# ASC 320-10-15: Investments—Debt Securities — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/10/#15-scope-and-scope-exceptions) 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): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:dcc475d581c590befa16a3b0108f6819af465b5bf61fd770047ee4d13cf069e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-10-15-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:ac555065241386583c354cfb066d2fbb3f440f2d2a7a80d4f9d883ddee168036 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the scope for the Investments—Debt Securities Topic. #### Entities ##### [320-10-15-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:ab82478d403690a0a9883c4a5737bd48243eae4398ce2bc36a3ec39bb92aa08e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Investments—Debt Securities Topic applies to all entities, including the following entities that are not deemed to belong to specialized industries for purposes of this Topic: 1. a Cooperatives and mutual entities (such as credit unions and mutual insurance entities) 2. b Trusts that do not report substantially all of their [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.") at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). ##### [320-10-15-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:4ffcad9ae03767f5acc602efb889e5d504f6019af5abe63e110682c4a4fd7e3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following entities: 1. a Entities in certain specialized industries. Entities whose specialized accounting practices include accounting for substantially 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.") at fair value, with changes in value recognized in earnings (income) or in the change in net assets. Examples of those entities are: 1. 1 Brokers and dealers in securities (Topic 940) 2. 2 Defined benefit pension, other postretirement, and health and welfare plans (Topics 960, 962, and 965) 3. 3 Investment companies (Topic 946). ##### [320-10-15-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:2c0b62f368012ea5f9aceb19ebad9ef858c10889bde06a89ed81a2254ba18210 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not apply to not-for-profit entities (NFPs). Subtopic 958-320 establishes standards for investments in debt securities by NFPs. #### Instruments ##### [320-10-15-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:f32bbbb78a20573029b930b1fc8bbf418475ce9e611b595e570edde2e9226acf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Investments—Debt Securities Topic establishes standards of financial accounting and reporting for all investments in debt securities, including those resulting from the securitization of other financial instruments. 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/). ##### [320-10-15-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:a367366d2bf2142fc7033e106273e670be2b3349b9e78ca6883e9f5c849a50e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all loans that meet the definition of a security. ##### [320-10-15-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:4e12e1f2382628d5828c27dca02450916d3a04548676308f6b46806ba70147af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to any of the following: 1. a Derivative instruments that are subject to the requirements of Topic 815, including those that have been separated from a host contract as required by Section 815-15-25. If an investment would otherwise be in the scope of this Topic and it has within it an embedded derivative that is required by that Section to be separated, the host instrument (as described in that Section) remains within the scope of this Topic. 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 4. d Investments in consolidated subsidiaries. ##### [320-10-15-7A](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-7A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:cdcabe510e952378f16227b1f5108d99972abb31632e5194bb8e76adea8235b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-10-15-141](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-141) explains that the guidance in the Certain Contracts on Debt and Equity Securities Subsections applies to those forward contracts and purchased options that are not derivative instruments subject to Topic 815 but that involve the acquisition of securities that will be accounted for under Subtopic 320-10. #### Other Considerations ##### [320-10-15-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:7f22675d1e239bd34757446a802ad37497de4672aac148f537d96823189ee8ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For debt securities within its scope, Subtopic 310-20 provides incremental guidance on accounting for discounts and premiums. ##### [320-10-15-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:8e769eb08f00d639c16afb79542140bd9f202540529b2842d5473c75a4458357 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For debt securities within its scope, Subtopic 325-40 provides incremental guidance on accounting for and reporting discount and credit losses. ##### [320-10-15-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:b257424935c829567970521c0c991b712201eaac171b318ac63377ac9cc061b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/).