# ASC 220-946-45: Income Statement—Reporting Comprehensive Income — Financial Services—Investment Companies — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/220/946/#45-other-presentation-matters) 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): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:83a2485bfab97a319cbc100a91c6590e0a0e742119ee47b595a091a3ffeb2a65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/946/#45-other-presentation-matters) SEC content: no #### Statement of Operations ##### [220-946-45-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:ff473ed7b0d44d988d43630ae1bb2f32fca60408cd234b357f46e022e79d54a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the statement of operations is to present the increase or decrease in net assets resulting from all of the company's investment activities, by reporting investment income from dividends, interest, and other income less expenses, the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign-currency-denominated assets and liabilities for the period. That format helps the user understand the contribution of each aspect of investment activity to the company's overall operations. ##### [220-946-45-2](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:69788fd129b3ab55e52ddf53d0c1f84989cd72ee6a3d17154f4c71af9917f3ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This following provides guidance on presentation of all of the following captioned items in an investment company's statement of operations: 1. a Expenses 2. b Taxes 3. c Net investment income 4. d Gain or loss from investments and foreign currency transactions 5. e Net increase or decrease in net assets from operations. ##### [220-946-45-3](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:8ca7a7e58a023c3734ee6a25fe748ce3b2dc1cc1a223ca1c2781155d307935cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following expenses are commonly reported separately: 1. a Investment advisory (management) fees (or compensation) 2. b Administration fees payable to an affiliate (if accrued under a separate agreement) 3. c Shareholder service costs, including fees and expenses for the transfer agent and dividend disbursing agent 4. d Distribution ([12b-1](https://asc.understandingaccounting.org/glossary/b/#12b-1 "Rule 12b-1 in Chapter 17 of the Code of Federal Regulations is one of the regulations implementing the Investment Company Act of 1940.")) expenses 5. e Custodian fees 6. f Cost of reports to shareholders 7. g Federal and state income taxes (these expenses shall be shown separately after the income category to which they apply, such as investment income and realized or unrealized gains) 8. h Other taxes (foreign withholding taxes shall be deducted from the relevant income item and presented parenthetically or shown as a separate contra item in the income section) 9. i Interest (including interest on debt, bank borrowings, and reverse repurchase agreements) 10. j Dividends on securities sold short 11. k Professional fees 12. l Directors' or trustees' fees 13. m Registration fees and expenses. ##### [220-946-45-4](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:7d23e7a6564280d23eb8a8a3a85a55c4e2127bb3ab6220443e3c8993f0d11708 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income tax expense shall be presented by investment companies under the separate income categories (such as investment income or realized and unrealized gains) to which it applies. Taxes in certain foreign jurisdictions may be based on the net investment income and realized gains of the fund within that jurisdiction; the guidance in Topic 740 is applicable to such taxes. ##### [220-946-45-5](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:609a2f1d4dc911a8052ac7c7da368db1e6d258c878a96b168bf4c8a7c22d63ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The excess of investment income over total expenses shall be shown as net investment income (or loss). ##### [220-946-45-6](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:b4607d171e026c251b011aac759ec413f4685b275b6b6892fca999fb037fd6eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following amounts related to gain or loss from investments and foreign currency transactions shall be presented as follows: 1. a Net realized gain or loss from investments and foreign currency transactions. 1. 1 Investments. Net realized gains or losses resulting from sales or other disposals of investments shall be reported net of brokerage commissions. The net realized gains or losses from investments and net realized gains or losses from foreign currency transactions may be reported separately or may be combined. 2. 2 Foreign currency transactions. Net gains or losses from assets or liabilities denominated in foreign currencies during the period shall be reported separately. If separate reporting of foreign currency effects on realized gains or losses from investments is elected, those effects shall be included in this caption. 2. b Net increase (decrease) in unrealized appreciation or depreciation on investments and translation of assets and liabilities in foreign currencies, which comprises both of the following: 1. 1 Investments. Changes in net unrealized appreciation or depreciation during the period shall be presented in the statement of operations. The major components of unrealized appreciation or depreciation shall be presented in a manner that is consistent with the guidance provided in (a). Either combining the net unrealized gains or losses from investments with net unrealized gains or losses from foreign currency transactions or reporting them separately is permissible. Any provision for deferred taxes shall be reported separately. 2. 2 Translation of assets and liabilities in foreign currencies. The net change during the period from translating assets and liabilities denominated in foreign currencies shall be reported under the caption "Net Increase (Decrease) in Unrealized Appreciation or Depreciation on Translation of Assets and Liabilities in Foreign Currencies." 3. c Net realized and unrealized gain or loss from investments and foreign currency. The sum of the net realized gain or loss and change in unrealized gain or loss on investments and foreign-currency-denominated assets and liabilities shall be presented in the statement of operations as a net gain or loss on investments and foreign currency. ##### [220-946-45-7](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:8fc2bb6cb84e97eb0dcdcb033ec8a9fbf540fd8dddbc475c1ce95497fe575337 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The sum of net investment income or loss and net realized and unrealized gain or loss on investments and foreign currency shall be shown as a net increase or decrease in net assets resulting from operations. #### Complex Capital Structures ##### [220-946-45-8](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:f38075b9ccaa6a9be4e7fd9495802593fbd1df8bc41b2453beecf5bc8a56ded4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management investment companies that have multiple classes of shares or master-feeder structures shall apply the following guidance when preparing a statement of operations. ##### [220-946-45-9](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:43c6b8e2c1c0cc64f2dd6806442763167e6527b9de5a29c537b4caae8f88711d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Class-specific expenses shall be reported for each class of fund in the statement of operations or disclosed in the notes to financial statements. Reporting the amount of fund-level expenses allocated to each class is not required but disclosure of fund-level expenses by class in the statement of operations or in notes to financial statements is permitted. (See paragraph [946-220-50-3](https://asc.understandingaccounting.org/asc/220/946/#220-946-50-3).) ##### [220-946-45-10](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:4332857885d6430a7c5356352d49d87feaffd7678c1be5a00e568486e4995248 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For master funds, the standard reporting format for investment companies with simple capital structures shall be used. ##### [220-946-45-11](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:f2242502c690e2b09246e4231289020060b4d0e4483324afe0dd2feae9fd1a87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of operations shall report details of the feeder fund's allocated share of net investment income from the master fund (that is, present allocated interest, dividends, and expenses separately). ##### [220-946-45-12](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:81c8fd323b9d3491534be34938f38d76bb37af423dc7ec6eb6e8d9227ebd17bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement also shall report separately the feeder's allocated share of the master fund's realized and unrealized gains and losses. The total of all feeders' income, expense, and realized and unrealized gain or loss components shall agree to the corresponding totals of the master fund. Feeder funds shall present their fund-specific expenses, such as transfer agent, distribution, legal and audit expenses, and registration and directors' fees. Additionally, any fee waivers or reimbursements at the feeder-fund level shall be reported. ##### [220-946-45-13](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:ce6d8e55c52bc0e5ebc7011402ad742634cb47ee73282065d8f3f7213b200af3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income reflected on the statement of operations shall represent the net earnings received from investee funds. For example, if the investee funds are all registered investment companies the income would represent the dividends received from such investee funds. ##### [220-946-45-14](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:8f32c2c149554084ca1f2b807076899a8dcad6756406a35111ba0224363dcae7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The investor fund shall not reflect any operating expenses if the investee funds have agreed to assume certain of the investor fund expenses. To the extent the investor fund has such agreements, they shall be disclosed in the notes to financial statements. (See paragraph [946-220-50-4](https://asc.understandingaccounting.org/asc/220/946/#220-946-50-4).) ##### [220-946-45-15](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:26f76c1269a7ed9a68af31ebce45c50c66ea6d6e8d8751d04828d2d443882c5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When investing in registered investment companies, distributions received from long-term capital gains shall be reported as realized gains together with gains realized on disposition of shares of investee entities. ##### [220-946-45-16](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:e1dd4e65433c3a9c189a11ef9de2ef20b6b708f6b9e911256a94f7f30d13b6eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expenses are those incurred only at the reporting fund level. Expenses of the investee funds are embedded in the net earnings from such funds. #### Investment Partnerships ##### [220-946-45-17](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:28.222Z to 2026-09-09T23:06:28.222Z Record version: sha256:4a163adffbd8784ed5357e8508a79f639f1142775667e793dccb531aa4569645 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment partnerships shall present their statements of operations in conformity with the requirements for statements of operations of management investment companies provided beginning in paragraph [946-220-45-8](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-8).