# ASC 320-10-05: Investments—Debt Securities — Overall — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/320/10/#05-overview-and-background)

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## ASC 320-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/320/10/#05-overview-and-background)

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##### [320-10-05-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-05-1)

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The Codification contains several Topics for investments due to the differing accounting treatment for various forms of investment. The Topics include:

1.  a
    
    Topic 320, Investments—Debt Securities
    
2.  aa
    
    Topic 321, Investments—Equity Securities
    
3.  b
    
    Topic 323, Investments—Equity Method and Joint Ventures
    
4.  c
    
    Topic 325, Investments—Other.

##### [320-10-05-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-05-2)

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This Subtopic addresses the accounting and reporting for all investments in [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.").

1.  a
    
    [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/)
    
2.  b
    
    [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/).

##### [320-10-05-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-05-3)

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[Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).