# ASC Topic 270: Interim Reporting Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/270/) 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): 2026-09-09T23:19:37.216Z to 2026-09-09T23:21:01.066Z Record version: sha256:049a2814081ce00fad71197f3e8bd31166edbc4612f06af41954b6699f47980e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 270 explains how GAAP applies to periods shorter than a year and what must be disclosed in interim reports. Its organizing idea is the "integral part" view (270-10-45-1): an interim period is a piece of the annual period, so results follow the accounting principles used in the latest annual statements, subject to specified modifications — interim inventory exceptions (LIFO base liquidations, estimated gross profit rates, temporary market declines), allocation of year-end-type costs such as bonuses and shrinkage, and tax computed on ordinary income at an estimated annual effective tax rate. ASC 270-740 supplies the hybrid tax model (annual effective rate for ordinary income; discrete recognition of unusual items, tax law/rate changes, beginning-of-year valuation allowance changes, and certain share-based payment effects), while ASC 270-932 relieves oil and gas entities from repeating Subtopic 932-235 reserve disclosures in interim reports unless a major discovery or other significant event changes the reserve information. The unifying takeaway: smooth what is annual in nature over the interim periods, but report discrete, material, or unusual events in the period they occur — disposals of a component and unusual or infrequently occurring items are never prorated (270-10-45-11). Source downloaded (UTC): 2026-09-09T23:19:37.216Z to 2026-09-09T23:20:17.142Z Record version: sha256:9b57145715978427533f6612b3f81a6894719d41c889acaf861bd4bd5afa04fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10: Interim Reporting — Overall ### Machine-generated study aids ```json { "summary": "ASC 270-10 governs how GAAP is applied to interim financial information (monthly, quarterly, or other periods shorter than a year) and what must be disclosed. Its core rule is the \"integral part\" view: each interim period is viewed primarily as an integral part of an annual period, so results generally follow the accounting principles used in the latest annual financial statements, with specified modifications (e.g., inventory, LIFO liquidations, cost allocations, estimated annual effective tax rate). It also sets minimum disclosure requirements for publicly traded companies reporting summarized interim data, which ASU 2025-11 replaces with disclosure requirements keyed to interim financial statements and notes prepared in accordance with GAAP, including condensed statements.", "key_points": [ "Each interim period shall be viewed primarily as an integral part of an annual period, and interim results shall be based on the accounting principles and practices used in the latest annual financial statements unless a change was adopted in the current year (270-10-45-1; 270-10-45-2).", "Revenue is recognized in interim periods on the same Topic 606 basis followed for the full year, and projected contract losses under Subtopic 605-35 are recognized in full in the interim period in which their existence becomes evident (270-10-45-3).", "Costs are split between costs associated with revenue (charged when the related revenue is recognized) and all other costs and expenses (charged as incurred or allocated based on time expired, benefit received, or activity), with arbitrary assignment prohibited and no deferral of gains/losses that would not be deferred at year-end (270-10-45-4; 270-10-45-8).", "Interim inventory exceptions: disclose use of estimated gross profit rates; do not give effect to a LIFO base liquidation expected to be replaced by year-end (charge cost of sales with expected replacement cost); do not defer Subtopic 330-10 inventory losses beyond the interim period, but recognize later-period recoveries up to previously recognized losses; defer planned purchase price and volume variances (270-10-45-6).", "Year-end-type items (inventory shrinkage, allowance for uncollectible accounts, quantity discounts, discretionary bonuses) shall be estimated and assigned so each interim period bears a reasonable portion of the anticipated annual amount (270-10-45-10).", "Effects of disposals of a component and material unusual or infrequently occurring items are reported separately and shall not be prorated over the balance of the fiscal year; entities with material seasonal variations must disclose the seasonal nature of their activities (270-10-45-11; 270-10-45-11A).", "Changes in accounting estimate (including the estimated effective annual tax rate) are accounted for in the period of change with no restatement of prior interim information (270-10-45-14); publicly traded companies reporting summarized interim data must disclose the minimum items in 270-10-50-1 (revenues, tax provision, net income, comprehensive income, EPS, seasonality, contingencies, accounting changes, etc.), which ASU 2025-11 supersedes in favor of 270-10-50-8 through 50-70." ], "categories": [ "Presentation", "Disclosure", "Financial statement presentation", "Income taxes" ], "audience_level": "intermediate", "student_note": "Exam questions almost always test the integral-part view and its exceptions: inventory declines and unusual/infrequent items are recognized fully in the interim period they occur (never prorated), while annual-type costs such as property taxes, bonuses, and quantity discounts are allocated across interim periods using annual estimates. A common misunderstanding is treating each quarter as a wholly discrete period — and forgetting that income taxes are computed using the estimated annual effective tax rate under Subtopic 740-270.", "related_topics": [ "740-270", "250-10", "330-10", "205-20", "280-10", "606-10" ], "key_concepts": [ "interim reporting", "integral part of annual period", "estimated annual effective tax rate", "lifo liquidation at interim date", "cost allocation among interim periods", "condensed financial statements", "seasonality disclosure", "minimum interim disclosures" ] } ``` Source downloaded (UTC): 2026-09-09T23:19:37.216Z to 2026-09-09T23:19:37.216Z Record version: sha256:5b2a5521dd47a8c3d2a91709b3d617ce1b8041f394478a6301af873fcbfc968e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/270/10/#00-status) SEC content: no ##### [270-10-00-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:37.216Z to 2026-09-09T23:19:37.216Z Record version: sha256:0e4b80e0139e795e59a855ddebf310b4f2dea247e5804b4d0a364087232b003d 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
AcquireeSupersededAccounting Standards Update No. 2025-1112/08/2025
AcquirerSupersededAccounting Standards Update No. 2025-1112/08/2025
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
Acquisition by a Not-for-Profit EntitySupersededAccounting Standards Update No. 2025-1112/08/2025
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
BusinessSupersededAccounting Standards Update No. 2025-1112/08/2025
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
Business CombinationSupersededAccounting Standards Update No. 2025-1112/08/2025
Change in the Reporting EntityAddedAccounting Standards Update No. 2023-0610/09/2023
Condensed StatementsAddedAccounting Standards Update No. 2025-1112/08/2025
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
Contract AssetSupersededAccounting Standards Update No. 2025-1112/08/2025
Contract AssetAddedAccounting Standards Update No. 2014-0905/28/2014
Contract LiabilitySupersededAccounting Standards Update No. 2025-1112/08/2025
Contract LiabilityAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Financial AssetSupersededAccounting Standards Update No. 2025-1112/08/2025
Financial Asset (2nd def. )AddedAccounting Standards Update No. 2016-1912/14/2016
Financing ReceivableSupersededAccounting Standards Update No. 2016-1306/16/2016
Financing ReceivableAddedAccounting Standards Update No. 2010-2007/21/2010
LeaseSupersededAccounting Standards Update No. 2025-1112/08/2025
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeSupersededAccounting Standards Update No. 2025-1112/08/2025
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorSupersededAccounting Standards Update No. 2025-1112/08/2025
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Net Realizable ValueAddedAccounting Standards Update No. 2015-1107/22/2015
Not-for-Profit EntitySupersededAccounting Standards Update No. 2025-1112/08/2025
Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
Performance ObligationAddedAccounting Standards Update No. 2014-0905/28/2014
Public Business EntitySupersededAccounting Standards Update No. 2025-1112/08/2025
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0905/28/2014
Publicly Traded Company (1st def.)SupersededAccounting Standards Update No. 2025-1112/08/2025
RevenueAddedAccounting Standards Update No. 2014-0905/28/2014
Securities and Exchange Commission RegistrantAddedAccounting Standards Update No. 2025-1112/08/2025
Security (2nd def.)SupersededAccounting Standards Update No. 2025-1112/08/2025
Transaction PriceSupersededAccounting Standards Update No. 2025-1112/08/2025
Transaction PriceAddedAccounting Standards Update No. 2014-0905/28/2014
Underlying AssetSupersededAccounting Standards Update No. 2025-1112/08/2025
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
Variable Interest EntitySupersededAccounting Standards Update No. 2025-0305/12/2025
270-10-05-1AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-05-2AmendedAccounting Standards Update No. 2015-0101/09/2015
270-10-10-1AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-15-2AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-15-3AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-15-4AddedAccounting Standards Update No. 2025-1112/08/2025
270-10-45-1AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-45-3AmendedAccounting Standards Update No. 2014-0905/28/2014
270-10-45-6AmendedAccounting Standards Update No. 2015-1107/22/2015
270-10-45-8AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-45-8AmendedAccounting Standards Update No. 2020-1010/29/2020
270-10-45-11AAmendedAccounting Standards Update No. 2015-0101/09/2015
270-10-45-12AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-45-12AmendedAccounting Standards Update No. 2023-0610/09/2023
270-10-45-12AmendedMaintenance Update 2017-06 (PDF)04/07/2017
270-10-45-14AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-45-14AmendedMaintenance Update 2017-06 (PDF)04/07/2017
270-10-45-15AmendedMaintenance Update 2017-06 (PDF)04/07/2017
270-10-45-19AmendedAccounting Standards Update No. 2025-1112/08/2025
270-10-45-19AmendedAccounting Standards Update No. 2023-0610/09/2023
270-10-45-19AmendedAccounting Standards Update No. 2014-0905/28/2014
270-10-45-20 through 45-25
AddedAccounting Standards Update No. 2025-1112/08/2025
270-10-50-1 through 50-7
SupersededAccounting Standards Update No. 2025-1112/08/2025
270-10-50-1AmendedAccounting Standards Update No. 2023-0711/27/2023
270-10-50-1AmendedAccounting Standards Update No. 2023-0610/09/2023
270-10-50-1AmendedAccounting Standards Update No. 2022-0203/31/2022
270-10-50-1AmendedMaintenance Update 2017-06 (PDF)04/07/2017
270-10-50-1AmendedAccounting Standards Update No. 2016-1912/14/2016
270-10-50-1AmendedAccounting Standards Update No. 2016-1306/16/2016
270-10-50-1AmendedAccounting Standards Update No. 2016-0101/05/2016
270-10-50-1AmendedAccounting Standards Update No. 2015-0101/09/2015
270-10-50-1AmendedAccounting Standards Update No. 2014-0401/17/2014
270-10-50-1AmendedAccounting Standards Update No. 2013-0202/05/2013
270-10-50-1AmendedAccounting Standards Update No. 2011-1112/16/2011
270-10-50-1AmendedAccounting Standards Update No. 2011-0405/12/2011
270-10-50-1AmendedAccounting Standards Update No. 2010-2007/21/2010
270-10-50-1AAmendedAccounting Standards Update No. 2016-2012/21/2016
270-10-50-1AAddedAccounting Standards Update No. 2014-0905/28/2014
270-10-50-1BAddedAccounting Standards Update No. 2020-1010/29/2020
270-10-50-2AmendedMaintenance Update 2017-06 (PDF)04/07/2017
270-10-50-2AmendedAccounting Standards Update No. 2015-0101/09/2015
270-10-50-5AmendedAccounting Standards Update No. 2020-1010/29/2020
270-10-50-5AmendedAccounting Standards Update No. 2015-0101/09/2015
270-10-50-5AmendedAccounting Standards Update No. 2010-0701/28/2010
270-10-50-6AAddedAccounting Standards Update No. 2016-0202/25/2016
270-10-50-7AmendedAccounting Standards Update No. 2024-0311/04/2024
270-10-50-7AmendedAccounting Standards Update No. 2023-0812/13/2023
270-10-50-7AmendedAccounting Standards Update No. 2023-0203/29/2023
270-10-50-7AmendedAccounting Standards Update No. 2022-0409/29/2022
270-10-50-7AmendedAccounting Standards Update No. 2018-1208/15/2018
270-10-50-7AmendedAccounting Standards Update No. 2015-0905/21/2015
270-10-50-7AmendedAccounting Standards Update No. 2014-0804/10/2014
270-10-50-7AmendedAccounting Standards Update No. 2011-0405/12/2011
270-10-50-7AmendedAccounting Standards Update No. 2010-0701/28/2010
270-10-50-8 through 50-70
AddedAccounting Standards Update No. 2025-1112/08/2025
270-10-60-1SupersededAccounting Standards Update No. 2025-1112/08/2025
270-10-60-1AmendedAccounting Standards Update No. 2011-0405/12/2011
270-10-65-1AddedAccounting Standards Update No. 2025-1112/08/2025
Source downloaded (UTC): 2026-09-09T23:19:41.183Z to 2026-09-09T23:19:41.183Z Record version: sha256:6c507ab235691f48a80036c59d87e4891e9444df0a509c6464f76086d6f708b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/270/10/#05-overview-and-background) SEC content: no ##### [270-10-05-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-05-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:41.183Z to 2026-09-09T23:19:41.183Z Record version: sha256:39460aabe29ace4f8ed6a2820eeb6437175d973b0b1e1e793a2489c2d409f1d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Interim Reporting Topic 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](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.") issued for external reporting purposes. Interim financial information may include current data during a fiscal year on financial position, results of operations, comprehensive income, and cash flows. This information may be issued on a monthly or quarterly basis or at other intervals and may take the form of either complete financial statements or summarized financial data. Interim financial information often is provided for each interim period or on a cumulative year-to-date basis, or both, and for the corresponding periods of the preceding year. 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 Interim Reporting Topic addresses the form and content of disclosures and application of accounting principles required for interim financial statements and notes in accordance with generally accepted accounting principles (GAAP). ##### [270-10-05-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:41.183Z to 2026-09-09T23:19:41.183Z Record version: sha256:b3a4034146025008182953f7c28d3a2dac11eaa0231e1fcc3af4ba8ef2192c8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of the results of operations on a meaningful basis for intervals of less than a full year presents inherent difficulties. The revenues of some entities fluctuate widely among interim periods because of seasonal factors, while in other entities heavy fixed costs incurred in one interim period may benefit other periods. In these situations, financial information for periods of less than a full year may be of limited usefulness. In other situations costs and expenses related to a full year's activities are incurred at infrequent intervals during the year and need to be allocated to products in process or to other interim periods to avoid distortion of interim financial results. In view of the limited time available to develop complete information, many costs and expenses are estimated in interim periods. For example, it may not be practical to perform extensive reviews of individual inventory items, costs on individual long-term contracts and precise income tax calculations for each interim period. Subsequent refinement or correction of these estimates may distort the results of operations of later interim periods. Similarly, the effects of disposal of a segment of an entity and unusual or infrequently occurring events and transactions on the results of operations in an interim period will often be more pronounced than they will be on the results for the annual period. Special attention must be given to disclosure of the impact of these items on financial information for interim periods. Source downloaded (UTC): 2026-09-09T23:19:45.259Z to 2026-09-09T23:19:45.259Z Record version: sha256:355940068e02ec080510b4cdacd80ccae9833051b6ec1d9f9368a07468dede0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/270/10/#10-objectives) SEC content: no ##### [270-10-10-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-10-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:45.259Z to 2026-09-09T23:19:45.259Z Record version: sha256:6ccf5e54a7a67215cd9c86740e32d0234b2905cd4a5339b26c136fe704461bb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The principal objectives of the Interim Reporting Topic are to provide guidance on accounting and disclosure issues peculiar to interim reporting and to set forth minimum disclosure requirements for interim financial reports of [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."). 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 principal objectives of the Interim Reporting Topic are to provide guidance on accounting and disclosure issues specific to interim reporting and to set forth disclosure requirements for entities that provide interim financial statements and notes in accordance with generally accepted accounting principles. Source downloaded (UTC): 2026-09-09T23:19:48.916Z to 2026-09-09T23:19:48.916Z Record version: sha256:68db0650958783c29e82b3770cd22f5f2bd33a1d50f578ac5fcd7b63fc4562ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/270/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [270-10-15-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:48.916Z to 2026-09-09T23:19:48.916Z Record version: sha256:19cdc793e80e3d9291cd49a8a881e399c6a9abe1dbcd517a48c74d43466b6245 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for the Interim Reporting Topic. #### Entities ##### [270-10-15-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-15-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:48.916Z to 2026-09-09T23:19:48.916Z Record version: sha256:bbeafeb59e49511ce74f6dfbac0005a32da51c704751abe3f23999bda176e3b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Interim Reporting Topic applies to all entities. 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 guidance in the Interim Reporting Topic applies to all entities that provide interim financial statements and notes in accordance with generally accepted accounting principles (GAAP), regardless of whether those interim financial statements and notes in accordance with GAAP are prepared at the same level of aggregation as the annual financial statements and annual notes or as [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].)"). #### Other Considerations ##### [270-10-15-3](https://asc.understandingaccounting.org/asc/270/10/#270-10-15-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:48.916Z to 2026-09-09T23:19:48.916Z Record version: sha256:e53515189ca2d06002aadec846443690518781ad526225b874b5f73c3081afb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Interim Reporting Topic applies whenever entities issue interim financial information. It provides guidance on the applicability of generally accepted accounting principles (GAAP) to interim financial information and indicates types of disclosures necessary to report on a meaningful basis for a period of less than a full year. This Topic is not intended to deal with unresolved matters of accounting related to annual reporting. 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 guidance in the Interim Reporting Topic applies to interim financial statements and notes in accordance with GAAP. This Topic also provides disclosure requirements necessary to report on a meaningful basis for a period of less than a full year. This Topic is not intended to deal with annual reporting. ##### [270-10-15-4](https://asc.understandingaccounting.org/asc/270/10/#270-10-15-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:48.916Z to 2026-09-09T23:19:48.916Z Record version: sha256:ad030ffef64e1130593b43cae60bf74dcf4b98919068c79789e1286d006430f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 the purposes of applying the guidance in this Topic, financial statements and notes in accordance with GAAP include those financial statements that are a full set of financial statements in accordance with the guidance in paragraph [205-10-45-1A](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-1A). For example, if an entity issues only an income statement, that would not be considered a full set of financial statements and therefore would not be subject to the guidance in this Topic. For the purposes of applying this Topic, financial statements and notes in accordance with GAAP for not-for-profit entities are those that are equivalent to the statements listed in paragraph [205-10-45-1A](https://asc.understandingaccounting.org/asc/205/10/#205-10-45-1A), except for investments by and distributions to owners during the period. Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:187da872f70419ee56185aefc2b7a34c663bc3ab7b3c53f71779d43a7068b381 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/270/10/#45-other-presentation-matters) SEC content: no #### Accounting Principles and Practices ##### [270-10-45-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:fb0ae66e308fa291a98789a2a84dab3363f3deac1098837ed31d0ad583c0e8e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interim financial information is essential to provide investors and others with timely information as to the progress of the entity. The usefulness of such information rests on the relationship that it has to the annual results of operations. Accordingly, each interim period should be viewed primarily as an integral part of an annual period. 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 usefulness of interim financial statements and notes in accordance with generally accepted accounting principles (GAAP) rests on the relationship that they have to the annual results of operations. Each interim period should be viewed primarily as an integral part of an annual period. ##### [270-10-45-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:a9bc899963deee5bd6ee4557e0a4cd7b69140db009ae85042b150b7c84ce3e63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In general, the results for each interim period shall be based on the accounting principles and practices used by an entity in the preparation of its latest annual financial statements unless a change in an accounting practice or policy has been adopted in the current year (see paragraphs [270-10-45-12 through 45-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) ). However, certain accounting principles and practices followed for annual reporting purposes may require modification at interim reporting dates so that the reported results for the interim period may better relate to the results of operations for the annual period. Paragraphs [270-10-45-4 through 45-11](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-4) sets forth the modifications that are necessary or desirable at interim dates in accounting principles or practices followed for annual periods. #### Revenue ##### [270-10-45-3](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:98019fa74019f2f0594176d5ce6ba0e624a6a9f1c3c376b94b4e2d7097c09cd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from products sold or services rendered shall be recognized as the entity satisfies a [performance obligation](https://asc.understandingaccounting.org/glossary/p/#performance-obligation "A promise in a contract with a customer to transfer to the customer either: A good or service (or a bundle of goods or services) that is distinct A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.") by transferring a promised good or service to 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."). Those revenues shall be recognized during an interim period on the same basis as followed for the full year in accordance with Topic 606 on revenue from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with customers. For example, revenues from a long-term construction contract with a customer that includes performance obligations that the entity satisfies over time in accordance with paragraphs [606-10-25-27 through 25-29](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-27) shall be recognized in interim periods on the same basis followed for the full year. Losses projected on contracts within the scope of Subtopic 605-35, in accordance with paragraphs [605-35-25-45 through 25-49](https://asc.understandingaccounting.org/asc/605/35/#605-35-25-45) , shall be recognized in full during the interim period in which the existence of such losses becomes evident. #### Costs and Expenses ##### [270-10-45-4](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:8c406be039ebbe649a408a1c46b140e87ee11674641039abc361649b6fa813e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs and expenses for interim reporting purposes may be classified as either of the following: 1. a Costs associated with revenue - those costs that are associated directly with or allocated to the products sold or to the services rendered and that are charged against income in those interim periods in which the related revenue is recognized 2. b All other costs and expenses - those costs and expenses that are not allocated to the products sold or to the services rendered and that are charged against income in interim fiscal periods as incurred, or are allocated among interim periods based on an estimate of time expired, benefit received, or other activity associated with the periods. ##### [270-10-45-5](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:01731ba642d1db6fa9ce7f2be64cb641458f81e889ec48f6d8cf61953d8c5d99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those costs and expenses that are associated directly with or allocated to the products sold or to the services rendered for annual reporting purposes (including, for example, material costs, wages and salaries and related fringe benefits, manufacturing overhead, and warranties) shall be similarly treated for interim reporting purposes. ##### [270-10-45-6](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:0f76ce23cfd4611c684d3fba8e436c1f959d463455c969a596e181d08d88eaea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Practices vary in determining costs of inventory. For example, cost of goods produced may be determined based on standard or actual cost, while cost of inventory may be determined on an average, first-in, first-out (FIFO), or last-in, first-out (LIFO) cost basis. While entities generally shall use the same inventory pricing methods and make provisions for writedowns at interim dates on the same basis as used at annual inventory dates, the following exceptions are appropriate at interim reporting dates: 1. a Some entities use estimated gross profit rates to determine the cost of goods sold during interim periods or use other methods different from those used at annual inventory dates. These entities shall disclose the method used at the interim date and any significant adjustments that result from reconciliations with the annual physical inventory. 2. b Entities that use the LIFO method may encounter a liquidation of base period inventories at an interim date that is expected to be replaced by the end of the annual period. In those cases the inventory at the interim reporting date shall not give effect to the LIFO liquidation, and cost of sales for the interim reporting period shall include the expected cost of replacement of the liquidated LIFO base. 3. c Inventory losses from the application of the guidance on subsequent measurement in Subtopic 330-10shall not be deferred beyond the interim period in which the decline occurs. Recoveries of such losses on the same inventory in later interim periods of the same fiscal year through market value recoveries (for inventory measured using LIFO or the retail inventory method) or [net realizable value](https://asc.understandingaccounting.org/glossary/n/#net-realizable-value "Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.")recoveries (for all other inventory) shall be recognized as gains in the later interim period. Such gains shall not exceed previously recognized losses. Some declines in the market value (for inventory measured using LIFO or the retail inventory method) or net realizable value (for all other inventory) of inventory at interim dates, however, can reasonably be expected to be restored in the fiscal year. Such temporary declines need not be recognized at the interim date since no loss is expected to be incurred in the fiscal year. 4. d Entities that use standard cost accounting systems for determining inventory and product costs should generally follow the same procedures in reporting purchase price, wage rate, usage, or efficiency variances from standard cost at the end of an interim period as followed at the end of a fiscal year. Purchase price variances or volume or capacity cost variances that are planned and expected to be absorbed by the end of the annual period, should ordinarily be deferred at interim reporting dates. The effect of unplanned or unanticipated purchase price or volume variances, however, shall be reported at the end of an interim period following the same procedures used at the end of a fiscal year. ##### [270-10-45-7](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2927d186a0ef5db429b7f50da52fab0ebf25f8011db5ec953edca9363dcc1576 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Charges are made to income for all other costs and expenses in annual reporting periods based upon any of the following: 1. a Direct expenditures made in the period (salaries and wages) 2. b Accruals for estimated expenditures to be made at a later date (vacation pay) 3. c Amortization of expenditures that affect more than one annual period (such as insurance premiums, interest, and rents). ##### [270-10-45-8](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-8) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:60c4d5e38e3e24d00c51bd0f13330dd2e8fe0056db86490b1505a674e80d0f77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective in all cases is to achieve a fair measure of results of operations for the annual period and to present fairly the financial position at the end of the annual period. The following standards shall apply in accounting for costs and expenses other than product costs in interim periods: 1. a Costs and expenses other than product costs shall be charged to income in interim periods as incurred, or be allocated among interim periods based on an estimate of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period shall be consistent with the bases followed by the entity in reporting results of operations at annual reporting dates. However, if a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item may be allocated to those interim periods (see paragraph [270-10-45-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-9)). 2. b Some costs and expenses incurred in an interim period, however, cannot be readily identified with the activities or benefits of other interim periods and shall be charged to the interim period in which incurred. Disclosure in the notes to financial statements shall be made as to the nature and amount of such costs unless items of a comparable nature are included in both the current interim period and in the corresponding interim period of the preceding year. (See paragraph [270-10-50-1B](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1B).) 3. c Arbitrary assignment of the amount of such costs to an interim period shall not be made. 4. d Gains and losses that arise in any interim period similar to those that would not be deferred at year end shall not be deferred to later interim periods within the same fiscal year. 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 objective in all cases is to achieve a fair measure of results of operations for the annual period and to present fairly the financial position at the end of the annual period. The following standards shall apply in accounting for costs and expenses other than product costs in interim periods: 1. a Costs and expenses other than product costs shall be charged to income in interim periods as incurred, or be allocated among interim periods based on an estimate of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period shall be consistent with the bases followed by the entity in reporting results of operations at annual reporting dates. However, if a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item may be allocated to those interim periods (see paragraph [270-10-45-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-9)). 2. b [Subparagraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) 3. c Arbitrary assignment of the amount of such costs to an interim period shall not be made. 4. d Gains and losses that arise in any interim period similar to those that would not be deferred at year end shall not be deferred to later interim periods within the same fiscal year. ##### [270-10-45-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:8bfd99cea16d2cbe70f521d0cc958bf4ebb15f98b558670020756b83157db3e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A complete listing of examples of application of paragraphs [270-10-45-7 through 45-8](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-7) is not practical; however, the following examples of applications may be helpful: 1. a If a cost that is expensed for annual reporting purposes clearly benefits two or more interim periods, each interim period shall be charged for an appropriate portion of the annual cost by the use of accruals or deferrals. 2. b If quantity discounts are allowed to customers based upon annual sales volume, the amount of such discounts charged to each interim period shall be based on the sales to customers during the interim period in relation to estimated annual sales. 3. c Property taxes (and similar costs such as interest and rent) may be accrued or deferred at annual reporting date, to achieve a full year's charge of taxes to costs and expenses. Similar procedures shall be adopted at each interim reporting date to provide an appropriate cost in each period. 4. d Advertising costs may be deferred within a fiscal year if the benefits of an expenditure made clearly extend beyond the interim period in which the expenditure is made. Advertising costs may be accrued and assigned to interim periods in relation to sales prior to the time the service is received if the advertising program is clearly implicit in the sales arrangement. ##### [270-10-45-10](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:3c636b7bc8dcdcefbe973e1ef5f4f322c8fcedca22af2266d34530b151e8e2c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts of certain costs and expenses are frequently subjected to year-end adjustments even though they can be reasonably approximated at interim dates. To the extent possible such adjustments should be estimated and the estimated costs and expenses assigned to interim periods so that the interim periods bear a reasonable portion of the anticipated annual amount. Examples of such items include inventory shrinkage, allowance for uncollectible accounts, allowance for quantity discounts, and discretionary year-end bonuses. #### Seasonal Revenue, Costs, or Expenses ##### [270-10-45-11](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:63babad822cf27f3f06b6320bfcfdb578ffb66c86628d40338aad20404d686bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Revenues of certain entities are subject to material seasonal variations. To avoid the possibility that interim results with material seasonal variations may be taken as fairly indicative of the estimated results for a full fiscal year, such entities shall disclose the seasonal nature of their activities, and consider supplementing their interim reports with information for 12-month periods ended at the interim date for the current and preceding years. #### Unusual or Infrequent Items and Disposals of Components ##### [270-10-45-11A](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11A) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:869d03f0be0942d297924d5ff620da1ecdc2f42bc8613a80eb7d8208ef240f4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Effects of disposals of a component of an entity and unusual or infrequently occurring transactions and events that are material with respect to the operating results of the interim period shall be reported separately. Gains or losses from disposal of a component of an entity and unusual or infrequently occurring items shall not be prorated over the balance of the fiscal year. #### Accounting Changes in Interim Periods ##### [270-10-45-12](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2a0722beb7ae649b2006649dac64eca121597f7f0bda705cc649a85845c3732f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Each report of interim financial information shall indicate any [change in accounting principles](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle.") or practices from those applied in any of the following: 1. a The comparable interim period of the prior annual period 2. b The preceding interim periods in the current annual period 3. c The prior annual report. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)
Editor's Note: The pending content for paragraph 270-10-45-12 linked to paragraph 105-10-65-7 will be removed upon transition of paragraph 270-10-65-1.
Each report of interim financial information shall indicate any [change in accounting principles,](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle.") change in practices, or [change in the reporting entity](https://asc.understandingaccounting.org/glossary/c/#change-in-the-reporting-entity "A change that results in financial statements that, in effect, are those of a different reporting entity. A change in the reporting entity is limited mainly to the following: Presenting consolidated or combined financial statements in place of financial statements of individual entities Changing specific subsidiaries that make up the group of entities for which consolidated financial statements are presented Changing the entities included in combined financial statements. Neither a business combination accounted for by the acquisition method nor the consolidation of a variable interest entity (VIE) pursuant to Topic 810 is a change in reporting entity.") from those applied in any of the following: 1. a The comparable interim period of the prior annual period 2. b The preceding interim periods in the current annual period 3. c The prior annual report. 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)Interim financial statements and notes in accordance with GAAP shall indicate any [change in accounting principles](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle."), change in practices, or [change in the reporting entity](https://asc.understandingaccounting.org/glossary/c/#change-in-the-reporting-entity "A change that results in financial statements that, in effect, are those of a different reporting entity. A change in the reporting entity is limited mainly to the following: Presenting consolidated or combined financial statements in place of financial statements of individual entities Changing specific subsidiaries that make up the group of entities for which consolidated financial statements are presented Changing the entities included in combined financial statements. Neither a business combination accounted for by the acquisition method nor the consolidation of a variable interest entity (VIE) pursuant to Topic 810 is a change in reporting entity.")from those applied in any of the following: 1. a The comparable interim period of the prior annual period 2. b The preceding interim periods in the current annual period 3. c The prior annual financial statements. ##### [270-10-45-13](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:7014ad340bf0bae4f3b606b42c1056ee542a6274a98c04586ffb6089d8a19309 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in an interim or annual accounting practice or policy made in an interim period shall be reported in the period in which the change is made, in accordance with the provisions of Topic 250. ##### [270-10-45-14](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-14) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2dc1e0cbe03b6a88d1c47188670bfcdaf70d7256fd8bee847e467e9fb2cfa29f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of a [change in accounting estimate](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-estimate "A change that has the effect of adjusting the carrying amount of an existing asset or liability or altering the subsequent accounting for existing or future assets or liabilities. A change in accounting estimate is a necessary consequence of the assessment, in conjunction with the periodic presentation of financial statements, of the present status and expected future benefits and obligations associated with assets and liabilities. Changes in accounting estimates result from new information. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and salvage values of depreciable assets, and warranty obligations."), including a change in the estimated effective annual tax rate, shall be accounted for in the period in which the change in estimate is made. No [restatement](https://asc.understandingaccounting.org/glossary/r/#restatement "The process of revising previously issued financial statements to reflect the correction of an error in those financial statements.") of previously reported interim information shall be made for changes in estimates, but the effect on earnings of a change in estimate made in a current interim period shall be reported in the current and subsequent interim periods, if material in relation to any period presented and shall continue to be reported in the interim financial information of the subsequent year for as many periods as necessary to avoid misleading comparisons. Such disclosure shall conform with paragraph [250-10-50-4](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-4). 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 effect of a [change in accounting estimate](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-estimate "A change that has the effect of adjusting the carrying amount of an existing asset or liability or altering the subsequent accounting for existing or future assets or liabilities. A change in accounting estimate is a necessary consequence of the assessment, in conjunction with the periodic presentation of financial statements, of the present status and expected future benefits and obligations associated with assets and liabilities. Changes in accounting estimates result from new information. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and salvage values of depreciable assets, and warranty obligations."), including a change in the estimated effective annual tax rate, shall be accounted for in the period in which the change in estimate is made. No [restatement](https://asc.understandingaccounting.org/glossary/r/#restatement "The process of revising previously issued financial statements to reflect the correction of an error in those financial statements.") of previously issued interim financial statements and notes in accordance with GAAP shall be made for changes in estimates, but the effect on earnings of a change in estimate made in a current interim period shall be reported in the current and subsequent interim periods, if material in relation to any period presented and shall continue to be reported in the interim financial statements and notes in accordance with GAAP of the subsequent year for as many periods as necessary to avoid misleading comparisons. Such disclosure shall conform with paragraph [250-10-50-4](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-4). ##### [270-10-45-15](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:8e509803bca4b28c5be08ba2f5a990d74fd824b086eb57d13a36d59bd67db1af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whenever possible, entities should adopt any [accounting changes](https://asc.understandingaccounting.org/glossary/a/#accounting-change "A change in an accounting principle, an accounting estimate, or the reporting entity. The correction of an error in previously issued financial statements is not an accounting change.") during the first interim period of a fiscal year. Changes in accounting principles and practices adopted after the first interim period in a fiscal year tend to obscure operating results and complicate disclosure of interim financial information. ##### [270-10-45-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:addc79849ce45857822d5eea62bd98f150a1d9c0360aab1f33a0fcff2320c0fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [250-10-45-27](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-27), in determining materiality for the purpose of reporting the correction of an error, amounts shall be related to the estimated income for the full fiscal year and also to the effect on the trend of earnings. Changes that are material with respect to an interim period but not material with respect to the estimated income for the full fiscal year or to the trend of earnings shall be separately disclosed in the interim period. #### Adjustments Related to Prior Interim Periods of the Current Fiscal Year ##### [270-10-45-17](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:712842a18c1c30fd6fd4a78afda0961d4e589d2c5a6932b04d503dd5a829744d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [250-10-45-25](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-25), an adjustment related to prior interim periods of the current fiscal year is an adjustment or settlement of litigation or similar claims, of income taxes (except for the effects of retroactive tax legislation), of renegotiation proceedings, or of utility revenue under rate-making processes provided that the adjustment or settlement meets all of the following criteria: 1. a The effect of the adjustment or settlement is material in relation to income from continuing operations of the current fiscal year or in relation to the trend of income from continuing operations or is material by other appropriate criteria. 2. b All or part of the adjustment or settlement can be specifically identified with and is directly related to business activities of specific prior interim periods of the current fiscal year. 3. c The amount of the adjustment or settlement could not be reasonably estimated prior to the current interim period but becomes reasonably estimable in the current interim period. Criterion (b) above is not met solely because of incidental effects such as interest on a settlement. Criterion (c) would be met by the occurrence of an event with currently measurable effects such as a final decision on a rate order. Treatment as adjustments related to prior interim periods of the current fiscal year shall not be applied to the normal recurring corrections and adjustments that are the result of the use of estimates inherent in the accounting process. Changes in provisions for doubtful accounts shall not be considered to be adjustments related to prior interim periods of the current fiscal year even though the changes result from litigation or similar claims. ##### [270-10-45-18](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:5e0fea87727a235fc4ea2f41a7b7ac4e7859a06e29643ee19a2ac11e1e186e84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [250-10-45-26](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-26), if an item of profit or loss occurs in other than the first interim period of the entity's fiscal year and all or a part of the item of profit or loss is an adjustment related to prior interim periods of the current fiscal year, as defined in the preceding paragraph, the item shall be reported as follows: 1. a The portion of the item that is directly related to business activities of the entity during the current interim period, if any, shall be included in the determination of net income for that period. 2. b Prior interim periods of the current fiscal year shall be restated to include the portion of the item that is directly related to business activities of the entity during each prior interim period in the determination of net income for that period. 3. c The portion of the item that is directly related to business activities of the entity during prior fiscal years, if any, shall be included in the determination of net income of the first interim period of the current fiscal year. #### Guidance Related to Presentation of Other Topics at Interim Dates ##### [270-10-45-19](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-19) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:b4aeee622dccbc4fd190380c3cd25e4311738adafe411819a2bf83ebd006f68f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following may not represent all references to interim reporting: 1. a For accounting changes, see paragraphs [250-10-45-14 through 45-16](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-14) . 2. b For comprehensive income, see paragraph [220-10-45-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18). 3. c For incurred but not reported liability and interim reporting, see paragraphs [720-20-35-3 through 35-5](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-3) and [720-20-35-8](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-8). 4. d For income tax provisions, see Subtopic 740-270. 5. e For inventory, see paragraphs [330-10-55-2](https://asc.understandingaccounting.org/asc/330/10/#330-10-55-2) and [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3). 6. f For pensions and other postretirement benefits, see paragraphs [715-20-55-18 through 55-19](https://asc.understandingaccounting.org/asc/715/20/#715-20-55-18) and [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40). Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)
Editor's Note: The pending content for paragraph 270-10-45-19 linked to paragraph 105-10-65-7 will be removed upon transition of paragraph 270-10-65-1.
The following may not represent all references to interim reporting: 1. a For accounting changes, see paragraphs [250-10-45-14 through 45-16](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-14) and [250-10-45-21](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-21). 2. b For comprehensive income, see paragraph [220-10-45-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18). 3. c For incurred but not reported liability and interim reporting, see paragraphs [720-20-35-3 through 35-5](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-3) and [720-20-35-8](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-8). 4. d For income tax provisions, see Subtopic 740-270. 5. e For inventory, see paragraphs [330-10-55-2](https://asc.understandingaccounting.org/asc/330/10/#330-10-55-2) and [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3). 6. f For pensions and other postretirement benefits, see paragraphs [715-20-55-18 through 55-19](https://asc.understandingaccounting.org/asc/715/20/#715-20-55-18) and [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40). 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 following may not represent all references to interim reporting: 1. a For accounting changes, see paragraphs [250-10-45-14 through 45-16](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-14) and [250-10-45-21](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-21). 2. b For comprehensive income, see paragraph [220-10-45-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18). 3. c For incurred but not reported liability and interim reporting, see paragraphs [720-20-35-3 through 35-5](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-3) and [720-20-35-8](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-8). 4. d For income tax provisions, see Subtopic 740-270. 5. e For inventory, see paragraphs [330-10-55-2](https://asc.understandingaccounting.org/asc/330/10/#330-10-55-2) and [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3). 6. f For pensions and other postretirement benefits, see paragraphs [715-20-55-18 through 55-19](https://asc.understandingaccounting.org/asc/715/20/#715-20-55-18) and [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40). 7. g For evaluation of a going concern, see paragraphs [205-40-50-1 through 50-11](https://asc.understandingaccounting.org/asc/205/40/#205-40-50-1) . #### Form and Content of Interim Financial Statements and Notes ##### [270-10-45-20](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-20) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:0af8146b71d5f03920c6719b361cead038c99d71e1cdf03c5de506aa582b1d8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)When preparing interim financial statements and notes in accordance with GAAP (including condensed statements), a [Securities and Exchange Commission registrant](https://asc.understandingaccounting.org/glossary/s/#securities-and-exchange-commission-registrant "An entity (or an entity that is controlled by an entity) that meets any of the following criteria: It has issued or will issue debt or equity 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 is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") (SEC registrant) shall refer to the applicable form and content of interim financial statements for SEC registrants. For example, see Regulation S-X Rule 10-01 (17 CFR 210.10-01) and Regulation S-X Rule 8-03 (17 CFR 210.8-03) (paragraph [270-10-S45-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S45-2)). ##### [270-10-45-21](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-21) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2523ff52ef8a7466066e69a8706071157dc69836aabaa79509a32191c289fa48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)An entity that is not an SEC registrant may issue interim financial statements and notes in accordance with GAAP. When those financial statements are issued, the entity may present either of the following: 1. a Financial statements presented using the same level of aggregation as the annual financial statements and notes subject to applicable annual disclosure requirements in GAAP 2. b Financial statements that are presented at a level more aggregated than the annual financial statements or that have limited notes subject to the disclosure requirements in this Topic or both ([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].)")). ##### [270-10-45-22](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-22) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:0a846b2255f2ce1c79820290ab193f42455be712b035aeee9460f1cce8a27766 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 that is not an SEC registrant chooses to present condensed statements in accordance with paragraph [270-10-45-21(b)](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-21), the entity shall follow the following form and content guidance: 1. a For the statement of financial position at the end of the reporting period, an entity shall include separate captions for each balance sheet component presented in the annual financial statements that is 10 percent or more of total assets. An entity also shall separately present cash and retained earnings regardless of the relative significance to total assets. An entity that presents a classified statement of financial position at the end of the annual reporting period shall present totals for current assets and current liabilities. 2. b For the statement of earnings for the reporting period, an entity shall include net sales or gross revenue and present each cost and expense category presented in the annual financial statements that exceeds 20 percent of sales or gross revenues (financial institutions shall substitute net interest income for sales). An entity also shall present the provision for income taxes and discontinued operations. 3. c For the statement of cash flows for the reporting period, an entity shall present totals for each category of cash flow activities (operating, investing, and financing) as well as cash at the beginning and end of each period and the increase or decrease in such balance. 4. d For investments by and distributions to owners for the reporting period, an entity shall present (in a note or a separate statement) an analysis of the changes in each caption presented in the statement of financial position. The analysis of changes shall be presented in the form of a reconciliation of the beginning balance to the ending balance for the reporting period. An entity also shall separately present investments by and distributions to owners. However, if an entity that is not an SEC registrant is required by the SEC to follow certain form and content requirements under SEC rules and regulations, the entity shall follow the requirements specified by the SEC. ##### [270-10-45-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-23) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:cb2259b823abfacb1602b6fc121dc46d80c271dfd0cbd4c2a13ead37912ca24a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)An entity that is not an SEC registrant that chooses to apply the guidance in Regulation S-X Rule 10-01(a) (17 CFR 210.10-01(a)) or Regulation S-X Rule 8-03(a) (17 CFR 210.8-03(a)) is considered to be in compliance with the content requirements for condensed statements in paragraph [270-10-45-22](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-22). ##### [270-10-45-24](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-24) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:311ca042b77c4b1ad433e9d848eb062b320b7197989f9021ee268ea425ba7286 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)Condensed statements can be provided only if the previous annual financial statements have been issued (or the financial statements have been made available for issuance). ##### [270-10-45-25](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-25) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:359983afbfbb4706d0f125a53866b5ac21540f6a279246422281d4b9f74cae5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 a not-for-profit entity presents condensed statements, the following requirements shall apply: 1. a Net assets with donor restrictions and net assets without donor restrictions shall be presented regardless of relative significance to total net assets in the statement of financial position. 2. b The required disclosure of expenses by nature and function may be condensed in accordance with the guidance in paragraphs [270-10-45-22 through 45-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-22) , whether presented on the face of the statement of activities, as a separate schedule in the notes to financial statements, or in a separate financial statement. 3. c The requirement to provide a separate statement of changes in investments by and distributions to owners or disclosures explaining that such changes are not applicable. Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:bb36467b281ed4cc410acdd80ed2666a448ea47ab7a7eb56db7e07e67faba470 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/270/10/#50-disclosure) SEC content: no #### Disclosure of Summarized Interim Financial Data by Publicly Traded Companies ##### [270-10-50-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:cadb0f354b79c1cc47ab338eb324be52fbf128a7ad0a8abc44ac9c268688d436 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Many [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.") report summarized financial information at periodic interim dates in considerably less detail than that provided in annual financial statements. While this information provides more timely information than would result if complete financial statements were issued at the end of each interim period, the timeliness of presentation may be partially offset by a reduction in detail in the information provided. As a result, certain guides as to minimum disclosure are desirable. (It should be recognized that the minimum disclosures of summarized interim financial data required of publicly traded companies do not constitute a fair presentation of financial position and results of operations in conformity with generally accepted accounting principles \[GAAP\].) If publicly traded companies report summarized financial information at interim dates (including reports on fourth quarters), the following data should be reported, as a minimum: 1. a Sales or gross revenues, provision for income taxes, net income, and comprehensive income 2. b Basic and diluted earnings per share data for each period presented, determined in accordance with the provisions of Topic 260 3. c Seasonal revenue, costs, or expenses (see paragraph [270-10-45-11](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11)) 4. d Significant changes in estimates or provisions for income taxes (see paragraphs [740-270-30-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-2), [740-270-30-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6), and [740-270-30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-8)) 5. e Disposal of a component of an entity and unusual or infrequently occurring items (see paragraphs [270-10-45-11A](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11A) and [270-10-50-5](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-5)) 6. f Contingent items (see paragraph [270-10-50-6](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-6)) 7. g [Changes in accounting principles](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle.") or [changes in accounting estimates](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-estimate "A change that has the effect of adjusting the carrying amount of an existing asset or liability or altering the subsequent accounting for existing or future assets or liabilities. A change in accounting estimate is a necessary consequence of the assessment, in conjunction with the periodic presentation of financial statements, of the present status and expected future benefits and obligations associated with assets and liabilities. Changes in accounting estimates result from new information. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and salvage values of depreciable assets, and warranty obligations.") (see paragraphs [270-10-45-12 through 45-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) ) 8. h Significant changes in financial position (see paragraph [270-10-50-4](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-4)) 9. i All of the information about reportable segments required by paragraph [280-10-50-32](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-32), including provisions related to the recasting of segment information in previously issued financial statements. 1. 1 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 2. 2 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 3. 3 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 4. 4 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 5. 5 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 6. 6 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 10. j All of the following information about defined benefit pension plans and other defined benefit postretirement benefit plans, disclosed for all periods presented pursuant to the provisions of Subtopic 715-20: 1. 1 The amount of net periodic benefit cost recognized, for each period for which a statement of income is presented, showing separately the service cost component, the interest cost component, the expected return on plan assets for the period, the gain or loss component, the prior service cost or credit component, the transition asset or obligation component, and the gain or loss recognized due to a settlement or curtailment 2. 2 The total amount of the employer's contributions paid, and expected to be paid, during the current fiscal year, if significantly different from amounts previously disclosed pursuant to paragraph [715-20-50-1](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1). Estimated contributions may be presented in the aggregate combining all of the following: 1. i Contributions required by funding regulations or laws 2. ii Discretionary contributions 3. iii Noncash contributions. 11. k The information about the use of fair value to measure assets and liabilities recognized in the statement of financial position pursuant to Section 820-10-50 12. l The information about derivative instruments as required by Sections 815-10-50, 815-20-50, 815-25-50, 815-30-50, and 815-35-50 13. m The information about financial instruments as required by Section 825-10-50 14. n The information about certain investments in debt and equity securities as required by Sections 320-10-50, 321-10-50, and 942-320-50 15. o The information about credit losses and impairments as required by Topic 326 on measurement of credit losses and impairments as required by Section 321-10-50 16. p All of the following information about the credit quality of [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") and the allowance for credit losses determined in accordance with the provisions of Subtopic 326-20 on financial instruments measured at amortized cost: 1. 1 Nonaccrual and past due financial assets (see paragraphs [326-20-50-14 through 50-18](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-14) ) 2. 2 Allowance for expected credit losses related to financial assets (see paragraphs [326-20-50-10 through 50-13](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-10) ) 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 4. 4 Credit-quality information related to instruments within the scope of Subtopic 326-20 (see paragraphs [326-20-50-4 through 50-9](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-4) ) 5. 5 Modifications of financing receivables (see paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) ). 17. q The gross information and net information required by paragraphs [210-20-50-1 through 50-6](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) . 18. r The information about changes in accumulated other comprehensive income required by paragraphs [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A) and [220-10-45-17 through 45-17B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17). 19. s The carrying amount of foreclosed residential real estate property as required by the last sentence of paragraph [310-10-50-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11) and the amount of loans in the process of foreclosure as required by paragraph [310-10-50-35](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-35). If summarized financial data are regularly reported on a quarterly basis, the foregoing information with respect to the current quarter and the current year-to-date or the last 12 months to date should be furnished together with comparable data for the preceding year. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)
Editor's Note: The pending content for paragraph 270-10-50-1 linked to paragraph 105-10-65-7 will be removed upon transition of paragraph 270-10-65-1.
Many [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.") report summarized financial information at periodic interim dates in considerably less detail than that provided in annual financial statements. While this information provides more timely information than would result if complete financial statements were issued at the end of each interim period, the timeliness of presentation may be partially offset by a reduction in detail in the information provided. As a result, certain guides as to minimum disclosure are desirable. (It should be recognized that the minimum disclosures of summarized interim financial data required of publicly traded companies do not constitute a fair presentation of financial position and results of operations in conformity with generally accepted accounting principles \[GAAP\].) If publicly traded companies report summarized financial information at interim dates (including reports on fourth quarters), the following data should be reported, as a minimum: 1. a Sales or gross revenues, provision for income taxes, net income, and comprehensive income 2. b Basic and diluted earnings per share data for each period presented, determined in accordance with the provisions of Topic 260 3. c Seasonal revenue, costs, or expenses (see paragraph [270-10-45-11](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11)) 4. d Significant changes in estimates or provisions for income taxes (see paragraphs [740-270-30-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-2), [740-270-30-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6), and [740-270-30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-8)) 5. e Disposal of a component of an entity and unusual or infrequently occurring items (see paragraphs [270-10-45-11A](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11A) and [270-10-50-5](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-5)) 6. f Contingent items (see paragraph [270-10-50-6](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-6)) 7. g [Changes in accounting principles,](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle.")[changes in accounting estimates,](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-estimate "A change that has the effect of adjusting the carrying amount of an existing asset or liability or altering the subsequent accounting for existing or future assets or liabilities. A change in accounting estimate is a necessary consequence of the assessment, in conjunction with the periodic presentation of financial statements, of the present status and expected future benefits and obligations associated with assets and liabilities. Changes in accounting estimates result from new information. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and salvage values of depreciable assets, and warranty obligations.") or [changes in the reporting entity](https://asc.understandingaccounting.org/glossary/c/#change-in-the-reporting-entity "A change that results in financial statements that, in effect, are those of a different reporting entity. A change in the reporting entity is limited mainly to the following: Presenting consolidated or combined financial statements in place of financial statements of individual entities Changing specific subsidiaries that make up the group of entities for which consolidated financial statements are presented Changing the entities included in combined financial statements. Neither a business combination accounted for by the acquisition method nor the consolidation of a variable interest entity (VIE) pursuant to Topic 810 is a change in reporting entity.") (see paragraphs [270-10-45-12 through 45-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) ) 8. h Significant changes in financial position (see paragraph [270-10-50-4](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-4)) 9. i All of the information about reportable segments required by paragraph [280-10-50-32](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-32), including provisions related to the recasting of segment information in previously issued financial statements. 1. 1 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 2. 2 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 3. 3 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 4. 4 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 5. 5 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 6. 6 Subparagraph superseded by [Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 10. j All of the following information about defined benefit pension plans and other defined benefit postretirement benefit plans, disclosed for all periods presented pursuant to the provisions of Subtopic 715-20: 1. 1 The amount of net periodic benefit cost recognized, for each period for which a statement of income is presented, showing separately the service cost component, the interest cost component, the expected return on plan assets for the period, the gain or loss component, the prior service cost or credit component, the transition asset or obligation component, and the gain or loss recognized due to a settlement or curtailment 2. 2 The total amount of the employer's contributions paid, and expected to be paid, during the current fiscal year, if significantly different from amounts previously disclosed pursuant to paragraph [715-20-50-1](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1). Estimated contributions may be presented in the aggregate combining all of the following: 1. i Contributions required by funding regulations or laws 2. ii Discretionary contributions 3. iii Noncash contributions. 11. k The information about the use of fair value to measure assets and liabilities recognized in the statement of financial position pursuant to Section 820-10-50 12. l The information about derivative instruments as required by Sections 815-10-50, 815-20-50, 815-25-50, 815-30-50, and 815-35-50 13. m The information about financial instruments as required by Section 825-10-50 14. n The information about certain investments in debt and equity securities as required by Sections 320-10-50, 321-10-50, and 942-320-50 15. o The information about credit losses and impairments as required by Topic 326 on measurement of credit losses and impairments as required by Section 321-10-50 16. p All of the following information about the credit quality of [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") and the allowance for credit losses determined in accordance with the provisions of Subtopic 326-20 on financial instruments measured at amortized cost: 1. 1 Nonaccrual and past due financial assets (see paragraphs [326-20-50-14 through 50-18](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-14) ) 2. 2 Allowance for expected credit losses related to financial assets (see paragraphs [326-20-50-10 through 50-13](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-10) ) 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 4. 4 Credit-quality information related to instruments within the scope of Subtopic 326-20 (see paragraphs [326-20-50-4 through 50-9](https://asc.understandingaccounting.org/asc/326/20/#326-20-50-4) ) 5. 5 Modifications of financing receivables (see paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) ). 17. q The gross information and net information required by paragraphs [210-20-50-1 through 50-6](https://asc.understandingaccounting.org/asc/210/20/#210-20-50-1) . 18. r The information about changes in accumulated other comprehensive income required by paragraphs [220-10-45-14A](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-14A) and [220-10-45-17 through 45-17B](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-17). 19. s The carrying amount of foreclosed residential real estate property as required by the last sentence of paragraph [310-10-50-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11) and the amount of loans in the process of foreclosure as required by paragraph [310-10-50-35](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-35). If summarized financial data are regularly reported on a quarterly basis, the foregoing information with respect to the current quarter and the current year-to-date or the last 12 months to date should be furnished together with comparable data for the preceding year. 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)
Editor's Note: Paragraph 270-10-50-1 will be superseded upon transition, together with its heading:
> Disclosure of Summarized Interim Financial Data by Publicly Traded Companies
[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) ##### [270-10-50-1A](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:ff0f4a31b7f21864d45fc1811b0fb30dd562c6786b743ce63968baf5ed8b3b82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Consistent with paragraph [270-10-50-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1), a [public business entity](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."), 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.") that 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, or an employee benefit plan that files or furnishes financial statements with or to the Securities and Exchange Commission, shall disclose all of the following information about [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](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.") consistent with the guidance in Topic 606: 1. a A disaggregation of revenue for the period, see paragraphs [606-10-50-5 through 50-6](https://asc.understandingaccounting.org/asc/606/10/#606-10-50-5) and paragraphs [606-10-55-89 through 55-91](https://asc.understandingaccounting.org/asc/606/10/#606-10-55-89) . 2. b The opening and closing balances of receivables, [contract assets](https://asc.understandingaccounting.org/glossary/c/#contract-asset "An entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity's future performance)."), and [contract liabilities](https://asc.understandingaccounting.org/glossary/c/#contract-liability "An entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.") from contracts with customers (if not otherwise separately presented or disclosed), see paragraph [606-10-50-8(a)](https://asc.understandingaccounting.org/asc/606/10/#606-10-50-8). 3. c Revenue recognized in the reporting period that was included in the contract liability balance at the beginning of the period, see paragraph [606-10-50-8(b)](https://asc.understandingaccounting.org/asc/606/10/#606-10-50-8). 4. d Revenue recognized in the reporting period from [performance obligations](https://asc.understandingaccounting.org/glossary/p/#performance-obligation "A promise in a contract with a customer to transfer to the customer either: A good or service (or a bundle of goods or services) that is distinct A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.") satisfied (or partially satisfied) in previous periods (for example, changes in **[transaction price](https://asc.understandingaccounting.org/glossary/t/#transaction-price "The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.")**), see paragraph [606-10-50-12A](https://asc.understandingaccounting.org/asc/606/10/#606-10-50-12A). 5. e Information about the entity's remaining performance obligations as of the end of the reporting period, see paragraphs [606-10-50-13 through 50-15](https://asc.understandingaccounting.org/asc/606/10/#606-10-50-13) . 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/) ##### [270-10-50-1B](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1B) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:5880ed9d2ff4346ce202d4b469c9c894447fa22432266e48488ffbec4d9bffa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs and expenses incurred in an interim period that cannot be readily identified with the activities or benefits of other interim periods shall be charged to the interim period in which incurred. Disclosure in the notes to financial statements shall be made as to the nature and amount of such costs unless items of a comparable nature are included in both the current interim period and in the corresponding interim period of the preceding year. (See paragraph [270-10-45-8(b)](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-8).) 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/) ##### [270-10-50-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:ca2a3d43158b2ff78c853b03310614d9489f67778115f6c2ad315d853c8771fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If interim financial data and disclosures are not separately reported for the fourth quarter, users of the interim financial information often make inferences about that quarter by subtracting data based on the third quarter interim report from the annual results. In the absence of a separate fourth quarter report or disclosure of the results (as outlined in the preceding paragraph) for that quarter in the annual report, disposals of components of an entity and unusual or infrequently occurring items recognized in the fourth quarter, as well as the aggregate effect of year-end adjustments that are material to the results of that quarter (see paragraphs [270-10-05-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-05-2) and [270-10-45-10](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-10)) shall be disclosed in the annual report in a note to the annual financial statements. If a [publicly traded company](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.") that regularly reports interim information makes an [accounting change](https://asc.understandingaccounting.org/glossary/a/#accounting-change "A change in an accounting principle, an accounting estimate, or the reporting entity. The correction of an error in previously issued financial statements is not an accounting change.") during the fourth quarter of its fiscal year and does not report the data specified by the preceding paragraph in a separate fourth quarter report or in its annual report, the disclosures about the effect of the accounting change on interim periods that are required by paragraphs [270-10-45-12 through 45-14](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) or by paragraph [250-10-45-15](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-15), as appropriate, shall be made in a note to the annual financial statements for the fiscal year in which the change is made. 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/) ##### [270-10-50-3](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:38d092366752983e08f9c74fcbd288b1bbe91b8ac70f43c89a386168fab5d550 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of the impact of the financial results for interim periods of the matters discussed in paragraphs [270-10-45-12 through 45-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) and [270-10-50-5 through 50-6](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-5) is desirable for as many subsequent periods as necessary to keep the reader fully informed. There is a presumption that users of summarized interim financial data will have read the latest published annual report, including the financial disclosures required by generally accepted accounting principles (GAAP) and management's commentary concerning the annual financial results, and that the summarized interim data will be viewed in that context. In this connection, management is encouraged to provide commentary relating to the effects of significant events upon the interim financial results. 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/) ##### [270-10-50-4](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:1f5ed05cd9202cc8601afb11853e6f0b331903ac5bfbcd820f21570a7fa3cb93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Publicly traded companies are encouraged to publish balance sheet and cash flow data at interim dates since these data often assist users of the interim financial information in their understanding and interpretation of the income data reported. If condensed interim balance sheet information or cash flow data are not presented at interim reporting dates, significant changes since the last reporting period with respect to liquid assets, net working capital, long-term liabilities, or stockholders' equity shall be disclosed. 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/) #### Unusual or Infrequent Items ##### [270-10-50-5](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:4cb01c39f21999f1979be5de6d2d842a0f408f6adcb161600076f91d0a8a3b0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Matters such as unusual seasonal results, business combinations, and [acquisitions by not-for-profit entities](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.") shall be disclosed to provide information needed for a proper understanding of interim financial reports. 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)
Editor's Note: Paragraph 270-10-50-5 will be superseded upon transition, together with its heading.
> Unusual or Infrequent Items
[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) #### Contingencies ##### [270-10-50-6](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:1b31277254955ba41ddc5a64263f07c7a19b9195c47899fcab475210623e2ee8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contingencies and other uncertainties that could be expected to affect the fairness of presentation of financial data at an interim date shall be disclosed in interim reports in the same manner required for annual reports. Such disclosures shall be repeated in interim and annual reports until the contingencies have been removed, resolved, or have become immaterial. The significance of a contingency or uncertainty should be judged in relation to annual financial statements. Disclosures of such items shall include, but not be limited to, those matters that form the basis of a qualification of an independent auditor's report. 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)
Editor's Note: Paragraph 270-10-50-6 will be superseded upon transition, together with its heading.
> Contingencies
[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) #### Leases ##### [270-10-50-6A](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-6A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:8d8ff901f3b3c867a2cda5735608bd6ab0fc1c786f7212d2f78315607861dae3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [lessor](https://asc.understandingaccounting.org/glossary/l/#lessor "An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.") shall disclose a table of all lease-related income items in its interim financial statements (see paragraph [842-30-50-5](https://asc.understandingaccounting.org/asc/842/30/#842-30-50-5) for lease-related income items). 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)
Editor's Note: Paragraph 270-10-50-6A will be superseded upon transition, together with its heading.
> Leases
[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) #### Guidance Related to Disclosure of Other Topics at Interim Dates ##### [270-10-50-7](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-7) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:0e1632f4e4f60a736601f8be69fc02c3ef6263f9f498669e91bc21a19bea243f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following may not represent all references to interim disclosure: 1. a For business combinations and combinations accounted for by [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."), see Sections 805-10-50, 805-20-50, 805-30-50, 805-740-50, and 958-805-50. 2. b For compensation-related costs, see paragraphs [715-60-50-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-50-3) and [715-60-50-6](https://asc.understandingaccounting.org/asc/715/60/#715-60-50-6). 3. c For disclosures required for entities with oil- and gas-producing activities, see paragraph [932-270-50-1](https://asc.understandingaccounting.org/asc/270/932/#270-932-50-1). 4. d For disclosures related to prior interim periods of the current fiscal year, see paragraph [250-10-50-11](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-11). 5. e For fair value requirements, see Section 820-10-50. 6. f For guarantors, see Section 460-10-50. 7. g For pensions and other postretirement benefits, see paragraphs [715-20-50-6 through 50-7](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-6) . 8. h For reportable segments, see paragraphs [280-10-50-39](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-39) and [280-10-55-16](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-16). 9. i For suspended well costs and interim reporting, see Section 932-235-50. 10. j For applicability of disclosure requirements related to risks and uncertainties, see paragraph [275-10-15-3](https://asc.understandingaccounting.org/asc/275/10/#275-10-15-3). 11. k For discontinued operations, see paragraphs [205-20-50-1 through 50-7](https://asc.understandingaccounting.org/asc/205/20/#205-20-50-1) . 12. l For disposals of individually significant components of an entity, see paragraph [360-10-50-3A](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3A). 13. ll For disclosure requirements on the amount of obligations outstanding under a supplier finance program, see paragraph [405-50-50-4](https://asc.understandingaccounting.org/asc/405/50/#405-50-50-4). 14. m For insurance entities that account for short-duration contracts, see paragraphs [944-40-50-3](https://asc.understandingaccounting.org/asc/944/40/#944-40-50-3) and [944-40-50-4E](https://asc.understandingaccounting.org/asc/944/40/#944-40-50-4E). 15. n For insurance entities that account for long-duration contracts, see paragraphs [944-30-50-2A through 50-2B](https://asc.understandingaccounting.org/asc/944/30/#944-30-50-2A) , [944-40-50-6 through 50-7C](https://asc.understandingaccounting.org/asc/944/40/#944-40-50-6), and [944-80-50-1 through 50-2](https://asc.understandingaccounting.org/asc/944/80/#944-80-50-1) . 16. o For disclosure requirements on investments that generate income tax credits and other income tax benefits from a tax credit program, see paragraphs [323-740-50-1 through 50-2](https://asc.understandingaccounting.org/asc/323/740/#323-740-50-1) . 17. p For disclosure requirements for crypto assets, see paragraphs [350-60-50-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-1) and [350-60-50-6 through 50-7](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-6) . 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 may not represent all references to interim disclosure: 1. a For business combinations and combinations accounted for by [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."), see Sections 805-10-50, 805-20-50, 805-30-50, 805-740-50, and 958-805-50. 2. b For compensation-related costs, see paragraphs [715-60-50-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-50-3) and [715-60-50-6](https://asc.understandingaccounting.org/asc/715/60/#715-60-50-6). 3. c For disclosures required for entities with oil- and gas-producing activities, see paragraph [932-270-50-1](https://asc.understandingaccounting.org/asc/270/932/#270-932-50-1). 4. d For disclosures related to prior interim periods of the current fiscal year, see paragraph [250-10-50-11](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-11). 5. e For fair value requirements, see Section 820-10-50. 6. f For guarantors, see Section 460-10-50. 7. g For pensions and other postretirement benefits, see paragraphs [715-20-50-6 through 50-7](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-6) . 8. h For reportable segments, see paragraphs [280-10-50-39](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-39) and [280-10-55-16](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-16). 9. i For suspended well costs and interim reporting, see Section 932-235-50. 10. j For applicability of disclosure requirements related to risks and uncertainties, see paragraph [275-10-15-3](https://asc.understandingaccounting.org/asc/275/10/#275-10-15-3). 11. k For discontinued operations, see paragraphs [205-20-50-1 through 50-7](https://asc.understandingaccounting.org/asc/205/20/#205-20-50-1) . 12. l For disposals of individually significant components of an entity, see paragraph [360-10-50-3A](https://asc.understandingaccounting.org/asc/360/10/#360-10-50-3A). 13. ll For disclosure requirements on the amount of obligations outstanding under a supplier finance program, see paragraph [405-50-50-4](https://asc.understandingaccounting.org/asc/405/50/#405-50-50-4). 14. m For insurance entities that account for short-duration contracts, see paragraphs [944-40-50-3](https://asc.understandingaccounting.org/asc/944/40/#944-40-50-3) and [944-40-50-4E](https://asc.understandingaccounting.org/asc/944/40/#944-40-50-4E). 15. n For insurance entities that account for long-duration contracts, see paragraphs [944-30-50-2A through 50-2B](https://asc.understandingaccounting.org/asc/944/30/#944-30-50-2A) , [944-40-50-6 through 50-7C](https://asc.understandingaccounting.org/asc/944/40/#944-40-50-6), and [944-80-50-1 through 50-2](https://asc.understandingaccounting.org/asc/944/80/#944-80-50-1) . 16. o For disclosure requirements on investments that generate income tax credits and other income tax benefits from a tax credit program, see paragraphs [323-740-50-1 through 50-2](https://asc.understandingaccounting.org/asc/323/740/#323-740-50-1) . 17. p For disclosure requirements for crypto assets, see paragraphs [350-60-50-1](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-1) and [350-60-50-6 through 50-7](https://asc.understandingaccounting.org/asc/350/60/#350-60-50-6) . 18. q For income statement expense disaggregation, see Subtopic 220-40. 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)
Editor's Note: Paragraph 270-10-50-7 will be superseded upon transition, together with its heading.
> Guidance Related to Disclosure of Other Topics at Interim Dates
[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) ##### [270-10-50-8](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-8) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:6058d0a107c1da74f04c262df3cf361749071fe986b8819615eb419eb23c44cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)This Section provides the following disclosure guidance for interim financial statements and notes in accordance with generally accepted accounting principles (GAAP): 1. a Disclosure requirements of this Topic 2. b Interim disclosure requirements of other Topics for condensed statements 3. c Disclosure principle. The disclosures in (a) and (b) and the disclosure principle in (c) are designed to complement each other. In determining which disclosures to provide in condensed statements, an entity shall evaluate the list of disclosures to determine whether a disclosure is required to be provided in an interim period. All entities, except those that provide notes subject to applicable annual disclosure requirements in GAAP, shall consider the disclosure principle in paragraphs [270-10-50-67 through 50-70](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-67) to determine whether any additional disclosures are necessary in an interim reporting period. #### Disclosure Requirements of This Topic ##### [270-10-50-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:cb7375cd96456e42c69c400c194b77f75113428b6a6f1cbfd205b0d833f41abe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)All entities shall disclose the following information in their interim financial statements and notes in accordance with GAAP: 1. a Sales or gross revenues, provision for income taxes, net income, and comprehensive income 2. b Significant changes in estimates or provisions for income taxes (see paragraphs [740-270-30-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-2), [740-270-30-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6), and [740-270-30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-8)) 3. c The nature and amount of costs and expenses incurred in an interim period that cannot be readily identified with the activities or benefits of other interim periods unless items of a comparable nature are included in both the current interim period and in the corresponding interim period of the preceding year. 4. d Information needed for a proper understanding of the impact of unusual or infrequent items such as unusual seasonal results. 5. e The seasonal nature of activities for an entity with material seasonal variations in revenue, costs, or expenses. 6. f When an entity uses estimated gross profit rates to determine the cost of goods sold during interim periods or uses other methods different from those used at annual inventory dates, the method used to determine the cost of goods sold at the interim date and any significant adjustments that result from reconciliations with the annual physical inventory. 7. g Error corrections that are material with respect to an interim period but not material with respect to the estimated income for the full fiscal year or to the trend of earnings, as indicated in paragraph [250-10-45-27](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-27). 8. h A statement that interim financial statements are to be read in conjunction with the most recently issued annual financial statements and notes in accordance with GAAP. This disclosure is applicable only for entities that are not Securities and Exchange Commission (SEC) registrants and that provide condensed statements in accordance with the guidance in paragraphs [270-10-45-22 through 45-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-22) . ##### [270-10-50-10](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-10) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:dbe441faaa512cdfb3fee81dd09616ebaaf0bc2b9ce61fc1f802b31c55a2a101 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 interim financial statements and notes in accordance with GAAP are not separately reported for the fourth quarter, users of the interim financial information often make inferences about that quarter by subtracting data based on the third quarter interim financial statements and notes in accordance with GAAP from the annual results. In the absence of separate fourth quarter financial statements, disposals of components of an entity and unusual or infrequently occurring items recognized in the fourth quarter, as well as the aggregate effect of year-end adjustments that are material to the results of that quarter (see paragraphs [270-10-05-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-05-2) and [270-10-45-10](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-10)), shall be disclosed in a note to the annual financial statements. If an entity that regularly provides interim financial statements and notes in accordance with GAAP makes an [accounting change](https://asc.understandingaccounting.org/glossary/a/#accounting-change "A change in an accounting principle, an accounting estimate, or the reporting entity. The correction of an error in previously issued financial statements is not an accounting change.") during the fourth quarter of its fiscal year and does not report the data specified by paragraph [270-10-50-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-9)in a separate fourth quarter report or in its annual report, the disclosures about the effect of the accounting change on interim periods that are required by paragraphs [270-10-45-12 through 45-14](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) or by paragraph [250-10-45-15](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-15), as appropriate, shall be made in a note to the annual financial statements for the fiscal year in which the change is made. #### Interim Disclosure Requirements of Other Topics for Condensed Statements ##### [270-10-50-11](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-11) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:03a537b3a7ce12b31183c45bfaecf039a0a2315c465d1187705f4051fe920638 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)Paragraphs [270-10-50-12 through 50-66](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-12) include a list of interim disclosure requirements for [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].)") (see paragraphs [270-10-45-20 through 45-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-20) for form and content guidance for condensed statements). While this Section provides a list of the interim disclosure requirements, an entity should refer to each referenced Topic to determine the scope of the disclosures and related requirements. Throughout the Codification there are specific disclosures that are required for an event or a transaction. When an event or transaction occurs during an interim period, an entity shall consider whether incremental disclosures are required as a result of the assessment of the disclosure principle beginning in paragraph [270-10-50-67](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-67) and, if applicable, apply the disclosure requirements of the related Topic. ##### [270-10-50-12](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-12) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:7e27368a776e97802868fe91661e30da56d38af327124b7c46f93f8ff8d9b067 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
205-10-50-1
##### [270-10-50-13](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-13) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:88568aec5cb6778b6c3c6a6d07f7d412e576a9e122c7af3bad3767949db0fc9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
205-20-50-1
205-20-50-3 through 50-3A
205-20-50-4A through 50-4B
205-20-50-5A through 50-5D
205-20-50-7
##### [270-10-50-14](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-14) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:35fee0f343da4972e185138b59441bc83520c6c2ed609f3f1ff3617414f2652f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
205-40-50-12 through 50-14
##### [270-10-50-15](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-15) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:ec5aa0127275094d0e7135f863339126ac17f86ea7063efff2591cbbafe2e4bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
210-20-50-1 through 50-6
##### [270-10-50-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-16) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:f151cd2d45c02163d3e77072ecf174b4055dda30d4f3a453e7eb170146a2172a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
220-10-50-4 through 50-6
##### [270-10-50-17](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-17) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:d354afedfb6fbb1d2042efd387dc256e2733f112a985641d6ce4fc7018944146 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
220-20-50-1
##### [270-10-50-18](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-18) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:29e04567e1523b7504f2971bfda1c920bb4f016e4372e89c649a16875ceebcf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
220-40-50-4
220-40-50-6 through 50-11
220-40-50-19 through 50-22
220-40-50-26 through 50-36
##### [270-10-50-19](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-19) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:366cc3d958e82ed193b6ae93af3961c981a14f51825d33a8e1897078489f36f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
250-10-50-1 through 50-4
250-10-50-6 through 50-9
250-10-50-11 through 50-12
##### [270-10-50-20](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-20) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:6bcd89812544cc9945ef97b414b9e24c8ae2dedfcb2ca9b442b8f8dc8b8eb02d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
260-10-50-1
260-10-50-2 through 50-3
##### [270-10-50-21](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-21) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:13ae562a56dbd13d8dec0e5172c652fd613b816dc3d69ccc0ecced7417fb973c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
280-10-50-22 through 50-26C
280-10-50-28A through 50-28B
280-10-50-32
##### [270-10-50-22](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-22) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:0f624739b39c5e4293bbf95632d63628dbe9381d0fa0f70ca767f0cd169a0d25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
310-10-50-11
310-10-50-35
310-10-50-41 through 50-44
##### [270-10-50-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-23) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:41a2db739e239ebcc320418b8c9e9107232e8b6bf9a97267e453e5085ac5038c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
320-10-50-2 through 50-3
320-10-50-5 through 50-5C
320-10-50-9 through 50-10
##### [270-10-50-24](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-24) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:fffcbd4a1b6ff08c0ba3cc802a11bf92e4a6accbbbd51e4c65b1f336f96fc4fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
321-10-50-3 through 50-4
##### [270-10-50-25](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-25) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:98763a56c514a276ce0efd6665f3d2834840c90d386c67018ba8d44cb9ed8280 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
326-20-50-4 through 50-12
326-20-50-13 through 50-18
##### [270-10-50-26](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-26) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:c15a5767045b5c4b1f341b29edc64010562b12e7b1e2bfd4a14c2b63fa4fa691 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
326-30-50-4 through 50-5
326-30-50-7 through 50-9
##### [270-10-50-27](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-27) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:b8e18af989d24b48017444afbd9a5c9a84df211d67353ff2aed462ec3df279fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
350-60-50-1
350-60-50-6 through 50-7
##### [270-10-50-28](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-28) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:95251c14083901ee3e733c748e3883be97cb8408bd96e7af283b153577c32cd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
360-10-50-3A
##### [270-10-50-29](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-29) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:e38744770784ec2f6b3a19d76a2c8f79e0fb93eb880a3c79e05f88c3363859dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
405-50-50-4
##### [270-10-50-30](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-30) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:54c0eb8e16c36fe1dacc495d5aa0b0668e23bf68594cbfe45f21ef549cbf931d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
420-10-50-1
##### [270-10-50-31](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-31) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:a44e9a14f2c11cabb2c335a37e7966103e3c4257c0996814bd75e2da0a8f7db1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
460-10-50-2 through 50-4
460-10-50-8
##### [270-10-50-32](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-32) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:3f35f50075a02d0ba68e3700868e8a7ace5d7ea3af576edf2c7260a29e47a390 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
470-20-50-2A
470-20-50-2C
##### [270-10-50-33](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-33) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:0b24de7bddd9672461b463845a8447256090bd9562dcdb2be0a9b7ebf535a004 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
505-10-50-2 through 50-3
##### [270-10-50-34](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-34) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:e359f221326b911f91ff2b8f714d274dd8d3c845cc569fca9b9b85dbb0c52857 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
606-10-50-5 through 50-6
606-10-50-8
606-10-50-12A through 50-15
##### [270-10-50-35](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-35) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:3bf90682d0b6c9cc838e4336d971b7843b31786c8461b04623218e563b20c258 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
715-20-50-6 through 50-7
##### [270-10-50-36](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-36) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:ae109ff0931a685a5ea484eb5bbfc968f93bebbb27274d2534cfeeb06c1ee381 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
715-60-50-3
715-60-50-6
##### [270-10-50-37](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-37) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:fc86decf82c1e7544a1d3438b5398c71b171d8851495e19ebaca7bf3de097eb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
740-270-50-1
##### [270-10-50-38](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-38) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:ea3cb837498f55e404c99cbc5ed4692aea09226392107cd49f3f2f9519bdc1f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
740-323-50-1 through 50-2
##### [270-10-50-39](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-39) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:70068208e0c61d208ba9587706a45f5882e5c42f3e99ed67a73b535ca93f1014 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
805-10-50-1 through 50-5
805-10-50-7
##### [270-10-50-40](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-40) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:c27da8c303db3d7aec9519ce51b2e4ac781b7dc1abafde9b6bb7311eb4e1b0cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
805-20-50-1 through 50-5
##### [270-10-50-41](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-41) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:c04dcae05da031bff6441642e70e0806608d80db84b27b2d3a616acc0c6a5b0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
805-30-50-1 through 50-4
##### [270-10-50-42](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-42) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:a63c41ef0a7a7314fbe806627d3e1e470e0a50625525b47f9e01bd4f254dda7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
808-10-50-1
##### [270-10-50-43](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-43) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:dcf3c29d48d443cef5c21a193669d05eb66d2cceff585df0b43f0da6281dddfe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
810-10-50-3 through 50-4
810-10-50-5A
810-10-50-6
810-10-50-9
810-10-50-21
##### [270-10-50-44](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-44) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:59c6a9dda618a4805423d6b4ad71867487e66b88ee16a415d31642565f54ad63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
815-10-50-1 through 50-4EEE
815-10-50-4F through 50-4H
815-10-50-4K through 50-4L
815-10-50-5C
815-10-50-8
##### [270-10-50-45](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-45) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:c6261acbbd3f2c2e163365380fcc3619a59ced9f86dda24c99f03ba5b5e23df7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
815-15-50-2
##### [270-10-50-46](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-46) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:91878863644f3e10107a65c05595eeb7e4bd804d422595d95786c4389f842094 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
815-30-50-1 through 50-2
##### [270-10-50-47](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-47) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:156124908f9499894813bf61ef261bdc2158ef14378bec7527dcfac70e9a22a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
815-40-50-2A
##### [270-10-50-48](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-48) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:4e5ffb1333c5e51042c25069a4aafbe6a241036b1c1a70976606db932af5c463 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
820-10-50-2
820-10-50-2G
820-10-50-3
820-10-50-4A
820-10-50-6A through 50-6B
820-10-50-8
##### [270-10-50-49](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-49) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:a69b5aa7f1afa3cb29a20d26232c27089c41ad5977d0f2fcd2036f72e5f811d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
825-10-50-10 through 50-11
825-10-50-12
825-10-50-20 through 50-21
825-10-50-28
825-10-50-30 through 50-32
##### [270-10-50-50](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-50) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:bb5af0e9771e77e3bf2c476e4c8c1b25e86ffd5bbda00e811bbe61da5722c6a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
842-30-50-5
##### [270-10-50-51](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-51) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:35a5d81566a8b9feecd3e06ee49473745d752978891fedb58f73dbf08dcc38e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
860-10-50-4A
##### [270-10-50-52](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-52) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:abbed8d94c2c61775a092726b164e1f4c0128aaf4eeda0e264bbd19e82b5abf2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
860-20-50-2A through 50-4
860-20-50-4D through 50-5
##### [270-10-50-53](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-53) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:e95d6c85e9953dedb4f3476f4f9dee4b02d5615bb0a82d88424738586785c117 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
860-30-50-1A
860-30-50-7
##### [270-10-50-54](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-54) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:07803896288358a69fda62f5936e558e192642d3ac1167ae7a580348132042e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
860-50-50-2 through 50-5
##### [270-10-50-55](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-55) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:1bcf3bcd82b12ff4b9366a619f98fc9d49c7d730190ed98fe515615e1dced9db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
932-270-50-1
##### [270-10-50-56](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-56) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:76b951ae1d62202e22dbf848cb4f6355d33bfa7f130170c2d4bd665d9208587b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
942-320-50-2 through 50-4
##### [270-10-50-57](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-57) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:ffcdd479f23e726d6f88e69e1d9c360ad5bb615476501b1467f7790e741d4fb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
944-30-50-2A through 50-2B
##### [270-10-50-58](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-58) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:e3a702c31b720df386d12a00d618bdcc66f8acc0c8e577eaaf3a524a9c53ff9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
944-40-50-3
944-40-50-4A
944-40-50-4E
944-40-50-6 through 50-7C
944-40-50-9(a)(5)
##### [270-10-50-59](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-59) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:4e6839035e99229f8fdba7a58adb2e34148e5243eb96db6b32fc9595a647ebd0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
944-60-50-2
##### [270-10-50-60](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-60) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:1133ba6bd0016a3cf38aaa484bed5a954ac297e2d694a6e7ef5b314645b8a0db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
944-80-50-1 through 50-2
##### [270-10-50-61](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-61) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:7841d5e72b0583a0571ebe598fa804ac7d4c011cc188787bfcd845c967a73c7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
944-310-50-3
##### [270-10-50-62](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-62) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:421617d8d6283dd3130ff7b6b8ac008bd356fde00253cb2892f600f5fe5d66f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
944-605-50-4
##### [270-10-50-63](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-63) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:4bfa826081b5484cbd1c4a0f67189003fae52114a74ac360f0feb6ae2bbb7705 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
946-20-50-3
946-20-50-10
##### [270-10-50-64](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-64) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:ae48dbf255767a3c532dc69e057086ea7e374197901377040b0d5d4e5782ee24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
946-205-50-18
##### [270-10-50-65](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-65) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:9dba6697507960ead6200c16496432243da1fd63cf2190cd4370f493b2fd1bf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
954-805-50-1 through 50-3
##### [270-10-50-66](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-66) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:7334117d0cf301d1eb561ef3eaa591762dfb58b613862003440fc4ff4e1dd1ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 following table includes disclosure requirements for condensed statements:
Paragraph Number
958-805-50-2 through 50-6
958-805-50-8 through 50-14
958-805-50-16 through 50-17
#### Disclosure Principle ##### [270-10-50-67](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-67) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:69a480762ca1af4b0be284c4f5305e5f26a0a255f3fd35565511b55cd6886861 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)Interim financial statements and notes in accordance with GAAP shall include disclosures either on the face of the financial statements or in accompanying footnotes sufficient so as to make interim financial statements and notes in accordance with GAAP presented not misleading. An entity that is an SEC registrant may presume that users of interim financial statements and notes in accordance with GAAP have read or have access to the audited financial statements for the preceding fiscal year and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. (Paragraphs [270-10-45-21 through 45-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-21) provide guidance for an entity that is not an SEC registrant.) Accordingly, footnote disclosure which would substantially duplicate the disclosure contained in the most recent annual report to security holders or latest annual financial statements, such as a statement of significant accounting policies and practices and details of accounts which have not changed significantly in amount or composition since the end of the most recently completed fiscal year, may be omitted. ##### [270-10-50-68](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-68) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:465f80153781cc75107074b24deb87e0005302e9255359df6a16797ecc2c5aa1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)However, disclosure shall be provided where events subsequent to the end of the most recent fiscal year have occurred which have a material impact on the entity. Disclosures shall encompass (but not be limited to), for example, significant changes since the end of the most recently completed fiscal year in such items as accounting principles and practices; estimates inherent in the preparation of financial statements; status of long-term contracts; capitalization including significant new borrowings or modification of existing financing arrangements; and the reporting entity resulting from business combinations or dispositions. Notwithstanding the above, where material contingencies exist, disclosure of such matters shall be provided even though a significant change since year-end may not have occurred. ##### [270-10-50-69](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-69) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:eeddc2055bb6e424ac62fc37688b7070505e03ef9ed4eb0988ee20ba21f7dff9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)Contingencies and other uncertainties that could be expected to affect the fairness of presentation of financial statements at an interim date shall be disclosed in interim reporting periods in the same manner required for annual reporting periods. Such disclosures shall be repeated in interim and annual financial statements and notes in accordance with GAAP until the contingencies have been removed, resolved, or have become immaterial. The significance of a contingency or uncertainty should be judged in relation to annual financial statements. ##### [270-10-50-70](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-70) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:57.491Z to 2026-09-09T23:19:57.491Z Record version: sha256:92b134ad8ed5d6d96015d66515ba756711feac93336a4e3f7573b4749bd7dfe4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)An entity that provides disclosure about events since the end of the last annual reporting period that have a material impact on the entity (for example, an impairment or a restructuring) that occur during an interim period in accordance with paragraph [270-10-50-68](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-68) shall consider the annual disclosure requirements in other Topics as the basis for the relevant disclosures for the current interim period. The relevant disclosures for the current interim period shall focus on the event that should be captured under the disclosure principle. Therefore, all of the annual disclosure requirements in those other Topics may not be relevant. Source downloaded (UTC): 2026-09-09T23:20:00.887Z to 2026-09-09T23:20:00.887Z Record version: sha256:ea44d9c55a04ee397fd49400627b7bf9871cfc1c260e5e4e7f5cf84d82cd3839 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/270/10/#60-relationships) SEC content: no #### Fair Value Measurements and Disclosures ##### [270-10-60-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-60-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:20:00.887Z to 2026-09-09T23:20:00.887Z Record version: sha256:fe86c4e6feedbb204b7e552cbcd381a856d4643352cbee2e3c4f820399a05b70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For additional disclosure guidance for the reporting entity, see Section 820-10-50. 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)
Editor's Note: Paragraph 270-10-60-1 will be superseded upon transition, together with its heading.
> Fair Value Measurements and Disclosures
[Paragraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) Source downloaded (UTC): 2026-09-09T23:20:03.567Z to 2026-09-09T23:20:03.567Z Record version: sha256:2cd7dfc73e3490de9df4b965bf36fc72904f7bda7787d4a71b9af98fd70e1257 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/270/10/#65-transition-and-open-effective-date-information) SEC content: no #### Transition Related to Accounting Standards Update No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ##### [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:03.567Z to 2026-09-09T23:20:03.567Z Record version: sha256:dec0a1c996f954caf4e98598a8c7fe9f1e606828e197b456db0e84ac0196d344 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Accounting Standards Update 2025-11](https://asc.understandingaccounting.org/updates/asu-2025-11/) 2030-06-14 2027-12-16 2027-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 2028-12-16 The following represents the transition and effective date information related to Accounting Standards Update No. 2025-11, _Interim Reporting (Topic 270): Narrow-Scope Improvements_: **Effective date and early adoption** 1. a A public business entity shall apply the pending content that links to this paragraph for interim reporting periods within annual reporting periods beginning after December 15, 2027. An entity other than a public business entity shall apply the pending content that links to this paragraph for interim reporting periods within annual reporting periods beginning after December 15, 2028. 2. b Early adoption of the pending content that links to this paragraph is permitted in any interim reporting period in which financial statements have not yet been issued or made available for issuance. **Transition method** 1. c An entity shall apply the pending content that links to this paragraph using one of the following transition methods: 1. 1 Prospectively to interim financial statements and notes in accordance with generally accepted accounting principles (GAAP) issued for interim reporting periods beginning after the date of adoption. The disclosures required by the pending content that links to this paragraph do not need to be included in interim financial statements and notes in accordance with GAAP for interim reporting periods beginning before the date of adoption that are being presented for comparative purposes. 2. 2 Retrospectively to any or all prior interim reporting periods presented in the interim financial statements and notes in accordance with GAAP. Source downloaded (UTC): 2026-09-09T23:20:07.359Z to 2026-09-09T23:20:07.359Z Record version: sha256:16f18f5b052ae44984ce97f4b2d4da9d9e216049cf96bc908bea079d8305b5aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/270/10/#sec-00-status) SEC content: yes ##### [270-10-S00-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:07.359Z to 2026-09-09T23:20:07.359Z Record version: sha256:ac876ec1c092d454905e51105959ed693d5024c3c094d98e99c3c505167884e5 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
270-10-S99-1AmendedAccounting Standards Update No. 2020-0910/22/2020
270-10-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
270-10-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
270-10-S99-1AmendedAccounting Standards Update No. 2010-2108/02/2010
270-10-S99-2AmendedAccounting Standards Update No. 2010-2208/19/2010
Source downloaded (UTC): 2026-09-09T23:20:10.617Z to 2026-09-09T23:20:10.617Z Record version: sha256:95899918806047059a1c84a2fa3b12227de75622065e0d3859321d6d4fe239c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/270/10/#sec-45-other-presentation-matters) SEC content: yes #### Form and Content ##### [270-10-S45-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:10.617Z to 2026-09-09T23:20:10.617Z Record version: sha256:8ab3619827ca7b75a8159f929511f702f9fda115c72bb6883dce7070ee056884 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-1(d)](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-1), Regulation S-X Rule 3-03(d), for requirements to reflect adjustments in interim financial statements. ##### [270-10-S45-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:10.617Z to 2026-09-09T23:20:10.617Z Record version: sha256:af09b6bd2c2a9debf6a0a662cb7517307cf23e144fb434f9864e90ee0537a2e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [270-10-S99-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-1), Regulation S-X Rule 10-01, for requirements for form and content of interim financial statements. Smaller reporting companies, as defined in Item 10(f)(1) of Regulation S-K, should comply with the similar requirements in Regulation S-X Rule 8-03. #### Separately Presented Captions Previously Combined ##### [270-10-S45-3](https://asc.understandingaccounting.org/asc/270/10/#270-10-S45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:10.617Z to 2026-09-09T23:20:10.617Z Record version: sha256:d4d3d81300bec4d4932845a8adff12c256963a1a4d0538fb7a4815839d822ea8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [270-10-S99-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-2), SAB Topic 6.G.2, Question 1, for SEC Staff views on separately presenting captions in the Form 10Q that were previously combined. #### Separate Presentation of Inventory Components ##### [270-10-S45-4](https://asc.understandingaccounting.org/asc/270/10/#270-10-S45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:10.617Z to 2026-09-09T23:20:10.617Z Record version: sha256:d24c40faf68dc6c1e32591dd957d0a52a0e8807b227f3fa5737179d5913e8e3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [270-10-S99-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-2), SAB Topic 6.G.2.a, Question 3, for SEC Staff views regarding separate presentation of inventory components. Source downloaded (UTC): 2026-09-09T23:20:12.950Z to 2026-09-09T23:20:12.950Z Record version: sha256:3e6ba61cd88285ee3153d4130eb283ac222eace7795fc02a649e72085fb5945b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/270/10/#sec-50-disclosure) SEC content: yes #### Inclusion of Certain Necessary Adjustments in Interim Financial Statements ##### [270-10-S50-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:12.950Z to 2026-09-09T23:20:12.950Z Record version: sha256:81c84c1fa116d1aa89dce2efa9067a38d8eb01344716e9659dee38dbca2468fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-1(d)](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-1), Regulation S-X Rule 3-03(d), for disclosure requirements when including certain required adjustments in interim financial statements. #### Required Various Disclosure in Interim Financial Statements ##### [270-10-S50-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:12.950Z to 2026-09-09T23:20:12.950Z Record version: sha256:763994b38438ec172d5ef04d5d4bc5066a95d253338ddfc2002a8e4ce6da731f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [270-10-S99-1(b)](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-1), Regulation S-X Rule 10-01(b), for various disclosure requirements in interim financial statements. Smaller reporting companies, as defined in Item 10(f)(1) of Regulation S-K, should comply with the similar requirements in Regulation S-X Rule 8-03. Source downloaded (UTC): 2026-09-09T23:20:15.093Z to 2026-09-09T23:20:15.093Z Record version: sha256:f49835c881360d68a80c1c836029e313aa106e94e135768d7e4084155e9aba1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/270/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes #### Computation of when Major Income Statement Captions May Be Combined ##### [270-10-S55-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:15.093Z to 2026-09-09T23:20:15.093Z Record version: sha256:7d76d133b4ae98046e81499b1d482b18ec537725de9c23d6a3febb170ddb4b77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [270-10-S99-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-2), SAB Topic 6.G.2.a, Question 2, for SEC Staff views on the meaning of "net income" as used in the calculation of combining income statement captions for compliance with Regulation S-X Rules 10-01(a)(2) and (3). #### Computation of Cash Flows Provided by Operations for the Three Most Recent Years ##### [270-10-S55-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:15.093Z to 2026-09-09T23:20:15.093Z Record version: sha256:2fda801ce37e113eeacad76d2274fd0954d1dc1374c9198d116b12cb360d5fec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [270-10-S99-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-2), SAB Topic 6.G.2.a, Question 4, for SEC Staff views on the calculation of determining what sources and applications of cash and cash equivalents must be presented separately in order to comply with Regulation S-X Rule 10-01(a)(4). Source downloaded (UTC): 2026-09-09T23:20:17.142Z to 2026-09-09T23:20:17.142Z Record version: sha256:64486d709687976b0b8e6f65f52c4d8a9b7a1b98753d584d68a4085bea20417b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/270/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [270-10-S99-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:17.142Z to 2026-09-09T23:20:17.142Z Record version: sha256:cb09f8ad7d9f30df74b3b87acfc5e7cda48e640fca1bfb80b4176e5aae2be28d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 10-01, Interim Financial Statements (17 CFR 210.10-01). - (a) Condensed statements. Interim financial statements shall follow the general form and content of presentation prescribed by the other sections of this Regulation with the following exceptions: - - (1) Interim financial statements required by this rule need only be provided as to the registrant and its subsidiaries consolidated and may be unaudited. Separate statements of other entities which may otherwise be required by this regulation may be omitted. - (2) Interim balance sheets shall include only major captions (i. e., numbered captions) prescribed by the applicable sections of this Regulation with the exception of inventories. Data as to raw materials, work in process and finished goods inventories shall be included either on the face of the balance sheet or in the notes to the financial statements, if applicable. Where any major balance sheet caption is less than 10% of total assets, and the amount in the caption has not increased or decreased by more than 25% since the end of the preceding fiscal year, the caption may be combined with others. - (3) Interim statements of comprehensive income shall also include major captions prescribed by the applicable sections of part 210 of this chapter (Regulation S-X). When any major statement of comprehensive income (or statement of net income if comprehensive income is presented in two separate but consecutive financial statements) caption is less than 15% of average net income for the most recent three fiscal years and the amount in the caption has not increased or decreased by more than 20% as compared to the corresponding interim period of the preceding fiscal year, the caption may be combined with others. In calculating average net income, loss years should be excluded. If losses were incurred in each of the most recent three years, the average loss shall be used for purposes of this test. Notwithstanding these tests, §210.4-02 applies and de minimis amounts therefore need not be shown separately, except that registrants reporting under § 210.9 shall show investment securities gains or losses separately regardless of size. - (4) The statement of cash flows may be abbreviated starting with a single figure of net cash flows from operating activities and showing cash changes from investing and financing activities individually only when they exceed 10% of the average of net cash flows from operating activities for the most recent three years. Notwithstanding this test, § 210.4-02 applies and de minimis amounts therefore need not be shown separately. - (5) The interim financial information shall include disclosures either on the face of the financial statements or in accompanying footnotes sufficient so as to make the interim information presented not misleading. Registrants may presume that users of the interim financial information have read or have access to the audited financial statements for the preceding fiscal year and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context. Accordingly, footnote disclosure which would substantially duplicate the disclosure contained in the most recent annual report to security holders or latest audited financial statements, such as a statement of significant accounting policies and practices, details of accounts which have not changed significantly in amount or composition since the end of the most recently completed fiscal year, and detailed disclosures prescribed by §210.4-08 may be omitted. - (6) Detailed schedules otherwise required by this Regulation may be omitted for purposes of preparing interim financial statements. - (7) Provide the information required by §210.3-04 for the current and comparative year-to-date periods, with subtotals for each interim period. - (b) Other instructions as to content. The following additional instructions shall be applicable for purposes of preparing interim financial statements: - (1) Summarized statement of comprehensive income information shall be given separately as to each subsidiary not consolidated or 50 percent or less owned persons or as to each group of such subsidiaries or fifty percent or less owned persons for which separate individual or group statements would otherwise be required for annual periods. Such summarized information, however, need not be furnished for any such unconsolidated subsidiary or person which would not be required pursuant to §240.13a-13 or §240.15d-13 of this chapter to file quarterly financial information with the Commission if it were a registrant. - (2) The basis of the earnings per share computation shall be stated together with the number of shares used in the computation. - (3) If, during the most recent interim period presented, the registrant or any of its consolidated subsidiaries entered into a combination between entities under common control, supplemental disclosure of the separate results of the combined entities for periods prior to the combination shall be given, with appropriate explanations. - (4)-(5) \[Reserved\] - (6) For filings on Form 10-Q (§249.308(a) of this chapter), a letter from the registrant's independent accountant shall be filed as an exhibit (in accordance with the provisions of 17 CFR 229.601 (Item 601 of Regulation S-K) in the first Form 10-Q after the date of an accounting change indicating whether or not the change is to an alternative principle which, in the accountant's judgment is preferable under the circumstances; except that no letter from the accountant need be filed when the change is made in response to a standard adopted by the Financial Accounting Standards Board that requires such change. - (7) Any material retroactive prior period adjustment made during any period covered by the interim financial statements shall be disclosed, together with the effect thereof upon net income— total and per share—of any prior period included and upon the balance of retained earnings. If results of operations for any period presented have been adjusted retroactively by such an item subsequent to the initial reporting of such period, similar disclosure of the effect of the change shall be made. - (8) 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. - (9) The requirements of §210.3-10 are applicable to financial statements for a subsidiary of the registrant that issues securities guaranteed by the registrant or guarantees securities issued by the registrant. Disclosures about guarantors and issuers of guaranteed securities registered or being registered must be presented as required by §210.13-01. - (10) Disclosures about a registrant's affiliates whose securities collateralize any class of securities registered or being registered and the related collateral arrangement must be presented as required by §210.13-02. - \[85 FR 22000, Apr. 20, 2020\] - (c) Periods to be covered. The periods for which interim financial statements are to be provided in registration statements are prescribed elsewhere in this Regulation (see §§ 210.3-01 and 3-02). For filings on Form 10-Q, financial statements shall be provided as set forth in this paragraph (c): - (1) An interim balance sheet as of the end of the most recent fiscal quarter and a balance sheet as of the end of the preceding fiscal year shall be provided. The balance sheet as of the end of the preceding fiscal year may be condensed to the same degree as the interim balance sheet provided. An interim balance sheet as of the end of the corresponding fiscal quarter of the preceding fiscal year need not be provided unless necessary for an understanding of the impact of seasonal fluctuations on the registrant's financial condition. - (2) Interim statements of comprehensive income shall be provided for the most recent fiscal quarter, for the period between the end of the preceding fiscal year and the end of the most recent fiscal quarter, and for the corresponding periods of the preceding fiscal year. Such statements may also be presented for the cumulative twelve month period ended during the most recent fiscal quarter and for the corresponding preceding period. - (3) Interim statements of cash flows shall be provided for the period between the end of the preceding fiscal year and the end of the most recent fiscal quarter, and for the corresponding period of the preceding fiscal year. Such statements may also be presented for the cumulative twelve month period ended during the most recent fiscal quarter and for the corresponding preceding period. - (4) Registrants engaged in seasonal production and sale of a single-crop agricultural commodity may provide interim statements of comprehensive income and cash flows for the twelve month period ended during the most recent fiscal quarter and for the corresponding preceding period in lieu of the year-to-date statements specified in paragraphs (c)(2) and (3) of this section. - (d) Interim review by independent public accountant. Prior to filing, interim financial statements included in quarterly reports on Form 10-Q (17 CFR 249.308(a)) must be reviewed by an independent public accountant using applicable professional standards and procedures for conducting such reviews, as may be modified or supplemented by the Commission. If, in any filing, the company states that interim financial statements have been reviewed by an independent public accountant, a report of the accountant on the review must be filed with the interim financial statements. - (e) Filing of other interim financial information in certain cases. The Commission may, upon the informal written request of the registrant, and where consistent with the protection of investors, permit the omission of any of the interim financial information herein required or the filing in substitution thereof of appropriate information of comparable character. The Commission may also by informal written notice require the filing of other information in addition to, or in substitution for, the interim information herein required in any case where such information is necessary or appropriate for an adequate presentation of the financial condition of any person for which interim financial information is required, or whose financial information is otherwise necessary for the protection of investors. - \[46 FR 12489, Feb. 17, 1981, as amended at 50 FR 25215, June 18, 1985; 50 FR 49533, Dec. 3, 1985; 57 FR 45293, Oct. 1, 1992; 64 FR 73401, Dec. 30, 1999; 73 FR 956, Jan. 4, 2008; 74 FR 18616, Apr. 23, 2009; 76 FR 50120, Aug. 12, 2011; 83 FR 50205, Oct. 4, 2018\] #### SEC Staff Guidance ##### [270-10-S99-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:17.142Z to 2026-09-09T23:20:17.142Z Record version: sha256:2d4981dc92a933b9b17497afe76e16432e26c8d65d69f761d0cc481f19dd9a02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 6.G.2, Amendments to Form 10Q. - a. Form of condensed financial statements. - Facts: Rules 10-01(a)(2) and (3) of Regulation S-X provide that interim balance sheets and statements of income shall include only major captions (i. e., numbered captions) set forth in Regulation S-X, with the exception of inventories where data as to raw materials, work in process and finished goods shall be included, if applicable, either on the face of the balance sheet or in notes thereto. Where any major balance sheet caption is less than 10% of total assets and the amount in the caption has not increased or decreased by more than 25% since the end of the preceding fiscal year, the caption may be combined with others. When any major income statement caption is less than 15% of average net income attributable to the registrant for the most recent three fiscal years and the amount in the caption has not increased or decreased by more than 20% as compared to the corresponding interim period of the preceding fiscal year, the caption may be combined with others. Similarly, the statement of cash flows may be abbreviated, starting with a single figure of cash flows provided by operations and showing other changes individually only when they exceed 10% of the average of cash flows provided by operations for the most recent three years. - Question 1: If a company previously combined captions in a Form 10-Q but is required to present such captions separately in the Form 10-Q for the current quarter, must it retroactively reclassify amounts included in the prior-year financial statements presented for comparative purposes to conform with the captions presented for the current-year quarter? - Interpretive Response: Yes. - Question 2: If a company uses the gross profit method or some other method to determine cost of goods sold for interim periods, will it be acceptable to state only that it is not practicable to determine components of inventory at interim periods? - Interpretive Response: The staff believes disclosure of inventory components is important to investors. In reaching this decision the staff recognizes that registrants may not take inventories during interim periods and that managements, therefore, will have to estimate the inventory components. However, the staff believes that management will be able to make reasonable estimates of inventory components based upon their knowledge of the company's production cycle, the costs (labor and overhead) associated with this cycle as well as the relative sales and purchasing volume of the company. - Question 3: If a company has years during which operations resulted in a net outflow of cash and cash equivalents, should it exclude such years from the computation of cash and cash equivalents provided by operations for the three most recent years in determining what sources and applications must be shown separately? - Interpretive Response: Yes. Similar to the determination of average net income, if operations resulted in a net outflow of cash and cash equivalents during any year, such amount should be excluded in making the computation of cash flow provided by operations for the three most recent years unless operations resulted in a net outflow of cash and cash equivalents in all three years, in which case the average of the net outflow of cash and cash equivalents should be used for the test. Source downloaded (UTC): 2026-09-09T23:20:19.518Z to 2026-09-09T23:20:48.925Z Record version: sha256:3a890e226128a0778f1b78930453723b1ae3b38f24efe188968a60c87edef393 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740: Interim Reporting — Income Taxes ### Machine-generated study aids ```json { "summary": "This subtopic governs how income tax expense (or benefit) is computed and presented in interim financial statements. The core rule is a hybrid model: tax on \"ordinary income (or loss)\" is measured by applying a best-estimate annual effective tax rate to year-to-date ordinary income, while items excluded from that rate — significant unusual or infrequently occurring items, discontinued operations, changes in tax law or rates on deferred taxes, changes in beginning-of-year valuation allowances, and certain share-based payment tax effects — are computed individually and recognized discretely in the interim period in which they occur (740-270-25-2; 740-270-30-11 through 30-13). Recognition of interim tax benefits from losses is limited to amounts expected to be realized during the year or recognizable as a deferred tax asset at year-end (740-270-25-9).", "key_points": [ "Tax on ordinary income (loss) is computed at an estimated annual effective tax rate applied to year-to-date ordinary income, with the interim period amount equal to the year-to-date amount less amounts reported in prior interim periods; all other items are computed individually and recognized when they occur (740-270-25-2; 740-270-30-5; 740-270-35-4).", "The annual effective rate must be re-estimated at the end of each successive interim period and reflects anticipated credits, foreign rates, depletion, capital gains rates, tax planning, and any valuation allowance for originating deductible temporary differences (740-270-30-6 through 30-8; 740-270-35-3).", "Excluded from the estimated annual effective tax rate: effects of changes in judgment about beginning-of-year valuation allowances, effects of tax law/rate changes on deferred taxes and on prior-year taxes payable/refundable, significant unusual or infrequently occurring items reported separately, items reported net of tax, and share-based payment tax effects where the tax deduction differs from cumulative book compensation cost (740-270-30-11 through 30-13; 740-270-25-7).", "New tax legislation may not be recognized before enactment; its effect on current-year taxes payable is reflected in the annual effective rate beginning in the interim period that includes the enactment date, while its effect on deferred taxes (and on prior-year taxes) is recognized discretely as of the enactment date (740-270-25-5; 25-6).", "Tax benefits of losses arising early in the year are recognized only if expected to be realized during the year or recognizable as a year-end deferred tax asset; an established seasonal pattern of early losses offset by later income is evidence that realization is more likely than not, and unrecognized early-period benefits absorb later-period income before any tax is provided (740-270-25-9 through 25-11; 740-270-35-5).", "Four year-to-date/full-year income-loss combinations drive the computation, with the year-to-date benefit and the estimated annual benefit each capped by the limitations in 740-270-30-30 through 30-33, which permit reversal of existing taxable temporary differences as a source of realization (740-270-30-22 through 30-28; 30-32).", "For multiple jurisdictions, one overall estimated annual effective rate is used, except that a jurisdiction with an unrecognizable loss benefit, or one for which a reliable estimate cannot be made, is excluded and computed separately or discretely (740-270-30-36; 30-19), and significant variations in the customary relationship between tax expense and pretax income must be disclosed (740-270-50-1)." ], "categories": [ "Income taxes", "Financial statement presentation", "Recognition", "Disclosure" ], "audience_level": "advanced", "student_note": "Interim tax provisions are a favorite exam and practice trap: the split between the annual-effective-rate approach for ordinary income and discrete recognition for everything else drives most errors. The most common misunderstanding is thinking a tax law change or a change in a beginning-of-year valuation allowance gets spread through the annual rate — it does not; only the effect on current-year taxes payable enters the rate, and only from the interim period containing the enactment date.", "related_topics": [ "740-10", "740-20", "270-10", "205-20", "718", "250-10" ], "key_concepts": [ "estimated annual effective tax rate", "ordinary income or loss", "discrete items", "interim tax benefit limitation", "valuation allowance", "intraperiod tax allocation", "enactment date", "multiple jurisdictions" ] } ``` Source downloaded (UTC): 2026-09-09T23:20:19.518Z to 2026-09-09T23:20:19.518Z Record version: sha256:019a3a995150c6dff3b0427004f1164ae3e55d6febd6bcc45248a81667754b49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/270/740/#00-status) SEC content: no ##### [270-740-00-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:19.518Z to 2026-09-09T23:20:19.518Z Record version: sha256:bc059976ced3632fc39a0eb1e09c4f5faccc3ef39ee28178dfdca4cffd2680c2 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
Commencement Date of the Lease (Commencement Date)AddedAccounting Standards Update No. 2016-0202/25/2016
Component of an EntitySupersededAccounting Standards Update No. 2014-0804/10/2014
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
Deferred Tax Expense (or Benefit)AmendedAccounting Standards Update No. 2015-0101/09/2015
Extraordinary ItemsSupersededAccounting Standards Update No. 2015-0101/09/2015
Infrequency of OccurrenceAddedAccounting Standards Update No. 2015-0101/09/2015
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Leveraged LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Ordinary Income (or Loss)AmendedAccounting Standards Update No. 2015-0101/09/2015
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
Unusual NatureAddedAccounting Standards Update No. 2015-0101/09/2015
740-270-05-4AmendedAccounting Standards Update No. 2015-0101/09/2015
740-270-25-5AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-25-12AmendedAccounting Standards Update No. 2016-0903/30/2016
740-270-25-12 through 25-14
AmendedAccounting Standards Update No. 2015-0101/09/2015
740-270-30-4AmendedAccounting Standards Update No. 2016-0903/30/2016
740-270-30-8AmendedAccounting Standards Update No. 2016-0903/30/2016
740-270-30-8AmendedAccounting Standards Update No. 2015-0101/09/2015
740-270-30-11AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-30-12AmendedAccounting Standards Update No. 2016-0903/30/2016
740-270-30-12AmendedAccounting Standards Update No. 2015-0101/09/2015
740-270-30-15AmendedAccounting Standards Update No. 2016-0202/25/2016
740-270-30-28AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-30-34AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-45-2 through 45-5
AmendedAccounting Standards Update No. 2015-0101/09/2015
740-270-45-7AmendedAccounting Standards Update No. 2014-0804/10/2014
740-270-45-8AmendedAccounting Standards Update No. 2014-0804/10/2014
740-270-55-16AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-55-24 through 55-28
AmendedAccounting Standards Update No. 2015-0101/09/2015
740-270-55-38AmendedAccounting Standards Update No. 2015-0101/09/2015
740-270-55-44AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-55-45AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-55-49AmendedAccounting Standards Update No. 2019-1212/18/2019
740-270-55-50SupersededAccounting Standards Update No. 2019-1212/18/2019
740-270-55-51SupersededAccounting Standards Update No. 2019-1212/18/2019
740-270-55-52AmendedAccounting Standards Update No. 2015-0101/09/2015
Source downloaded (UTC): 2026-09-09T23:20:22.469Z to 2026-09-09T23:20:22.469Z Record version: sha256:38d2119f01b2f4da12d1e6caebb3ac0a01a1d22b66eb8d9b3aa13833253b2cc2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/270/740/#05-overview-and-background) SEC content: no ##### [270-740-05-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:22.469Z to 2026-09-09T23:20:22.469Z Record version: sha256:32f47dbd3be9f22f70ab771c594957d1e0d95ccbabdd960a70687dac1dbd687c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and disclosure for [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") in interim periods. The accounting requirements established in this Subtopic build upon the general requirements for accounting for income taxes established in Subtopic 740-10 as well as the intraperiod tax allocation process established in Subtopic 740-20. ##### [270-740-05-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:22.469Z to 2026-09-09T23:20:22.469Z Record version: sha256:e1ee7221949a80ba48761ba04937113c72f80a8d0e39cf83a33cebca3bce6bca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 740-10 addresses the computation of total tax expense for an entity. Subtopic 740-20 addresses the process of allocating total [income tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/i/#income-tax-expense-or-benefit "The sum of current tax expense (or benefit) and deferred tax expense (or benefit).") for a period to different components of comprehensive income and shareholders' equity. ##### [270-740-05-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:22.469Z to 2026-09-09T23:20:22.469Z Record version: sha256:3632ab5e29f4cdd329f2b18dba2b8b37edbb56cb3044407c50065c981686ad7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because an interim period is a subset of a longer period, typically a year, incremental requirements for recognition and measurement are established by this Subtopic. ##### [270-740-05-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:22.469Z to 2026-09-09T23:20:22.469Z Record version: sha256:f6d0bbed4fae25bbb76e23b5d56503d4e63b8a8f959d60d86cd435fd2ffdb157 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic describes: 1. a The general computation of interim period income taxes (see paragraphs [740-270-30-1 through 30-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-1) ) 2. b The application of the general computation to specific situations (see paragraphs [740-270-30-22 through 30-28](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-22) ) 3. c The interim period income taxes requirements applicable to significant unusual or infrequently occurring items and discontinued operations (see Section 740-270-45) 4. d Special computations applicable to operations taxable in multiple jurisdictions (see paragraph [740-270-30-36](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-36)) 5. e Guidelines for reflecting the effects of new tax legislation in interim period income tax provisions (see paragraphs [740-270-25-5 through 25-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-5) ) 6. f Disclosure requirements (see paragraph [740-270-50-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-50-1)). This Subtopic also provides Examples and illustrations in Section 740-270-55. Source downloaded (UTC): 2026-09-09T23:20:26.477Z to 2026-09-09T23:20:26.477Z Record version: sha256:216c3906b7f43ed1d7f90c3c18ea49749a060f44eebd5f9ed1357735ca5f074f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/270/740/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [270-740-15-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:26.477Z to 2026-09-09T23:20:26.477Z Record version: sha256:e033476353ea8c5fb8beb8be8405652c0992700f88acf6ac04894d5232d83a96 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 Subtopic 740-10-15. Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:906c54aea211c549def9f83e049b7167dcd8a9b0040b7961b2236f08a727ee59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/270/740/#25-recognition) SEC content: no #### General Recognition Approach ##### [270-740-25-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:eccb3c2c6b6d5eb88c981846944c18e42cc99f78b3dd5613a05bf7a14aad906f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the issue of how and when [income tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/i/#income-tax-expense-or-benefit "The sum of current tax expense (or benefit) and deferred tax expense (or benefit).") is recognized in interim periods and distinguishes between elements that are recognized through the use of an estimated annual effective tax rate applied to measures of year-to-date operating results, referred to as [ordinary income (or loss)](https://asc.understandingaccounting.org/glossary/o/#ordinary-income-or-loss "Ordinary income (or loss) refers to income (or loss) from continuing operations before income taxes (or benefits) excluding significant unusual or infrequently occurring items. Discontinued operations and cumulative effects of changes in accounting principles are also excluded from this term. The term is not used in the income tax context of ordinary income versus capital gain. The meaning of unusual or infrequently occurring items is consistent with their use in the definitions of the terms unusual nature and infrequency of occurrence."), and specific events that are discretely recognized as they occur. ##### [270-740-25-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:9cfe313e62d7828565b343c3125acc9b117f8be20506ae74077c9ea855f0f263 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [tax (or benefit)](https://asc.understandingaccounting.org/glossary/t/#tax-or-benefit "Tax (or benefit) is the total income tax expense (or benefit), including the provision (or benefit) for income taxes both currently payable and deferred.") related to ordinary income (or loss) shall be computed at an estimated annual effective tax rate and the tax (or benefit) related to all other items shall be individually computed and recognized when the items occur. ##### [270-740-25-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:22031b9828aa4c75c4ad443f7ed4e5796bb86637382efcaae3bc86cfa0f9ac2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity is unable to estimate a part of its ordinary income (or loss) or the related tax (or benefit) but is otherwise able to make a reliable estimate, the tax (or benefit) applicable to the item that cannot be estimated shall be reported in the interim period in which the item is reported. ##### [270-740-25-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:1c984caf6366de48138fc9f6cb1b4f3d6c7c372b9bcaf5f5886a0728ce6f3def Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax benefit of an operating loss carryforward from prior years shall be included in the effective tax rate computation if the tax benefit is expected to be realized as a result of ordinary income in the current year. Otherwise, the tax benefit shall be recognized in the manner described in paragraph [740-270-45-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-4) in each interim period to the extent that income in the period and for the year to date is available to offset the operating loss carryforward or, in the case of a change in judgment about realizability of the related [deferred tax asset](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") in future years, the effect shall be recognized in the interim period in which the change occurs. ##### [270-740-25-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:0044dc6ae7733ecc9cede3be9e53592cde67c5246640db5946e53a7448bf0a61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effects of new tax legislation shall not be recognized prior to enactment. The tax effect of a change in tax laws or rates on taxes currently payable or refundable for the current year shall be reflected in the computation of the annual effective tax rate beginning in the first interim period that includes the enactment date of the new legislation. The effect of a change in tax laws or rates on a [deferred tax liability](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-liability "The deferred tax consequences attributable to taxable temporary differences. A deferred tax liability is measured using the applicable enacted tax rate and provisions of the enacted tax law.") or asset shall not be apportioned among interim periods through an adjustment of the annual effective tax rate. ##### [270-740-25-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:073d9f4e5c7433a84797788973ed76ecf9469959af8b0acc836501c11efa2ba6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax effect of a change in tax laws or rates on taxes payable or refundable for a prior year shall be recognized as of the enactment date of the change as tax expense (benefit) for the current year. See Example 6 (paragraph [740-270-55-44](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-44)) for illustrations of accounting for changes caused by new tax legislation. ##### [270-740-25-7](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:66c98f9e9d5b720f99830fcc18f2b1d9b61176405bff58030f9b76cb954401bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of a change in the beginning-of-the-year balance of a [valuation allowance](https://asc.understandingaccounting.org/glossary/v/#valuation-allowance "The portion of a deferred tax asset for which it is more likely than not that a tax benefit will not be realized.") as a result of a change in judgment about the realizability of the related deferred tax asset in future years shall not be apportioned among interim periods through an adjustment of the effective tax rate but shall be recognized in the interim period in which the change occurs. #### Recognition of the Tax Benefit of a Loss in Interim Periods ##### [270-740-25-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:2247048954355ac33a42db95dae293c34540aaaaa890a1d08163930756a8f99d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance establishes requirements for considering whether the amount of income tax benefit recognized in an interim period shall be limited due to interim period losses. ##### [270-740-25-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:d187b231508003d63a2c1eeaba4d1b6b244b56049c62db4d3cfaa6e8ff281b9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax effects of losses that arise in the early portion of a fiscal year shall be recognized only when the tax benefits are expected to be either: 1. a Realized during the year 2. b Recognizable as a deferred tax asset at the end of the year in accordance with the provisions of Subtopic 740-10. ##### [270-740-25-10](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:367f5dca96c49213bb02921348d3d85ea5b7d3d95fbc406134d12b1eaae79067 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An established seasonal pattern of loss in early interim periods offset by income in later interim periods shall constitute evidence that realization is more likely than not, unless other evidence indicates the established seasonal pattern will not prevail. ##### [270-740-25-11](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:820844e04598c26df26b83eade2280b057c1d3f1efc3408ec15e92cd14757ba8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax effects of losses incurred in early interim periods may be recognized in a later interim period of a fiscal year if their realization, although initially uncertain, later becomes more likely than not. When the tax effects of losses that arise in the early portions of a fiscal year are not recognized in that interim period, no tax provision shall be made for income that arises in later interim periods until the tax effects of the previous interim losses are utilized. ##### [270-740-25-12](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:af949db7247b4d2657df95478dee51293c1c44f7264a2ac329e8edbad0877358 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity has a significant unusual or infrequently occurring loss or a loss from discontinued operations, the tax benefit of that loss shall be recognized in an interim period when the tax benefit of the loss is expected to be either: 1. a Realized during the year 2. b Recognizable as a deferred tax asset at the end of the year in accordance with the provisions of Subtopic 740-10. Realization would appear to be more likely than not if future [taxable income](https://asc.understandingaccounting.org/glossary/t/#taxable-income "The excess of taxable revenues over tax deductible expenses and exemptions for the year as defined by the governmental taxing authority.") from (ordinary) income during the current year is expected based on an established seasonal pattern of loss in early interim periods offset by income in later interim periods. The guidance in this paragraph also applies to a tax benefit resulting from an employee share-based payment award within the scope of Topic 718 on stock compensation when the deduction for the award for tax purposes is greater than the cumulative cost of the award recognized for financial reporting purposes. ##### [270-740-25-13](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:339793e300198a33f74efd97b0fe2e3e74b0ed693bfe32fd22f5a1bad2bfa46d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 3, Cases A and B (paragraphs [740-270-55-26 through 55-28](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-26) ) for example computations involving unusual or infrequently occurring losses. ##### [270-740-25-14](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:32.251Z to 2026-09-09T23:20:32.251Z Record version: sha256:12b41449017960ed602abe685ad19cf5f5e80dcebeb32dc03b7da63c692c9540 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If recognition of a deferred tax asset at the end of the fiscal year for all or a portion of the tax benefit of the loss depends on taxable income from the reversal of existing taxable temporary differences, see paragraphs [740-270-30-32 through 30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-32) for guidance. If all or a part of the tax benefit is not realized and future realization is not more likely than not in the interim period of occurrence but becomes more likely than not in a subsequent interim period of the same fiscal year, the previously [unrecognized tax benefit](https://asc.understandingaccounting.org/glossary/u/#unrecognized-tax-benefit "The difference between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to Subtopic 740-10.") shall be reported that subsequent interim period in the same manner that it would have been reported if realization had been more likely than not in the interim period of occurrence, that is, as a tax benefit relating to continuing operations or discontinued operations. See Subtopic 740-20 for the requirements to allocate total income tax expense (or benefit). Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:42619c8857a64a7dbe8e221cab5bbf2c1dc4638ff9564192bf54e694341568fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/270/740/#30-initial-measurement) SEC content: no #### General Methodology and Use of Estimated Annual Effective Tax Rate ##### [270-740-30-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:e6de126c2a3e3a1a1ee0274dd25d7a3690baf2b314ee7e5939a868777ea76957 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance establishes the methodology, including the use of an estimated annual effective tax rate, to determine [income tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/i/#income-tax-expense-or-benefit "The sum of current tax expense (or benefit) and deferred tax expense (or benefit).") in interim financial information. ##### [270-740-30-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:a8042ccb5ae77d02b4f0397481dba052953765fd3cd34d687e493ee6a819e46b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In reporting interim financial information, income tax provisions shall be determined under the general requirements for accounting for [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") set forth in Subtopic 740-10. ##### [270-740-30-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:65c5de2faa0ee47eb33c67ebbbb74973713b6adebd50df29a00c0060fd21d319 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income tax expense (or benefit) for an interim period is based on income taxes computed for ordinary income or loss and income taxes computed for items or events that are not part of ordinary income or loss. ##### [270-740-30-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:ce7c2efc96c1cdfc989054d585f37af8c0bc5405268443321b014367ad40852b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-270-25-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-2) requires that the [tax (or benefit)](https://asc.understandingaccounting.org/glossary/t/#tax-or-benefit "Tax (or benefit) is the total income tax expense (or benefit), including the provision (or benefit) for income taxes both currently payable and deferred.") related to [ordinary income (or loss)](https://asc.understandingaccounting.org/glossary/o/#ordinary-income-or-loss "Ordinary income (or loss) refers to income (or loss) from continuing operations before income taxes (or benefits) excluding significant unusual or infrequently occurring items. Discontinued operations and cumulative effects of changes in accounting principles are also excluded from this term. The term is not used in the income tax context of ordinary income versus capital gain. The meaning of unusual or infrequently occurring items is consistent with their use in the definitions of the terms unusual nature and infrequency of occurrence.") be computed at an estimated annual effective tax rate and the tax (or benefit) related to all other items be individually computed and recognized when the items occur (for example, the tax effects resulting from an employee share-based payment award within the scope of Topic 718 when the deduction for the award for tax purposes does not equal the cumulative compensation costs of the award recognized for financial reporting purposes). ##### [270-740-30-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:cacf113c4d47210574d278bb9af3ef34065330ddfb821536a072baf201c51941 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The estimated annual effective tax rate, described in paragraphs [740-270-30-6 through 30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6) , shall be applied to the year-to-date ordinary income (or loss) at the end of each interim period to compute the year-to-date tax (or benefit) applicable to ordinary income (or loss). ##### [270-740-30-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:c4ae0aa176d717a68751e1a9df86143b282126e840eecbef5100c0735575c091 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the end of each interim period the entity shall make its best estimate of the effective tax rate expected to be applicable for the full fiscal year. In some cases, the estimated annual effective tax rate will be the statutory rate modified as may be appropriate in particular circumstances. In other cases, the rate will be the entity's estimate of the tax (or benefit) that will be provided for the fiscal year, stated as a percentage of its estimated ordinary income (or loss) for the fiscal year (see paragraphs [740-270-30-30 through 30-34](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-30) if an ordinary loss is anticipated for the fiscal year). ##### [270-740-30-7](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:140f3d85fe14f8e7d4243835313bfd7baa30ee3bc7b4c1f6915f65a07af5fbbc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax effect of a [valuation allowance](https://asc.understandingaccounting.org/glossary/v/#valuation-allowance "The portion of a deferred tax asset for which it is more likely than not that a tax benefit will not be realized.") expected to be necessary for a [deferred tax asset](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") at the end of the year for originating deductible temporary differences and [carryforwards](https://asc.understandingaccounting.org/glossary/c/#carryforwards "Deductions or credits that cannot be utilized on the tax return during a year that may be carried forward to reduce taxable income or taxes payable in a future year. An operating loss carryforward is an excess of tax deductions over gross income in a year; a tax credit carryforward is the amount by which tax credits available for utilization exceed statutory limitations. Different tax jurisdictions have different rules about whether excess deductions or credits may be carried forward and the length of the carryforward period. The terms carryforward, operating loss carryforward, and tax credit carryforward refer to the amounts of those items, if any, reported in the tax return for the current year.") during the year shall be included in the effective tax rate. ##### [270-740-30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:1a9e2097da505287e776cdf0229423bda5b808821f676e8d6460f6d2008819dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The estimated effective tax rate also shall reflect anticipated investment tax credits, foreign tax rates, percentage depletion, capital gains rates, and other available tax planning alternatives. However, in arriving at this estimated effective tax rate, no effect shall be included for the tax related to an employee share-based payment award within the scope of Topic 718 when the deduction for the award for tax purposes does not equal the cumulative compensation costs of the award recognized for financial reporting purposes, significant unusual or infrequently occurring items that will be reported separately, or for items that will be reported net of their related tax effect in reports for the interim period or for the fiscal year. The rate so determined shall be used in providing for income taxes on a current year-to-date basis. ##### [270-740-30-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:d205fd74f37e6bf68725bad5cc962053bdf798f8519e3a65467bf6fecd9a20ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples 1 through 2 (see paragraphs [740-270-55-2 through 55-23](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-2) ) contain illustrations of the computation of estimated annual effective tax rates beginning in paragraphs [740-270-55-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-3); [740-270-55-12](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-12); and [740-270-55-19 through 55-20](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-19) . #### Exclusion of Items from Estimated Annual Effective Tax Rate ##### [270-740-30-10](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:d8d5b93a224afc07905b37a14f2c019d71b1b86141b2722eba7e570b5902b220 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance identifies items that are always excluded from the determination of the estimated annual effective tax rate. This guidance also specifies the alternatives for including or excluding certain investment tax credits in the estimated annual effective tax rate. ##### [270-740-30-11](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:38eb3822e5495fd78d434c3358c72afe62087ac95227263af5b54929ee623bd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effects of changes in judgment about beginning-of-year valuation allowances and effects of changes in tax laws or rates on deferred tax assets or liabilities and taxes payable or refundable for prior years (in the case of a retroactive change) shall be excluded from the estimated annual effective tax rate calculation. ##### [270-740-30-12](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:a6848aeb8d5f09245494a5c95d1e6c2a5ff6bec05b53eb49fa6b42e2d8f601cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Taxes related to an employee share-based payment award within the scope of Topic 718 when the deduction for the award for tax purposes does not equal the cumulative compensation costs of the award recognized for financial reporting purposes, significant unusual or infrequently occurring items that will be reported separately or items that will be reported net of their related tax effect shall be excluded from the estimated annual effective tax rate calculation. ##### [270-740-30-13](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:36b8b4ae9791fbf7ba960530185ac40cd67677f7fc03b0fefbcef854e9ddeb7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As these items are excluded from the estimated annual effective tax rate, Section 740-270-25 requires that the related tax effect be recognized in the interim period in which they occur. See Example 3 (paragraph [740-270-55-24](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-24)) for illustrations of accounting for these items in the interim period which they occur. ##### [270-740-30-14](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:615b1cda0705b26d6b2a4e2109f412c0b4c46027376f99e4a9becbd1e098a20e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain investment tax credits may be excluded from the estimated annual effective tax rate. If an entity includes allowable investment tax credits as part of its provision for income taxes over the productive life of acquired property and not entirely in the year the property is placed in service, amortization of deferred investment tax credits need not be taken into account in estimating the annual effective tax rate; however, if the investment tax credits are taken into account in the estimated annual effective tax rate, the amount taken into account shall be the amount of amortization that is anticipated to be included in income in the current year (see paragraphs [740-10-25-46](https://asc.understandingaccounting.org/asc/740/10/#740-10-25-46) and [740-10-45-28](https://asc.understandingaccounting.org/asc/740/10/#740-10-45-28)). ##### [270-740-30-15](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:c865f82aa0cd4342a80d6c6fee74de42f95f9d94b31cfff3ea0c28723440d97f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Further, paragraphs [842-50-30-1](https://asc.understandingaccounting.org/asc/842/50/#842-50-30-1) and [842-50-35-3 through 35-4](https://asc.understandingaccounting.org/asc/842/50/#842-50-35-3) require that investment tax credits related to leases that are accounted for as [leveraged leases](https://asc.understandingaccounting.org/glossary/l/#leveraged-lease "From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.") shall be deferred and accounted for as return on the net investment in the leveraged leases in the years in which the net investment is positive and explains that the use of the term _years_ is not intended to preclude application of the accounting described to shorter periods. If an entity accounts for investment tax credits related to leveraged leases in accordance with those paragraphs for interim periods, those investment tax credits shall not be taken into account in estimating the annual effective tax rate. #### Ability to Make Estimates ##### [270-740-30-16](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:158ee82ac325b638f5279419c5ac16c79bacf3fba51fd6d6fb1e35fff30de29d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the consequences of an entity's inability to reliably estimate some or all of the information that is ordinarily required to determine the annual effective tax rate in interim financial information. ##### [270-740-30-17](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:33dddc7d99e02cf629073ff1b3e164e7063def4f69a922c609068e9863ba474e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-270-25-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-3) requires that if an entity is unable to estimate a part of its ordinary income (or loss) or the related tax (or benefit) but is otherwise able to make a reliable estimate, the tax (or benefit) applicable to the item that cannot be estimated be reported in the interim period in which the item is reported. ##### [270-740-30-18](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:70e55b6b0391ac569984e71793c5d137ea5c1ffa78aa3087f742a75811619fa9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Estimates of the annual effective tax rate at the end of interim periods are, of necessity, based on evaluations of possible future events and transactions and may be subject to subsequent refinement or revision. If a reliable estimate cannot be made, the actual effective tax rate for the year to date may be the best estimate of the annual effective tax rate. ##### [270-740-30-19](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:619d209eeb86caa08ee3165ab41beb973a95c2128ed25a4d1c80d071361f70f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of translating foreign currency financial statements may make it difficult to estimate an annual effective foreign currency tax rate in dollars. For example, in some cases depreciation is translated at historical exchange rates, whereas many transactions included in income are translated at current period average exchange rates. If depreciation is large in relation to earnings, a change in the estimated ordinary income that does not change the effective foreign currency tax rate can change the effective tax rate in the dollar financial statements. This result can occur with no change in exchange rates during the current year if there have been exchange rate changes in past years. If the entity is unable to estimate its annual effective tax rate in dollars or is otherwise unable to make a reliable estimate of its ordinary income (or loss) or of the related tax (or benefit) for the fiscal year in a jurisdiction, the tax (or benefit) applicable to ordinary income (or loss) in that jurisdiction shall be recognized in the interim period in which the ordinary income (or loss) is reported. #### Effect of Operating Losses ##### [270-740-30-20](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:88659b808ecc2004b560b74c8d4be2b581140f87e1e7facca0d2768bf1a01e78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses changes to the general methodology to determine income tax expense (or benefit) in interim financial information as set forth in paragraph [740-270-30-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-5) when an entity has experienced or expects to experience operating losses. ##### [270-740-30-21](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:a2b2d105cebed797de778c6c1504ea3bc9241f1af8f590de79f6a97e2fd65474 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may have experienced year-to-date ordinary income (or loss) at the end of any interim period. These year-to-date actual results of either ordinary income (or loss) may differ from the results expected by the entity for either ordinary income (or loss) for the full fiscal year. This guidance identifies the required methodology for recording interim period income taxes for each of the four possible relationships of year-to-date ordinary income (or loss) and expected full fiscal year ordinary income (or loss).See Examples 1 through 2 (paragraphs [740-270-55-2 through 55-23](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-2) ) for example computations in these different situations. This guidance also establishes income tax benefit limitations when ordinary losses exist. ##### [270-740-30-22](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:439ece6de46eb008be7abdc6bcd3ff3906c064dded51bd6ae30559834ca4f0d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity has ordinary income for the year to date at the end of an interim period and anticipates ordinary income for the fiscal year, the interim period tax shall be computed in accordance with paragraph [740-270-30-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-5). ##### [270-740-30-23](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:1ff387632ae49c22b8be3729927c0a416be58b1383211affba19fdb2b253cc8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1, Cases A and B1 (paragraphs [740-270-55-4 through 55-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-4) ) for illustrations of the application of these requirements. ##### [270-740-30-24](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:f68709f589209978a006199d2b41ca7d4bae55c62982dea0d8d2e90b6210dfe1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity has an ordinary loss for the year to date at the end of an interim period and anticipates ordinary income for the fiscal year, the interim period tax benefit shall be computed in accordance with paragraph [740-270-30-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-5), except that the year-to-date tax benefit recognized shall be limited to the amount determined in accordance with paragraphs [740-270-30-30 through 30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-30) . ##### [270-740-30-25](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:4b4d1b8940836b2c855611e5414a67cbb4cc227fe995d105fb9c6fa8dcb02b1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1, Cases B2 and B3 (paragraphs [740-270-55-7 through 55-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-7) ) for illustrations of the application of these requirements. ##### [270-740-30-26](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:8e4ed29095b5f87ab2cfdb96a2658ed19593793747344fb9b76da4a224a2b5b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity has ordinary income for the year to date at the end of an interim period and anticipates an ordinary loss for the fiscal year, the interim period tax shall be computed in accordance with paragraph [740-270-30-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-5). The estimated tax benefit for the fiscal year, used to determine the estimated annual effective tax rate described in paragraphs [740-270-30-6 through 30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6) , shall not exceed the tax benefit determined in accordance with paragraphs [740-270-30-30 through 30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-30) . ##### [270-740-30-27](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:c758163c5627f578974285807da35c09ff2460d2822e7a16d6b3abe8b2a78600 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 2, Cases A2 and C2 (paragraphs [740-270-55-16](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-16) and [740-270-55-20](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-20)) for illustrations of the application of these requirements. ##### [270-740-30-28](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:09bed0acfaf4b5e845eb57de8b0af75cc23acc00b124aa82fead1e3e9839f5f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity has an ordinary loss for the year to date at the end of an interim period and anticipates an ordinary loss for the fiscal year, the interim period tax benefit shall be computed in accordance with paragraph [740-270-30-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-5). The estimated tax benefit for the fiscal year, used to determine the estimated annual effective tax rate described in paragraphs [740-270-30-6 through 30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6) , shall not exceed the tax benefit determined in accordance with paragraphs [740-270-30-30 through 30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-30) . ##### [270-740-30-29](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:0c843c3d0b778a21f9af2c10c3752f1a184e7ec3989f5e4c18c7c4d556154635 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 2, Cases A1, B, and C1 (paragraphs [740-270-55-15](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-15), [740-270-55-17](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-17), and [740-270-55-19](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-19)) for illustrations of the application of these requirements. #### Determining Income Tax Benefit Limitations ##### [270-740-30-30](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:d54bb1812a4ef5c0a1e7d4a9c8c9724f688d044e12855c5352961738170b4490 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-270-25-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-9) provides that a tax benefit shall be recognized for a loss that arises early in a fiscal year if the tax benefits are expected to be either of the following: 1. a Realized during the year 2. b Recognizable as a deferred tax asset at the end of the year in accordance with the requirements established in Subtopic 740-10. Paragraph [740-10-30-5(e)](https://asc.understandingaccounting.org/asc/740/10/#740-10-30-5) requires that a valuation allowance be recognized if it is more likely than not that the tax benefit of some portion or all of a deferred tax asset will not be realized. ##### [270-740-30-31](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:035bcc8005f8f3d7b64090d39bc6c53d47677502ce1d27dc92a0c37fee6a483b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The limitations described in the preceding paragraph shall be applied in determining the estimated tax benefit of an ordinary loss for the fiscal year, used to determine the estimated annual effective tax rate and the year-to-date tax benefit of a loss. ##### [270-740-30-32](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:e3a8f181649fa0527a23e01439b75f83c64a44c03f7d3a4c4c72b2f0c2c15593 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reversal of existing taxable temporary differences may be a source of evidence in determining whether a tax benefit requires limitation. A [deferred tax liability](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-liability "The deferred tax consequences attributable to taxable temporary differences. A deferred tax liability is measured using the applicable enacted tax rate and provisions of the enacted tax law.") related to existing taxable temporary differences is a source of evidence for recognition of a tax benefit when all of the following conditions exist: 1. a An entity anticipates an ordinary loss for the fiscal year or has a year-to-date ordinary loss in excess of the anticipated ordinary loss for the fiscal year. 2. b The tax benefit of that loss is not expected to be realized during the year. 3. c Recognition of a deferred tax asset for that loss at the end of the fiscal year is expected to depend on [taxable income](https://asc.understandingaccounting.org/glossary/t/#taxable-income "The excess of taxable revenues over tax deductible expenses and exemptions for the year as defined by the governmental taxing authority.") from the reversal of existing taxable temporary differences (that is, a higher deferred tax asset valuation allowance would be necessary absent the existing taxable temporary differences). The requirement to consider the reversal of existing taxable temporary differences is illustrated in Example 2, Case D (see paragraph [740-270-55-21](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-21)). ##### [270-740-30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:89bdfd46893b0fd1f506eb7e897e93a33fbbfe3ba5b869fb8280fc4300acb8f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the tax benefit relates to an estimated ordinary loss for the fiscal year, it shall be considered in determining the estimated annual effective tax rate described in paragraphs [740-270-30-6 through 30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6) . If the tax benefit relates to a year-to-date ordinary loss, it shall be considered in computing the maximum tax benefit that shall be recognized for the year to date. ##### [270-740-30-34](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:ec9e1f6f18c90191e36b76a9b1cf4e36ea05008c1e8e670930cbdccf6b78f414 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 2, Cases A1 and A2; B; and C1 and C2 (paragraphs [740-270-55-15 through 55-17](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-15) and [740-270-55-19 through 55-20](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-19) ) for illustrations of computations involving operating losses, and Example 1, Cases B2 and B3 (see paragraphs [740-270-55-7 through 55-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-7) ) for illustrations of special year-to-date limitation computations. #### Multiple Tax Jurisdictions ##### [270-740-30-35](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:c1a4dc0be118426c928a236e962c22871c79bc967b53425c4521189c05eb69c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses possible changes to the general interim period income tax expense methodology when an entity is subject to tax in multiple jurisdictions. ##### [270-740-30-36](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:164827f68e64bd648fdcdc158a7457fcc82d37178b8f324ea6aa97296779fdfb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity that is subject to tax in multiple jurisdictions pays taxes based on identified income in one or more individual jurisdictions, interim period tax (or benefit) related to consolidated ordinary income (or loss) for the year to date shall be computed in accordance with the requirements of this Subtopic using one overall estimated annual effective tax rate with the following exceptions: 1. a If in a separate jurisdiction an entity anticipates an ordinary loss for the fiscal year or has an ordinary loss for the year to date for which, in accordance with paragraphs [740-270-30-30 through 30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-30) , no tax benefit can be recognized, the entity shall exclude ordinary income (or loss) in that jurisdiction and the related tax (or benefit) from the overall computations of the estimated annual effective tax rate and interim period tax (or benefit). A separate estimated annual effective tax rate shall be computed for that jurisdiction and applied to ordinary income (or loss) in that jurisdiction in accordance with the methodology otherwise required by this Subtopic. 2. b If an entity is unable to estimate an annual effective tax rate in a foreign jurisdiction in dollars or is otherwise unable to make a reliable estimate of its ordinary income (or loss) or of the related tax (or benefit) for the fiscal year in a jurisdiction, the entity shall exclude ordinary income (or loss) in that jurisdiction and the related tax (or benefit) from the overall computations of the estimated annual effective tax rate and interim period tax (or benefit). The tax (or benefit) related to ordinary income (or loss) in that jurisdiction shall be recognized in the interim period in which the ordinary income (or loss) is reported. The tax (or benefit) related to ordinary income (or loss) in a jurisdiction may not be limited to tax (or benefit) in that jurisdiction. It might also include tax (or benefit) in another jurisdiction that results from providing taxes on unremitted earnings, foreign tax credits, and so forth. See Example 5, Cases A; B; and C (paragraphs [740-270-55-39 through 55-43](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-39) ) for illustrations of accounting for income taxes applicable to ordinary income if an entity is subject to tax in multiple jurisdictions. #### Accounting for Income Taxes Applicable to the Cumulative Effect of a Change in Accounting Principle ##### [270-740-30-37](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:21091b119c2f65f34e5639b31b23f399d05472f7cfeab7da19aac95e90249d31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 250 establishes the accounting requirements related to recording the effect of a change in accounting principle. The guidance in this Subtopic addresses issues related to the measurement of the tax effect in interim periods associated with those changes. ##### [270-740-30-38](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:8ea0d13815b1ba0d36d1189c0692bdb8e6783401aad7c113fe7c34228132da76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The tax (or benefit) applicable to the cumulative effect of the change on retained earnings at the beginning of the fiscal year shall be computed the same as for the annual financial statements. ##### [270-740-30-39](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:34.642Z to 2026-09-09T23:20:34.642Z Record version: sha256:1c529f4cca21a714a6616fe267d4839aa7be1ba84c6680cce74c9256ea988777 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity makes an accounting change in other than the first interim period of the entity's fiscal year, paragraph [250-10-45-14](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-14), requires that financial information for the prechange interim periods of the fiscal year shall be reported by retrospectively applying the newly adopted accounting principle to those prechange interim periods. The tax (or benefit) applicable to those prechange interim periods shall be recomputed. The revised tax (or benefit) shall reflect the year-to-date amounts and annual estimates originally used for the prechange interim periods, modified only for the effect of the change in accounting principle on those year-to-date and estimated annual amounts. Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:024ceefa0e6e88008d1004a6f82b118c5ba705f9fb76afe8d740b82a73ced628 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/270/740/#35-subsequent-measurement) SEC content: no ##### [270-740-35-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:3ee687a1b0dc4e7ec44595b1a62c575448c5e6e8cc1817764504141d24e2ff97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the accounting for interim period [income tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/i/#income-tax-expense-or-benefit "The sum of current tax expense (or benefit) and deferred tax expense (or benefit).") in periods subsequent to an entity's first interim period within a fiscal year. See Section 740-270-30 for a description of and requirements related to the determination of the estimated annual effective tax rate. ##### [270-740-35-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:771e5411fbd99c7826d58f4e780e00c7ed85edcb81a1de285e9692aba76a7d53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The estimated annual effective tax rate is described in paragraphs [740-270-30-6 through 30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6) . As indicated in paragraph [740-270-30-18](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-18), estimates of the annual effective tax rate at the end of interim periods are, of necessity, based on evaluations of possible future events and transactions and may be subject to subsequent refinement or revision. If a reliable estimate cannot be made, the actual effective tax rate for the year to date may be the best estimate of the annual effective tax rate. ##### [270-740-35-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:2389069669ce4a083f849960db38b065604872f95db6dab9f49d15b83bf9e58a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [740-270-30-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6), at the end of each successive interim period the entity shall make its best estimate of the effective tax rate expected to be applicable for the full fiscal year. As indicated in paragraph [740-270-30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-8), the rate so determined shall be used in providing for [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") on a current year-to-date basis. The rate shall be revised, if necessary, as of the end of each successive interim period during the fiscal year to the entity's best current estimate of its annual effective tax rate. ##### [270-740-35-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:1d680863c76964423f136b6a9b73f63692c10d35ff317c5c752127e32263dff4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [740-270-30-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-5), the estimated annual effective tax rate shall be applied to the year-to-date [ordinary income (or loss)](https://asc.understandingaccounting.org/glossary/o/#ordinary-income-or-loss "Ordinary income (or loss) refers to income (or loss) from continuing operations before income taxes (or benefits) excluding significant unusual or infrequently occurring items. Discontinued operations and cumulative effects of changes in accounting principles are also excluded from this term. The term is not used in the income tax context of ordinary income versus capital gain. The meaning of unusual or infrequently occurring items is consistent with their use in the definitions of the terms unusual nature and infrequency of occurrence.") at the end of each interim period to compute the year-to-date [tax (or benefit)](https://asc.understandingaccounting.org/glossary/t/#tax-or-benefit "Tax (or benefit) is the total income tax expense (or benefit), including the provision (or benefit) for income taxes both currently payable and deferred.") applicable to ordinary income (or loss). The interim period tax (or benefit) related to ordinary income (or loss) shall be the difference between the amount so computed and the amounts reported for previous interim periods of the fiscal year. ##### [270-740-35-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:e9fed81237aad430184d09c7a8926264291b664260ec36d807939571b5116555 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. One result of the year-to-date computation is that, if the tax benefit of an ordinary loss that occurs in the early portions of the fiscal year is not recognized because it is more likely than not that the tax benefit will not be realized, tax is not provided for subsequent ordinary income until the [unrecognized tax benefit](https://asc.understandingaccounting.org/glossary/u/#unrecognized-tax-benefit "The difference between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to Subtopic 740-10.") of the earlier ordinary loss is offset (see paragraphs [740-270-25-9 through 25-11](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-9) ). As indicated in paragraph [740-270-30-31](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-31), the limitations described in paragraph [740-270-25-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-9) shall be applied in determining the estimated tax benefit of an ordinary loss for the fiscal year, used to determine the estimated annual effective tax rate, and the year-to-date tax benefit of a loss. As indicated in paragraph [740-270-30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-33), if the tax benefit relates to an estimated ordinary loss for the fiscal year, it shall be considered in determining the estimated annual effective tax rate described in paragraphs [740-270-30-6 through 30-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-6) . If the tax benefit relates to a year-to-date ordinary loss, it shall be considered in computing the maximum tax benefit that shall be recognized for the year to date. ##### [270-740-35-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:46c412ea9a439b7c51135ee3d44579c954551ff25c18b5ebeb59918e3e639e25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A change in judgment that results in subsequent recognition, derecognition, or change in measurement of a [tax position](https://asc.understandingaccounting.org/glossary/t/#tax-position "A position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for interim or annual periods. A tax position can result in a permanent reduction of income taxes payable, a deferral of income taxes otherwise currently payable to future years, or a change in the expected realizability of deferred tax assets. The term tax position also encompasses, but is not limited to: A decision not to file a tax return An allocation or a shift of income between jurisdictions The characterization of income or a decision to exclude reporting taxable income in a tax return A decision to classify a transaction, entity, or other position in a tax return as tax exempt An entity's status, including its status as a pass-through entity or a tax-exempt not-for-profit entity.") taken in a prior interim period within the same fiscal year is an integral part of an annual period and, consequently, shall be reflected as such under the requirements of this Subtopic. This requirement differs from the requirement in paragraph [740-10-25-15](https://asc.understandingaccounting.org/asc/740/10/#740-10-25-15) applicable to a change in judgment that results in subsequent recognition, derecognition, or a change in measurement of a tax position taken in a prior annual period, which requires that the change (including any related interest and penalties) be recognized as a discrete item in the period in which the change occurs. ##### [270-740-35-7](https://asc.understandingaccounting.org/asc/270/740/#270-740-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:37.242Z to 2026-09-09T23:20:37.242Z Record version: sha256:84c1ea43d4e987b6190565d18119b4397e0fd1d92b8a8cc66172566643cf9505 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1, Case C (paragraph [740-270-55-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-9)) for an illustration of how changes in estimates impact quarterly income tax computations. Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:7387dbff71738c1c1c42d6d229e26b04e18a1eea9c97bde226aae629220f556f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/270/740/#45-other-presentation-matters) SEC content: no ##### [270-740-45-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:61ef78a8510b42912fc9b2c1e58066999aebef0635e7049612b23004139274cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subtopic 740-20 establishes requirements to allocate total [income tax expense (or benefit)](https://asc.understandingaccounting.org/glossary/i/#income-tax-expense-or-benefit "The sum of current tax expense (or benefit) and deferred tax expense (or benefit).") of an entity for a period to different components of comprehensive income and shareholders' equity. That process is referred to as intraperiod tax allocation. This Section addresses that required allocation of income tax expense (or benefit) in interim periods. ##### [270-740-45-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:659344d37ac4dcb9d09898aedf12990d229521e77020065b523d205fbeb29349 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 740-20-45 describes the method of applying tax allocation within a period. The tax allocation computation shall be made using the estimated fiscal year ordinary income together with unusual items, infrequently occurring items, and discontinued operations for the year-to-date period. ##### [270-740-45-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:220e5068d7f436fc6a149a77fd122da400035e0e7b391ceea76378dff3bb1e0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Discontinued operations that will be presented net of related tax effects in the financial statements for the fiscal year shall be presented net of related tax effects in interim financial statements. Unusual or infrequently occurring items that will be separately disclosed in the financial statements for the fiscal year shall be separately disclosed as a component of pretax income from continuing operations, and the [tax (or benefit)](https://asc.understandingaccounting.org/glossary/t/#tax-or-benefit "Tax (or benefit) is the total income tax expense (or benefit), including the provision (or benefit) for income taxes both currently payable and deferred.") related to those items shall be included in the tax (or benefit) related to continuing operations. See paragraphs [740-270-25-12 through 25-14](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-12) for interim period recognition guidance when an entity has a significant unusual or infrequently occurring loss or a loss from discontinued operations. See paragraphs [740-270-45-7 through 45-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-7) for the application of interim period allocation requirements to recognized income tax expense (or benefit) and discontinued operations. See Example 7 (paragraph [740-270-55-52](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-52)) for an illustration of the income statement display of these items. ##### [270-740-45-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:7c2d637c307f888109f7fbe0990f1b03dca27d6cc02d4dd1c6130a19f1d70763 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-20-45-3](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-3) requires that the manner of reporting the tax benefit of an operating loss carryforward recognized in a subsequent year generally is determined by the source of the income in that year and not by the source of the operating loss carryforward or the source of expected future income that will result in realization of a [deferred tax asset](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") for the operating loss carryforward. The tax benefit is allocated first to reduce tax expense from continuing operations to zero with any excess allocated to the other source(s) of income that provides the means of realization, for example, discontinued operations, other comprehensive income, and so forth. That requirement also pertains to reporting the tax benefit of an operating loss carryforward in interim periods. ##### [270-740-45-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:6752b90c27d17a5c7c04a3ad667950cca05013b98b8459202549e6b81ab3c567 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-270-25-11](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-11) establishes the requirement that when the tax effects of losses that arise in the early portions of a fiscal year are not recognized in that interim period, no tax provision shall be made for income that arises in later interim periods until the tax effects of the previous interim losses are utilized. #### Specific Requirements Applicable to Discontinued Operations ##### [270-740-45-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:b5d8b0519700b10d68be75ffc0fdb2f131ebfc1b429e9ef00a3d78b40a3f8c5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses specific requirements for the intraperiod allocation of [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") in interim periods when there are discontinued operations. ##### [270-740-45-7](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:a1e835aa76e3403a9a8877e5cf92728d3c7b903792cfb37101edb4249fab63e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity reports discontinued operations, the computations described in paragraphs [740-270-25-12 through 25-14](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-12) , [740-270-30-11 through 30-13](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-11) , and [740-270-45-2 through 45-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-2) shall be the basis for the tax (or benefit) related to the income (or loss) from operations of the discontinued operation before the date on which the criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) are met. ##### [270-740-45-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:40.016Z to 2026-09-09T23:20:40.016Z Record version: sha256:8a02d4e1a10a4876b9b6399be2ef266503cd3f279cdb4bc8388992e94f007d2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income (or loss) from operations of the discontinued operation, prior to the interim period in which the date on which the criteria in paragraph [205-20-45-1E](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1E) are met occurs, will have been included in [ordinary income (or loss)](https://asc.understandingaccounting.org/glossary/o/#ordinary-income-or-loss "Ordinary income (or loss) refers to income (or loss) from continuing operations before income taxes (or benefits) excluding significant unusual or infrequently occurring items. Discontinued operations and cumulative effects of changes in accounting principles are also excluded from this term. The term is not used in the income tax context of ordinary income versus capital gain. The meaning of unusual or infrequently occurring items is consistent with their use in the definitions of the terms unusual nature and infrequency of occurrence.") of prior periods and thus will have been included in the estimated annual effective tax rate and tax (or benefit) calculations described in Sections 740-270-30 and 740-270-35 applicable to ordinary income. The total tax (or benefit) provided in the prior interim periods shall not be recomputed but shall be divided into two components, applicable to the remaining ordinary income (or loss) and to the income (or loss) from operations of the discontinued operation as follows. A revised estimated annual effective tax rate and resulting tax (or benefit) shall be computed, in accordance with Sections 740-270-30 and 740-270-35 applicable to ordinary income, for the remaining ordinary income (or loss), on the basis of the estimates applicable to such operations used in the original calculations for each prior interim period. The tax (or benefit) related to the operations of the discontinued operation shall be the total of: 1. a The difference between the tax (or benefit) originally computed for ordinary income (or loss) and the recomputed amount for the remaining ordinary income (or loss) 2. b The tax computed in accordance with paragraphs [740-270-25-12 through 25-14](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-12) ; [740-270-30-11 through 30-13](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-11) ; and [740-270-45-2 through 45-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-2) for any unusual or infrequently occurring items of the discontinued operation. See Example 4 (paragraph [740-270-55-29](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-29)) for an illustration of accounting for income taxes applicable to income (or loss) from discontinued operations at an interim date. Source downloaded (UTC): 2026-09-09T23:20:42.950Z to 2026-09-09T23:20:42.950Z Record version: sha256:0d812bc71a972b59340d7dfe0caa801024d5dac0f7dd1bccd8c582c49fd34eef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/270/740/#50-disclosure) SEC content: no #### Variations in Customary Income Tax Expense Relationships ##### [270-740-50-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:42.950Z to 2026-09-09T23:20:42.950Z Record version: sha256:8cbada44a1f2e64565b36ddc04a677c0a775bf12e521bef08001899f3a994c92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Application of the requirements for accounting for [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") in interim periods may result in a significant variation in the customary relationship between income tax expense and pretax accounting income. The reasons for significant variations in the customary relationship between income tax expense and pretax accounting income shall be disclosed in the interim period financial statements if they are not otherwise apparent from the financial statements or from the nature of the entity's business. Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:4080864efab7f57e099160b8622fd5fb67619555615436c0c3479403d7212c4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-740-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/270/740/#55-implementation-guidance-and-illustrations) SEC content: no ##### [270-740-55-1](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:26ba579cd8e276773b645f6cf1ffb5b4ecf1772245bbf84acf3e22605b7640ea 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 Examples of applying the required accounting for interim period [income taxes](https://asc.understandingaccounting.org/glossary/i/#income-taxes "Domestic and foreign federal (national), state, and local (including franchise) taxes based on income.") to some specific situations. In general, the Examples illustrate matters unique to accounting for income taxes at interim dates. The Examples do not include consideration of the nature of tax credits and events that do not have [tax consequences](https://asc.understandingaccounting.org/glossary/t/#tax-consequences "The effects on income taxes—current or deferred—of an event.") or illustrate all possible combinations of circumstances. #### Illustrations ##### [270-740-55-2](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:0b7863c72984e82defade13eed289eba5bae0934a313ad117aa4fdbae07a9dc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the guidance in Sections 740-270-30 and 740-270-35 for accounting for income taxes applicable to [ordinary income (or loss)](https://asc.understandingaccounting.org/glossary/o/#ordinary-income-or-loss "Ordinary income (or loss) refers to income (or loss) from continuing operations before income taxes (or benefits) excluding significant unusual or infrequently occurring items. Discontinued operations and cumulative effects of changes in accounting principles are also excluded from this term. The term is not used in the income tax context of ordinary income versus capital gain. The meaning of unusual or infrequently occurring items is consistent with their use in the definitions of the terms unusual nature and infrequency of occurrence.") at an interim date if ordinary income is anticipated for the fiscal year: 1. a Ordinary income in all interim periods (Case A) 2. b Ordinary income and losses in interim periods (Case B) 3. c Changes in estimates (Case C). ##### [270-740-55-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:09dc21ee49cabab29893d59fb3a0c1df65ffdc31f963ce23bbb16928799c5ccc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A and B share all of the following assumptions: 1. a For the full fiscal year, an entity anticipates ordinary income of $100,000. All income is taxable in one jurisdiction at a 50 percent rate. Anticipated tax credits for the fiscal year total $10,000. No events that do not have tax consequences are anticipated. No changes in estimated ordinary income, tax rates, or tax credits occur during the year. 2. b Computation of the estimated annual effective tax rate applicable to ordinary income is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-036602B8-D812-4E7B-926E-65131BC39AB9-low.gif) "Tax at statutory rate ($100,000 at 50%)" " $50,000 " Less anticipated tax credits " (10,000)" Net tax to be provided " $40,000 " "Estimated annual effective tax rate ($40,000 ÷ $100,000)" 40% 3. c Tax credits are generally subject to limitations, usually based on the amount of tax payable before the credits. In computing the estimated annual effective tax rate, anticipated tax credits are limited to the amounts that are expected to be realized or are expected to be recognizable at the end of the current year in accordance with the provisions of Subtopic 740-10. If an entity is unable to estimate the amount of its tax credits for the year, see paragraphs [740-270-30-17 through 30-18](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-17) . ##### [270-740-55-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:c2503fb65f4feb11c3b42a331138ed2f3f00a171eac89502ab444118871a6dba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has ordinary income in all interim periods. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-7E672D80-5FB6-4173-A904-C1FAB7F65388-low.gif) Ordinary Income Tax Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $20,000 " " $20,000 " 40% " $8,000 " $- " $8,000 " Second quarter " 20,000 " " 40,000 " 40% " 16,000 " " 8,000 " " 8,000 " Third quarter " 20,000 " " 60,000 " 40% " 24,000 " " 16,000 " " 8,000 " Fourth quarter " 40,000 " " 100,000 " 40% " 40,000 " " 24,000 " " 16,000 " Fiscal year " $100,000 " " $40,000 " ##### [270-740-55-5](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:55752622078799ed5cdadf0a4c04bd31a37b14d0e70b311868581dbfdc446884 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate ordinary income and losses in interim periods: 1. a Year-to-date ordinary income (Case B1) 2. b Year-to-date ordinary losses, realization more likely than not (Case B2) 3. c Year-to-date ordinary losses, realization not more likely than not (Case B3). ##### [270-740-55-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:a6741a11b9ce2aaa240b4144cd8c5b3289a751b4fc44e4380206aa8ecfe76ef9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has ordinary income and losses in interim periods; there is not an ordinary loss for the fiscal year to date at the end of any interim period. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-6AF5D8AA-8089-4910-A4C4-C4A9103211A0-low.gif) Ordinary Income (Loss) Tax (or Benefit) Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $40,000 " " $40,000 " 40% " $16,000 " $- " $16,000 " Second quarter " 40,000 " " 80,000 " 40% " 32,000 " " 16,000 " " 16,000 " Third quarter " (20,000)" " 60,000 " 40% " 24,000 " " 32,000 " " (8,000)" Fourth quarter " 40,000 " " 100,000 " 40% " 40,000 " " 24,000 " " 16,000 " Fiscal year " $100,000 " " $40,000 " ##### [270-740-55-7](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:9cce92f2e8b578fc988dfcd27c34190b26e198482f0e8e9b2ced6271c5946fe8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has ordinary income and losses in interim periods, and there is an ordinary loss for the year to date at the end of an interim period. Established seasonal patterns provide evidence that realization in the current year of the tax [benefit](https://asc.understandingaccounting.org/glossary/b/#benefit "See Tax (or Benefit).") of the year-to-date loss and of anticipated tax credits is more likely than not. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-F52226C7-3C47-45AB-B683-B8C95B1D397F-low.gif) Ordinary Income (Loss) Tax (or Benefit) Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $(20,000)" " $(20,000)" 40% " $(8,000)" $- " $(8,000)" Second quarter " 10,000 " " (10,000)" 40% " (4,000)" " (8,000)" " 4,000 " Third quarter " 15,000 " " 5,000 " 40% " 2,000 " " (4,000)" " 6,000 " Fourth quarter " 95,000 " " 100,000 " 40% " 40,000 " " 2,000 " " 38,000 " Fiscal year " $100,000 " " $40,000 " ##### [270-740-55-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:b24220303df18a958b578794ae7329d4810f1d2646e1d1dac3596922d2db9387 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has ordinary income and losses in interim periods, and there is a year-to-date ordinary loss during the year. There is no established seasonal pattern and it is more likely than not that the tax benefit of the year-to-date loss and the anticipated tax credits will not be realized in the current or future years. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-9A3FBF9F-7E4D-467E-BF75-9CDF7A05737B-low.gif) Ordinary Income (Loss) Tax Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $(20,000)" " $(20,000)" — (a) $- $- $- Second quarter " 10,000 " " (10,000)" — (a) - - - Third quarter " 15,000 " " 5,000 " 40% " 2,000 " - " 2,000 " Fourth quarter " 95,000 " " 100,000 " 40% " 40,000 " " 2,000 " " 38,000 " Fiscal year " $100,000 " " $40,000 " (a) No benefit is recognized because the tax benefit of the year-to-date loss is not expected to be realized during the current year or recognizable as a deferred tax asset at the end of the current year in accordance with the provisions of Subtopic 740-10. ##### [270-740-55-9](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:7e1afa743729b3ff0b7ca9295c208a06ce6df24bbece194525181005e6e4fbb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the fiscal year, all of an entity's operations are taxable in one jurisdiction at a 50 percent rate. No events that do not have tax consequences are anticipated. Estimates of ordinary income for the year and of anticipated credits at the end of each interim period are as shown below. Changes in the estimated annual effective tax rate result from changes in the ratio of anticipated tax credits to tax computed at the statutory rate. Changes consist of an unanticipated strike that reduced income in the second quarter, an increase in the capital budget resulting in an increase in anticipated investment tax credit in the third quarter, and better than anticipated sales and income in the fourth quarter. The entity has ordinary income in all interim periods. Computations of the estimated annual effective tax rate based on the estimate made at the end of each quarter are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D053B7CC-BFDC-4788-8DDC-00341DF79B3A-low.gif) \+ "Estimated, end of" First Quarter Second Quarter Third Quarter Actual Fiscal Year Estimated ordinary income for the fiscal year " $100,000 " " $80,000 " " $80,000 " " $100,000 " Tax at 50% statutory rate " $50,000 " " $40,000 " " $40,000 " " $50,000 " Less anticipated credits " (5,000)" " (5,000)" " (10,000)" " (10,000)" Net tax to be provided " $45,000 " " $35,000 " " $30,000 " " $40,000 " Estimated annual effective tax rate 45% 43.75% 37.5% 40% ##### [270-740-55-10](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:21decc2542f0144395669e038afd33401a34725c39f45d855b1eddccd7eb09b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-38D6E032-9E1E-4FED-9D2E-1F9D86E47F56-low.gif) Ordinary Income Tax Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $25,000 " " $25,000 " 45% " $11,250 " $- " $11,250 " Second quarter " 5,000 " " 30,000 " 43.75% " 13,125 " " 11,250 " " 1,875 " Third quarter " 25,000 " " 55,000 " 37.5% " 20,625 " " 13,125 " " 7,500 " Fourth quarter " 45,000 " " 100,000 " 40% " 40,000 " " 20,625 " " 19,375 " Fiscal year " $100,000 " " $40,000 " ##### [270-740-55-11](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:c5d48e8855c7d08f34eae0b5ca9ab7c104e562454122f4c1da97157993315c43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the guidance in Section 740-270-30 for accounting for income taxes applicable to ordinary income (or loss) at an interim date if an ordinary loss is anticipated for the fiscal year: 1. a Realization of the tax benefit of the loss is more likely than not (Case A) 2. b Realization of the tax benefit of the loss is not more likely than not (Case B) 3. c Partial realization of the tax benefit of the loss is more likely than not (Case C) 4. d Reversal of net deferred tax credits (Case D). ##### [270-740-55-12](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:9acf54fd9cbdd6d537373b8e870e45985d861062a08b571f06caa53c19df3de0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A, B, and C share the following assumptions. 1. a For the full fiscal year, an entity anticipates an ordinary loss of $100,000. The entity operates entirely in one jurisdiction where the tax rate is 50 percent. Anticipated tax credits for the fiscal year total $10,000. No events that do not have tax consequences are anticipated. 2. b If there is a recognizable tax benefit for the loss and the tax credits pursuant to the requirements of Subtopic 740-10, computation of the estimated annual effective tax rate applicable to the ordinary loss would be as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-CE58B982-EAAB-4570-8008-7271AF50EC68-low.gif) "Tax benefit at statutory rate ($100,000 at 50%)" " $(50,000)" Tax credits " (10,000)" Net tax benefit " $(60,000)" "Estimated annual effective tax rate ($60,000 ÷ $100,000)" 60% ##### [270-740-55-13](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:67ebaf4fb393cb0341d1e7454924382691e648bdc4f1ac4fc191e43edee1ffe1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A, B, and C state varying assumptions with respect to assurance of realization of the components of the net tax benefit. When the realization of a component of the benefit is not expected to be realized during the current year or recognizable as a [deferred tax asset](https://asc.understandingaccounting.org/glossary/d/#deferred-tax-asset "The deferred tax consequences attributable to deductible temporary differences and carryforwards. A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.") at the end of the current year in accordance with the provisions of Subtopic 740-10, that component is not included in the computation of the estimated annual effective tax rate. ##### [270-740-55-14](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:0cfccc4f541eb695e8a666b4054fb0cc3f673315cff8ef9d0266539f60b650a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate when realization of the tax benefit of the loss is more likely than not: 1. a Ordinary losses in all interim periods (Case A1) 2. b Ordinary income and losses in interim periods (Case A2). ##### [270-740-55-15](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:1dfc7bc97b070bb416ea71bb635de386f3b6da7dd6cfd29076c2c4db486ab2ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has ordinary losses in all interim periods. The full tax benefit of the anticipated ordinary loss and the anticipated tax credits will be realized by carryback. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-12AF3B54-C130-4338-A2E7-752C9CCDD6DA-low.gif) Ordinary Loss Tax Benefit Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $(20,000)" " $(20,000)" 60% " $(12,000)" $- " $(12,000)" Second quarter " (20,000)" " (40,000)" 60% " (24,000)" " (12,000)" " (12,000)" Third quarter " (20,000)" " (60,000)" 60% " (36,000)" " (24,000)" " (12,000)" Fourth quarter " (40,000)" " (100,000)" 60% " (60,000)" " (36,000)" " (24,000)" Fiscal year " $(100,000)" " $(60,000)" ##### [270-740-55-16](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:7083ce29ed19afeb4d7500259123cb31e49686f96e755af078c71053eada3b0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has ordinary income and losses in interim periods and for the year to date. The full tax benefit of the anticipated ordinary loss and the anticipated tax credits will be realized by carryback. The full tax benefit of the maximum year-to-date ordinary loss can also be realized by carryback. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-027B04D1-BE4C-40AF-9ABA-64F63230C6F4-low.gif) Ordinary Income (Loss) Tax (or Benefit) Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $20,000 " " $20,000 " 60% " $12,000 " $- " $12,000 " Second quarter " (80,000)" " (60,000)" 60% " (36,000)" " 12,000 " " (48,000)" Third quarter " (80,000)" " (140,000)" 60% " (84,000)" " (36,000)" "(48,000)" Fourth quarter " 40,000 " " (100,000)" 60% " (60,000)" "(84,000)" "24,000" Fiscal year " $(100,000)" " $(60,000)" (a) Footnote superseded by Accounting Standards Update No. 2019-12. ##### [270-740-55-17](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:9ad4d68d9bf1989297e3d993572f2b9398773c995749f30d47fd2921bd8848bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In Cases A1 and A2, if neither the tax benefit of the anticipated loss for the fiscal year nor anticipated tax credits were recognizable pursuant to Subtopic 740-10, the estimated annual effective tax rate for the year would be zero and no [tax (or benefit)](https://asc.understandingaccounting.org/glossary/t/#tax-or-benefit "Tax (or benefit) is the total income tax expense (or benefit), including the provision (or benefit) for income taxes both currently payable and deferred.") would be recognized in any quarter. That conclusion is not affected by changes in the mix of income and loss in interim periods during a fiscal year. However, see paragraph [740-270-30-18](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-18). ##### [270-740-55-18](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:ced6dad0a047552d8482812068dcb3f3b205d1317c3814c33a44b240b07fd768 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate when partial realization of the tax benefit of the loss is more likely than not: 1. a Ordinary losses in all interim periods (Case C1) 2. b Ordinary income and losses in interim periods (Case C2). ##### [270-740-55-19](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:a87103d5c980d995734cc7a4fa841d98056b11a032483d4919db18361aa339b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has an ordinary loss in all interim periods. It is more likely than not that the tax benefit of the loss in excess of $40,000 of prior income available to be offset by carryback ($20,000 of tax at the 50 percent statutory rate) will not be realized. Therefore the estimated annual effective tax rate is 20 percent ($20,000 benefit more likely than not to be realized divided by $100,000 estimated fiscal year ordinary loss). Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-A33EA674-3845-4B5A-A7F5-5C7234A452E2-low.gif) Ordinary Loss Tax Benefit Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $(20,000)" " $(20,000)" 20% " $(4,000)" $- " $(4,000)" Second quarter " (20,000)" " (40,000)" 20% " (8,000)" " (4,000)" " (4,000)" Third quarter " (20,000)" " (60,000)" 20% " (12,000)" " (8,000)" " (4,000)" Fourth quarter " (40,000)" " (100,000)" 20% " (20,000)" " (12,000)" " (8,000)" Fiscal year " $(100,000)" " $(20,000)" ##### [270-740-55-20](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:0e229ce9ae583f95a990036b0d457e4a4a4033aaadf26996fe58be9744123315 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity has ordinary income and losses in interim periods and for the year to date. It is more likely than not that the tax benefit of the anticipated ordinary loss in excess of $40,000 of prior income available to be offset by carryback ($20,000 of tax at the 50 percent statutory rate) will not be realized. Therefore the estimated annual effective tax rate is 20 percent ($20,000 benefit more likely than not to be realized divided by $100,000 estimated fiscal year ordinary loss), and the benefit that can be recognized for the year to date is limited to $20,000 (the benefit that is more likely than not to be realized). Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-01EFF2C5-6787-43DC-9069-9E9C9C955662-low.gif) Ordinary Income (Loss) Tax (or benefit) Year-to-Date Reporting Period Ordinary Income (Loss) Year-to-Date Estimated Annual Effective Tax Rate Computed Limited to Less Previously Provided Reporting Period First quarter " $20,000 " " $20,000 " 20% " $4,000 " $- " $4,000 " Second quarter " (80,000)" " (60,000)" 20% " (12,000)" " 4,000 " " (16,000)" Third quarter " (80,000)" " (140,000)" 20% " (28,000)" " $(20,000)" " (12,000)" " (8,000)" Fourth quarter " 40,000 " " (100,000)" 20% " (20,000)" " (20,000)" - Fiscal year " $(100,000)" " $(20,000)" ##### [270-740-55-21](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:7d34cad3c8c1011083231c5d9418448ea38bc68f1797d5f378d6f9bc532a5116 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity anticipates a fiscal year ordinary loss. The loss cannot be carried back, and future profits exclusive of reversing temporary differences are unlikely. Net deferred tax liabilities arising from existing net taxable temporary differences are present. A portion of the existing net taxable temporary differences relating to those liabilities will reverse within the loss carryforward period. Computation of the estimated annual effective tax rate to be used (see paragraphs [740-270-30-32 through 30-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-32) ) is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-71B113B1-9028-4A3E-89B8-9FBCD6BCD848-low.gif) Estimated fiscal year ordinary loss " $(100,000)" The tax benefit to be recognized is the lesser of: "Tax effect of the loss carryforward ($100,000 at 50% statutory rate)" " $50,000 " Amount of the net deferred tax liabilities that would otherwise have been settled during the carry-forward period " $24,000 " "Estimated annual effective tax rate ($24,000 ÷ $100,000)" 24% ##### [270-740-55-22](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:a699092fd92215caf7800bac9dae64619faba953c30bfa92dee6a29977339a41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-1591EF53-178C-41C3-84CD-FF39B5E81802-low.gif) Ordinary Loss Tax Benefit Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $(20,000)" " $(20,000)" 24% " $(4,800)" $- " $(4,800)" Second quarter " (20,000)" " (40,000)" 24% " (9,600)" " (4,800)" " (4,800)" Third quarter " (20,000)" " (60,000)" 24% " (14,400)" " (9,600)" " (4,800)" Fourth quarter " (40,000)" " (100,000)" 24% " (24,000)" " (14,400)" " (9,600)" Fiscal year " $(100,000)" " $(24,000)" ##### [270-740-55-23](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:0faf3ddfb2d4a9e672f3da639464084723f7dfd52ad46c72f6ed63bda950cfe1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Note that changes in the timing of the loss by quarter would not change this computation. ##### [270-740-55-24](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:75b81f235a1b25c33f841f579b34208af98e0db6f1e246f9a4a38e44ea011ddf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate accounting for income taxes applicable to unusual or infrequently occurring items when ordinary income is expected for the fiscal year: 1. a Realization of the tax benefit is more likely than not at date of occurrence (Case A) 2. b Realization of the tax benefit not more likely than not at date of occurrence (Case B). ##### [270-740-55-25](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:1ec4d5c77fdd50afa77759892c886d87bf08d05dd55b697e8a8cf192f3d85847 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A and B illustrate the computation of the tax (or benefit) applicable to unusual or infrequently occurring items when ordinary income is anticipated for the fiscal year. These Cases are based on the assumptions and computations presented in paragraph [740-270-55-3](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-3) and Example 1, Cases A and B (see paragraphs [740-270-55-4 through 55-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-4) ), plus additional information supplied in Cases A and B of this Example. The computation of the tax (or benefit) applicable to the ordinary income is not affected by the occurrence of an unusual or infrequently occurring item; therefore, each Case refers to one or more of the illustrations of that computation in Example 1, Cases A and B (see paragraphs [740-270-55-4 through 55-8](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-4) ), and does not reproduce the computation and the assumptions. The income statement display for tax (or benefit) applicable to unusual or infrequently occurring items is illustrated in Example 7 (see paragraph [740-270-55-52](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-52)). ##### [270-740-55-26](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:5ccb6a0089b7b4273c914f5b0c2f597cb368f6f69343571276f89ea405ef39ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As explained in paragraph [740-270-55-25](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-25), this Case is based on the computations of tax applicable to ordinary income that are illustrated in Example 1, Case A (see paragraph [740-270-55-4](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-4)). In addition, the entity experiences a tax-deductible unusual or infrequently occurring loss of $50,000 (tax benefit $25,000) in the second quarter. Because the loss can be carried back, it is more likely than not that the tax benefit will be realized at the time of occurrence. Quarterly tax provisions are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-07C65BB9-755E-4671-AB73-749BB45C8911-low.gif) Tax (or Benefit) Applicable to Reporting Period Ordinary Income "Unusual, Infrequently Occurring, or Extraordinary Loss" Ordinary Income "Unusual, Infrequently Occurring, or Extraordinary Loss" First quarter " $20,000 " " $8,000 " Second quarter " 20,000 " " $(50,000)" " 8,000 " " $(25,000)" Third quarter " 20,000 " " 8,000 " Fourth quarter " 40,000 " " 16,000 " Fiscal year " $100,000 " " $(50,000)" " $40,000 " " $(25,000)" ##### [270-740-55-27](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:8ccd0cc55db70de7edc21e2e8322d6436dc44e6526a8fae79f80d59643ba9167 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Note that changes in assumptions would not change the timing of the recognition of the tax benefit applicable to the unusual or infrequently occurring item as long as realization is more likely than not. ##### [270-740-55-28](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:0c0dad3c1218e6116bb207c4063e515fb803d6e6a4fafafccdfb074e7cdfb296 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As explained in paragraph [740-270-55-25](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-25), this Case is based on the computations of tax applicable to ordinary income that are illustrated in Example 1, Cases A and B1 (see paragraphs [740-270-55-4 through 55-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-4) ). In addition, the entity experiences a tax-deductible unusual or infrequently occurring loss of $50,000 (potential benefit $25,000) in the second quarter. The loss cannot be carried back, and available evidence indicates that a [valuation allowance](https://asc.understandingaccounting.org/glossary/v/#valuation-allowance "The portion of a deferred tax asset for which it is more likely than not that a tax benefit will not be realized.") is needed for all of the deferred tax asset. As a result, the tax benefit of the unusual or infrequently occurring loss is recognized only to the extent of offsetting ordinary income for the year to date. Quarterly tax provisions under two different assumptions for the occurrence of ordinary income are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D1FC8685-0745-40A0-87E5-9E8C9EC29B7E-low.gif) Tax (or Benefit) Applicable to Assumptions and Reporting Period Ordinary Income (Loss) "Unusual, Infrequently Occurring, or Extraordinary Loss" Ordinary Income (Loss) "Unusual, Infrequently Occurring, or Extraordinary Loss" Reporting Period Year-to-Date Year-to-Date Less Previously Provided Reporting Period Income in all quarters: First quarter " $20,000 " " $8,000 " " $8,000 " Second quarter " 20,000 " " $(50,000)" " 8,000 " " 16,000 " " $(16,000)" $- " $(16,000)" Third quarter " 20,000 " " 8,000 " " 24,000 " " (24,000)" " (16,000)" " (8,000)" Fourth quarter " 40,000 " " 16,000 " " 40,000 " " (25,000)" " (24,000)" " (1,000)" Fiscal year " $100,000 " " $(50,000)" " $40,000 " " $(25,000)" Income and loss quarters: First quarter " $40,000 " " $16,000 " " $16,000 " Second quarter " 40,000 " " $(50,000)" " 16,000 " " 32,000 " " $(25,000)" $- " $(25,000)" Third quarter " (20,000)" " (8,000)" " 24,000 " " (24,000)" " (25,000)" " 1,000 " Fourth quarter " 40,000 " " 16,000 " " 40,000 " " (25,000)" " (24,000)" " (1,000)" Fiscal year " $100,000 " " $(50,000)" " $40,000 " " $(25,000)" ##### [270-740-55-29](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:ef35be00044ad6cfc2d0e350c9a0e7802d2d7b31c5a63a3d590810d48d0f393b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [740-270-45-7](https://asc.understandingaccounting.org/asc/270/740/#270-740-45-7). An entity anticipates ordinary income for the year of $100,000 and tax credits of $10,000. The entity has ordinary income in all interim periods. The estimated annual effective tax rate is 40 percent, computed as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-05E317B0-19B8-4479-9881-139EB0571AAC-low.gif) Estimated pretax income " $100,000 " Tax at 50% statutory rate " $50,000 " Less anticipated credits " (10,000)" Net tax to be provided " $40,000 " Estimated annual effective tax rate 40% ##### [270-740-55-30](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:59cd8da04324e8befaefeef843dd5e9de53ac98c5550c9d88834e0474c70aea7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Quarterly tax computations for the first two quarters are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-AF4FE422-1FF8-49F8-8528-F11C36451388-low.gif) Ordinary Income Tax Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $20,000 " " $20,000 " 40% " $8,000 " $- " $8,000 " Second quarter " 25,000 " " 45,000 " 40% " 18,000 " " 8,000 " " 10,000 " ##### [270-740-55-31](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:f2ed048052fe4e032080319ecb996dd92296ba2da746eea9750b507ae0723756 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the third quarter a decision is made to discontinue the operations of Division X, a segment of the business that has recently operated at a loss (before income taxes). The pretax income (and losses) of the continuing operations of the entity and of Division X through the third quarter and the estimated fourth quarter results are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-8D4ACFB2-5FBD-4B22-805E-90CF4014F730-low.gif) Division X Reporting Period Revised Ordinary Income from Continuing Operations Loss from Operations Provision for Loss on Disposal First quarter " $25,000 " " $(5,000)" Second quarter " 35,000 " " (10,000)" Third quarter " 50,000 " " (10,000)" " $(55,000)" Fourth quarter " 50,000 " (a) - - Fiscal year " $160,000 " " $(25,000)" " $(55,000)" (a) Estimated. ##### [270-740-55-32](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:4ba9c338fed7841dc3239fcea8ff8e3a5a73ec88a4337eb041a5c05fadf9a5d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No changes have occurred in continuing operations that would affect the estimated annual effective tax rate. Anticipated annual tax credits of $10,000 included $2,000 of credits related to the operations of Division X. The revised estimated annual effective tax rate applicable to ordinary income from continuing operations is 45 percent, computed as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-234D9A59-20F3-415A-AA09-CEEBFBBE71DB-low.gif) Estimated ordinary income from continuing operations " $160,000 " Tax at 50% statutory rate " 80,000 " Less anticipated tax credits applicable to continuing operations " (8,000)" Net tax to be provided " $72,000 " Estimated annual effective tax rate 45% ##### [270-740-55-33](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:9bdd387ef44eefd97fa5d6ea57b780a2f837e22bb6a8d84d98b39ad1037e09f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Quarterly computations of tax applicable to ordinary income from continuing operations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-0EDAF8ED-5E7B-4980-A6F0-C9ECA6997EE4-low.gif) Ordinary Income Tax Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $25,000 " " $25,000 " 45% " $11,250 " $- " $11,250 " Second quarter " 35,000 " " 60,000 " 45% " 27,000 " " 11,250 " " 15,750 " Third quarter " 50,000 " " 110,000 " 45% " 49,500 " " 27,000 " " 22,500 " Fourth quarter " 50,000 " " 160,000 " 45% " 72,000 " " 49,500 " " 22,500 " Fiscal year " $160,000 " " $72,000 " ##### [270-740-55-34](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:55a69255978ecd8fa559e5f0ebd500b882c51bef2d9fd79966d87d77d7274cbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Tax benefit applicable to Division X for the first two quarters is computed as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-91167D60-1186-4971-84B6-0C048ABB6875-low.gif) Tax Applicable to Ordinary Income Previously Reported Recomputed (Above) Tax Benefit Applicable to Division X Reporting Period (A) (B) (A-B) First quarter " $8,000 " " $11,250 " " $(3,250)" Second quarter " 10,000 " " 15,750 " " (5,750)" " $(9,000)" ##### [270-740-55-35](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:2bd46e9f07a7f608c09128cba9248ea0c0e01f7f893f268068f4777fad634118 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The third quarter tax benefits applicable to both the loss from operations and the provision for loss on disposal of Division X are computed based on estimated annual income with and without the effects of the Division X losses. Current year tax credits related to the operations of Division X have not been recognized. It is assumed that the tax benefit of those credits will not be realized because of the discontinuance of Division X operations. Any reduction in tax benefits resulting from recapture of previously recognized tax credits resulting from discontinuance or current year tax credits applicable to the discontinued operations would be reflected in the tax benefit recognized for the loss on disposal or loss from operations as appropriate. If, because of capital gains and losses, and so forth, the individually computed tax effects of the items do not equal the aggregate tax effects of the items, the aggregate tax effects are allocated to the individual items in the same manner that they will be allocated in the annual financial statements. The computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-EB60B71A-D34F-4FAF-9BF4-8BBCF2B80E94-low.gif) Loss from Operations Division X Provision for Loss on Disposal Estimated annual income from continuing operations " $160,000 " " $160,000 " Loss from Division X operations " (25,000)" Provision for loss on disposal of Division X " (55,000)" Total " $135,000 " " $105,000 " Tax at 50% statutory rate " $67,500 " " $52,500 " Anticipated credits from continuing operations " (8,000)" " (8,000)" Tax credits of Division X and recapture of previously recognized tax credits resulting from discontinuance - - Taxes on income after effect of Division X losses " 59,500 " " 44,500 " Taxes on income before effect of Division X losses—see computation above " 72,000 " " 72,000 " Tax benefit applicable to the losses of Division X " (12,500)" " (27,500)" Amounts previously recognized—see computation above " (9,000)" - Tax benefit recognized in third quarter " $(3,500)" " $(27,500)" ##### [270-740-55-36](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:a5d378efecfe11086c8acd1eac346feabb4744011bc5d9683e760a9bede4c3dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The resulting revised quarterly tax provisions are summarized as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-A7C8405D-AD09-4D32-A4E6-E647676B87C9-low.gif) Pretax Income (Loss) Tax (or Benefit) Applicable to Reporting Period Continuing Operations Operations of Division X Provisions for Loss on Disposal Continuing Operations Operations of Division X Provisions for Loss on Disposal First quarter " $25,000 " " $(5,000)" " $11,250 " " $(3,250)" Second quarter " 35,000 " " (10,000)" " 15,750 " " (5,750)" Third quarter " 50,000 " " (10,000)" " $(55,000)" " 22,500 " " (3,500)" " $(27,500)" Fourth quarter " 50,000 " " 22,500 " Fiscal year " $160,000 " " $(25,000)" " $(55,000)" " $72,000 " " $(12,500)" " $(27,500)" ##### [270-740-55-37](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:742f57bb96b9ee2509c40ab96b80380d25cdaa98f3b516d7159cd005d0d87792 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the guidance in paragraph [740-270-30-36](https://asc.understandingaccounting.org/asc/270/740/#270-740-30-36) for accounting for income taxes applicable to ordinary income if an entity is subject to tax in multiple jurisdictions: 1. a Ordinary income in all jurisdictions (Case A) 2. b Ordinary loss in a jurisdiction; realization of the tax benefit not more likely than not (Case B) 3. c Ordinary income or tax cannot be estimated in one jurisdiction (Case C). ##### [270-740-55-38](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:f036837513236feb67fcbc199bb7911475f37ca4392776629ed7b9b3c04d719d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A, B, and C assume that an entity operates through separate corporate entities in two countries. Applicable tax rates are 50 percent in the United States and 20 percent in Country A. The entity has no unusual or infrequently occurring items during the fiscal year and anticipates no tax credits or events that do not have tax consequences. (The effect of foreign tax credits and the necessity of providing tax on undistributed earnings are ignored because of the wide range of tax planning alternatives available.) For the full fiscal year the entity anticipates ordinary income of $60,000 in the United States and $40,000 in Country A. The entity is able to make a reliable estimate of its Country A ordinary income and tax for the fiscal year in dollars. Computation of the overall estimated annual effective tax rate in Cases B and C is based on additional assumptions stated in those Cases. ##### [270-740-55-39](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:b70be281e9c045340390eb2c2f3ae52831fc78dbbf2a128d2141730d9921b5aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Computation of the overall estimated annual effective tax rate is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-7D4315B6-4998-4BA1-9D43-BCD0FAE85E26-low.gif) Anticipated ordinary income for the fiscal year: In the United States " $60,000 " In Country A " 40,000 " Total " $100,000 " Anticipated tax for the fiscal year: "In the United States ($60,000 at 50% statutory rate)" " $30,000 " "In Country A ($40,000 at 20% statutory rate)" " 8,000 " Total " $38,000 " "Overall estimated annual effective tax rate ($38,000 ÷ $100,000)" 38% ##### [270-740-55-40](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:2fc27a71196839d6c74a55f8b444c023a0e4128dc62e63ca29fc7b40bdbdffae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-DA6451DA-CC23-4B4C-9C7D-85629EC49BC0-low.gif) Ordinary Income Tax Reporting Period United States Country A Total Year-to-Date Overall Estimated Annual Effective Tax Rate Year-to-Date Less Previously Reported Reporting Period First quarter " $5,000 " " $15,000 " " $20,000 " " $20,000 " 38% " $7,600 " $- " $7,600 " Second quarter " 10,000 " " 10,000 " " 20,000 " " 40,000 " 38% " 15,200 " " 7,600 " " 7,600 " Third quarter " 10,000 " " 10,000 " " 20,000 " " 60,000 " 38% " 22,800 " " 15,200 " " 7,600 " Fourth quarter " 35,000 " " 5,000 " " 40,000 " " 100,000 " 38% " 38,000 " " 22,800 " " 15,200 " Fiscal year " $60,000 " " $40,000 " " $100,000 " " $38,000 " ##### [270-740-55-41](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:36701a0c08523613c371dd16ab94f27ac13be715d7d13414121c30f6e96d2125 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Case, the entity operates through a separate corporate entity in Country B. Applicable tax rates in Country B are 40 percent. Operations in Country B have resulted in losses in recent years and an ordinary loss is anticipated for the current fiscal year in Country B. It is expected that the tax benefit of those losses will not be recognizable as a deferred tax asset at the end of the current year pursuant to Subtopic 740-10; accordingly, no tax benefit is recognized for losses in Country B, and interim period tax (or benefit) is separately computed for the ordinary loss in Country B and for the overall ordinary income in the United States and Country A. The tax applicable to the overall ordinary income in the United States and Country A is computed as in Case A of this Example. Quarterly tax provisions are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-8038F2E3-EA02-4AED-AFCB-70F684F4C6B1-low.gif) Ordinary Income (or Loss) Tax (or Benefit) Reporting Period United States Country A Combined Excluding Country B Country B Total Combined Excluding Country B Country B Total First quarter " $5,000 " " $15,000 " " $20,000 " " $(5,000)" " $15,000 " " $7,600 " $- " $7,600 " Second quarter " 10,000 " " 10,000 " " 20,000 " " (25,000)" " (5,000)" " 7,600 " - " 7,600 " Third quarter " 10,000 " " 10,000 " " 20,000 " " (5,000)" " 15,000 " " 7,600 " - " 7,600 " Fourth quarter " 35,000 " " 5,000 " " 40,000 " " (5,000)" " 35,000 " " 15,200 " - " 15,200 " Fiscal year " $60,000 " " $40,000 " " $100,000 " " $(40,000)" " $60,000 " " $38,000 " $- " $38,000 " ##### [270-740-55-42](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:5e7dccc6eace585cbf8f8b8c67b63b1209ae54e51401f28064538b4cd16015e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Case, the entity operates through a separate corporate entity in Country C. Applicable tax rates in Country C are 40 percent in foreign currency. Depreciation in that country is large and exchange rates have changed in prior years. The entity is unable to make a reasonable estimate of its ordinary income for the year in Country C and thus is unable to reasonably estimate its annual effective tax rate in Country C in dollars. Accordingly, tax (or benefit) in Country C is separately computed as ordinary income (or loss) occurs in Country C. The tax applicable to the overall ordinary income in the United States and Country A is computed as in Case A of this Example. Quarterly computations of tax applicable to Country C are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-6DCB65BA-B753-42CD-A37E-A1A3EB2C34BC-low.gif) Foreign Currency (FC) Amounts Translated Amounts in Dollars Reporting Period Ordinary Income in Reporting Period Tax (at 40% rate) Ordinary Income in Reporting Period Tax First quarter " FC 10,000 " " FC 4,000 " " $12,500 " " $3,000 " Second quarter " 5,000 " " 2,000 " " 8,750 " " 1,500 " Third quarter " 30,000 " " 12,000 " " 27,500 " " 9,000 " Fourth quarter " 15,000 " " 6,000 " " 16,250 " " 4,500 " Fiscal year " FC 60,000 " " FC 24,000 " " $65,000 " " $18,000 " ##### [270-740-55-43](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-43) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:8c00a8fe5c92e2ce8738fe0278a6765f02ef6deaccfe38ce832381655c0433e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Quarterly tax provisions are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-4B756A19-9C83-4BFE-8385-D5A2097CDD0A-low.gif) Ordinary Income Tax Reporting Period United States Country A Combined Excluding Country C Country C Total Combined Excluding Country C Country C Total First quarter " $5,000 " " $15,000 " " $20,000 " " $12,500 " " $32,500 " " $7,600 " " $3,000 " " $10,600 " Second quarter " 10,000 " " 10,000 " " 20,000 " " 8,750 " " 28,750 " " 7,600 " " 1,500 " " 9,100 " Third quarter " 10,000 " " 10,000 " " 20,000 " " 27,500 " " 47,500 " " 7,600 " " 9,000 " " 16,600 " Fourth quarter " 35,000 " " 5,000 " " 40,000 " " 16,250 " " 56,250 " " 15,200 " " 4,500 " " 19,700 " Fiscal year " $60,000 " " $40,000 " " $100,000 " " $65,000 " " $165,000 " " $38,000 " " $18,000 " " $56,000 " ##### [270-740-55-44](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-44) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:595a23a4a1bed8eb4d9ea75aa6c6f7be2594d73cb79c558eb3920099decc9cca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the guidance in paragraphs [740-270-25-5 through 25-6](https://asc.understandingaccounting.org/asc/270/740/#270-740-25-5) for accounting in interim periods for the effect of new tax legislation on income taxes when legislation is effective in a future interim period. 1. a [Subparagraph superseded by Accounting Standards Update No. 2019-12](https://asc.understandingaccounting.org/updates/asu-2019-12/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2019-12](https://asc.understandingaccounting.org/updates/asu-2019-12/). ##### [270-740-55-45](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-45) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:035b00bdd0afeba516979331742de082b796b466a0d9746a25eb5c3d1c37ef59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The assumed facts applicable to this Example follow. ##### [270-740-55-46](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-46) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:ebe87d17eba4e860abd5c17943f975d93a3e952ac1006d618ef9537731ba60d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the full fiscal year, an entity anticipates ordinary income of $100,000. All income is taxable in one jurisdiction at a 50 percent rate. Anticipated tax credits for the fiscal year total $10,000. No events that do not have tax consequences are anticipated. ##### [270-740-55-47](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-47) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:1081fbfe3beba9c0b94ef8bd1cad5e70380a117369e9a07f898b1d176575726a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Computation of the estimated annual effective tax rate applicable to ordinary income is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-606BB421-3BA9-49DF-B7D8-9639FC832F94-low.gif) "Tax at statutory rate ($100,000 at 50%)" " $50,000 " Less anticipated tax credits " (10,000)" Net tax to be provided " $40,000 " "Estimated annual effective tax rate ($40,000 ÷ $100,000)" 40% ##### [270-740-55-48](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-48) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:3f53fd96ec10e51085287a493e07a447120b83adade4399e28ecaccdb3c2191d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Further, assume that new legislation creating additional tax credits is enacted during the second quarter of the entity's fiscal year. The new legislation is effective on the first day of the third quarter. As a result of the estimated effect of the new legislation, the entity revises its estimate of its annual effective tax rate to the following. - ![](https://asc.understandingaccounting.org/asc-img/GUID-A5083201-1453-4B5B-965B-11ABCF5B605F-low.gif) "Tax at statutory rate ($100,000 at 50%)" " $50,000 " Less anticipated tax credits " (12,000)" Net tax to be provided " $38,000 " "Estimated annual effective tax rate ($38,000 ÷ $100,000)" 38% ##### [270-740-55-49](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-49) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:e65fe57f1f139995493ed4607fa6985c218cef59d2e264dd0275a903dde73811 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of the new legislation shall be reflected in the computation of the annual effective tax rate beginning in the first interim period that includes the enactment date of the new legislation. Accordingly, quarterly tax computations are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-50A3927F-8D9A-4D4F-8694-97CD8D6F6EEE-low.gif) Ordinary Income Tax Reporting Period Reporting Period Year-to-Date Estimated Annual Effective Tax Rate Year-to-Date Less Previously Provided Reporting Period First quarter " $20,000 " " $20,000 " 40% "$ 8,000" $- "$ 8,000" Second quarter " 20,000 " " 40,000 " 38% "15,200" "8,000" "7,200" Third quarter " 20,000 " " 60,000 " 38% "22,800" "15,200" "7,600" Fourth quarter " 40,000 " " 100,000 " 38% "38,000" "22,800" "15,200" Fiscal year " $100,000 " "$ 38,000" ##### [270-740-55-50](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-50) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:385a55979bcb0b73c0d7194a97e6278031da835937f7c9b7b5aa67748dc9e248 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2019-12](https://asc.understandingaccounting.org/updates/asu-2019-12/) ##### [270-740-55-51](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-51) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:4f2f591d67c4e9a26dac2836a4984ac842225b8ba3c2990fe51f4ff75ea3abc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2019-12](https://asc.understandingaccounting.org/updates/asu-2019-12/) ##### [270-740-55-52](https://asc.understandingaccounting.org/asc/270/740/#270-740-55-52) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:44.855Z to 2026-09-09T23:20:44.855Z Record version: sha256:e7dcc71536d0dc5fb545e6bb8990d7f2797aff3a75c65adabc49b8a6ddc92446 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the location in an income statement display of the various tax amounts computed under this Subtopic. - ![](https://asc.understandingaccounting.org/asc-img/GUID-920A2660-5567-4757-8554-D23B9F2BD544-low.gif) Net sales (a) $XXXX Other income (a) XXX XXXX Costs and expenses: Cost of sales (a) $XXXX "Selling, general, and administrative expenses (a)" XXXX Interest expense (a) XXX Other deductions (a) XX Unusual items XXX Infrequently occurring items XXX XXXX Income (loss) from continuing operations before income taxes and other items listed below XXXX Provision for income taxes (benefit) (b) XXXX Income (loss) from continuing operations before other items listed below XXXX Discontinued operations: "Income (loss) from operations of discontinued Component X (less applicable income taxes of $XXXX)" XXXX XXXX Income (loss) before extraordinary items XXXX Extraordinary items (less applicable income taxes of $XXXX) XXXX Net income (loss) $XXXX (a) Components of ordinary income (loss). (b) "Consists of the total of income taxes (or benefit) applicable to ordinary income, unusual items, and infrequently occurring items." Source downloaded (UTC): 2026-09-09T23:20:52.218Z to 2026-09-09T23:21:01.066Z Record version: sha256:375fe0e17363ef874523f6a51986cc4587ab1416b5f1eb6d35948e3dc1df552c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-932: Interim Reporting — Extractive Activities—Oil and Gas ### Machine-generated study aids ```json { "summary": "This Subtopic addresses interim reporting for oil- and gas-producing entities. Its core rule is that the extensive oil and gas disclosures required by Subtopic 932-235 (reserve quantity and standardized measure disclosures) need not be repeated in interim financial reports, but interim reports must disclose a major discovery or other favorable or adverse event that significantly changes the reserve information reported in the most recent annual financial report.", "key_points": [ "The Subtopic is limited to interim reporting issues for the oil and gas industry and otherwise follows the scope of Section 932-10-15 (270-932-15-1; 270-932-15-2).", "The disclosures set forth in Subtopic 932-235 are not required in interim financial reports (270-932-50-1).", "Interim financial reports shall nevertheless include information about a major discovery or other favorable or adverse event causing a significant change from the reserve quantity information in the most recent annual financial report (270-932-50-1).", "The trigger for interim disclosure is a significant change relative to the most recent annual report, not a routine periodic update of reserve estimates (270-932-50-1)." ], "categories": [ "Disclosure", "Industry-specific", "Presentation" ], "audience_level": "intermediate", "student_note": "Short but testable: students often assume the full 932-235 reserve and standardized-measure disclosures must be repeated quarterly; they need not be, yet a major discovery or other significant adverse/favorable reserve event still triggers interim disclosure.", "related_topics": [ "932-235", "932-10", "270-10", "932-360" ], "key_concepts": [ "interim financial reports", "oil and gas reserve quantities", "major discovery", "significant change disclosure", "extractive activities", "annual disclosure relief" ] } ``` Source downloaded (UTC): 2026-09-09T23:20:52.218Z to 2026-09-09T23:20:52.218Z Record version: sha256:e28830c865eafb426e5c4ec3225536499f6ed432ce4c98d2efde7bec033d93bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-932-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/270/932/#05-overview-and-background) SEC content: no ##### [270-932-05-1](https://asc.understandingaccounting.org/asc/270/932/#270-932-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:52.218Z to 2026-09-09T23:20:52.218Z Record version: sha256:b1a55dd84256eb4356c1117f0508c268359bc749314bc56aada680bc302f5d8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses interim reporting issues specific to the oil and gas industry. Source downloaded (UTC): 2026-09-09T23:20:54.689Z to 2026-09-09T23:20:54.689Z Record version: sha256:b5808a64facb61d8a15fecf1a2d92be92b83fbd2ad3d83cceed5777cca66f432 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-932-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/270/932/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [270-932-15-1](https://asc.understandingaccounting.org/asc/270/932/#270-932-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:54.689Z to 2026-09-09T23:20:54.689Z Record version: sha256:e324039e006762d75477d3ff38980de503d0cb666c3105e70d616b1302d62239 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 with transaction exceptions noted below. #### Transactions ##### [270-932-15-2](https://asc.understandingaccounting.org/asc/270/932/#270-932-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:54.689Z to 2026-09-09T23:20:54.689Z Record version: sha256:db6dd74572a41e489235e2debd6db87b79497ac74ea02ccc4f174c122d5ab423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic is limited to interim reporting issues only. Source downloaded (UTC): 2026-09-09T23:20:58.607Z to 2026-09-09T23:20:58.607Z Record version: sha256:a702930bfc95cf0cbd75b9e944011ef0ac42a4ac952ac805a6614eae37088e22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-932-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/270/932/#50-disclosure) SEC content: no ##### [270-932-50-1](https://asc.understandingaccounting.org/asc/270/932/#270-932-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:20:58.607Z to 2026-09-09T23:20:58.607Z Record version: sha256:aa509bc05533ca63d51ca12f6bfa99798e583f7516f6dd9ddd863976acab664b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures set forth in Subtopic 932-235 are not required in interim financial reports. However, interim financial reports shall include information about a major discovery or other favorable or adverse event that causes a significant change from the information presented in the most recent annual financial report concerning oil and gas reserve quantities.