# ASC 220-946-S99: Income Statement—Reporting Comprehensive Income — Financial Services—Investment Companies — SEC 99 SEC Materials

Source: FASB Accounting Standards Codification, Basic View

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## ASC 220-946-S99: SEC 99 SEC Materials

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#### SEC Rules, Regulations, and Interpretations

##### [220-946-S99-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-1)

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The following is the text of Regulation S-X Rule 6-07, Statements of Operations (17 CFR 210.6-07).

-   Statements of operations, or statements of comprehensive income, where applicable, filed by registered investment companies, other than issuers of face-amount certificates, subject to the special provisions of § 210.6-08 and business development companies, shall comply with the following provisions:
    
-   STATEMENTS OF OPERATIONS
    
-   1\. Investment income. State separately income from:
    
    -   (a) Dividends;
        
    -   (b) interest on securities; and
        
    -   (c) other income.
        
    -   Any other category of income which exceeds five percent of the total shown under this caption (e.g. income from non-cash dividends, income from payment-in-kind interest) shall be stated separately. If income from investments in or indebtedness of affiliates is included hereunder, such income shall be segregated under an appropriate caption subdivided to show separately income from: (1) Controlled companies; and (2) other affiliates. If income from non-cash dividends or payment-in-kind interest are included in income, the bases of recognition and measurement used in respect to such amounts shall be disclosed.
        
-   2\. Expenses.
    
    -   (a) State separately the total amount of investment advisory, management and service fees, and expenses in connection with research, selection, supervision, and custody of investments. Amounts of expenses incurred from transactions with affiliated persons shall be disclosed together with the identity of and related amount applicable to each such person accounting for five percent or more of the total expenses shown under this caption together with a description of the nature of the affiliation. Expenses incurred within the person's own organization in connection with research, selection and supervision of investments shall be stated separately. Reductions or reimbursements of management or service fees shall be shown as a negative amount or as a reduction of total expenses shown under this caption.
        
    -   (b) State separately any other expense item the amount of which exceeds five percent of the total expenses shown under this caption.
        
    -   (c) A note to the financial statements shall include information concerning management and service fees, the rate of fee, and the base and method of computation. State separately the amount and a description of any fee reductions or reimbursements representing: (1) Expense limitation agreements or commitments; and (2) offsets received from broker-dealers showing separately for each amount received or due from (i) unaffiliated persons; and (ii) affiliated persons. If no management or service fees were incurred for a period, state the reason therefor.
        
    -   (d) If any expenses were paid otherwise than in cash, state the details in a note.
        
    -   (e) State in a note to the financial statements the amount of brokerage commissions (including dealer markups) paid to affiliated broker-dealers in connection with purchase and sale of investment securities. Open-end management companies shall state in a note the net amounts of sales charges deducted from the proceeds of sale of capital shares which were retained by any affiliated principal underwriter or other affiliated broker-dealer.
        
    -   (f) State separately all amounts paid in accordance with a plan adopted under 17 CFR 270.12b-1 of this chapter. Reimbursement to the fund of expenses incurred under such plan (12b-1 expense reimbursement) shall be shown as a negative amount and deducted from current 12b-1 expenses. If 12b-1 expense reimbursements exceed current 12b-1 costs, such excess shall be shown as a negative amount used in the calculation of total expenses under this caption.
        
    -   (g)(1) Brokerage/Service Arrangements. If a broker-dealer or an affiliate of the broker-dealer has, in connection with directing the person's brokerage transactions to the broker-dealer, provided, agreed to provide, paid for, or agreed to pay for, in whole or in part, services provided to the person (other than brokerage and research services as those terms are used in section 28(e) of the Securities Exchange Act of 1934 \[15 U.S.C. 78bb(e)\]), include in the expense items set forth under this caption the amount that would have been incurred by the person for the services had it paid for the services directly in an arms-length transaction.
        
        -   (2) Expense Offset Arrangements. If the person has entered into an agreement with any other person pursuant to which such other person reduces, or pays a third party which reduces, by a specified or reasonably ascertainable amount, its fees for services provided to the person in exchange for use of the person's assets, include in the expense items set forth under this caption the amount of fees that would have been incurred by the person if the person had not entered into the agreement.
            
        -   (3) Financial Statement Presentation. Show the total amount by which expenses are increased pursuant to paragraphs (1) and (2) of this paragraph 2(g) as a corresponding reduction in total expenses under this caption. In a note to the financial statements, state separately the total amounts by which expenses are increased pursuant to paragraphs (1) and (2) of this paragraph 2(g), and list each category of expense that is increased by an amount equal to at least 5 percent of total expenses. If applicable, the note should state that the person could have employed the assets used by another person to produce income if it had not entered into an arrangement described in paragraph 2(g)(2) of this section.
            
-   3\. Interest and amortization of debt discount and expense. Provide in the body of the statements or in the footnotes, the average dollar amount of borrowings and the average interest rate.
    
-   4\. Investment income before income tax expense.
    
-   5\. Income tax expense. Include under this caption only taxes based on income.
    
-   6\. Investment income-net.
    
-   7\. Realized and unrealized gain (loss) on investments-net.
    
    -   (a) State separately the net realized gain or loss from:
        
        -   (1) Transactions in investment securities of unaffiliated issuers,
            
        -   (2) transactions in investment securities of affiliated issuers,
            
        -   (3) expiration or closing of option contracts written,
            
        -   (4) closed short positions in securities,
            
        -   (5) expiration or closing of futures contracts,
            
        -   (6) settlement of forward foreign currency contracts,
            
        -   (7) expiration or closing of swap contracts, and
            
        -   (8) transactions in other investments held during the period.
            
    -   (b) Distributions of realized gains by other investment companies shall be shown separately under this caption.
        
    -   (c) State separately the amount of the net increase or decrease during the period in the unrealized appreciation or depreciation in the value of:
        
        -   (1) Investment securities of unaffiliated issuers,
            
        -   (2) investment securities of affiliated issuers,
            
        -   (3) option contracts written,
            
        -   (4) short positions in securities,
            
        -   (5) futures contracts,
            
        -   (6) forward foreign currency contracts,
            
        -   (7) swap contracts, and
            
        -   (8) other investments held at the end of the period.
            
    -   (d) State separately any: (1) Federal income taxes and (2) other income taxes applicable to realized and unrealized gain (loss) on investments, distinguishing taxes payable currently from deferred income taxes.
        
-   8\. Net gain (loss) on investments.
    
-   9\. Net increase (decrease) in net assets resulting from operations.
    
-   \[81 FR 82012, Nov. 18, 2016; 83 FR 50202, Oct. 4, 2018\]

##### [220-946-S99-2](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-2)

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The following is the text of Regulation S-X Rule 6-08, Special Provisions Applicable to the Statements of Operations of Issuers of Face-Amount Certificates (17 CFR 210.6-08).

-   Statements of operations filed by issuers of face-amount certificates shall comply with the following provisions:
    
-   STATEMENTS OF OPERATIONS
    
-   1\. Investment income. State separately income from:
    
    -   (a) Interest on mortgages;
        
    -   (b) interest on securities;
        
    -   (c) dividends;
        
    -   (d) rental income; and
        
    -   (e) other investment income.
        
    -   If income from investments in or indebtedness of affiliates is included hereunder, such income shall be segregated under an appropriate caption subdivided to show separately income from: (1) Controlled companies; and (2) other affiliates. If non-cash dividends are included in income, the bases of recognition and measurement used in respect to such amounts shall be disclosed. Any other category of income which exceeds five percent of the total shown under this caption shall be stated separately.
        
-   2\. Investment expenses.
    
    -   (a) State separately the total amount of investment advisory, management and service fees, and expenses in connection with research, selection, supervision, and custody of investments. Amounts of expenses incurred from transactions with affiliated persons shall be disclosed together with the identity of and related amount applicable to each such person accounting for five percent or more of the total expenses shown under this caption together with a description of the nature of the affiliation. Expenses incurred within the person's own organization in connection with research, selection and supervision of investments shall be stated separately. Reductions or reimbursements of management or service fees shall be shown as a negative amount or as a reduction of total expenses shown under this caption.
        
    -   (b) State separately any other expense item the amount of which exceeds five percent of the total expenses shown under this caption.
        
    -   (c) A note to the financial statements shall include information concerning management and service fees, the rate of fee, and the base and method of computation. State separately the amount and a description of any fee reductions or reimbursements representing: (1) Expense limitation agreements or commitments; and (2) offsets received from broker-dealers showing separately for each amount received or due from: (i) Unaffiliated persons; and (ii) affiliated persons. If no management or service fees were incurred for a period, state the reason therefor.
        
    -   (d) If any expenses were paid otherwise than in cash, state the details in a note.
        
    -   (e) State in a note to the financial statements the amount of brokerage commissions (including dealer markups) paid to affiliated broker-dealers in connection with purchase and sale of investment securities.
        
-   3\. Interest and amortization of debt discount and expense.
    
-   4\. Provision for certificate reserves. State separately any provision for additional credits, or dividends, or interests, in addition to the minimum maturity or face amount specified in the certificates. State also in an appropriate manner reserve recoveries from surrenders or other causes.
    
-   5\. Investment income before income tax expense.
    
-   6\. Income tax expense. Include under this caption only taxes based on income.
    
-   7\. Investment income-net.
    
-   8\. Realized gain (loss) on investments-net.
    
    -   (a) State separately the net realized gain or loss on transactions in:
        
        -   (1) Investment securities of unaffiliated issuers,
            
        -   (2) investment securities of affiliated issuers, and
            
        -   (3) other investments.
            
    -   (b) Distributions of capital gains by other investment companies shall be shown separately under this caption.
        
    -   (c) State separately any: (1) Federal income taxes and (2) other income taxes applicable to realized gain (loss) on investments, distinguishing taxes payable currently from deferred income taxes.
        
-   9\. Net income or loss.

##### [220-946-S99-3](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-3)

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The following is the text of Regulation S-X Rule 6-09, Statements of Changes in Net Assets (17 CFR 210.6-09).

-   Statements of changes in net assets filed for persons to whom this article is applicable shall comply with the following provisions:
    
-   STATEMENTS OF CHANGES IN NET ASSETS
    
-   1\. Operations. State separately:
    
    -   (a) Investment income-net as shown by § 210.6-07.6;
        
    -   (b) realized gain (loss) on investments-net of any Federal or other income taxes applicable to such amounts;
        
    -   (c) increase (decrease) in unrealized appreciation or depreciation-net of any Federal or other income taxes applicable to such amounts; and
        
    -   (d) net increase (decrease) in net assets resulting from operations as shown by § 210.6-07.9.
        
-   2\. Net equalization charges and credits. State the net amount of accrued undivided earnings separately identified in the price of capital shares issued and repurchased.
    
-   3\. Distributions to shareholders. State total distributions to shareholders which generally come from:
    
    -   (a) Investment income-net;
        
    -   (b) realized gain from investment transactions-net; and
        
    -   (c) other sources, except tax return of capital distributions, which shall be disclosed separately.
        
-   4\. Capital share transactions.
    
    -   (a) State the increase or decrease in net assets derived from the net change in the number of outstanding shares or units.
        
    -   (b) Disclose in the body of the statements or in the notes, for each class of the person's shares, the number and value of shares issued in reinvestment of dividends as well as the number and dollar amounts received for shares sold and paid for shares redeemed.
        
-   5\. Total increase (decrease).
    
-   6\. Net assets at the beginning of the period.
    
-   7\. Net assets at the end of the period.
    

\[47 FR 56838, Dec. 21, 1982, as amended at 83 FR 50202, Oct. 4, 2018\]