# ASC 320-10-S99: Investments—Debt Securities — Overall — SEC 99 SEC Materials Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/10/#sec-99-sec-materials) 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): 2026-09-09T23:35:28.596Z to 2026-09-09T23:35:28.596Z Record version: sha256:01190cf299c7201fe140b04976a947751c566e294cae80e6380eb0a2658bd15e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-99-sec-materials) SEC content: yes ##### [320-10-S99-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:28.596Z to 2026-09-09T23:35:28.596Z Record version: sha256:4529f0cbd9c12ec3680affba782b243386c51d4806a754865465d6df5947d450 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-04](https://asc.understandingaccounting.org/updates/asu-2018-04/). #### SEC Staff Guidance ##### [320-10-S99-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:28.596Z to 2026-09-09T23:35:28.596Z Record version: sha256:227ca961da54b146956ffc309cb1cd864aa2d1e6191d03f491b6006ffb4f8a8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SEC Staff Announcement: Adjustments in Assets and Liabilities for Holding Gains and Losses as Related to the Implementation of Subtopic 320-10. - The SEC staff has been asked whether certain assets and liabilities, such as noncontrolling interests, certain life insurance policyholder liabilities, deferred acquisition costs, and intangible assets arising from insurance contracts acquired in business combinations, should be adjusted with a corresponding adjustment to other comprehensive income at the same time unrealized holding gains and losses from securities classified as available-for-sale are recognized in other comprehensive income. That is, should the carrying value of these assets and liabilities be adjusted to the amount that would have been reported had unrealized gains and losses been realized? - Paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11) addresses specifically the classification of the deferred tax effects of unrealized holding gains and losses reported in other comprehensive income. Paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11) requires that the tax effects of those gains and losses be reported as charges or credits directly to other comprehensive income. That is, the recognition of unrealized holding gains and losses in equity may create temporary differences for which deferred taxes would be recognized, the effect of which would be reported in accumulated other comprehensive income along with the related unrealized holding gains and losses. Therefore, deferred tax assets and liabilities are required to be recognized for the temporary differences relating to unrealized holding gains and losses as though those gains and losses actually had been realized, except the corresponding charges or credits are reported in other comprehensive income rather than as charges or credits to income in the statement of income. - By analogy to paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11), the SEC staff believes that, in addition to adjusting deferred tax assets and liabilities, registrants should adjust other assets and liabilities that would have been adjusted if the unrealized holding gains and losses from securities classified as available-for-sale actually had been realized. That is, to the extent that unrealized holding gains or losses from securities classified as available-for-sale would result in adjustments of noncontrolling interest, policyholder liabilities, deferred acquisition costs that are amortized using the gross-profits method, or intangible assets arising from insurance contracts acquired in business combinations that are amortized using the gross-profits method had those gains or losses actually been realized, the SEC staff believes that those balance sheet amounts should be adjusted with corresponding credits or charges reported directly to other comprehensive income. As a practical matter, the staff, at this time, would not extend those adjustments to other accounts such as liabilities for compensation to employees. The adjustments to asset accounts should be accomplished by way of valuation allowances that would be adjusted at subsequent balance sheet dates. - For example, certain policyholder liabilities should be adjusted to the extent that liabilities exist for insurance policies that, by contract, credit or charge the policyholders for either a portion or all of the realized gains or losses of specific securities classified as available-for-sale. Further, asset amounts that are amortized using the gross-profits method, such as deferred acquisition costs accounted for under paragraphs [944-30-35-4](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-4) and [944-30-35-11](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-11) and certain intangible assets arising from insurance contracts acquired in business combinations, should be adjusted to reflect the effects that would have been recognized had the unrealized holding gains and losses actually been realized. Further, capitalized acquisition costs associated with insurance contracts covered by paragraphs [944-30-35-1A through 35-3A](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-1A) and [944-30-35-17](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-17) should not be adjusted for an unrealized holding gain or loss unless a "premium deficiency" would have resulted had the gain or loss actually been realized. - This announcement should not affect reported net income. It addresses only the adjustment of certain assets and liabilities and the reporting of unrealized holding gains and losses from securities classified as available for sale.