# ASC Topic 220: Income Statement—Reporting Comprehensive Income Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/220/) 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 2026-09-09T23:07:32.842Z Record version: sha256:32169df23a6800c503506513cdfeadc0d3c857f2361bc20f0e013ba9ea4346cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 220 covers the presentation and disclosure of income statement and comprehensive income information; it addresses how to display items, not when to recognize or how to measure them. The core Subtopic (220-10) requires comprehensive income—net income plus other comprehensive income—to be reported in a single continuous statement or two separate but consecutive statements, with OCI components (foreign currency translation, cash flow hedges, AFS debt securities, pension/OPEB, instrument-specific credit risk) enumerated in 220-10-45-10A, tax effects allocated by component, and reclassification adjustments from AOCI reported together in one place to avoid double counting. Companion Subtopics prescribe display of specific items—unusual or infrequently occurring items as a separate component of income from continuing operations (220-20), business interruption insurance recoveries (220-30), and the new disaggregation of income statement expenses by natural category for public business entities (220-40, from ASU 2024-03)—while industry Subtopics tailor the income statement for investment companies (220-946), NFP health care entities' performance indicator (220-954), the NFP statement of activities (220-958), oil and gas (220-932), and government contractors (220-912). The unifying idea is that Topic 220 dictates where and how amounts appear in the performance statements and notes, leaving recognition and measurement to other Topics. 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. Source downloaded (UTC): 2026-09-09T23:04:10.348Z to 2026-09-09T23:04:29.662Z Record version: sha256:2f535e6b452a31dd96d7686d8a8bad3baa7c8d3ef5c7f5435748dea056321b13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20: Income Statement—Reporting Comprehensive Income — Unusual or Infrequently Occurring Items ### Machine-generated study aids ```json { "summary": "ASC 220-20 governs how an entity presents and discloses material events or transactions that are unusual in nature, infrequent in occurrence, or both. Such items must be reported as a separate component of income from continuing operations, with their nature and financial effects either shown on the face of the income statement or disclosed in the notes (220-20-45-1; 220-20-50-1). They may not be presented net of tax on the face of the income statement, and their per-share effects may not be shown there.", "key_points": [ "A material event or transaction of an unusual nature or of a type indicating infrequency of occurrence (or both) shall be reported as a separate component of income from continuing operations (220-20-45-1).", "The nature and financial effects of each such event or transaction must be either presented as a separate component of income from continuing operations or disclosed in the notes (220-20-45-1; 220-20-50-1).", "Gains or losses of a similar nature that are not individually material shall be aggregated (220-20-45-1).", "Such items shall not be reported on the face of the income statement net of income taxes, and their EPS effects shall not be presented on the face of the income statement (220-20-45-1).", "Unusual nature is judged against the entity's own environment—industry, geography, and governmental regulation—so an item may be unusual for one entity but not another; being beyond management's control does not by itself establish unusual nature (220-20-55-1).", "An event or transaction of a type not reasonably expected to recur in the foreseeable future occurs infrequently; past occurrence is evidence of the probability of recurrence (220-20-55-2).", "Interim period income taxes on significant unusual or infrequently occurring items are computed under paragraphs 740-270-30-8 through 30-12 (220-20-60-1); a pending amendment extends the disclosure to interim financial statements (transition guidance 270-10-65-1)." ], "categories": [ "Presentation", "Disclosure", "Financial statement presentation", "Income taxes" ], "audience_level": "introductory", "student_note": "Since the FASB eliminated the \"extraordinary items\" category, these items stay inside income from continuing operations—a common exam trap is showing them below the line or net of tax with an EPS figure, both of which 220-20-45-1 forbids. Remember the unusual/infrequent assessment is entity- and environment-specific, not absolute.", "related_topics": [ "220-10", "740-270", "270-10", "225-20", "360-10" ], "key_concepts": [ "unusual nature", "infrequency of occurrence", "income from continuing operations", "separate component presentation", "note disclosure", "entity environment", "net-of-tax prohibition", "earnings per share effects" ] } ``` Source downloaded (UTC): 2026-09-09T23:04:10.348Z to 2026-09-09T23:04:10.348Z Record version: sha256:785221985800eda92e089339bd6c93dc8b36a5efdbc78b9f93105a9e01a586f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/20/#00-status) SEC content: no ##### [220-20-00-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:10.348Z to 2026-09-09T23:04:10.348Z Record version: sha256:dcb115b23f4cab2d7f4efd5f4311dafd543458eaefd9ff26f8028543a46ec3d2 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
Infrequency of OccurrenceAddedMaintenance Update 2017-19 (PDF)11/15/2017
Unusual NatureAddedMaintenance Update 2017-19 (PDF)11/15/2017
220-20-05-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-20-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-20-45-1AmendedMaintenance Update 2020-18 (PDF)11/25/2020
220-20-45-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-20-50-1AmendedAccounting Standards Update No. 2025-1112/08/2025
220-20-50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-20-55-1 through 55-3
AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-20-60-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:04:12.456Z to 2026-09-09T23:04:12.456Z Record version: sha256:f9b77c3f1073447822d46fe2e6388339ee63bfa2a5c3c4485cc7808c93ec7b36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/20/#05-overview-and-background) SEC content: no ##### [220-20-05-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:12.456Z to 2026-09-09T23:04:12.456Z Record version: sha256:eca587b75ef3e86454c0040d3044c3c2ea6768b9ff9c8b6e06654cb14b4eea8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the presentation and disclosure of unusual and infrequently occurring items. Source downloaded (UTC): 2026-09-09T23:04:15.233Z to 2026-09-09T23:04:15.233Z Record version: sha256:fa3e1fb8f7ecb071fa4390d6336e670ac00a17cf8e9fa94a33155664dbb4b548 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-20-15-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:15.233Z to 2026-09-09T23:04:15.233Z Record version: sha256:1f103263387847ae81684ef8d2af93becbb7f315905db38b45bc8f8966d0ac1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 220-10-15. Source downloaded (UTC): 2026-09-09T23:04:19.748Z to 2026-09-09T23:04:19.748Z Record version: sha256:1ea01d2a15c40acf2029c300807b62a90774dccf24f598999634791f9760c4fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/20/#45-other-presentation-matters) SEC content: no #### Presentation of Unusual or Infrequently Occurring Items ##### [220-20-45-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:19.748Z to 2026-09-09T23:04:19.748Z Record version: sha256:28e727490e917eca7c4abec5eb60900ce013d8727329da18454afdfc1635b70f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A material event or transaction that an entity considers to be of an [unusual nature](https://asc.understandingaccounting.org/glossary/u/#unusual-nature "The underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity, taking into account the environment in which the entity operates (see paragraph 220-20-60-1).") or of a type that indicates [infrequency of occurrence](https://asc.understandingaccounting.org/glossary/i/#infrequency-of-occurrence "The underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future, taking into account the environment in which the entity operates (see paragraph 220-20-60-1).") or both shall be reported as a separate component of income from continuing operations. The nature and financial effects of each event or transaction shall be presented as a separate component of income from continuing operations or, alternatively, disclosed in notes to financial statements (see paragraph [220-20-50-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-50-1)). Gains or losses of a similar nature that are not individually material shall be aggregated. Such items shall not be reported on the face of the income statement net of income taxes. Similarly, the EPS effects of those items shall not be presented on the face of the income statement. Source downloaded (UTC): 2026-09-09T23:04:21.720Z to 2026-09-09T23:04:21.720Z Record version: sha256:df35b893d1409f4fb01804ade6ab1c6792e3ac71dd06614945b58373592586f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/20/#50-disclosure) SEC content: no #### Unusual or Infrequently Occurring Items ##### [220-20-50-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-50-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:04:21.720Z to 2026-09-09T23:04:21.720Z Record version: sha256:af5e04307c570eb89ffda59977d1a9658b6f693dd11784240421a057b8269230 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature and financial effects of each event or transaction that is unusual in nature or occurs infrequently or both shall be presented as a separate component of income from continuing operations or, alternatively, disclosed in notes to the 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)The nature and financial effects of each event or transaction that is unusual in nature or occurs infrequently or both shall be presented as a separate component of income from continuing operations or, alternatively, disclosed in notes to the interim and annual financial statements. Source downloaded (UTC): 2026-09-09T23:04:25.555Z to 2026-09-09T23:04:25.555Z Record version: sha256:7bcde464c25b110fc6c5a967d7d6b8dcce18c266662275185f0c618206085a05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/220/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [220-20-55-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:25.555Z to 2026-09-09T23:04:25.555Z Record version: sha256:d5ce8a70f98275bdce67b29c6b20246959f4197af7e62de74039f179047777b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The specific characteristics of the entity, such as type and scope of operations, lines of business, and operating policies should be considered in determining ordinary and typical activities of an entity. The environment in which an entity operates is a primary consideration in determining whether an underlying event or transaction is abnormal and significantly different from the ordinary and typical activities of the entity. The environment of an entity includes such factors as the characteristics of the industry or industries in which it operates, the geographical location of its operations, and the nature and extent of governmental regulation. Thus, an event or transaction may be unusual in nature for one entity but not for another because of differences in their respective environments. [Unusual nature](https://asc.understandingaccounting.org/glossary/u/#unusual-nature "The underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to, or only incidentally related to, the ordinary and typical activities of the entity, taking into account the environment in which the entity operates (see paragraph 220-20-60-1).") is not established by the fact that an event or transaction is beyond the control of management. ##### [220-20-55-2](https://asc.understandingaccounting.org/asc/220/20/#220-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:25.555Z to 2026-09-09T23:04:25.555Z Record version: sha256:ab20423afc19389cb8fdeac0b7f70c0c395278f81392529cdbc541fecbba93d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of this Subtopic, an event or transaction of a type not reasonably expected to recur in the foreseeable future is considered to occur infrequently. Determining the probability of recurrence of a particular event or transaction in the foreseeable future should take into account the environment in which an entity operates. Accordingly, a specific transaction of one entity might meet that criterion and a similar transaction of another entity might not because of different probabilities of recurrence. The past occurrence of an event or transaction for a particular entity provides evidence to assess the probability of recurrence of that type of event or transaction in the foreseeable future. ##### [220-20-55-3](https://asc.understandingaccounting.org/asc/220/20/#220-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:25.555Z to 2026-09-09T23:04:25.555Z Record version: sha256:0f56deaada004814228b6151cf4814cfd347fbd6777b2ab2f66e7694b58e3c8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are illustrative of events or transactions that are unusual in nature or occur infrequently: 1. a A large portion of a tobacco manufacturer's crops are destroyed by a hail storm. Severe damage from hail storms in the locality where the manufacturer grows tobacco is rare. 2. b A steel fabricating entity sells the only land it owns. The land was acquired 10 years ago for future expansion, but shortly thereafter the entity abandoned all plans for expansion and held the land for appreciation. 3. c An earthquake destroys one of the oil refineries owned by a large multinational oil entity. Source downloaded (UTC): 2026-09-09T23:04:27.382Z to 2026-09-09T23:04:27.382Z Record version: sha256:177dbbfeabf62f0961ed789aa107165ce6d9b933fa0c3536087de096d273f268 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-20-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/220/20/#60-relationships) SEC content: no #### Income Taxes ##### [220-20-60-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:27.382Z to 2026-09-09T23:04:27.382Z Record version: sha256:76be939972f98c493573e207bef5ec738c7082bc6cb4509f36fd316e3cea3257 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the computation of interim period income taxes applicable to significant unusual or infrequently occurring items, see paragraphs [740-270-30-8 through 30-12](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-8) . Source downloaded (UTC): 2026-09-09T23:04:31.551Z to 2026-09-09T23:04:49.642Z Record version: sha256:cf3d091c15d28685be04f1b37057a65b2574182d597700faa646eec0a8e82a36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30: Income Statement—Reporting Comprehensive Income — Business Interruption Insurance ### Machine-generated study aids ```json { "summary": "ASC 220-30 governs how an entity presents and discloses recoveries under business interruption insurance — insurance covering lost gross margin, a portion of fixed charges and expenses related to that lost margin, and extra expenses incurred to mitigate the interruption loss. The core rule is permissive on presentation: an entity may choose any classification of the recoveries in the statement of operations so long as it is not contrary to existing GAAP (220-30-45-1). In exchange for that flexibility, the Subtopic mandates note disclosure of the event and the amount and location of recoveries recognized.", "key_points": [ "The Subtopic provides only presentation and disclosure guidance for business interruption insurance; it does not establish recognition or measurement rules (220-30-05-1).", "Covered costs and losses typically include lost or unearned gross margin, a portion of fixed charges and expenses related to that lost gross margin, and other expenses incurred to reduce the interruption loss such as temporary facilities, equipment rent, and subcontractors (220-30-05-2).", "Scope follows the Overall Subtopic, Section 220-10-15 (220-30-15-1).", "An entity may choose how to classify business interruption insurance recoveries in the statement of operations, provided the classification is not contrary to existing GAAP (220-30-45-1).", "In each period recoveries are recognized, the notes must disclose the nature of the event causing the business interruption losses (220-30-50-1(a)).", "The notes must also disclose the aggregate amount of recoveries recognized during the period and the statement of operations line item(s) in which they are classified (220-30-50-1(b))." ], "categories": [ "Presentation", "Disclosure", "Financial statement presentation", "Contingencies and guarantees" ], "audience_level": "introductory", "student_note": "Exam traps center on the fact that this Subtopic gives a free choice of income statement line (it does not force extraordinary or \"other income\" treatment), but that freedom is conditioned on not violating other GAAP and on making the required disclosures. Students also wrongly assume ASC 220-30 tells you when to recognize a recovery — recognition of the insurance receivable/gain comes from other guidance (e.g., gain contingency rules), not here.", "related_topics": [ "220-10", "450-30", "610-30", "225-20" ], "key_concepts": [ "business interruption insurance", "insurance recoveries", "lost gross margin", "fixed charges and expenses", "income statement classification", "note disclosure", "extra expenses to mitigate loss" ] } ``` Source downloaded (UTC): 2026-09-09T23:04:31.551Z to 2026-09-09T23:04:31.551Z Record version: sha256:339f9db5c6b81cb8e5294da31d2351669f31dff2bc56e83c617d57a18ac3f3ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/30/#00-status) SEC content: no ##### [220-30-00-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:31.551Z to 2026-09-09T23:04:31.551Z Record version: sha256:868ee0b0f8b6dda5e8fa4397e54745c581e307965790741e3b87f7041c20b7cd 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
Business Interruption InsuranceAddedMaintenance Update 2017-19 (PDF)11/15/2017
Gross MarginAddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-05-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-05-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-45-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:04:34.795Z to 2026-09-09T23:04:34.795Z Record version: sha256:84068a31685e277e211f531dc9e39a5c88f4e31cade2426d2aba6502e55c2c50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/30/#05-overview-and-background) SEC content: no ##### [220-30-05-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:34.795Z to 2026-09-09T23:04:34.795Z Record version: sha256:1c16b45eda21434944edc250bab7be3cb054354f5612bd0b0cc2f9a281302d61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides presentation and disclosure guidance for [business interruption insurance](https://asc.understandingaccounting.org/glossary/b/#business-interruption-insurance "Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property."). ##### [220-30-05-2](https://asc.understandingaccounting.org/asc/220/30/#220-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:34.795Z to 2026-09-09T23:04:34.795Z Record version: sha256:88eac3b49b302f106ba100babffae12df20584f29f081e9e84bcccd9372f112a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The types of costs and losses covered by business interruption insurance typically include the following: 1. a [Gross margin](https://asc.understandingaccounting.org/glossary/g/#gross-margin "The excess of sales over cost of goods sold. Gross margin does not consider all operating expenses.") that was lost or not earned due to the suspension of normal operations 2. b A portion of fixed charges and expenses in relation to that lost gross margin 3. c Other expenses incurred to reduce the loss from business interruption (for example, rent of temporary facilities and equipment, use of subcontractors, and so forth). Source downloaded (UTC): 2026-09-09T23:04:38.881Z to 2026-09-09T23:04:38.881Z Record version: sha256:09d735ebf9f09cf915eb60b20275e5f0f79fcd9542ed053cf6c4faa841015c43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/30/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-30-15-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:38.881Z to 2026-09-09T23:04:38.881Z Record version: sha256:2ae8c67b0a9bee2bc282cdcaa210a039163636a0ee071bf6e8a0f0eefd250340 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 220-10-15. Source downloaded (UTC): 2026-09-09T23:04:45.505Z to 2026-09-09T23:04:45.505Z Record version: sha256:d7bad6a931d179401e539e6055772de0a27fb3395c29968241bbe3747e656e47 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/30/#45-other-presentation-matters) SEC content: no ##### [220-30-45-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:45.505Z to 2026-09-09T23:04:45.505Z Record version: sha256:d6896045fb38f7e7a18c96caec023f1e6811625a8ca86d44ae8558546a1ca356 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may choose how to classify [business interruption insurance](https://asc.understandingaccounting.org/glossary/b/#business-interruption-insurance "Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.") recoveries in the statement of operations, as long as that classification is not contrary to existing generally accepted accounting principles (GAAP). Source downloaded (UTC): 2026-09-09T23:04:47.526Z to 2026-09-09T23:04:47.526Z Record version: sha256:2b84f48bfc9f34d2d286bc7507f18977833468c4b678cddaa7d7c32b90756662 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/30/#50-disclosure) SEC content: no ##### [220-30-50-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:47.526Z to 2026-09-09T23:04:47.526Z Record version: sha256:c8f17391fdf4c38668d6f71e713ad511b01144db187dc998577e3843f2752840 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be disclosed in the notes to financial statements in the period(s) in which [business interruption insurance](https://asc.understandingaccounting.org/glossary/b/#business-interruption-insurance "Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.") recoveries are recognized: 1. a The nature of the event resulting in business interruption losses 2. b The aggregate amount of business interruption insurance recoveries recognized during the period and the line item(s) in the statement of operations in which those recoveries are classified. Source downloaded (UTC): 2026-09-09T23:04:51.666Z to 2026-09-09T23:05:14.675Z Record version: sha256:17978e4c08b825cac9e9e279d06ca5937306b6e1b652940e0e3a0128e14dbb0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-40: Income Statement—Reporting Comprehensive Income — Expense Disaggregation Disclosures ### Machine-generated study aids ```json { "summary": "ASC 220-40 (added by ASU 2024-03) requires public business entities to disaggregate, in a tabular note disclosure, each \"relevant expense caption\" presented on the face of the income statement in continuing operations into prescribed natural expense categories: purchases of inventory, employee compensation, depreciation, intangible asset amortization, and DD&A of oil-and-gas/other depletion (220-40-50-6). Other GAAP-required expense, gain, and loss items must be pulled into the same table (220-40-50-21 through 50-22), expense reimbursements must be addressed (50-26 through 50-29), and any residual must be shown as \"other items\" with a qualitative description of its composition (50-30). Entities must also disclose total selling expenses and, annually, how they define selling expenses (50-35 through 50-36).", "key_points": [ "Scope is limited to public business entities; private companies, not-for-profit entities, and employee benefit plans under Topics 960, 962, and 965 are excluded (220-40-15-2 through 15-3), and only continuing operations expenses are covered (220-40-50-2).", "A relevant expense caption is an income statement caption in continuing operations containing any category listed in 220-40-50-6; a caption consisting entirely of one such category needs no further disclosure, and equity method earnings/losses are never a relevant expense caption (220-40-50-12 through 50-13).", "The required tabular categories are purchases of inventory (Topic 330 amounts only, excluding amounts from business combinations, joint venture formations, and initial VIE consolidations), employee compensation (separately showing one-time termination benefits), depreciation, intangible asset amortization, and oil-and-gas DD&A or other depletion (220-40-50-6 through 50-7, 50-11).", "For captions containing Topic 330 inventory amounts, an entity elects either the cost-incurred basis (requiring additional 'changes in inventories' and 'other adjustments and reconciling items' captions) or the expense-incurred basis, applied consistently to all categories (220-40-50-31 through 50-34).", "Listed items in 220-40-50-21 must be shown by relevant expense caption in the same table; items in 220-40-50-22 (e.g., warranty expense, operating lease cost, credit loss provision) are included only if recognized entirely within a single relevant expense caption, and their mere presence does not make a caption relevant (220-40-50-24).", "Each relevant expense caption must show an 'other items' residual equal to the caption total less the separately disclosed amounts, with qualitative descriptions of its composition based on natural expense classification (220-40-50-30).", "Estimates or reasonable approximations are permitted (220-40-50-1, 220-40-55-2), practical expedients exist under 50-19 and 50-20, and changes in display require disclosure of the reason and recasting of prior periods unless impracticable without being a Topic 250 accounting principle change (220-40-50-3 through 50-5)." ], "categories": [ "Disclosure", "Presentation", "Financial statement presentation", "Inventory and PP&E" ], "audience_level": "intermediate", "student_note": "This is a pure disclosure standard—it changes nothing about recognition or measurement and does not require any change to the face of the income statement. The most common misunderstanding is thinking every expense caption must be disaggregated: only captions that actually contain one of the five categories in 220-40-50-6 are \"relevant,\" and items in 220-40-50-21 through 50-22 never make a caption relevant by themselves.", "related_topics": [ "330", "350-30", "360-10", "420-10", "842-20", "932-360" ], "key_concepts": [ "relevant expense caption", "expense disaggregation", "tabular format disclosure", "purchases of inventory", "employee compensation", "other items residual", "cost-incurred versus expense-incurred basis", "selling expenses" ] } ``` Source downloaded (UTC): 2026-09-09T23:04:51.666Z to 2026-09-09T23:04:51.666Z Record version: sha256:9f5629c90c99b74f69cfc4f74e6bd4b74ff6876cadd66977dd33bccdee74a7ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-40-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/40/#00-status) SEC content: no ##### [220-40-00-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:51.666Z to 2026-09-09T23:04:51.666Z Record version: sha256:cdc9d468bf8d2d58bf61a94a26f15dae5193a6f0742b831bac5041424ee3c059 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
Accretion ExpenseAddedAccounting Standards Update No. 2024-0311/04/2024
AcquireeAddedAccounting Standards Update No. 2024-0311/04/2024
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
AcquirerAddedAccounting Standards Update No. 2024-0311/04/2024
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2024-0311/04/2024
Acquisition CostsAddedAccounting Standards Update No. 2024-0311/04/2024
Asset Retirement ObligationAddedAccounting Standards Update No. 2024-0311/04/2024
BusinessAddedAccounting Standards Update No. 2024-0311/04/2024
Business CombinationAddedAccounting Standards Update No. 2024-0311/04/2024
Commencement Date of the Lease (Commencement Date)AddedAccounting Standards Update No. 2024-0311/04/2024
ContractAddedAccounting Standards Update No. 2024-0311/04/2024
Corporate Joint VentureAddedAccounting Standards Update No. 2024-0311/04/2024
CustomerAddedAccounting Standards Update No. 2024-0311/04/2024
Defined Benefit PlanAddedAccounting Standards Update No. 2024-0311/04/2024
Defined Contribution PlanAddedAccounting Standards Update No. 2024-0311/04/2024
Derivative InstrumentAddedAccounting Standards Update No. 2024-0311/04/2024
Direct Financing LeaseAddedAccounting Standards Update No. 2024-0311/04/2024
Employee (2nd def.)AddedAccounting Standards Update No. 2024-0311/04/2024
Employee CompensationAddedAccounting Standards Update No. 2024-0311/04/2024
Employee Stock Ownership PlanAddedAccounting Standards Update No. 2024-0311/04/2024
Environmental CreditAddedAccounting Standards Update No. 2026-0205/19/2026
Environmental Credit ObligationAddedAccounting Standards Update No. 2026-0205/19/2026
ExchangeAddedAccounting Standards Update No. 2025-1012/04/2025
Fair Value (2nd def.)AddedAccounting Standards Update No. 2025-1012/04/2025
Film CostsAddedAccounting Standards Update No. 2024-0311/04/2024
Finance LeaseAddedAccounting Standards Update No. 2024-0311/04/2024
Financial AssetAddedAccounting Standards Update No. 2026-0205/19/2026
Government GrantAddedAccounting Standards Update No. 2025-1012/04/2025
Hosting ArrangementAddedAccounting Standards Update No. 2024-0311/04/2024
ImpairmentAddedAccounting Standards Update No. 2024-0311/04/2024
Inactive EmployeesAddedAccounting Standards Update No. 2024-0311/04/2024
Income TaxesAddedAccounting Standards Update No. 2026-0205/19/2026
Intangible AssetsAddedAccounting Standards Update No. 2024-0311/04/2024
InventoryAddedAccounting Standards Update No. 2024-0311/04/2024
Joint VentureAddedAccounting Standards Update No. 2024-0311/04/2024
LeaseAddedAccounting Standards Update No. 2024-0311/04/2024
Lease TermAddedAccounting Standards Update No. 2024-0311/04/2024
Legal EntityAddedAccounting Standards Update No. 2024-0311/04/2024
LesseeAddedAccounting Standards Update No. 2024-0311/04/2024
LessorAddedAccounting Standards Update No. 2024-0311/04/2024
License AgreementAddedAccounting Standards Update No. 2024-0311/04/2024
Loss ContingencyAddedAccounting Standards Update No. 2024-0311/04/2024
Monetary AssetsAddedAccounting Standards Update No. 2025-1012/04/2025
Multiemployer PlanAddedAccounting Standards Update No. 2024-0311/04/2024
Natural Expense ClassificationAddedAccounting Standards Update No. 2024-0311/04/2024
Nonreciprocal Transfer (1st def.)AddedAccounting Standards Update No. 2026-0205/19/2026
Nonretirement Postemployment BenefitsAddedAccounting Standards Update No. 2024-0311/04/2024
Not-for-Profit EntityAddedAccounting Standards Update No. 2024-0311/04/2024
Oil- and Gas-Producing ActivitiesAddedAccounting Standards Update No. 2024-0311/04/2024
One-Time Employee Termination BenefitsAddedAccounting Standards Update No. 2024-0311/04/2024
Operating LeaseAddedAccounting Standards Update No. 2024-0311/04/2024
Other Postemployment BenefitsAddedAccounting Standards Update No. 2024-0311/04/2024
Pension BenefitsAddedAccounting Standards Update No. 2024-0311/04/2024
Postretirement BenefitsAddedAccounting Standards Update No. 2024-0311/04/2024
Private CompanyAddedAccounting Standards Update No. 2024-0311/04/2024
Public Business EntityAddedAccounting Standards Update No. 2024-0311/04/2024
ReinsuranceAddedAccounting Standards Update No. 2024-0311/04/2024
Right-of-Use AssetAddedAccounting Standards Update No. 2024-0311/04/2024
Sales-Type LeaseAddedAccounting Standards Update No. 2024-0311/04/2024
Security (2nd def.)AddedAccounting Standards Update No. 2024-0311/04/2024
Service Cost (Component of Net Periodic Pension Cost)AddedAccounting Standards Update No. 2024-0311/04/2024
Service Cost (Component of Net Periodic Postretirement Benefit Cost)AddedAccounting Standards Update No. 2024-0311/04/2024
Share-Based Payment ArrangementsAddedAccounting Standards Update No. 2024-0311/04/2024
Short-Term LeaseAddedAccounting Standards Update No. 2024-0311/04/2024
SubsidiaryAddedAccounting Standards Update No. 2024-0311/04/2024
Termination BenefitsAddedAccounting Standards Update No. 2024-0311/04/2024
Transaction Gain or LossAddedAccounting Standards Update No. 2024-0311/04/2024
Troubled Debt RestructuringAddedAccounting Standards Update No. 2024-0311/04/2024
Underlying AssetAddedAccounting Standards Update No. 2024-0311/04/2024
Underwriting RiskAddedAccounting Standards Update No. 2024-0311/04/2024
Variable Interest EntityAddedAccounting Standards Update No. 2024-0311/04/2024
WarrantyAddedAccounting Standards Update No. 2024-0311/04/2024
220-40-05-1AddedAccounting Standards Update No. 2024-0311/04/2024
220-40-15-1 through 15-3
AddedAccounting Standards Update No. 2024-0311/04/2024
220-40-50-1 through 50-36
AddedAccounting Standards Update No. 2024-0311/04/2024
220-40-50-21AmendedAccounting Standards Update No. 2026-0205/19/2026
220-40-50-21AmendedAccounting Standards Update No. 2025-1012/04/2025
220-40-55-1 through 55-25
AddedAccounting Standards Update No. 2024-0311/04/2024
220-40-65-1AmendedAccounting Standards Update No. 2025-0101/06/2025
220-40-65-1AddedAccounting Standards Update No. 2024-0311/04/2024
Source downloaded (UTC): 2026-09-09T23:04:54.720Z to 2026-09-09T23:04:54.720Z Record version: sha256:98f88f13ba69ed1601ae880cec38a94d48a5748ac75673c4123e511f22e546d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-40-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/40/#05-overview-and-background) SEC content: no ##### [220-40-05-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-05-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:04:54.720Z to 2026-09-09T23:04:54.720Z Record version: sha256:c98d82705491c86d835733f8136b00854786f3f82f06bf302abcdffec045c1e5 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)This Subtopic provides guidance on the disaggregation disclosure requirements for certain expense captions presented on the face of an entity’s income statement. This Subtopic also provides guidance on the disclosure of selling expenses. Source downloaded (UTC): 2026-09-09T23:04:57.683Z to 2026-09-09T23:04:57.683Z Record version: sha256:b3a371160dc7cd3d80b29ff1b49918a3b4617ac3ef9c9b9a54a6a55688c5239b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/40/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-40-15-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-15-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:04:57.683Z to 2026-09-09T23:04:57.683Z Record version: sha256:c7c515db403dfcae8398f8425f5ec8e33d9a37498407174723dabfb665bf55fe 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)This Subtopic has its own discrete scope, which is separate and distinct from the pervasive scope for this Topic as outlined in Section 220-10-15. #### Entities ##### [220-40-15-2](https://asc.understandingaccounting.org/asc/220/40/#220-40-15-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:04:57.683Z to 2026-09-09T23:04:57.683Z Record version: sha256:343a49c856ef1d693f08331d41d94a6229c9cea37d707edd6e066389e06bb355 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)The guidance in this Subtopic applies to all [public business entities](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."). ##### [220-40-15-3](https://asc.understandingaccounting.org/asc/220/40/#220-40-15-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:04:57.683Z to 2026-09-09T23:04:57.683Z Record version: sha256:cfca4e4014f28bfa61b20101fed36073435a46efd7bf81b3dea45fda0709f866 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)The guidance in this Subtopic does not apply to the following entities: 1. a [Private companies](https://asc.understandingaccounting.org/glossary/p/#private-company "An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the scope of Topics 960 through 965 on plan accounting.") 2. b [Not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") 3. c Employee benefit plans within the scope of any of the following Topics: 1. 1 Plan Accounting—Defined Benefit Pension Plans (Topic 960) 2. 2 Plan Accounting—Defined Contribution Pension Plans (Topic 962) 3. 3 Plan Accounting—Health and Welfare Benefit Plans (Topic 965). Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:9a4e5781d21514151f879f27d5699a35946bfdd915d7155eae087734eae221f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-40-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/40/#50-disclosure) SEC content: no #### Overall Guidance ##### [220-40-50-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:b80456fe76a8d0c463f0e90f56717213d999bf61bba95e15c0135920d33fe4f9 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)The objective of the disclosure requirements in this Section is to provide disaggregated information about a [public business entity’s](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") expenses to help investors: 1. a Better understand the entity’s performance 2. b Better assess the entity’s prospects for future cash flows 3. c Compare an entity’s performance over time and with that of other entities. In addition, the disclosure requirements are intended to provide information about the relative proportion and trends of each category of expense identified in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) in relation to the corresponding income statement expense caption amount in order to meet the overall objective described above. An entity shall consider the level of detail necessary to satisfy the disclosure objective and specific requirements of this Subtopic. An entity may use estimates or other methods that produce a reasonable approximation of the amounts required to be disclosed by this Subtopic. ##### [220-40-50-2](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:1c33031f2fd5959f4c0e7fbc5f349d4b399825608c2260854fff1947d6b699c8 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)This Section includes the following (all of which apply only to expenses in continuing operations): 1. a Required expense categories to be disclosed, identification of relevant expense captions, and practical expedients (see paragraphs [220-40-50-6 through 50-20](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) ) 2. b Tabular integration of other disclosure requirements (see paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) ) 3. c Disclosure of expense reimbursements included in a relevant expense caption (see paragraphs [220-40-50-26 through 50-29](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26) ) 4. d An amount and qualitative description of the composition of other items remaining in relevant expense captions (see paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30)) 5. e Disclosure of the disaggregation of relevant expense captions that contain amounts within the scope of Topic 330 on inventory (see paragraphs [220-40-50-31 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31) ) 6. f Requirements related to selling expenses (see paragraphs [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) ). ##### [220-40-50-3](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:ee367551575847a3b9453b74fbfdcca4db9a1425ccb7dcb0eb4557808028f79b 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)The requirements in this Section apply to interim and annual reporting periods, except for the requirement to disclose how an entity defines selling expenses (see paragraph [220-40-50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-36)), which only applies to annual reporting periods (or interim reporting periods if the definition is changed). An entity is required to include the disclosures listed in paragraphs [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) in a tabular format disclosure for interim reporting purposes only if the disclosure requirements referenced in those paragraphs are required in interim reporting periods by the guidance in other Topics. ##### [220-40-50-4](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:cf64f79bc53e531b432cb20d4d9cbde1b57f8252da50cdf8d585e7f2a9300d40 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)The disclosure requirements in this Section shall be applied consistently for all periods presented. If an entity changes its display of the disclosure requirements in the current reporting period as a result of a change in the election of an alternative or a change in a definition of a disclosure in this Section, the entity shall: 1. a Disclose the reason for the change in the period of the change (in the interim and annual reporting periods affected by the change) 2. b Recast the prior periods presented for comparative purposes, except for the requirements in paragraphs [220-40-50-22 through 50-23](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22) , unless it is impracticable to do so. If it is impracticable to do so, the entity shall disclose that fact and explain why it is impracticable to recast prior periods. Changes described in this paragraph do not represent a change in accounting principle in accordance with Topic 250 on accounting changes and error corrections. ##### [220-40-50-5](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:6b354e91eeff95c3a07594da7615aad664049c1169795250bf014c4330a5cde3 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) Some entities provide condensed statements for interim reporting periods and, therefore, present different expense captions on their income statements at annual and interim reporting periods. For an entity that provides condensed statements for interim reporting periods, the guidance in paragraph [220-40-50-4](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-4) is applicable in instances in which an entity changes its display of the disclosure requirements for the current interim reporting period compared with the prior interim reporting period or in instances in which the entity changes its display of the disclosure requirements for the current annual reporting period compared with the prior annual reporting period. ##### [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:04c37bb35f9acb7fcac1675b9d39278fb578707a60645e416e03f58f0cd04bec 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)For interim and annual reporting periods, an entity shall disaggregate, in a tabular format disclosure in the notes to financial statements, all relevant expense captions (see paragraphs [220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12) for guidance on identifying relevant expense captions) presented on the face of the income statement in continuing operations into the following expense categories: 1. a Purchases of [inventory](https://asc.understandingaccounting.org/glossary/i/#inventory "The aggregate of those items of tangible personal property that have any of the following characteristics: Held for sale in the ordinary course of business In process of production for such sale To be currently consumed in the production of goods or services to be available for sale. The term inventory embraces goods awaiting sale (the merchandise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies). This definition of inventories excludes long-term assets subject to depreciation accounting, or goods which, when put into use, will be so classified. The fact that a depreciable asset is retired from regular use and held for sale does not indicate that the item should be classified as part of the inventory. Raw materials and supplies purchased for production may be used or consumed for the construction of long-term assets or other purposes not related to production, but the fact that inventory items representing a small portion of the total may not be absorbed ultimately in the production process does not require separate classification. By trade practice, operating materials and supplies of certain types of entities such as oil producers are usually treated as inventory.") (see paragraph [220-40-50-7](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-7)) 2. b [Employee compensation](https://asc.understandingaccounting.org/glossary/e/#employee-compensation "(P) December 16, 2026; (N) December 16, 2026220-40-65-1All forms of cash consideration (including deferred cash compensation), share-based payment arrangements, medical care benefits, pension benefits, postretirement benefits, and nonretirement postemployment benefits (including special or contractual termination benefits) given by an entity in exchange for service rendered by employees or for the termination of employment. This includes compensation cost arising from wages, salaries, profit-sharing, bonuses, one-time employee termination benefits, other postemployment benefits, employee stock ownership plans, employee share purchase plans, defined contribution plans, multiemployer plans, and any other compensation cost recognized in accordance with the guidance in Topic 710 on compensation, Topic 712 on nonretirement postemployment benefits, Topic 715 on retirement benefits, and Topic 718 on stock compensation. This also includes compulsory payments paid to the general government that confer entitlement to receive a (contingent) future social benefit, such as unemployment insurance benefits and supplements; accident, injury, and sickness benefits; old-age, disability, and survivors’ pensions; and family allowances, reimbursements for medical and hospital expenses, or provision of hospital or medical services. For defined benefit plans within the scope of Topic 715, employee compensation includes only the service cost component of net periodic pension cost and the service cost component of net periodic postretirement benefit cost.") (disclosing separately any [one-time employee termination benefits](https://asc.understandingaccounting.org/glossary/o/#one-time-employee-termination-benefits "Benefits provided to current employees that are involuntarily terminated under the terms of a one-time benefit arrangement."), if applicable, see paragraph [220-40-50-21(e)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21)) 3. c Depreciation (for separate requirement to disclose depreciation expense for the period in total, see paragraph [360-10-50-1(a)](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-1)) 4. d [Intangible asset](https://asc.understandingaccounting.org/glossary/i/#intangible-assets "Assets (not including financial assets) that lack physical substance. (The term intangible assets is used to refer to intangible assets other than goodwill.)") amortization (for separate requirement to disclose intangible asset amortization expense for the period in total, see paragraph [350-30-50-2(a)(2)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-2)) 5. e Depreciation, depletion, and amortization of capitalized acquisition, exploration, and development costs recognized as part of [oil- and gas-producing activities](https://asc.understandingaccounting.org/glossary/o/#oil-and-gas-producing-activities "Paragraph 932-10-15-2A defines the term oil- and gas-producing activities.") (see Subtopic 932-360 on extractive activities—oil and gas—property, plant, and equipment) or other amounts of depletion expense (see paragraph [220-40-50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-11)). ##### [220-40-50-7](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-7) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:238fb1b21f56175d0f7f19958d20789100f29c14674f6660366cf2aeb611bdaa 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)Purchases of inventory shall include only amounts within the scope of Topic 330 or within the scope of an Industry Subtopic in Topic 330 (collectively, Topic 330) but shall not include (regardless of the basis selected in paragraph [220-40-50-31](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31)) the amounts recognized from any of the following: 1. a A [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.") within the scope of Subtopic 805-10 on business combinations 2. b A [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") formation within the scope of Subtopic 805-60 on joint venture formations 3. c The initial consolidation of a [variable interest entity](https://asc.understandingaccounting.org/glossary/v/#variable-interest-entity "A legal entity subject to consolidation according to the provisions of the Variable Interest Entities Subsections of Subtopic 810-10.") that is not a business combination within the scope of Subtopic 810-10 on consolidation. Amounts excluded by this paragraph shall be included in the other items category, unless separately disclosed voluntarily (see paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30)). See paragraphs [220-40-50-31 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31) for additional requirements for the disaggregation of relevant expense captions that contain amounts within the scope of Topic 330. ##### [220-40-50-8](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-8) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:90caa04dd81142b4b2eb883d07e265f6ad76920d0627b027159a66b96ec03dd7 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)When applying the guidance in paragraph [220-40-50-6(b)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), an entity may elect, but is not required, to include amounts attributable to other transactions entered into for the benefit of employees (for example, the provision of subsidized goods or services) in employee compensation. For interim and annual reporting periods, an entity that includes other transactions entered into for the benefit of employees as part of employee compensation shall disclose both that those transactions have been included and a description of those transactions. ##### [220-40-50-9](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:a16939facd8d656eebc23cc3fd83753e1ae0c28447b6463bfbe8d278ceb3351d 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)The amounts provided for depreciation in accordance with paragraph [220-40-50-6(c)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) and intangible asset amortization in accordance with paragraph [220-40-50-6(d)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) shall be consistent with the classification of amounts used to satisfy the disclosure requirements for the total depreciation expense and total intangible asset amortization expense disclosures in paragraphs [360-10-50-1(a)](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-1) and [350-30-50-2(a)(2)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-2), respectively, and with the classification of amounts described in paragraph [220-40-50-10](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10). ##### [220-40-50-10](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:a3e249eba6b77d240c2623648ae02dfc531a78dec67ea01df8b1dfbd1c6ad172 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)Amortization of a [right-of-use asset](https://asc.understandingaccounting.org/glossary/r/#right-of-use-asset "An asset that represents a lessee's right to use an underlying asset for the lease term.") for a [finance lease](https://asc.understandingaccounting.org/glossary/f/#finance-lease "From the perspective of a lessee, a lease that meets one or more of the criteria in paragraph 842-10-25-2.") recognized in accordance with paragraphs [842-20-35-7 through 35-8](https://asc.understandingaccounting.org/asc/842/20/#842-20-35-7) and amortization of leasehold improvements recognized in accordance with paragraphs [842-20-35-12 through 35-13](https://asc.understandingaccounting.org/asc/842/20/#842-20-35-12) shall be disclosed in a manner consistent with how an entity presents depreciation or amortization of similar assets (see paragraph [842-20-45-4(a)](https://asc.understandingaccounting.org/asc/842/20/#842-20-45-4)). That is, amounts shall be included as part of either depreciation in paragraph [220-40-50-6(c)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) or intangible asset amortization in paragraph [220-40-50-6(d)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). ##### [220-40-50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-11) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:56ada55ba88c9d23285ae7cb3493c2fc9a3d319fc33709ed4b45610f748d851a 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)In determining the amounts to be disclosed in paragraph [220-40-50-6(e)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), an entity also shall include amounts for depletion expense that are not recognized as part of oil- and gas-producing activities in accordance with Subtopic 932-360 (such as depletion expense recognized by entities within the scope of Topic 930 on mining). ##### [220-40-50-12](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:f1319908c5ce0c2f342dca5e99f47bbf6222b41fa5ab3f27c8bbf50e758c618b 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)For the purposes of applying the guidance in this Subtopic, a relevant expense caption is an expense caption presented on the face of the income statement in continuing operations that contains any of the expenses listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) (including those described in paragraphs [220-40-50-10 through 50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10) ). A relevant expense caption that consists entirely of one expense category listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) is not subject to the requirements of this Subtopic. For example, if depreciation is a relevant expense caption on the income statement and the caption consists entirely of depreciation in accordance with paragraph [220-40-50-6(c)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), no additional disclosure is required because the information in the income statement satisfies the disclosure requirements in this Subtopic. In contrast, if the relevant expense caption comprises depreciation and intangible asset amortization, an entity would be required to separately disclose depreciation and intangible asset amortization in accordance with paragraph [220-40-50-6(c) through (d)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), respectively. Furthermore, in accordance with paragraph [220-40-50-31](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31), when a relevant expense caption contains amounts within the scope of Topic 330, an entity shall apply its chosen basis for disaggregating amounts within the scope of Topic 330 to the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). ##### [220-40-50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-13) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:e396c60ee28968e216929b598e1b4a4c12d196e76632dc6a95543c44ff7344fa 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)An entity’s share of earnings or losses from investments accounted for under the equity method in accordance with paragraph [323-10-45-1](https://asc.understandingaccounting.org/asc/323/10/#323-10-45-1) is not a relevant expense caption for purposes of applying the guidance in this Subtopic. Additionally, an entity is not required to further disaggregate its disclosure of summarized information of results of operations of investments accounted for under the equity method in accordance with paragraph [323-10-50-3(c)](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3). ##### [220-40-50-14](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-14) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:94bfb7ec993a1a890c5ba0135df62f5ce274809b5584af2e013f769072d07d32 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)With the exception of inventory disclosed under the cost-incurred basis described in paragraph [220-40-50-31(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31), an entity is not required to further disaggregate costs capitalized as an asset, even if the costs capitalized include the categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). In addition, when an expense amount relates to the derecognition of an asset other than inventory, an entity shall apply the guidance in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) based on the nature of the expense at the time that it is recognized in the income statement. ##### [220-40-50-15](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-15) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:51449a89cd92217d0f09d8ea3ea3a4e2c73e1f0d963289f6491588cae3935540 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)To illustrate the application of the requirements in paragraph [220-40-50-14](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-14), an entity is not required to further disaggregate amortization of costs to fulfill a [contract](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with a [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") into the categories required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) (for example, employee compensation). As another example, an entity that capitalizes employee compensation when self-constructing new property, plant, and equipment for internal use is not required to further disaggregate the resulting depreciation into the categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). ##### [220-40-50-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-16) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:6f31764f2f2ba0ce915c9b00df40934bc04c3426ecc7381b4989901196c0b9ee 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)An entity is not required to disaggregate an expense amount into the required expense categories as part of the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) if all of the following criteria are met: 1. a The expense relates to an obligation that will be settled in the future and there is uncertainty about the timing of settlement. 2. b The expense relates to an obligation that is based on an estimate of a future expenditure. 3. c The expense is not entirely made up of one required expense category (for example, employee compensation). An expense that meets the above criteria may be required to be disclosed in the same tabular format if it is listed in paragraphs [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) . ##### [220-40-50-17](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-17) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:571472bc21b7a78b2d2c0a7b579a1a027edb74fe9455315b5dce51c927c48e02 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)Examples of expenses that meet the criteria in paragraph [220-40-50-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-16) include provision for losses on contracts (see Subtopic 605-35 on revenue recognition—construction-type and production-type contracts), claims and claims adjustment expenses, and asset retirement obligations, among others. ##### [220-40-50-18](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-18) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:cb48edeb146827d2aa732083bb1d160e78e14d65293f3e842b91c19c68997fe0 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)Examples of expenses that do not meet the criteria in paragraph [220-40-50-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-16) include expense amounts related to accruals for liabilities to pay for goods or services that have been received or supplied but have not been paid or invoiced, including amounts due to employees (for example, amounts relating to accrued bonuses, vacation pay, or pension obligations). ##### [220-40-50-19](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-19) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:add874c69b2f3df05ce7ead0aecd729cbfd2df1d97ac4b30d806cb836fb91508 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)As a practical expedient, when substantially all of an entity’s income statement expense caption comprises purchases of inventory as described in paragraph [220-40-50-7](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-7), the entity is not required to apply the guidance in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) to that caption. An entity that applies this practical expedient shall disclose a qualitative description of the composition of the expense caption in interim and annual reporting periods. ##### [220-40-50-20](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-20) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:c0b9b078a8b59b09d2ef07fb4c7c78205df0f3eda591ca84af8f2ea56d512e2f 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)As a practical expedient for determining what amounts are classified as employee compensation in paragraph [220-40-50-6(b)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), an entity that presents an expense caption for salaries and employee benefits (or a similarly named caption) on the face of its income statement to comply with the requirements in SEC Regulation S-X Rule 210.9-04, Statements of Comprehensive Income (see paragraph [942-220-S99-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-1)), may use the amounts classified as salaries and employee benefits in accordance with SEC Regulation S-X Rule 210.9-04 rather than in accordance with the definition of employee compensation included in this Subtopic. ##### [220-40-50-21](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:a03646ee62b2826232d8b7d05f59f2eb013c968c8ac7d913af967f9fecd146ae 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)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following expenses, gains, and losses and the amount recognized in each relevant expense caption (see paragraphs [220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12) for guidance on identifying relevant expense captions): 1. a The amount of research and development assets acquired in a transaction other than a business combination and written off (see paragraph [350-30-50-1(c)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1)) 2. b Impairment loss recognized related to an intangible asset (see paragraph [350-30-50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3)) 3. c [Impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") loss of long-lived assets classified as held and used (see paragraph [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2)) 4. d Gain or loss recognized in accordance with paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) for long-lived assets classified as held for sale or disposed of (see paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3)) 5. e Each major type of cost associated with an exit or disposal activity (for example, one-time employee termination benefits, contract termination costs, and other associated costs) (see paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1)) 6. f Components of net benefit cost recognized (other than service cost amounts included within employee compensation) (see paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1)) 7. g Bargain purchase gain recognized in a business combination (see paragraph [805-30-50-1(f)](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1)) 8. h Any gain or loss recognized upon the deconsolidation of a [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.)") or the derecognition of a group of assets in accordance with paragraph [810-10-40-3A](https://asc.understandingaccounting.org/asc/810/10/#810-10-40-3A) (see paragraph [810-10-50-1B](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1B)) 9. i Gains and losses on [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") (and nonderivative instruments that are designated and qualify as hedging instruments in accordance with paragraphs [815-20-25-58](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-58) and [815-20-25-66](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-66)) and related hedged items (see paragraph [815-10-50-4A](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4A)) 10. j Amortization of [license agreements](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material (see paragraph [920-350-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2)) 11. k Impairment of license agreements for program material (see paragraph [920-350-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4)) 12. l Amortization of [film costs](https://asc.understandingaccounting.org/glossary/f/#film-costs "Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.") (see paragraph [926-20-50-4A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4A)) 13. m Impairment of film costs (see paragraph [926-20-50-4C](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4C)). These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following expenses, gains, and losses and the amount recognized in each relevant expense caption (see paragraphs [220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12) for guidance on identifying relevant expense captions): 1. a The amount of research and development assets acquired in a transaction other than a business combination and written off (see paragraph [350-30-50-1(c)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1)) 2. b Impairment loss recognized related to an intangible asset (see paragraph [350-30-50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3)) 3. c [Impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") loss of long-lived assets classified as held and used (see paragraph [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2)) 4. d Gain or loss recognized in accordance with paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) for long-lived assets classified as held for sale or disposed of (see paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3)) 5. e Each major type of cost associated with an exit or disposal activity (for example, one-time employee termination benefits, contract termination costs, and other associated costs) (see paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1)) 6. f Components of net benefit cost recognized (other than service cost amounts included within employee compensation) (see paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1)) 7. g Bargain purchase gain recognized in a business combination (see paragraph [805-30-50-1(f)](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1)) 8. h Any gain or loss recognized upon the deconsolidation of a [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.)") or the derecognition of a group of assets in accordance with paragraph [810-10-40-3A](https://asc.understandingaccounting.org/asc/810/10/#810-10-40-3A) (see paragraph [810-10-50-1B](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1B)) 9. i Gains and losses on [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") (and nonderivative instruments that are designated and qualify as hedging instruments in accordance with paragraphs [815-20-25-58](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-58) and [815-20-25-66](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-66)) and related hedged items (see paragraph [815-10-50-4A](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4A)) 10. j Amortization of [license agreements](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material (see paragraph [920-350-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2)) 11. k Impairment of license agreements for program material (see paragraph [920-350-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4)) 12. l Amortization of [film costs](https://asc.understandingaccounting.org/glossary/f/#film-costs "Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.") (see paragraph [926-20-50-4A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4A)) 13. m Impairment of film costs (see paragraph [926-20-50-4C](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4C)) 14. n The total amount of a [government grant](https://asc.understandingaccounting.org/glossary/g/#government-grant "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A transfer of a monetary asset or a tangible nonmonetary asset, other than in an exchange transaction (including an exchange transaction that may be at a significant discount to fair value), from a government to an entity except for a not-for-profit entity and an employee benefit plan within the scope of Topics 960, 962, and 965 on plan accounting.") recognized during the reporting period and presented as a deduction from the related expense (see paragraphs [832-10-45-1(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-1), [832-10-45-3(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-3), and [832-10-50-3A](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3A)). These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [818-10-65-1](https://asc.understandingaccounting.org/asc/818/10/#818-10-65-1)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following expenses, gains, and losses and the amount recognized in each relevant expense caption (see paragraphs [220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12) for guidance on identifying relevant expense captions): 1. a The amount of research and development assets acquired in a transaction other than a business combination and written off (see paragraph [350-30-50-1(c)](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-1)) 2. b Impairment loss recognized related to an intangible asset (see paragraph [350-30-50-3](https://asc.understandingaccounting.org/asc/350/30/#350-30-50-3)) 3. c [Impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") loss of long-lived assets classified as held and used (see paragraph [360-10-50-2](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-2)) 4. d Gain or loss recognized in accordance with paragraphs [360-10-35-37 through 35-45](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-37) and [360-10-40-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-5) for long-lived assets classified as held for sale or disposed of (see paragraph [360-10-50-3](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3)) 5. e Each major type of cost associated with an exit or disposal activity (for example, one-time employee termination benefits, contract termination costs, and other associated costs) (see paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1)) 6. f Components of net benefit cost recognized (other than service cost amounts included within employee compensation) (see paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1)) 7. g Bargain purchase gain recognized in a business combination (see paragraph [805-30-50-1(f)](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1)) 8. h Any gain or loss recognized upon the deconsolidation of a [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.)") or the derecognition of a group of assets in accordance with paragraph [810-10-40-3A](https://asc.understandingaccounting.org/asc/810/10/#810-10-40-3A) (see paragraph [810-10-50-1B](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1B)) 9. i Gains and losses on [derivative instruments](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.") (and nonderivative instruments that are designated and qualify as hedging instruments in accordance with paragraphs [815-20-25-58](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-58) and [815-20-25-66](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-66)) and related hedged items (see paragraph [815-10-50-4A](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4A)) 10. j Amortization of [license agreements](https://asc.understandingaccounting.org/glossary/l/#license-agreement "A typical license agreement for program material (for example, features, specials, series, or cartoons) covers several programs (a package) and grants a television station, group of stations, network, pay television, or cable television system (licensee) the right to broadcast either a specified number or an unlimited number of showings over a maximum period of time (license period) for a specified fee.") for program material (see paragraph [920-350-50-2](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-2)) 11. k Impairment of license agreements for program material (see paragraph [920-350-50-4](https://asc.understandingaccounting.org/asc/350/920/#350-920-50-4)) 12. l Amortization of [film costs](https://asc.understandingaccounting.org/glossary/f/#film-costs "Film costs include all direct negative costs incurred in the physical production of a film, as well as allocations of production overhead and capitalized interest in accordance with Topic 835. Examples of direct negative costs include costs of story and scenario; compensation of cast, directors, producers, extras, and miscellaneous staff; costs of set construction and operations, wardrobe, and accessories; costs of sound synchronization; rental facilities on location; and postproduction costs such as music, special effects, and editing.") (see paragraph [926-20-50-4A](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4A)) 13. m Impairment of film costs (see paragraph [926-20-50-4C](https://asc.understandingaccounting.org/asc/926/20/#926-20-50-4C)) 14. n The total amount of a [government grant](https://asc.understandingaccounting.org/glossary/g/#government-grant "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A transfer of a monetary asset or a tangible nonmonetary asset, other than in an exchange transaction (including an exchange transaction that may be at a significant discount to fair value), from a government to an entity except for a not-for-profit entity and an employee benefit plan within the scope of Topics 960, 962, and 965 on plan accounting.") recognized during the reporting period and presented as a deduction from the related expense (see paragraphs [832-10-45-1(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-1), [832-10-45-3(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-3), and [832-10-50-3A](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3A)) 15. o Total expense recognized for [environmental credits](https://asc.understandingaccounting.org/glossary/e/#environmental-credit "(P) December 16, 2027; (N) December 16, 2028818-10-65-1An enforceable right that is acquired, internally generated, granted by a regulatory agency or its designee(s), or received in a nonreciprocal transfer that is not a grant from a regulator or its designee(s) that meets all of the following criteria:Lacks physical substance and is not a financial asset.Is represented to prevent, control, reduce, or remove emissions or other pollution.Is, or previously was, separately transferable in an exchange transaction. If an item is no longer separately transferable in an exchange transaction, an entity must be able to use that item to satisfy an environmental credit obligation to meet this criterion.Is not an income tax credit that may be used to settle an entity’s income tax liability, regardless of whether the entity has a tax liability or intends to use the credit for that purpose.An environmental credit that meets the above criteria may exist in a variety of forms, including (but not limited to) credits, certificates, allowances, and offsets.") not initially recognized as an asset in accordance with paragraph [818-20-25-1](https://asc.understandingaccounting.org/asc/818/20/#818-20-25-1) or subsequently derecognized in accordance with paragraph [818-20-40-2](https://asc.understandingaccounting.org/asc/818/20/#818-20-40-2) (see paragraph [818-20-50-3(a)](https://asc.understandingaccounting.org/asc/818/20/#818-20-50-3)) 16. p Total impairment expense recognized during the reporting period relating to environmental credits (see paragraph [818-20-50-3(b)](https://asc.understandingaccounting.org/asc/818/20/#818-20-50-3)) 17. q Total expense recognized for [environmental credit obligation](https://asc.understandingaccounting.org/glossary/e/#environmental-credit-obligation "(P) December 16, 2027; (N) December 16, 2028818-10-65-1A regulatory compliance obligation arising from existing or enacted laws, statutes, or ordinances represented to prevent, control, reduce, or remove emissions or other pollution that may be settled with environmental credits. Obligations within the scope of Subtopic 410-30 are not environmental credit obligations.") liabilities (see paragraph [818-30-50-3](https://asc.understandingaccounting.org/asc/818/30/#818-30-50-3)). These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic. ##### [220-40-50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:e55dd553a5ea15f13a1127c7a8437df3fbb952dbd1d85152b3a0373ff265912e 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)An entity shall disclose, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, each of the following amounts if those amounts are included entirely in one expense caption that also is a relevant expense caption (see paragraphs [220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12) for guidance on identifying relevant expense captions): 1. a Provision for expected credit losses (see paragraphs [326-20-50-13](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-13) and [326-30-50-9](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-9)) 2. b Losses on firm purchase commitments (see paragraph [330-10-50-5](https://asc.understandingaccounting.org/asc/330/10/#330-10-50-5)) 3. c Amortization expense attributable to the expiration of an insurance or [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") coverage provided under a contract that transfers only significant [underwriting risk](https://asc.understandingaccounting.org/glossary/u/#underwriting-risk "The risk arising from uncertainties about the ultimate amount of net cash flows from premiums, commissions, claims, and claim settlement expenses paid under a contract.") (see paragraph [340-30-50-2](https://asc.understandingaccounting.org/asc/340/30/#340-30-50-2)) 4. d Amortization of costs to fulfill a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3)) 5. e Impairment of costs to fulfill a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3)) 6. f Amortization of costs to obtain a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3)) 7. g Impairment of costs to obtain a contract with a customer (see paragraph [340-40-50-3](https://asc.understandingaccounting.org/asc/340/40/#340-40-50-3)) 8. h Amortization of capitalized implementation costs of [hosting arrangements](https://asc.understandingaccounting.org/glossary/h/#hosting-arrangement "In connection with accessing and using software products, an arrangement in which the customer of the software does not currently have possession of the software; rather, the customer accesses and uses the software on an as-needed basis.") that are service contracts (see paragraph [350-40-50-3](https://asc.understandingaccounting.org/asc/350/40/#350-40-50-3)) 9. i [Asset retirement obligation](https://asc.understandingaccounting.org/glossary/a/#asset-retirement-obligation "An obligation associated with the retirement of a tangible long-lived asset.")[accretion expense](https://asc.understandingaccounting.org/glossary/a/#accretion-expense "An amount recognized as an expense classified as an operating item in the statement of income resulting from the increase in the carrying amount of the liability associated with the asset retirement obligation.") (see paragraph [410-20-50-1](https://asc.understandingaccounting.org/asc/410/20/#410-20-50-1)) 10. j [Loss contingencies](https://asc.understandingaccounting.org/glossary/l/#loss-contingency "An existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur. The term loss is used for convenience to include many charges against income that are commonly referred to as expenses and others that are commonly referred to as losses.") recognized (see paragraph [450-20-50-1](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-1)) 11. k [Warranty](https://asc.understandingaccounting.org/glossary/w/#warranty "A guarantee for which the underlying is related to the performance (regarding function, not price) of nonfinancial assets that are owned by the guaranteed party. The obligation may be incurred in connection with the sale of goods or services; if so, it may require further performance by the seller after the sale has taken place.") expense (the total of expenses recognized related to aggregate changes in the liability for accruals related to product warranties issued during the reporting period and the aggregate changes in the liability for accruals related to preexisting warranties, including adjustments related to changes in estimates) (see paragraph [460-10-50-8](https://asc.understandingaccounting.org/asc/460/10/#460-10-50-8)) 12. l Expense related to counterparty default in own-share lending arrangements issued in contemplation of convertible debt issuance (see paragraph [470-20-50-2C](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-2C)) 13. m Aggregate gain on restructuring of payables by a debtor with a [troubled debt restructuring](https://asc.understandingaccounting.org/glossary/t/#troubled-debt-restructuring "A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider.") (see paragraph [470-60-50-1](https://asc.understandingaccounting.org/asc/470/60/#470-60-50-1)) 14. n Gains and losses upon consolidation of a variable interest entity that is not a business (see paragraph [810-10-50-3](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-3)) 15. o Foreign currency [transaction gains or losses](https://asc.understandingaccounting.org/glossary/t/#transaction-gain-or-loss "Transaction gains or losses result from a change in exchange rates between the functional currency and the currency in which a foreign currency transaction is denominated. They represent an increase or decrease in both of the following: The actual functional currency cash flows realized upon settlement of foreign currency transactions The expected functional currency cash flows on unsettled foreign currency transactions.") (see paragraph [830-20-50-1](https://asc.understandingaccounting.org/asc/830/20/#830-20-50-1)) 16. p [Operating lease](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease.") cost (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4)) 17. q [Short-term lease](https://asc.understandingaccounting.org/glossary/s/#short-term-lease "A lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise.") cost (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4)) 18. r Variable lease cost (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4)) 19. s Net gain or loss recognized from sale and leaseback transactions (see paragraph [842-20-50-4](https://asc.understandingaccounting.org/asc/842/20/#842-20-50-4)) 20. t Gains and losses from nonmonetary transactions (see paragraph [845-10-50-1](https://asc.understandingaccounting.org/asc/845/10/#845-10-50-1)) 21. u Amortization of capitalized [acquisition costs](https://asc.understandingaccounting.org/glossary/a/#acquisition-costs "Costs that are related directly to the successful acquisition of new or renewal insurance contracts.") (see paragraph [944-30-50-1(c)](https://asc.understandingaccounting.org/asc/944/30/#944-30-50-1)). These disclosures shall be included in the tabular format disclosure required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) using the same frequency (that is, whether the disclosure is required at interim and annual reporting periods or only annual reporting periods) as required by the corresponding Topic. ##### [220-40-50-23](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-23) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:df4a45bc12b7d884cf1dcfad807f86b202ab154f1ee0b19715f74b9f8c53a3d8 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)If there is a change in facts and circumstances that results in an item listed in paragraph [220-40-50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22) changing from being included in one relevant expense caption in the current reporting period and multiple relevant expense captions in a comparative period, or vice versa, an entity shall provide the disclosure required by paragraph [205-10-50-1](https://asc.understandingaccounting.org/asc/205/10/#205-10-50-1). ##### [220-40-50-24](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-24) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:ff3adff96806ded6dfbc9c5db507437d26c4e01a6bf3e13c201ad459c36079f5 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)The presence of the expenses, gains, and losses listed in paragraphs [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) would not cause an expense caption to be a relevant expense caption. An entity only shall include the applicable expenses listed in paragraphs [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) in the tabular format disclosures if an expense caption is a relevant expense caption in accordance with paragraphs [220-40-50-12 through 50-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-12) . ##### [220-40-50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-25) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:9a6531e7b831a34587e4a84c69b148a54b9433b8f337d5fb2318a3656a5e4e5b 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)To illustrate the application of the requirements in paragraph [220-40-50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22), if cost of sales was a relevant expense caption (because cost of sales includes purchases of inventory described in paragraph [220-40-50-6(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6)) and if amortization of costs to fulfill a contract with a customer was recognized entirely in cost of sales and not in multiple expense captions presented on the face of the income statement, then amortization of costs to fulfill a contract with a customer would be required to be included as a separate category in the tabular format disclosure in addition to the categories required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). ##### [220-40-50-26](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:f773f2d056d8e526054ec1d6c921149b4b7a37ce27139c7fd9d30708303270b6 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)For interim and annual reporting periods, an entity that presents a relevant expense caption that includes amounts that are recorded net of an expense reimbursement related to a cost-sharing or cost-reimbursement arrangement from another entity, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, shall either: 1. a Separately disclose the amount of the expense reimbursement 2. b Disclose the amounts of the expense categories required by paragraphs [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) and [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) that are included in the relevant expense caption net of any reimbursement effects. ##### [220-40-50-27](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-27) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:79c89ace39eff6f64442b828bdb6e757d09d5cf899bf5baac96a2b5359285ee4 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)For interim and annual reporting periods, an entity shall disclose how expense reimbursements related to a cost-sharing or cost-reimbursement arrangement are included in the tabular format disclosure, as described in paragraph [220-40-50-26](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26). ##### [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:6438d287654a449db2264443139afb502ddfa688432e78d76e68a07114e78dd6 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)For interim and annual reporting periods, an entity that includes an expense reimbursement related to a cost-sharing or cost-reimbursement arrangement to another entity in a relevant expense caption shall separately disclose the amount of that expense reimbursement in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided. ##### [220-40-50-29](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-29) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:2a29a5d6febd280db392978b2ce0d995de775e20a3b808a93690bc69909a75e6 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)For interim and annual reporting periods, when applying the guidance in paragraph [220-40-50-26(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26) or [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28), an entity shall disclose qualitative descriptions of the expense categories (based on their [natural expense classification](https://asc.understandingaccounting.org/glossary/n/#natural-expense-classification "A method of grouping expenses according to the kinds of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, professional services, supplies, interest expense, rent, utilities, and depreciation. (P) December 16, 2026; (N) December 16, 2026220-40-65-1A method of grouping expenses according to the types of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, nonemployee professional services, supplies, interest expense, rent, utilities, and depreciation.")) to which an expense reimbursement relates. ##### [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:8dac197cbb09b163b8265b498ac19314fd1ff3999c2e466af2508061584ec674 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)For interim and annual reporting periods, an entity, in the same tabular format disclosure in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided, shall disclose for each relevant expense caption an amount for other items. The amount for other items is the difference between the following: 1. a The amount of the relevant expense caption presented on the face of the income statement 2. b The aggregate amount of expense categories separately disclosed in accordance with paragraphs [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) , [220-40-50-26(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26), and [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28) that are included in the relevant expense caption. For interim and annual reporting periods, an entity also shall disclose qualitative descriptions of the composition (based on their natural expense classification) of other items. The detail provided in those qualitative disclosures shall be commensurate with the significance of the amounts being described. Notwithstanding that requirement, an entity is not precluded from further disaggregating relevant expense captions before applying the guidance in this paragraph to the remaining other items. Additional voluntary disclosures may be provided inside or outside the tabular disclosure if those disclosures are not combined with the disaggregated expense amounts required by paragraphs [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) , [220-40-50-26(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26), and [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28). ##### [220-40-50-31](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:d7bfda7d64873f1612fa62226af7d25aa59600a7dec212c10a62b734da66719c 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)The following are two acceptable bases for disclosing the disaggregation of a relevant expense caption that contains expense amounts related to inventory within the scope of Topic 330: 1. a Cost-incurred basis. The amounts disclosed for the disaggregation of a relevant expense caption comprise costs incurred that were capitalized to inventory in accordance with Topic 330 during the current reporting period and any costs incurred that were directly expensed during the current reporting period (including costs that are capitalizable in accordance with Topic 330 but were directly expensed to the income statement). Under this basis, in interim and annual reporting periods, an entity shall disclose an amount for changes in inventories and an amount for other adjustments and reconciling items to reconcile the costs incurred to the total relevant expense caption (see paragraphs [220-40-50-32 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-32) ). 2. b Expense-incurred basis. The amounts disclosed for the disaggregation of a relevant expense caption comprise expense amounts related to the derecognition of inventory that was previously capitalized in accordance with Topic 330 and any costs incurred that were directly expensed during the current reporting period (including costs that are capitalizable in accordance with Topic 330 but were directly expensed to the income statement). Under this basis, an entity shall disclose the expense amounts related to the derecognition of inventory based on the natural expense category of the costs when they were initially incurred (for example, the expense from the derecognition of inventory may relate to purchases of inventory and employee compensation incurred in prior periods). In many cases, an entity’s chosen basis will result in disclosed amounts that are different than if the entity had chosen the alternative basis. An entity’s chosen basis should be applied consistently to all expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). ##### [220-40-50-32](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-32) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:060baccd77f43014b4586c3bc6916a8c0ff0215e7961ec906a362fc8d9d4b4ee 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)When the amounts disclosed in accordance with paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) include costs incurred that were capitalized to inventory in accordance with Topic 330 during the reporting period (because an entity has applied the cost-incurred basis in paragraph [220-40-50-31(a))](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31), those amounts often will not equal the amounts expensed as incurred during the reporting period. If the amount of expense recognized and the amount of costs incurred in the current reporting period are not equal, then an entity shall disclose in interim and annual reporting periods a category for the changes in inventories balances to reconcile the costs incurred (which shall include costs capitalized to inventory and costs expensed during the reporting period) to expenses recognized. The amount disclosed for changes in inventories in the current reporting period shall equal the difference between the amount of inventory included on the balance sheet at the end of the prior reporting period and the amount of inventory included on the balance sheet at the end of the current reporting period. As described in paragraph [220-40-50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-33), a separate category that comprises any other adjustments and reconciling items shall be provided to reconcile costs incurred to expenses recognized during the reporting period. ##### [220-40-50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-33) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:e644b260e29c9ccca0ddaa9fa6acfac8d7627e84906cb1026cd6a18ac547643d 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)In addition to the changes in inventories category described in paragraph [220-40-50-32](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-32), for interim and annual reporting periods, under the cost-incurred basis (see paragraph [220-40-50-31(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31)), an entity shall disclose the amount of other adjustments and reconciling items that include (to the extent not disclosed in a separate caption) other amounts that are necessary to reconcile costs incurred to expenses recognized. For example, those items would include, if applicable: 1. a The amount of inventory derecognized during the period that is not recognized as an expense (for example, inventory derecognized as part of derecognition transactions within the scope of Subtopic 810-10 on consolidation) 2. b The amount attributable to differences in the foreign currency exchange rates used to translate costs incurred, the beginning balance of inventory, and the ending balance of inventory in accordance with Subtopic 830-30 on foreign currency matters—translation of financial statements. ##### [220-40-50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-34) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:832b336547e12d10ed1e4e12c8cbf11503f54da02450bbb010344e619a964e28 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)Consistent with the requirements in paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30), for interim and annual reporting periods, an entity shall qualitatively describe the nature of amounts (based on their natural expense classification when applicable) included in other adjustments and reconciling items in accordance with paragraph [220-40-50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-33). ##### [220-40-50-35](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:00ad5185ddad6698324a4f3a45b3add1a16eb35a3b8791d1e8f12cb443a571b7 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)For interim and annual reporting periods, an entity shall disclose, in the notes to financial statements, the total selling expenses recognized in continuing operations. ##### [220-40-50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-36) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:04.139Z to 2026-09-09T23:05:04.139Z Record version: sha256:4381b612f4e853a306733227267a5169a53ed345512cafcd6158b7cbe6d4de6d 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)An entity shall make its own determination of what constitutes a selling expense. An entity’s definition of selling expenses shall include only items that are presented as expenses in the income statement. An entity shall disclose how it defines the term selling expenses in annual reporting periods (or in interim reporting periods if the definition is changed). Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:e6cb68e029068ec1c1ba98f50d19061506f96157ef7205c4b920bc413197968f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-40-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/220/40/#55-implementation-guidance-and-illustrations) SEC content: no ##### [220-40-55-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:e9fa159760d029f191cfad4b58e255ba8216afed07cc1d3882c618cdeff878af 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)This Section is an integral part of the requirements of this Subtopic. This Section provides additional guidance and illustrations of the disaggregation of income statement expenses and other disclosures required by paragraphs [220-40-50-1 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-1) . The illustrations are intended as examples only and do not represent a required format for the disclosures. Furthermore, there may be incremental disclosure guidance otherwise applicable to an item or amount under other generally accepted accounting principles, which has not been illustrated in this Section. Paragraphs [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6), [220-40-50-21 through 50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) , [220-40-50-26](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26), [220-40-50-28](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-28), and [220-40-50-30 through 50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30) require that an entity provide certain disclosures in a tabular format disclosure. #### Implementation Guidance ##### [220-40-55-2](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:914a2e2c0865a9132d47140d925088f7cdf2bda8076fbb05ba58c4786789bf26 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)Application of the guidance in this Subtopic might cause an entity to pursue a degree of detail in recordkeeping and computations that could be burdensome as well as unnecessary to produce a reasonable approximation of the results. Accordingly, an entity may use estimates or other methods that produce a reasonable approximation of the amounts required to be disclosed by this Subtopic. #### Illustrations ##### [220-40-55-3](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:cda4d20bb2635c749400ee2137ecd3bbc3b7b6798c3a5a943e546c24c6bfe057 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)This Example illustrates one type of tabular format disclosure that an entity could use to disclose disaggregated expense amounts in accordance with paragraphs [220-40-50-1 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-1) . This Example also illustrates the disclosure of selling expenses in accordance with paragraphs [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) . ##### [220-40-55-4](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:f6aaba8c13c73d81dbeb732008971ecd0268cadbed046b09de66215547c06686 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)For the year ended December 31, 20X4, Entity X, which is a manufacturer with significant service operations, presents the following comparative income statement. - ![](https://asc.understandingaccounting.org/asc-img/GUID-63637395-418C-414D-B9D2-827AEBF0AE5C-low.gif) "Entity X Consolidated Income Statement For the Years Ended December 31, 20X4, 20X3, and 20X2" 20X4 20X3 20X2 Revenues: Products " $82,144 " " $79,137 " " $75,180 " Services "26,132" "23,146" "21,989" Total revenues " 108,276 " " 102,283 " " 97,169 " Operating expenses: Cost of products sold "63,456" "60,898" "57,244" Cost of services " 10,496 " " 9,568 " "8,898" "Selling, general, and administrative" " 20,849 " " 18,871 " "18,116" Total operating expenses " 94,801 " " 89,337 " " 84,258 " Operating income " 13,475 " " 12,946 " " 12,911 " Interest expense "4,971" "4,213" "4,297" Income before income taxes " 8,504 " " 8,733 " " 8,614 " Income tax expense "1,786" "1,834" "1,809" Net income " $6,718 " " $6,899 " " $6,805 " ##### [220-40-55-5](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:cadd5fba24e753f93ad66cbdb9f54362c768d9797c4f8ee3682c3287301f75ee 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)Entity X provides a disclosure that disaggregates the cost of products sold; cost of services; and selling, general, and administrative expense captions into the categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). Those expense captions were identified as relevant expense captions because those captions contain one or more of the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). Even though Entity X presents other expense captions on the face of its consolidated income statement, such as interest expense and income tax expense, those expense captions do not contain any of the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) (including those described in paragraphs [220-40-50-10 through 50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10) ); therefore, those expense captions do not need to be disaggregated. ##### [220-40-55-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:b060e291b19db2e1f9f9bcfd65ca059282d7c57f3cecc0e5940e3ade060dbba7 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)Because cost of products sold contains amounts related to inventory within the scope of Topic 330, Entity X may elect to disclose the amounts under a cost-incurred basis or expense-incurred basis. In this Example, Entity X chooses to disclose the disaggregation of cost of products sold on a cost-incurred basis (that is, the amounts disclosed include costs incurred that were capitalized to inventory during the current reporting period and costs incurred that were directly expensed during the current reporting period) in accordance with paragraph [220-40-50-31(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31). Because Entity X discloses the required expense categories using a cost-incurred basis, the entity discloses the changes in inventories caption and the other adjustments and reconciling items caption in accordance with paragraphs [220-40-50-32 through 50-33](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-32) . In accordance with paragraph [220-40-50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-34), Entity X qualitatively describes the nature of amounts included in other adjustments and reconciling items. If Entity X had instead disclosed the required expense categories on an expense-incurred basis (that is, the amounts disclosed comprise expense amounts related to the derecognition of inventory that was previously capitalized in accordance with Topic 330 and any costs incurred that were directly expensed during the current reporting period) in accordance with paragraph [220-40-50-31(b)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-31), then the changes in inventories caption and the other adjustments and reconciling items caption would not be necessary in the disaggregation disclosure. ##### [220-40-55-7](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-7) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:bd9a2305dd3065474545956a9aa4544f9d8c7242b686af86b140fd2937e348da 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)Entity X also recognizes [impairment](https://asc.understandingaccounting.org/glossary/i/#impairment "Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.") of property, plant, and equipment classified as held and used in selling, general, and administrative expenses and, therefore, includes that impairment as a separate category in the tabular format disclosure in accordance with paragraph [220-40-50-21(c)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21). ##### [220-40-55-8](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-8) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:6f656116f26e82121d717cc2d66f9385753762847876c1ec8cda826e1414fb9c 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)Entity X recognizes expenses associated with [warranty](https://asc.understandingaccounting.org/glossary/w/#warranty "A guarantee for which the underlying is related to the performance (regarding function, not price) of nonfinancial assets that are owned by the guaranteed party. The obligation may be incurred in connection with the sale of goods or services; if so, it may require further performance by the seller after the sale has taken place.") accruals entirely within cost of products sold and, therefore, includes warranty expense as a separate category in accordance with paragraph [220-40-50-22(k)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22). ##### [220-40-55-9](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:505e058869c22c05e2a7f2e88918e3188e46f2ca558ca901ef0c007f9cc12084 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)Entity X recognizes [operating lease](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease.") costs in both cost of services and selling, general, and administrative expenses. Therefore, in accordance with paragraph [220-40-50-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22), Entity X is not required to separately disclose the amounts of cost of services and selling, general, and administrative expenses that are attributable to operating lease cost. Instead, those expenses are included in the amount for other items for each relevant expense caption in accordance with paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30). ##### [220-40-55-10](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-10) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:bf9ab95d115ff9093fceff325d7485fa3bad3761b196f6705fa0797f726e0150 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)Entity X recognizes amounts related to the initial recognition and subsequent measurement of a liability for an environmental obligation in cost of products sold (see Subtopic 410-30 on asset retirement and environmental obligations). In accordance with paragraph [220-40-50-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-16), Entity X is not required to disaggregate that amount into the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). Instead, that expense is included in the amount for other items in accordance with paragraph [220-40-50-30](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-30). ##### [220-40-55-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-11) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:25a0a13206f64aa5ae727c23b9a988c32dea27c401855ad8696e7fcd54152200 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)Entity X provides the following disclosure. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D773165C-2E13-4315-AA98-3F4F6E2A8BC4-low.gif) Disaggregation of Relevant Expense Captions Cost of products sold Cost of products sold 20X4 20X3 20X2 Purchases of inventory " $20,213 " " $19,199 " " $16,319 " Employee compensation "17,578" "16,539" "14,078" Depreciation " 10,190 " " 9,989 " " 9,650 " Intangible asset amortization "3,914" "4,050" "3,929" Warranty expense " 4,394 " " 3,952 " " 3,894 " Other cost of products sold (a) "7,552" "7,606" "7,993" Changes in inventories 157 (861) 843 Other adjustments and reconciling items (b) (542) 424 538 Total cost of products sold " $63,456 " " $60,898 " " $57,244 " TRUE TRUE TRUE (a) "Other cost of products sold consists primarily of amounts paid to carriers for outbound freight services related to contract fulfillment and amounts related to the measurement of a liability for an environmental obligation for the years ended December 31, 20X4, 20X3, and 20X2. Year ended December 31, 20X4, also includes inventory amounts recognized as part of a business combination." (b) "Other adjustments and reconciling items consist of reconciling adjustments attributable to differences in the foreign exchange rates used to translate beginning inventory, ending inventory, and costs incurred from various functional currencies into the reporting currency for the years ended December 31, 20X4, 20X3, and 20X2. " Cost of services Cost of services Employee compensation " $6,598 " " $5,654 " " $4,354 " Depreciation 763 765 742 Intangible asset amortization 642 670 650 Other cost of services (c) "2,493" "2,479" "3,152" Total cost of services " $10,496 " " $9,568 " " $8,898 " (c) "Other cost of services consists primarily of operating lease and travel expenses for the years ended December 31, 20X4, 20X3, and 20X2." "Selling, general, and administrative" "Selling, general, and administrative (SG&A)" Employee compensation " $13,242 " " $11,379 " " $10,764 " Depreciation " 1,454 " " 1,755 " " 1,737 " "Property, plant, and equipment impairment" 412 - - Intangible asset amortization 523 596 - Other SG&A (d) "5,218" "5,141" "5,615" Total SG&A " $20,849 " " $18,871 " " $18,116 " (d) "Other SG&A consists primarily of professional services fees and operating lease expense for the years ended December 31, 20X4, 20X3, and 20X2." ##### [220-40-55-12](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-12) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:b7fc62cad177d043795cbb5c3d1f47faddbd697a881dcdeefc344633dd43d10c 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)In addition to the tabular format disclosure illustrated in paragraph [220-40-55-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-11), Entity X also must disclose its selling expenses and how it defines selling expenses in accordance with paragraphs [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) . - _Selling Expenses_ - During the years ended December 31, 20X4, 20X3, and 20X2, selling expenses were $13,425, $12,123, and $11,585, respectively. The entity’s selling expenses include those expenses related to marketing and promotional activities and client relationship management. ##### [220-40-55-13](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-13) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:f053f74039c010f36a6ef11b2f121ca4ecc96bb7ee62c9e1cd821ec65105ce6d 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)This Example illustrates one type of tabular format disclosure that an entity could use to disclose disaggregated expense amounts in accordance with paragraphs [220-40-50-1 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-1) . This Example also illustrates the disclosure of selling expenses in accordance with paragraphs [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) . ##### [220-40-55-14](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-14) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:a976a0ef2839d8f237ff0d332726834bbcb450b4bf84378b62af08bd3861289a 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)For the year ended December 31, 20X4, Entity X, which is a services provider, presents the following comparative income statement. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D01A4FDB-0922-4D2F-ACC8-1C4E155B73D3-low.gif) "Entity X Consolidated Income Statement For the Years Ended December 31, 20X4, 20X3, and 20X2" 20X4 20X3 20X2 Revenues " $737,132 " " $710,146 " " $694,180 " Cost of sales (exclusive of depreciation and amortization shown separately below) "140,055" "170,435" "145,778" Depreciation and amortization related to cost of sales " 31,578 " " 26,178 " "23,628" "Selling, general, and administrative expenses" " 497,962 " " 458,215 " " 471,626 " Research and development expenses " 57,235 " " 52,174 " "48,898" Operating income " 10,302 " " 3,144 " " 4,250 " Interest expense "3,145" "2,665" "2,297" Income before income taxes " 7,157 " 479 " 1,953 " Income tax expense "1,503" 101 410 Net income " $5,654 " $378 " $1,543 " ##### [220-40-55-15](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-15) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:be8a8d78e3f670777f230c9c6e567cd607b9586c22a30cb625a49eb8caecc333 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)Entity X provides a disclosure that disaggregates the cost of sales; depreciation and amortization; selling, general, and administrative expenses; and research and development expenses captions into the categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). Those expense captions were identified as relevant expense captions because those captions contain one or more of the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). Even though Entity X presents other expense captions on the face of its consolidated income statement, such as interest expense and income tax expense, those expense captions do not contain any of the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) (including those described in paragraphs [220-40-50-10 through 50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10) ); therefore, those expense captions do not need to be disaggregated. ##### [220-40-55-16](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-16) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:e4c331c8c80f164f392c80df50d9d882ed69db1a4a5e4b68e6f43ba8477f17d9 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)Entity X also recognizes [one-time employee termination benefits](https://asc.understandingaccounting.org/glossary/o/#one-time-employee-termination-benefits "Benefits provided to current employees that are involuntarily terminated under the terms of a one-time benefit arrangement.") in cost of sales; selling, general, and administrative expenses; and research and development expenses and, therefore, includes this amount as a separate category in the tabular format disclosure in accordance with paragraph [220-40-50-21](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21). Paragraph [220-40-50-21(e)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) requires that an entity disclose the amount of each major type of cost associated with an exit or disposal activity (for example, one-time employee termination benefits) that is recognized in each relevant expense caption in the same tabular format in which the disclosures required by paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) are provided. Because one-time employee termination benefits are a form of employee compensation, Entity X discloses that its employee compensation category excludes one-time employee termination benefits because one-time employee termination benefits are disclosed as a separate category. ##### [220-40-55-17](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-17) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:4994ee6454d479df2701d69375937ac29e66c5e645bb3ef1e232a7f7e98c74ff 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)Entity X has a funded research and development cost-sharing arrangement with a strategic partner. Entity X recognizes an expense reimbursement from the strategic partner in research and development expenses and, in accordance with paragraph [220-40-50-26(a)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-26), elects to separately disclose the amount of that expense reimbursement. If Entity X had elected to present a relevant expense caption net of an expense reimbursement from another entity, it would have been required to disclose the amount of the expense categories that are included in each relevant expense caption. Additionally, in accordance with paragraph [220-40-50-29](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-29), Entity X qualitatively describes the expense categories to which the reimbursement relates. ##### [220-40-55-18](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-18) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:9c5a05a8ffcddadf76c5f318095b5563e68b7c3054eb727b39de34d640c7e679 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)Entity X provides the following disclosure. - ![](https://asc.understandingaccounting.org/asc-img/GUID-AC756D2C-3F46-42A3-A973-E428105C3372-low.gif) Disaggregation of Relevant Expense Captions Cost of sales Cost of sales 20X4 20X3 20X2 Employee compensation (exclusive of one-time employee termination benefits) " $86,336 " " $83,903 " " $100,009 " One-time employee termination benefits " 7,434 " " 39,298 " - Other cost of sales (a) "46,285" "47,234" "45,769" Total cost of sales " $140,055 " " $170,435 " " $145,778 " (a) "Other cost of sales consist primarily of subcontractor costs and travel expenses for the years ended December 31, 20X4, 20X3, and 20X2." Depreciation and amortization related to cost of sales Depreciation and amortization related to cost of sales Depreciation " $19,126 " " $17,984 " " $17,893 " Intangible asset amortization " 12,452 " " 8,194 " " 5,735 " Total depreciation and amortization related to cost of sales " $31,578 " " $26,178 " " $23,628 " "Selling, general, and administrative expenses" "Selling, general, and administrative expenses (SG&A)" Employee compensation (exclusive of one-time employee termination benefits) " $278,859 " " $238,272 " " $301,841 " One-time employee termination benefits " 19,243 " " 60,635 " - Other SG&A (b) "199,860" "159,308" "169,785" Total SG&A " $497,962 " " $458,215 " " $471,626 " (b) "Other SG&A consists primarily of professional services fees and the costs paid to third parties for printing, publications, and advertising for the years ended December 31, 20X4, 20X3, and 20X2." Research and development expenses Research and development expenses (R&D) Employee compensation (exclusive of one-time employee termination benefits) " $46,242 " " $41,379 " " $40,764 " One-time employee termination benefits " 1,454 " " 1,855 " - Other R&D (c) "17,836" "16,845" "15,890" Cost reimbursements (d) "(8,297)" "(7,905)" "(7,756)" Total R&D " $57,235 " " $52,174 " " $48,898 " (c) "Other R&D consists primarily of payments to third parties for professional services and licenses of intellectual property for the years ended December 31, 20X4, 20X3, and 20X2." (d) "Cost reimbursements consist of payments from a strategic partner for employee compensation and materials costs related to R&D incurred as part of a funded research and development arrangement for the years ended December 31, 20X4, 20X3, and 20X2." ##### [220-40-55-19](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-19) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:b0084c51691c657a8006ef105df4167f0209b73c987d26ee498143c562f5a23d 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)In addition to the tabular format disclosure illustrated in paragraph [220-40-55-18](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-18), Entity X also must disclose its selling expenses and how it defines selling expenses in accordance with paragraphs [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) . - _Selling Expenses_ - During the years ended December 31, 20X4, 20X3, and 20X2, selling expenses were $224,536, $223,493, and $231,892, respectively. The entity’s selling expenses include those expenses related to advertising and certain customer acquisition-related costs. ##### [220-40-55-20](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-20) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:724ee6f340c6cce66e2ab0048b7b92ac0b5b05c60a1d3a0c5b0f2eef4a37f242 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)This Example illustrates one type of tabular format disclosure that an entity could use to disclose disaggregated expense amounts in accordance with paragraphs [220-40-50-1 through 50-34](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-1) . This Example also illustrates the disclosure of selling expenses in accordance with paragraphs [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) . ##### [220-40-55-21](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-21) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:578ec8d7bebbf3dce5c4b8c6e7edefd29a6dc8e8ae7123fb8e30261fa497b83b 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)For the year ended December 31, 20X4, Entity X, which is a bank, presents the following comparative income statement. - ![](https://asc.understandingaccounting.org/asc-img/GUID-76A1E295-AE67-4382-8C00-4C9E4D855958-low.gif) "Entity X Consolidated Income Statement For the Years Ended December 31, 20X4, 20X3, and 20X2" 20X4 20X3 20X2 Interest income Loans " $2,795,052 " " $2,142,873 " " $2,072,997 " Investment securities " 628,887 " " 442,550 " " 465,842 " Other "209,629" "116,461" "79,193" Total interest income "3,633,568" "2,701,884" "2,618,032" Interest expense Deposits " 302,797 " " 30,280 " " 151,399 " Borrowed funds "279,505" "83,852" "167,703" Total interest expense "582,302" "114,132" "319,102" Net interest income "3,051,266" "2,587,752" "2,298,930" Provision for (recapture of) credit losses " 116,461 " " (186,337)" " 372,674 " Net interest income after provision for (recapture of) credit losses " 2,934,805 " " 2,774,089 " " 1,926,256 " Noninterest income Service charges on deposit accounts "201,702" "171,062" "151,969" Other service charges and fees "282,383" "239,487" "212,757" Total noninterest income "484,085" "410,549" "364,726" Noninterest expense Salaries and employee benefits "1,464,608" "1,176,183" "1,365,443" Occupancy and depreciation "376,587" "279,875" "349,679" Data processing "166,111" "146,308" "161,046" Advertising and marketing "56,876" "30,555" "28,192" Professional fees "73,230" "61,459" "74,473" Other "30,513" "21,399" "24,804" Total noninterest expense "2,167,925" "1,715,779" "2,003,637" Income before income taxes " 1,250,965 " " 1,468,859 " " 287,345 " Income tax expense "262,703" "308,460" "60,342" Net income " $988,262 " " $1,160,399 " " $227,003 " ##### [220-40-55-22](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-22) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:05caa4c4a6b69e7d7e007f9bbb2692be9532d6f753fea691781eccc49af5efb3 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)Entity X provides a disclosure that disaggregates the occupancy and depreciation expense and other expense captions into the categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). Those expense captions were identified as relevant expense captions because those captions contain one or more of the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6). In this Example, even though Entity X also presents separate expense captions on the face of its consolidated income statement for interest expense, provision for (recapture of) credit losses, data processing, advertising and marketing, professional fees, and income tax expense, those expense captions do not contain any of the expense categories listed in paragraph [220-40-50-6](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-6) (including those described in paragraphs [220-40-50-10 through 50-11](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-10) ); therefore, those expense captions do not need to be further disaggregated. Entity X applies the practical expedient for employee compensation described in paragraph [220-40-50-20](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-20) and elects to not repeat the amount presented on the face of the income statement in the notes to financial statements. ##### [220-40-55-23](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-23) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:7f5f3c57e2ad76ee61b6362b3fc715ce6db15f4ca1d993fac7f3dce60bae222d 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)Entity X recognizes operating lease cost entirely within occupancy and depreciation expense and, therefore, includes operating lease cost as a separate category in accordance with paragraph [220-40-50-22(p)](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-22). ##### [220-40-55-24](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-24) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:68e5dcb077b9980703a6896ea1182ebcb6d98c4c27fdb6be2b244c31aef806a9 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)Entity X provides the following disclosure. - ![](https://asc.understandingaccounting.org/asc-img/GUID-BDA8B9A8-54FB-490D-8474-B5F2D8177A5E-low.gif) Disaggregation of Relevant Expense Captions Occupancy and depreciation expense Occupancy and depreciation expense 20X4 20X3 20X2 Depreciation " $164,232 " " $146,403 " " $145,907 " Operating lease expense " 152,445 " " 103,239 " " 149,842 " Other occupancy expenses (a) "59,910" "30,233" "53,930" Total occupancy and depreciation expense " $376,587 " " $279,875 " " $349,679 " (a) "Other occupancy expenses consist primarily of repair and maintenance expense for the years ended December 31, 20X4, 20X3, and 20X2." Other Other Intangible asset amortization " $13,139 " " $10,980 " " $10,068 " Other (b) "17,374" "10,419" "14,736" Total other " $30,513 " " $21,399 " " $24,804 " (b) "Other consists primarily of regulatory licensing fees and charitable contributions for the years ended December 31, 20X4, 20X3, and 20X2." ##### [220-40-55-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-25) Pending content: yes Source downloaded (UTC): 2026-09-09T23:05:07.264Z to 2026-09-09T23:05:07.264Z Record version: sha256:c6502600d06566031cec7832b3f0c175601b042ae438b665a15c652e52db4b5c 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)In addition to the tabular format disclosure illustrated in paragraph [220-40-55-24](https://asc.understandingaccounting.org/asc/220/40/#220-40-55-24), Entity X also must disclose its selling expenses and how it defines selling expenses in accordance with paragraphs [220-40-50-35 through 50-36](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-35) . - _Selling Expenses_ - During the years ended December 31, 20X4, 20X3, and 20X2, the entity defined selling expenses to be the same as its advertising and marketing expenses, which are presented on the face of its consolidated income statement. The entity’s advertising and marketing expenses include costs incurred for advertising, market research, and business development. Source downloaded (UTC): 2026-09-09T23:05:10.773Z to 2026-09-09T23:05:10.773Z Record version: sha256:703e23cf47154dd95e00da18ba3025c31a6a43bd00f836fc5a02bb423be33a06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-40-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/220/40/#65-transition-and-open-effective-date-information) SEC content: no #### Transition Related to Accounting Standards Updates No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, and No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date ##### [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:10.773Z to 2026-09-09T23:05:10.773Z Record version: sha256:ec45742e7723352055e57153cc67aba981757a5b0eb9b25f3d9f9709855b3e28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Accounting Standards Update 2024-03](https://asc.understandingaccounting.org/updates/asu-2024-03/) 2028-06-13 2026-12-16 2027-12-16 2026-12-16 2027-12-16 2026-12-16 2027-12-16 2026-12-16 2027-12-16 2026-12-16 2027-12-16 2026-12-16 2027-12-16 2026-12-16 2027-12-16 The following represents the transition and effective date information related to Accounting Standards Updates No. 2024-03, _Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses_, and No. 2025-01, _Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date_: **Effective date and early adoption** 1. a The pending content that links to this paragraph shall be effective for [public business entities](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. **Transition method** 1. b A public business entity shall apply the pending content that links to this paragraph prospectively to financial statements issued for reporting periods beginning after the effective date of the pending content that links to this paragraph. The disclosures required by the pending content that links to this paragraph do not need to be included in financial statements for reporting periods beginning before the effective date that are being presented for comparative purposes with financial statements issued for periods after the effective date. 2. c A public business entity may elect to apply the pending content that links to this paragraph retrospectively to any or all prior periods presented in the financial statements. If applied to financial statements for periods beginning before the effective date, those disclosures shall be prepared and presented in accordance with this Subtopic. Source downloaded (UTC): 2026-09-09T23:05:16.949Z to 2026-09-09T23:05:24.159Z Record version: sha256:8b65ccab5770ba6c4cf2b29d1ce518faedbfaee37276efbd065edc7b3453ff39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-912: Income Statement—Reporting Comprehensive Income — Contractors—Federal Government ### Machine-generated study aids ```json { "summary": "This industry-specific subtopic addresses how a federal government contractor presents amounts in the income statement relating to terminated contracts. After ASC 2014-09 superseded most of its guidance, the only surviving rule is that items the contractor keeps without making a claim for cost or loss stay on the balance sheet as inventory or deferred charges (220-912-45-3).", "key_points": [ "The Subtopic's purpose is presentation in the income statement of amounts relating to terminated contracts (220-912-05-1).", "Scope follows the federal government contractor Overall Subtopic, Section 912-10-15 (220-912-15-1).", "Items the contractor retains without claim for cost or loss remain as inventory or deferred charges in the contractor's accounts rather than being charged to income (220-912-45-3).", "Paragraphs 220-912-45-1, 45-2 and 45-4 were superseded by ASU No. 2014-09, so most former termination-claim presentation guidance is now governed by the revenue recognition model." ], "categories": [ "Presentation", "Industry-specific", "Financial statement presentation", "Inventory and PP&E" ], "audience_level": "intermediate", "student_note": "Mostly a historical shell: ASU 2014-09 gutted this Subtopic, leaving only the rule that retained items with no claim stay in inventory/deferred charges. The common mistake is looking here for termination-claim revenue guidance instead of ASC 606 and 912-10.", "related_topics": [ "912-10", "606", "912-605", "330", "912-330" ], "key_concepts": [ "terminated contracts", "federal government contractors", "termination claims", "inventory", "deferred charges", "income statement presentation", "superseded guidance" ] } ``` Source downloaded (UTC): 2026-09-09T23:05:16.949Z to 2026-09-09T23:05:16.949Z Record version: sha256:c72bd78d9867546e635fdf3a087c61ee6cf595f0e606a76ca352690b67d15d78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-912-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/912/#00-status) SEC content: no ### Status ##### [220-912-00-1](https://asc.understandingaccounting.org/asc/220/912/#220-912-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:16.949Z to 2026-09-09T23:05:16.949Z Record version: sha256:11759bd2b3620d4924916f0dc5b5985b78d67a0ba0c62cf357148d07b7e07894 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
912-220-05-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
912-220-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
912-220-45-1 through 45-4
AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:05:19.568Z to 2026-09-09T23:05:19.568Z Record version: sha256:9bbf1dca2b7795f10a33f34739f18c605ed036d0584c6f6f7bc2365d5999611a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-912-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/912/#05-overview-and-background) SEC content: no ##### [220-912-05-1](https://asc.understandingaccounting.org/asc/220/912/#220-912-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:19.568Z to 2026-09-09T23:05:19.568Z Record version: sha256:b6806f0cafaf1ca989ba7c21b14693dea36c8083db32320601e6e1a757781979 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on presentation in the income statement for amounts relating to terminated contracts. Source downloaded (UTC): 2026-09-09T23:05:22.444Z to 2026-09-09T23:05:22.444Z Record version: sha256:57b74ad2499724097e23d2319011c35915413e34f97a32d5c6c5972093c587d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-912-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/912/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-912-15-1](https://asc.understandingaccounting.org/asc/220/912/#220-912-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:22.444Z to 2026-09-09T23:05:22.444Z Record version: sha256:1038b9e84ef6d6f3e4dd840873e2d87b10c2f93793c84892f7a1aeb27f1dded5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 912-10-15. Source downloaded (UTC): 2026-09-09T23:05:24.159Z to 2026-09-09T23:05:24.159Z Record version: sha256:3629cbef8cd9924aedf7de3e74beb3726e1fae3e9dd43e367a1972f780de51ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-912-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/912/#45-other-presentation-matters) SEC content: no ##### [220-912-45-1](https://asc.understandingaccounting.org/asc/220/912/#220-912-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:24.159Z to 2026-09-09T23:05:24.159Z Record version: sha256:ae86b20aa0b5c374925378a841711dda229a3080c12e65dca99bf0983abdbe70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [220-912-45-2](https://asc.understandingaccounting.org/asc/220/912/#220-912-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:24.159Z to 2026-09-09T23:05:24.159Z Record version: sha256:595d02d8d606513eebf41eb55bdfe7f4ce12489264a1c2fabe9bc20de0b79195 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Terminated Contracts ##### [220-912-45-3](https://asc.understandingaccounting.org/asc/220/912/#220-912-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:24.159Z to 2026-09-09T23:05:24.159Z Record version: sha256:48571403a7d5688743f07a1b75f32e2c21f5598d7f16334848ac674db3726d6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any items the contractor retains without claim for cost or loss shall remain as inventory or deferred charges in the contractor's accounts. ##### [220-912-45-4](https://asc.understandingaccounting.org/asc/220/912/#220-912-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:24.159Z to 2026-09-09T23:05:24.159Z Record version: sha256:5052a7a1a3ba7b3d83f1d8c4458b497dc2b202509e1560ed32ca6e724e33b2cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:05:27.480Z to 2026-09-09T23:05:41.911Z Record version: sha256:52c7046ef13e88009fe16c7e7d6baaed9693da2c2bec3317c9d5f28f3d3f0dd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-932: Income Statement—Reporting Comprehensive Income — Extractive Activities—Oil and Gas ### Machine-generated study aids ```json { "summary": "ASC 220-932 is a short \"pointer\" subtopic that addresses income statement presentation for oil- and gas-producing activities. It contains no substantive incremental rules of its own: it adopts the scope of ASC 932-10-15 and directs readers to the industry disclosure requirements in 932-235-50-21 through 50-28 and to the illustrative results-of-operations example in 932-235-55-5.", "key_points": [ "The Subtopic provides guidance relating to income statements for oil- and gas-producing activities (220-932-05-1).", "Scope and scope exceptions are the same as the Overall Subtopic in Section 932-10-15 (220-932-15-1).", "Incremental industry income statement disclosure requirements are located with the other incremental industry disclosures at paragraphs 932-235-50-21 through 50-28 (220-932-50-1).", "An illustration of the results of operations for oil- and gas-producing activities appears in Example 4 at paragraph 932-235-55-5 (220-932-55-1)." ], "categories": [ "Presentation", "Disclosure", "Industry-specific", "Financial statement presentation" ], "audience_level": "introductory", "student_note": "Don't expect substantive rules here — this subtopic exists only to route you to the real oil and gas income statement disclosure requirements in 932-235-50. A common mistake is citing 220-932 for a disclosure requirement when the operative paragraphs are 932-235-50-21 through 50-28.", "related_topics": [ "932-10", "932-235", "220-10", "932-360" ], "key_concepts": [ "oil- and gas-producing activities", "income statement presentation", "results of operations disclosure", "extractive activities", "incremental industry disclosures", "cross-reference subtopic" ] } ``` Source downloaded (UTC): 2026-09-09T23:05:27.480Z to 2026-09-09T23:05:27.480Z Record version: sha256:6c76dcd3b5ffb93f0bc6de974c100fe35c6efda983c3fa9984ad8fd85c4e6a6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-932-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/932/#00-status) SEC content: no ##### [220-932-00-1](https://asc.understandingaccounting.org/asc/220/932/#220-932-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:27.480Z to 2026-09-09T23:05:27.480Z Record version: sha256:a4e173961b3c8dfa47be7c3820eb3d631c888cfe2e361b6b2b29463bcac214f8 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
932-220-05-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
932-220-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
932-220-50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
932-220-55-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:05:29.942Z to 2026-09-09T23:05:29.942Z Record version: sha256:26b452ea9b4a2285547ff48a49cd5202b155304c780f9bdede0cb3e90da2a3fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-932-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/932/#05-overview-and-background) SEC content: no ##### [220-932-05-1](https://asc.understandingaccounting.org/asc/220/932/#220-932-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:29.942Z to 2026-09-09T23:05:29.942Z Record version: sha256:270fdfd47ff5dba4ae98099b0e0278c8fd547cea003610611222a96f74b15b7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance relating to income statements for oil- and gas- producing activities. Source downloaded (UTC): 2026-09-09T23:05:32.817Z to 2026-09-09T23:05:32.817Z Record version: sha256:ecac6b5b078ef31c766088959f55cb7856b1b097835109abf4c313b2ae2bc608 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-932-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/932/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-932-15-1](https://asc.understandingaccounting.org/asc/220/932/#220-932-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:32.817Z to 2026-09-09T23:05:32.817Z Record version: sha256:62cbd9ae157ed1eb303754a5919c723c205091c948ffa13577b096f81dceaf31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 932-10-15. Source downloaded (UTC): 2026-09-09T23:05:35.357Z to 2026-09-09T23:05:35.357Z Record version: sha256:b2c0ff6bc6a813fbdf1c57e6fe68fbc4930d0920b1a267ea0a14bbf69c35606f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-932-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/932/#50-disclosure) SEC content: no ##### [220-932-50-1](https://asc.understandingaccounting.org/asc/220/932/#220-932-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:35.357Z to 2026-09-09T23:05:35.357Z Record version: sha256:49f869d8d60624d3dbf89bca742e1f8140d4f71985b8adea430c09c4dd66868f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Incremental industry disclosure requirements relating to the income statement have been kept with other incremental industry disclosure requirements, see paragraphs [932-235-50-21 through 50-28](https://asc.understandingaccounting.org/asc/235/932/#235-932-50-21) . Source downloaded (UTC): 2026-09-09T23:05:38.822Z to 2026-09-09T23:05:38.822Z Record version: sha256:8ad98b2a7728a66f158dc26cadf07de9f3e8a993a57bff166c1a8900739e1b02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-932-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/220/932/#55-implementation-guidance-and-illustrations) SEC content: no ##### [220-932-55-1](https://asc.understandingaccounting.org/asc/220/932/#220-932-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:38.822Z to 2026-09-09T23:05:38.822Z Record version: sha256:41d8c13895117e7b6ea6c4cf82895ce1e8021cac6da4bb2b0cae0a5e896109a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An illustration of the results of operations can be found in Example 4 (see paragraph [932-235-55-5](https://asc.understandingaccounting.org/asc/235/932/#235-932-55-5)). Source downloaded (UTC): 2026-09-09T23:05:45.501Z to 2026-09-09T23:05:58.504Z Record version: sha256:45b0b2bb04aa19ef75588c7356e27522e9ebdae51423fe3a35a590c92e84a86b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-942: Income Statement—Reporting Comprehensive Income — Financial Services—Depository and Lending Source downloaded (UTC): 2026-09-09T23:05:45.501Z to 2026-09-09T23:05:45.501Z Record version: sha256:23ad2d3276cd01d5334fac28bab581ad8300a4f0164dab0055e9a074f1fd63d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-942-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/942/#sec-00-status) SEC content: yes ##### [220-942-S00-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:45.501Z to 2026-09-09T23:05:45.501Z Record version: sha256:c2079803b781eb364f6e1def9880d752e48fa981481434bd07638c6d4dc5c1fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
942-220-S25-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
942-220-S45-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
942-220-S45-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
942-220-S50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
942-220-S50-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
942-220-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
942-220-S99-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
942-220-S99-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:05:47.738Z to 2026-09-09T23:05:47.738Z Record version: sha256:6cb456f40ccd2f2f22b7b675634af62260aa62e87bd4a8d29dcca11b8f6f208f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-942-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/220/942/#sec-25-recognition) SEC content: yes #### Tax Equivalent Adjustment in Financial Statements of Bank Holding Companies ##### [220-942-S25-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:47.738Z to 2026-09-09T23:05:47.738Z Record version: sha256:56ebb42d8b8d4324186742e1ab0ad7214197bae0cdde41d444c8afec5aa83707 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-220-S99-2](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-2), SAB Topic 11.G, Question 1, for SEC Staff views on including tax equivalent adjustments in the income statement and footnotes. Source downloaded (UTC): 2026-09-09T23:05:51.116Z to 2026-09-09T23:05:51.116Z Record version: sha256:9add96a868aa2231dff89813ade4612e91edbdcb100071571d2cdd64185ede48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-942-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/942/#sec-45-other-presentation-matters) SEC content: yes #### Items Required to Be Presented on the Income Statement or Related Financial Statement Footnotes ##### [220-942-S45-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:51.116Z to 2026-09-09T23:05:51.116Z Record version: sha256:29b4ad1108f3d25f826a7644dcdbd28666dafb8337a1256e178eaa5fc49164f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-220-S99-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-1), Regulation S-X Rule 9-04, for rules on items required to be presented on the income statement or related financial statement footnotes. #### Tax Equivalent Adjustment in Financial Statements of Bank Holding Companies ##### [220-942-S45-2](https://asc.understandingaccounting.org/asc/220/942/#220-942-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:51.116Z to 2026-09-09T23:05:51.116Z Record version: sha256:7c0e1f69730137bc6ccab37d3d7311ea4cede5c259bf285d868c9b9cc5b93510 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-220-S99-2](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-2), SAB Topic 11.G, Question 2, for SEC Staff views on presentation of tax equivalent adjustments in the income statement. Source downloaded (UTC): 2026-09-09T23:05:53.504Z to 2026-09-09T23:05:53.504Z Record version: sha256:a2296f5cff117ba3efb6c93e9b2716f200b06db26c98b3dd3adb48f7c520ed68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-942-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/942/#sec-50-disclosure) SEC content: yes #### Items Required to Be Disclosed in the Financial Statement Footnotes ##### [220-942-S50-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:53.504Z to 2026-09-09T23:05:53.504Z Record version: sha256:715091eff181957e801643c889f7e9bfb95521376f5af31a065db86d4520c591 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-220-S99-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-1), Regulation S-X Rule 9-04, for rules on items required to be disclosed in the financial statement footnotes. #### Tax Equivalent Adjustments in Financial Statements of Bank Holding Companies ##### [220-942-S50-2](https://asc.understandingaccounting.org/asc/220/942/#220-942-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:53.504Z to 2026-09-09T23:05:53.504Z Record version: sha256:771d2528240b8fa64fbd6bcb8828a9e9f9b6a68dc049436d66e86819e3e9016b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-220-S99-2](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-2), SAB Topic 11.G, Question 1, for SEC Staff views on disclosures related to tax equivalent adjustments. Source downloaded (UTC): 2026-09-09T23:05:58.504Z to 2026-09-09T23:05:58.504Z Record version: sha256:2a9f346b2bb0cfcaa16e1b0068df15815719975a14e2bee349e744b8114037dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-942-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/220/942/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [220-942-S99-1](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:58.504Z to 2026-09-09T23:05:58.504Z Record version: sha256:0dfa199b2997a2286e9336906da70bf52cc2c6a2a099de26d565753f785d5788 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 9-04, Statements of Comprehensive Income (17 CFR 210.9-04). - The purpose of this section is to indicate the various items which, if applicable, should appear on the face of the statement of comprehensive income or in the notes thereto. - 1\. Interest and fees on loans. Include commitment and origination fees, late charges and current amortization of premium and accretion of discount on loans which are related to or are an adjustment of the loan interest rate. - 2\. Interest and dividends on investment securities. Disclosure separately - (1) taxable interest income, - (2) nontaxable interest income, and - (3) dividends. - 3\. Trading account interest. - 4\. Other interest income. - 5\. Total interest income (total of lines 1 through 4). - 6\. Interest on deposits. - 7\. Interest on short-term borrowings. - 8\. Interest on long-term debt. - 9\. Total interest expense (total of lines 6 through 8). - 10\. Net interest income (line 5 minus line 9). - 11\. Provision for loan losses. - 12\. Net interest income after provision for loan losses. - 13\. Other income. Disclose separately any of the following amounts, or any other item of other income, which exceed one percent of the aggregate of total interest income and other income. The remaining amounts may be shown as one amount, except for investment securities gains or losses which shall be shown separately regardless of size. - (a) Commissions and fees and fiduciary activities. - (b) Commissions, broker's fees and markups on securities underwriting and other securities activities. - (c) Insurance commissions, fees and premiums. - (d) Fees for other customer services. - (e) Profit or loss on transactions in securities in dealer trading account. - (f) Equity in earnings of unconsolidated subsidiaries and 50 percent or less owned persons. - (g) Gains or losses on disposition of equity in securities of subsidiaries or 50 percent or less owned persons. - (h) Investment securities gains or losses. Related income taxes shall be disclosed. - 14\. Other expenses. Disclose separately any of the following amounts, or any other item of other expense, which exceed one percent of the aggregate of total interest income and other income. The remaining amounts may be shown as one amount. - (a) Salaries and employee benefits. - (b) Net occupancy expense of premises. - (c) \[Reserved\] - (d) Net cost of operation of other real estate (including provisions for real estate losses, rental income and gains and losses on sales of real estate). - 15\. Income or loss before income tax expense. - 16\. Income tax expense. The information required by § 210.4-08(h) should be disclosed. - 17-19. \[Reserved\] - 20\. Net income or loss. - 21\. Net income attributable to the noncontrolling interest. - 22\. Net income attributable to the controlling interest. - 23\. 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. - 24\. Comprehensive income. - 25\. Comprehensive income attributable to the noncontrolling interest. - 26\. Comprehensive income attributable to the controlling interest. - 27\. Earnings per share data. - \[48 FR 11107, Mar. 16, 1983, as amended at 50 FR 25215, June 18, 1985; 74 FR 18616, Apr. 23, 2009; 83 FR 50205, Oct. 4, 2018\] #### SEC Staff Guidance ##### [220-942-S99-2](https://asc.understandingaccounting.org/asc/220/942/#220-942-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:05:58.504Z to 2026-09-09T23:05:58.504Z Record version: sha256:fbe137eda0c141eab97388b446fc0a16048e8d49ff5f0fb6317eccf3b2ee81c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following the text of SAB Topic 11.G, Tax Equivalent Adjustments in Financial Statements of Bank Holding Companies. - Facts: Bank subsidiaries of bank holding companies frequently hold substantial amounts of state and municipal bonds, interest income from which is exempt from Federal income taxes. Because of the tax exemption the stated yield on these securities is lower than the yield on securities with similar risk and maturity characteristics whose interest is subject to Federal tax. In order to make the interest income and resultant yields on tax exempt obligations comparable to those on taxable investments and loans, a "tax equivalent adjustment" is often added to interest income when presented in analytical tables or charts. When the data presented also includes income taxes, a corresponding amount is added to income tax expense so that there is no effect on net income. Adjustment may also be made for the tax equivalent effect of exemption from state and local taxes. - Question 1: Is the concept of the tax equivalent adjustment appropriate for inclusion in financial statements and related notes? - Interpretive Response: No. The tax equivalent adjustment represents a credit to interest income which is not actually earned and realized and a corresponding charge to taxes (or other expense) which will never be paid. Consequently, it should not be reflected on the income statement or in notes to financial statements included in reports to shareholders or in a report or registration statement filed with the Commission. - Question 2: May amounts representing tax equivalent adjustments be included in the body of a statement of income provided they are designated as not being included in the totals and balances on the statement? - Interpretive Response: No. The tabular format of a statement develops information in an orderly manner which becomes confusing when additional numbers not an integral part of the statement are inserted into it. Source downloaded (UTC): 2026-09-09T23:06:00.472Z to 2026-09-09T23:06:11.540Z Record version: sha256:05148874a061ef32723d5ad9e148f9bde77130226b7bee0f3a993ee7529d7725 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-944: Income Statement—Reporting Comprehensive Income — Financial Services—Insurance Source downloaded (UTC): 2026-09-09T23:06:00.472Z to 2026-09-09T23:06:00.472Z Record version: sha256:81848dda631f0471d447e2f5f41f2fafc3b0d94c3c06410f0237dcacab06b3ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-944-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/944/#sec-00-status) SEC content: yes ##### [220-944-00-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:00.472Z to 2026-09-09T23:06:00.472Z Record version: sha256:63696ee897bc7e7b180e189653b6436e9256c4e408177639c160dc538810e28c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
944-220-S45-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
944-220-S50-1 through S50-5
AddedMaintenance Update 2017-19 (PDF)11/15/2017
944-220-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
944-220-S99-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:06:04.133Z to 2026-09-09T23:06:04.133Z Record version: sha256:3cd1ac82fb797347c6d29a425e21773729560b2ab302ad68609763a6a628a083 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-944-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/944/#sec-45-other-presentation-matters) SEC content: yes #### Presentation and Classification ##### [220-944-S45-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:04.133Z to 2026-09-09T23:06:04.133Z Record version: sha256:073660cbc5ea9404855bd05a92cbefbdb1d6784a4edc6bc7440d45ee237c1454 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-220-S99-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S99-1), Regulation S-X Rule 7-04, for the required income statement presentation for insurance entities. Source downloaded (UTC): 2026-09-09T23:06:05.848Z to 2026-09-09T23:06:05.848Z Record version: sha256:0144435dee07eb76d71485c38df7ac083865a813a6d9bd8748288fa5f64fb25d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-944-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/944/#sec-50-disclosure) SEC content: yes #### Investment Income ##### [220-944-S50-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:05.848Z to 2026-09-09T23:06:05.848Z Record version: sha256:acce734f30bacc6e161e46e26178428c570eaa0433c31e3ebda170ec930308ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-220-S99-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S99-1), Regulation S-X Rule 7-04.2, for required disclosures pertaining to investment income. #### Realized Investment Gains and Losses ##### [220-944-S50-2](https://asc.understandingaccounting.org/asc/220/944/#220-944-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:05.848Z to 2026-09-09T23:06:05.848Z Record version: sha256:f5b52ebaf846c4304dd82c62fd469a83b8fede7f1765826e52c0dbc5226bd3bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-220-S99-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S99-1), Regulation S-X Rule 7-04.3, for required disclosures pertaining to realized investment gains and losses. #### Other Income ##### [220-944-S50-3](https://asc.understandingaccounting.org/asc/220/944/#220-944-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:05.848Z to 2026-09-09T23:06:05.848Z Record version: sha256:7c6ab1bbdafe36d78495a11feab81d0152d217c77609eeebbb0ca7978cae7a27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-220-S99-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S99-1), Regulation S-X Rule 7-04.4, for required disclosures pertaining to other income. #### Underwriting, Acquisition, and Insurance Expenses ##### [220-944-S50-4](https://asc.understandingaccounting.org/asc/220/944/#220-944-S50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:05.848Z to 2026-09-09T23:06:05.848Z Record version: sha256:6a60921336b2b8c539c2ccf0c3429e07201891b116c22d8ae3f0e8931c958dee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-220-S99-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S99-1), Regulation S-X Rule 7-04.7, for required disclosures pertaining to underwriting, acquisition, and insurance expenses. #### Equity in Earnings of Unconsolidated Subsidiaries ##### [220-944-S50-5](https://asc.understandingaccounting.org/asc/220/944/#220-944-S50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:05.848Z to 2026-09-09T23:06:05.848Z Record version: sha256:a2bc092960cd08d2869ee58c2f38f317510a28e1e7675a85dae0b62a43b55be1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [944-220-S99-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S99-1), Regulation S-X Rule 7-04.11, for required disclosures pertaining to equity in earnings of unconsolidated subsidiaries. Source downloaded (UTC): 2026-09-09T23:06:11.540Z to 2026-09-09T23:06:11.540Z Record version: sha256:9b8a2d5039e7b341165523e76fa3a43396f7b17027ed81afbbe5ebe3d8fa3ad5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-944-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/220/944/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [220-944-S99-1](https://asc.understandingaccounting.org/asc/220/944/#220-944-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:11.540Z to 2026-09-09T23:06:11.540Z Record version: sha256:39a45e3467358c0a3e0c8edc9cfb28e958ef89309eeea3de9675864107652053 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 7-04, Statements of Comprehensive Income (17 CFR 210.7-04). - The purpose of this section is to indicate the various items which, if applicable, should appear on the face of the statements of comprehensive income and in the notes thereto filed for persons to whom this article pertains. (See § 210.4-01(a).) - REVENUES - 1\. Premiums. Include premiums from reinsurance assumed and deduct premiums on reinsurance ceded. Where applicable, the amounts included in this caption should represent premiums earned. - 2\. Net investment income. State in a note to the financial statements, in tabular form, the amounts of (a) investment income from each category of investments listed in the subcaptions of §210.7-03.1 that exceeds five percent of total investment income, (b) total investment income, (c) applicable expenses, and (d) net investment income. - 3\. Realized investment gains and losses. Disclose the following amounts: - (a) Net realized investment gains and losses, which shall be shown separately regardless of size. - (b) Indicate in a footnote the registrant's policy with respect to whether investment income and realized gains and losses allocable to policyholders and separate accounts are included in the investment income and realized gain and loss amounts reported in the statement of comprehensive income. If the statement of comprehensive income includes investment income and realized gains and losses allocable to policyholders and separate accounts, indicate the amounts of such allocable investment income and realized gains and losses and the manner in which the insurance enterprise's obligation with respect to allocation of such investment income and realized gains and losses is otherwise accounted for in the financial statements. - (c) \[Reserved\] - (d) For each period for which a statement of comprehensive income is filed, include in a note an analysis of realized and unrealized investment gains and losses on fixed maturities and equity securities. For each period, state separately for fixed maturities \[see § 210.7-03.1(a)\] and for equity securities \[see § 210.7-03.1(b)\] the following amounts: - (1) Realized investment gains and losses, and - (2) The change during the period in the difference between value and cost. - The change in the difference between value and cost shall be given for both categories of investments even though they may be shown on the related balance sheet on a basis other than value. - 4\. Other income. Include all revenues not included in captions 1 and 2 above. State separately in the statement any amounts in excess of five percent of total revenue, and disclose the nature of the transactions from which the items arose. - BENEFITS, LOSSES AND EXPENSES - 5\. Benefits, claims, losses and settlement expenses. - 6\. Policyholders' share of earnings on participating policies, dividends and similar items. (See § 210.7-03.14(b).) - 7\. Underwriting, acquisition and insurance expenses. State separately in the statement of comprehensive income or in a note thereto (a) the amount included in this caption representing deferred policy acquisition costs amortized to income during the period, and (b) the amount of other operating expenses. State separately in the statement of comprehensive income any material amount included in all other operating expenses. - 8\. Income or loss before income tax expense and appropriate items below. - 9\. Income tax expense. Include under this caption only taxes based on income. (See § 210.4-08(h).) - 10\. Equity in earnings of unconsolidated subsidiaries and 50% 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).) - 11\. Income or loss from continuing operations. - 12\. Discontinued operations. - 13-15. \[Reserved\] - 16\. Net income or loss. - 17\. Net income attributable to the noncontrolling interest. - 18\. Net income attributable to the controlling interest. - 19\. 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. - 20\. Comprehensive income. - 21\. Comprehensive income attributable to the noncontrolling interest. - 22\. Comprehensive income attributable to the controlling interest. - 23\. Earnings per share data. - \[46 FR 54335, Nov. 2, 1981, as amended at 57 FR 45293, Oct. 1, 1992; 74 FR 18615, Apr. 23, 2009; 83 FR 50203, Oct. 4, 2018\] Source downloaded (UTC): 2026-09-09T23:06:14.562Z to 2026-09-09T23:06:52.794Z Record version: sha256:5083180b3544a79e9fba670b87188f9dfb4f2e5ae04b270251a15df9dd59a6e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946: Income Statement—Reporting Comprehensive Income — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "This subtopic governs the form and content of the statement of operations (income statement) for investment companies. The statement must show investment income less expenses to arrive at net investment income, then net realized gains/losses and the change in unrealized appreciation/depreciation on investments and foreign currency, summing to the net increase or decrease in net assets resulting from operations. Special presentation rules apply to multiple-class funds, master-feeder structures, and funds of funds.", "key_points": [ "The objective of the statement of operations is to present the increase or decrease in net assets resulting from all investment activities—investment income less expenses, realized gains/losses, and changes in unrealized appreciation/depreciation (220-946-45-1).", "Specified expenses are commonly reported separately, including advisory/management fees, 12b-1 distribution expenses, custodian and shareholder service costs, interest, dividends on securities sold short, professional and directors' fees (220-946-45-3).", "Income tax expense is presented under the separate income category (investment income or realized/unrealized gains) to which it applies, and foreign withholding taxes are deducted from the related income item and shown parenthetically or as a contra item (220-946-45-3(g)-(h); 45-4); any provision relating to net investment income is disclosed separately (220-946-50-1).", "Excess of investment income over total expenses is shown as net investment income (or loss) (220-946-45-5), and the sum of net investment income and net realized and unrealized gain or loss is presented as the net increase or decrease in net assets resulting from operations (220-946-45-7).", "Realized gains/losses on investments are reported net of brokerage commissions, and foreign currency realized gains/losses may be combined with or reported separately from investment gains/losses; the entity's practice must be stated in the notes (220-946-45-6(a); 220-946-50-2).", "Class-specific expenses must be reported for each class in the statement of operations or in the notes; allocating fund-level expenses by class is permitted but not required (220-946-45-9; 220-946-50-3).", "A feeder fund presents its allocated share of the master fund's interest, dividends, expenses, and realized and unrealized gains/losses separately, plus its own fund-specific expenses and any waivers, with all feeders' amounts agreeing to master fund totals (220-946-45-11 through 45-12); a fund of funds reports only reporting-fund-level expenses because investee fund expenses are embedded in net earnings (220-946-45-13, 45-16)." ], "categories": [ "Presentation", "Disclosure", "Industry-specific", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "Investment company income statements follow a rigid three-tier format (net investment income → net realized/unrealized gain or loss → net increase in net assets from operations), which is tested heavily in specialized-industry accounting. A common mistake is treating foreign withholding taxes or investee fund expenses as operating expense lines—withholding taxes reduce the related income item, and investee fund expenses are embedded in the net earnings received, never grossed up.", "related_topics": [ "946-10", "946-205", "946-210", "946-830", "740", "830" ], "key_concepts": [ "statement of operations", "net investment income", "realized and unrealized gains and losses", "net increase in net assets resulting from operations", "master-feeder structure", "multiple class funds", "fund of funds", "foreign currency transactions" ] } ``` Source downloaded (UTC): 2026-09-09T23:06:14.562Z to 2026-09-09T23:06:14.562Z Record version: sha256:668a32e55082dc1ee608e750ff76dfaafd9ab800ef40225e0b449df101267569 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/946/#00-status) SEC content: no ##### [220-946-00-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:14.562Z to 2026-09-09T23:06:14.562Z Record version: sha256:b326c868d6bb0bf31ea1c834e50278bda70f2bf19075a8cca8abc7db6536b0be 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
12b-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-05-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-45-1 through 45-17
AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-45-3AmendedMaintenance Update 2018-12 (PDF)09/10/2018
946-220-45-6AmendedMaintenance Update 2018-12 (PDF)09/10/2018
946-220-45-9AmendedAccounting Standards Update No. 2020-1010/29/2020
946-220-45-11AmendedMaintenance Update 2018-12 (PDF)09/10/2018
946-220-45-12AmendedMaintenance Update 2018-12 (PDF)09/10/2018
946-220-45-14AmendedAccounting Standards Update No. 2020-1010/29/2020
946-220-50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-50-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-50-3AddedAccounting Standards Update No. 2020-1010/29/2020
946-220-50-4AddedAccounting Standards Update No. 2020-1010/29/2020
Source downloaded (UTC): 2026-09-09T23:06:18.164Z to 2026-09-09T23:06:18.164Z Record version: sha256:63c5f30389f23a19c94cb02fee6e2f2ea4c51191fcb770fe43acb7c9fe20e9cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/946/#05-overview-and-background) SEC content: no ##### [220-946-05-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:18.164Z to 2026-09-09T23:06:18.164Z Record version: sha256:2e9e00311c0b88c1f7ee2c80b0a59159471f70e97b455233001e758c5644493e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses income statements, or statements of operations, for investment companies. Source downloaded (UTC): 2026-09-09T23:06:21.528Z to 2026-09-09T23:06:21.528Z Record version: sha256:86a63a729a2a213467454f952e0ccfdcd7fa647e98bcd2cb0cdd569cfe180973 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/946/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-946-15-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:21.528Z to 2026-09-09T23:06:21.528Z Record version: sha256:bee425527bdfb698da2bcb2bc444efcc3adf1ce2225d62696cfef88fa2132d23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15. Source downloaded (UTC): 2026-09-09T23:06:28.222Z 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). Source downloaded (UTC): 2026-09-09T23:06:32.355Z to 2026-09-09T23:06:32.355Z Record version: sha256:8a90582d0525fca0eeee6df3dcbd4cfc6bc58a5958a957c4c66f280cc59d48bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/946/#50-disclosure) SEC content: no #### Net Investment Income ##### [220-946-50-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:32.355Z to 2026-09-09T23:06:32.355Z Record version: sha256:afc1bcce71e310bf06d14a13489695a2fe272b42b261e963bb1b510ade5104fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any income tax provision relating to net investment income shall be disclosed separately. #### Net Realized Gain or Loss from Investments ##### [220-946-50-2](https://asc.understandingaccounting.org/asc/220/946/#220-946-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:32.355Z to 2026-09-09T23:06:32.355Z Record version: sha256:984fdbc2fa05eec51046e7c2f8478e2f9fff04c51e853942ac5a910349754106 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of operations shall disclose net realized gains or losses. Gains or losses arising from in-kind redemptions shall be disclosed. Notes to financial statements shall state an entity's practice of either including or excluding that portion of realized and unrealized gains and losses from investments that result from foreign currency changes with or from other foreign currency gains and losses. #### Complex Capital Structures ##### [220-946-50-3](https://asc.understandingaccounting.org/asc/220/946/#220-946-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:32.355Z to 2026-09-09T23:06:32.355Z Record version: sha256:304b99c92b9079a732e40416eb662cf89be55d08d2ce6ef84b9e82d6e41564a2 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 [946-220-45-9](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-9).) ##### [220-946-50-4](https://asc.understandingaccounting.org/asc/220/946/#220-946-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:32.355Z to 2026-09-09T23:06:32.355Z Record version: sha256:fb2661375de866a0008f18f1ec060965a733f7b3d11caef91a8652565f034fdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with paragraph [946-220-45-14](https://asc.understandingaccounting.org/asc/220/946/#220-946-45-14), 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. Source downloaded (UTC): 2026-09-09T23:06:38.275Z to 2026-09-09T23:06:38.275Z Record version: sha256:321e70c643258c494099b694cd677301ea834df67eb7651ec72e4228482b84a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/946/#sec-00-status) SEC content: yes ##### [220-946-S00-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:38.275Z to 2026-09-09T23:06:38.275Z Record version: sha256:e8d5ec2c6280d6e06c8e43e5602203a3f7d4d2db03f9d74694a9d5146b4fb1f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
946-220-S45-1 through S45-3
AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-S50-1 through S50-3
AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
946-220-S99-1 through S99-3
AddedMaintenance Update 2017-19 (PDF)11/15/2017
946-220-S99-3AmendedAccounting Standards Update No. 2019-0707/26/2019
Source downloaded (UTC): 2026-09-09T23:06:42.352Z to 2026-09-09T23:06:42.352Z Record version: sha256:38b8c1548a6a9ec52733045ec8bb8af65437f0f86f78a83382ca08a16dfb2775 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-S45: SEC 45 Other Presentation Matters (Classification, Cash Flow, EPS, etc.) [Read section](https://asc.understandingaccounting.org/asc/220/946/#sec-45-other-presentation-matters-classification-cash-flow-eps-etc) SEC content: yes #### Statements of Operations Format ##### [220-946-S45-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:42.352Z to 2026-09-09T23:06:42.352Z Record version: sha256:0207d45294c3c4bc246dab80677b4b43f7f6c0567342ffcec721330a386e3aa6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-220-S99-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-1), Regulation S-X Rule 6-07, for the required income statement presentation for registered investment companies. #### Format for Statements of Operations of Issuers of Face-Amount Certificates ##### [220-946-S45-2](https://asc.understandingaccounting.org/asc/220/946/#220-946-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:42.352Z to 2026-09-09T23:06:42.352Z Record version: sha256:e44a3006ea917275d490bb8cb9a65414e6dce6cefed5473972b148eaa47aa6da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-220-S99-2](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-2), Regulation S-X Rule 6-08, for the required income statement presentation for issuers of face-amount certificates. #### Statements of Changes in Net Assets Format ##### [220-946-S45-3](https://asc.understandingaccounting.org/asc/220/946/#220-946-S45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:42.352Z to 2026-09-09T23:06:42.352Z Record version: sha256:36e09c6e92534df79643d979e1f3da8d52859709af03889502f20c4ea5a81cd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-220-S99-3](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-3), Regulation S-X Rule 6-09, for the required statement of changes in net assets format. Source downloaded (UTC): 2026-09-09T23:06:45.693Z to 2026-09-09T23:06:45.693Z Record version: sha256:e1869ed3efc432f081714a20ee3369502ff778ffc6bb914c92464740ebb33fb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/946/#sec-50-disclosure) SEC content: yes #### Expenses ##### [220-946-S50-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:45.693Z to 2026-09-09T23:06:45.693Z Record version: sha256:50a53d76624bb8cc9387865cbb2b785a4c94c66b7b0b162307f388f0d691ad8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-220-S99-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-1), Regulation S-X Rule 6-07.2, for the required disclosures pertaining to expenses. ##### [220-946-S50-2](https://asc.understandingaccounting.org/asc/220/946/#220-946-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:45.693Z to 2026-09-09T23:06:45.693Z Record version: sha256:97fd48bb8adddc80791aa9f16eecbcd790c4969439eed9bfd08b180d8829990d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-220-S99-2](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-2), Regulation S-X Rule 6-08.2, for the required disclosures pertaining to expenses of issuers of face-amount certificates. #### Realized and Unrealized Gains (Losses) on Investments—Net ##### [220-946-S50-3](https://asc.understandingaccounting.org/asc/220/946/#220-946-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:45.693Z to 2026-09-09T23:06:45.693Z Record version: sha256:8b70fe22f8485c5acde895aa863cf9065d1edc66392124229d88fa23ae310587 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-220-S99-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-1), Regulation S-X Rule 6-07.7(c), for the required disclosures pertaining to realized and unrealized gains (losses) on investments—net. Source downloaded (UTC): 2026-09-09T23:06:52.794Z to 2026-09-09T23:06:52.794Z Record version: sha256:806c98f7e3deafdf83280113fa9236ec47ceb8a8b15333bcfd2891fa1fd23a89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-946-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/220/946/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [220-946-S99-1](https://asc.understandingaccounting.org/asc/220/946/#220-946-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:52.794Z to 2026-09-09T23:06:52.794Z Record version: sha256:862a176124ca4d4702a23ab918f56f438a90db74f9581c6a0e53e949e28ec215 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:52.794Z to 2026-09-09T23:06:52.794Z Record version: sha256:db4e97224506d0d6996acb5c7aa180db20f907b8250cea5187cfc3583ced02c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:52.794Z to 2026-09-09T23:06:52.794Z Record version: sha256:06d368ebfeb779d99453a8a114ad17652c901e5557e0ad7c512512843ea0c908 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. \[47 FR 56838, Dec. 21, 1982, as amended at 83 FR 50202, Oct. 4, 2018\] Source downloaded (UTC): 2026-09-09T23:06:55.321Z to 2026-09-09T23:07:12.667Z Record version: sha256:5317171da8ccdce049d55f7eaec72c4e4985b660742a331c3a8ada96ec0d10aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954: Income Statement—Reporting Comprehensive Income — Health Care Entities ### Machine-generated study aids ```json { "summary": "This Subtopic governs how not-for-profit, business-oriented health care entities present their statement of operations and statement of changes in net assets. Its central requirement is a clearly labeled \"performance indicator\" (e.g., revenues over expenses) reported in a statement that also shows total changes in net assets without donor restrictions, with a specified list of items — such as equity transfers, donor-restricted contributions, other comprehensive income items, and unrealized gains/losses on non-trading debt securities — required to be reported outside that indicator.", "key_points": [ "The guidance applies only to not-for-profit, business-oriented health care entities (220-954-15-2), and the statement of operations may be combined with the statement of changes in equity (net assets) (220-954-45-1).", "The statement of operations must include a performance indicator that is clearly labeled with a descriptive term such as revenues over expenses or performance earnings, presented in a statement that also shows total changes in net assets without donor restrictions (220-954-45-5).", "Paragraph 220-954-45-8 lists items reported separately from (outside) the performance indicator, including owner transactions, equity transfers with controlled/controlling/common-control entities, receipt of donor-restricted contributions, contributions of and assets released for long-lived assets, other comprehensive income items under 220-10-45-10A, donor- or law-restricted investment returns, inherent contributions increasing net assets with donor restrictions, and instrument-specific credit risk changes under 825-10-45-5.", "Unrestricted investment return inside the performance indicator includes dividend and interest income, realized gains and losses, unrealized gains/losses on trading debt securities, credit loss expense, and unrealized gains/losses and impairments on Topic 321 equity investments; unrealized gains and losses on non-trading debt securities are excluded (220-954-45-9).", "Increases in net assets from services received from personnel of an affiliate that are not charged to the recipient are reported as equity transfers regardless of the affiliate's status, while the related expense or asset is reported like other such expenses or assets (220-954-45-3); equity transfers are excluded from the performance indicator and create no step-up in basis (220-954-45-2).", "Functional expense classification groups costs by purpose into program services and supporting activities, with the extent of subclassification depending on the entity's nature and complexity, and allocations based on full cost allocations (220-954-45-4).", "The notes must describe the nature and composition of the performance indicator (220-954-50-1), and if an intermediate measure of operations is reported and its use is not apparent, the notes must describe the measure or the items excluded from operations (220-954-50-2)." ], "categories": [ "Presentation", "Not-for-profit", "Industry-specific", "Disclosure" ], "audience_level": "intermediate", "student_note": "The performance indicator is the NFP health care analogue of \"net income,\" and exam questions almost always test which items fall outside it; the most common error is treating all unrealized gains as excluded — unrealized gains on trading debt securities and on Topic 321 equity investments are inside the indicator, only non-trading debt security unrealized gains are outside.", "related_topics": [ "958-220", "954-220", "958-205", "958-720", "958-805", "320" ], "key_concepts": [ "performance indicator", "not-for-profit business-oriented health care entity", "equity transfer", "net assets without donor restrictions", "functional expense classification", "trading debt securities", "intermediate measure of operations", "investment return" ] } ``` Source downloaded (UTC): 2026-09-09T23:06:55.321Z to 2026-09-09T23:06:55.321Z Record version: sha256:7bcf5bf523df9abcefa5e8c6e577724c3de0756470ea82c12d8126cdba083169 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/954/#00-status) SEC content: no ##### [220-954-00-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:55.321Z to 2026-09-09T23:06:55.321Z Record version: sha256:5e50aea6df2fd9452958191d6732e0c48d0d008423066d7f28792ae05bdde9db 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
AffiliateAmendedMaintenance Update 2018-12 (PDF)09/10/2018
AffiliateAddedMaintenance Update 2017-19 (PDF)11/15/2017
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAddedMaintenance Update 2017-19 (PDF)11/15/2017
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Donor-Imposed RestrictionAddedMaintenance Update 2017-19 (PDF)11/15/2017
Equity TransferAddedMaintenance Update 2017-19 (PDF)11/15/2017
Functional Expense ClassificationAddedMaintenance Update 2017-19 (PDF)11/15/2017
Inherent ContributionAddedMaintenance Update 2017-19 (PDF)11/15/2017
Net Assets with Donor RestrictionsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Net Assets without Donor RestrictionsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Performance IndicatorAddedMaintenance Update 2017-19 (PDF)11/15/2017
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
954-220-05-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
954-220-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
954-220-15-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
954-220-45-1 through 45-11
AddedMaintenance Update 2017-19 (PDF)11/15/2017
954-220-45-6AmendedAccounting Standards Update No. 2025-1212/17/2025
954-220-50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
954-220-50-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
954-220-55-1 through 55-6
AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:06:57.235Z to 2026-09-09T23:06:57.235Z Record version: sha256:7012b417e47b9bf2273701a2c4b3d752c65f2cd73b91e6f61ef668c6387365d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/954/#05-overview-and-background) SEC content: no ##### [220-954-05-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:57.235Z to 2026-09-09T23:06:57.235Z Record version: sha256:18182335a6ec744b282acdfdcd2ea33dfc049693caa94d6be9cd37eeadc714d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the presentation of a statement of operations and a statement of changes in net assets by not-for-profit, business-oriented health care entities. Source downloaded (UTC): 2026-09-09T23:06:59.845Z to 2026-09-09T23:06:59.845Z Record version: sha256:b61861f8e5e2b59451452011aa6255240a333ab01a624f02771f93d0089f4857 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-954-15-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:59.845Z to 2026-09-09T23:06:59.845Z Record version: sha256:2fed6f73615a3b9d1a7007f44a0283174fd360abea11fce1cc8f5d2fe43b8e4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section 954-10-15), with specific entity qualifications noted below. #### Entities ##### [220-954-15-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:06:59.845Z to 2026-09-09T23:06:59.845Z Record version: sha256:d714e2844baeeba4749a4eaceb9bba20bba39c6158a07190eb9790a202bf9fee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies only to not-for-profit, business-oriented health care entities. Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:6ce29bf76252e802c867abb99f44d85fb0d3f8ec4523cf6efde3d94e1fd3b30c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/954/#45-other-presentation-matters) SEC content: no #### Statement of Activities ##### [220-954-45-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:2bdf6b9ceebaedb8414174a1c2ab6e5ad34800edec1bea5c651ffc0b09e374d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For not-for-profit, business-oriented health care entities, the statement of operations may be combined with the statement of changes in equity (net assets). #### Equity Transfers ##### [220-954-45-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:0e082ac510cbba35fbf2289f3c7e712813bfe7a1ebfd62969e0e64216ac90633 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Equity transfers](https://asc.understandingaccounting.org/glossary/e/#equity-transfer "An equity transfer is nonreciprocal. An equity transfer is a transaction directly between a transferor and a transferee. Equity transfers are similar to ownership transactions between a for-profit parent and its owned subsidiary (for example, additional paid-in capital or dividends). However, equity transfers can occur only between related not-for-profit entities (NFPs) if one controls the other or both are under common control. An equity transfer embodies no expectation of repayment, nor does the transferor receive anything of immediate economic value (such as a financial interest or ownership).") are reported separately as changes in net assets, are excluded from the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity."), and do not result in any step-up in basis of the underlying assets transferred. Paragraph [958-720-30-3](https://asc.understandingaccounting.org/asc/720/958/#720-958-30-3) provides guidance on services received from personnel of an [affiliate](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control.") that directly benefits the recipient not-for-profit, business-oriented health care entity and for which the affiliate does not charge the recipient entity. Paragraph [958-20-55-2B](https://asc.understandingaccounting.org/asc/958/20/#958-20-55-2B) describes the difference between an equity transfer and an equity transaction. ##### [220-954-45-3](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:fc7e1bbea023cbb1155b711fc39a3205a4a1bdfcc6ca80202e1101dc152a0221 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The increase in net assets associated with services received from personnel of an affiliate that directly benefit the recipient not-for-profit, business-oriented health care entity and for which the affiliate does not charge the recipient entity shall be reported as an equity transfer, regardless of whether those services are received from personnel of a not-for-profit affiliate or any other affiliate. The corresponding decrease in net assets or the creation or enhancement of an asset resulting from the use of services received from personnel of an affiliate shall be reported similar to how other such expenses or assets are reported. #### Functional Allocations ##### [220-954-45-4](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:ed2f3bdc62a40c0e75ef0478d9e3fe71b91c7947f3c64d003774a07ab0436e4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Functional expense classification](https://asc.understandingaccounting.org/glossary/f/#functional-expense-classification "A method of grouping expenses according to the purpose for which costs are incurred. The primary functional classifications of a not-for-profit entity are program services and supporting activities.") is a method of grouping expenses according to the purpose for which costs are incurred. The primary functional expense classifications are program services and supporting activities. The extent of classification and subclassification of expenses depends on many factors, such as the nature and complexity of the health care entity. For example, in complying with the requirements of paragraphs [958-205-45-6](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-6), [958-720-05-4](https://asc.understandingaccounting.org/asc/720/958/#720-958-05-4), and [958-720-45-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-2), some not-for-profit health care entities may present only two categories: health services (including inpatient services, outpatient procedures, home health services, and so forth) and general and administrative. Others may present additional distinctions such as physician services, research, and teaching. Functional allocations shall be based on full cost allocations. #### Performance Indicator and Intermediate Operating Measures ##### [220-954-45-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:9aa82b1bc329bb7904a424fa4969392c23366055bed5716510ba60853a9c72a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of operations for not-for-profit, business-oriented health care entities shall include a performance indicator. Because of the importance of the performance indicator, it shall be clearly labeled with a descriptive term such as revenues over expenses, revenues and gains over expenses and losses, recognized income, or performance earnings. Not-for-profit, business-oriented health care entities shall report the performance indicator in a statement that also presents the total changes in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). Other changes in net assets may be presented separately or in the same statement. ##### [220-954-45-6](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:ce9b64b2140c0127c312e7175df2bae6afc6bc7f68f48a5f85ae364cd0369c44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within the performance indicator. For example, within a class or classes of changes in net assets, an NFP may classify items as operating and nonoperating, expendable and nonexpendable, recognized and unrecognized, recurring and nonrecurring, or in other ways. 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)Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within the performance indicator. For example, within a class or classes of changes in net assets, an NFP may classify items as operating and nonoperating, expendable and nonexpendable, recurring and nonrecurring, or in other ways. ##### [220-954-45-7](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:178faab9188d37d6d01587edf23cebd92b0dd055e86de9a001dff550189d7633 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance neither requires nor precludes reporting such intermediate measures or subtotals. Guidance on the use of an intermediate measure of operations is discussed in paragraphs [958-220-45-11 through 45-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-11) . ##### [220-954-45-8](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:5572b90e4a2f4439e69089f3fc56ce9e906c4d54c5f4727675b40829913b3abb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Health care entities shall report the following items separately from the performance indicator: 1. a Transactions with owners acting in that capacity. 2. b Equity transfers involving other entities that control the reporting entity, are controlled by the reporting entity, or are under common control with the reporting entity. 3. c Receipt of donor-restricted [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution."). 4. d Contributions of, and assets released from donor restrictions related to, long-lived assets. 5. e Items that are required to be reported in or reclassified from other comprehensive income in accordance with paragraph [220-10-45-10A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-10A), which includes, but is not limited to, gains or losses, prior service costs or credits, and transition assets or obligations recognized in accordance with Topic 715; foreign currency translation adjustments; the portion of the gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments included in the assessment of effectiveness, and for all qualifying hedging relationships amounts excluded from the assessment of effectiveness and recognized in earnings through an amortization approach in accordance with paragraph [815-20-25-83A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-83A). 6. f Items that are required to be reported separately under specialized not-for-profit standards. 7. g Unrealized gains and losses on investments on other than trading debt securities, in accordance with paragraph [954-220-45-9](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9). 8. h Investment returns restricted by donors or by law. 9. i [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 10. j [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 11. k An [inherent contribution](https://asc.understandingaccounting.org/glossary/i/#inherent-contribution "A contribution that results if an entity voluntarily transfers assets (or net assets) or performs services for another entity in exchange for either no assets or for assets of substantially lower value and unstated rights or privileges of a commensurate value are not involved.") (see paragraph [958-805-25-31](https://asc.understandingaccounting.org/asc/805/958/#805-958-25-31)) that increases [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."), as described in paragraph [954-805-45-2](https://asc.understandingaccounting.org/asc/805/954/#805-954-45-2). 12. l The portion of the total change in the fair value of the liability resulting from a change in the instrument-specific credit risk, in accordance with paragraph [825-10-45-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-5). ##### [220-954-45-9](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:e55658f9da1a9bb33220b12ec2dcddeef7cecea975191918155ef169ffe009dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment return (including realized and unrealized gains and losses) not restricted by donors or by law shall be classified as changes in net assets without donor restrictions as follows: 1. a Included in the performance indicator are: 1. 1 Dividend, interest, and other similar investment income 2. 2 Realized gains and losses 3. 3 Unrealized gains and losses on trading debt securities (trading securities are defined in Topic 320) 4. 4 Credit loss expense (see Topic 326) 5. 5 Unrealized gains and losses and impairments on equity investments accounted for under Topic 321. 2. b Excluded from the performance indicator are unrealized gains and losses on debt securities, unless the debt security is a trading debt security. ##### [220-954-45-10](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:e4afbec947d4fe95be258c6fc6e810df331b34eee10cd4c125f17b89fc849d27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If gains and investment income that are limited to specific uses by donor-imposed restrictions are reported as increases in net assets without donor restrictions in accordance with paragraph [958-220-45-6](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-6), classification of those gains and investment income should be consistent with the previous paragraph. ##### [220-954-45-11](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:04.774Z to 2026-09-09T23:07:04.774Z Record version: sha256:1fb1b396e204af19035d41d9c20490f600bdc9da4b32007aaf3166a86b26f1da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [958-220-45-23 through 45-24](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-23) for additional guidance on reporting investment gains, losses, and income. Source downloaded (UTC): 2026-09-09T23:07:08.723Z to 2026-09-09T23:07:08.723Z Record version: sha256:d63980305f35132090980e43c3fa28b0e4666575d8c043145043f715595c8824 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/954/#50-disclosure) SEC content: no #### Performance Indicator and Intermediate Operating Measures ##### [220-954-50-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:08.723Z to 2026-09-09T23:07:08.723Z Record version: sha256:d6c5eb3a05b9506ef21d5c745bba58ec5bb070911fe100c4d2d13dce70fadd0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The notes to the financial statements shall include a description of the nature and composition of the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity."). ##### [220-954-50-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:08.723Z to 2026-09-09T23:07:08.723Z Record version: sha256:035cb233200b0a9ee258a5c8c07408b99f9282cba99966dc360d41add0cb4948 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-220-50-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-50-1), because terms such as operating income are used with different meanings, if an intermediate measure of operations is reported and its use is not apparent from the details provided on the face of the statement, a note to the financial statements shall describe the nature of the reported measure of operations or the items excluded from operations. Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:b8bfe576bbcc487d25f069294d408181deae30b531d4df584f3ec8d23759caa7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-954-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/220/954/#55-implementation-guidance-and-illustrations) SEC content: no ##### [220-954-55-1](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:86b923240e365bcfaaa060e86d2ead54c8ffd8a9977fa882c10d96f7eab788da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). #### Illustrations ##### [220-954-55-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:5115b3abe06fc9f29a5f5231a14c3b119b7647c8e9055d3fca3017ddfe22b37d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the accounting treatment and financial statement presentation for other-than-trading debt securities of a not-for-profit health care entity. ##### [220-954-55-3](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:d24f5bdd667a6f677a20691a5620eb9be6531d9d3e688254db0dd59c26d97494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other-than-trading debt securities are purchased in Year 1 at a cost of $100. At the end of Year 1, the fair value of the securities is $300. In Year 2, the securities are sold for $400. ##### [220-954-55-4](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:17fffedb1e62af5f80a11b1e267b240f197760d1e3b94020de10d10191aec110 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The journal entries are as follows: - Entry at the end of Year 1 to adjust the recorded value of the securities to fair value. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-BE37986E-0C66-410A-8C31-AAB3E4894CF5-low.gif) Investments $200 Change in net unrealized gains and losses on investments $200 - Entry at the end of Year 2 to record the sale of the securities. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-A1FE0B16-8732-4DDC-9FB8-2079A6621034-low.gif) Cash $400 Realized gain $300 Investments 100 Change in net unrealized gains and losses on investments 200 Investments 200 ##### [220-954-55-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:6e5c76f8455d3cab5a69279f7ee52b70fccd55dc62bf75a8b4b91da1f51055f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As discussed in paragraph [954-220-45-9](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9), unrealized gains and losses on debt securities (except for trading debt securities) are reported in the statement of operations outside of the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity.") and realized gains and losses are reported in the statement of operations within the performance indicator. ##### [220-954-55-6](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:12.667Z to 2026-09-09T23:07:12.667Z Record version: sha256:aa6bae89a7728323a36f6ecb1e58b2108edc438e99fd27865db8fe028ad455fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Two possible presentations of net investment return on the statement of operations of a not-for-profit health care entity that presents a performance indicator in accordance with the information and illustration in paragraphs [954-220-55-3 through 55-5](https://asc.understandingaccounting.org/asc/220/954/#220-954-55-3) are as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-6CAF0465-D086-4A5D-B812-2F15E450C85E-low.gif) Format 1: Year 1 Presentation of Net Investment Return Revenue " $ X,XXX " Expenses XXX Excess of revenues over expenses XXX "Investment return, net" XXX Less: Unrealized gains (losses) on other than trading debt securities excluded from performance indicator (200) Performance indicator XXX Add: Unrealized gains (losses) on other than trading debt securities excluded from performance indicator 200 Change in net assets without donor restrictions $ XXX - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-16721A69-F109-42F1-90BE-40F39536DE0B-low.gif) Format 2: Year 1 Presentation of Net Investment Return Revenue " $ X,XXX " Expenses XXX Excess of revenues over expenses XXX "Investment return, net, excluding unrealized gains (losses) on debt securities (other than trading)" XXX Performance indicator XXX Unrealized gains (losses) on other than trading debt securities excluded from performance indicator 200 Change in net assets without donor restrictions $ XXX Source downloaded (UTC): 2026-09-09T23:07:15.767Z to 2026-09-09T23:07:32.842Z Record version: sha256:62f2b09f0328ec91bb7e8af87644a9e74d6a692b164f9b7200ef13546dd13c79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958: Income Statement—Reporting Comprehensive Income — Not-for-Profit Entities ### Machine-generated study aids ```json { "summary": "ASC 220-958 governs the not-for-profit statement of activities — the NFP substitute for a business entity's income statement. It requires the statement to focus on the entity as a whole and report the change in total net assets, the change in net assets with donor restrictions, and the change in net assets without donor restrictions, with revenues, expenses, gains, losses, and reclassifications classified among those net asset classes. It addresses how to report these elements (including gross versus net display, investment return net of investment expenses, and optional intermediate measures of operations), but not when to recognize or how to measure them.", "key_points": [ "A statement of activities must focus on the entity as a whole and report the change in net assets, the change in net assets with donor restrictions, and the change in net assets without donor restrictions, articulating to net assets in the statement of financial position (220-958-45-1 through 45-2).", "Revenues are reported as increases in net assets without donor restrictions unless the donor limits use; donor-restricted contributions are donor-restricted support increasing net assets with donor restrictions, though restrictions met in the same period may be reported without donor restrictions if the policy is consistent and disclosed (220-958-45-5 through 45-6; 45-24).", "Expenses are reported as decreases in net assets without donor restrictions, except investment expenses, which are netted against investment return in the net asset class where the return is reported (220-958-45-7).", "Gains and losses on investments and other assets increase or decrease net assets without donor restrictions unless restricted by explicit donor stipulation or by law extending donor restrictions (220-958-45-8; 45-22).", "Reclassifications between net asset classes are required when purposes are fulfilled, restrictions expire with time or death of a split-interest beneficiary, restrictions are removed by donor or court, or a donor imposes new restrictions (220-958-45-13).", "Revenues and expenses of ongoing major or central activities are generally reported gross; peripheral or incidental transactions (including qualifying special events, netting only direct costs) may be reported net, and non-programmatic investment return must be reported net of external and direct internal investment expenses (220-958-45-14 through 45-19).", "An intermediate measure of operations is optional but, if presented, must appear in a statement that at minimum reports the change in net assets without donor restrictions, must include impairment losses, exit/disposal costs, and certain long-lived asset gains/losses, must exclude non-service-cost pension components, and its nature must be disclosed if not apparent (220-958-45-10 through 45-12; 220-958-50-1)." ], "categories": [ "Not-for-profit", "Presentation", "Financial statement presentation", "Disclosure" ], "audience_level": "intermediate", "student_note": "This is the NFP analog to the income statement, and exam questions almost always test the two-class net asset model plus the netting rules (investment return net of direct internal and external investment expenses; special events net only if peripheral). A common misunderstanding is thinking an \"operating\" subtotal is required — it is optional, but if used it triggers content constraints and note disclosure of what \"operations\" means.", "related_topics": [ "958-205", "958-605", "958-720", "954-220", "958-320", "205-20" ], "key_concepts": [ "statement of activities", "net assets with donor restrictions", "net assets without donor restrictions", "reclassification of net assets", "measure of operations", "net investment return", "direct internal investment expenses", "special events gross versus net reporting" ] } ``` Source downloaded (UTC): 2026-09-09T23:07:15.767Z to 2026-09-09T23:07:15.767Z Record version: sha256:94dfd0ffba586a585006552cb743b869a95b6c012d5f97c8d838636b40b3e98e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/958/#00-status) SEC content: no ##### [220-958-00-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:15.767Z to 2026-09-09T23:07:15.767Z Record version: sha256:8736957cba54fdf3a22ddd1f38efbb58390db898e64cd4d879b6871acff7d12e 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
AffiliateAmendedMaintenance Update 2018-12 (PDF)09/10/2018
AffiliateAddedMaintenance Update 2017-19 (PDF)11/15/2017
AgentAddedMaintenance Update 2017-19 (PDF)11/15/2017
Bankruptcy CodeAddedMaintenance Update 2017-19 (PDF)11/15/2017
Board-Designated Endowment FundAddedMaintenance Update 2017-19 (PDF)11/15/2017
Chapter 11AddedMaintenance Update 2017-19 (PDF)11/15/2017
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAddedMaintenance Update 2017-19 (PDF)11/15/2017
Disposal GroupAddedMaintenance Update 2017-19 (PDF)11/15/2017
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Donor-Imposed RestrictionAddedMaintenance Update 2017-19 (PDF)11/15/2017
Donor-Restricted Endowment FundAddedMaintenance Update 2017-19 (PDF)11/15/2017
Donor-Restricted SupportAddedMaintenance Update 2017-19 (PDF)11/15/2017
Endowment FundAddedMaintenance Update 2017-19 (PDF)11/15/2017
Equity TransferAddedMaintenance Update 2017-19 (PDF)11/15/2017
Functional Expense ClassificationAddedMaintenance Update 2017-19 (PDF)11/15/2017
Funds Functioning as EndowmentAddedMaintenance Update 2017-19 (PDF)11/15/2017
Inherent ContributionAddedMaintenance Update 2017-19 (PDF)11/15/2017
IntermediaryAddedMaintenance Update 2017-19 (PDF)11/15/2017
Lead InterestAddedMaintenance Update 2017-19 (PDF)11/15/2017
Natural Expense ClassificationAmendedAccounting Standards Update No. 2024-0311/04/2024
Natural Expense ClassificationAddedMaintenance Update 2017-19 (PDF)11/15/2017
Net AssetsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Net Assets with Donor RestrictionsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Net Assets without Donor RestrictionsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Not-for-Profit EntityAddedMaintenance Update 2017-19 (PDF)11/15/2017
Permanently Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Permanently Restricted Net AssetsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Programmatic InvestingAddedMaintenance Update 2017-19 (PDF)11/15/2017
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
ReclassificationSupersededAccounting Standards Update No. 2016-1408/18/2016
ReclassificationAddedMaintenance Update 2017-19 (PDF)11/15/2017
Reclassification of Net AssetsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Remainder InterestAddedMaintenance Update 2017-19 (PDF)11/15/2017
Restricted SupportSupersededAccounting Standards Update No. 2016-1408/18/2016
Restricted SupportAddedMaintenance Update 2017-19 (PDF)11/15/2017
Spending RateAddedMaintenance Update 2017-19 (PDF)11/15/2017
Split-Interest AgreementAddedMaintenance Update 2017-19 (PDF)11/15/2017
StipulationAddedMaintenance Update 2017-19 (PDF)11/15/2017
Temporarily Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Temporarily Restricted Net AssetsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Total ReturnAddedMaintenance Update 2017-19 (PDF)11/15/2017
TrusteeAddedMaintenance Update 2017-19 (PDF)11/15/2017
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsAddedMaintenance Update 2017-19 (PDF)11/15/2017
Unrestricted SupportSupersededAccounting Standards Update No. 2016-1408/18/2016
Unrestricted SupportAddedMaintenance Update 2017-19 (PDF)11/15/2017
Variance PowerAddedMaintenance Update 2017-19 (PDF)11/15/2017
958-220-05-1 through 05-3
AddedMaintenance Update 2017-19 (PDF)11/15/2017
958-220-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
958-220-15-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
958-220-45-1 through 45-30
AddedMaintenance Update 2017-19 (PDF)11/15/2017
958-220-45-7AmendedAccounting Standards Update No. 2020-1010/29/2020
958-220-45-9AmendedAccounting Standards Update No. 2025-1212/17/2025
958-220-45-21AmendedAccounting Standards Update No. 2020-1010/29/2020
958-220-45-31AddedAccounting Standards Update No. 2020-0709/17/2020
958-220-50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
958-220-55-1 through 55-20
AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:07:19.163Z to 2026-09-09T23:07:19.163Z Record version: sha256:f87c23b379438942a01b82d291a920fa9638643da40520e3210190abf0cdd716 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/958/#05-overview-and-background) SEC content: no ##### [220-958-05-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:19.163Z to 2026-09-09T23:07:19.163Z Record version: sha256:cc4dc5dab75ef6deed7bb41494ee09edadef66656115947dcf9343c809add45b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on a statement of activities for [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs). A statement of activities for NFPs is the financial statement that an NFP issues instead of a business entity's income statement. ##### [220-958-05-2](https://asc.understandingaccounting.org/asc/220/958/#220-958-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:19.163Z to 2026-09-09T23:07:19.163Z Record version: sha256:6fdcf11e7b21359e49fdaecc60f9288dbc273443dc407364ef0d9eed063b7a36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The primary purpose of a statement of activities is to provide relevant information about all of the following items: 1. a The effects of transactions and other events and circumstances that change the amount and nature of [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions.") 2. b The relationships of those transactions and other events and circumstances to each other 3. c How the NFP's resources are used in providing various programs or services. ##### [220-958-05-3](https://asc.understandingaccounting.org/asc/220/958/#220-958-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:19.163Z to 2026-09-09T23:07:19.163Z Record version: sha256:ef430b64633f9fbb62bf7a31ba171f83811e96659d8da2681e634f6ef5a9e36b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The information provided in a statement of activities, used with related disclosures and information in the other financial statements, helps donors, creditors, and others to do all of the following: 1. a Evaluate the NFP's performance during a period 2. b Assess an NFP's service efforts and its ability to continue to provide services 3. c Assess how an NFP's managers have discharged their stewardship responsibilities and other aspects of their performance. Source downloaded (UTC): 2026-09-09T23:07:22.603Z to 2026-09-09T23:07:22.603Z Record version: sha256:5957437b0bd87aa1f14f49966d789a4fbb0a893f98eb5b40f789aa8abbe97c77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-958-15-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:22.603Z to 2026-09-09T23:07:22.603Z Record version: sha256:7b3f820510127dde8d3b9da781bf7e78883fff82b60bc7c37886b1000baf1539 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15. It addresses how to report revenues, expenses, gains, and losses in financial statements; however, it does not specify when to recognize or how to measure those elements. #### Entities ##### [220-958-15-2](https://asc.understandingaccounting.org/asc/220/958/#220-958-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:22.603Z to 2026-09-09T23:07:22.603Z Record version: sha256:5cd229d5af2680fa780ed52fe81551d2033f3b0c9fa06974896a512dd37dbccf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The application of this Subtopic by not-for-profit, business-oriented health care entities as described in Section 954-10-05 is subject to additional guidance in Subtopic 954-220. Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:0e59fe121f51dfe7b9f4991e2b5cfde70ca920d1cf0c80bff8853cac220ebda5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/958/#45-other-presentation-matters) SEC content: no #### Totals and Format ##### [220-958-45-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:9fbb035aaf3ac7b200dabdf31377bba23863cd9757dbb9212cc8c75e559965b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities provided by a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) shall focus on the entity as a whole and shall report the following amounts for the period: 1. a The change in [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions.") 2. b The change in [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") 3. c The change in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [220-958-45-2](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:2fd05a31764e821be7f9ffed4c43275f9b1c7d9f4732965ed2e7afa87d0f0045 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The change in net assets shall articulate to the net assets or equity reported in the statement of financial position and it shall be referred to using a descriptive term such as change in net assets or change in equity. ##### [220-958-45-3](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:ba316037029f3d19d0fabafca8a8625b2322b10871ce7655812cab8ccb583eba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Revenues, expenses, gains, and losses increase or decrease net assets and shall be classified as provided in paragraphs [958-220-45-4 through 45-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-4) . [Reclassification of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing."), such as expirations of [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions."), shall be reported as separate items. #### Classification of Revenues, Expenses, Gains, and Losses ##### [220-958-45-4](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:1610956e9eb1eadc168d1702b689710ec8c55e1ae01ec0daeb8afb0ea8680dec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about revenues, expenses, gains, losses, and [reclassification of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing.") generally is provided by aggregating items that possess similar characteristics into reasonably homogeneous groups. ##### [220-958-45-5](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:c0915fafe2e5d4abad173b26eed106b7d3ef73f371e3e7948ceb49327e3fdfee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities shall report revenues as increases in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") unless the use of the assets received is limited by [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions."). For example, fees from rendering services and income from investments generally are without donor restrictions; however, income from donor-restricted perpetual or term endowments generally would increase [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). ##### [220-958-45-6](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:d159b50a32ddadc6b380cc86f6869e0686bb7f93b649ab285ce2326d3053a2f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to the Contributions Received Subsections of Subtopic 958-605, in the absence of a donor's explicit [stipulation](https://asc.understandingaccounting.org/glossary/s/#stipulation "A statement by a donor that creates a condition or restriction on the use of transferred resources.") or circumstances surrounding the receipt of the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") that make clear the donor's implicit restriction on use, contributions are reported as revenues or gains without donor restrictions, which increase net assets without donor restrictions. The classification of contributions received as revenues or gains depends on whether the transactions are part of the NFP's ongoing major or central activities (revenues), or are peripheral or incidental to the NFP (gains). Donor-restricted contributions are reported as restricted revenues or gains ([donor-restricted support](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-support "Donor-restricted revenues or gains from contributions that increase net assets with donor restrictions (donors include other types of contributors, including makers of certain grants).")), which increase net assets with donor restrictions. However, donor-restricted contributions whose restrictions are met in the same reporting period may be reported as support in net assets without donor restrictions, provided that an NFP has a similar policy for reporting investment gains and income, reports consistently from period to period, and discloses its accounting policy. ##### [220-958-45-7](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:8b606f52b71d2564100b013c75c5851fbd485d2b942c555e714848e22c252718 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities shall report expenses as decreases in net assets without donor restrictions, with the exception of investment expenses, which shall be netted against investment return and reported in the net asset class in which the net investment return is reported (see Subtopic 958-720). ##### [220-958-45-8](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:92400740e8366082965fd17b064a3535f32146b37a9a86d8ccf9f6205586c49d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities shall report gains and losses recognized on investments and other assets (or liabilities) as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulations or by law that extends donor restrictions. For example, net gains on investment assets, to the extent recognized in financial statements, are reported as increases in net assets without donor restrictions unless their use is restricted by a donor to a specified purpose or future period or by law that extends donor restrictions. See paragraphs [958-220-45-22 through 45-30](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) for additional guidance about reporting investment gains and losses, and paragraphs [958-205-45-13 through 45-13H](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-13) for additional guidance about reporting gains and losses on endowment funds. See paragraph [958-310-45-3](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-3) for additional guidance about bad debt expenses and losses. #### Measure of Operations ##### [220-958-45-9](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:fdd8e4e153fc068570a4cb6ecf29db2553ea67492d8b4230f8a33512fef0c210 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within a statement of activities. For example, within a class or classes of changes in net assets, an NFP may classify items as follows: 1. a Operating and nonoperating 2. b Expendable and nonexpendable 3. c Recognized and unrecognized 4. d Recurring and nonrecurring 5. e In other ways. 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)Classifying revenues, expenses, gains, and losses within classes of net assets does not preclude incorporating additional classifications within a statement of activities. For example, within a class or classes of changes in net assets, an NFP may classify items as follows: 1. a Operating and nonoperating 2. b Expendable and nonexpendable 3. c [Subparagraph superseded by Accounting Standards Update No. 2025-12.](https://asc.understandingaccounting.org/updates/asu-2025-12/) 4. d Recurring and nonrecurring 5. e In other ways. ##### [220-958-45-10](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:c250756a1741f0f8fa4cef13f4fa39a4009c65dd03b4f50e08099a0ad7b648ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic neither encourages nor discourages those further classifications. However, because terms such as operating income, operating profit, operating surplus, operating deficit, and results of operations are used with different meanings, if an intermediate measure of operations (for example, excess or deficit of operating revenues over expenses) is reported, it shall be in a financial statement that, at a minimum, reports the change in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") for the period. Example 1 (see paragraph [958-220-55-5)](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-5) illustrates a statement of revenues, expenses, and other changes in net assets without donor restrictions that subdivides all transactions and other events and circumstances to make an operating and nonoperating distinction. ##### [220-958-45-11](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:1d190db9d665b5c2cb3dc6c69f8c4a0c175a4f0bc36219043e410fb40d19311a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some limitations on an NFP's use of an intermediate measure of operations are imposed by other Subtopics. If a subtotal such as income from operations is presented, it shall include the following amounts: 1. a An impairment loss recognized for a long-lived asset (asset group) to be held and used, pursuant to paragraph [360-10-45-4](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-4) 2. b Costs associated with an exit or disposal activity that does not involve a discontinued operation, pursuant to paragraph [420-10-45-3](https://asc.understandingaccounting.org/asc/420/10/#420-10-45-3) 3. c A gain or loss recognized on the sale of a long-lived asset ([disposal group](https://asc.understandingaccounting.org/glossary/d/#disposal-group "A disposal group for a long-lived asset or assets to be disposed of by sale or otherwise represents assets to be disposed of together as a group in a single transaction and liabilities directly associated with those assets that will be transferred in the transaction. A disposal group may include a discontinued operation along with other assets and liabilities that are not part of the discontinued operation.")) that is not a component of an entity that qualifies for discontinued operations treatment, as defined in Subtopic 205-20, and pursuant to paragraph [360-10-45-5](https://asc.understandingaccounting.org/asc/360/10/#360-10-45-5). In addition, the subtotal such as income from operations shall exclude the components of net periodic pension cost and net periodic postretirement benefit cost other than the service cost component, pursuant to paragraph [958-715-45-3](https://asc.understandingaccounting.org/asc/715/958/#715-958-45-3). ##### [220-958-45-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:6a9f132d1596aadc8bc72820b347a7b2c18aebc0c7e6235f9580d7f65eb264f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-220-50-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-50-1), if an NFP's use of the term _operations_ is not apparent from the details provided on the face of the statement, a note to financial statements shall describe the nature of the reported measure of operations or the items excluded from operations. If an NFP presents internal board designations, appropriations, and similar actions on the face of the financial statements, a note to financial statements shall provide an appropriate disaggregation and description by type of these actions if not provided on the face of the financial statements. #### Reclassifications ##### [220-958-45-13](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:0f89d28bbe6097ca82c52e96a7b0b6dd2fae415c6f6e28bb08647fbc0f73dd66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Reclassifications of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing.")—that is, simultaneous increases in one net asset class and decreases in another—shall be made if any of the following events occur: 1. a The NFP fulfills the purposes for which the net assets were restricted. 2. b [Donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") expire with the passage of time or with the death of a [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest.") beneficiary (if the net assets are not otherwise restricted). 3. c A donor withdraws, or court action removes, previously imposed restrictions. 4. d A donor imposes restrictions on [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). For example, a donor may make a restricted [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") that is conditioned on the NFP restricting a stated amount of its net assets without donor restrictions. Such restrictions that are not reversible without donors' consent result in a reclassification of net assets without donor restrictions to [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). See paragraphs [958-205-45-9 through 45-12](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-9) for additional information about the expiration of donor-imposed restrictions. #### Gross versus Net Reporting of Amounts ##### [220-958-45-14](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:f04521bc78514525678383bf0e652eca4330610e5d4bfa579fc4827e913f07e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To help explain the relationships of an NFP's ongoing major or central operations and activities, a statement of activities generally shall report the gross amounts of revenues and expenses. However, investment return (related to total return investing and not [programmatic investing](https://asc.understandingaccounting.org/glossary/p/#programmatic-investing "The activity of making loans or other investments that are directed at carrying out a not-for-profit entity's purpose for existence rather than investing in the general production of income or appreciation of an asset (for example, total return investing). An example of programmatic investing is a loan made to lower-income individuals to promote home ownership.")) shall be reported net of external and direct internal investment expenses. An NFP may present the amounts of net investment return from portfolios that are managed differently or derived from different sources as separate, appropriately labeled line items on the statement of activities. For example, if an NFP has net investment return generated from operating cash, it may present that return separately from net investment return generated from its endowment. In addition, if appropriately labeled, an NFP may present the amounts of net investment return appropriated for spending separate from net investment return in excess of amounts appropriated for spending. ##### [220-958-45-15](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:ec96ac654d6fc66e23ff4d35478bac3b689122ed4c19b26596f7618c78461dd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Direct internal investment expenses involve the direct conduct or direct supervision of the strategic and tactical activities involved in generating investment return. These include, but are not limited to, both of the following: 1. a Salaries, benefits, travel, and other costs associated with the officer and staff responsible for the development and execution of investment strategy 2. b Allocable costs associated with internal investment management and supervising, selecting, and monitoring of external investment management firms. ##### [220-958-45-16](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:75e3ab40f33e19b5cce018d7155fc649432dc42248a46f3bf44a4590b658330a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Direct internal investment expenses do not include items that are not associated with generating investment return. For example, the costs associated with unitization and other such aspects of endowment management would not be allocated. ##### [220-958-45-17](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:9cf02396facd9a6819bc8eb6e211f1299f71d73225f251ee20b50ba81d2fc054 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities may report gains and losses as net amounts if they result from peripheral or incidental transactions or from other events and circumstances that may be largely beyond the control of the NFP and its management. Information about their net amounts generally is adequate to understand the NFP's activities. For example, an entity that sells land and buildings no longer needed for its ongoing activities commonly reports that transaction as a net gain or loss, rather than as gross revenues for the sales value and expense for the carrying value of the land and buildings sold. The net amount of those peripheral transactions, used with information in a statement of cash flows, usually is adequate to help assess how an entity uses its resources and how managers discharge their stewardship responsibilities. ##### [220-958-45-18](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:8e7259c67e5ce13b8859cd9a5bed88c060ee8320fcc8b15dbd9de6c31a640b81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The frequency of the events and the significance of the gross revenues and expenses distinguish major or central events from peripheral or incidental events. Events are ongoing major and central activities if they are normally part of an NFP's strategy and it normally carries on such activities or if the event's gross revenues or expenses are significant in relation to the NFP's annual budget. Events are peripheral or incidental if they are not an integral part of an NFP's usual activities or if their gross revenues or expenses are not significant in relation to the NFP's annual budget. Accordingly, similar events may be reported differently by different NFPs based on the NFP's overall activities. ##### [220-958-45-19](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:06493284309f4994be53981608a5d6a9941c6cb87628560dc77a6b76b121fcd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP may report net amounts for its special events if they result from peripheral or incidental transactions. However, so-called special events can be ongoing and major activities; if so, an NFP shall report the gross revenues and expenses of those activities. Costs netted against receipts from peripheral or incidental special events shall be limited to direct costs. See Example 4 (paragraph [958-220-55-11](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-11)) for three possible methods of complying with this requirement. #### Equity Transfers ##### [220-958-45-20](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:373f5b5307e4d149c24fedf71e49f59d885b124f3edb991fb6c907a27e379f21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Equity transfers](https://asc.understandingaccounting.org/glossary/e/#equity-transfer "An equity transfer is nonreciprocal. An equity transfer is a transaction directly between a transferor and a transferee. Equity transfers are similar to ownership transactions between a for-profit parent and its owned subsidiary (for example, additional paid-in capital or dividends). However, equity transfers can occur only between related not-for-profit entities (NFPs) if one controls the other or both are under common control. An equity transfer embodies no expectation of repayment, nor does the transferor receive anything of immediate economic value (such as a financial interest or ownership).") are reported separately as changes in net assets and do not result in any step-up in basis of the underlying assets transferred. However, a service received from personnel of an [affiliate](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control.") that directly benefits the recipient NFP and for which the affiliate does not charge the recipient NFP may be recorded at the fair value of that service in the circumstances indicated in paragraph [958-720-30-3](https://asc.understandingaccounting.org/asc/720/958/#720-958-30-3). Paragraph [958-20-55-2B](https://asc.understandingaccounting.org/asc/958/20/#958-20-55-2B) describes the difference between an equity transfer and an equity transaction. Paragraph [954-220-45-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2) provides additional guidance on the reporting of equity transfers for not-for-profit, business-oriented health care entities. ##### [220-958-45-21](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:63ff216edabf3a249323cd6cddc8056bc1e853c5fbd035c49fab5a867dc216d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The increase in net assets associated with services received from personnel of an affiliate that directly benefit the recipient NFP and for which the affiliate does not charge the recipient NFP shall be reported as an equity transfer, regardless of whether those services are received from personnel of a not-for-profit affiliate or any other affiliate. The corresponding decrease in net assets or the creation or enhancement of an asset resulting from the use of services received from personnel of an affiliate shall be reported similar to how other such expenses or assets are reported. See paragraph [958-720-45-56](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-56) for presentation guidance on services received from personnel of an affiliate. Paragraphs [954-220-45-2 through 45-3](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2) provide additional guidance for not-for-profit, business-oriented health care entities. #### Reporting Investment Gains, Losses, and Income ##### [220-958-45-22](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:fc15d30e4074c67661021ebc78302c522e5cddc346f1ddc659298ccd5a2d58d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-220-45-8](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-8), gains and losses on investments and dividends, interest, and other investment income shall be reported in the statement of activities as increases or decreases in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") unless their use is limited by [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") or by law that extends donor restrictions, in which case those amounts shall be reported as increases or decreases in [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). ##### [220-958-45-23](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:e124fd12aa286fd8c827097251dd5197d37d56d2ea626a9725cefc972932e823 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [220-958-45-24](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:4e934bfa8c81855d1ba3acc6b9e338bfca061dad4630ed75cdbaf7ca3598448c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains and investment income that are limited to specific uses by [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") may be reported as increases in net assets without donor restrictions if the restrictions are met in the same reporting period as the gains and income are recognized, provided that the [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) has a similar policy for reporting [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") received (see paragraphs [958-605-45-3 through 45-5](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-3) ), reports consistently from period to period, and discloses its accounting policy. ##### [220-958-45-25](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:4958e3e4a6913191d42d90fcf016764f329e0881a99bfd672220ee75c17372e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraphs [958-220-45-14 through 45-16](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14) , investment return, other than that which is programmatic in nature, shall be reported net of external and direct internal investment expenses. ##### [220-958-45-26](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:e91efaa67636684fe533536467b46eb18dca730d3cc921d377bf38d19b288388 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains and losses on the investments of a [donor-restricted endowment fund](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-endowment-fund "An endowment fund that is created by a donor stipulation (donors include other types of contributors, including makers of certain grants) requiring investment of the gift in perpetuity or for a specified term. Some donors or laws may require that a portion of income, gains, or both be added to the gift and invested subject to similar restrictions. The term does not include a Board-Designated Endowment Fund. See Endowment Fund.") are classified in accordance with paragraphs [958-205-45-13 through 45-13H](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-13). #### Presentation in a Statement of Activities with an Operating Measure ##### [220-958-45-27](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:85f0b63c724b80cc1a57360324d500381ae2c7e3530ebe4d24a759a6df560253 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs, primarily health care entities, would like to compare their results to business entities in the same industry. An NFP with those comparability concerns may report in a manner similar to business entities by classifying debt securities as available for sale or held to maturity as described in paragraphs [320-10-25-1 through 25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-1) and excluding the unrealized gains and losses on those securities (which are recognized in accordance with Subtopic 958-320) from an operating measure within the statement of activities. Not-for-profit, business-oriented health care entities, however, are required to exclude certain gains and losses from a performance measure (see paragraph [954-220-45-9](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-9)). ##### [220-958-45-28](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:2b3f5f52a532e5eb372c9c36945605a7eb3b659b79df38662ca69edfbd9b6875 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In general, amounts reported in an NFP's financial statements shall be based on the nature of the underlying transactions rather than on budgetary designations. ##### [220-958-45-29](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:b5a0a8f8b228e146aa93a10d290d7fd84fc7d87ee455827a0e1c5ffc07a9b7ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts of investment return based on budgetary designations may be displayed. However, in accordance with paragraph [958-220-45-14](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14), investment return, other than that which is programmatic in nature, shall be displayed net of external and direct internal investment expenses. Paragraph [958-320-55-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-7) provides an example of how an NFP could present net investment return. ##### [220-958-45-30](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:0ce8fb4585434964e326edac4ec7bf83bcffc0bc4e6a1376b0ccc32f60b10b17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs, in managing their endowment funds, use a [spending-rate](https://asc.understandingaccounting.org/glossary/s/#spending-rate "The portion of total return on investments used for fiscal needs of the current period, usually used as a budgetary method of reporting returns of investments. It is usually measured in terms of an amount or a specified percentage of a moving average market value. Typically, the selection of a spending rate emphasizes the use of prudence and a systematic formula to determine the portion of cumulative investment return that can be used to support fiscal needs of the current period and the protection of endowment gifts from a loss of purchasing power as a consideration in determining the formula to be used.") or [total return](https://asc.understandingaccounting.org/glossary/t/#total-return "A measure of investment performance that focuses on the overall return on investments, including interest and dividend income as well as realized and unrealized gains and losses on investments. Frequently used in connection with a spending-rate formula to determine how much of that return will be used for fiscal needs of the current period.") policy. Those policies consider total investment return—investment income (interest, dividends, rents, and so forth) plus net realized and unrealized gains (or minus net losses). Typically, spending-rate or total return policies emphasize the use of prudence and a rational and systematic formula to determine the portion of cumulative investment return that can be used to support operations of the current period and the protection of endowment gifts from a loss of purchasing power as a consideration in determining the formula to be used. Example 1 (see paragraph [958-320-55-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-4)) illustrates a statement of activities and example disclosures of an NFP that uses a spending-rate policy to include only a portion of its investment return in its operating measure. #### Contributed Nonfinancial Assets ##### [220-958-45-31](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:28.213Z to 2026-09-09T23:07:28.213Z Record version: sha256:91c51306122e95176dac55d19c31d62ea5e9aef2baae5349d9ff27e4cc097787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall present contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash and other financial assets, as discussed in paragraph [958-605-45-7A](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-7A). See paragraph [958-605-50-1A](https://asc.understandingaccounting.org/asc/605/958/#605-958-50-1A) for disclosure requirements for contributed nonfinancial assets. Source downloaded (UTC): 2026-09-09T23:07:30.799Z to 2026-09-09T23:07:30.799Z Record version: sha256:36b77a7d7119623de9115b4295ed49ecb7821b3614c11762805630fc7e7e25ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/958/#50-disclosure) SEC content: no ##### [220-958-50-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:30.799Z to 2026-09-09T23:07:30.799Z Record version: sha256:6cf3c32e55711fd779fd05a7598812e191f3da3d00ad0db5b576a385c2d0e68b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) shall disclose the following information in the notes to financial statements: 1. a If an NFP's use of the term _operations_ is not apparent from the details provided on the face of the statement of activities, a description of the nature of the reported measure of operations or the items excluded from operations (see Example 5 in paragraph [958-220-55-16](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-16) for a case in which this information is apparent on the face of the statement of activities and a case in which this information is disclosed in the notes to the financial statements). 2. aa If an NFP presents internal board designations, appropriations, and similar actions on the face of the financial statements, an appropriate disaggregation and description by type of these actions if not provided on the face of the financial statements (see Example 5 in paragraph [958-220-55-16](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-16) for a case in which this information is apparent on the face of the financial statements and a case in which this information is disclosed in the notes to the financial statements). 3. b [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 4. c If not provided on the face of the statement of activities or as a separate statement, all expenses in one location. The relationship between functional and natural classification for all expenses shall be presented in an analysis that disaggregates [functional expense classifications](https://asc.understandingaccounting.org/glossary/f/#functional-expense-classification "A method of grouping expenses according to the purpose for which costs are incurred. The primary functional classifications of a not-for-profit entity are program services and supporting activities.") by their [natural expense classifications](https://asc.understandingaccounting.org/glossary/n/#natural-expense-classification "A method of grouping expenses according to the kinds of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, professional services, supplies, interest expense, rent, utilities, and depreciation. (P) December 16, 2026; (N) December 16, 2026220-40-65-1A method of grouping expenses according to the types of economic benefits received in incurring those expenses. Examples of natural expense classifications include salaries and wages, employee benefits, nonemployee professional services, supplies, interest expense, rent, utilities, and depreciation."). Investment expenses that are netted against investment return shall not be included (see paragraph [958-720-45-15](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-15)). 5. d A qualitative description of the methods used to allocate costs among program and support functions (see paragraph [958-720-50-1](https://asc.understandingaccounting.org/asc/720/958/#720-958-50-1)). Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:d8573673ecf6d73e34bf4b2f0a3f52d9225e87ef28cef073e60838831d604459 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/220/958/#55-implementation-guidance-and-illustrations) SEC content: no ##### [220-958-55-1](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:02a8decbb7cf6f71c4a0c367cb45ea1c7d483dcbe2d47928e7f32108c4fb58cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section, which is an integral part of the requirements of this Subtopic, provides general guidance to be used in the presentation of a statement of activities by a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP). #### Implementation Guidance ##### [220-958-55-2](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:c65e3124bcc768f248af59f155d3c6737eee9f3d54a891e3f871e4d6bced60e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entitywide totals are not necessary for individual line items of revenues, expenses, gains, or losses. Information about reasonably homogeneous components of revenues, such as [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") without donor restrictions that are available to support current expenses and donor-restricted contributions that are restricted to acquiring land and buildings, generally is more meaningful than the aggregated total of those components. ##### [220-958-55-3](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:e5467a2c3da587738057760067b0b2b9ab848805ab57405109727cce9a235e02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disaggregated information that permits users of financial information to relate components of revenues to components of expenses also is often preferable to information provided by their aggregated amounts. For example, information that permits analysis of the levels of revenues from tuition in relation to expenses for instruction and other academic services and of revenues from room and board fees in relation to expenses for housing and food services generally is more meaningful than totals of aggregated items of revenues, such as student tuition and fees, or aggregated items of expenses, such as salaries, heat, electricity, or supplies. Those who prepare financial statements generally are best able to make judgments about the extent to which financial statements or notes to financial statements should provide disaggregated information about various items of revenues or expenses and this Subtopic need not limit those judgments. #### Illustrations ##### [220-958-55-4](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:67e6c873a6297e5653a6af85825ab917c404441b1a81cc811bb57bef0c29ccef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the following illustrations, guidance in paragraphs [958-205-55-10 through 55-17](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-10) illustrates three formats of statements of activities. Paragraph [958-205-55-5](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-5) provides the facts and transactions that are reflected in those illustrative statements. ##### [220-958-55-5](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:dedc021c305f4e29caed26a589b9dd07158dadd33802e126260ab38ff2ec5c7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates a statement of revenues, expenses, and other changes in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") that subdivides all transactions and other events and circumstances to make an operating and nonoperating distinction pursuant to paragraphs [958-220-45-9 through 45-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-9) . This Example uses part 1 of 2 of Format C in paragraph [958-205-55-15](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-15) to show a measure of operations—change in net assets without donor restrictions from operations. ##### [220-958-55-6](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:6bf8eca1c7d6448b2e9b281c5af24bedac336a2475c18aca3b597b658efe4a1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The shaded areas depict the constraints imposed by this Subtopic and by generally accepted accounting principles (GAAP) to report appropriately labeled subtotals for changes in classes of [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions.") before the effects of discontinued operating segments, if any. The unshaded areas depict areas within the statement for which there is latitude to sequence and classify items of revenues and expenses. Other formats also may be used. For example, the single-statement Format B approach of paragraph [958-205-55-14](https://asc.understandingaccounting.org/asc/205/958/#205-958-55-14) may be helpful in describing an NFP's ongoing major or central operations if that NFP's view of operating activities includes receiving donor-restricted revenues from contributions and investment income. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-96A5F614-8049-4F04-AC16-23592B024E8A-low.gif) Other Not-for-Profit Organization " Statement of Revenues, Expenses, and" Other Changes in Net Assets without Donor Restrictions " Year Ended June 30, 20X1" (in thousands) Operating revenues and support: Fees from providing services "$ X,XXX" Operating support "X,XXX" Net assets released from restrictions " X,XXX" Total operating revenues and support "XX,XXX" Operating expenses: Programs "XX,XXX" Management and general "X,XXX" Fund raising " X,XXX" Total operating expenses " XX,XXX" Change in net assets from operations "X,XXX" Other changes: \[Items considered to be nonoperating\] "X,XXX" Change in net assets before effects of discontinued operating segments "XX,XXX" Discontinued operations "X,XXX" Change in net assets "XX,XXX" Net assets at beginning of year "XXX,XXX" Net assets at end of year "$XXX,XXX" ##### [220-958-55-7](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:efa020a6e16d39de919597fd097b438f06e97216284ebf91307735fe67bb288f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the application of paragraph [958-205-45-5](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-5), as generally accepted accounting principles (GAAP) requires the display of an appropriately labeled subtotal for change in a class of net assets before the effects of a discontinued operation (see paragraph [205-20-45-1A](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1A)). For instance, using the columnar format, a statement of activities would report the effects of a discontinued operation as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C9F8BCB8-608A-44FB-81B6-0534916253DC-low.gif) Without Donor Restrictions With Donor Restrictions Total Change in net assets before discontinued operations " $11,558 " " $3,892 " " $15,450 " Discontinued operations (Note X) XXX XXX XXX Change in net assets " $ XX,XXX " " $ X,XXX " " $ XX,XXX " ##### [220-958-55-8](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:76d39e51bafda7b06c129e52689f9a22c12ce11aad992e6e8bdefe166dc844fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides three possible methods of displaying fundraising efforts in the revenue section of the statement of activities, while still conforming to the requirements of paragraph [958-605-45-10](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-10). Methods 2 and 3 display the total amounts raised. ##### [220-958-55-9](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:92f292e3fcc9b3a5e86088f7d6fb1abb008a7faa17e1f1cf83968a539d1e27b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A raises $6,000 of [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution."), $100 of other support, and $4,000 accounted for as [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf."), [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary."), or [intermediary](https://asc.understandingaccounting.org/glossary/i/#intermediary "Although in general usage the term intermediary encompasses a broad range of situations in which an entity acts between two or more other parties, in this usage, it refers to situations in which a recipient entity acts as a facilitator for the transfer of assets between a potential donor and a potential beneficiary (donee) but is neither an agent or trustee nor a donee and donor.") transactions because donors have specified beneficiaries without granting [variance power](https://asc.understandingaccounting.org/glossary/v/#variance-power "The unilateral power to redirect the use of the transferred assets to another beneficiary. A donor explicitly grants variance power if the recipient entity's unilateral power to redirect the use of the assets is explicitly referred to in the instrument transferring the assets. Unilateral power means that the recipient entity can override the donor's instructions without approval from the donor, specified beneficiary, or any other interested party."). Of the $4,000 accounted for as agent, trustee, or intermediary transactions, Entity A pays out $3,600 to specified beneficiaries and retains $400 as its administrative fee. ##### [220-958-55-10](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:f4562eb6f8aaf360df7b16ff5d6356a1b66e9eb8155bd4f64ce9139fdda91b13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Each of the methods reports Entity A's revenues ($6,500) in a way that is both easily understood by users of the financial statements and representationally faithful. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-78EA70F9-5C41-40AB-B00E-EEE3144FE98D-low.gif) Method 1 Contributions " $6,000 " Other support 100 Total support " 6,100 " Administrative fees retained on amounts designated by donors for specific organizations 400 Total support and revenue " $6,500 " Method 2 Contributions " $6,000 " Other support 100 Total support " 6,100 " Other revenue: Amounts designated by donors for specific organizations " $4,000 " Less: Amounts held for or remitted to those organizations " 3,600 " Administrative fees retained on amounts designated by donors for specific organizations 400 Total support and revenue " $6,500 " Method 3 Total amounts raised (a) " $10,000 " Less: Amounts designated by donors for specific organizations " 4,000 " Total contributions " 6,000 " Other revenue: Other support 100 Administrative fees retained on amounts designated by donors for specific organizations 400 Total support and revenue " $6,500 " (a) "Other terms, such as campaign results or campaign efforts, may be used." ##### [220-958-55-11](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:a94630b3d858f54e23713f4a8e986ffdbebc20fd65d8b85b942eaa3410d05ad1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [958-220-45-19](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-19). It provides three possible methods to display in the statement of activities a special event that is an ongoing and major activity. ##### [220-958-55-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:03ca2e337e279d869e21941abef4dba1e1002513349474720b8ae88d557f3ada Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A, B, and C share the following assumptions: 1. a Not-for-Profit Entity B (NFP B) has a special event that is an ongoing and major activity with ticket revenue of $100. 2. b The activity does not meet the audience criterion in paragraphs [958-720-45-48 through 45-49](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-48) , and, therefore, all costs of the activity, other than the direct donor benefits, should be reported as fundraising. 3. c The event includes a dinner that costs NFP B $25 and that has a fair value of $30. 4. d In addition, NFP B incurs other direct costs of the event of $15 in connection with promoting and conducting the event, including incremental direct costs incurred in transactions with independent third parties and the payroll and payroll-related costs for the activities of employees who are directly associated with, and devote time to, the event. These other direct costs have been included in fundraising expenses. The other direct costs are unrelated to the direct benefits to donors and, accordingly, should not be included as costs of benefits to donors. The other direct costs include $5 that otherwise might be considered management and general costs if they had been incurred in a different activity, and fundraising costs of $10. 5. e In addition, NFP B has all of the following transactions, which are unrelated to the special event: 1. 1 [Contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") without donor restrictions of $200 2. 2 Program expenses of $60 3. 3 Management and general expenses of $20 4. 4 Fundraising expenses of $20. ##### [220-958-55-13](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:1e0b7d99fce639d835ac1a2b0c30dbf373fe344696cf05f9294ef516434e5d0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP B may report the gross revenues of special events and other fundraising activities with the cost of direct benefits to donors (meals and facilities rental) displayed as a line item deducted from the special event revenues, as follows: - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C4FA10CF-606E-422D-84B2-D6CE269F4806-low.gif) Changes in net assets without donor restrictions: Contributions $200 Special event revenue 100 Less: Costs of direct benefits to donors (25) Net revenues from special events 75 Contributions and net revenues from special events 275 Other expenses: Program 60 Management and general 20 Fundraising 35 Total other expenses 115 Increase in net assets without donor restrictions $160 ##### [220-958-55-14](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:df47013710190a29a31b1b3eb6532547bc730b736c0bc30eee30565462752438 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP B may report the gross revenues of special events and other fundraising activities with the cost of direct benefits to donors (meals and facilities rental) displayed in the same section of the statement of activities as are other programs or supporting services and allocated, if necessary, among those various functions, as follows: - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-79DC0A7B-3F76-4B18-9347-9DA8245F64A0-low.gif) Changes in net assets without donor restrictions: Revenues: Contributions $200 Special event revenue 100 Total revenues 300 Expenses: Program 60 Costs of direct benefits to donors 25 Management and general 20 Fundraising 35 Total other expenses 140 Increase in net assets without donor restrictions $160 ##### [220-958-55-15](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:7f38fcfab173c47c2702c3ead661cf52ef690bae6c7dedd4ea110c0f20ad0750 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP B may report the gross revenue from special events and other fundraising activities as part exchange (for the fair value the participant received) and part contribution (for the excess of the payment over that fair value), as follows: - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-1E253B69-3788-4FDF-A1B4-523AEF50DCB9-low.gif) Changes in net assets without donor restrictions: Contributions $270 Dinner sales 30 Less: Costs of direct benefits to donors (25) Gross profit on special events 5 Contributions and net revenues from special events 275 Other expenses: Program 60 Management and general 20 Fundraising 35 Total other expenses 115 Increase in net assets without donor restrictions $160 ##### [220-958-55-16](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:418af4ebb3ecbf6d74639aae8b975a87dee2b859d6719880e83b1d2bb4c72d74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required in accordance with paragraph [958-220-50-1(a) through (aa)](https://asc.understandingaccounting.org/asc/220/958/#220-958-50-1) if an entity elects to present a measure of operations. It provides a case in which the disclosures are apparent on the face of the statement of activities and a case in which the disclosures are provided in the notes to the financial statements. There are multiple ways in which an NFP could present this information. The cases provided are two alternatives presented for illustration purposes. ##### [220-958-55-17](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:23f9e73da896569228a76b6e63a730ff933b823928ed417e6dff521307dbee21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Case is an example of a statement of activities of Not-for-Profit Entity A (NFP A) in which the disclosures required in paragraph [958-220-50-1(a) through (aa)](https://asc.understandingaccounting.org/asc/220/958/#220-958-50-1) are apparent from the details provided on the face of the statement of activities. This Case illustrates one way in which an NFP can present governing board actions on a statement of activities and is not meant to be prescriptive of a specific format. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-1A6E526D-618D-4027-8972-4A1595925F81-low.gif) Not-for-Profit Entity A Statement of Activities "Year Ended June 30, 20X1" Without Donor Restrictions With Donor Restrictions Total "Operating revenues, gains, and other support:" Contributions " $X,XXX " " $ X,XXX " " $XX,XXX " Less: Contributions designated by board for capital projects " (3,000)" " (3,000)" Contributions and bequests designated by board for quasi-endowment " (5,000)" " (5,000)" Investment returns appropriated from quasi-endowment " 1,025 " " 1,025 " Fees " X,XXX " " X,XXX " Programmatic investing return XX XX Other XXX XXX Net assets released from restrictions Investment return appropriated and released for current operations from donor-restricted endowment " X,XXX " " (X,XXX) " \[Other net assets released from restrictions\] " X,XXX " " (X,XXX) " "Total operating revenues, gains, and other support" " XX,XXX " " X,XXX " " XX,XXX " Operating expenses: Program A " XX,XXX " Program B " X,XXX " Program C " X,XXX " Management and general " X,XXX " Fundraising " X,XXX " Total operating expenses " XX,XXX " " XX,XXX " Operating revenues and support in excess of operating expenses " XX,XXX " " X,XXX " " X,XXX " "Investment return, net" " X,XXX " " XX,XXX " " XX,XXX " \[Other items considered to be nonoperating\] " X,XXX " " X,XXX " " X,XXX " Investment returns appropriated for current operations from quasi-endowment " (1,025)" " (1,025)" Contributions designated by board for capital projects " 3,000 " " 3,000 " Contributions and bequests designated by board for quasi-endowment " 5,000 " " 5,000 " Loss on extinguishment of debt " (X,XXX) " " (X,XXX) " Change in fair value of interest rate swap " X,XXX " " X,XXX " Change in net assets " $XX,XXX " " $ X,XXX " " $XX,XXX " ##### [220-958-55-18](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:3d2ef0c4eb0057625554acb7df076abc55a4c98e2d5e29affb27ccc89e655aa1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Case is an example of a statement of activities of NFP A in which the disclosures required in paragraph [958-220-50-1(a) through (aa)](https://asc.understandingaccounting.org/asc/220/958/#220-958-50-1) are not apparent from the details provided on the face of the statement of activities. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-803A04E3-CE69-4132-B40B-94F6F3374CAD-low.gif) Not-for-Profit Entity A Statement of Activities "Year Ended June 30, 20X1" Without Donor Restrictions With Donor Restrictions Total "Operating revenues, gains, and other support:" Contributions " $X,XXX " " $ X,XXX " " $XX,XXX " Fees " X,XXX " " X,XXX " Programmatic investing return XX XX Other XXX XXX Net assets released from restrictions Investment return appropriated and released for current operations from donor-restricted endowment " X,XXX " " (X,XXX) " \[Other net assets released from restrictions\] " X,XXX " " (X,XXX) " "Total operating revenues, gains, and other support" " XX,XXX " " X,XXX " " XX,XXX " Operating expenses: Program A " XX,XXX " Program B " X,XXX " Program C " X,XXX " Management and general " X,XXX " Fundraising " X,XXX " Total operating expenses " XX,XXX " " XX,XXX " Net transfer of funds from operations " (6,975)" " (6,975)" Operating revenues in excess of operating expenses and transfers " XX,XXX " " X,XXX " " XX,XXX " Other changes: "Investment return, net" " X,XXX " " X,XXX " " X,XXX " Contributions " X,XXX " " X,XXX " Other " X,XXX " " X,XXX " Net transfer of funds to operations " 6,975 " " 6,975 " Change in net assets " $XX,XXX " " $ X,XXX " " $XX,XXX " ##### [220-958-55-19](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:a9df5c6abae5554a31b01504ce9da4cf245b0b66d383dfb424c6ebda4e2fae29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A would add the following illustrative text to its note to financial statements that describes the nature of the reported measure of operations or the items excluded from operations and provides an appropriate disaggregation and description by type of internal board designations, appropriations, and similar actions. - Measure of Operations - NFP A's operating revenues in excess of expenses and transfers include all operating revenues and expenses that are an integral part of its programs and supporting activities, net assets released from donor restrictions to support operating expenditures, and transfers from Board-designated and other nonoperating funds to support current operating activities. The measure of operations includes support for operating activities from both donor-restricted net assets and net assets without donor restrictions designated for long-term investment (the donor-restricted and quasi-endowment) according to NFP A's spending policy, which is detailed in Note X. The measure of operations excludes investment return in excess of (less than) amounts made available for current support, gains and losses on extinguishment of debt, and changes in fair value of the interest rate swap. Included in the line items _net transfer of funds to operations_ and _net transfer of funds from operations_ is investment return appropriated from quasi-endowment to operations of $1,025, contributions designated by the Board of Trustees for capital projects from operations of $3,000, and contributions and bequests designated by the Board of Trustees for quasi-endowment from operations of $5,000. ##### [220-958-55-20](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:07:32.842Z to 2026-09-09T23:07:32.842Z Record version: sha256:0e86ff9825bac5d01a20654d287782a7a54051e809922be8e05ccaef11d85ac1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is an Example of a statement of activities in which NFP A presents net investment return in separate, appropriately labeled line items in accordance with paragraph [958-220-45-14](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14). In this Example, NFP A presents net investment return in two separate line items to distinguish net investment return appropriated for current operations from net investment return for use in future periods. There may be other cases in which an NFP may present net investment return in separate line items in accordance with paragraph [958-220-45-14](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-14). - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-77A20D98-DE95-40C0-8E82-7BA6F019998A-low.gif) Not-for-Profit Entity A Statement of Activities "Year Ended June 30, 20X1" Without Donor Restrictions With Donor Restrictions Total "Operating revenues, gains, and other support:" Contributions " $X,XXX " " $ X,XXX " " $XX,XXX " Other XXX XXX "Investment return, net, appropriated for spending" " X,XXX " "X,XXX" " X,XXX " Net assets released from restrictions "X,XXX" "(X,XXX)" "Total operating revenues, gains, and other support" " XX,XXX " " X,XXX " " XX,XXX " Operating expenses "XX,XXX" "XX,XXX" "Total operating revenues, gains, and other support in excess of operating expenses" " XX,XXX " "X,XXX" " XX,XXX " Other changes: "Investment return, net, in excess of amounts appropriated for spending" " X,XXX " " X,XXX " " X,XXX " Other " X,XXX " " X,XXX " Change in net assets " $XX,XXX " " $ X,XXX " " $XX,XXX "