# ASC 220-10: Income Statement—Reporting Comprehensive Income — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/220/10/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:03:08.647Z to 2026-09-09T23:04:07.668Z Record version: sha256:d96b157966b9aff78953e6636cbbdd47a6a99f49a66e2aa6e38cc1acfd80ff76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10: Income Statement—Reporting Comprehensive Income — Overall ### Machine-generated study aids ```json { "summary": "ASC 220-10 governs how an entity presents comprehensive income — net income plus other comprehensive income (OCI) — in a full set of general-purpose financial statements. Comprehensive income must be reported either in a single continuous statement or in two separate but consecutive statements (net income first, then OCI beginning with net income), with totals for net income, OCI, and comprehensive income (220-10-45-1 through 45-1B). The Subtopic addresses only presentation and disclosure; it does not specify when to recognize or how to measure the items making up comprehensive income (220-10-25-1; 220-10-30-1).", "key_points": [ "Comprehensive income measures all changes in equity from recognized transactions and other economic events of the period other than transactions with owners in their capacity as owners (220-10-10-1); investments by and distributions to owners and items charged directly to paid-in capital or retained earnings are not items of comprehensive income (220-10-45-10B).", "An entity must report comprehensive income in a single continuous statement (two sections: net income and OCI) or in two separate but consecutive statements, the second beginning with net income (220-10-45-1 through 45-1B); the terms 'comprehensive income' and 'other comprehensive income' need not be used (220-10-45-4).", "Items of OCI are enumerated in 220-10-45-10A and include foreign currency translation adjustments, cash flow hedge gains and losses, unrealized holding gains and losses on available-for-sale debt securities, pension/OPEB gains, losses, prior service costs and transition amounts, and instrument-specific credit risk changes on fair value option liabilities; components are classified based on their nature (220-10-45-1C).", "An entity with no items of OCI in any period presented, and an NFP following Subtopic 958-205, are outside the Topic's scope (220-10-15-3).", "OCI components may be presented net of tax or before tax with one aggregate tax amount, but the tax expense or benefit allocated to each OCI component (including reclassification adjustments) must be shown in the statement or disclosed in the notes (220-10-45-11; 45-12; 50-4), and the policy for releasing income tax effects from AOCI must be disclosed (220-10-50-1).", "The total of OCI for the period is transferred to a separate equity component, typically labeled accumulated other comprehensive income, and the changes in accumulated balances for each OCI component—separating current-period reclassifications from other current-period OCI—must be presented on the face of the statements or in the notes (220-10-45-14; 45-14A; 50-5).", "Reclassification adjustments must be determined for each OCI component to avoid double counting amounts included in both net income and OCI (220-10-45-15; 45-16), and significant amounts reclassified out of AOCI must be reported together in one place—parenthetically on the face of the statement of net income if all such amounts are reclassified to net income in their entirety in the same period (220-10-45-17; 45-17A), otherwise in a tabular note (220-10-50-6)." ], "categories": [ "Presentation", "Disclosure", "Financial statement presentation", "Income taxes" ], "audience_level": "intermediate", "student_note": "This is the presentation backbone for OCI: know the two permitted formats, the list of OCI items in 220-10-45-10A, and the reclassification-adjustment mechanics. The most common misunderstanding is thinking ASC 220 tells you when to recognize or how to measure OCI items — it does not; the source Topics (320/326, 715, 815, 830, 825) do, and a separate 'statement of comprehensive income' is no longer permitted to be a non-consecutive or equity-statement presentation.", "related_topics": [ "220-20", "220-30", "220-40", "270-10", "810-10", "958-205" ], "key_concepts": [ "comprehensive income", "other comprehensive income", "accumulated other comprehensive income", "reclassification adjustment", "single continuous statement", "two consecutive statements", "tax effects allocated to oci components", "nonowner changes in equity" ] } ``` Source downloaded (UTC): 2026-09-09T23:03:08.647Z to 2026-09-09T23:03:08.647Z Record version: sha256:cc1646956dbe813eb8edcf51f137c02e0b1561fe1f21b4c4608a7f8c5b6e11b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/10/#00-status) SEC content: no ##### [220-10-00-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:08.647Z to 2026-09-09T23:03:08.647Z Record version: sha256:33c7067d3d1681d9d86187257c6826ed35d87ee652bdfe098d50d0ec75a7567b 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
Available-for-Sale SecuritiesAddedAccounting Standards Update No. 2016-1306/16/2016
Comprehensive IncomeAmendedAccounting Standards Update No. 2011-0506/16/2011
Condensed StatementsAddedAccounting Standards Update No. 2025-1112/08/2025
Conduit Debt SecurityAddedMaintenance Update 2014-20 (PDF)09/29/2014
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Debt Security (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Holding Gain or LossAddedAccounting Standards Update No. 2016-1306/16/2016
Market Risk BenefitAddedAccounting Standards Update No. 2018-1208/15/2018
Nonpublic Entity (Def. 1)AmendedMaintenance Update 2014-20 (PDF)09/29/2014
Nonpublic EntityAddedAccounting Standards Update No. 2011-0506/16/2011
220-10-05-1AmendedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-05-1AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-05-2 through 05-5
AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-05-6AddedAccounting Standards Update No. 2024-0311/04/2024
220-10-10-2AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-15-1AmendedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-15-2AmendedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-15-2AmendedAccounting Standards Update No. 2012-0410/01/2012
220-10-15-3AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-15-4SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-15-5AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-25-1AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-30-1AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-35-1AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-1AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-1A through 45-1C
AddedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-1BAmendedAccounting Standards Update No. 2012-0410/01/2012
220-10-45-2SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-45-3SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-45-4AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-5AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-6SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-45-7AmendedAccounting Standards Update No. 2015-0101/09/2015
220-10-45-7AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-7AAddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-45-8 through 45-10SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-45-10AAmendedAccounting Standards Update No. 2018-1208/15/2018
220-10-45-10AAmendedAccounting Standards Update No. 2017-1208/28/2017
220-10-45-10AAmendedAccounting Standards Update No. 2016-1306/16/2016
220-10-45-10AAmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-45-10AAddedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-10BAmendedAccounting Standards Update No. 2018-0907/16/2018
220-10-45-10BAddedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-11AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-12AmendedAccounting Standards Update No. 2020-1010/29/2020
220-10-45-12AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-12AAddedAccounting Standards Update No. 2018-0202/14/2018
220-10-45-13SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-45-14AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-14AAmendedAccounting Standards Update No. 2020-1010/29/2020
220-10-45-14AAmendedAccounting Standards Update No. 2013-0202/05/2013
220-10-45-14AAddedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-15AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-16AmendedMaintenance Update 2018-12 (PDF)09/10/2018
220-10-45-16AmendedAccounting Standards Update No. 2013-0503/04/2013
220-10-45-16AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-16ASupersededAccounting Standards Update No. 2016-1306/16/2016
220-10-45-17AmendedAccounting Standards Update No. 2020-1010/29/2020
220-10-45-17AmendedAccounting Standards Update No. 2013-0202/05/2013
220-10-45-17AmendedAccounting Standards Update No. 2011-1212/23/2011
220-10-45-17AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-17AAmendedAccounting Standards Update No. 2020-1010/29/2020
220-10-45-17AAmendedAccounting Standards Update No. 2017-0703/10/2017
220-10-45-17AAddedAccounting Standards Update No. 2013-0202/05/2013
220-10-45-17BSupersededAccounting Standards Update No. 2020-1010/29/2020
220-10-45-17BAmendedAccounting Standards Update No. 2017-0703/10/2017
220-10-45-17BAddedAccounting Standards Update No. 2013-0202/05/2013
220-10-55-17EAmendedAccounting Standards Update No. 2017-0703/10/2017
220-10-45-18AmendedAccounting Standards Update No. 2025-1112/08/2025
220-10-45-18AmendedAccounting Standards Update No. 2011-1212/23/2011
220-10-45-18AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-45-18AAmendedAccounting Standards Update No. 2025-1112/08/2025
220-10-45-18AAddedAccounting Standards Update No. 2013-0202/05/2013
220-10-45-18BAddedAccounting Standards Update No. 2013-0202/05/2013
220-10-50-1AmendedAccounting Standards Update No. 2020-1010/29/2020
220-10-50-1 through 50-3
AddedAccounting Standards Update No. 2018-0202/14/2018
220-10-50-2SupersededAccounting Standards Update No. 2025-1112/08/2025
220-10-50-3SupersededAccounting Standards Update No. 2025-1112/08/2025
220-10-50-4 through 50-6
AmendedAccounting Standards Update No. 2025-1112/08/2025
220-10-50-4 through 50-6
AddedAccounting Standards Update No. 2020-1010/29/2020
220-10-55-1AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-2SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-55-3SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-55-4 through 55-8
AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-5AmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-7AmendedAccounting Standards Update No. 2025-1212/17/2025
220-10-55-7 through 55-8AAmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-7AmendedAccounting Standards Update No. 2015-0101/09/2015
220-10-55-7AmendedAccounting Standards Update No. 2011-1212/23/2011
220-10-55-8AmendedAccounting Standards Update No. 2015-0101/09/2015
220-10-55-8AmendedAccounting Standards Update No. 2011-1212/23/2011
220-10-55-8AAddedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-8BAddedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-9AmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-9AmendedAccounting Standards Update No. 2015-0101/09/2015
220-10-55-9AmendedAccounting Standards Update No. 2011-1212/23/2011
220-10-55-9AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-10SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-55-10AAmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-10AAddedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-11AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-12AmendedAccounting Standards Update No. 2012-0410/01/2012
220-10-55-12AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-12AmendedAccounting Standards Update No. 2009-0207/01/2009
220-10-55-13SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-55-13AmendedAccounting Standards Update No. 2009-0207/01/2009
220-10-55-14SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-55-15AmendedAccounting Standards Update No. 2020-1010/29/2020
220-10-55-15 through 55-15CAmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-15AmendedAccounting Standards Update No. 2013-0202/05/2013
220-10-55-15AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-15A through 55-15C
AddedAccounting Standards Update No. 2013-0202/05/2013
220-10-55-15BAmendedAccounting Standards Update No. 2016-1306/16/2016
220-10-55-15CAmendedAccounting Standards Update No. 2018-1208/15/2018
220-10-55-16AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-17SupersededAccounting Standards Update No. 2011-0506/16/2011
220-10-55-17A through 55-17F
AddedAccounting Standards Update No. 2013-0202/05/2013
220-10-55-17CAmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-17EAmendedAccounting Standards Update No. 2020-1010/29/2020
220-10-55-17EAmendedMaintenance Update 2016-11 (PDF)06/27/2016
220-10-55-17EAmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-17FAmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-18AmendedAccounting Standards Update No. 2011-1212/23/2011
220-10-55-18AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-55-19AmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-20AmendedAccounting Standards Update No. 2016-0101/05/2016
220-10-55-21 through 55-23
SupersededAccounting Standards Update No. 2016-0101/05/2016
220-10-55-25AmendedAccounting Standards Update No. 2011-0506/16/2011
220-10-65-1AmendedAccounting Standards Update No. 2011-1212/23/2011
220-10-65-1AddedAccounting Standards Update No. 2011-0506/16/2011
220-10-65-2AddedAccounting Standards Update No. 2011-1212/23/2011
220-10-65-3AddedAccounting Standards Update No. 2013-0202/05/2013
220-10-65-4AddedAccounting Standards Update No. 2018-0202/14/2018
Source downloaded (UTC): 2026-09-09T23:03:12.637Z to 2026-09-09T23:03:12.637Z Record version: sha256:6a91fef565c82d221da022b909770e3b0db3ee2532e41dfa3483a1ec852b0090 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/10/#05-overview-and-background) SEC content: no ##### [220-10-05-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:12.637Z to 2026-09-09T23:03:12.637Z Record version: sha256:68946ba565e839f669a7f5780ad5459ad2450d9bcb0d3e81aa4a379bb4ef890d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Income Statement—Reporting Comprehensive Income Topic establishes standards for reporting and presentation of [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income.") and its components in a full set of general-purpose financial statements. The Income Statement—Reporting Comprehensive Income Topic includes the following Subtopics: 1. a Overall 2. b Unusual or Infrequently Occurring Items 3. c Business Interruption Insurance. ##### [220-10-05-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:12.637Z to 2026-09-09T23:03:12.637Z Record version: sha256:d463502bf3e3d7132c9be7039fd86bca2932f1da37d2ef5425a226a5c1d0552c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Each Subtopic in the Income Statement—Reporting Comprehensive Income Topic contains standalone guidance. There is no relationship between the individual Subtopics within this Topic. Each Subtopic provides presentation and disclosure guidance for the income statement matter indicated by the Subtopic title. ##### [220-10-05-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:12.637Z to 2026-09-09T23:03:12.637Z Record version: sha256:d9966af74c722eb2b8617ef057452b7b33e75dc0ccd32c576e2c4e2cb8db2e92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides general comprehensive income statement guidance. It also provides guidance on the structure of the Topic. ##### [220-10-05-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:12.637Z to 2026-09-09T23:03:12.637Z Record version: sha256:8c071136e37f82d12fa7c633cf5e53c9e1e3e5fe801648c117b583cc2e2e8349 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 220-20 provides guidance about the presentation and disclosure of unusual or infrequently occurring items. ##### [220-10-05-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:12.637Z to 2026-09-09T23:03:12.637Z Record version: sha256:2f6be694700336172513dfe02a9611589012eb0cd0bae6c8b8d6feaadc51b7f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 220-30 provides guidance on proceeds from business interruption insurance. ##### [220-10-05-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-05-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:12.637Z to 2026-09-09T23:03:12.637Z Record version: sha256:f4016b6f9b283e52c2e223cd319e296b5c3517eaf520a1f6db42e6f52a307d09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)Subtopic 220-40 provides guidance on expense disaggregation disclosures and selling expenses disclosures. Source downloaded (UTC): 2026-09-09T23:03:15.647Z to 2026-09-09T23:03:15.647Z Record version: sha256:0479a8346aa25c51e75249ac9442d5447a253a64eee5afe85eedf26498a4774a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/220/10/#10-objectives) SEC content: no ##### [220-10-10-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-10-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:15.647Z to 2026-09-09T23:03:15.647Z Record version: sha256:4b19edd3efd01de4310e594cfc9f75c7fe2f1cde4730cf2e30f4785a56999f7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose of reporting [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income.") is to report a measure of all changes in equity of an entity that result from recognized transactions and other economic events of the period other than transactions with owners in their capacity as owners. ##### [220-10-10-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-10-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:15.647Z to 2026-09-09T23:03:15.647Z Record version: sha256:32d817dd11e175146c542762e2a609a795635e580294a575ca93365ea0151e50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If used with related disclosures and other information in the financial statements, the information provided by reporting comprehensive income should assist investors, creditors, and others in assessing an entity's activities and an entity's future cash flows. ##### [220-10-10-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-10-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:15.647Z to 2026-09-09T23:03:15.647Z Record version: sha256:8982cbd6dc1065ce75ee5d867c4e4d4a73c26c9d05119450219de65afff90115 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although total comprehensive income is a useful measure, information about the components that make up comprehensive income also is needed. A single focus on total comprehensive income is likely to result in a limited understanding of an entity's activities. Information about the components of comprehensive income often may be more important than the total amount of comprehensive income. Source downloaded (UTC): 2026-09-09T23:03:18.992Z to 2026-09-09T23:03:18.992Z Record version: sha256:d3ea2b53f30ef5aa35ad9a410f2f035803bee941eaf47d30e60872993d06bb82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-10-15-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:18.992Z to 2026-09-09T23:03:18.992Z Record version: sha256:2a4fba4765f3af7a1974517d0eb90815db2533e853dda0991fe1430fb0ca1354 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Income Statement—Reporting Comprehensive Income Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Income Statement—Reporting Comprehensive Income Topic. #### Entities ##### [220-10-15-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:18.992Z to 2026-09-09T23:03:18.992Z Record version: sha256:80f259e39622e66171435072cefaf6ab1113aca223bc3356b501430eebfa6432 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as noted in the following paragraph, the guidance in the Income Statement—Reporting Comprehensive Income Topic applies to all entities, including: 1. a Entities that provide a full set of financial statements that report financial position, results of operations, and cash flows 2. b Investment companies, defined benefit pension plans, and other employee benefit plans that are exempt from the requirement to provide a statement of cash flows by paragraph [230-10-15-4](https://asc.understandingaccounting.org/asc/230/10/#230-10-15-4). ##### [220-10-15-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:18.992Z to 2026-09-09T23:03:18.992Z Record version: sha256:d8d693a4aa4048d34d6f31a81f9c98dfdf5f22550b93f35ca05007293706519d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following entities: 1. a An entity that has no items of [other comprehensive income](https://asc.understandingaccounting.org/glossary/o/#other-comprehensive-income "Revenues, expenses, gains, and losses that under generally accepted accounting principles (GAAP) are included in comprehensive income but excluded from net income.") in any period presented. In such cases, the entity is not required to report other comprehensive income or [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income."). See paragraph [220-10-45-10A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-10A) for items that are required to be reported as other comprehensive income. 2. b A not-for-profit entity (NFP) that is required to follow the provisions of Subtopic 958-205. ##### [220-10-15-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:18.992Z to 2026-09-09T23:03:18.992Z Record version: sha256:b395b97027824dbc761be3ab93d05230e0deed59848a34bf956abd0c2449a8da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-15-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:18.992Z to 2026-09-09T23:03:18.992Z Record version: sha256:7a77393ab32a969ce9fb4e38f22c50e270394c054c8822607641d651a6b07802 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Income Statement—Reporting Comprehensive Income Topic applies to general-purpose statements that purport to present results of operations in conformity with generally accepted accounting principles (GAAP). Source downloaded (UTC): 2026-09-09T23:03:25.814Z to 2026-09-09T23:03:25.814Z Record version: sha256:cc106971945ec96facc7f1175a22efd09db0badbad938d021e3e311041fc9a8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/220/10/#25-recognition) SEC content: no ##### [220-10-25-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:25.814Z to 2026-09-09T23:03:25.814Z Record version: sha256:ad656325047db780e192a4b5e2c34e7ea3e46c3d6d76b7b05ae35441489d7e76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not specify when to recognize the items that make up [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income."). Source downloaded (UTC): 2026-09-09T23:03:27.780Z to 2026-09-09T23:03:27.780Z Record version: sha256:b6873f8a4b8df3630d47084ec8b61b2eb42e32aca74333393293c1c53beca170 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/220/10/#30-initial-measurement) SEC content: no ##### [220-10-30-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:27.780Z to 2026-09-09T23:03:27.780Z Record version: sha256:23800c7460cbda0b7db3e8882777d3e28b1aab4d94a043008c5fde569a59278b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not specify how to measure the items that make up [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income."). Source downloaded (UTC): 2026-09-09T23:03:30.259Z to 2026-09-09T23:03:30.259Z Record version: sha256:876b46b1f1aef205ff4182d36fdc5175f595971b11ab31e1dc8d8b7ed75e20d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/220/10/#35-subsequent-measurement) SEC content: no ##### [220-10-35-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:30.259Z to 2026-09-09T23:03:30.259Z Record version: sha256:375a6d36398cb7f639fcf7a259b0c094b56dcb414703f256545b16d6f422f3f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [220-10-30-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-30-1) states that this Subtopic does not specify how to measure the items that make up [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income."). Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:8ffa7a3e2716c9b721e6d9e3fb43f06cea97e3a01d717d760e52583e85aa37bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/10/#45-other-presentation-matters) SEC content: no #### Reporting Comprehensive Income ##### [220-10-45-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:208af8bc689cfbd2ea9668f240e4e94640e86c41ed3a0bab585377852b5d9ce0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic requires an entity to report [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income.")either in a single continuous financial statement or in two separate but consecutive financial statements. ##### [220-10-45-1A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:b7e9517ed9550ea3745f055e521a2bfc41285a2c0665fc49bc11b883eb74540a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity reporting comprehensive income in a single continuous financial statement shall present its components in two sections, [net income](https://asc.understandingaccounting.org/glossary/n/#net-income "A measure of financial performance resulting from the aggregation of revenues, expenses, gains, and losses that are not items of other comprehensive income. A variety of other terms such as net earnings or earnings may be used to describe net income.") and [other comprehensive income](https://asc.understandingaccounting.org/glossary/o/#other-comprehensive-income "Revenues, expenses, gains, and losses that under generally accepted accounting principles (GAAP) are included in comprehensive income but excluded from net income."). If applicable, an entity shall present the following in that financial statement: 1. a A total amount for net income together with the components that make up net income. 2. b A total amount for other comprehensive income together with the components that make up other comprehensive income. As indicated in paragraph [220-10-15-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-15-3), an entity that has no items of other comprehensive income in any period presented is not required to report comprehensive income. 3. c Total comprehensive income. ##### [220-10-45-1B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:f6d7120db2eab939f407256b40537daf8558f58075c562e5d664786849923fcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity reporting comprehensive income in two separate but consecutive statements shall present the following: 1. a Components of and the total for net income in the statement of net income 2. b Components of and the total for other comprehensive income as well as a total for comprehensive income in the statement of comprehensive income, which shall be presented immediately after the statement of net income. A reporting entity shall begin the second statement with net income. ##### [220-10-45-1C](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1C) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:9b8e78ec9ac7b0991202950a820bf5c45f5cec888f017417a2f3f470d692d50b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present, either in a single continuous statement of comprehensive income or in a statement of net income and statement of other comprehensive income, all items that meet the definition of comprehensive income for the period in which those items are recognized. Components included in other comprehensive income shall be classified based on their nature. For related guidance, see paragraphs [220-10-45-10A through 45-10B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-10A) . ##### [220-10-45-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:97955aba99fb161dfc7eb5e579b2643f09e0426c7680792423beda08896a24c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-45-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:1416573be3a4728ce12bf3ff962e416f912c077c5631d9d85b5dbc34b2e40ec1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-45-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:9acfe21c610f86ca480e27371e59b6a903b72edaa6b56f427fe84c085c8e900a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not require that an entity use the terms _comprehensive income_ or _other comprehensive income_ in its financial statements, even though those terms are used throughout this Subtopic. ##### [220-10-45-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:1ce13e06bf5d95c6f4d9e8ead31e8472e055106608383a9f4af981a618b96bb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [810-10-50-1A(a)](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1A) states that, if an entity has an outstanding [noncontrolling interest](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest."), amounts for both net income and comprehensive income attributable to the [parent](https://asc.understandingaccounting.org/glossary/p/#parent "An entity that has a controlling financial interest in one or more subsidiaries. (Also, an entity that is the primary beneficiary of a variable interest entity.)") and net income and comprehensive income attributable to the noncontrolling interest in a less-than-wholly-owned [subsidiary](https://asc.understandingaccounting.org/glossary/s/#subsidiary "An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)") shall be reported in the financial statement(s) in which net income and comprehensive income are presented in addition to presenting consolidated net income and comprehensive income. For more guidance, see paragraph [810-10-50-1A(c)](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1A). ##### [220-10-45-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:cd3e1d67087054442bbf25a9bd538f2e51b223d6b915991802fb420ec763363f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-45-7](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:9f5d733189ad4968677b7b636c2499ea80e206502a37e5df1302f34a4519649e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Items included in net income are presented in various components. Those components can include items of income from continuing operations and discontinued operations. This Subtopic does not change those components or other requirements for reporting the results of operations included in net income. ##### [220-10-45-7A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-7A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:2150b98f8b7fb0d525e7d2d43b94c06cd95a57ef8409b5a018609559dd9c1363 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net income shall reflect all items of profit and loss recognized during the period with the sole exception of error corrections as addressed in Topic 250. However, the requirement that net income be presented as one amount does not apply to the following entities that have developed income statements with formats different from those of the typical commercial entity: 1. a Investment companies 2. b Insurance entities 3. c Certain not-for-profit entities (NFPs). ##### [220-10-45-8](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:a2cd5d0f55b3fc8542bd6bfe38bdf63eb6620c6e65ae6d61a5ea2ecb10fb5c90 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 220-10-45-8 through 45-10 superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-8). ##### [220-10-45-10A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-10A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:82b19a0722f902916aef36ff0113414f4e8013626548d48d311904f6759d370b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Items of other comprehensive income include the following: 1. a Foreign currency translation adjustments (see paragraph [830-30-45-12](https://asc.understandingaccounting.org/asc/830/30/#830-30-45-12)) 2. b Gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity, commencing as of the designation date (see paragraph [830-20-35-3(a)](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-3)) 3. c Gains and losses on intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future), when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting entity's financial statements (see paragraph [830-20-35-3(b)](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-3)) 4. d Gains and losses on derivative instruments that are designated as, and qualify as, cash flow hedges (see paragraph [815-20-35-1(c)](https://asc.understandingaccounting.org/asc/815/20/#815-20-35-1)) 5. dd For derivatives that are designated in qualifying hedging relationships, the difference between changes in fair value of the excluded components and the initial value of the excluded components recognized in earnings under a systematic and rational method in accordance with paragraphs [815-20-25-83A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-83A) and [815-35-35-5A](https://asc.understandingaccounting.org/asc/815/35/#815-35-35-5A) 6. e Unrealized [holding gains and losses](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") on available-for-sale debt securities (see paragraph [326-30-35-2](https://asc.understandingaccounting.org/asc/326/30/#326-30-35-2)) 7. f Unrealized holding gains and losses that result from a debt security being transferred into the available-for-sale category from the held-to-maturity category (see paragraph [320-10-35-10(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10)) 8. g [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 9. h [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 10. i Gains or losses associated with pension or other postretirement benefits (that are not recognized immediately as a component of net periodic benefit cost) (see paragraph [715-20-50-1(j)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1)) 11. j Prior service costs or credits associated with pension or other postretirement benefits (see paragraph [715-20-50-1(j)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1)) 12. k Transition assets or obligations associated with pension or other postretirement benefits (that are not recognized immediately as a component of net periodic benefit cost) (see paragraph [715-20-50-1(j)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1)). 13. l Changes in fair value attributable to instrument-specific credit risk of liabilities for which the fair value option is elected (see paragraph [825-10-45-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-5)). 14. m The effect of changes in the discount rates used to measure traditional and limited-payment long-duration insurance contracts (see paragraph [944-40-35-6A(b)(1)](https://asc.understandingaccounting.org/asc/944/40/#944-40-35-6A)). 15. n The effect of changes in the fair value of a [market risk benefit](https://asc.understandingaccounting.org/glossary/m/#market-risk-benefit "A contract or contract feature in a long-duration contract issued by an insurance entity that both protects the contract holder from other-than-nominal capital market risk and exposes the insurance entity to other-than-nominal capital market risk.") attributable to a change in the instrument-specific credit risk (see paragraph [944-40-35-8A](https://asc.understandingaccounting.org/asc/944/40/#944-40-35-8A)). Additional classifications or additional items within current classifications may result from future accounting standards. ##### [220-10-45-10B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-10B) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:630aa57da552045e794ec0cba1bc36aa810a0474b01eea97920458b7443da3e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. None of the following items qualify as an item of comprehensive income: 1. a Changes in equity during a period resulting from investments by owners and distributions to owners 2. b Items required to be reported as direct adjustments to paid-in capital, retained earnings, or other nonincome equity accounts such as the following types of transactions: 1. 1 A reduction of shareholders' equity related to employee stock ownership plans (see paragraph [718-740-25-5](https://asc.understandingaccounting.org/asc/718/740/#718-740-25-5)) 2. 2 Recognition of tax benefits related to deductible temporary differences and carryforwards arising from a quasi-reorganization as defined in Subtopic 852-20 (see paragraph [852-740-45-3](https://asc.understandingaccounting.org/asc/740/852/#740-852-45-3)) 3. 3 Net cash settlement resulting from a change in value of a contract that gives the entity a choice of net cash settlement or settlement in its own shares (see paragraph [815-40-25-4(b)(2)](https://asc.understandingaccounting.org/asc/815/40/#815-40-25-4)). #### Presentation of Income Tax Effects ##### [220-10-45-11](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:d14a5bf36f2fa854f60e30b769c095595f56a2936acf86c029fae5f95c963cdb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present components of other comprehensive income in the statement in which other comprehensive income is reported either net of related tax effects or before related tax effects with one amount shown for the aggregate income tax expense or benefit related to the total of other comprehensive income items. ##### [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:d4142091a9a8efb16d460551edda3db1324619ad97693cde4e1585456f01c63e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present the amount of income tax expense or benefit allocated to each component of other comprehensive income, including [reclassification adjustments](https://asc.understandingaccounting.org/glossary/r/#reclassification-adjustments "Adjustments made to avoid double counting in comprehensive income items that are displayed as part of net income for a period that also had been displayed as part of other comprehensive income in that period or earlier periods."), in the statement in which those components are presented or disclose it in the notes to financial statements. Example 1 (see paragraphs [220-10-55-7 through 55-8B](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-7)) illustrates the alternative formats for disclosing the tax effects related to the components of other comprehensive income. (See paragraph [220-10-50-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-4).) ##### [220-10-45-12A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:d38e5d2d49ae34402c06e72dcd4be8a4fcb98ef7b6caa52c1fdee97de0ce0ee2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act), reduced the U.S. federal corporate income tax rate and made other changes to U.S. federal tax law. An entity may elect to reclassify the income tax effects of the Tax Cuts and Jobs Act on items within accumulated other comprehensive income to retained earnings. If an entity does not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act, it shall provide the disclosures in paragraph [220-10-50-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-3). If an entity elects to reclassify the income tax effects of the Tax Cuts and Jobs Act, the amount of that reclassification shall include the following: 1. a The effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of enactment of the Tax Cuts and Jobs Act related to items remaining in accumulated other comprehensive income. The effect of the change in the U.S. federal corporate income tax rate on gross valuation allowances that were originally charged to income from continuing operations shall not be included. 2. b Other income tax effects of the Tax Cuts and Jobs Act on items remaining in accumulated other comprehensive income that an entity elects to reclassify, subject to the disclosures in paragraph [220-10-50-2(b)](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-2). ##### [220-10-45-13](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:8bcc5495d508e3ec67e52887ba201a904d189dcba13e87ea11f4c2caa9d8da4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-45-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:d900051f459088f76cf2e2e2c1ccd4e9355cb83e1f64d132bbce74509db7ea65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The total of other comprehensive income for a period shall be transferred to a component of equity that is presented separately from retained earnings and additional paid-in capital in a statement of financial position at the end of an accounting period. A descriptive title such as accumulated other comprehensive income shall be used for that component of equity. ##### [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:e1692ab4010ca5689e03ee0fb0476922befe21722134e6df1cef384e269935df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present, either on the face of the financial statements or as a separate disclosure in the notes, the changes in the accumulated balances for each component of other comprehensive income included in that separate component of equity, as required in paragraph [220-10-45-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14). In addition to the presentation of changes in accumulated balances, an entity shall present separately for each component of other comprehensive income, current period reclassifications out of accumulated other comprehensive income and other amounts of current-period other comprehensive income. Both before-tax and net-of-tax presentations are permitted provided the entity complies with the requirements in paragraph [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12). Paragraph [220-10-55-15](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15) illustrates the disclosure of changes in accumulated balances for components of other comprehensive income as a separate disclosure in the notes to financial statements. (See paragraph [220-10-50-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-5).) #### Reclassification Adjustments ##### [220-10-45-15](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:c0a968d11afca0889a2926b27d5f649c6fe0a9212ea10e845b82551a74f3f909 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Reclassification adjustments shall be made to avoid double counting of items in comprehensive income that are presented as part of net income for a period that also had been presented as part of other comprehensive income in that period or earlier periods. For example, gains on investment securities that were realized and included in net income of the current period that also had been included in other comprehensive income as unrealized holding gains in the period in which they arose must be deducted through other comprehensive income of the period in which they are included in net income to avoid including them in comprehensive income twice (see paragraph [320-10-40-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-40-2)). Example 3 (see paragraphs [220-10-55-18 through 55-27](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-18) ) illustrates the presentation of reclassification adjustments in accordance with this paragraph. ##### [220-10-45-16](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:535a609b7215525d457c6bc3e5a79d4cc113c5ff9ad0725c85e18ddbe8a875e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall determine reclassification adjustments for each component of other comprehensive income. The requirement for a reclassification adjustment for foreign currency translation adjustments is limited to translation gains and losses realized upon sale or upon complete or substantially complete liquidation of an investment in a foreign entity (see paragraphs [830-30-40-1 through 40-1A](https://asc.understandingaccounting.org/asc/830/30/#830-30-40-1)). ##### [220-10-45-16A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-16A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:32cc51d24e47202b09e571a3acbb0fcbe555365d7a65f96d72dd4a4fcf2c1cb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [220-10-45-17](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:c433b2bef1e0247c00cf9388e48b3388833dca595d3a3649325b44baf72cae0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall separately provide information about the effects on net income of significant amounts reclassified out of each component of accumulated other comprehensive income if those amounts all are required under other Topics to be reclassified to net income in their entirety in the same reporting period. An entity shall provide this information together, in one location, in either of the following ways: 1. a On the face of the statement where net income is presented 2. b As a separate disclosure in the notes to financial statements. Paragraph [220-10-45-17A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17A) describes the information requirements for presentation on the face of the statements where net income is presented, and paragraph [220-10-50-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-6) describes the information requirements for disclosure in the notes to financial statements. ##### [220-10-45-17A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:080390b13bb7d67caba75d44c2bd8ef4fe4379490201ebd67d4b953614d716b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity chooses to present information about the effects of significant amounts reclassified out of accumulated other comprehensive income on net income, on the face of the statement where net income is presented, the entity shall present parenthetically by component of other comprehensive income the effect of significant reclassification amounts on the respective line items of net income. An entity also shall present parenthetically the aggregate tax effect of all significant reclassifications on the line item for income tax benefit or expense in the statement where net income is presented. However, if an entity chooses to use a separate line item or items in the income statement to present significant pension cost components or other postretirement benefit cost components reclassified out of accumulated other comprehensive income, it shall no longer be required to present those pension cost components or other postretirement benefit cost components parenthetically. If an entity is unable to identify the line item of net income affected by any significant amount reclassified out of accumulated other comprehensive income in a reporting period (including when all reclassifications for the period are not to net income in their entirety), the entity must follow the guidance in paragraph [220-10-50-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-6). Paragraph [220-10-55-17F](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17F) provides an example of presentation of the effect of reclassification on the face of the statement where net income is presented. ##### [220-10-45-17B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17B) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:30882a2f0edf715fca02043247b7634b985008615bba7b7e86da5219828e2f2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-10](https://asc.understandingaccounting.org/updates/asu-2020-10/). #### Interim-Period Reporting ##### [220-10-45-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:234fef22174ea00783c75b0b16347f01b7914e46f672ad5461244dae2a312148 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 270-10 clarifies the application of accounting principles and reporting practices to interim financial information, including interim financial statements and summarized interim financial data of publicly traded companies issued for external reporting purposes. An entity shall report a total for comprehensive income in condensed financial statements of interim periods in a single continuous statement or in two consecutive statements. 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)Subtopic 270-10explains the application of accounting principles and reporting practices to interim financial statements and notes in accordance with generally accepted accounting principles. An entity shall report a total for comprehensive income in [condensed statements](https://asc.understandingaccounting.org/glossary/c/#condensed-statements "(P) December 16, 2027; (N) December 16, 2028 270-10-65-1 Financial statements that are presented at a level that is more aggregated than the annual financial statements or have limited notes subject to the disclosure requirements in Topic 270 or both. (U.S. Securities and Exchange Commission [SEC] registrants are required to consider the guidance in paragraph 270-10-S45-2. See Regulation S-X Rule 10-01 [17 CFR 210.10-01] and Regulation S-X Rule 8-03 [17 CFR 210.8-03].)")of interim periods in a single continuous statement or in two consecutive statements. ##### [220-10-45-18A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:5c4589ad9b285b6c5a79e46a633ad4d745890bb13c954f80973db767d38f212d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Publicly traded companies](https://asc.understandingaccounting.org/glossary/p/#publicly-traded-company "A publicly traded company includes any company whose securities trade in a public market on either of the following: A stock exchange (domestic or foreign) In the over-the-counter market (including securities quoted only locally or regionally), or any company that is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). Additionally, when a company is required to file or furnish financial statements with the SEC or makes a filing with a regulatory agency in preparation for sale of its securities in a public market it is considered a publicly traded company for this purpose. Conduit debt securities refers to certain limited-obligation revenue bonds, certificates of participation, or similar debt instruments issued by a state or local governmental entity for the express purpose of providing financing for a specific third party (the conduit bond obligor) that is not a part of the state or local government's financial reporting entity. Although conduit debt securities bear the name of the governmental entity that issues them, the governmental entity often has no obligation for such debt beyond the resources provided by a lease or loan agreement with the third party on whose behalf the securities are issued. Further, the conduit bond obligor is responsible for any future financial reporting requirements.") must meet the reporting requirements in this Subtopic at each reporting period. Companies shall follow the guidance in Subtopic 270-10 for the level of detail required for condensed financial statements for interim-period financial statements. 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)[Publicly traded companies](https://asc.understandingaccounting.org/glossary/p/#publicly-traded-company "A publicly traded company includes any company whose securities trade in a public market on either of the following: A stock exchange (domestic or foreign) In the over-the-counter market (including securities quoted only locally or regionally), or any company that is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). Additionally, when a company is required to file or furnish financial statements with the SEC or makes a filing with a regulatory agency in preparation for sale of its securities in a public market it is considered a publicly traded company for this purpose. Conduit debt securities refers to certain limited-obligation revenue bonds, certificates of participation, or similar debt instruments issued by a state or local governmental entity for the express purpose of providing financing for a specific third party (the conduit bond obligor) that is not a part of the state or local government's financial reporting entity. Although conduit debt securities bear the name of the governmental entity that issues them, the governmental entity often has no obligation for such debt beyond the resources provided by a lease or loan agreement with the third party on whose behalf the securities are issued. Further, the conduit bond obligor is responsible for any future financial reporting requirements.") must meet the reporting requirements in this Subtopic at each reporting period. All entities shall follow the guidance in Subtopic 270-10 for the level of detail required for condensed statements for interim-period financial statements. ##### [220-10-45-18B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18B) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:33.072Z to 2026-09-09T23:03:33.072Z Record version: sha256:b90df1e6b773d945282b24387bca72157c64f47d21e6fe8893b3ab3650879ca0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Nonpublic entities](https://asc.understandingaccounting.org/glossary/n/#nonpublic-entity "Any entity that does not meet any of the following conditions: Its debt or equity securities trade in a public market either on a stock exchange (domestic or foreign) or in an over-the-counter market, including securities quoted only locally or regionally. It is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It files with a regulatory agency in preparation for the sale of any class of debt or equity securities in a public market. It is required to file or furnish financial statements with the Securities and Exchange Commission. It is controlled by an entity covered by criteria (a) through (d).") must meet the reporting requirements in this Subtopic at each reporting period, except for the requirements in paragraphs [220-10-45-17 through 45-17B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17). Nonpublic entities are not required to meet the requirements in paragraphs 220-10-45-17 through 45-17B for interim reporting periods but are required to meet them for annual reporting periods. Source downloaded (UTC): 2026-09-09T23:03:35.373Z to 2026-09-09T23:03:35.373Z Record version: sha256:7608d983d80eadd006b164d7e6c8fb25cc4c428bba9b08c37c7ac0b1c6e84471 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/10/#50-disclosure) SEC content: no #### Disclosing Changes and Certain Income Tax Effects within Accumulated Other Comprehensive Income ##### [220-10-50-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:35.373Z to 2026-09-09T23:03:35.373Z Record version: sha256:a10052a6381df82f9c5e41186849ae28e9969f8f476b7e95845b942802f4dadf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income. ##### [220-10-50-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:35.373Z to 2026-09-09T23:03:35.373Z Record version: sha256:ed7dc5ef455c91a820625830c3f5ca7580b318ef2ea39d653214cb35158d3cdd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that elects to reclassify the income tax effects of H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act), in accordance with paragraph [220-10-45-12A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12A) shall disclose in the period of adoption both of the following: 1. a A statement that an election was made to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings 2. b A description of other income tax effects related to the application of the Tax Cuts and Jobs Act that are reclassified from accumulated other comprehensive income to retained earnings, if any (see paragraph [220-10-45-12A(b)](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12A)). 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)[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) ##### [220-10-50-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:35.373Z to 2026-09-09T23:03:35.373Z Record version: sha256:0eb4e04e94df5f22126d93ca756dbd35af94798bdff5fa4a53b8bd805fcfd0a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that does not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act in accordance with paragraph [220-10-45-12A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12A) shall disclose in the period of adoption a statement that an election was not made to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. 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)[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) ##### [220-10-50-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:35.373Z to 2026-09-09T23:03:35.373Z Record version: sha256:0de8f4c336e177de7185cca8307e2f6a83b20ea5a1bc0dd69ec33b75c900020a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present the amount of income tax expense or benefit allocated to each component of other comprehensive income, including [reclassification adjustments](https://asc.understandingaccounting.org/glossary/r/#reclassification-adjustments "Adjustments made to avoid double counting in comprehensive income items that are displayed as part of net income for a period that also had been displayed as part of other comprehensive income in that period or earlier periods."), in the statement in which those components are presented or disclose it in the notes to financial statements. Example 1 (see paragraphs [220-10-55-7 through 55-8B](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-7)) illustrates the alternative formats for disclosing the tax effects related to the components of other comprehensive income. (See paragraph [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12).) 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 present the amount of income tax expense or benefit allocated to each component of other comprehensive income, including [reclassification adjustments](https://asc.understandingaccounting.org/glossary/r/#reclassification-adjustments "Adjustments made to avoid double counting in comprehensive income items that are displayed as part of net income for a period that also had been displayed as part of other comprehensive income in that period or earlier periods."), in the statement in which those components are presented or disclose it in the notes to financial statements. Example 1 (see paragraphs [220-10-55-7 through 55-8B](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-7)) illustrates the alternative formats for disclosing the tax effects related to the components of other comprehensive income. (See paragraph [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12).) ##### [220-10-50-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:35.373Z to 2026-09-09T23:03:35.373Z Record version: sha256:19d8542e27666eb5fbbeee838a788b793bfcf31fe7206b3de02c521bf96c2dfb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present, either on the face of the financial statements or as a separate disclosure in the notes, the changes in the accumulated balances for each component of other comprehensive income included in that separate component of equity, as required in paragraph [220-10-45-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14). In addition to the presentation of changes in accumulated balances, an entity shall present separately for each component of other comprehensive income, current period reclassifications out of accumulated other comprehensive income and other amounts of current-period other comprehensive income. Both before-tax and net-of-tax presentations are permitted provided the entity complies with the requirements in paragraph [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12). Paragraph [220-10-55-15](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15) illustrates the disclosure of changes in accumulated balances for components of other comprehensive income as a separate disclosure in the notes to financial statements. (See paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A).) 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 present, either on the face of the financial statements or as a separate disclosure in the notes, the changes in the accumulated balances for each component of other comprehensive income included in that separate component of equity, as required in paragraph [220-10-45-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14). In addition to the presentation of changes in accumulated balances, an entity shall present separately for each component of other comprehensive income, current period reclassifications out of accumulated other comprehensive income and other amounts of current-period other comprehensive income. Both before-tax and net-of-tax presentations are permitted provided the entity complies with the requirements in paragraph [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12). Paragraph [220-10-55-15](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15) illustrates the disclosure of changes in accumulated balances for components of other comprehensive income as a separate disclosure in the notes to financial statements. (See paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A).) ##### [220-10-50-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:35.373Z to 2026-09-09T23:03:35.373Z Record version: sha256:f0e9c17d408958518c9dd8dd2fd2bafc632e26a8bd83cff842935a507e7518b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity chooses to disclose information about significant amounts reclassified out of accumulated other comprehensive income in the notes to financial statements or is required to do so by paragraph [220-10-45-17A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17A), it shall disclose the significant amounts by each component of accumulated other comprehensive income and provide a subtotal of each component of comprehensive income. The subtotals for each component shall agree with the requirements in paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A). Both before-tax and net-of-tax presentations are permitted provided the entity complies with the requirements in paragraph [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12). For each significant reclassification amount, the entity shall identify, for those amounts that are required under other Topics to be reclassified to net income in their entirety in the same reporting period, each line item affected by the reclassification on the statement where net income is presented. For any significant reclassification for which other Topics do not require that reclassification to net income in its entirety in the same reporting period, the entity shall cross-reference to the note where additional details about the effect of the reclassifications are disclosed. Paragraph [220-10-55-17E](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17E) provides an example of a note presentation in a tabular format of the effect of reclassifications out of accumulated other comprehensive income. (See paragraph [220-10-45-17B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17B).) Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If an entity chooses to disclose information about significant amounts reclassified out of accumulated other comprehensive income in the notes to interim and annual financial statements or is required to do so by paragraph [220-10-45-17A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17A), it shall disclose the significant amounts by each component of accumulated other comprehensive income and provide a subtotal of each component of comprehensive income. The subtotals for each component shall agree with the requirements in paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A). Both before-tax and net-of-tax presentations are permitted provided the entity complies with the requirements in paragraph [220-10-45-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-12). For each significant reclassification amount, the entity shall identify, for those amounts that are required under other Topics to be reclassified to net income in their entirety in the same reporting period, each line item affected by the reclassification on the statement where net income is presented. For any significant reclassification for which other Topics do not require that reclassification to net income in its entirety in the same reporting period, the entity shall cross-reference to the note where additional details about the effect of the reclassifications are disclosed. Paragraph [220-10-55-17E](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17E) provides an example of a note presentation in a tabular format of the effect of reclassifications out of accumulated other comprehensive income. (See paragraph [220-10-45-17B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17B).) Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:cf488d0ffde1c0223646f721a96d449a23b9a3f9fb9706258e96f11e8d6ca1a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/220/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [220-10-55-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:185b1551cd3e28ab7fb89469d0204efee36c595767f383f72215d502cb360491 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides Examples of reporting formats for [comprehensive income](https://asc.understandingaccounting.org/glossary/c/#comprehensive-income "The change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Comprehensive income comprises both of the following:All components of net incomeAll components of other comprehensive income."), required disclosures, and a corresponding statement of financial position. The illustrations are intended as examples only. Other formats or levels of detail may be appropriate for certain circumstances. An entity is encouraged to provide information in ways that are most understandable to investors, lenders, and other external users of financial statements. For simplicity, the Examples provide information only for a single period; however, most entities are required to provide comparative financial statements. In addition to the Examples in this Section, paragraph [810-10-55-4C](https://asc.understandingaccounting.org/asc/810/10/#810-10-55-4C) illustrates one method for reporting comprehensive income if the entity has one or more less-than-wholly-owned subsidiaries. ##### [220-10-55-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:063169d68632377237f096bb638a3b7d41b5ed1a054e04d0a3acd0f6682bd8eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-55-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:b4121de038175d444b2eaa43a6e45cf6f87ad8ee6bae1e44fd667f931e794368 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). #### Illustrations ##### [220-10-55-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:b86949391bf984020ea203cd77347da4afce30f9078fb93e848c82221dc07b14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the various formats that may be used to report comprehensive income as discussed in paragraphs [220-10-45-1 through 45-17](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1) . ##### [220-10-55-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:452a806061215056ccf8a2c97b22ddc5baff18c9e01935fff2770a77de6190a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Brackets are used to highlight certain basic totals that must be presented in financial statements to comply with the provisions of this Subtopic. This Subtopic requires not only presenting those certain basic totals but also reporting components of those aggregates. For example, among other items, it requires reporting information about unrealized gains and losses on available-for-sale debt securities, foreign currency items, gains or losses associated with pension or other postretirement benefits, prior service costs or credits associated with pension or other postretirement benefits, and transition assets or obligations associated with pension or other postretirement benefits. ##### [220-10-55-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:cfa7a8b7ca7a88d17dc889b269d7ef09f2aa539e60c7555fc0d042f7a7733850 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tables use the term _comprehensive income_ to label the total of all parts of comprehensive income, including [net income](https://asc.understandingaccounting.org/glossary/n/#net-income "A measure of financial performance resulting from the aggregation of revenues, expenses, gains, and losses that are not items of other comprehensive income. A variety of other terms such as net earnings or earnings may be used to describe net income."). The tables use the term [other comprehensive income](https://asc.understandingaccounting.org/glossary/o/#other-comprehensive-income "Revenues, expenses, gains, and losses that under generally accepted accounting principles (GAAP) are included in comprehensive income but excluded from net income.") to label revenues, expenses, gains, and losses that are included in comprehensive income but excluded from net income. This Subtopic does not require that an entity use those terms in its financial statements. Other equivalent terms, such as _total nonowner changes in equity_, can be used as labels for what this Subtopic refers to as comprehensive income. ##### [220-10-55-7](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-7) Pending content: yes Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:98592cd15c04e93bbaab3c687bbcf96815db108bed8f6747ba0e4be466176bc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the statement of comprehensive income for the year ended December 31, 201X, with other comprehensive income components shown net of tax effects. - ![](https://asc.understandingaccounting.org/asc-img/GUID-37821D80-59FA-4CBA-982C-497684ED0C14-low.gif) Entity XYZ Consolidated Statement of Comprehensive Income " Year Ended December 31, 201X" Revenues " $140,000 " Expenses " (65,700)" Other gains and losses " 8,000 " Gain on sale of securities " 2,500 " Income from operations before tax " 84,800 " Income tax expense " (21,200)" \[Net income " 63,600 " \] Less: net income attributable to the noncontrolling interest " $(12,720)" Net income attributable to Entity XYZ shareholders " 50,880 " Earnings per share Basic and diluted 0.46 "Other comprehensive income, before tax:" Foreign currency translation adjustments (a) " 8,000 " Unrealized gains on debt securities: (b) $ Unrealized holding gains arising during period "13,000" Less: reclassification adjustment for gains included in net income " (1,500)" " 11,500 " Defined benefit pension plans: (c) Prior service cost arising during period " (1,600)" Net loss arising during period " (1,600)" Less: amortization of prior service cost included in net periodic pension cost 100 " (2,500)" \[Other comprehensive income " 17,000" \] \[Comprehensive income " 80,600 " \] Less: comprehensive income attributable to the noncontrolling interest " (16,120)" Comprehensive income attributable to Entity XYZ shareholders " $64,480 " (a) "It is assumed that there was no sale or liquidation of an investment in a foreign entity. Therefore, there is no reclassification adjustment for this period." (b) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (current-period gain and reclassification adjustment) in the notes to financial statements." (c) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (prior service cost and net loss for the defined benefit pension plans less amortization of prior service cost) in the notes to financial statements." Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)The following illustrates the statement of comprehensive income for the year ended December 31, 201X, with other comprehensive income components shown net of tax effects. - ![](https://asc.understandingaccounting.org/asc-img/GUID-B070A24D-728A-438E-AF2F-0423E43C3C63-low.gif) Entity XYZ Consolidated Statement of Comprehensive Income " Year Ended December 31, 201X" Revenues " $140,000 " Expenses " (65,700)" Other gains and losses " 8,000 " Gain on sale of securities " 2,500 " Income from operations before tax " 84,800 " Income tax expense " (21,200)" \[Net income " 63,600 " \] Less: net income attributable to the noncontrolling interest " $(12,720)" Net income attributable to Entity XYZ shareholders " 50,880 " Earnings per share Basic and diluted 0.46 "Other comprehensive income, net of tax:" Foreign currency translation adjustments (a) " 8,000 " Unrealized gains on debt securities: (b) $ Unrealized holding gains arising during period "13,000" Less: reclassification adjustment for gains included in net income " (1,500)" " 11,500 " Defined benefit pension plans: (c) Prior service cost arising during period " (1,600)" Net loss arising during period " (1,000)" Less: amortization of prior service cost included in net periodic pension cost 100 " (2,500)" \[Other comprehensive income " 17,000" \] \[Comprehensive income " 80,600 " \] Less: comprehensive income attributable to the noncontrolling interest " (16,120)" Comprehensive income attributable to Entity XYZ shareholders " $64,480 " (a) "It is assumed that there was no sale or liquidation of an investment in a foreign entity. Therefore, there is no reclassification adjustment for this period." (b) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (current-period gain and reclassification adjustment) in the notes to financial statements." (c) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (prior service cost and net loss for the defined benefit pension plans less amortization of prior service cost) in the notes to financial statements." ##### [220-10-55-8](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:2d701e37abcfed7f578cf46c97dcaf701524e904c0c51e935b300368d33dec15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Alternatively, components of other comprehensive income could be presented before tax with one amount shown for the aggregate income tax expense or benefit, as shown in the following single continuous statement of comprehensive income. - ![](https://asc.understandingaccounting.org/asc-img/GUID-A8CDAD0A-1AF7-4A5C-82A1-95A1BC85DB40-low.gif) Entity XYZ Consolidated Statement of Comprehensive Income " Year Ended December 31, 201X" Revenues " $140,000 " Expenses " (65,700)" Other gains and losses " 8,000 " Gain on sale of securities " 2,500 " Income from operations before tax " 84,800 " Income tax expense " (21,200)" \[Net income " 63,600 " \] Less: net income attributable to the noncontrolling interest " $(12,720)" Net income attributable to Entity XYZ shareholders " 50,880 " Earnings per share Basic and diluted 0.46 "Other comprehensive income, before tax:" Foreign currency translation adjustments (a) " 10,666 " Unrealized gains on debt securities: (b) $ Unrealized holding gains arising during period " 17,333" Less: reclassification adjustment for gains included in net income " (2,000)" " 15,333 " Defined benefit pension plans: (c) Prior service cost arising during period " (2,133)" Net loss arising during period " (1,333)" Less: amortization of prior service cost included in net periodic pension cost 133 " (3,333)" "Other comprehensive income, before tax" " 22,666 " 6 \[Income tax expense related to items of other comprehensive income " (5,666)" \] \] "\[Other comprehensive income, net of tax" " 17,000" \] \[Comprehensive income " 80,600 " \] Less: comprehensive income attributable to the noncontrolling interest " (16,120)" Comprehensive income attributable to Entity XYZ shareholders " $64,480 " (a) "It is assumed that there was no sale or liquidation of an investment in a foreign entity. Therefore, there is no reclassification adjustment for this period." (b) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (current-period gain and reclassification adjustment) in the notes to the financial statements." (c) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (prior service cost and net loss for the defined benefit pension plans less amortization of prior service cost) in the notes to the financial statements." ##### [220-10-55-8A](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:73069cae7697b609c4b4d48eb4ec460cf8caf147de741cdc28cea7ba0eef86e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates disclosure of the tax effects allocated to each component of other comprehensive income in the notes to financial statements for the year ended December 31, 201X. - ![](https://asc.understandingaccounting.org/asc-img/GUID-7F4B17F7-ED86-4AAE-8A09-7DB27EDD43C7-low.gif) "Entity XYZ Notes to Financial Statements Year Ended December 31, 201X " Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Foreign currency translation adjustments " $10,666 " " $(2,666)" " $8,000 " Unrealized gains on debt securities: Unrealized holding gains arising during period " 17,333 " " (4,333)" " 13,000 " Less: reclassification adjustment for gains realized in net income " (2,000)" 500 " (1,500)" Net unrealized gains " 15,333 " " (3,833)" " 11,500 " Defined benefit pension plans: Prior service cost from plan amendment during period " (2,133)" 533 " (1,600)" Less: amortization of prior service cost included in net periodic pension cost 133 (33) 100 Net prior service cost arising during period " (2,000)" 500 " (1,500)" Net loss arising during period " (1,333)" 333 " (1,000)" "Defined benefit pension plans, net" " (3,333)" 833 " (2,500)" Other comprehensive income " $22,666 " " $(5,666)" " $17,000 " ##### [220-10-55-8B](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-8B) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:b4200d7df6cdc6e7a3fcc47fcfd4030c70a1c1e252ed82b4daa96a532efdb4ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Alternatively, the tax amounts for each component can be presented in the statement in which each component of other comprehensive income is presented. ##### [220-10-55-9](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:cba00423fe66384260e1d9001cca71bc38d752cf1fb6eedb8c5d7cbf9a24c4c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the statements of net income and other comprehensive income for the year ended December 31, 201X, with other comprehensive income components presented net of tax effects. - ![](https://asc.understandingaccounting.org/asc-img/GUID-2D8862C3-046B-4E44-88C6-58277FC133B1-low.gif) Entity XYZ Consolidated Statement of Comprehensive Income " Year Ended December 31, 201X" Revenues " $140,000 " Expenses " (65,700)" Other gains and losses " 8,000 " Gains on sale of securities " 2,500 " Income from operations before tax " 125,000 " " 84,800 " Income tax expense " (31,250)" " (21,200)" \[Net income " 63,250 " " 63,600 " \] Less: net income attributable to the noncontrolling interest " (12,720)" Net income attributable to Entity XYZ " $50,880 " Earnings per share Basic and diluted 0.46 0.46 (b) "This illustrates the gross display. Alternatively, a net display can be used, with disclosure of the gross amounts (current-period gain and reclassification adjustment) in the notes to the financial statements." (c) "This illustrates the gross display. Alternatively, a net display can be used, with disclosure of the gross amounts (prior service cost and net loss for the defined benefit pension plans less amortization of prior service cost) in the notes to financial statements." - ![](https://asc.understandingaccounting.org/asc-img/GUID-D603A9CB-64E4-42AC-BCBB-42EF72134C25-low.gif) Entity XYZ Statement of Consolidated Comprehensive Income " Year Ended December 31, 201X" Net income " $63,600 " "Other comprehensive income, net of tax:" Foreign currency translation adjustments (a) " 8,000 " Unrealized gains on debt securities: (b) Unrealized holding gains arising during period " $13,000 " Less: reclassification adjustment for gains included in net income " (1,500)" " 11,500 " Defined benefit pension plans: (c) Prior service cost arising during period " (1,600)" Net loss arising during period " (1,000)" Less: amortization of prior service cost included in net periodic pension cost 100 " (2,500)" \[Other comprehensive income " 17,000 " \] \[ Comprehensive income " 80,600 " \] Less: comprehensive income attributable to the noncontrolling interest " (16,120)" Comprehensive income attributable to Entity XYZ shareholders " $64,480 " (a) "It is assumed that there was no sale or liquidation of an investment in a foreign entity. Therefore, there is no reclassification adjustment for this period." (b) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (current-period gain and reclassification adjustment) in the notes to the financial statements." (c) "This illustrates the gross display of amounts reclassified out of accumulated other comprehensive income. Alternatively, a net display can be used, with disclosure of the gross amounts (prior service cost and net loss for the defined benefit pension plans less amortization of prior service cost) in the notes to the financial statements." ##### [220-10-55-10](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:6d784a7641c02814003cc17dff7590b5cc9907bd4eb542b4f0eec628b15606a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-55-10A](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-10A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:634db0f5e99c5b3ecf8bc3d6403583b957ce8212e6ae3cc03ea06e19f802c624 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the presentation of accumulated other comprehensive income in the statement of financial position, as discussed in paragraph [220-10-45-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14). - ![](https://asc.understandingaccounting.org/asc-img/GUID-46D2F8A6-594D-4EB7-A1BF-221B5B531842-low.gif) Entity XYZ Consolidated Statement of Financial Position " December 31, 201X" Assets: Cash " $150,000 " Accounts receivable " 175,000 " Available-for-sale debt securities " 112,000 " Plant and equipment " 985,000 " Total assets " $1,422,000 " Liabilities: Accounts payable " $112,500 " Accrued liabilities " 78,583 " " 78,233 " Liability for pension benefits " 130,667 " Notes payable " 318,500 " Total liabilities " $640,250 " " $639,900 " Equity: Common stock " $200,000 " Paid-in capital " 400,000 " Retained earnings " 141,750 " " 111,680 " \[ Accumulated other comprehensive income " 40,000 " " 32,000 " \] Total Entity XYZ shareholders' equity " 743,680 " Noncontrolling interest " 38,420 " Total equity " 781,750 " " 782,100 " Total liabilities and equity " $1,422,000 " ##### [220-10-55-11](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:fdeaf9bcb2688cb0df02282f0918957e26b8ac6f87e342791086955bbb1dae0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the presentation of accumulated other comprehensive income in the statement of changes in equity for the year ended December 31, 201X, as discussed in paragraph [220-10-45-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14). - ![](https://asc.understandingaccounting.org/asc-img/GUID-66A9A4E5-DAD7-459F-BD62-BB2EC75E98FC-low.gif) Entity XYZ Consolidated Statement of Changes in Equity " Year Ended December 31, 201X" Total Comprehensive Income (a) "Retained Earnings" Accumulated Other Comprehensive Income Common Stock Paid-in Capital Noncontrolling Interest Beginning balance " $561,500 " " $88,500 " " $70,800 " " $23,000 " " $18,400 " " $150,000 " " $300,000 " " $22,300 " Net income " 63,250 " " 63,600 " \[ " $63,250 " " 63,250 " " 50,880 " " 12,720 " Other comprehensive income " 17,000 " " 17,000 " " 17,000 " " 13,600 " " 3,400 " Common stock issued " 150,000 " " 50,000 " " 100,000 " Dividends declared on common stock " (10,000)" " (10,000)" Ending balance " $781,750 " " $782,100 " " $141,750 " " $111,680 " " $40,000 " " $32,000 " " $200,000 " " $400,000 " " $38,420 " ##### [220-10-55-12](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:aec873ede75bdf220022f919f906a3d9eb858f742e1e276b9047e96c72c3027e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the statement of changes in equity for the year ended December 31, 201X, as discussed in paragraph [220-10-45-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14). - ![](https://asc.understandingaccounting.org/asc-img/GUID-06BEF576-58C4-45D0-9FB2-F7567AC6CBE2-low.gif) Entity XYZ Consolidated Statement of Changes in Equity " Year Ended December 31, 201X" Retained earnings Balance at January 1 " $70,800 " Net income attributable to Entity XYZ " 50,880 " Dividends declared on common stock " (10,000)" Balance at December 31 " 111,680 " Accumulated other comprehensive income Balance at January 1 " 18,400 " Other comprehensive income " 13,600 " Balance at December 31 " 32,000 " Common stock Balance at January 1 " 150,000 " Shares issued " 50,000 " Balance at December 31 " 200,000 " Paid-in capital Balance at January 1 " 300,000 " Common stock issued " 100,000 " Balance at December 31 " 400,000 " Total Entity XYZ Shareholders' Equity " 743,680 " Noncontrolling interest Balance at January 1 " 22,300 " Net income attributable to noncontrolling interest " 12,720 " OCI attributable to noncontrolling interest " 3,400 " Balance at December 31 " 38,420 " Total equity " $782,100 " ##### [220-10-55-13](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:de27b3f45fb8e11ec25d7bcd812203df1b93a2be27536d3113db6c6d05bf43d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-55-14](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:b48edc7f3b7c3f0544e6dadf43c2020f3288351bd4609ab7d658c568f8bb0786 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-55-15](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:3f11d4ed6b8305831c1ef37c895acc1cd2de20a464122dbd32c67e96b7300e47 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the disclosure of changes in the balances of each component of accumulated other comprehensive income, as required by paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A). The amounts in this illustration correspond to the amounts in the Example in paragraph [220-10-55-17E](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17E) and demonstrate the relationship between the requirements in paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A) and the requirements in paragraph [220-10-50-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-6) for this entity. - ![](https://asc.understandingaccounting.org/asc-img/GUID-1E935CF9-EE72-43A0-80B8-57543D2FF089-low.gif) Entity XYZ Notes to Financial Statements Changes in Accumulated Other Comprehensive Income by Component (a) "For the Period Ended December 31, 201X" Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Foreign Currency Items Total Beginning balance " $(1,200)" " $1,000 " " $(8,800)" " $1,300 " " $(7,700)" "Other comprehensive income before reclassifications" " 3,000 " " 2,500 " " (3,000)" " 1,000 " " 3,500 " "Amounts reclassified from accumulated other comprehensive income" (750) " (1,500)" " 4,500 " - " 2,250 " "Net current-period other comprehensive income" " 2,250 " " 1,000 " " 1,500 " " 1,000 " " 5,750 " Ending balance " $1,050 " " $2,000 " " $(7,300)" " $2,300 " " $(1,950)" (a) All amounts are net of tax. Amounts in parentheses indicate debits. ##### [220-10-55-15A](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:598d24e7634da71dbed4915ef5c43115393f6a444b5897f38d3f7ac007860e0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the disclosure of changes in the balances of each component of accumulated other comprehensive income, as required by paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A). The amounts in this illustration correspond to the amounts in the Example in paragraph [220-10-55-17F](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17F). - ![](https://asc.understandingaccounting.org/asc-img/GUID-690ADB99-C9FA-489C-9538-BB4347DDE450-low.gif) Entity ABC Notes to Financial Statements Changes in Accumulated Other Comprehensive Income by Component (a) "For the Period Ended December 31, 201X" Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Debt Securities Total Beginning balance " $(5,000)" " $8,000 " " $3,000 " "Other comprehensive income before reclassifications" " 7,000 " " 8,000 " " 15,000 " "Amounts reclassified from accumulated other comprehensive income " " (2,250)" " (3,000)" " (5,250)" "Net current-period other comprehensive income" " 4,750 " " 5,000 " " 9,750 " Ending balance $(250) " $13,000 " " $12,750 " (a) All amounts are net of tax. Amounts in parentheses indicate debits. ##### [220-10-55-15B](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15B) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:6114d5282c5b1d6881ddda169152cf3b1c6a9057a40515f4f5ef4df0ca0dd3ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The presentation of unrealized gains and losses on available-for-sale debt securities illustrated in paragraphs [220-10-55-15 through 55-15A](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15) is aggregated for simplicity and, therefore, does not necessarily comply with all of the disclosures that may be required in Topic 320 or 326 (for example, disclosures about [available-for-sale](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") with an allowance for credit losses in paragraph [326-30-45-2](https://asc.understandingaccounting.org/asc/326/30/#326-30-45-2)). ##### [220-10-55-15C](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15C) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:9d0fe700fc19db356832113f72621265f765dce811494e81abab41db631e5c4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For life insurers, amounts reclassified out of accumulated other comprehensive income exclude changes in unrealized gains and losses on available-for-sale debt securities associated with direct adjustments made to policy liabilities necessary to reflect these balances as if such unrealized gains and losses were realized. ##### [220-10-55-16](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:5e32f25a097288a7d6ff6beb9da5e3d74e5d0a3e749c1b5b8dd3b64faef50690 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Alternatively, the changes in the balances of each component of other comprehensive income included in accumulated other comprehensive income can be presented as a reconciliation in a statement of changes in equity. ##### [220-10-55-17](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:4f43aeb643e805eddd93cf17043fa06eb0094d2214c82071fa560b4c979ce0d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2011-05](https://asc.understandingaccounting.org/updates/asu-2011-05/). ##### [220-10-55-17A](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17A) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:c004a5d2d6514b989770c571a78bb1649d09b3e6237e2cf6497a98715597a4bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of reclassifications on the line items in the statement in which net income is presented, as described in paragraph [220-10-45-17](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17), should be presented on either a before-tax basis or a net-of-tax basis consistent with the entity's method of presentation for the line items in the statement where net income is presented. In either case, the total for this disclosure should agree with the total amount of reclassifications for each component of comprehensive income that complies with the presentation requirements in paragraph [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A). The illustration in paragraph [220-10-55-17E](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17E) presents the effect of reclassifications on the line items of net income on a before-tax basis, but it also shows totals for each component, which agree with the ending balances presented in paragraph [220-10-55-15](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15), which is on an after-tax basis. ##### [220-10-55-17B](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17B) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:013fec8f27005cd98714601666aa4e06d5c16cf285387ed3304e983ca971af7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity with significant defined benefit pension costs reclassified out of accumulated other comprehensive income should identify the amount of each pension cost component reclassified out of accumulated other comprehensive income and make reference to the relevant pension cost disclosure that provides greater detail about these reclassifications. ##### [220-10-55-17C](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17C) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:378658965adcb52038d20aac56ad9f0cc547a9aff08f1312fb6c8d0dcb69844e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A life insurer may make adjustments to unrealized gains and losses on available-for-sale debt securities for the effect on relevant assets and liabilities (as specified in paragraph [320-10-S99-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-S99-2) for public entities) as if the unrealized gains and losses had been realized. In such cases, the life insurer should cross-reference to the related notes. ##### [220-10-55-17D](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17D) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:44cf1edce0ddf26b8c338dc6ef60cb2c27d41e7d44765c5257b0878bcb2755d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some entities may not have a separate line item for realized gains/(losses) on the sale of securities and, instead, will include this amount as part of another line item, for example, other income/(expense). ##### [220-10-55-17E](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17E) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:fc8c6fee4c0d86c93310a959748bb33cd265b9cecad92c68a40987550536e7d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates a disclosure in a tabular format of significant amounts reclassified out of each component of accumulated other comprehensive income, as required by paragraph [220-10-50-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-50-6). The amounts used in this Example correspond to those in the Example in paragraph [220-10-55-15](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15). - ![](https://asc.understandingaccounting.org/asc-img/GUID-0FF0CF86-F733-4424-B76F-3E63DD7639AC-low.gif) Entity XYZ Notes to Financial Statements Reclassifications Out of Accumulated Other Comprehensive Income (a) "For the Period Ended December 31, 201X" "Details about Accumulated Other Comprehensive Income Components" Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income Is Presented Gains and losses on cash flow hedges Interest rate contracts " $1,000 " Interest income/(expense) Credit derivatives (500) Other income/(expense) Foreign exchange contracts " 2,500 " Sales/revenue Commodity contracts " (2,000)" Cost of sales " 1,000 " Total before tax (250) Tax (expense) or benefit $750 Net of tax "Unrealized gains and losses on available-for-sale debt securities" " $2,300 " "Realized gain/(loss) on sale of securities" (285) Impairment expense Insignificant items (15) " 2,000 " Total before tax (500) Tax (expense) or benefit " $1,500 " Net of tax Amortization of defined benefit pension items Prior-service costs " $(2,000)" (b) Other income/(expense) Transition obligation " (2,500)" (b) Other income/(expense) Actuarial gains/(losses) " (1,500)" (b) Other income/(expense) " (6,000)" Total before tax " 1,500 " Tax (expense) or benefit " $(4,500)" Net of tax Total reclassifications for the period " $(2,250)" Net of tax (a) Amounts in parentheses indicate debits to profit/loss. (b) These accumulated other comprehensive income components are components of net periodic pension cost (see pension note for additional details). ##### [220-10-55-17F](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-17F) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:6f2152d03e8a767753975e303befaa05d8dc5baa138d4252cacdc2b6a82b11d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates presentation of the effect on certain line items of net income of significant amounts reclassified out of each component of accumulated other comprehensive income, as required by paragraph [220-10-45-17A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17A). The amounts in this Example agree with the amounts in the Example in paragraph [220-10-55-15A](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-15A). This presentation should only be used if all significant reclassifications out of accumulated other comprehensive income are reclassified to net income in their entirety in the same reporting period. - ![](https://asc.understandingaccounting.org/asc-img/GUID-355325FD-8490-4C54-8CF7-C627CB8303ED-low.gif) Entity ABC Statement of Income "For the Period Ended December 31, 201X" "Revenues (includes $4,000 accumulated other comprehensive income reclassifications for net gains on cash flow hedges)" " $122,500 " "Expenses (includes ($1,000) accumulated other comprehensive income reclassifications for net losses on cash flow hedges) " " (32,000)" Other gains and losses " 5,000 " "Gain on sale of securities (includes $4,000 accumulated other comprehensive income reclassifications for unrealized net gains on available-for-sale debt securities) " " 4,000 " Income from operations before tax " 99,500 " "Income tax expense (includes ($1,750) income tax expense from reclassification items)" " (24,875)" Net income " $74,625 " ##### [220-10-55-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:8f7f3021d20b10c74f54e991423b42e6134fe63e615a2d9b8fea89fd2410acbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic requires that an entity determine [reclassification adjustments](https://asc.understandingaccounting.org/glossary/r/#reclassification-adjustments "Adjustments made to avoid double counting in comprehensive income items that are displayed as part of net income for a period that also had been displayed as part of other comprehensive income in that period or earlier periods.") for each component of other comprehensive income. An entity may present those adjustments out of accumulated other comprehensive income on the face of the statement in which other comprehensive income is presented, or it may disclose reclassification adjustments in the notes to the financial statements. Paragraphs [220-10-45-15 through 45-17](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-15) provide the guidance on reclassification adjustments. Example 1 (paragraphs [220-10-55-7 through 55-9](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-7) ) illustrates the reclassification presentation relating to unrealized gains or losses on securities and amortized prior service costs. ##### [220-10-55-19](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:51c9249ef274038d1d62b56620251f632ff513fee67b9c917a4ad6685d5d0f60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Case illustrates the calculation of reclassification adjustments for available-for-sale debt securities under paragraphs [320-10-50-1 through 50-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1) . It is intended as an illustration only; it does not represent an actual situation: 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. b Available-for-sale debt securities (Case B). ##### [220-10-55-20](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:d1763a6235c11dbbeab43bea2accb50fe17a8726f6e25cbfe4a4a4f8cd16f27a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Case B involves a nonpublic entity that follows the practice of recognizing all unrealized gains and losses on available-for-sale debt securities in other comprehensive income before recognizing them as realized gains and losses in net income. Therefore, the before-tax amount of the reclassification adjustment recognized in other comprehensive income is equal to, but opposite in sign from, the amount of the realized gain or loss recognized in net income. ##### [220-10-55-21](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:c86ee580b2d17065f9c16ad1c779695af4a47ce2486d971256729e62b55562f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [220-10-55-22](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:81543d88a8aab384ecaf34f9c0fe0848ed04ee79de5a87a4e1ae2bac01f8fd88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [220-10-55-23](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:edc23e7d180c9f0f77f2a2f8c448f5323acf236724f43a3ce4524794f204f023 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [220-10-55-24](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:0b458aaa9a01774f788f5b019f8c03be809f4ac07342fc84879bcb1bfdfb16ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The available-for-sale interest-bearing debt securities (bonds) in this Case were purchased at a premium to yield 6.5 percent. Interest income is included in net income based on the historical yield, and the bonds decline in fair value during the first two years in which they are held. ##### [220-10-55-25](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:002d09cdb4f46765b950631dc4d23a47e69e3fe8b466b8efcf3b28bf4a9448a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On December 31, 1995, registration of Micki Inc.'s 8-year, 8 percent debentures, interest payable annually, became effective and the entire issue of $10,000,000 was sold at par immediately. At the end of each of the next four years, the closing prices and the related market interest rates to maturity were as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-B22827EB-BFE1-4CFE-90AE-D10AD8C6E56E-low.gif) December 31 Price ($000) Yield (%) 1996 $102.6 7.5 1997 107.3 6.5 1998 96.1 9.0 1999 92.2 10.5 ##### [220-10-55-26](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:a3fca052e945342754d22155fed582ce08cd3f9d72e0a67b9fd157f2dd85e461 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On December 31, 1997, Entity purchased $1,000,000 of Micki Inc.'s bonds on the open market at 107.3 and classified them as available for sale. Entity continued to hold the bonds until December 31, 1999, at which time they were sold at 92.2. Entity prepared the following schedules in relation to the bonds. - ![](https://asc.understandingaccounting.org/asc-img/GUID-64AD617F-655D-4C62-B6B1-A3922C7C0DD2-low.gif) Cost-Based Carrying Amount, Interest Income, and Premium Amortization (a) (b) (c) (d) (e) Beginning Cash Interest Interest Premium Ending Carrying Received Income Amortization Carrying Year Value \[8% × par\] \[(a) × 6.5%\] \[(b) - (c)\] Value \[(a) - (d)\] 1997 $1,073,000 1998 $1,073,000 $80,000 $69,745 $10,255 1,062,745 1999 1,062,745 80,000 69,078 10,922 1,051,823 - ![](https://asc.understandingaccounting.org/asc-img/GUID-06B5FD39-8B2A-4A6E-821B-C7C626FF6329-low.gif) Calculation of Before-Tax Holding Loss (a) (b) (c) (d) (e) Year Ended Ending Change Holding Ended Carrying Fair in Fair Premium Loss 31-Dec Value Value Value Amortization \[(c) + (d)\] 1997 $1,073,000 $1,073,000 $- 1998 1,062,745 961,000 (112,000) $10,255 $(101,745) 1999 1,051,823 922,000 (39,000) 10,922 (28,078) - ![](https://asc.understandingaccounting.org/asc-img/GUID-BE152534-F17A-4CB6-8B17-A7A3259D9979-low.gif) Net-of-Tax Holding Losses (Assume a Tax Rate of 30 Percent) Before Tax Income Tax Net of Tax Holding losses recognized in other comprehensive income: Year ended December 31, 1998 $(101,745) $30,523 $(71,222) Year ended December 31, 1999 (28,078) 8,423 (19,655) Total loss $(129,823) $38,946 $(90,877) - ![](https://asc.understandingaccounting.org/asc-img/GUID-C1B2BB1A-C84F-44B4-8D95-8B217BD50015-low.gif) Amounts Reported in Net Income and Other Comprehensive Income for the Years Ended December 31, 1998 and December 31, 1999 1998 1999 Net income: Interest income $69,745 $69,078 Loss on sale of bonds (129,823) Income tax (expense) benefit (20,923) 18,223 Amounts realized in net income 48,822 (42,522) Other comprehensive income: Holding loss arising during period, net of tax (71,222) (19,655) Reclassification adjustment, net of tax 90,877 Net (loss) gain recognized in other comprehensive income (71,222) 71,222 Total impact on comprehensive income $(22,400) $28,700 ##### [220-10-55-27](https://asc.understandingaccounting.org/asc/220/10/#220-10-55-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:37.578Z to 2026-09-09T23:03:37.578Z Record version: sha256:e052b4eee48398c3cc1df55bad030dd4e726ae262c8c5f759409d1a295d6604d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following before-tax entries would be made to record the purchase, accrue interest (using the effective interest method based on cost), recognize the change in fair value, and record the sale. - ![](https://asc.understandingaccounting.org/asc-img/GUID-DB490104-49F2-4471-A326-305C473D23A0-low.gif) December 31, 1997: Investment in bonds $1,073,000 Cash $1,073,000 To record purchase of bond December 31, 1998: Cash 80,000 Investment in bonds 10,255 Interest income (to earnings) 69,745 To record interest income on the bond, amortize the premium, and record cash received Unrealized holding loss (to other comprehensive income) 101,745 Investment in bonds 101,745 To adjust carrying amount of bond to fair value Accumulated other comprehensive income 101,745 Unrealized holding loss 101,745 Interest income 69,745 Retained earnings 69,745 To close nominal accounts to real accounts at year-end December 31, 1999: Cash 80,000 Investment in bonds 10,922 Interest income (to earnings) 69,078 To record interest income on the bond, amortize the premium, and record cash received Unrealized holding loss (to other comprehensive income) 28,078 Investment in bonds 28,078 To adjust carrying amount of bond to fair value Accumulated other comprehensive income 28,078 Unrealized holding loss 28,078 To close nominal account to real account at year-end Cash 922,000 Loss on sale of securities (to earnings) 129,823 Investment in bonds 922,000 Reclassification adjustment (to other comprehensive income) 129,823 To record sale of bond Reclassification adjustment 129,823 Accumulated other comprehensive income 129,823 Retained earnings 60,745 Interest income 69,078 Loss on sale of securities 129,823 To close nominal accounts to real accounts at year-end Source downloaded (UTC): 2026-09-09T23:03:39.406Z to 2026-09-09T23:03:39.406Z Record version: sha256:1a82faf1d8d5447dbff24fe0b98cbd68491d5c9a22b3f379f202407d6e372920 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/220/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [220-10-65-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:39.406Z to 2026-09-09T23:03:39.406Z Record version: sha256:6b5a8617614d8b937b07ee4e2802da8eac9123441eb8850499fa4d70a0a4db0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2011-05, _Comprehensive Income (Topic 220): Presentation of Comprehensive Income_. ##### [220-10-65-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-65-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:39.406Z to 2026-09-09T23:03:39.406Z Record version: sha256:40c427a6a2b4ce65dfd105455a89cc4fadd1fae178603f7a6d1af1da7f17a57e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2011-12, _Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05_. ##### [220-10-65-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-65-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:39.406Z to 2026-09-09T23:03:39.406Z Record version: sha256:caddccf8460228859215803b3d18d7992cf5bab760a3d3f7b73db5b1970ac49e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/26/2015 after the end of the transition period stated in Accounting Standards Update No. 2013-02, _Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income_. ##### [220-10-65-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-65-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:39.406Z to 2026-09-09T23:03:39.406Z Record version: sha256:4b32c1859a6b27c41f0f688c3418d399d5fd9978373b29c1f45f366f8d3563d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/20/2020 after the end of the transition period stated in Accounting Standards Update No. 2018-02, _Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income_. Source downloaded (UTC): 2026-09-09T23:03:44.643Z to 2026-09-09T23:03:44.643Z Record version: sha256:ec54fb5bfd7772d20c27a1e5dbc071c678caa1c880c29847a0f59fe011e19ae8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/10/#sec-00-status) SEC content: yes ##### [220-10-S00-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:44.643Z to 2026-09-09T23:03:44.643Z Record version: sha256:19553467afce92be24ead8f85771b9ddd6e5c8b0397c280fcf4681d76fbbf962 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
220-10-S15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-S25-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-S25-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-S30-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-S45-1 through S45-8
AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-S50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
220-10-S99-1 through S99-8
AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-10-S99-2AmendedAccounting Standards Update No. 2019-0707/26/2019
220-10-S99-4AmendedAccounting Standards Update No. 2023-0307/14/2023
220-10-S99-5AmendedAccounting Standards Update No. 2023-0307/14/2023
220-10-S99-7AmendedAccounting Standards Update No. 2017-1411/22/2017
Source downloaded (UTC): 2026-09-09T23:03:47.800Z to 2026-09-09T23:03:47.800Z Record version: sha256:f35501a04e8283f37218bd8160e1ec296ca6566fde6812f65b25abbbf5768d10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-S15: SEC 15 Scope [Read section](https://asc.understandingaccounting.org/asc/220/10/#sec-15-scope) SEC content: yes #### Entities ##### [220-10-S15-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:47.800Z to 2026-09-09T23:03:47.800Z Record version: sha256:a65893cfa91d1d6e42f7de6dfad7db2f7cf474f3e9474c3eef6b08da08b6b44a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-5](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-5), Regulation S-X Rule 5-01, for entities to which this Subtopic applies. Source downloaded (UTC): 2026-09-09T23:03:51.794Z to 2026-09-09T23:03:51.794Z Record version: sha256:8e71aadc67bf224a28075008dc406468505a69bee52168d7a0c0e1bec61dc680 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/220/10/#sec-25-recognition) SEC content: yes #### Allocation of Expenses ##### [220-10-S25-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:51.794Z to 2026-09-09T23:03:51.794Z Record version: sha256:da8ad0363f890d4b1210a972430727bfc5caba68d71a5d46baa2d5c7fbbf00a0 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, Questions 1 and 4, for SEC Staff views on the allocation of expenses from a parent to its subsidiary for purposes of preparing separate financial statements. ##### [220-10-S25-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-S25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:51.794Z to 2026-09-09T23:03:51.794Z Record version: sha256:26f39ed30969678b42540abb68acdfee8d5ca8bc225d660d7bd549b8ef1ac1f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-4), SAB Topic 5.T, for SEC Staff views on the recognition of expenses paid by principal stockholders. Source downloaded (UTC): 2026-09-09T23:03:55.697Z to 2026-09-09T23:03:55.697Z Record version: sha256:d3245b542abb0b92e4c7356cff97e5a6c9c26d09affb7bd0a15ce978f4c98a1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-S30: SEC 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/220/10/#sec-30-initial-measurement) SEC content: yes #### Allocation of Expenses ##### [220-10-S30-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:55.697Z to 2026-09-09T23:03:55.697Z Record version: sha256:b335265820e8d3f95981ff8ae0a751f477ecac7452fc84b074db4b99f53aaf32 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, Questions 2 and 3, for SEC Staff views on the measurement of expenses allocated from a parent to its subsidiary for purposes of preparing separate financial statements. Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:787d8bba738ffc603f155ed5ddf60e97948028e42d93c14035dbd4968a02b367 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-S45: SEC 45 Other Presentation [Read section](https://asc.understandingaccounting.org/asc/220/10/#sec-45-other-presentation) SEC content: yes #### General Requirements ##### [220-10-S45-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:a7824ab5f10c177a2565b901cd5797f96d64855a865e9d87c97ecb101975746a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-1), Regulation S-X Rule 3-03, for the instructions to income statement requirements. #### Format ##### [220-10-S45-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:c5c3b5da18fa278226a280b9d3c987deda9671dd51cc484648aeddacf7222119 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-2), Regulation S-X Rule 5-03, for requirements pertaining to the presentation and classification of various items within the income statement. ##### [220-10-S45-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:c0a46ddc1d64100e81828e0060f115e5297af89b7ed9aad38de005a15fa552a8 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 1, for SEC Staff views on the presentation of expenses allocated from a parent to its subsidiary for purposes of preparing separate financial statements. ##### [220-10-S45-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:670bbe7f037bb33ff339bc00a3805569f34b9cf3c981fd5490942bc1d2866a46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-5), SAB Topic 4.F, for SEC Staff views on the income statement presentation for limited partnerships. ##### [220-10-S45-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:b02597b34fbf5f45b414f49346e9677decacc9ee2a2cb69b665466d91f243572 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-6), SAB Topic 7.D, for SEC Staff views on the presentation of income before depreciation and depletion in the income statement. ##### [220-10-S45-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:4d66169d69a34494f9286de1816e53031e01bef613e254f09ddcbd8aed2f4b85 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-8](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-8), SAB Topic 11.B, for SEC Staff views on excluding depreciation and depletion from cost of sales for purposes of the income statement. #### Income or Loss Applicable to Common Stock ##### [220-10-S45-7](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:2e3076895336c70ef76fcf07de62c2b374da3ccd285478387b9d3abeeca270dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-5), SAB Topic 6.B, for SEC Staff views on income statement presentation when the registrant has preferred stock dividends. #### Classification of Operating Subsidies ##### [220-10-S45-8](https://asc.understandingaccounting.org/asc/220/10/#220-10-S45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:03:57.800Z to 2026-09-09T23:03:57.800Z Record version: sha256:dd9c6be7c98ca8c5f795b1727c7bdce2d99afb4dbfa589885627bd3a80bfa8ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-7](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-7), SAB Topic 11.A, for SEC Staff views on presentation of operating subsidies within the income statement. Source downloaded (UTC): 2026-09-09T23:04:01.239Z to 2026-09-09T23:04:01.239Z Record version: sha256:bccb728be7a6259860159c7872c1495baa89f67587321546daf6bf3b8b14b888 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/10/#sec-50-disclosure) SEC content: yes #### Allocation of Expenses ##### [220-10-S50-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:01.239Z to 2026-09-09T23:04:01.239Z Record version: sha256:a5c9eacbfc148004dfff8f90cda47fbc3b96e3b0d8adc4151b362445ecf6f451 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, Questions 2 through 4, for SEC Staff views on disclosure requirements when expenses are allocated from a parent to its subsidiary for the purposes of preparing separate financial statements. Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:738c0a564101fefc1e6c122de60051aae4a33ac0d080c74a1a54d2c95406bcc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/220/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [220-10-S99-1](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:0bb6bf626b8d26916cf5fd942e126ccc309d2a1053ade7efdee8736c26da5d06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 3-03, Instructions to Statement of Comprehensive Income Requirements (17 CFR 210.3-03). - (a) The statements required shall be prepared in compliance with the applicable requirements of this regulation. - (b) If the registrant is engaged primarily (1) in the generation, transmission or distribution of electricity, the manufacture, mixing, transmission or distribution of gas, the supplying or distribution of water, or the furnishing of telephone or telegraph service; or (2) in holding securities of companies engaged in such businesses, it may at its option include statements of comprehensive income and cash flows (which may be unaudited) for the twelve-month period ending on the date of the most recent balance sheet being filed, in lieu of the statements of comprehensive income and cash flows for the interim periods specified. - (c) If a period or periods reported on include operations of a business prior to the date of acquisition, or for other reasons differ from reports previously issued for any period, the statements shall be reconciled as to sales or revenues and net income in the statement or in a note thereto with the amounts previously reported: _Provided, however,_ That such reconciliations need not be made (1) if they have been made in filings with the Commission in prior years or (2) the financial statements which are being retroactively adjusted have not previously been filed with the Commission or otherwise made public. - (d) Any unaudited interim financial statements furnished shall reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. A statement to that effect shall be included. If all such adjustments are of a normal recurring nature, a statement to that effect shall be made; otherwise, there shall be furnished information describing in appropriate detail the nature and amount of any adjustments other than normal recurring adjustments entering into the determination of the results shown. - \[45 FR 63687, Sept. 25, 1980. Redesignated at 47 FR 29836, July 9, 1982, and amended at 50 FR 25215, June 18, 1985; 50 FR 49532, Dec. 3, 1985; 57 FR 45292, Oct. 1, 1992; 64 FR 1734, Jan 12, 1999; 83 FR 50199, Oct. 4, 2018\]. ##### [220-10-S99-2](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:19f3fb042f5d4e0d222e8d8d80adc3d9ee7edeabf7ce93b03b90146343bff195 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 5-03, Statements of Comprehensive Income (17 CFR 210.5-03). - (a) The purpose of this rule is to indicate the various line items which, if applicable, and except as otherwise permitted by the Commission, should appear on the face of the statements of comprehensive income filed for the persons to whom this article pertains (see § 210.4-01(a)). - (b) If income is derived from more than one of the subcaptions described under § 210.5-03.1, each class which is not more than 10 percent of the sum of the items may be combined with another class. If these items are combined, related costs and expenses as described under § 210.5-03.2 shall be combined in the same manner. - 1\. Net sales and gross revenues. State separately: - (a) Net sales of tangible products (gross sales less discounts, returns and allowances), - (b) operating revenues of public utilities or others; - (c) income from rentals; - (d) revenues from services; and - (e) other revenues. - Amounts earned from transactions with related parties shall be disclosed as required under § 210.4-08(k). - A public utility company using a uniform system of accounts or a form for annual report prescribed by federal or state authorities, or a similar system or report, shall follow the general segregation of operating revenues and operating expenses reported under § 210.5-03.2 prescribed by such system or report. - If the total of sales and revenues reported under this caption includes excise taxes in an amount equal to 1 percent or more of such total, the amount of such excise taxes shall be shown on the face of the statement parenthetically or otherwise. - 2\. Costs and expenses applicable to sales and revenues. - State separately the amount of - (a) cost of tangible goods sold, - (b) operating expenses of public utilities or others, - (c) expenses applicable to rental income, - (d) cost of services, and - (e) expenses applicable to other revenues. - Merchandising organizations, both wholesale and retail, may include occupancy and buying costs under caption 2(a). Amounts of costs and expenses incurred from transactions with related parties shall be disclosed as required under § 210.4-08(k). - 3\. Other operating costs and expenses. State separately any material amounts not included under caption 2 above. - 4\. Selling, general and administrative expenses. - 5\. Provision for doubtful accounts and notes. - 6\. Other general expenses. Include items not normally included in caption 4 above. State separately any material item. - 7\. Non-operating income. - State separately in the statement of comprehensive income or in a note thereto amounts earned from - (a) dividends, - (b) interest on securities, - (c) profits on securities (net of losses), and - (d) miscellaneous other income. - Amounts earned from transactions in securities of related parties shall be disclosed as required under § 210.4-08(k). Material amounts included under miscellaneous other income shall be separately stated in the statement of comprehensive income or in a note thereto, indicating clearly the nature of the transactions out of which the items arose. - 8\. Interest and amortization of debt discount and expense. - 9\. Non-operating expenses. - State separately in the statement of comprehensive income or in a note thereto amounts of - (a) losses on securities (net of profits) and - (b) miscellaneous income deductions. - Material amounts included under miscellaneous income deductions shall be separately stated in the statement of comprehensive income or in a note thereto, indicating clearly the nature of the transactions out of which the items arose. - 10\. Income or loss before income tax expense and appropriate items below. - 11\. Income tax expense. Include under this caption only taxes based on income (see § 210.4-08(h)). - 12\. Equity in earnings of unconsolidated subsidiaries and 50 percent or less owned persons. State, parenthetically or in a note, the amount of dividends received from such persons. If justified by the circumstances, this item may be presented in a different position and a different manner (see § 210.4-01(a)). - 13\. Income or loss from continuing operations. - 14\. Discontinued operations. - 15-17. \[Reserved\] - 18\. Net income or loss. - 19\. Net income attributable to the noncontrolling interest. - 20\. Net income attributable to the controlling interest. - 21\. Other comprehensive income. - State separately the components of and the total for other comprehensive income. Present the components either net of related tax effects or before related tax effects with one amount shown for the aggregate income tax expense or benefit. State the amount of income tax expense or benefit allocated to each component, including reclassification adjustments, in the statement of comprehensive income or in a note. - 22\. Comprehensive income. - 23\. Comprehensive income attributable to the noncontrolling interest. - 24\. Comprehensive income attributable to the controlling interest. - 25\. Earnings per share data. - \[45 FR 63671, Sept. 25, 1980, as amended at 45 FR 76977, Nov. 21, 1980; 50 FR 25215, June 18, 1985; 74 FR 18615, Apr. 23, 2009; 83 FR 50202, Oct. 4, 2018\] #### SEC Staff Guidance ##### [220-10-S99-3](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:fe82d7275dea897542ea7ba4a3d7f8fa32875378e5bfdd9eeee79254c88193cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 1.B.1, Costs Reflected in Historical Income Statements. - Facts: A company (the registrant) operates as a subsidiary of another company (parent). Certain expenses incurred by the parent on behalf of the subsidiary have not been charged to the subsidiary in the past. The subsidiary files a registration statement under the Securities Act of 1933 in connection with an initial public offering. - Question 1: Should the subsidiary's historical income statements reflect all of the expenses that the parent incurred on its behalf? - Interpretive Response: In general, the staff believes that the historical income statements of a registrant should reflect all of its costs of doing business. Therefore, in specific situations, the staff has required the subsidiary to revise its financial statements to include certain expenses incurred by the parent on its behalf. Examples of such expenses may include, but are not necessarily limited to, the following (income taxes and interest are discussed separately below): - 1\. Officer and employee salaries, - 2\. Rent or depreciation, - 3\. Advertising, - 4\. Accounting and legal services, and - 5\. Other selling, general and administrative expenses. - When the subsidiary's financial statements have been previously reported on by independent accountants and have been used other than for internal purposes, the staff has accepted a presentation that shows income before tax as previously reported, followed by adjustments for expenses not previously allocated, income taxes, and adjusted net income. - Question 2: How should the amount of expenses incurred on the subsidiary's behalf by its parent be determined, and what disclosure is required in the financial statements? - Interpretive Response: The staff expects any expenses clearly applicable to the subsidiary to be reflected in its income statements. However, the staff understands that in some situations a reasonable method of allocating common expenses to the subsidiary (e. g., incremental or proportional cost allocation) must be chosen because specific identification of expenses is not practicable. - In these situations, the staff has required an explanation of the allocation method used in the notes to the financial statements along with management's assertion that the method used is reasonable. - In addition, since agreements with related parties are by definition not at arms length and may be changed at any time, the staff has required footnote disclosure, when practicable, of management's estimate of what the expenses (other than income taxes and interest discussed separately below) would have been on a stand alone basis, that is, the cost that would have been incurred if the subsidiary had operated as an unaffiliated entity. The disclosure has been presented for each year for which an income statement was required when such basis produced materially different results. - Question 3: What are the staff's views with respect to the accounting for and disclosure of the subsidiary's income tax expense? - Interpretive Response: Recently, a number of parent companies have sold interests in subsidiaries, but have retained sufficient ownership interests to permit continued inclusion of the subsidiaries in their consolidated tax returns. The staff believes that it is material to investors to know what the effect on income would have been if the registrant had not been eligible to be included in a consolidated income tax return with its parent. - Some of these subsidiaries have calculated their tax provision on the separate return basis, which the staff believes is the preferable method. Others, however, have used different allocation methods. - When the historical income statements in the filing do not reflect the tax provision on the separate return basis, the staff has required a pro forma income statement for the most recent year and interim period reflecting a tax provision calculated on the separate return basis.FN1 - FN1 Paragraph 40 of Statement 109 \[paragraph [740-10-30-27](https://asc.understandingaccounting.org/asc/740/10/#740-10-30-27)\] states: "The consolidated amount of current and deferred tax expense for a group that files a consolidated tax return shall be allocated among the members of the group when those members issue separate financial statements.... The method adopted... shall be systematic, rational, and consistent with the broad principles established by \[Statement 109\] \[Subtopic 740-10\]. A method that allocates current and deferred taxes to members of the group by applying \[Statement 109\] \[Subtopic 740-10\] to each member as if it were a separate taxpayer meets those criteria. - Question 4: Should the historical income statements reflect a charge for interest on intercompany debt if no such charge had been previously provided? - Interpretive Response: The staff generally believes that financial statements are more useful to investors if they reflect all costs of doing business, including interest costs. Because of the inherent difficulty in distinguishing the elements of a subsidiary's capital structure, the staff has not insisted that the historical income statements include an interest charge on intercompany debt if such a charge was not provided in the past, except when debt specifically related to the operations of the subsidiary and previously carried on the parent's books will henceforth be recorded in the subsidiary's books. In any case, financing arrangements with the parent must be discussed in a note to the financial statements. In this connection, the staff has taken the position that, where an interest charge on intercompany debt has not been provided, appropriate disclosure would include an analysis of the intercompany accounts as well as the average balance due to or from related parties for each period for which an income statement is required. The analysis of the intercompany accounts has taken the form of a listing of transactions (e. g., the allocation of costs to the subsidiary, intercompany purchases, and cash transfers between entities) for each period for which an income statement was required, reconciled to the intercompany accounts reflected in the balance sheets. ##### [220-10-S99-4](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:6eb950f9c07c7c709075c07c831f34a88456cbfef1a17894bbcf2024e9b32e2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 5.T, Accounting for Expenses or Liabilities Paid by Principal Stockholder(s). - (Replaced by SAB 107). - _Facts:_ Company X was a defendant in litigation for which the company had not recorded a liability in accordance with FASB ASC Topic 450, Contingencies. A principal stockholder FN34 of the company transfers a portion of his shares to the plaintiff to settle such litigation. If the company had settled the litigation directly, the company would have recorded the settlement as an expense. - FN34 The FASB ASC Master Glossary defines principal owners as "owners of record or known beneficial owners of more than 10 percent of the voting interests of the enterprise." - _Question:_ Must the settlement be reflected as an expense in the company's financial statements, and if so, how? - _Interpretive Response:_ Yes. The value of the shares transferred should be reflected as an expense in the company's financial statements with a corresponding credit to contributed (paid-in) capital. - The staff believes that such a transaction is similar to those described in FASB ASC paragraph [718-10-15-4](https://asc.understandingaccounting.org/asc/718/10/#718-10-15-4) (Compensation—Stock Compensation Topic), which states that "share-based payments awarded to a grantee by a related party or other holder of an economic interest FN35 in the entity as compensation for goods or services provided to the reporting entity are share-based payment transactions to be accounted for under this Topic unless the transfer is clearly for a purpose other than compensation for goods or services to the reporting entity." As explained in this paragraph, the substance of such a transaction is that the economic interest holder makes a capital contribution to the reporting entity, and the reporting entity makes a share-based payment to its grantee in exchange for goods or services provided to the reporting entity. - FN35 The FASB ASC Master Glossary defines an economic interest in an entity as "any type or form of pecuniary interest or arrangement that an entity could issue or be a party to, including equity securities; financial instruments with characteristics of equity, liabilities or both; long-term debt and other debt-financing arrangements; leases; and contractual arrangements such as management contracts, service contracts, or intellectual property licenses." Accordingly, a principal stockholder would be considered a holder of an economic interest in an entity. - The staff believes that the problem of separating the benefit to the principal stockholder from the benefit to the company cited in FASB ASC Topic 718 is not limited to transactions involving stock compensation. Therefore, similar accounting is required in this and otherFN36 transactions where a principal stockholder pays an expense for the company, unless the stockholder's action is caused by a relationship or obligation completely unrelated to his position as a stockholder or such action clearly does not benefit the company. - FN36 For example, SAB Topic 1.B indicates that the separate financial statements of a subsidiary should reflect any costs of its operations which are incurred by the parent on its behalf. Additionally, the staff notes that AICPA Technical Practice Aids §4160 also indicates that the payment by principal stockholders of a company's debt should be accounted for as a capital contribution. - Some registrants and their accountants have taken the position that since FASB ASC Topic 850, Related Party Disclosures, applies to these transactions and requires only the disclosure of material related party transactions, the staff should not analogize to the accounting called for by FASB ASC paragraph [718-10-15-4](https://asc.understandingaccounting.org/asc/718/10/#718-10-15-4) for transactions other than those specifically covered by it. The staff notes, however, that FASB ASC Topic 850 does not address the measurement of related party transactions and that, as a result, such transactions are generally recorded at the amounts indicated by their terms. FN37 However, the staff believes that transactions of the type described above differ from the typical related party transactions. - FN37 However, in some circumstances it is necessary to reflect, either in the historical financial statements or a pro forma presentation (depending on the circumstances), related party transactions at amounts other than those indicated by their terms. Two such circumstances are addressed in Staff Accounting Bulletin Topic 1.B.1, Questions 3 and 4. Another example is where the terms of a material contract with a related party are expected to change upon the completion of an offering (_i.e.,_ the principal shareholder requires payment for services which had previously been contributed by the shareholder to the company). - The transactions for which FASB ASC Topic 850 requires disclosure generally are those in which a company receives goods or services directly from, or provides goods or services directly to, a related party, and the form and terms of such transactions may be structured to produce either a direct or indirect benefit to the related party. The participation of a related party in such a transaction negates the presumption that transactions reflected in the financial statements have been consummated at arm's length. Disclosure is therefore required to compensate for the fact that, due to the related party's involvement, the terms of the transaction may produce an accounting measurement for which a more faithful measurement may not be determinable. - However, transactions of the type discussed in the facts given do not have such problems of measurement and appear to be transacted to provide a benefit to the stockholder through the enhancement or maintenance of the value of the stockholder's investment. The staff believes that the substance of such transactions is the payment of an expense of the company through contributions by the stockholder. Therefore, the staff believes it would be inappropriate to account for such transactions according to the form of the transaction. ##### [220-10-S99-5](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:183e8d4870b4055700e18211124fc546c141e6983912caf0c9c835d411f904df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 6.B, Accounting Series Release 280—General Revision Of Regulation S-X: Income Or Loss Applicable To Common Stock. - Facts: A registrant has various classes of preferred stock. Dividends on those preferred stocks and accretions of their carrying amounts cause income applicable to common stock to be less than reported net income. - Question: In ASR 280, the Commission stated that although it had determined not to mandate presentation of income or loss applicable to common stock in all cases, it believes that disclosure of that amount is of value in certain situations. In what situations should the amount be reported, where should it be reported, and how should it be computed? - Interpretive Response: Income or loss applicable to common stock should be reported on the face of the income statement FN1 when it is materially different in quantitative terms from reported net income or loss FN2 or when it is indicative of significant trends or other qualitative considerations. The amount to be reported should be computed for each period as net income or loss less: (a) dividends on preferred stock, including undeclared or unpaid dividends if cumulative; and (b) periodic increases in the carrying amounts of instruments reported as redeemable preferred stock (as discussed in Topic 3.C) or increasing rate preferred stock (as discussed in Topic 5.Q). - FN1 When a registrant reports net income and total comprehensive income in one continuous financial statement, the registrant must continue to follow the guidance set forth in the SAB Topic. One approach may be to provide a separate reconciliation of net income to income available to common stock below comprehensive income reported on a statement of income and comprehensive income. - FN2 The assessment of materiality is the responsibility of each registrant. However, absent concerns about trends or other qualitative considerations, the staff generally will not insist on the reporting of income or loss applicable to common stock if the amount differs from net income or loss by less than ten percent. ##### [220-10-S99-6](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:5f58d535eaa7c47457ce05c6621fbf625963d61d594358927f341d594d9dad40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 7.D, Income Before Depreciation. - Facts: Occasionally an income statement format will contain a subtitle or caption titled "Income before depreciation and depletion." - Question: Is this caption appropriate? - Interpretive Response: The staff objects to this presentation because in the staff's view the presentation may suggest to the reader that the amount so captioned represents cash flow for the period, which is rarely the case (see ASR 142). ##### [220-10-S99-7](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:dce6733951062ad3a3b4d49cefb7f5336ac46be80c09a9b14d8cc0d1d5d1db4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 11.A, Operating-Differential Subsidies. - Facts: Company A has received an operating-differential subsidy pursuant to the Merchant Marine Act of 1936, as amended. - Question: How should such subsidies be displayed in the statement of comprehensive income? - Interpretive Response: Revenue representing an operating-differential subsidy under the Merchant Marine Act of 1936, as amended, must be set forth as a separate line item in the statement of comprehensive income either under a revenue caption presented separately from revenue from contracts with customers accounted for under ASC Topic 606 or as credit in the costs and expenses section. ##### [220-10-S99-8](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:07.668Z to 2026-09-09T23:04:07.668Z Record version: sha256:1a14fd1c5069e4229a651e73bffe72c006f1a66af850d37608abde94bcc9dadd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 11.B, Depreciation and Depletion Excluded from Cost of Sales. - Facts: Company B excludes depreciation and depletion from cost of sales in its income statement. - Question: How should this exclusion be disclosed? - Interpretive Response: If cost of sales or operating expenses exclude charges for depreciation, depletion and amortization of property, plant and equipment, the description of the line item should read somewhat as follows: "Cost of goods sold (exclusive of items shown separately below)" or "Cost of goods sold (exclusive of depreciation shown separately below)." To avoid placing undue emphasis on "cash flow," depreciation, depletion and amortization should not be positioned in the income statement in a manner which results in reporting a figure for income before depreciation.