is entirely dead letter — ASU 2014-09 wiped out the legacy government-contractor balance sheet guidance. The common mistake is citing old industry presentation rules for unbilled receivables or progress payments instead of the ASC 606 contract asset/contract liability model.", "related_topics": [ "606", "340-40", "912-605", "912-210", "605" ], "key_concepts": [ "superseded guidance", "federal government contractors", "balance sheet classification", "contract assets and contract liabilities", "unbilled receivables", "progress payments", "revenue recognition transition" ] } ``` Source downloaded (UTC): 2026-09-09T22:59:35.983Z to 2026-09-09T22:59:35.983Z Record version: sha256:c4b24785aefb327481833a34b1756816cc3691e9b59243fd236dfbe773d3b095 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-912-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/912/#00-status) SEC content: no ##### [210-912-00-1](https://asc.understandingaccounting.org/asc/210/912/#210-912-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:35.983Z to 2026-09-09T22:59:35.983Z Record version: sha256:2ebf4248f99f507511a04e59c753fe4852f87beb8388e61c81da2202d062808c 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
Advance PaymentsSupersededAccounting Standards Update No. 2014-0905/28/2014
Cost-Plus-Fixed-Fee ContractSupersededAccounting Standards Update No. 2014-0905/28/2014
912-210-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
912-210-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
912-210-45-1 through 45-8
SupersededAccounting Standards Update No. 2014-0905/28/2014
912-210-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T22:59:39.809Z to 2026-09-09T22:59:39.809Z Record version: sha256:5d5ebc5d5605e706c787bedaa5a93dc09b60665b0ed4d11c74007f55cb468767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-912-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/912/#05-overview-and-background) SEC content: no ##### [210-912-05-1](https://asc.understandingaccounting.org/asc/210/912/#210-912-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:39.809Z to 2026-09-09T22:59:39.809Z Record version: sha256:a03b3b3e5fe06b180310c14f7a3a2e1067a9d8c003514b9056057a08a89506ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T22:59:43.436Z to 2026-09-09T22:59:43.436Z Record version: sha256:a6a8bad2ae3f5527faef4ba49cc0a169591e59d01accebef19714a23cbbbafff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-912-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/912/#15-scope-and-scope-exceptions) SEC content: no ##### [210-912-15-1](https://asc.understandingaccounting.org/asc/210/912/#210-912-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:43.436Z to 2026-09-09T22:59:43.436Z Record version: sha256:6911e71e572951309f05a4f581437dcbe443409cd4b480a7ed495e50835089c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T22:59:47.247Z to 2026-09-09T22:59:47.247Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-912-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/210/912/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:3cbe6b963c6d21652f618fd788f6f1cd3e4c4d155375a4a778b4f9e7b525cf26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-912-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/912/#45-other-presentation-matters) SEC content: no ##### [210-912-45-1](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:85d437241db26dd439d0d40a0b1aa24eec29ae0d0f5cb554f206e01da7483e61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [210-912-45-2](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:c1af802adf92fddb86f8f411c588774d953fb731f078cb03261e76f72bb2d1f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [210-912-45-3](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:64d9c8c4bd4dbec3d418a80d2e4c109c91d8e7e2c4a92bdebbe49e873552125d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [210-912-45-4](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:cd1eecf693af15e3ee7373f9a290d54d908994c490343518a332f6e6d2dbf81f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [210-912-45-5](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:c999effc670baafcd2fe988cdb3777988d7890d925431af51522cf2df5b9e361 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [210-912-45-6](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:f6ae48a4a8bf53437a3f09741ef852efcaab9c0426441eaa2ece7974470747bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [210-912-45-7](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:838cecba8bd85789dccce32b5483cf1eaabec3bd8d151a95c2a9a57318e5eeef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [210-912-45-8](https://asc.understandingaccounting.org/asc/210/912/#210-912-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:49.169Z to 2026-09-09T22:59:49.169Z Record version: sha256:0ea5ed4d37c2ed8903938775b5429c58a30f5b28442998c0dc67a1fb6888b97b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T22:59:51.511Z to 2026-09-09T22:59:51.511Z Record version: sha256:69e00ffb8131754a6c5c1b8c1c604d8757dd439d0894e8a7051ec980a92579e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-912-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/912/#50-disclosure) SEC content: no ##### [210-912-50-1](https://asc.understandingaccounting.org/asc/210/912/#210-912-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:51.511Z to 2026-09-09T22:59:51.511Z Record version: sha256:4a9514cd69976cec81c3c91bf965cfeb57b0d2d2ba7993cc0bf2bc250cf3842a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T22:59:54.936Z to 2026-09-09T23:00:06.175Z Record version: sha256:130429f91211aaf7c5524276f207715b7ba8e8441606feefc38a27d4d4cd973d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-915: Balance Sheet — Development Stage Entities ### Machine-generated study aids ```json { "summary": "ASC 210-915 formerly provided balance sheet presentation guidance for development stage entities (entities devoting substantially all efforts to establishing a new business). Every paragraph in the subtopic — the overview (210-915-05-1), scope (210-915-15-1), and other presentation guidance (210-915-45-1) — was superseded by ASU 2014-10. As a result, there is no remaining incremental balance sheet presentation requirement for development stage entities; such entities follow the same guidance in ASC 210 as any other entity.", "key_points": [ "All content of this subtopic is superseded: 210-915-05-1, 210-915-15-1, and 210-915-45-1 were each superseded by Accounting Standards Update No. 2014-10.", "ASU 2014-10 eliminated the concept of a development stage entity from U.S. GAAP, removing the incremental presentation requirements formerly housed in the 915 subtopics.", "Because the subtopic is empty, a development stage entity presents its balance sheet under the general guidance of ASC 210, with no special labeling or inception-to-date column.", "The superseded status matters for comparative or pre-adoption financial statements; historical filings prepared before ASU 2014-10 may still reflect the former development stage entity presentation." ], "categories": [ "Presentation", "Financial statement presentation", "Transition and effective dates" ], "audience_level": "introductory", "student_note": "Know that \"development stage entity\" is no longer a GAAP reporting category — ASU 2014-10 wiped out the 915 subtopics, including this one. The common mistake is citing the old development stage entity presentation rules (e.g., cumulative amounts since inception) as if they were still authoritative.", "related_topics": [ "210-10", "915", "275", "810" ], "key_concepts": [ "development stage entity", "superseded guidance", "balance sheet presentation", "inception-to-date information", "classified balance sheet" ] } ``` Source downloaded (UTC): 2026-09-09T22:59:54.936Z to 2026-09-09T22:59:54.936Z Record version: sha256:0fd8d045c147fcffe0cfcb5ec4ff0dfa695c681fe9c7184b66ae9e86c8bdd5a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-915-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/915/#00-status) SEC content: no ##### [210-915-00-1](https://asc.understandingaccounting.org/asc/210/915/#210-915-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:54.936Z to 2026-09-09T22:59:54.936Z Record version: sha256:1e6620083e7f0eb78b619c0a64ce3fd5516cee78cdddbc4c39af66cd0e2b9232 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
Development Stage EntitySupersededAccounting Standards Update No. 2014-1006/10/2014
915-210-05-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-210-15-1SupersededAccounting Standards Update No. 2014-1006/10/2014
915-210-45-1SupersededAccounting Standards Update No. 2014-1006/10/2014
Source downloaded (UTC): 2026-09-09T22:59:57.735Z to 2026-09-09T22:59:57.735Z Record version: sha256:0bc6ce7cef241aad7ecc3d059b2ed408ff57dcf096c7a044a0692ded1434f619 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-915-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/915/#05-overview-and-background) SEC content: no ##### [210-915-05-1](https://asc.understandingaccounting.org/asc/210/915/#210-915-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:59:57.735Z to 2026-09-09T22:59:57.735Z Record version: sha256:0e5a98a7d712e375e78655f0f39ccc42fc0fdb309c98ea8ca0b178152bf50038 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). Source downloaded (UTC): 2026-09-09T23:00:00.409Z to 2026-09-09T23:00:00.409Z Record version: sha256:677f55f89def4c9b5e056f25e821cf01df38278e87b7971f9fa4210b7411f722 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-915-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/915/#15-scope-and-scope-exceptions) SEC content: no ##### [210-915-15-1](https://asc.understandingaccounting.org/asc/210/915/#210-915-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:00.409Z to 2026-09-09T23:00:00.409Z Record version: sha256:149400daa94e3054daea16173ae4f61dfb19e26298ce3db5be5bd4fdc887b7d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). Source downloaded (UTC): 2026-09-09T23:00:02.551Z to 2026-09-09T23:00:02.551Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-915-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/210/915/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-09T23:00:06.175Z to 2026-09-09T23:00:06.175Z Record version: sha256:ee7640a815030ddc74df31061cfb620732893a0c76af5f3cf4752dbde8698849 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-915-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/915/#45-other-presentation-matters) SEC content: no ##### [210-915-45-1](https://asc.understandingaccounting.org/asc/210/915/#210-915-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:06.175Z to 2026-09-09T23:00:06.175Z Record version: sha256:103112be36a9abb1f48d149fbbdc0984c2de24688b0794186801ec7c0c6c18c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-10](https://asc.understandingaccounting.org/updates/asu-2014-10/). Source downloaded (UTC): 2026-09-09T23:00:09.218Z to 2026-09-09T23:00:19.125Z Record version: sha256:b8638737afae7d573992ff3e9aa27b3ac34004040ebf75613924cd7febe86cc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-940: Balance Sheet — Financial Services—Brokers and Dealers ### Machine-generated study aids ```json { "summary": "ASC 210-940 addresses how brokers and dealers offset and combine amounts presented in the balance sheet. It contains no independent offsetting rules; it simply directs preparers to the general offsetting guidance in Section 210-20-45 and adopts the scope of the Financial Services—Brokers and Dealers Overall Subtopic (940-10-15).", "key_points": [ "The Subtopic's stated purpose is guidance on the offsetting and combining of amounts in the balance sheet of brokers and dealers (210-940-05-1).", "Its scope is identical to that of the broker-dealer Overall Subtopic, Section 940-10-15 (210-940-15-1).", "For the actual offsetting criteria, the Subtopic cross-references Section 210-20-45 rather than stating separate broker-dealer rules (210-940-45-1).", "Because the guidance is a pointer, a broker-dealer must satisfy the general right-of-setoff conditions in 210-20-45 (and any repo/reverse-repo or derivative exceptions there) to present amounts net." ], "categories": [ "Presentation", "Financial statement presentation", "Industry-specific", "Financial instruments" ], "audience_level": "intermediate", "student_note": "This subtopic is essentially a signpost—students who expect special broker-dealer netting rules here will be disappointed; the substantive conditions for offsetting (including the repurchase agreement and master netting arrangement exceptions) live in 210-20-45.", "related_topics": [ "210-20", "940-10", "940-320", "815-10", "860" ], "key_concepts": [ "offsetting", "right of setoff", "balance sheet presentation", "brokers and dealers", "net presentation", "combining of amounts" ] } ``` Source downloaded (UTC): 2026-09-09T23:00:09.218Z to 2026-09-09T23:00:09.218Z Record version: sha256:5c0f9b2607fbc5b033aaf4c04484258827a68495b56ee2c0acf044ee0e0fabd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-940-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/940/#00-status) SEC content: no ##### [210-940-00-1](https://asc.understandingaccounting.org/asc/210/940/#210-940-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:09.218Z to 2026-09-09T23:00:09.218Z Record version: sha256:40b6686172b912fbe1babf3a5877cdd1edd6d3068a940ed702042b754aa31f81 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
940-210-05-1AddedAccounting Standards Update No. 2018-0907/16/2018
940-210-15-1AddedAccounting Standards Update No. 2018-0907/16/2018
940-210-45-1AddedAccounting Standards Update No. 2018-0907/16/2018
Source downloaded (UTC): 2026-09-09T23:00:13.064Z to 2026-09-09T23:00:13.064Z Record version: sha256:909b1239b269e9902802c96f32bb09d6d199b37a920a0a0e8b1633dd54ad4d02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-940-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/940/#05-overview-and-background) SEC content: no ##### [210-940-05-1](https://asc.understandingaccounting.org/asc/210/940/#210-940-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:13.064Z to 2026-09-09T23:00:13.064Z Record version: sha256:e85bf6408e970c0e873f8d59035b977d4226d87205c3b78f768dfe5b3bacb9c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the offsetting and combining of amounts in the balance sheet of brokers and dealers. Source downloaded (UTC): 2026-09-09T23:00:15.892Z to 2026-09-09T23:00:15.892Z Record version: sha256:95013a520596f560f9b95dec2d792fa13c30fce9e035e8db518eb0939a70a1df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-940-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/940/#15-scope-and-scope-exceptions) SEC content: no ##### [210-940-15-1](https://asc.understandingaccounting.org/asc/210/940/#210-940-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:15.892Z to 2026-09-09T23:00:15.892Z Record version: sha256:f8cd1341854e5f69cd7388ee06c75402fdeac4470dd7f1ec59f46a7b49f9ba1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic; see Section 940-10-15. Source downloaded (UTC): 2026-09-09T23:00:19.125Z to 2026-09-09T23:00:19.125Z Record version: sha256:e2464e7c2739d320942ea42b69a246136e5fd1dee961562b8f319c7424e036ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-940-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/940/#45-other-presentation-matters) SEC content: no ##### [210-940-45-1](https://asc.understandingaccounting.org/asc/210/940/#210-940-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:19.125Z to 2026-09-09T23:00:19.125Z Record version: sha256:2fc9c1416bc6f6e1ba15fbe8c875239826f5955bab3aefd5360829e096dce654 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 210-20-45 for guidance on offsetting. Source downloaded (UTC): 2026-09-09T23:00:23.086Z to 2026-09-09T23:00:53.507Z Record version: sha256:6f2c538fddd470d106abe4901a47757fcf24cf1be76154bf7289198128a87f78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942: Balance Sheet — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "summary": "This Subtopic governs how depository and lending institutions offset and combine amounts on the balance sheet. Its core rules: unearned premiums and unpaid claims on credit life and credit accident and health insurance issued to finance customers are deducted from finance receivables in consolidation (or the net amount presented with adequate note disclosure), while unpaid claims on property and level term life insurance—and credit coverage on receivables owned by unrelated entities—must be presented as liabilities. Reciprocal balances with another financial institution are offset only if they will be offset in the process of collection or payment, and restrictions on cash balances must be disclosed.", "key_points": [ "Unearned premiums and unpaid claims on credit life and credit accident and health policies issued to finance customers are intra-entity in substance and shall be deducted from finance receivables in the consolidated balance sheet (210-942-45-1).", "Alternatively, only net finance receivables may be presented if the notes sufficiently disclose unearned premiums, unpaid claims, and the allowance for losses (210-942-45-1).", "Credit life and accident and health amounts relating to receivables that are assets of unrelated entities shall not be offset and shall be presented as liabilities (210-942-45-1; 210-942-45-2).", "Unpaid claims for property insurance and level term life insurance shall not be offset against related finance receivables because finance companies generally do not receive substantially all proceeds of such claims (210-942-45-2).", "Reciprocal account balances with a financial institution shall be offset if they will be offset in the process of collection or payment; overdrafts are reclassified as liabilities unless other accounts at the same institution are available for offset (210-942-45-3A).", "Material deposits in other institutions shall be presented as a separate amount on the balance sheet (210-942-45-4).", "Restrictions on the use or availability of cash balances—e.g., Federal Reserve Bank or FHLB reserve deposits and formal compensating balance agreements—shall be disclosed in the notes (210-942-50-1)." ], "categories": [ "Presentation", "Industry-specific", "Disclosure", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "The recurring trap is assuming all insurance-related balances can be netted against finance receivables: offsetting is permitted only where the entity effectively receives substantially all the claim proceeds (credit life and credit A&H on its own receivables), not for property or level term life insurance or coverage on receivables held by unrelated parties. Also remember overdrafts on reciprocal accounts flip to liabilities absent other offsettable accounts at the same institution.", "related_topics": [ "210-20", "942-10", "942-405", "944", "230-10" ], "key_concepts": [ "offsetting", "finance receivables", "unearned premiums", "unpaid claims", "credit life insurance", "reciprocal balances", "compensating balances", "restricted cash" ] } ``` Source downloaded (UTC): 2026-09-09T23:00:23.086Z to 2026-09-09T23:00:23.086Z Record version: sha256:6848698af7b30bff4b4a39eda7624dfc7d46a1d3aba08d97dd041230369b9ab3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/942/#00-status) SEC content: no ##### [210-942-00-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:23.086Z to 2026-09-09T23:00:23.086Z Record version: sha256:7f7b0d6e4428dac1f14397f5adb2307d0dfb7fead2325b4de5ea33979d3b98f7 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
942-210-45-3AmendedAccounting Standards Update No. 2018-0907/16/2018
942-210-45-3AAddedMaintenance Update 2017-21 (PDF)12/22/2017
942-210-50-1AddedMaintenance Update 2017-21 (PDF)12/22/2017
Source downloaded (UTC): 2026-09-09T23:00:24.905Z to 2026-09-09T23:00:24.905Z Record version: sha256:6da2c59f52dc8900d732efd581dd71928008623ed16516451e74724e9c18cc13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/942/#05-overview-and-background) SEC content: no ##### [210-942-05-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:24.905Z to 2026-09-09T23:00:24.905Z Record version: sha256:939f233c644802a8860e236a2d22d1b3952b50c3427968f8edc8c97977e64706 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the offsetting and combining of amounts in the balance sheet of a financial institution. Source downloaded (UTC): 2026-09-09T23:00:26.767Z to 2026-09-09T23:00:26.767Z Record version: sha256:65126ef000dd0ad715cd9d668607f98e8b5e213988c6ebcb597d1a0c6a67532d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [210-942-15-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:26.767Z to 2026-09-09T23:00:26.767Z Record version: sha256:fb7f7588fa92964725ef59de089635e13d9e3c6242a40b0539430a3d073a9415 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 942-10-15. Source downloaded (UTC): 2026-09-09T23:00:30.261Z to 2026-09-09T23:00:30.261Z Record version: sha256:a87b4fd077bf111f677d11c9376291ba29a1bfa0cf1c00abb04527a84630085c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/942/#45-other-presentation-matters) SEC content: no #### Offsetting Amounts in the Balance Sheet ##### [210-942-45-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:30.261Z to 2026-09-09T23:00:30.261Z Record version: sha256:99a37cf972ad590aa8392b85e396c766d7da69e923545f2162ef4bae49029b2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unearned premiums and unpaid claims on certain insurance coverage issued to finance customers by a subsidiary may represent intra-entity items because premiums are added to the consumer loan account, which is in turn classified as a receivable until paid, and most or all of the payments on claims are applied to reduce the related finance receivables. Therefore, unearned premiums and unpaid claims on certain credit life and credit accident and health insurance policies issued to finance customers shall be deducted from finance receivables in the consolidated balance sheet. Alternatively, the balance sheet may present only the net finance receivables if the notes to the financial statements contain sufficient disclosure of unearned premiums and unpaid claims and the allowance for losses. Unearned premiums and unpaid claims for credit life and accident and health coverage shall not be applied in consolidation against related finance receivables for which the related receivables are assets of unrelated entities. In those circumstances, such amounts shall be presented as liabilities. ##### [210-942-45-2](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:30.261Z to 2026-09-09T23:00:30.261Z Record version: sha256:1287346599215a3e973a1e4a594c0d693c4c490985d217674c3402f037adda1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the consolidated financial statements, unpaid claims for property insurance and level term life insurance shall not be offset against related finance receivables because finance companies generally do not receive substantially all proceeds of such claims. That prohibition also applies to credit life and accident and health coverage written on policies for which the related receivables are assets of unrelated entities. In those circumstances, such amounts shall be presented as liabilities. ##### [210-942-45-3](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:30.261Z to 2026-09-09T23:00:30.261Z Record version: sha256:40e1aecbedeb5897246429b805ad1890dbebd35343a4ecb1c4011a7c753c59e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 210-20-45 for guidance on offsetting. ##### [210-942-45-3A](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-3A) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:30.261Z to 2026-09-09T23:00:30.261Z Record version: sha256:2f18a9f48233f6c7c481ef936d5b9c439f1b8207df6d78e46b3c7bdb581d2c6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A financial institution that accepts deposits may have balances due from the same financial institution from which it has accepted a deposit, also called reciprocal balances. Reciprocal account balances shall be offset if they will be offset in the process of collection or payment. Overdrafts of such accounts shall be reclassified as liabilities, unless the financial institution has other accounts at the same financial institution against which such overdrafts can be offset. #### Other ##### [210-942-45-4](https://asc.understandingaccounting.org/asc/210/942/#210-942-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:30.261Z to 2026-09-09T23:00:30.261Z Record version: sha256:5065e86992d71ee7fa0de806428a097c6a5ecdbbb19b03d07f082c66a9e96b55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If deposits in other institutions are material, then deposits shall be presented as a separate amount in the balance sheet. Source downloaded (UTC): 2026-09-09T23:00:33.463Z to 2026-09-09T23:00:33.463Z Record version: sha256:8c376322e82c242c7a6be1b43ab2ed4be7f23eb3465a39da6a7c58449dbaf659 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/942/#50-disclosure) SEC content: no #### Cash Restrictions ##### [210-942-50-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:33.463Z to 2026-09-09T23:00:33.463Z Record version: sha256:28bbfa346875b43b45705ca26f0e958ce9bbc2dd293798364f1b0decd8038755 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Restrictions on the use or availability of certain cash balances, such as deposits with a Federal Reserve Bank, Federal Home Loan Bank, or correspondent financial institutions to meet reserve requirements or deposits under formal compensating balance agreements, shall be disclosed in the notes to the financial statements. Source downloaded (UTC): 2026-09-09T23:00:39.680Z to 2026-09-09T23:00:39.680Z Record version: sha256:d14c05e401a1fc37066bcabca8f190c1a6a559ba37310228ad43c7f03526a174 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/942/#sec-00-status) SEC content: yes ##### [210-942-S00-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:39.680Z to 2026-09-09T23:00:39.680Z Record version: sha256:c514cafcb68402a1651e96b60cec4919eded8a2486e9e819cde9972e141cf11a 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
942-210-S99-1AmendedAccounting Standards Update No. 2021-0608/09/2021
942-210-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
942-210-S99-1AmendedAccounting Standards Update No. 2009-0709/15/2009
942-210-S99-1AmendedAccounting Standards Update No. 2010-2108/02/2010
Source downloaded (UTC): 2026-09-09T23:00:44.379Z to 2026-09-09T23:00:44.379Z Record version: sha256:72489218285e15f1d5fbdbd46ee48d4abb2b71073144245aee77329f8af27f0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/942/#sec-45-other-presentation-matters) SEC content: yes #### Items Required to Be Presented on the Face of the Balance Sheet or in the Notes Thereto ##### [210-942-S45-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:44.379Z to 2026-09-09T23:00:44.379Z Record version: sha256:4c5358314701bed09d77ea4cd4a0b9ea24777aaaf928dfd8206d7bcd0ab934c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-210-S99-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S99-1), Regulation S-X Rule 9-03, for rules on items required to be presented on the face of the balance sheet or in the related financial statement footnotes. Source downloaded (UTC): 2026-09-09T23:00:47.954Z to 2026-09-09T23:00:47.954Z Record version: sha256:4b7b720886e58cced85c06f894611c50baf4353d7ce90732e0b4c591a5a0dfb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/942/#sec-50-disclosure) SEC content: yes #### Items Required to Be Disclosed in Financial Statement Footnotes ##### [210-942-S50-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:47.954Z to 2026-09-09T23:00:47.954Z Record version: sha256:be6f4f8fc2e4fcdc45a55c3c56fd6de29e8591b82b5757c022c16b8094a06eb2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-210-S99-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S99-1), Regulation S-X Rule 9-03, for rules on items required to be disclosed in the financial statement footnotes. Source downloaded (UTC): 2026-09-09T23:00:53.507Z to 2026-09-09T23:00:53.507Z Record version: sha256:534dfec519198012956015ee4db7e44d5b13d44cba10a75262dedfcd3577352e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-942-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/210/942/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [210-942-S99-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:53.507Z to 2026-09-09T23:00:53.507Z Record version: sha256:748c1736e813a391c24f72bb035e165b665cc480f612fbb6873fe0dcdb95228b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 9-03, Balance Sheets (17 CFR 210.9-03). - The purpose of this rule is to indicate the various items which, if applicable, should appear on the face of the balance sheets or in the notes thereto. - ASSETS - 1\. Cash and due from banks. The amounts in this caption should include all noninterest bearing deposits with other banks. - (a) Any withdrawal and usage restrictions (including requirements of the Federal Reserve to maintain certain average reserve balances) or compensating balance requirements should be disclosed (see § 210.5-02-1). - 2\. Interest-bearing deposits in other banks. - 3\. Federal funds sold and securities purchased under resale agreements or similar arrangements. - 4\. Trading account assets. Include securities or any other investments held for trading purposes only. - 5\. Other short-term investments. - 6\. Investment securities. Include securities held for investment only. Disclose the aggregate book value of investment securities; show on the balance sheet the aggregate market value at the balance sheet date. The aggregate amounts should include securities pledged, loaned or sold under repurchase agreements and similar arrangements; borrowed securities and securities purchased under resale agreements or similar arrangements should be excluded. - 7\. Loans. Disclose separately (1) total loans, (2) the related allowance for losses and (3) unearned income. - (a)-(d) \[Reserved\] - (e)(1)(i) As of each balance sheet date, disclose in a note the aggregate dollar amount of loans (exclusive of loans to any such persons which in the aggregate do not exceed $60,000 during the latest year) made by the registrant or any of its subsidiaries to directors, [executive officers](https://asc.understandingaccounting.org/glossary/e/#executive-officers "See paragraph 942-210-S99-1, Regulation S-X Rule 9-03(7)(e)(4), for the definition of executive officers for the purpose of Regulation S-X Rule 9-03."), or principal holders of equity securities (§ 210.1-02) of the registrant or any of its significant subsidiaries (§ 210.1-02), or to any [associate](https://asc.understandingaccounting.org/glossary/a/#associate "See paragraph 942-210-S99-1, Regulation S-X Rule 9-03(7)(e)(4), for the definition of associate for the purpose of Regulation S-X Rule 9-03.") of such persons. For the latest fiscal year, an analysis of activity with respect to such aggregate loans to related parties should be provided. The analysis should include the aggregate amount at the beginning of the period, new loans, repayments, and other changes. (Other changes, if significant, should be explained.) - (ii) This disclosure need not be furnished when the aggregate amount of such loans at the balance sheet date (or with respect to the latest fiscal year, the maximum amount outstanding during the period) does not exceed 5 percent of stockholders equity at the balance sheet date. - (2) If a significant portion of the aggregate amount of loans outstanding at the end of the fiscal year disclosed pursuant to (e)(1)(i) above relates to loans that are disclosed as past due, nonaccrual, or troubled debt restructurings in the consolidated financial statements, so state and disclose the aggregate amounts of such loans along with such other information necessary to an understanding of the effects of the transactions on the financial statements. - (3) Notwithstanding the aggregate disclosure called for by paragraph (e)(1) of this section, if any loans were not made in the [ordinary course of business](https://asc.understandingaccounting.org/glossary/o/#ordinary-course-of-business "See paragraph 942-210-S99-1, Regulation S-X Rule 9-03(7)(e)(4), for the definition of ordinary course of business for the purpose of Regulation S-X Rule 9-03.") during any period for which a statement of comprehensive income is required to be filed, provide an appropriate description of each such loan. - (4) Definition of terms. For purposes of this rule, the following definitions shall apply: - Associate means (i) a corporation, venture or organization of which such person is a general partner or is, directly or indirectly, the beneficial owner of 10 percent or more of any class of equity securities; (ii) any trust or other estate in which such person has a substantial beneficial interest or for which such person serves as trustee or in a similar capacity and (iii) any member of the [immediate family](https://asc.understandingaccounting.org/glossary/i/#immediate-family "See paragraph 942-210-S99-1, Regulation S-X Rule 9-03(7)(e)(4), for the definition of immediate family for the purpose of Regulation S-X Rule 9-03.") of any of the foregoing persons. - Executive officers means the president, any vice president in charge of a principal business unit, division or function (such as loans, investments, operations, administration or finance), and any other officer or person who performs similar policymaking functions. - Immediate Family means such person's spouse; parents; children; siblings; mothers and fathers-in-law; sons and daughters-in-law; and brothers and sisters-in-law. - Ordinary course of business means those loans which were made on substantially the same terms, including interest rate and collateral, as those prevailing at the same time for comparable transactions with unrelated persons and did not involve more than the normal risk of collectibility or present other unfavorable features. - 8\. Premises and equipment. - 9\. Due from customers on acceptances. Include amounts receivable from customers on unmatured drafts and bills of exchange that have been accepted by a bank subsidiary or by other banks for the account of a subsidiary and that are outstanding—that is, not held by a subsidiary bank, on the reporting date. (If held by a bank subsidiary, they should be reported as "loans" under § 210.9-03.7.) - 10\. Other assets. Disclose separately on the balance sheet or in a note thereto any of the following assets or any other asset the amount of which exceeds thirty percent of stockholders' equity. The remaining assets may be shown as one amount. - (1) Goodwill. - (2) Other intangible assets (net of amortization). - (3) Investments in and indebtedness of affiliates and other persons. - (4) Other real estate. - (a) Disclose in a note the basis at which other real estate is carried. A reduction to fair market value from the carrying value of the related loan at the time of acquisition shall be accounted for as a loan loss. Any allowance for losses on other real estate which has been established subsequent to acquisition should be deducted from other real estate. For each period for which a statement of comprehensive income is required, disclosures should be made in a note as to the changes in the allowances, including balance at beginning and end of period, provision charged to income, and losses charged to the allowance. - 11\. Total assets. - LIABILITIES AND STOCKHOLDERS' EQUITY - Liabilities - 12\. Deposits. Disclose separately the amounts of noninterest bearing deposits and interest bearing deposits. - (a) The amount of noninterest bearing deposits and interest bearing deposits in foreign banking offices must be presented if the disclosure provided by §210.9-05 is required. - 13\. Short-term borrowing. Disclosure separately on the balance sheet or in a note, amounts payable for - (1) Federal funds purchased and securities sold under agreements to repurchase; - (2) commercial paper, and - (3) other short-term borrowings. - (a) Disclose any unused lines of credit for short-term financing: (§ 210.5-02.19(b)). - 14\. Bank acceptances outstanding. Disclose the aggregate of unmatured drafts and bills of exchange accepted by a bank subsidiary, or by some other bank as its agent, less the amount of such acceptances acquired by the bank subsidiary through discount or purchase. - 15\. Other liabilities. Disclose separately on the balance sheet or in a note any of the following liabilities or any other items which are individually in excess of thirty percent of stockholders' equity (except that amounts in excess of 5 percent of stockholders' equity should be disclosed with respect to item (4)). The remaining items may be shown as one amount. - (1) Income taxes payable. - (2) Deferred income taxes. - (3) Indebtedness to affiliates and other persons the investments in which are accounted for by the equity method. - (4) Indebtedness to directors, executive officers, and principal holders of equity securities of the registrant or any of its significant subsidiaries (the guidance in § 210.9-03.7(e) shall be used to identify related parties for purposes of this disclosure). - (5) Accounts payable and accrued expenses. - 16\. Long-term debt. Disclose in a note the information required by § 210.5-02.22. - 17\. Commitments and contingent liabilities. - Redeemable Preferred Stocks. - 18\. Preferred stocks subject to mandatory redemption requirements or whose redemption is outside the control of the issuer. See § 210.5-02.27. - Non-redeemable Preferred Stocks. - 19\. Preferred stocks which are not redeemable or are redeemable solely at the option of the issuer. See § 210.5-02.28. - Common Stocks. - 20\. Common stocks. See § 210.5-02.29. - Other Stockholders' Equity. - 21\. Other stockholders' equity. See § 210.5-02.30. - Noncontrolling Interests - 22\. Noncontrolling interests in consolidated subsidiaries. The disclosure requirements of §210.5-02.31 shall be followed. - 23\. Total liabilities and equity. - \[48 FR 11107, Mar. 16, 1983, as amended at 48 FR 37612, Aug. 19, 1983; 50 FR 25215, June 18, 1985; 74 FR 18616, Apr. 23, 2009; 83 FR 50205 Oct. 4, 2018; 85 FR 66140, Oct. 16, 2020\] Source downloaded (UTC): 2026-09-09T23:00:55.233Z to 2026-09-09T23:01:22.901Z Record version: sha256:50937d317858165f158048c92a1f4bcca7a2ba709137d4906c526d891e4c6bc7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944: Balance Sheet — Financial Services—Insurance ### Machine-generated study aids ```json { "summary": "This Subtopic addresses balance sheet presentation for insurance entities, focusing on when reinsurance-related balances may be offset. The core rule is that amounts payable to a policyholder and amounts recoverable from a reinsurer cannot be offset because the right of setoff under 210-20-45-1(b) requires amounts owed to and receivable from the *same* party. By contrast, balances arising between the ceding and assuming entities under a reinsurance contract may qualify for offsetting if the Subtopic 210-20 conditions are met.", "key_points": [ "This Subtopic provides balance sheet reporting guidance to insurance entities (210-944-05-1) and follows the scope of Section 944-10-15 (210-944-15-1).", "Amounts payable to a policyholder and amounts recoverable from a reinsurer fail the offsetting criteria in Section 210-20-45 because 210-20-45-1(b) requires a legal right to set off an amount owed to a party against an amount receivable from that same party (210-944-55-1).", "Reinsurance does not relieve the ceding entity of its direct obligation to the policyholder, so the reinsurance recoverable must be reported gross as an asset rather than netted against the policy liability (210-944-55-1).", "Balances between the ceding and assuming entities—funds withheld on ceded premiums, commissions, unsettled claims, and funds advanced by the assuming entity—may qualify for offsetting if the conditions in Subtopic 210-20 are satisfied (210-944-55-2)." ], "categories": [ "Presentation", "Industry-specific", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "The classic exam trap is assuming that ceding risk to a reinsurer lets the insurer shrink its balance sheet: it does not, because the policyholder and the reinsurer are different parties, so the recoverable is a gross asset. Offsetting is only possible between the ceding and assuming entities themselves, and only if all of the 210-20 conditions are met.", "related_topics": [ "210-20", "944-10", "944-40", "944-310", "944-605", "944-20" ], "key_concepts": [ "right of setoff", "reinsurance recoverable", "ceding entity", "assuming entity", "funds withheld", "gross presentation", "policyholder liability", "offsetting" ] } ``` Source downloaded (UTC): 2026-09-09T23:00:55.233Z to 2026-09-09T23:00:55.233Z Record version: sha256:8f9ba313facb7a681b30c1d4fefa1380891edfdae27a41047758c62f783e17ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/944/#00-status) SEC content: no ##### [210-944-00-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:55.233Z to 2026-09-09T23:00:55.233Z Record version: sha256:5c285b078283b6447f8fe4bc581915f083b8380f672ee026d4e75573952ed63a 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
ReinsuranceAddedAccounting Standards Update No. 2016-1912/14/2016
944-210-55-1AmendedAccounting Standards Update No. 2016-1912/14/2016
944-210-55-2AmendedAccounting Standards Update No. 2016-1912/14/2016
Source downloaded (UTC): 2026-09-09T23:00:58.920Z to 2026-09-09T23:00:58.920Z Record version: sha256:81b2db0c5ad3cd2b6edb168d113f0d8b00748f6101cb01c5d4fe65f7084f7cbb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/944/#05-overview-and-background) SEC content: no ##### [210-944-05-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:00:58.920Z to 2026-09-09T23:00:58.920Z Record version: sha256:826d514f8905a024fead99e97d2eeeccb377c450fd4275b70fa467856c8c8d72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to insurance entities on balance sheet reporting. Source downloaded (UTC): 2026-09-09T23:01:02.237Z to 2026-09-09T23:01:02.237Z Record version: sha256:3dc5e885e73a8914b535be974265ba6258c587ca1311e17a908ed87f99ff3671 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/944/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [210-944-15-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:02.237Z to 2026-09-09T23:01:02.237Z Record version: sha256:da528c18928f8506eb1b9d349f0ff458cc38b356a362e8757b912dc833fe4757 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15. Source downloaded (UTC): 2026-09-09T23:01:06.974Z to 2026-09-09T23:01:06.974Z Record version: sha256:74a12302db96818f842f735c1dad57705f09b43d96dc6d69725f9c692b53c451 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/210/944/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [210-944-55-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:06.974Z to 2026-09-09T23:01:06.974Z Record version: sha256:bbe5df2b05f098629a7e4b1111d8d163ed196e865faa687f53097a1b98ecba90 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts payable to a policyholder and amounts recoverable from a [reinsurer](https://asc.understandingaccounting.org/glossary/r/#reinsurer "The assuming entity in a reinsurance transaction.") do not meet the criteria for offsetting in Section 210-20-45 because paragraph [210-20-45-1(b)](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-1) requires that the reporting party have the legal right to set off the amount owed to one party with an amount receivable from that same party. ##### [210-944-55-2](https://asc.understandingaccounting.org/asc/210/944/#210-944-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:06.974Z to 2026-09-09T23:01:06.974Z Record version: sha256:1e011b031fcea3237545b801a8694ebe03f784fee7797d145182e0ac5011a524 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Several balances may arise between the ceding and assuming entities in a [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contract, including funds withheld on ceded premiums, commissions, unsettled claims, and funds advanced by the assuming entity. Those items may qualify for offsetting under the conditions established by Subtopic 210-20. Source downloaded (UTC): 2026-09-09T23:01:11.087Z to 2026-09-09T23:01:11.087Z Record version: sha256:1e5060a961713ab9d524b99f11b71f4e1ecb6271fb4c89aa9bf650fe510195a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/944/#sec-00-status) SEC content: yes ##### [210-944-S00-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:11.087Z to 2026-09-09T23:01:11.087Z Record version: sha256:12caab8b951e4606cc763fcd5b07b579957d4d9a7d266388682a94478068f262 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
944-210-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
944-210-S99-1AmendedAccounting Standards Update No. 2010-2108/02/2010
Source downloaded (UTC): 2026-09-09T23:01:15.072Z to 2026-09-09T23:01:15.072Z Record version: sha256:c1f6edcadc4d16292558a7421e9e21afb2232396ca6e3bb23feb73eb91c72d33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/944/#sec-45-other-presentation-matters) SEC content: yes #### Presentation and Classification ##### [210-944-S45-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:15.072Z to 2026-09-09T23:01:15.072Z Record version: sha256:1a1da7a5cf1bcc0bba496e97ee3efa12dd019a9d268a1faa543c7bd72e303970 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03 for the required balance sheet presentation for insurance companies. Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:bdd760339dd381af648fb5b411d2c69b40e3f8372385027787abe02bd341a848 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/944/#sec-50-disclosure) SEC content: yes #### Long-Term Investments ##### [210-944-S50-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:88560ff8918d23865892be776aa6ede8d729271c0aef0f063e48f9122bb19088 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.1, for the required disclosures pertaining to long-term investments. #### Restricted Cash ##### [210-944-S50-2](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:3eb9a26af1914139469adfea5dd1bcc799252d70ce2afc9b29a7a81e97530715 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.2, for the required disclosures pertaining to restricted cash. #### Policy Liabilities and Accruals ##### [210-944-S50-3](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:23bcc94c4a3e8e169e31add9288a94e0333e1a56315b4d75dbea2db899b1df3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.13, for the required disclosures pertaining to policy liabilities and accruals. #### Other Policyholders' Funds ##### [210-944-S50-4](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:0a132721b372e659ee56cbad7ec75dac0de54a3eee3b47869ff9cc5453b9b92d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.14, for the required disclosures pertaining to participating insurance. #### Minority Interests in Consolidated Subsidiaries ##### [210-944-S50-5](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:5ec2171b0c12d6a81fd3ab114c2df48792b0ce16537d0bff20afe7c1296ce469 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.20, for the required disclosures pertaining minority interests in consolidated subsidiaries. #### Stockholders' Equity ##### [210-944-S50-6](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:8fc28910640333cbbbac7548564dec50b000c3af51f278a86ba992a1f6349070 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.21, for the required disclosures pertaining to redeemable preferred stock. ##### [210-944-S50-7](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:c39ab17f69fabb66a2ff397beb7ed5e160d4a86064163d2d0bc779e74ccf6467 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.22, for the required disclosures pertaining to preferred stocks that are not redeemable or are redeemable solely at the option of the issuer. ##### [210-944-S50-8](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:a5db7d87cff6eb172d4aeebcc694ba1849915f1ef43a2ec15a7705b82817593f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.22, for the required disclosures pertaining to common stocks. ##### [210-944-S50-9](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:6c670770b2331c7adfeee884629b88967ae0581a9c30eef0b4f6c390c790dfd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-210-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1), Regulation S-X Rule 7-03.24(c), for the required disclosures pertaining to stockholders' equity. #### Supplemental Information Concerning Property Casualty Insurance Operations ##### [210-944-S50-10](https://asc.understandingaccounting.org/asc/210/944/#210-944-S50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:17.420Z to 2026-09-09T23:01:17.420Z Record version: sha256:635041ed4b9a99717eccd712b489c845923ec6ac27eb05b652732ed7f8381af7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-6](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-6), Regulation S-X Rule 5-04(c), for the required supplemental schedule concerning property casualty insurance operations. Source downloaded (UTC): 2026-09-09T23:01:22.901Z to 2026-09-09T23:01:22.901Z Record version: sha256:f982fde51d108285a7b2f9ccc6262a9f71200bce5418bcf6ba80e4a87c4f91e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-944-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/210/944/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [210-944-S99-1](https://asc.understandingaccounting.org/asc/210/944/#210-944-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:22.901Z to 2026-09-09T23:01:22.901Z Record version: sha256:7fe2ac475f9ca513aad52fc2d63c4880126c34cbd83b137e216a5049c2ea071c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 7-03, Balance Sheets (17 CFR 210.7-03). - (a) The purpose of this rule is to indicate the various items which, if applicable, and except as otherwise permitted by the Commission, should appear on the face of the balance sheets and in the notes thereto filed for persons to whom this article pertains. (See § 210.4-01(a).) - ASSETS - 1\. Investments—other than investments in related parties. - (a) Fixed maturities. - (b) Equity securities. - (c) Mortgage loans on real estate. - (d) Investment real estate. - (e) Policy loans. - (f) Other long-term investments. - (g) Short-term investments. - (h) Total investments. - NOTES: - (1) State parenthetically or otherwise in the balance sheet (a) the basis of determining the amounts shown in the balance sheet and (b) as to fixed maturities and equity securities either aggregate cost or aggregate value at the balance sheet date, whichever is the alternate amount of the carrying value in the balance sheet. Consideration shall be given to the discussion of "Valuation of Securities" in § 404.03 of the Codification of Financial Reporting Policies. - (2) Include under fixed maturities: bonds, notes, marketable certificates of deposit with maturities beyond one year, and redeemable preferred stocks. Include under equity securities: common stocks and nonredeemable preferred stocks. - (3) State separately in the balance sheet or in a note thereto the amount of accumulated depreciation and amortization deducted from investment real estate. Subcaption (d) shall not include real estate acquired in settling title claims, mortgage guaranty claims, and similar insurance claims. Real estate acquired in settling claims shall be included in caption 10, "Other Assets," or shown separately, if material. - (4) Include under subcaption (g) investments maturing within one year, such as commercial paper maturing within one year, marketable certificates of deposit maturing within one year, savings accounts, time deposits and other cash accounts and cash equivalents earning interest. State in a note any amounts subject to withdrawal or usage restrictions. (See § 210.5-02.1.) - (5) State separately in a note the amount of any class of investments included in subcaption (f) if such amount exceeds ten percent of stockholders' equity. - (6) State in a note the name of any person in which the total amount invested in the person and its affiliates, included in the above subcaptions, exceeds ten percent of total stockholders' equity. For this disclosure, include in the amount invested in a person and its affiliates the aggregate of indebtedness and stocks issued by such person and its affiliates that is included in the several subcaptions above, and the amount of any real estate included in subcaption (d) that was purchased or acquired from such person and its affiliates. Indicate the amount included in each subcaption. An investment in bonds and notes of the United States Government or of a United States Government agency or authority which exceeds ten percent of total stockholders' equity need not be reported. - (7) State in a note the amount of investments included under each subcaption (a), (c), (d) and (f) which have been non-income producing for the twelve months preceding the balance sheet date. - 2\. Cash. Cash on hand or on deposit that is restricted as to withdrawal or usage shall be disclosed separately on the balance sheet. - The provisions of any restrictions shall be described in a note to the financial statements. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits. In cases where compensating balance arrangements exist but are not agreements which legally restrict the use of cash amounts shown on the balance sheet, describe in the notes to the financial statements these arrangements and the amount involved, if determinable, for the most recent audited balance sheet required. Compensating balances that are maintained under an agreement to assure future credit availability shall be disclosed in the notes to the financial statements along with the amount and terms of the agreement. - 3\. Securities and indebtedness of related parties. State separately (a) investments in related parties and (b) indebtedness from such related parties. (See § 210.4-08(k).) - 4\. Accrued investment income. - 5\. Accounts and notes receivable. Include under this caption - (a) amounts receivable from agents and insureds, - (b) uncollected premiums and - (c) other receivables. - State separately in the balance sheet or in a note thereto any category of other receivable which is in excess of five percent of total assets. State separately in the balance sheet or in a note thereto the amount of allowance for doubtful accounts that was deducted. - 6\. Reinsurance recoverable. - 7\. Deferred policy acquisition costs. - 8\. Property and equipment. - (a) State the basis of determining the amounts. - (b) State separately in the balance sheet or in a note thereto the amount of accumulated depreciation and amortization of property and equipment. - 9\. Title plant. - 10\. Other assets. State separately in the balance sheet or in a note thereto any other asset the amount of which exceeds five percent of total assets. - 11\. Separate account assets. Include under this caption the portion of separate account assets representing contract holder funds required to be reported in an insurance entity's financial statements as a summary total. An equivalent summary total for the related liability shall be included under caption 18. - 12\. Total assets. - LIABILITIES AND STOCKHOLDERS' EQUITY - 13\. Policy liabilities and accruals. - (a) State separately in the balance sheet the amounts of - (1) future policy benefits and losses, claims and loss expenses, - (2) unearned premiums and - (3) other policy claims and benefits payable. - (b) \[Reserved\] - 14\. Other policyholders' funds. - (a) Include amounts of supplementary contracts without life contingencies, policyholders' dividend accumulations, undistributed earnings on participating business, dividends to policyholders and retrospective return premiums (not included elsewhere) and any similar items. State separately in the balance sheet or in a note thereto any item the amount of which is in excess of five percent of total liabilities. - (b) State in a note to the financial statements the relative significance of participating insurance expressed as percentages of (1) insurance in force and (2) premium income; and the method by which earnings and dividends allocable to such insurance is determined. - 15\. Other liabilities. - (a) Include under this caption such items as accrued payrolls, accrued interest and taxes. State separately in the balance sheet or in a note thereto any item included in other liabilities the amount of which exceeds five percent of total liabilities. - (b) State separately in the balance sheet or in a note thereto the amount of (1) income taxes payable and (2) deferred income taxes. Disclose separately the amount of deferred income taxes applicable to unrealized appreciation of equity securities. - 16\. Notes payable, bonds, mortgages and similar obligations, including capitalized leases. - (a) State separately in the balance sheet the amounts of (1) short-term debt and (2) long-term debt including capitalized leases. - (b) The disclosure required by § 210.5-02.19(b) shall be given if the aggregate of short-term borrowings from banks, factors and other financial institutions and commercial paper issued exceeds five percent of total liabilities. - (c) The disclosure requirements of § 210.5-02.22 shall be followed for long-term debt. - 17\. Indebtedness to related parties. (See § 210.4-0.8(k).) - 18\. Liabilities related to separate accounts. \[See caption 11.\] - 19\. Commitments and contingent liabilities. - REDEEMABLE PREFERRED STOCKS - 20\. Preferred stocks subject to mandatory redemption requirements or whose redemption is outside the control of the issuer. The classification and disclosure requirements of § 210.5-02.27 shall be followed. - NONREDEEMABLE PREFERRED STOCKS - 21\. Preferred stocks which are not redeemable or are redeemable solely at the option of the issuer. The classification and disclosure requirements of § 210.5-02.28 shall be followed. - COMMON STOCKS - 22\. Common stocks. The classification and disclosure requirements of § 210.5-02.29 shall be followed. - OTHER STOCKHOLDERS' EQUITY - 23\. Other stockholders' equity. - (a) Separate captions shall be shown for - (1) additional paid-in capital, - (2) other additional capital, - (3) accumulated other comprehensive income, - (4) retained earnings (i) appropriated and (ii) unappropriated. (See § 210.4-08(e).) Additional paid-in capital and other additional capital may be combined with the stock caption to which they apply, if appropriate. - (b) The classification and disclosure requirements of § 210.5-02.30(b) shall be followed for dating and effect of a quasi-reorganization. - (c) State in a note the following information separately for (1) life insurance legal entities, and (2) property and liability insurance legal entities: the amount of statutory stockholders' equity as of the date of each balance sheet presented and the amount of statutory net income or loss for each period for which a statement of comprehensive income is presented. - NONCONTROLLING INTERESTS - 24\. Noncontrolling interests in consolidated subsidiaries. The disclosure requirements of § 210.5-02.31 shall be followed. - 25\. Total liabilities and equity. - \[46 FR 54335, Nov. 2, 1981, as amended at 50 FR 25215, June 18, 1985; 74 FR 18615, Apr. 23, 2009; 83 FR 50203, Oct. 4, 2018\] Source downloaded (UTC): 2026-09-09T23:01:25.620Z to 2026-09-09T23:02:00.098Z Record version: sha256:80d9ea1d849fee02d2fe8386085892bf873deb98e5dbe6aaaa06b3910f2db0f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946: Balance Sheet — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "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": [ "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)." ], "categories": [ "Presentation", "Disclosure", "Industry-specific", "Fair value" ], "audience_level": "advanced", "student_note": "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.", "related_topics": [ "946-10", "946-205", "940", "825-10", "275-10", "962" ], "key_concepts": [ "schedule of investments", "condensed schedule of investments", "statement of assets and liabilities", "master-feeder structure", "multiple-class shares", "fully benefit-responsive investment contract", "contract value", "nonregistered investment partnership" ] } ``` Source downloaded (UTC): 2026-09-09T23:01:25.620Z to 2026-09-09T23:01:25.620Z Record version: sha256:dcd9d7054c9ce776bf0ef56c4fe15d044a6ca87b6997b233acd50756edda31b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/946/#00-status) SEC content: no ##### [210-946-00-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:25.620Z to 2026-09-09T23:01:25.620Z Record version: sha256:0c4592d5055e0cc4eea65330ab7311ab4627d0a42ea89d5c1a529c18b822de0b 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
946-210-45-18AAddedAccounting Standards Update No. 2012-0410/01/2012
946-210-45-20AddedMaintenance Update 2017-21 (PDF)12/22/2017
946-210-45-21AmendedMaintenance Update 2018-12 (PDF)09/10/2018
946-210-45-21AddedMaintenance Update 2017-21 (PDF)12/22/2017
946-210-50-7SupersededAccounting Standards Update No. 2016-1912/14/2016
946-210-50-9AmendedAccounting Standards Update No. 2016-1912/14/2016
946-210-55-1AmendedAccounting Standards Update No. 2016-1912/14/2016
946-210-55-2AmendedMaintenance Update 2016-11 (PDF)06/27/2016
Source downloaded (UTC): 2026-09-09T23:01:27.714Z to 2026-09-09T23:01:27.714Z Record version: sha256:34b5c0a81ba77075a227f1884452fdfb84378f38123f283d62d244651c5c9935 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/946/#05-overview-and-background) SEC content: no ##### [210-946-05-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:27.714Z to 2026-09-09T23:01:27.714Z Record version: sha256:64ca50a70e08d44a9729613a17562ace786e2eeda605ab452dc157044a6902fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses an investment company's reporting of its financial position, including a schedule of investments. Source downloaded (UTC): 2026-09-09T23:01:31.241Z to 2026-09-09T23:01:31.241Z Record version: sha256:4b89e4bcf5819b5159b988de4714696659dc4f423a0798d352f0d136b9dffa60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/946/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [210-946-15-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:31.241Z to 2026-09-09T23:01:31.241Z Record version: sha256:3e49636da3e8d2fca4892020d249c333c9bd88917a8afff812413dfac594b84a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15. Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:81caa0cf4a0bd14bc45c0594f1dccebd8d73c7a7e639430c199449606376c2c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/946/#45-other-presentation-matters) SEC content: no #### Reporting Financial Position ##### [210-946-45-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:e8ab578d7a4d0447fcc5d5a786567ec2040ffd0af1bb24ed2421c634cb833a51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment companies report financial position by presenting either a statement of assets and liabilities or a statement of net assets. ##### [210-946-45-2](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:3619c79a9a82c8d90f10bde8f4c6f28ae5c96c2e3fa6fba0f99c687d06091fcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of net assets includes a schedule of investments (see Section 946-210-50). Details of [related-party](https://asc.understandingaccounting.org/glossary/r/#related-parties "Related parties include: Affiliates of the entity Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management Principal owners of the entity and members of their immediate families Management of the entity and members of their immediate families Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.") 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:8527d65b256fce307bb793f8f02082a6f679c37b57695f1891dda239b7bd32d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:c5c5cfb1cc9dd792fe561f896fe7dd5f8d98fe2dcab74a9a18c9a4fcee210b40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The composition of net assets shall be reported in total, but [net asset value per share](https://asc.understandingaccounting.org/glossary/n/#net-asset-value-per-share "Net asset value per share is the amount of net assets attributable to each share of capital stock (other than senior equity securities, that is, preferred stock) outstanding at the close of the period. It excludes the effects of assuming conversion of outstanding convertible securities, whether or not their conversion would have a diluting effect.") and shares outstanding shall be reported for each class. ##### [210-946-45-5](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:3610a0f0d5668cbe41e26a3fe93fa53fc11aa47872b8f20d582c5902724dd3e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:d13017aa7218721e759d3757b324f479b26aacd732c855966bdfac9bebafffdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:19f15eed1e631fe79086012ebf53a6080a86dd1caaa46b6891860834aac1f1d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/u/#underlying "A specified interest rate, security price, commodity price, foreign exchange rate, index of prices or rates, or other variable (including the occurrence or nonoccurrence of a specified event such as a scheduled payment under a contract). An underlying may be a price or rate of an asset or liability but is not the asset or liability itself. An underlying is a variable that, along with either a notional amount or a payment provision, determines the settlement of a derivative instrument.") 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:bc70da4cdf98f7869d69e649e792b7f5b22cd737a65537689f2bb5d763538d1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:44f056451de94eb60cfa5087bfe124b3c3d1f06bf9a6a2df7a72363c1c2c8243 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:6552377941e6fc67cbb24196355da8858ed4f5ad9b9ece0975a7f1aaa74062a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:a43c699bcae5c124903c658e1cf1ebcc826b94a24fcda65ae76962757802e427 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness.") 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:fcf9a173f04ac5be12449281c3b9daa6e847912272daf3326399894c27e3437d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:34f0a2638a64c12d26d8b0d1c27926f3ca62f41c683615db819c72a70b0b8f6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:bba02a6568d2a8ad6f756200bd9009beee742ea126baed0197defaa88b578da4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under Rule 2a-4 of the Investment Company Act of 1940, current net asset value is computed using the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the investment company's portfolio securities. ##### [210-946-45-15](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:71b7d0525cbf408f6c2dbd63ea12bb95ec769c1ac8e967342707d17538c154ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:9f0f1355fd6bd65ba05f097e3db1fb34bbb076a2647143014051c490a0160b91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:835150e223c24494be564dd0067e185463be6b07a7be26b2d3b24680d4da50c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:2a8b78502a5cb58aa893d1cb2d1d900d3a55c1b830fc89b2ba63e93d7a9e29ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-1), 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-18A) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:09b7077a44ff850e47c464ff24f0bb36a99e7212b704f8ebce0c0e677059c8cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To be considered within the scope of paragraphs [946-210-45-15 through 45-18](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-15) , 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:b76a120844b584afe38f52d7f918b8e9d97f131e1958da794338dde1fe2603d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 2 (see paragraph [946-210-55-2](https://asc.understandingaccounting.org/asc/210/946/#210-946-55-2)) illustrates the application of this guidance. #### Cash and Cash Equivalents ##### [210-946-45-20](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:21e8c3cd8d907ef10cf8193ab204199120247d5a5fe10af027d1e5f85b3e05a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash on hand and demand deposits shall be included under the general caption _cash_. ##### [210-946-45-21](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:38.323Z to 2026-09-09T23:01:38.323Z Record version: sha256:83f902774830ff2a63cb3da401ec0467f1ac9385e109ba3ed29dd5f54bba25b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts held in foreign currencies shall be presented separately at value, with acquisition cost shown parenthetically. Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:520a02beb55c988e7a34e2802105fe0e2019fa8fd0109fc15fccb4f32ea95825 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/946/#50-disclosure) SEC content: no #### Schedule of Investments ##### [210-946-50-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:268175a7f78ea0e289ba2d87a52635c8d055168f3613db9e6718b67ffe01a7fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:ad32b68f4dfc8ad7b4ea5ed8f96d4ac4769ed27baa10ca9d9494785dfb165789 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:f4a1567c2c26499bb632fba79df793f68567f78ba1e7d07f56c7aa8818cd5d9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:358e861f65b99375a2ff8f52c44595d1369847bde631ae8e28658e414985c4c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as noted in the following paragraph, the guidance in paragraph [946-210-50-6](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-6) 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:434853cd52657aef3ebcc3b6527d6a53b90d97fed0016f73c212eafd87b0386d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:298c90374a32dacedcf19a00237850cc238a25675c4bb3f351620b92fd995c12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial statements of an investment partnership meeting the condition in paragraph [946-210-50-4](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-4) 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](https://asc.understandingaccounting.org/glossary/u/#underlying "A specified interest rate, security price, commodity price, foreign exchange rate, index of prices or rates, or other variable (including the occurrence or nonoccurrence of a specified event such as a scheduled payment under a contract). An underlying may be a price or rate of an asset or liability but is not the asset or liability itself. An underlying is a variable that, along with either a notional amount or a payment provision, determines the settlement of a derivative instrument.") 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). ##### [210-946-50-7](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:0e307ada8ed5f6dd1e2dc4b98fc6502da094f73004f83c01922e023d775368c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-19](https://asc.understandingaccounting.org/updates/asu-2016-19/). ##### [210-946-50-8](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:4b547d590312f4b9d07be0f115e1cb2a0840150c44d9dcf5c81093e948e3c032 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-1)and [946-210-50-6](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-6). ##### [210-946-50-9](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:3b881482d26bff60c90857e166da0630b49a2bd747fd9f8cf4b4b54df9134a51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-6). 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:20998d9c2ffb74cf6f3395bc218dd04ed8d90360fad9ff1cca9f0f8646904043 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If information about the investee's portfolio is not available, that fact shall be disclosed. ##### [210-946-50-11](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:5b1ca4f4a8e78bcee3bbd3c3d6a74d0204b6e571343924d15ed3b667f1da8505 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms, conditions, and other arrangements relating to a credit enhancement shall be disclosed in the notes to financial statements. ##### [210-946-50-12](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:82b1fbafa00f2684a30d1b0c426b709b695cef433cd3134ca92ce60964c1c577 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:d65984a122ad7f1186570a8d9fc70c26c5ce1d7e7dfe35b43df0fb38a8ffebcb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:41.571Z to 2026-09-09T23:01:41.571Z Record version: sha256:1a1db8e63395e18d5dd4ab5d07aca669c2739e37f1f1605813414b766fbfe1c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment companies identified in paragraph [946-210-45-11](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-11) shall disclose all of the following in connection with [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."), 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-55-2)) illustrates the application of this guidance. Source downloaded (UTC): 2026-09-09T23:01:44.511Z to 2026-09-09T23:01:44.511Z Record version: sha256:4dd15eb9583a0ddaf15056b2550d51382d187c0e1834dd34514e137459c8d500 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/210/946/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [210-946-55-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:44.511Z to 2026-09-09T23:01:44.511Z Record version: sha256:d2b66ef81b25c4ceda0ec2a9555c80ca4f81c0524f2f517062adaee8073338e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates how to apply the guidance in paragraph [946-210-50-6](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-6). 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. - ![](https://asc.understandingaccounting.org/asc-img/GUID-2589FA1C-7663-4764-9BE0-FF66F879771A-low.gif) "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 " ![](https://asc.understandingaccounting.org/asc-img/GUID-C883DA3C-32C8-490A-825F-7F09AF3C1496-low.gif) 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:44.511Z to 2026-09-09T23:01:44.511Z Record version: sha256:af609adaf440292a04131a3b37a21635374c8ff0d7eb2b09847f3a0568df236c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-50-14) and related note disclosure prepared in accordance with the guidance beginning in paragraph [946-210-45-9](https://asc.understandingaccounting.org/asc/210/946/#210-946-45-9). - ![](https://asc.understandingaccounting.org/asc-img/GUID-9A3685EF-36E6-4173-B82F-D95D27C1BC4C-low.gif) 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 " - ![](https://asc.understandingaccounting.org/asc-img/GUID-2D97B55A-C5F6-4B25-A2EB-15D25FEC1717-low.gif) 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 " Source downloaded (UTC): 2026-09-09T23:01:49.858Z to 2026-09-09T23:01:49.858Z Record version: sha256:0e28393952b2a7f30e683ed57bdbf8f236d4efd8e18e67de0cacf299385ca6b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/946/#sec-00-status) SEC content: yes ##### [210-946-S00-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:49.858Z to 2026-09-09T23:01:49.858Z Record version: sha256:8ecdde09f6d60c55a66be9061092c88c07f3e66212bb557ea835adec6da36ab0 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
946-210-S99-1 through S99-3
AmendedAccounting Standards Update No. 2019-0707/26/2019
Source downloaded (UTC): 2026-09-09T23:01:53.420Z to 2026-09-09T23:01:53.420Z Record version: sha256:9f4424eb89193012c8ad68907d22adfc6c16ec429544eb5adbaab23dc81d6728 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/946/#sec-45-other-presentation-matters) SEC content: yes #### Certificate Reserves ##### [210-946-S45-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:53.420Z to 2026-09-09T23:01:53.420Z Record version: sha256:0976fdd6d4ce30e08d7b7333ce5f366bbf8437acc434eae7b4b628d3200b7897 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:53.420Z to 2026-09-09T23:01:53.420Z Record version: sha256:cb1d079854fa12da5f30b0d1e64c0b6c23eb12cc1aca77ff12401d7b173058dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:53.420Z to 2026-09-09T23:01:53.420Z Record version: sha256:b350fa12f2ba3b1bbd45b8e7c0d711afc85fcfe75752a6acc8b7441a9f8ffd34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-2](https://asc.understandingaccounting.org/asc/210/946/#210-946-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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:53.420Z to 2026-09-09T23:01:53.420Z Record version: sha256:60f14feff16ab35a81331883dbb7f9cd3a1e9dd3ae863e66a144feca19523ba5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-3](https://asc.understandingaccounting.org/asc/210/946/#210-946-S99-3), Regulation S-X Rule 6-06, for the required balance sheet presentation for issuers of face-amount certificates. Source downloaded (UTC): 2026-09-09T23:01:55.540Z to 2026-09-09T23:01:55.540Z Record version: sha256:294b62771052d1467fff8822fb7c73aad4073e819f93a9b6ccc82027f6045279 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/946/#sec-50-disclosure) SEC content: yes #### Cash ##### [210-946-S50-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:55.540Z to 2026-09-09T23:01:55.540Z Record version: sha256:8e9599d5c2fd059cf39e28c1a96481e89aab0501c9f81b431d5473ab7049a1cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:55.540Z to 2026-09-09T23:01:55.540Z Record version: sha256:c6203c0087e62033a9ad6121626f81eace57595fc2469183d099ee983fa2812e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:55.540Z to 2026-09-09T23:01:55.540Z Record version: sha256:80f43f2e70608aae65376a019b53be714e1f6567b48dcc1a2168f4ef064d3d08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:55.540Z to 2026-09-09T23:01:55.540Z Record version: sha256:6e4f09b25793c263c104fdd8ac8981956ee9709e98ac2fb0b7fa10802b91b756 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-2](https://asc.understandingaccounting.org/asc/210/946/#210-946-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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:01:55.540Z to 2026-09-09T23:01:55.540Z Record version: sha256:437e3b6ee3d39ee9f36d34a84c89ce781bd7d4534ee029e27f212237e1a4116e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-210-S99-3](https://asc.understandingaccounting.org/asc/210/946/#210-946-S99-3), Regulation S-X Rule 6-06, for the required disclosures related to face-amount certificate issuers. Source downloaded (UTC): 2026-09-09T23:02:00.098Z to 2026-09-09T23:02:00.098Z Record version: sha256:f290d6acbcd89e5a8fdce92d1e224785d66b6a1bd100b60d43d7a3b6125d17c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-946-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/210/946/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [210-946-S99-1](https://asc.understandingaccounting.org/asc/210/946/#210-946-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:00.098Z to 2026-09-09T23:02:00.098Z Record version: sha256:8aff9509070b9d811bb14bd51c3b9eb85f52982315a72ebf8ead7503aa39a6d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:00.098Z to 2026-09-09T23:02:00.098Z Record version: sha256:284ad2a9b10072e3b73d2819400d2bb91dd4370955d2057e4a4d90b530ced487 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/210/946/#210-946-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:00.098Z to 2026-09-09T23:02:00.098Z Record version: sha256:db06e87cdb88cb6f7d40768becd2c829c70e312f7b371691019b2cf16601a999 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-09T23:02:01.873Z to 2026-09-09T23:02:21.878Z Record version: sha256:685e972969b65f88ef59c1bbdb2503c68eae33c766f0800881fbc70c2d980ed2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954: Balance Sheet — Health Care Entities ### Machine-generated study aids ```json { "summary": "This subtopic governs how health care entities, including not-for-profit business-oriented health care entities, present their balance sheets. The general rule is a classified (current/noncurrent) balance sheet under Section 210-10-45, except that a continuing care retirement community may instead sequence assets by nearness of conversion to cash and liabilities by nearness of maturity. It also specifies that contractually limited (non-donor) assets stay in net assets without donor restrictions, that interfund balances are eliminated, and that restricted or segregated cash is excluded from current assets.", "key_points": [ "Health care entities shall classify assets and liabilities as current and noncurrent per Section 210-10-45, but a continuing care retirement community may instead sequence assets by nearness of conversion to cash and liabilities by nearness of maturity (210-954-45-1).", "Assets whose use is contractually limited by an outside party other than a donor or grantor—such as trusteed bond proceeds, self-insurance funding arrangements, and statutory reserves—are included in net assets without donor restrictions (210-954-45-2).", "Because general-purpose financial statements do not classify assets and liabilities into fund groups, interfund receivables and payables are eliminated (210-954-45-3).", "Internally designated funds shall be reported separately from externally restricted funds, either on the face of the balance sheet or in the notes (210-954-45-4).", "Cash and claims to cash restricted as to withdrawal or use for other than current operations, designated for acquiring or constructing noncurrent assets, segregated to liquidate long-term debt, or limited to long-term purposes by donor restriction shall be reported separately and excluded from current assets (210-954-45-5).", "Separate bank accounts holding donor-restricted gifts are not reported on a separate line unless 954-210-45-5 requires it, because donor restrictions limit use of net assets rather than specific assets; a columnar presentation of the two net asset classes is permitted if entity-wide totals are shown (210-954-45-6).", "If the form of internally designated assets reported separately is not evident from the balance sheet description, that form shall be disclosed in the notes (210-954-50-2)." ], "categories": [ "Presentation", "Not-for-profit", "Industry-specific", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "The classic trap is assuming that anything labeled \"limited as to use\" is donor-restricted: contractual limits imposed by trustees, lenders, or regulators leave the assets in net assets without donor restrictions, even though they are excluded from current assets. Also remember the CCRC exception to the classified balance sheet requirement.", "related_topics": [ "954-10", "954-210", "954-810", "210-10", "958-210", "954-430" ], "key_concepts": [ "classified balance sheet", "continuing care retirement community", "assets limited as to use", "net assets without donor restrictions", "donor-imposed restrictions", "restricted cash", "interfund receivables and payables", "internally designated funds" ] } ``` Source downloaded (UTC): 2026-09-09T23:02:01.873Z to 2026-09-09T23:02:01.873Z Record version: sha256:c1d16517bf0b3c3ecb25216d4496cac24e4a09b52a8b2f924794d039e9b42983 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/954/#00-status) SEC content: no ##### [210-954-00-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:01.873Z to 2026-09-09T23:02:01.873Z Record version: sha256:c9a2b0ad908ae63b807f9a821367aee84fcfff43225ab50f0df779920be42bf6 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
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
954-210-45-2AmendedAccounting Standards Update No. 2016-1408/18/2016
954-210-45-4AmendedAccounting Standards Update No. 2016-1408/18/2016
954-210-45-5 through 45-7
AddedMaintenance Update 2017-21 (PDF)12/22/2017
954-210-50-1SupersededAccounting Standards Update No. 2016-1408/18/2016
954-210-50-2AmendedMaintenance Update 2021-09 (PDF)08/20/2021
954-210-50-2AmendedAccounting Standards Update No. 2016-1408/18/2016
Source downloaded (UTC): 2026-09-09T23:02:05.802Z to 2026-09-09T23:02:05.802Z Record version: sha256:6748f15b59467bf721ae552bfe7e2cf4f9db5fb5f8ee5cb8344e474cc3a0b00b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/954/#05-overview-and-background) SEC content: no ##### [210-954-05-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:05.802Z to 2026-09-09T23:02:05.802Z Record version: sha256:a4929eaa085ca5c1c3d5e411f51b64efba9cd609c7bcf320b95c3f6401ad72b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on balance sheets for health care entities. Source downloaded (UTC): 2026-09-09T23:02:08.568Z to 2026-09-09T23:02:08.568Z Record version: sha256:59b3681455cac3dc60dcfabfd1f92bb59180595fdf143214f6e41f036612c32b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [210-954-15-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:08.568Z to 2026-09-09T23:02:08.568Z Record version: sha256:c74f26d409af4aea07e73881544b14b54b22aaa3807c4a70465d7ced09a3d2c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (Section 954-10-15). ##### [210-954-15-2](https://asc.understandingaccounting.org/asc/210/954/#210-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:08.568Z to 2026-09-09T23:02:08.568Z Record version: sha256:db3cf1bf8a6cc3fd9bda0e4469a0767eaf540cc74af1dad3ffceec7390622361 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:78d301f446a555560af68dabd6b7fb3e3e9eca93204db733f087825617ef70c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/954/#45-other-presentation-matters) SEC content: no ##### [210-954-45-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:3308fbc97fea0a107de104ecdb40379011613ca9990d38e3a177c89f7579a81c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Health care entities, including not-for-profit, business-oriented health care entities, shall classify assets and liabilities as current and noncurrent as discussed in Section 210-10-45. However, rather than presenting a classified balance sheet, a continuing care retirement community instead may sequence assets according to their nearness of conversion to cash and may sequence liabilities according to the nearness of the maturity and resulting use of cash. #### Net Assets without Donor Restrictions ##### [210-954-45-2](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:3876ae2c9d7d5c9ca85154310deda8d5245a0611b75929974c9e7a4ecfd3f488 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") of not-for-profit, business-oriented health care entities include assets whose use is contractually limited, such as the following: 1. a Proceeds of debt issues and funds of the not-for-profit, business-oriented health care entity deposited with a trustee and limited to use in accordance with the requirements of an indenture or a similar agreement. 2. b Other assets limited to use for identified purposes through an agreement between the not-for-profit, business-oriented health care entity and an outside party other than a donor or grantor. Examples include assets set aside under debt agreements, assets set aside under self-insurance (risk-retention) funding arrangements, and assets set aside to meet statutory reserve requirements (such as those required under state laws and regulations for many [health maintenance organizations](https://asc.understandingaccounting.org/glossary/h/#health-maintenance-organization "A generic group of medical care entities organized to provide defined health care services to members in return for fixed, periodic premiums (usually paid monthly) that are paid in advance.")). (See paragraph [954-810-45-4](https://asc.understandingaccounting.org/asc/810/954/#810-954-45-4).) #### Interfund Receivables or Payables ##### [210-954-45-3](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:1ee031d115452bd2c00a25caf65afe7873c1bc6a80520e22a71659c4e99b4db0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interfund receivables (or payables) may exist in internal records. However, since general-purpose financial statements of not-for-profit, business-oriented health care entities do not classify assets and liabilities into fund groups, interfund receivables (or payables) are eliminated. #### Assets Limited as to Use ##### [210-954-45-4](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:dc1a0bebd3163e6a1c9bd6f1907ca6ca7a8bbe8460b24f47ebfb3569d9436ded Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internally designated funds shall be reported separately from externally restricted funds either on the face of the balance sheet or in the notes to the financial statements. #### Cash and Cash Equivalents ##### [210-954-45-5](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:f8393832c427ed14c7231363c9aa63d33714e37bf68d86eb848df7d330e8f360 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash and claims to cash that meet any of the following conditions shall be reported separately and shall be excluded from current assets: 1. a They are restricted as to withdrawal or use for other than current operations. 2. b They are designated for expenditure in the acquisition or construction of noncurrent assets. 3. c They are required to be segregated for the liquidation of long-term debts. 4. d They are limited to use for long-term purposes by a [donor-imposed restriction](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions."). ##### [210-954-45-6](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:ec31aee715553edc3f5619bb9d25a5e7142a48a44b72f1ab0ea39bee966cf24b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For fiduciary purposes, separate checking or savings accounts may be maintained for donations with donor restrictions. However, unless required by paragraph [954-210-45-5](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-5), such accounts are not reported on a line separate from other cash and cash equivalents because donor restrictions generally relate to limitations on the use of net assets rather than on the use of specific assets. A columnar presentation that highlights the two classes of net assets (that is, without donor restrictions and with donor restrictions) is not precluded if the totals for the reporting entity as a whole are displayed. ##### [210-954-45-7](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:14.336Z to 2026-09-09T23:02:14.336Z Record version: sha256:3a781f90030f02f4d129933c6911c1653d7afb403903f87ed0d80c9f5f6d3678 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). Source downloaded (UTC): 2026-09-09T23:02:18.022Z to 2026-09-09T23:02:18.022Z Record version: sha256:8be596f9ffb4a3f28fa2114672ca5d637dd3145b8be545515d2e88c0c68213c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/954/#50-disclosure) SEC content: no ##### [210-954-50-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:18.022Z to 2026-09-09T23:02:18.022Z Record version: sha256:4a5fd06374281107806419fea88e175b5cb2cb035f14639c91167e3308a4a574 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). #### Assets Limited as to Use ##### [210-954-50-2](https://asc.understandingaccounting.org/asc/210/954/#210-954-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:18.022Z to 2026-09-09T23:02:18.022Z Record version: sha256:fbe8d61fe3c2d6d13c6d3d12161ddc605981947d35f7152401c423a74491d77e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When internally designated funds are reported separately from externally restricted funds in accordance with paragraph [954-210-45-4](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-4), if the form of the assets is not evident from the description on the balance sheet, the form of the assets shall be disclosed in the notes to the financial statements. Source downloaded (UTC): 2026-09-09T23:02:23.603Z to 2026-09-09T23:02:44.054Z Record version: sha256:fba8d495fcc0b8cc22573656190f2d808bf2e85b8c5d9b2f60e7a87cb2820759 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958: Balance Sheet — Not-for-Profit Entities ### Machine-generated study aids ```json { "summary": "This subtopic governs the not-for-profit statement of financial position (the NFP equivalent of a balance sheet). At a minimum the statement must report totals for assets, liabilities, net assets, net assets with donor restrictions, and net assets without donor restrictions, focusing on the entity as a whole (958-210-45-1). It also requires liquidity-related presentation and disclosure, including qualitative information about how the NFP manages liquid resources and quantitative information about financial assets available for general expenditures within one year (958-210-50-1A).", "key_points": [ "A statement of financial position must focus on the NFP as a whole and report total assets, total liabilities, total net assets, total net assets with donor restrictions, and total net assets without donor restrictions (958-210-45-1).", "Interfund receivables and payables are not entity assets or liabilities; if displayed, they must be labeled and arranged so their amounts are eliminated from total assets and liabilities (958-210-45-2); no particular statement format is required or precluded (958-210-45-3).", "Assets and liabilities generally should be aggregated into reasonably homogeneous groups reflecting donor-imposed and other contractual restrictions to convey liquidity and financial flexibility (958-210-45-4 through 45-5).", "Restrictions generally apply to net assets rather than specific assets, so assets need not be disaggregated by restriction; however, cash or other assets received with donor restrictions limiting use to long-term purposes may not be classified with unrestricted assets available for current use (958-210-45-6).", "Limitations on cash and cash equivalents, contractual limitations on particular assets, and quantitative information on availability of financial assets for general expenditures within one year must appear on the face of the statement or in the notes (958-210-45-7).", "Additional liquidity information may be provided by sequencing assets/liabilities by nearness to cash or maturity, using a classified current/noncurrent format, or note disclosure (958-210-45-8); health care NFPs must use a classified format under 954-210-45-1.", "An NFP must disclose qualitative information on how it manages liquid resources for general expenditures within one year and quantitative information on availability of financial assets, considering nature, external donor/law/contract limits, and internal board limits (958-210-50-1A); board designations, including board-designated endowment funds, must be disclosed as to amounts and purposes (958-210-45-11)." ], "categories": [ "Presentation", "Disclosure", "Not-for-profit", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "Exam questions turn on the two-class net asset model (with/without donor restrictions, after ASU 2016-14 eliminated the old three-class temporarily/permanently restricted split) and the required liquidity/availability disclosures. A common misunderstanding is thinking donor restrictions attach to specific assets — they attach to net assets, though long-term-purpose restricted cash still cannot be lumped with cash available for current use.", "related_topics": [ "958-205", "958-210", "210-10", "954-210", "958-450", "958-10" ], "key_concepts": [ "statement of financial position", "net assets with donor restrictions", "net assets without donor restrictions", "liquidity and availability disclosure", "board-designated endowment", "donor-imposed restrictions", "interfund items", "classified balance sheet" ] } ``` Source downloaded (UTC): 2026-09-09T23:02:23.603Z to 2026-09-09T23:02:23.603Z Record version: sha256:89fffd4e9ee273783bbc3e9dedc99ad746ef1f9ea185979e65a3179dafa1e455 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/210/958/#00-status) SEC content: no ##### [210-958-00-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:23.603Z to 2026-09-09T23:02:23.603Z Record version: sha256:fa11f3a76829329135357f03df8ddc54bc1f983fbce32645c964d68bdff2f49d 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
Board-Designated Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Board-Designated Net AssetsAddedAccounting Standards Update No. 2016-1408/18/2016
Designated Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Designated Net AssetsAddedAccounting Standards Update No. 2014-0603/14/2014
Donor-Imposed RestrictionAmendedAccounting Standards Update No. 2016-1408/18/2016
Donor-Restricted Endowment FundAddedAccounting Standards Update No. 2016-1408/18/2016
Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Funds Functioning as EndowmentAddedAccounting Standards Update No. 2016-1408/18/2016
Net AssetsAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets with Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Permanent EndowmentSupersededAccounting Standards Update No. 2016-1408/18/2016
Permanently Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Temporarily Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Temporary RestrictionSupersededAccounting Standards Update No. 2016-1408/18/2016
Term EndowmentAddedAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
958-210-45-1AmendedAccounting Standards Update No. 2016-1408/18/2016
958-210-45-4AmendedAccounting Standards Update No. 2016-1408/18/2016
958-210-45-5AAddedAccounting Standards Update No. 2016-1408/18/2016
958-210-45-6 through 45-11
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-210-45-7AmendedMaintenance Update 2020-18 (PDF)11/25/2020
958-210-45-8AmendedMaintenance Update 2020-18 (PDF)11/25/2020
958-210-45-8AmendedAccounting Standards Update No. 2012-0410/01/2012
958-210-45-11AmendedAccounting Standards Update No. 2014-0603/14/2014
958-210-45-12SupersededAccounting Standards Update No. 2016-1408/18/2016
958-210-45-12AddedAccounting Standards Update No. 2016-0101/05/2016
958-210-50-1 through 50-3
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-210-50-1AAddedAccounting Standards Update No. 2016-1408/18/2016
958-210-55-2 through 55-4
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-210-55-5 through 55-8
AddedAccounting Standards Update No. 2016-1408/18/2016
Source downloaded (UTC): 2026-09-09T23:02:26.497Z to 2026-09-09T23:02:26.497Z Record version: sha256:b9b80c00110e27bc58667e6d8bd800c2eb6ff8fa6231d3c1a3c5b039308c5e2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/958/#05-overview-and-background) SEC content: no ##### [210-958-05-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:26.497Z to 2026-09-09T23:02:26.497Z Record version: sha256:cad5cc473b45fb38a2bc05dde05523fc0c186e1f207392a2d8fb235aa50772e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance addressing the statement of financial position for [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs). A statement of financial position is the financial statement of an NFP that corresponds to the balance sheet of a business entity. ##### [210-958-05-2](https://asc.understandingaccounting.org/asc/210/958/#210-958-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:26.497Z to 2026-09-09T23:02:26.497Z Record version: sha256:8f16707d1b114b8333f9b2c6aadf5482735f6b5c5ce15e7a2c95d836de5c55e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The primary purpose of a statement of financial position is to provide relevant information about an NFP's assets, liabilities, and net assets and about their relationships to each other at a moment in time. The information provided in a statement of financial position, used with related disclosures and information in other financial statements, helps donors, members, creditors, and others to assess the following: 1. a The NFP's ability to continue to provide services 2. b The NFP's [liquidity](https://asc.understandingaccounting.org/glossary/l/#liquidity "An asset's or liability's nearness to cash. Donor-imposed restrictions may influence the liquidity or cash flow patterns of certain assets. For example, a donor stipulation that donated cash be used to acquire land and buildings limits an entity's ability to take effective actions to respond to unexpected opportunities or needs, such as emergency disaster relief. On the other hand, some donor-imposed restrictions have little or no influence on cash flow patterns or an entity's financial flexibility. For example, a gift of cash with a donor stipulation that it be used for emergency-relief efforts has a negligible impact on an entity if emergency relief is one of its major ongoing programs."), [financial flexibility](https://asc.understandingaccounting.org/glossary/f/#financial-flexibility "The ability of an entity to take effective actions to alter amounts and timing of cash flows so it can respond to unexpected needs and opportunities."), ability to meet obligations, and needs for external financing. Source downloaded (UTC): 2026-09-09T23:02:28.432Z to 2026-09-09T23:02:28.432Z Record version: sha256:0375f0c3202591b8f2e9539207998bb1d553f0f24e9622958367b22720755908 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/210/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [210-958-15-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:28.432Z to 2026-09-09T23:02:28.432Z Record version: sha256:07962f21bddc6f5b367042105ab5f61f48c0a1c76b81d80c61a0244915aa76c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15. It discusses how to report assets, liabilities, and net assets in financial statements; however, it does not specify when to recognize or how to measure those elements. Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:30e36b51a2ff47f2ac1cce5f7d7492922b8760f2f1c76fdf464712e1efea01f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/210/958/#45-other-presentation-matters) SEC content: no #### Totals and Format ##### [210-958-45-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:97930922d63643b153b5fc77374b1fa146e273f84936f37a7175fe940d23d0cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of financial position shall focus on the [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) as a whole and shall report all of the following amounts: 1. a Total assets 2. b Total liabilities 3. c Total net assets 4. d Total [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") 5. e Total [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") 6. f [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [210-958-45-2](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:584b98423606167abe5803ae6075664d0af70307df80b7b8ec8922f3053699c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not preclude display of interfund items in a statement of financial position; rather, its requirement to display total assets and liabilities results in certain practical limits on how interfund items are displayed in a financial statement. For example, because receivables and payables between fund groups are not entity assets or liabilities, a statement of financial position shall clearly label and arrange those interfund items to eliminate their amounts when displaying total assets or liabilities. ##### [210-958-45-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:f0a1d7544dcd2b6f4f4917b4abde270fbf9cda0ef42c81fb49afff7e38b7b452 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not emphasize or preclude specific statement formats. It permits a left-to-right or top-to-bottom balanced format as well as single-column, multicolumn, single-page, or multipage formats. #### Classification of Assets and Liabilities ##### [210-958-45-4](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:b326dcc0a17a6aa12d53c4bf06669ce742dbbfdc6a8deec59a5dd303c96be703 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of financial position, including accompanying notes to financial statements, provides relevant information about [liquidity](https://asc.understandingaccounting.org/glossary/l/#liquidity "An asset's or liability's nearness to cash. Donor-imposed restrictions may influence the liquidity or cash flow patterns of certain assets. For example, a donor stipulation that donated cash be used to acquire land and buildings limits an entity's ability to take effective actions to respond to unexpected opportunities or needs, such as emergency disaster relief. On the other hand, some donor-imposed restrictions have little or no influence on cash flow patterns or an entity's financial flexibility. For example, a gift of cash with a donor stipulation that it be used for emergency-relief efforts has a negligible impact on an entity if emergency relief is one of its major ongoing programs."), [financial flexibility](https://asc.understandingaccounting.org/glossary/f/#financial-flexibility "The ability of an entity to take effective actions to alter amounts and timing of cash flows so it can respond to unexpected needs and opportunities."), and the interrelationship of an NFP's assets and liabilities. That information generally is provided by aggregating assets and liabilities that possess similar characteristics into reasonably homogeneous groups that include the effects of [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") as well as other contractual restrictions. ##### [210-958-45-5](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:828133c020fa583877346efba9be46f37574e9623ab17c331a9d32ec6b5abf53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Classifying and aggregating items with similar characteristics into reasonably homogeneous groups and separating items with differing characteristics is a basic reporting practice that increases the usefulness of information. For example, entities generally report individual items of assets in homogeneous groups, such as cash and cash equivalents; accounts and notes receivable from patients, students, members, and other recipients of services; inventories of materials and supplies; deposits and prepayments for rent, insurance, and other services; marketable securities and other investment assets held for long-term purposes; and land, buildings, equipment, and other long-lived assets used to provide goods and services. Likewise, cash collections of receivables from patients, students, or other service recipients may differ significantly in continuity, stability, and risk from cash collections of pledges made to a special-purpose fundraising campaign. Classifying and reporting those receivables and collections of receivables as separate groups of assets and of cash inflows facilitates financial statement analysis aimed at objectives such as predicting amounts, timing, and uncertainty of future cash flows. ##### [210-958-45-5A](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:f8fc1141612eeda934ab0a82db7dfa399ec3c0551cc1512187c1af4eeaa0df43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As illustrated in paragraph [958-205-55-7](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-7), cash and cash equivalents of permanent endowment funds held temporarily until suitable long-term investment opportunities are identified may be included in the classification long-term investments. Likewise, cash held temporarily by a custodian for investment purposes may be included as part of investments in a statement of financial position rather than as cash. ##### [210-958-45-6](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:1abfdb6d5a876700e53c0da5b7c28699340942692091c15dfe41bfec71b81731 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets may be restricted by donors. For example, land could be restricted to use as a public park. Generally, however, restrictions apply to net assets, not to specific assets. Assets need not be disaggregated on the basis of the presence of donor-imposed restrictions on their use; for example, cash available for current use and without donor restrictions need not be reported separately from cash received with donor-imposed restrictions that is also available for current use. However, cash or other assets received with a donor-imposed restriction that limits their use to long-term purposes shall not be classified with cash or other assets that are without donor restrictions and are available for current use. The kind of asset whose use is limited either by a donor-imposed restriction or by governing board designations shall be described in the notes to the financial statements if the nature of the restriction or designation (that is, amount and purpose) is not clear from the description on the face of the statement of financial position. ##### [210-958-45-7](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:448fbd5e2f51bbe3e10b26682179e71accc37f60f8dcfec459e6925c6ddd665f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be displayed either on the face of the statement of financial position or in the notes to financial statements, unless otherwise required on the face of the statement of financial position: 1. a Relevant information about the nature and amount of limitations on the use of cash and cash equivalents (such as cash held on deposit as a compensating balance) (see paragraph [958-210-50-3(b)](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-3)).  2. b Contractual limitations on the use of particular assets. These include, for example, restricted cash or other assets set aside under debt agreements, assets set aside under self-insurance funding arrangements, assets set aside under collateral arrangements, or assets set aside to satisfy reserve requirements that states may impose under charitable gift annuity agreements (see paragraph [958-210-50-3(c)](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-3)).  3. c Quantitative information, and additional qualitative information in the notes as necessary, about the availability of an NFP's financial assets at the balance sheet date to meet cash needs for general expenditures within one year of the balance sheet date (see paragraph [958-210-50-1A(b)](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-1A)). ##### [210-958-45-8](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:6d5b9955eb496351f9085c20dd2230f93de8775086c9b3e1305d81d1868c9047 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Additional information about liquidity shall be provided by any of the following: 1. a Sequencing assets according to their nearness of conversion to cash and sequencing liabilities according to the nearness of their maturity and resulting use of cash 2. b Classifying assets and liabilities as current and noncurrent, as defined by Subtopic 210-10 (required by paragraph [954-210-45-1](https://asc.understandingaccounting.org/asc/210/954/#210-954-45-1) for statements of financial position prepared by not-for-profit, business-oriented health care entities) 3. c Disclosing in notes to financial statements any additional relevant information about the liquidity or maturity of assets and liabilities, including restrictions on the use of particular assets (see paragraph [958-210-50-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-1)). #### Classification of Net Assets ##### [210-958-45-9](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:ce8385b3ea37ee761180ac5a7725232342642a2edd6f80e7358c9e6865eaa8bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts for each of the two classes of net assets—with donor restrictions and without donor restrictions—are based on the existence or absence of [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions."). Information about the nature and amounts of different types of donor-imposed restrictions shall be provided either by reporting their amounts on the face of the statement of financial position or by including relevant details in notes to financial statements. Additionally, separate line items may be reported within [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") or in notes to financial statements to distinguish between various types of donor-imposed restrictions, such as the following examples: 1. a Assets, such as land or works of art, donated with stipulations that they be used for a specified purpose, be preserved, and not be sold. 2. b Assets donated with stipulations that they be invested to provide a permanent source of income. These result from gifts and bequests that create a donor-restricted endowment that is perpetual in nature. 3. c Support of particular operating activities. 4. d Investment for a specified term. 5. e Use in a specified future period. 6. f Acquisition of long-lived assets. ##### [210-958-45-10](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:c5bb4d6cd596ce3edb56452da62aa638d7321cc3904592315c97e3b62ff48a64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [donor-imposed restriction](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") may require that resources be used in a later period or after a specified date (time restrictions), or that resources be used for a specified purpose (purpose restrictions), or both. For example, gifts of cash and other assets with stipulations that they be invested to provide a source of income for a specified term and that the income be used for a specified purpose are both time and purpose restricted. Those gifts often are called [term endowments](https://asc.understandingaccounting.org/glossary/t/#term-endowment "An endowment fund established to provide income for a specified period. See Endowment Fund."). ##### [210-958-45-11](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:c9051fa1447353bd180e22ff8d7b01169fc80aa6deb29d7fecd9177e5ab781d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about self-imposed limits also is useful, including information about voluntary resolutions by the governing board of an entity, such as resolutions to designate a portion of its [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") to function as an endowment (sometimes called a [board-designated endowment fund](https://asc.understandingaccounting.org/glossary/b/#board-designated-endowment-fund "An endowment fund created by a not-for-profit entity's (NFP's) governing board by designating a portion of its net assets without donor restrictions to be invested to provide income for a long but not necessarily specified period (sometimes called funds functioning as endowment or quasi-endowment funds). In rare circumstances, a board-designated endowment fund also can include a portion of net assets with donor restrictions. For example, if an NFP is unable to spend donor-restricted contributions in the near term, then the board sometimes considers the long-term investment of these funds. See Endowment Fund.")) or to designate a portion for a specific future expenditure (called [board-designated net assets](https://asc.understandingaccounting.org/glossary/b/#board-designated-net-assets "Net assets without donor restrictions subject to self-imposed limits by action of the governing board. Board-designated net assets may be earmarked for future programs, investment, contingencies, purchase or construction of fixed assets, or other uses. Some governing boards may delegate designation decisions to internal management. Such designations are considered to be included in board-designated net assets.")). Information about the amounts and purposes of board designations of net assets without donor restrictions shall be provided in notes to or on the face of financial statements in accordance with paragraph [958-210-50-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-3). (See Example 1 \[paragraph [958-210-55-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-3)\] for an illustration of this guidance.) ##### [210-958-45-12](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:33.083Z to 2026-09-09T23:02:33.083Z Record version: sha256:d7835fe0f2d17fea670cd52a4e3652f5ad03d8d2ed9b0ebf56490f3301f92bd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). Source downloaded (UTC): 2026-09-09T23:02:36.104Z to 2026-09-09T23:02:36.104Z Record version: sha256:2b06b7a937aded88e7923594fd1e53b1499d33a59521f356fb9f31dad4e6da03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/210/958/#50-disclosure) SEC content: no ##### [210-958-50-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:36.104Z to 2026-09-09T23:02:36.104Z Record version: sha256:e4903e723988731efc9ff02a67c4572ae4beee225579a6bd51e3c3a67515c920 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) shall disclose in notes to financial statements relevant information about the [liquidity](https://asc.understandingaccounting.org/glossary/l/#liquidity "An asset's or liability's nearness to cash. Donor-imposed restrictions may influence the liquidity or cash flow patterns of certain assets. For example, a donor stipulation that donated cash be used to acquire land and buildings limits an entity's ability to take effective actions to respond to unexpected opportunities or needs, such as emergency disaster relief. On the other hand, some donor-imposed restrictions have little or no influence on cash flow patterns or an entity's financial flexibility. For example, a gift of cash with a donor stipulation that it be used for emergency-relief efforts has a negligible impact on an entity if emergency relief is one of its major ongoing programs.") or maturity of assets and liabilities, including restrictions and self-imposed limits on the use of particular items, in addition to information provided on the face of the statement of financial position, if shown, in accordance with paragraph [958-210-45-8](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-8). Specific disclosure requirements to meet that objective include the requirements in this Subtopic. ##### [210-958-50-1A](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:36.104Z to 2026-09-09T23:02:36.104Z Record version: sha256:a41554fac017ca37569578b0b65c7b4153d220c967d6cf87620523375286d884 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall disclose the following: 1. a Qualitative information in the notes to financial statements that is useful in assessing an entity's liquidity and that communicates how an NFP manages its liquid resources available to meet cash needs for general expenditures within one year of the date of the statement of financial position 2. b Quantitative information either on the face of the statement of financial position or in the notes, and additional qualitative information in the notes as necessary, that communicates the availability of an NFP's financial assets at the date of the statement of financial position to meet cash needs for general expenditures within one year of the date of the statement of financial position (see paragraph [958-210-45-7(c)](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-7)). Availability of a financial asset may be affected by: 1. 1 Its nature 2. 2 External limits imposed by donors, laws, and contracts with others 3. 3 Internal limits imposed by governing board decisions. See example note disclosures in paragraphs [958-210-55-5 through 55-8](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-5) and [958-205-55-21](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-21). ##### [210-958-50-2](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:36.104Z to 2026-09-09T23:02:36.104Z Record version: sha256:ed2a20fe0b8c4006f37c586c78c1b9749aa864ad72afc0cbfc4ccc4377f8ac6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall disclose the following, if applicable, in the notes to financial statements and may include that information in qualitative disclosures on the availability of an NFP's financial assets in accordance with paragraph [958-210-50-1A(b)](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-1A): 1. a Unusual circumstances, such as special borrowing arrangements, requirements imposed by resource providers that cash be held in separate accounts, and known significant liquidity problems 2. b The fact that the NFP has not maintained appropriate amounts of cash and cash equivalents to comply with [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") (see paragraph [958-450-50-3](https://asc.understandingaccounting.org/asc/450/958/#450-958-50-3)) 3. c Information about significant limits resulting from contractual agreements with suppliers, creditors, and others, including the existence of loan covenants. ##### [210-958-50-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:36.104Z to 2026-09-09T23:02:36.104Z Record version: sha256:b61ec982d501dc1461b4014fb7bc536431b94a68dd13c1d9f14d4c64f973a7c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 958-210-45 discusses the following items that are required to be included in the notes to financial statements if they are not provided on the face of the statement of financial position: 1. a A description of the kind of asset whose use is limited (see paragraph [958-210-45-6](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-6)) 2. b Information about the nature and amount of limitations on the use of cash and cash equivalents (see paragraph [958-210-45-7(a)](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-7)) 3. c Contractual limitations on the use of particular assets (see paragraph [958-210-45-7(b)](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-7)) 4. d Information about the nature and amounts of different types of restrictions that affect how and when, if ever, the resources (net assets) can be used (see paragraph [958-210-45-9](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-9)) 5. e [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 6. f Information about additional limitations placed on net assets, such as information about the amounts and purposes of board designations of [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") required in accordance with paragraph [958-210-45-11](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-11). Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:b3c01ee5820dc40146f4b1e4448bd7d55050520693fbc0ee2f78b78f86a2ff9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/210/958/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [210-958-55-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:20e03436e76ed035c86fdd27c29291957ba158d5f07341a3d716c274e6d2640d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used in the presentation of a statement of financial position by a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP). ##### [210-958-55-2](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:7fca8dd507cfee5cf0be0a24ed59fb7c04df8d1004a20bc255e14c52b534b4d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the following Examples, guidance in paragraph [958-205-55-7](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-7) illustrates a statement of financial position and paragraph [958-205-55-5](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-5) provides the facts and transactions that are reflected in that illustrative statement. ##### [210-958-55-3](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:7c06b7287e673d56607028ecdf025e2454e6d5e0af3324b82b6d838d5d75e0e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As illustrated in paragraph [958-205-55-9](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-9), this Subtopic encourages the use of the terms [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") and [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."); however, other labels exist. For example, equity may be used for net assets, and other or not donor-restricted may be used with care to distinguish net assets with donor restrictions from net assets without donor restrictions. For example, the net asset section might be arranged as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-215365E5-73EA-4880-BF24-FE0056D42D59-low.gif) With donor restrictions: Perpetual in nature $XXX Purpose restricted XXX "Time-restricted only, for periods after 20X1" XXX XXX Without donor restrictions: Designated by the Board for \[ purpose\] $XXX Undesignated XXX XXX Net assets $XXX ##### [210-958-55-4](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:25dfce41875f00c4f0711259f621bfbfaf47ce4d42089138aa4b6aa12de2d43b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At a minimum, paragraph [958-210-45-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-45-1) requires that the amounts for each of the two classes of net assets—net assets with donor restrictions and net assets without donor restrictions—and the total of net assets be reported in a statement of financial position. The captions used to describe those amounts must correspond with their meanings. ##### [210-958-55-5](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:dc8a75da3685990087a70e0876356aba2c719e5bffaf7788c1f8a0e431aae40a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates disclosures on liquidity and availability of an NFP's financial assets as required by paragraph [958-210-50-1A](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-1A). It provides two possible methods to meet the disclosure requirements, but there may be other ways for an NFP to meet the requirements. In this Example, Not-for-Profit Entity A (NFP A) has combined the disclosures about availability of its financial assets and liquidity into one note; however, these disclosures also may be presented in separate notes. Note G in paragraph [958-205-55-21](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-21) provides an additional example of the disclosures on liquidity and availability of an NFP's financial assets. ##### [210-958-55-6](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:04b9f590261ddee29d623fb0b4ace63fd4a0a87503ab9dc1d822853ff1e6cba5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is a statement of financial position and example disclosure for NFP A. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D141D425-DA0C-49F0-95ED-ABAA6D97D506-low.gif) Not-for-Profit Entity A Statements of Financial Position " June 30, 20X1" (in thousands) 20X1 Assets: Cash " $75,000 " Contributions receivable " 20,000 " Prepaid expenses " 5,000 " Short-term investments " 300,000 " Total assets " $400,000 " Liabilities: Accounts payable " $80,000 " Total liabilities " 80,000 " Net assets: Without donor restrictions " 300,000 " With donor restrictions " 20,000 " Total net assets " 320,000 " Total liabilities and net assets " $400,000 " ##### [210-958-55-7](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:e6fcd5674a0b27b0601b426d54e95e72a6411704ca4d7d065c52c830435d6a34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A has $395,000 of financial assets available within 1 year of the balance sheet date to meet cash needs for general expenditure consisting of cash of $75,000, contributions receivable of $20,000, and short-term investments of $300,000. None of the financial assets are subject to donor or other contractual restrictions that make them unavailable for general expenditure within one year of the balance sheet date. The contributions receivable are subject to implied time restrictions but are expected to be collected within one year. NFP A has a goal to maintain financial assets, which consist of cash and short-term investments, on hand to meet 60 days of normal operating expenses, which are, on average, approximately $275,000. NFP A has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due. In addition, as part of its liquidity management, NFP A invests cash in excess of daily requirements in various short-term investments, including certificate of deposits and short-term treasury instruments. As more fully described in Note XX, NFP A also has committed lines of credit in the amount of $20,000, which it could draw upon in the event of an unanticipated liquidity need. ##### [210-958-55-8](https://asc.understandingaccounting.org/asc/210/958/#210-958-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:40.115Z to 2026-09-09T23:02:40.115Z Record version: sha256:25f13cb249165ec9f9c0ae1ab8867f56ea395b13a04da8029ed24b254df379c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A presents a classified statement of financial position with additional qualitative information about availability of resources and liquidity in Note T. - ![](https://asc.understandingaccounting.org/asc-img/GUID-EE85A81C-3965-4004-95D7-DD329E5FB6F6-low.gif) Not-for-Profit Entity A Statements of Financial Position " June 30, 20X1 and 20X0" (in thousands) 20X1 20X0 Assets: Current assets Cash and cash equivalents " $4,575 " " $4,960 " Accounts and interest receivable " 2,130 " " 1,670 " Inventories and prepaid expenses 610 " 1,000 " Contributions receivable " 1,825 " " 1,200 " Short-term investments " 1,400 " " 1,000 " Long-term investments appropriated for current use " 10,804 " " 10,075 " Total current assets " 21,344 " " 19,905 " Noncurrent assets Contributions receivable " 1,200 " " 1,500 " "Assets restricted to investment in land, buildings, and equipment" " 5,210 " " 4,560 " "Land, buildings, and equipment" " 61,700 " " 63,590 " "Long-term investments, net of amounts appropriated" " 207,266 " " 193,425 " Total noncurrent assets " 275,376 " " 263,075 " Total assets " $296,720 " " $282,980 " Liabilities and net assets: Current liabilities Accounts payable " $2,570 " " $1,050 " Refundable advance 550 Grants payable 550 600 Notes payable 140 Annuity trust obligations 985 " 1,050 " Total current liabilities " 4,105 " " 3,390 " Noncurrent liabilities Refundable advance 100 Grants payable 325 700 Notes payable " 1,000 " Annuity obligations 700 650 Long-term debt " 5,500 " " 6,500 " Total noncurrent liabilities " 6,525 " " 8,950 " Total liabilities " 10,630 " " 12,340 " Net assets: Without donor restrictions "92,677" "73,619" With donor restrictions "193,413" "197,021" Total net assets "286,090" "270,640" Total liabilities and net assets " $296,720 " " $282,980 " - Note T - NFP A's financial assets available within one year of the balance sheet date for general expenditure are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D98D64C7-A95C-4D25-8746-FF87C5B7E612-low.gif) Cash and cash equivalents " $4,575 " Accounts and interest receivable " 2,130 " Contributions receivable " 1,825 " Short-term investments " 1,400 " Other investments appropriated for current use " 10,804 " " $20,734 " - NFP A's endowment funds consist of donor-restricted endowments and a quasi-endowment. Income from donor-restricted endowments is restricted for specific purposes and, therefore, is not available for general expenditure. As described in Note Y, the quasi-endowment has a spending rate of 5 percent. $1.65 million of appropriations from the quasi-endowment will be available within the next 12 months. - As part of NFP A's liquidity management, it has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due. In addition, NFP A invests cash in excess of daily requirements in short-term investments. To help manage unanticipated liquidity needs, NFP A has committed lines of credit in the amount of $20 million, which it could draw upon. Additionally, NFP A has a quasi-endowment of $33 million. Although NFP A does not intend to spend from its quasi-endowment other than amounts appropriated for general expenditure as part of its annual budget approval and appropriation process, amounts from its quasi-endowment could be made available if necessary. However, both the quasi-endowment and donor-restricted endowments contain investments with lock-up provisions that would reduce the total investments that could be made available (see Note X for disclosures about investments). Source downloaded (UTC): 2026-09-09T23:02:44.054Z to 2026-09-09T23:02:44.054Z Record version: sha256:17f836fd5a7a54e2c07496009bb75a6d986a275d30a6492888624fe97f991dd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-958-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/210/958/#60-relationships) SEC content: no #### Balance Sheet ##### [210-958-60-1](https://asc.understandingaccounting.org/asc/210/958/#210-958-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:44.054Z to 2026-09-09T23:02:44.054Z Record version: sha256:974ca4ec65d134c528480590ffc110add122b106df70375cd7879bb3533b767f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For classification of current assets and current liabilities, see Section 210-10-45. ##### [210-958-60-2](https://asc.understandingaccounting.org/asc/210/958/#210-958-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:02:44.054Z to 2026-09-09T23:02:44.054Z Record version: sha256:9b628af42e1490607de8a497db904ac1512b36a77f081e12d1b5c81229fabced Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For exclusion from current assets of funds that are clearly to be used in the near future for the liquidation of long-term debts, payments to sinking funds, or for similar purposes, including those restricted for those purposes, see paragraph [210-10-45-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-4).