# ASC 320-10: Investments—Debt Securities — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/10/) 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): 2026-09-09T23:34:37.849Z to 2026-09-09T23:35:28.596Z Record version: sha256:ee5280ec1ccc87e57b90afd773e2dd02dbc2d664d9911ce31e1b6d2a6b89b3bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10: Investments—Debt Securities — Overall ### Machine-generated study aids ```json { "summary": "ASC 320-10 governs the accounting and reporting for all investments in debt securities (post-ASU 2016-01, equity securities moved to Topic 321). At acquisition an entity must classify each debt security as trading, available-for-sale, or held-to-maturity (320-10-25-1) and document that classification (320-10-25-2); trading and AFS securities are carried at fair value (unrealized gains/losses in earnings and OCI, respectively) while HTM securities are carried at amortized cost (320-10-35-1). The Subtopic's core tension is the restrictive \"positive intent and ability to hold to maturity\" standard, the narrow list of sales/transfers that do not \"taint\" the HTM portfolio, and the required category disclosures.", "key_points": [ "At acquisition, debt securities must be classified as trading, available-for-sale, or held-to-maturity, with AFS as the residual category, and the classification must be documented (320-10-25-1; 320-10-25-2).", "HTM classification requires positive intent and ability to hold to maturity, which is distinct from the mere absence of an intent to sell; securities available to be sold for liquidity, rate changes, tax planning, or asset-liability management, convertible debt, and securities that can be prepaid so the holder would not recover substantially all of its recorded investment cannot be HTM (320-10-25-3 through 25-5).", "Subsequent measurement: trading at fair value with unrealized holding gains and losses in earnings; AFS at fair value with unrealized holding gains and losses in other comprehensive income (except hedged portions under Topic 815); HTM at amortized cost; interest and premium/discount amortization go to earnings for all three (320-10-35-1; 320-10-35-4).", "A sale or transfer of an HTM security for a reason other than those in 320-10-25-6, 25-9, and 25-14 taints the entire HTM portfolio and requires reclassification of remaining HTM securities to available-for-sale in the period of the sale (320-10-35-8 through 35-9).", "Non-tainting events include significant deterioration in issuer creditworthiness, certain tax-law and regulatory changes, a major business combination or disposition, and isolated, nonrecurring, unusual events that could not have been reasonably anticipated; sales near maturity or after collecting at least 85 percent of principal outstanding at acquisition are treated as maturities (320-10-25-6; 320-10-25-9; 320-10-25-14 through 25-15).", "Transfers between categories are recorded at fair value, with specified treatment of unrealized gains/losses and reversal of any existing allowance for credit losses in earnings on HTM-to-AFS and AFS-to-HTM transfers (320-10-35-10; 320-10-35-10A; 320-10-35-10B; 320-10-45-8B).", "Disclosures by major security type (based on nature and risks) include amortized cost basis, aggregate fair value, total allowance for credit losses, gross unrealized gains and losses, and contractual maturity groupings, plus proceeds and gross realized gains/losses from AFS sales and the circumstances of any HTM sale or transfer (320-10-50-1B; 50-2; 50-5; 50-5A; 50-9; 50-10)." ], "categories": [ "Financial instruments", "Subsequent measurement", "Presentation", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exams love the HTM \"tainting\" rules: students often assume any sale before maturity destroys HTM classification, but sales due to the enumerated changes in circumstances, isolated/nonrecurring/unusual events, or sales near maturity or after 85% of principal has been collected are permitted. Also remember that after ASU 2016-01 this Topic covers only debt securities (equity securities are in Topic 321) and credit impairment is now handled in Subtopic 326-20/326-30, not here.", "related_topics": [ "321-10", "323-10", "325-40", "326-30", "310-20", "815-15" ], "key_concepts": [ "held-to-maturity classification", "available-for-sale securities", "trading securities", "positive intent and ability", "tainting the held-to-maturity portfolio", "amortized cost basis", "unrealized holding gains and losses", "retrospective interest method" ] } ``` Source downloaded (UTC): 2026-09-09T23:34:37.849Z to 2026-09-09T23:34:37.849Z Record version: sha256:6d24ea81ab54c9b143936f88119e396a09d0e184220877dc1a72707b1c877c4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/10/#00-status) SEC content: no ##### [320-10-00-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:37.849Z to 2026-09-09T23:34:37.849Z Record version: sha256:f8391ed070cdf974f1a5051e7b46d7f12151d0b645756d2252274cc0dc490d96 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
Amortized Cost BasisAmendedAccounting Standards Update No. 2016-1306/16/2016
Cash EquivalentsAddedAccounting Standards Update No. 2014-0603/14/2014
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Equity Security (1st def.)SupersededAccounting Standards Update No. 2016-0101/05/2016
Holding Gain or LossAmendedAccounting Standards Update No. 2016-1306/16/2016
Public Business EntityAddedAccounting Standards Update No. 2019-0404/25/2019
Readily Determinable Fair ValueSupersededAccounting Standards Update No. 2016-0101/05/2016
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2015-1006/12/2015
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
Recorded InvestmentAmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-05-2AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-1 through 15-5
AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-3AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-15-3AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-15-4AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-15-7AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-7AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-15-7AAddedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-9AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-15-10SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-25-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-25-2AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-25-5AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-25-18AmendedAccounting Standards Update No. 2014-1106/12/2014
320-10-25-20AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-30-1 through 30-4
SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-1AmendedAccounting Standards Update No. 2022-0103/28/2022
320-10-35-1AmendedAccounting Standards Update No. 2017-1208/28/2017
320-10-35-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-2SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-3 through 35-5
AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-10AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-10AAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-10BAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-16AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-17 through 35-24
SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-17AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-18AAddedAccounting Standards Update No. 2022-0103/28/2022
320-10-35-20AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-20AAddedAccounting Standards Update No. 2022-0103/28/2022
320-10-35-24AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-25 through 35-29
SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-30SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-30AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-35-32ASupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-32AAmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-35-33SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-33A through 35-33I
SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-34SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-34A through 35-35ASupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-36AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-35-37SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-38AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-35-43SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-40-1AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-40-2AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-40-2AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-40-3AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-45-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-45-3 through 45-6
SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-45-8AmendedAccounting Standards Update No. 2017-1208/28/2017
320-10-45-8ASupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-45-8BAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-45-9AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-45-9ASupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-45-12AmendedAccounting Standards Update No. 2014-0603/14/2014
320-10-45-13AmendedMaintenance Update 2015-11 (PDF)06/19/2015
320-10-50-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-50-1AAmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-1AAmendedAccounting Standards Update No. 2018-0907/16/2018
320-10-50-2 through 50-3
AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-2AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-50-2AAddedAccounting Standards Update No. 2019-1111/26/2019
320-10-50-3AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-50-4SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-50-5 through 50-5C
AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-5AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-50-5AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-50-5AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-50-5AAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-50-5BAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-50-5CAddedAccounting Standards Update No. 2019-1111/26/2019
320-10-50-6 through 50-8BSupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-50-6AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-50-9AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-10AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-13SupersededAccounting Standards Update No. 2018-0907/16/2018
320-10-55-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-2AmendedAccounting Standards Update No. 2022-0203/31/2022
320-10-55-2AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-4SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-55-5SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-55-6AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-7SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-55-7AmendedAccounting Standards Update No. 2010-0802/02/2010
320-10-55-9AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-17AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-55-21A through 55-23
SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-55-22AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-23AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-23AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-55-24AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-55-25AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-65-1AmendedAccounting Standards Update No. 2009-0207/01/2009
Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:89795b7ce3bc9e95aeb0bcb127c082631ea60e668c65a0a9ed083ecbcce09600 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/10/#05-overview-and-background) SEC content: no ##### [320-10-05-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:af4d9a9f9e6a90277936504ed7f6b13ba09cb21ea76550e3323e94c64a65353d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:8cff249cb9904ac0a97d4fbe5a36aaf130cf851bf523a966ced67c03124f6407 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:a52dba05e8fe5386bc9522a290415391e8d6124529776aed90f6115123e3f688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 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/). Source downloaded (UTC): 2026-09-09T23:34:45.716Z to 2026-09-09T23:34:45.716Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/320/10/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:5bea14e5ee650f2a9638eec274e4f20239443a4958df56d1a63bbc0b21c296d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/10/#25-recognition) SEC content: no #### Classification of Debt Securities ##### [320-10-25-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:7eb431fac6c6a1cca6d059847f7571580f2d509d931eee5697d16d1d4d8936fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At acquisition, an entity shall classify [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.") into one of the following three categories: 1. a [Trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price."). If a [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") is acquired with the intent of selling it within hours or days, the security shall be classified as [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity."). However, at acquisition an entity is not precluded from classifying as trading a security it plans to hold for a longer period. Classification of a security as trading shall not be precluded simply because the entity does not intend to sell it in the near term. 2. b [Available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities."). Investments in debt securities not classified as trading securities or as held-to-maturity securities shall be classified as available-for-sale securities. 3. c Held-to-maturity securities. Investments in debt securities shall be classified as held-to-maturity only if the reporting entity has the positive intent and ability to hold those securities to maturity. ##### [320-10-25-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:01d9e541888b075ebad9e641e6f800d06997f3fa2e2422735dca2bd9e2037fc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At acquisition, an investor shall document the classification of debt securities. #### Restrictions on Classification of a Debt Security as Held-to-Maturity ##### [320-10-25-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:f95d4ba6c9c0aff5f3c5a33f7d6cfbd2d1ee95584d4779b42214a6c00561a3c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amortized cost is relevant only if a security is actually held to maturity. Use of the held-to-maturity category is restrictive because the use of amortized cost must be justified for each investment in a debt security. At acquisition, an entity shall determine if it has the positive intent and ability to hold a security to maturity, which is distinct from the mere absence of an intent to sell. If management's intention to hold a debt security to maturity is uncertain, it is not appropriate to carry that investment at amortized cost. In establishing intent, an entity shall consider pertinent historical experience, such as sales and transfers of debt securities classified as held-to-maturity. A pattern of sales or transfers of those securities is inconsistent with an expressed current intent to hold similar debt securities to maturity. ##### [320-10-25-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:0ca04512c6e5f6d4125495178d6142a21f2115181592cdeabadbadecf7ea0013 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall not classify a debt security as held-to-maturity if the entity has the intent to hold the security for only an indefinite period. Consequently, a debt security shall not, for example, be classified as held-to-maturity if the entity anticipates that the security would be available to be sold in response to any of the following circumstances: 1. a Changes in market interest rates and related changes in the security's prepayment risk 2. b Needs for liquidity (for example, due to the withdrawal of deposits, increased demand for loans, surrender of insurance policies, or payment of insurance claims) 3. c Changes in the availability of and the yield on alternative investments 4. d Changes in funding sources and terms 5. e Changes in foreign currency risk. ##### [320-10-25-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:2fbd8eeb37eebb96b0adaf135253fb17e45352b98ade197487180a28a9a547c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Specific scenarios in which a debt security shall not be classified as held-to-maturity (or where sale or transfer of a held-to-maturity security will call into question an investor's stated intent to hold other debt securities to maturity in the future) are as follows: 1. a A security shall not be classified as held-to-maturity if that security can contractually be prepaid or otherwise settled in such a way that the holder of the security would not recover substantially all of its recorded investment. The justification for using historical-cost-based measurement for debt securities classified as held-to-maturity is that no matter how market interest rates fluctuate, the holder will recover its recorded investment and thus realize no gains or losses when the issuer pays the amount promised at maturity. However, that justification does not extend to receivables purchased at a substantial premium over the amount at which they can be prepaid, and it does not apply to instruments whose payments derive from prepayable receivables but have no principal balance. Therefore, a callable debt security purchased at a significant premium might be precluded from held-to-maturity classification under paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) if it can be prepaid or otherwise settled in such a way that the holder of the security would not recover substantially all of its recorded investment. In addition, a mortgage-backed interest-only certificate shall not be classified as held-to-maturity. Paragraphs [860-20-35-3 through 35-6](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-3) provide further guidance on application of this paragraph. Note that a debt security that is purchased late enough in its life such that, even if it was prepaid, the holder would recover substantially all of its recorded investment, could be initially classified as held-to-maturity if the conditions of this paragraph and paragraph [320-10-25-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-1) are met. (A debt security that can contractually be prepaid or otherwise settled in such a way that the holder of the security would not recover substantially all of its recorded investment may contain an embedded derivative. Therefore, such a security should be evaluated in accordance with Subtopic 815-15 to determine whether it contains an embedded derivative that needs to be accounted for separately.) 2. b A debt security that is available to be sold in response to changes in market interest rates, changes in the security's prepayment risk, the entity's need for liquidity, changes in foreign exchange risk, or other similar factors shall not be included in the held-to-maturity category because the possibility of a sale is indicative that the entity does not have a positive intent and ability to hold the security to maturity. A debt security that is considered available to be sold as part of an entity's asset-liability management activities shall not be classified as held-to-maturity. Similarly, an entity that maintains a dynamic hedging program in which changes in external factors require that certain securities be sold to maintain an effective hedge would not have the intent and ability to hold those securities to maturity. 3. c Securities that may need to be sold to implement tax-planning strategies (for example, to generate taxable gains to offset existing taxable losses—or vice versa—or in response to changes in the entity's anticipated future profitability—for example, if taxable losses were expected for the next several years) should be classified as available-for-sale, not held-to-maturity. 4. d The sale of a held-to-maturity security in advance of any deterioration in the creditworthiness of the issuer, perhaps based solely on industry statistics, will call into question an investor's stated intent to hold other debt securities to maturity in the future. The sale of a held-to-maturity security must be in response to an actual deterioration, not mere speculation. That deterioration shall be supported by evidence about the issuer's creditworthiness; however, the entity need not await an actual downgrading in the issuer's published credit rating or inclusion on a credit watch list. 5. e The sale of held-to-maturity securities to meet regulatory capital requirements will call into question an investor's stated intent to hold other debt securities to maturity in the future. An entity's ability and intent to hold securities to maturity would be called into question by the sale of held-to-maturity securities to realize gains to replenish regulatory capital that had been reduced by a provision for loan losses. Gains trading with held-to-maturity securities to meet an entity's capital requirements is inconsistent with the held-to-maturity notion. 6. f The exercise of a put option on a security classified as held-to-maturity will call into question an investor's stated intent to hold other debt securities to maturity in the future. Furthermore, a puttable debt security might be precluded from held-to-maturity classification pursuant to paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2). 7. g Convertible debt securities shall not be classified as held-to-maturity. Classifying a security as held-to-maturity means that the entity is indifferent to future opportunities to profit from changes in the security's [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.") and intends to accept the debt security's stipulated contractual cash flows, including the repayment of principal at maturity. Convertible debt securities generally bear a lower interest rate because the investor hopes to benefit from appreciation in value of the option embedded in the debt security. Given the unique opportunities for profit embedded in a convertible security, it generally would be contradictory to assert the positive intent and ability to hold a convertible debt security to maturity and forego the opportunity to exercise the conversion feature. The exercise of a conversion feature on a security classified as held-to-maturity will call into question an investor's stated intent to hold other debt securities to maturity in the future. (See Section 815-15-25 for additional guidance. If convertible debt is bifurcated into an equity option and a host debt instrument under the requirements of Subtopic 815-15, it generally still would be contradictory to assert the positive intent and ability to hold the debt host contract to maturity and forego the opportunity to exercise the conversion feature.) 8. h A documented policy to initially classify all debt securities as held-to-maturity but then automatically transfer every security to available-for-sale when it reaches a predetermined point before maturity (for example, every held-to-maturity security will be transferred to available-for-sale 24 months prior to its stated maturity) so that an entity has the flexibility to sell securities is not consistent with the held-to-maturity classification. Under the policy described, the entity does not intend to hold any security to maturity. 9. i An insurance entity or other regulated entity shall not classify securities as held-to-maturity and also indicate to regulators that those securities could be sold to meet liquidity needs in a defined interest rate scenario whose likelihood of occurrence is reasonably possible but not probable. ##### [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:88eddcf654fbd33eed9e1affaf89263b42924c3a0435f2d412e841c4b7bd1d67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following changes in circumstances may cause the entity to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future. The sale or transfer of a held-to-maturity security due to one of the following changes in circumstances shall not be considered inconsistent with its original classification: 1. a Evidence of a significant deterioration in the issuer's creditworthiness (for example, a downgrading of an issuer's published credit rating) 2. b A change in tax law that eliminates or reduces the tax-exempt status of interest on the debt security (but not a change in tax law that revises the marginal tax rates applicable to interest income) 3. c A major business combination or major disposition (such as sale of a [component of an entity](https://asc.understandingaccounting.org/glossary/c/#component-of-an-entity "A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. A component of an entity may be a reportable segment or an operating segment, a reporting unit, a subsidiary, or an asset group.")) that necessitates the sale or transfer of held-to-maturity securities to maintain the entity's existing interest rate risk position or credit risk policy 4. d A change in statutory or regulatory requirements significantly modifying either what constitutes a permissible investment or the maximum level of investments in certain kinds of securities, thereby causing an entity to dispose of a held-to-maturity security 5. e A significant increase by the regulator in the industry's capital requirements that causes the entity to downsize by selling held-to-maturity securities 6. f A significant increase in the risk weights of debt securities used for regulatory risk-based capital purposes. ##### [320-10-25-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:0256e9afa292bf94c1fbb47d475f86615e012af0116fe02e653b248e78fbd5d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is not appropriate to analogize to the exceptions specified in (a) through (f) in the preceding paragraph. ##### [320-10-25-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:7b48bf338dce1c531be6e39952e4d7421e884e8e978dc93af08768bb959535d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a regulator directs a particular institution (rather than all institutions supervised by that regulator) to sell or transfer held-to-maturity securities (for example, to increase liquid assets), those sales or transfers are not consistent with paragraph [320-10-25-6(d)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), which describes a change in regulations applicable to all entities affected by the legislation or regulator enacting the change. (The same is true of paragraph [320-10-25-6(e) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6).) However, it is possible that the circumstances causing a regulator to direct an institution to sell securities could be considered an event that is isolated, nonrecurring, and unusual that could not have been reasonably anticipated as described in the following paragraph and paragraph [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6). ##### [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:51363061e8fa7eb672a6fb28e3c036530fbeee49a473fbf873aa3bedba1e3e04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the changes in circumstances listed in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), certain other events may cause the entity to sell or transfer a held-to-maturity security without necessarily calling into question (tainting) its intent to hold other debt securities to maturity. Such events must meet all of the following four conditions to avoid tainting its intent to hold other debt securities to maturity in the future: 1. a The event is isolated. 2. b The event is nonrecurring. 3. c The event is unusual for the reporting entity. 4. d The event could not have been reasonably anticipated. ##### [320-10-25-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:e49a53ec31a7e8faff258c27057b43e7cd206ef25f3239bd34a4a28430863576 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other than extremely remote disaster scenarios (such as a run on a bank or an insurance entity), very few events would meet all four of those conditions. ##### [320-10-25-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:edb039d3781ed34d9b8b4f999ff3f29c46a365732f767aa2f5dfd2a14a5225d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Extremely remote disaster scenarios shall not be anticipated by an entity in deciding whether it has the positive intent and ability to hold a debt security to maturity. ##### [320-10-25-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:3e8563fedf8ca21b783f1aa722c3cb070f4b7e6ca64c6a8c775020126ecccf0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. With respect to the discussion in paragraph [320-10-25-6(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) about a major business combination or a major disposition, this Subtopic does not specify a quantitative threshold for a major business combination or disposition. Examples of transactions that would qualify for the exception in paragraph [320-10-25-6(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) are as follows: 1. a Sales of held-to-maturity securities only when the combination or disposition necessitates the sale or transfer of held-to-maturity securities to maintain the entity's existing interest rate risk position or credit risk policy. Necessary transfers or sales shall occur concurrent with or shortly after the business combination or disposition. This Subtopic does not define shortly. As time passes, however, it is increasingly difficult to demonstrate that the business combination, and not other events or circumstances, necessitated the transfer or sale of held-to-maturity securities. 2. b A sale of a component of an entity is an example of a major disposition. ##### [320-10-25-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:78f526f9f6d5cb8ddf42539cf479568f1752c9b0963496fd408cfadf69254bca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of transactions that would not qualify for the exception in paragraph [320-10-25-6(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) are as follows: 1. a A purchase or sale of a large pool of financial assets (for example, conforming mortgages) or liabilities (for example, deposit liabilities) (which would not be considered a major business combination or disposition) 2. b Sales of held-to-maturity securities to fund an acquisition (or a disposition, for example, if deposit liabilities are being assumed by the other party) 3. c Sales of held-to-maturity securities in anticipation of or otherwise before a major business combination or disposition 4. d A sale of held-to-maturity securities in response to an unsolicited tender offer from the issuer (which also is not an event that is isolated, nonrecurring, and unusual that could not have been reasonably anticipated). ##### [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:8dd83ad9451acb2b1d27641beb919150ca06d987f6ccb3f259f3c7d5192fa887 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Sales of debt securities that meet either of the following conditions may be considered as maturities for purposes of the classification of securities and the disclosure requirements under this Subtopic: 1. a The sale of a security occurs near enough to its maturity date (or call date if exercise of the call is probable) that interest rate risk is substantially eliminated as a pricing factor. That is, the date of sale is so near the maturity or call date (for example, within three months) that changes in market interest rates would not have a significant effect on the security's fair value. 2. b The sale of a security occurs after the entity has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition due either to prepayments on the debt security or to scheduled payments on a debt security payable in equal installments (both principal and interest) over its term. For variable-rate securities, the scheduled payments need not be equal. ##### [320-10-25-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:c55ef7d6a4591b22a087356a9c83dcbcb627d8907ae4899cc4eae7243cb9248d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Selling a debt security after a substantial portion of the principal has been collected shall be considered equivalent to holding the security to maturity. The collection of 85 percent of the principal outstanding at acquisition (not the principal outstanding at issuance for securities purchased in the secondary market) constitutes a reasonable threshold of what represents a substantial portion of the principal. ##### [320-10-25-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:d5f88ec1ce54a5f1a228ba5f98e63dad5e1330f200e0d1185cf8233425208fa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The limited practical exception in the preceding paragraph applies to both of the following: 1. a Debt securities that are payable in equal installments that comprise both principal and interest, such as certain level-payment mortgage-backed securities. For example, many banks routinely sell their investments in mortgage-backed securities after a substantial portion of the principal has been recovered through prepayments. The tail portion of a mortgage-backed security is sold because it no longer represents an efficient investment to the entity mainly due to the economic costs of accounting for remnants of the original issue. 2. b Variable-rate debt securities when the scheduled payments would be payable in equal installments absent a change in interest rates. ##### [320-10-25-17](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:20357a63846b84cdde4e92b7a55c9703809f3d49ae09f97346f7640582675569 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is not appropriate to apply the limited practical exception in paragraph [320-10-25-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-15) by analogy to a debt security that has a contractual payment schedule of level principal payments plus interest that accrues based on the declining outstanding principal balance; the payments on that type of security do not represent equal installments that are made up of both principal and interest. ##### [320-10-25-18](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:761a3181e151378de5aab056e9cdfe5037a48d3ffdd4b5f058baae69b6b0b5ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Specific scenarios in which a debt security may be classified as held to maturity (or where sale or transfer of a held-to-maturity security will not call into question an investor's stated intent to hold other debt securities to maturity in the future) are as follows: 1. a Although its asset-liability management may encompass consideration of the maturity and repricing characteristics of all investments in debt securities, an entity may decide that it can accomplish the necessary adjustments under its asset-liability management without having all of its debt securities available for disposition. In that case, the entity may choose to designate certain debt securities as unavailable to be sold to accomplish those ongoing adjustments deemed necessary under its asset-liability management, thereby enabling those debt securities to be accounted for at amortized cost on the basis of a positive intent and ability to hold them to maturity. 2. b The sale of one or more held-to-maturity securities if an entity chooses to downsize to comply with a significant increase in the industry's capital requirements would not call into question the classification of other held-to-maturity securities. 3. c In some circumstances it may not be possible to hold a security to its original stated maturity, such as when the security is called by the issuer before maturity. The issuer's exercise of the call option effectively accelerates the security's maturity and shall not be viewed as inconsistent with classification in the held-to-maturity category. 4. d A puttable debt security shall be classified as held-to-maturity only if the entity has the positive intent and ability to hold it to maturity. 5. e If a transfer of a held-to-maturity debt security is accounted for as a sale under Subtopic 860-20 and it is transferred for a reason other than those specified in paragraphs [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9), and [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14), then the transfer would taint the held-to-maturity portfolio. However, if the transfer is accounted for as a secured borrowing, then the transfer would not taint the held-to-maturity portfolio. Transactions involving held-to-maturity securities that are not accounted for as sales under Subtopic 860-20 would not contradict an entity's stated intent to hold a security to maturity and, therefore, do not call into question the entity's intent to hold other debt securities to maturity. Examples of such transactions are as follows: 1. 1 Held-to-maturity securities pledged as collateral, provided that the transaction is not accounted for as a sale under Subtopic 860-20 and the entity intends and expects to be able to satisfy the obligation and recover access to its collateral 2. 2 Held-to-maturity securities subject to a repurchase agreement or a securities lending agreement, provided that the transaction is accounted for as a secured borrowing under Subtopic 860-20 and the entity intends and expects to be able to repay the borrowing 3. 3 Beneficial interests classified as held-to-maturity that are desecuritized in a transaction that is not accounted for as a sale if the financial assets received in or that continue to be held after the desecuritization are held to maturity. Unless the debt instrument received or retained as a result of the transaction is held to maturity, the transaction would call into question the entity's intent to hold other debt securities to maturity. Desecuritizations are not specifically included within the scope of this paragraph. Nevertheless, that guidance is also appropriate for desecuritizations that are not accounted for as sales. #### Combinations of Structured Notes ##### [320-10-25-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:19c28c22fbd6c01fe8d4087c4b2b777709467e316c59cdab21ef2c719161e9d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance discusses a specific type of transaction in which [structured note](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes.") securities are issued in combination with other structured note securities as a unit or a pair for the purpose of achieving a certain strategic investment result for the investor. One strategy involves the purchase of two structured notes with opposite interest rate reset provisions. Under that strategy, the fixed coupon rate or maturity date for each structured note would be determined shortly after issuance depending on movements in market interest rates. Following that reset date, the resulting yields on each of the structured note securities will move in opposite directions; however, the average yield of the two securities will generally reflect the market yield of the combined instruments in effect on the issuance date. See Example 2 (paragraph [320-10-55-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-20)) for a common example of this strategy and of how the structured note transactions can be used to achieve one of many desired accounting results. ##### [320-10-25-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:0808d9f39af147f25bb6c06e58ccd08d9914c0fdf26afad304f7324f307d8475 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If structured notes are acquired for the type of specified investment strategy described in paragraph [320-10-25-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19), then the investor shall account for the two structured note securities as a unit until one of the securities is sold, at which time the notes shall be measured in the same way as a participating interest in paragraph [860-20-40-1A](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-1A). Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:27d862ad46edc52664684f13660cc941fb5ce2eb37dabc1edf4e592952731b41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/320/10/#30-initial-measurement) SEC content: no ##### [320-10-30-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:98f4d0421ec72afd14ce83ec6c9987a0566e4f7d6bdd85b3a916dfce2fb86075 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-30-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:020ab6306d41f3237b6088d832c8805d0585e662109bacb1f81df39d3a6834ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-30-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:afd9b19be4819fea0bc06ee6064287d1aef410e94fedfc2f9fc7f5d6f564223d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-30-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:ab93a6ab34c8507886440350637ad098c15178ce235bd6c66e0a2f7db321577d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:2420452aa1fac6e40d7fcf6a9175cd1c6c479815eb39dc9ffa843d45f924f711 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/10/#35-subsequent-measurement) SEC content: no ##### [320-10-35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:0ad7072741853dbe589be11e0074e55db6d42c4a558a87d5cbd9479038b7ecf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.") shall be measured subsequently as follows: 1. a [Trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price."). Investments in debt securities that are classified as [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity.") shall be measured subsequently 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.") in the statement of financial position. Unrealized [holding gains and losses](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") for trading securities shall be included in earnings. 2. b [Available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities."). Investments in debt securities that are classified as available for sale shall be measured subsequently at fair value in the statement of financial position. Unrealized holding gains and losses for available-for-sale securities (including those classified as current assets) shall be excluded from earnings and reported in other comprehensive income until realized except as indicated in the following sentences.All or a portion of the unrealized holding gain and loss of an available-for-sale security that is designated as being hedged in a fair value hedge that is not a portfolio layer method hedge shall be recognized in earnings during the period of the hedge, pursuant to paragraphs [815-25-35-1(b)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1), [815-25-35-4](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-4), and [815-25-35-6](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-6). The portion of the unrealized holding gain and loss of a closed portfolio that includes an available-for-sale security or securities that is designated as being hedged in a portfolio layer method hedge pursuant to paragraph [815-20-25-12A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-12A) shall be recognized in earnings during the period of the hedge pursuant to paragraphs [815-25-35-1(c)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1), [815-25-35-4](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-4), and [815-25-35-6](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-6). 3. c Held-to-maturity securities. Investments in debt securities classified as held to maturity shall be measured subsequently at amortized cost in the statement of financial position. A transaction gain or loss on a held-to-maturity foreign-currency-denominated debt security shall be accounted for pursuant to Subtopic 830-20. ##### [320-10-35-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:9fcb820f20b18115227a9644fff5f667e8a7f237d46488e9fa907e34f4a79b4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:92c73b7f16bfcf5f978bf620d55aed93ee996ee54f291987f137b6eaa3a7b639 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [323-10-35-23 through 35-26](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-23) identify circumstances in which an entity must adjust the basis of its investment in debt securities of an equity method investee for the amount of an equity method loss based on the investment's seniority. For investments accounted for in accordance with this Subtopic, the adjusted basis resulting from the application of paragraphs [323-10-35-23 through 35-26](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-23) becomes the debt security's basis from which subsequent changes in fair value are measured. ##### [320-10-35-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:df074a10f170be0e70ffa5259adb6342d25538b12279fe07fc2410af756b1f8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all three categories of investments in debt securities shall be included in earnings. #### Reassessment of Classification ##### [320-10-35-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:b73d1e2b08fd62f495bdaec8c5079ac1104e1b770c90c9a81862c05bde0d2cf1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At each reporting date, the appropriateness of the classification of an entity's investments in debt securities shall be reassessed. For example, if an entity no longer has the ability to hold debt securities to maturity, their continued classification as held-to-maturity would not be appropriate. ##### [320-10-35-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:31b5d8a77b1f75e7b7151d153b59f580036b5571211bb8143fa370bcdefb3bb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because an entity is expected not to change its intent about a held-to-maturity security, the requirement to reassess the appropriateness of a security's classification focuses on the entity's ability to hold a security to maturity. The preceding paragraph acknowledges that facts and circumstances can change; for example, an entity can lose the ability to hold a debt security to maturity. However, that acknowledgment in no way diminishes the restrictive nature of the held-to-maturity category. ##### [320-10-35-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:7f1f2fef33b27d100b17de6dd0457408e065ae187ee1582bd755dda306040494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After securities are reclassified to available-for-sale in response to a taint, judgment is required in determining when circumstances have changed such that management can assert with a greater degree of credibility that it now has the intent and ability to hold debt securities to maturity. ##### [320-10-35-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:bc900bcffe68a240ae8052dc56bad41a16449120062968e7aff03b6217d3b950 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A sale or transfer of a security classified as held-to-maturity that occurs for a reason other than those specified in paragraphs [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9), and [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14), calls into question (taints) the entity's intent about all securities that remain in the held-to-maturity category. The entity makes the same assertion about all debt securities in the held-to-maturity category—namely, that it has the positive intent and ability to hold each security to maturity. Only a sale or transfer in response to certain changes in conditions will not call into question an entity's intent to hold other debt securities to maturity in the future. ##### [320-10-35-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8c39941011f4e9d980cba7095fb86ab75203c0b56d77080071bfd3c798a57f5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a sale or transfer of held-to-maturity securities represents a material contradiction with the entity's stated intent to hold those securities to maturity or when a pattern of such sales has occurred, any remaining held-to-maturity securities shall be reclassified to available-for-sale. The reclassification shall be recorded in the reporting period in which the sale or transfer occurred and accounted for as a transfer under the following paragraph. ##### [320-10-35-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:29ef38c18f8fd95c585efcc7509fed1ee721e65edecd38c8d48186929ed1e298 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers of a debt security from or into the trading category shall be accounted for at fair value. At the date of the transfer, the security's unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") shall be accounted for as follows: 1. a For a security transferred from the trading category, the unrealized holding gain or loss at the date of the transfer will have already been recognized in earnings and shall not be reversed. 2. b For a security transferred into the trading category, the portion of the unrealized holding gain or loss at the date of the transfer that has not been previously recognized in earnings shall be recognized in earnings immediately. 3. c [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). ##### [320-10-35-10A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:116ac4b9c9b72ec236419f36b31b8839bed4e58f729b24e99910853c9d9776ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a debt security that is transferred into the available-for-sale category from the held-to-maturity category, an entity shall: 1. a Reverse in earnings any allowance for credit losses previously recorded on the held-to-maturity debt security at the transfer date 2. b Reclassify and transfer the debt security to the available-for-sale category at its [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") (which is reduced by any previous writeoffs but excludes any allowance for credit losses) 3. c Determine if an allowance for credit losses is necessary by following the guidance in Subtopic 326-30 4. d Report in other comprehensive income any unrealized gain or loss on the available-for-sale debt security at the date of transfer, excluding the amount recorded in the allowance for credit losses in accordance with paragraph (c) 5. e Consider whether the transfer of a debt security from the held-to-maturity category to the available-for-sale category calls into question the entity's intent and ability to hold securities that remain in the held-to-maturity category to maturity in accordance with paragraphs [320-10-35-8 through 35-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-8) . ##### [320-10-35-10B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10B) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:6cb6b2c3df59fbcf4cf72d8e1fd60c19b3caaeb5b5010429648bf1b3cfc1e7ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a debt security that is transferred into the held-to-maturity category from the available-for-sale category, an entity shall: 1. a Reverse in earnings any allowance for credit losses previously recorded on the available-for-sale debt security at the transfer date 2. b Reclassify and transfer the debt security to the held-to-maturity category at its amortized cost basis (which is reduced by any previous writeoffs but excludes any allowance for credit losses) plus or minus the amount of any remaining unrealized holding gain or loss reported in accumulated other comprehensive income 3. c Evaluate the debt security for an allowance for credit losses by following the guidance in Subtopic 326-20 4. d Continue to report the unrealized holding gain or loss at the date of the transfer in a separate component of shareholders' equity, such as accumulated other comprehensive income, but that gain or loss shall be amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. The amortization of an unrealized holding gain or loss reported in equity will offset or mitigate the effect on interest income of the amortization of the premium or discount (discussed in the following sentence) for that held-to-maturity security. For a debt security transferred into the held-to-maturity category, the transfer may create a premium or discount that, under amortized cost accounting, shall be amortized thereafter as an adjustment of yield in accordance with Subtopic 310-20 on receivables—nonrefundable fees and other costs. ##### [320-10-35-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:9250a7e265c90929a0cc491a9a501cfbb6d374c354bf2cec673c49dcad6d0d97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers from the held-to-maturity category should be rare, except for transfers due to the changes in circumstances identified in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6). ##### [320-10-35-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:212d7a00bb2fae246b7586adc18786cd827fd79ee84e79e0e8762ee82a8b9fb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, given the nature of a trading security, transfers into or from the trading category also should be rare. ##### [320-10-35-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:f409912af2c88e81fb6f2a70066061a5bd9c645a8585fb160b5eaf1c6d106e1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Available-for-sale securities shall not be automatically transferred to the trading category because the passage of time has caused the maturity date to be within one year or because management intends to sell the security within one year. Similarly, if an entity plans to sell a security from the held-to-maturity category in response to one of the conditions in paragraphs [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) and [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9), the security shall not be automatically reclassified to available-for-sale or trading before the sale. ##### [320-10-35-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8cad66ba0f793e2e6a24944bd2121cc5e305bee7f48cd3f92ca242183bd21568 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [860-10-55-75](https://asc.understandingaccounting.org/asc/860/10/#860-10-55-75) gives an Example addressing whether a transferor has the option to classify debt securities as trading at the time of a transfer. ##### [320-10-35-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e519156b3321f318f121b87470a5a48bb100bd48c75b044a0eb0e6cd5e0eec80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a security is transferred from held-to-maturity to available-for-sale, the security's [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") carries over to the available-for-sale category for all of the following purposes: 1. a The subsequent amortization of the historical premium or discount 2. b The comparisons of fair value and amortized cost for the purpose of determining unrealized holding gains and losses under paragraph [320-10-35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) 3. c The required disclosures of amortized cost. ##### [320-10-35-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:d00e25daa40e0f197d0cc4b67343c53b545f9101b75e8c8431567629d5cab9ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a security is transferred from available-for-sale to held-to-maturity, the transfer may create a premium or discount that, under amortized cost accounting, shall be amortized as a yield adjustment in accordance with Subtopic 310-20. The security's amortized cost basis is determined as the amortized cost basis at the transfer date (which is reduced by any previous writeoffs but excludes any allowance for credit losses) plus or minus the amount of any remaining unrealized holding gain or loss reported in accumulated other comprehensive income. #### Impairment of Individual Available-for-Sale and Held-to-Maturity Debt Securities ##### [320-10-35-17](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:23824cc79b92c6ce888dd38e78395be62b47db87e2b2dcb0422bb8ffbb9a1c27 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/). ##### [320-10-35-18](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:1d005e554ff95f0fd1543a77e82fe10e58fa2be14f3d8da2e96a307fd1eed11a 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/). ##### [320-10-35-18A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-18A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:0ba676344cbc15ce8713cba9de4f01e55d2c9c7ffcb530b871e6dda39d1fc128 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall not consider a basis adjustment related to an existing portfolio layer method hedge designated in accordance with paragraph [815-20-25-12A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-12A) in either of the following situations: 1. a When determining whether a decline in fair value below the amortized cost basis of a security is other than temporary 2. b If measuring impairment of the individual investments or individual beneficial interest included in a closed portfolio hedged using the portfolio layer method. ##### [320-10-35-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:faca67a9751fa3224bd94fc8a89f4ec7fb3085bc26c6a94a97a5d0b05cddac04 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/). ##### [320-10-35-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e7634d1a5feb303d5b980145709bf692485c2e1edafcab3e11992f2dfc4e7d86 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/). ##### [320-10-35-20A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-20A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8680c2c67131f897f5ad28facc2108fdab0c15cf65bdd4af4bb92a40ef04b43f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the individual securities or individual beneficial interest in a closed portfolio hedged using the portfolio layer method, the impairment assessment performed at the individual security level shall not consider the basis adjustment related to an existing portfolio layer method hedge. ##### [320-10-35-21](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:ba6666d12e3de87230dcca46b779c48fb166d5342cfe53de440f3cd95c5adbb9 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/). ##### [320-10-35-22](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:878a22d6a4fa25abbf01d03d3bf4da9f1d9c5f61c2eb7440cdbc5e8b683c6e13 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/). ##### [320-10-35-23](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:6e9d858bdb0fb06ce3137cca458daf85e019e505e50ce6a0060594e5e4efd0e4 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/). ##### [320-10-35-24](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:eee20847ab3e265b0181e56ae4048dd3ee90813ff723ca7847b1dc5497829d03 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/). ##### [320-10-35-25](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:42afe355ff4064c3bbdb77b34a74117eab5738017d45be087c191aa108d850ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-26](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:5cf873aa0d39958d72221a07fbd3199fb702725602c159ca7bc980cdd395e286 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-27](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:04c7936e89e28585da3c15612dbc351a2afe021e11fde44678b100b7a4a1656f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-28](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:18cded89282525af2ac999b62166be20492e96d7b5e280966843034b002b4e1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-29](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8dd899f5a4f5233553211ef1539d3cc668e64c15cd99ca07f16cb64b15e91863 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-30](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:7f3cc9df224a4552142f8b4f41f6bf022d0321dfbb6ddb84084c21a7f153370f 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/). ##### [320-10-35-31](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:40a7477e0d641a3ef007e4eef9200bd107fdfa0cdac886b231ab645ad3c8c72f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [320-10-35-32](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e64fd42d70be704717336ec84ed4385fe261eb77931096c0e1b88423bef3522c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [320-10-35-32A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-32A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:1803105d11bc232a3a57b73c7c690c6de879d2b1bd144572d140f656520f58b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-33](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:15484dadace92187bc77b9049a7165ab15513086084a2d1b9c3b1695ef11978e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-33A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:f4b727ab8ee7bd30d12c2826959b186c88a84d57d94f2376ffd6fb8d3d4d1c5e 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/). ##### [320-10-35-33B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33B) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:808e869b6fe613bca3e839854a5cdee8f665de4f10da40887cd040a8138e3347 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/). ##### [320-10-35-33C](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33C) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:c6cc21a33aef3bb1b4a23b8abd41c6e62ad1e4c703a849e6ad0cb2a578aab36f 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/). ##### [320-10-35-33D](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33D) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:5539127734ac99675902c8304e7f51c28f0994448bf2b2dd487daec6d3a06e6f 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/). ##### [320-10-35-33E](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33E) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:3a4c25e40590766f773cab234e9d6fb21145be3413f46d476e7e35150d8c3bff 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/). ##### [320-10-35-33F](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33F) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e2994e6fbc2b648d981ae2220a39f503632a64a095b769617abedae79b96be32 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/). ##### [320-10-35-33G](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33G) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8abadc9b0f837e43c1122d644827b1143d7ebb4fa7212650dc3aa7693b2b736f 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/). ##### [320-10-35-33H](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33H) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fb83a41f16786d96f996283e6f9e783b6ff856c40ad69784f8c6975e80b09079 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/). ##### [320-10-35-33I](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33I) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fff318a0433fdc857dd285c02e3019802399567a319497be4adbcd69f24026c6 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/). ##### [320-10-35-34](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:1cb1ff61b89f56329990bda3e07af525390f78722c824ad01d283756efdf74ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-34A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:5b860b81c3d5357fb44dd8725637a4e7be1867ae7fcb165df34e4bfcb78f05d0 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/). ##### [320-10-35-34B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34B) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fe1976e3931dde2f9dfb53a747accc752a4bff1077ae06e35291d5ebb127b01d 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/). ##### [320-10-35-34C](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34C) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e8b798d70b6291c5d7fc19a847115583a69e258bcbdd4309a948ee21b08f3b24 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/). ##### [320-10-35-34D](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34D) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:0cbc8515814d577ac97d8d1179c8aa7a33ca8d93864ff749ad13d31d19bb4b7a 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/). ##### [320-10-35-34E](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34E) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:12ea2998730434a740c1d6523c63eab7d9a09b3f62bf572e7846eaeeec0d07e8 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/). ##### [320-10-35-35](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:84833cb634fc36242e52001db89be1f53e30b473bd49c48ebb92c334e27c1d25 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/). ##### [320-10-35-35A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-35A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:672951f1749526acdbae29455ce04f86a8491d186434d66e2ab67864953db0e1 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/). #### Fair Value Changes of Foreign-Currency-Denominated Available-for-Sale Debt Securities ##### [320-10-35-36](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:6dc7fd28b5e8b25b71ccbd52071f7790c1c3277d0a5350b7d0fc8d484854714d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The change in the fair value of foreign-currency-denominated available-for-sale debt securities, excluding the amount recorded in the allowance for credit losses, shall be reported in other comprehensive income. See Subtopic 326-30 for measuring credit losses on available-for-sale debt securities. In accordance with the guidance in Subtopic 326-30, an entity shall report credit losses on available-for-sale debt securities in the statement of financial performance as credit loss expense. ##### [320-10-35-37](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fb66108eadab1213b005a7701ace00265682fc27ab35c4bd128cbda8033ef549 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/). #### Income Recognition for Certain Structured Notes ##### [320-10-35-38](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:7b6791ae3ebb01db86bb47766d8e87133f5696c58528764d7f5d4e1430de13e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the accounting for certain structured notes that are in the form of debt securities, but does not apply to any of the following: 1. a Mortgage loans or other similar debt instruments that do not meet the definition of a security under this Subtopic 2. b Traditional convertible bonds that are convertible into the stock of the issuer 3. c Multicurrency debt securities 4. d Debt securities classified as trading 5. e [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 6. f Debt securities participating directly in the results of an issuer's operations (for example, participating mortgages or similar instruments) 7. g Reverse mortgages 8. h [Structured note](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes.") securities that, by their terms, suggest that it is reasonably possible that the entity could lose all or substantially all of its original investment amount (for other than failure of the borrower to pay the contractual amounts due). (Such securities shall be subsequently measured at fair value with all changes in fair value reported in earnings.) Also, this guidance shall be applied to those beneficial interests involving securitized financial assets that do not involve contractual cash flows. ##### [320-10-35-39](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:eafeebc17dc3dd0e48e213214498784c3e75f7f4a1aae973877f44e71bbb2750 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance does not address the issuer's accounting for structured note securities. ##### [320-10-35-40](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:4fee889ffeb68807dc40deb8bf861825c8b41f90c911f3d3eaad6bbd94bed5b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities shall use the [retrospective interest method](https://asc.understandingaccounting.org/glossary/r/#retrospective-interest-method "A method of interest income recognition under which income for the current period is measured as the difference between the amortized cost at the end of the period and the amortized cost at the beginning of the period, plus any cash received during the period.") for recognizing income on structured note securities that are classified as available-for-sale or held-to-maturity debt securities and that meet any of the following conditions: 1. a Either the contractual principal amount of the note to be paid at maturity or the original investment amount is at risk (for other than failure of the borrower to pay the contractual amounts due). Examples include principal-indexed notes that base principal repayment on movements in the Standard & Poor's S&P 500 Index or notes that base principal repayment on the occurrence of certain events or circumstances. 2. b The note's return on investment is subject to variability (other than due to credit rating changes of the borrower) because of either of the following: 1. 1 There is no stated coupon rate or the stated coupon is not fixed or prespecified, and the variation in the return on investment or coupon rate is not a constant percentage of, or in the same direction as, changes in market-based interest rates or interest rate index, for example, the London Interbank Offered Rate (LIBOR) or the U.S. Treasury Bill Index. 2. 2 The variable or fixed coupon rate is below market rates of interest for traditional notes of comparable maturity and a portion of the potential yield (for example, upside potential for principal) is based on the occurrence of future events or circumstances. (Examples of instruments that meet this condition include inverse floating-rate notes, dual-index floating notes, and equity-linked bear notes.) 3. c The contractual maturity of the bond is based on a specific index or on the occurrence of specific events or circumstances outside the control of the parties to the transaction, excluding the passage of time or events that result in normal covenant violations. Examples of instruments that meet this condition include index amortizing notes and notes that base contractual maturity on the price of oil. ##### [320-10-35-41](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fb36d417fd1a5737a1d8009742353cb6dd6a0148795bf21f100e5d62173ef526 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the retrospective interest method, the income recognized for a reporting period would be measured as the difference between the amortized cost of the security at the end of the period and the amortized cost at the beginning of the period, plus any cash received during the period. The amortized cost would be calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flow streams to the initial investment. If the effective yield is negative (that is, the sum of the newly estimated undiscounted cash flows is less than the security's amortized cost), the amortized cost would be calculated using a zero percent effective yield. Example 1 (see paragraph [320-10-55-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-16)) illustrates the application of the retrospective interest method. ##### [320-10-35-42](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:b22ee95ede7e50135a8e96f4343b38d33532b0b4216951013f1c2d5030c4a526 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of determining the effective yield at which income will be recognized, all estimates of future cash flows shall be based on quoted forward market rates or prices in active markets, when available; otherwise, they shall be based on current spot rates or prices as of the reporting date. ##### [320-10-35-43](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-43) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:bb9222d22b4e2086c5933d2c93c469c0049269b02f21ec516d7fac662e6002ce 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/). Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:0aaf48bb819d9ce663b48c0dc6cb7739e665c7513afdb7e05ad67d61c913e877 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/320/10/#40-derecognition) SEC content: no #### Accounting for Sales of Securities ##### [320-10-40-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:6b22e0abca3b643096b1ec0d943927fc08cb547cd35650674052ca90b57073cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 860-10-40 provides guidance on determining whether a transfer of [securities](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") shall be accounted for as a sale. With respect to [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price."), because all changes in a trading security's [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.") are reported in earnings as they occur, the sale of a trading security does not necessarily give rise to a gain or loss. Generally, a debit to cash (or trade date receivable) is recorded for the sales proceeds, and a credit is recorded to remove the security at its fair value (or sales price). If the entity is not taxed on the changes in fair value, the deferred tax accounts would be adjusted. Some adjustment to this procedure will be necessary for entities that have not yet recorded the security's change in fair value up to the point of sale (perhaps because fair value changes are recorded at the end of each day). ##### [320-10-40-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:f4432ec051f3bdd51612b1db9c0546a52ff3b1a65ea5d4aec0150880f6010d20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although entities have different bookkeeping methods for [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities."), generally, a sale of an available-for-sale security shall be recorded by a debit to cash (or trade date receivable) for the sales proceeds, and a credit to remove the security at its fair value (or sales price). The amount recorded in other comprehensive income, representing the unrealized gain or loss at the date of sale, is reversed into earnings, and the deferred tax accounts are adjusted. Some adjustment to this procedure will be necessary for entities that have not yet recorded the security's change in fair value up to the point of sale (perhaps because fair value changes are recorded at the end of each interim period) or when write-downs have been recognized. #### Sales of Combinations of Structured Notes ##### [320-10-40-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-40-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:228000c6876b3bcefabadfff86e50bdaba6e23e81e96615d9ffccc331b611bee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As discussed in paragraph [320-10-25-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-20), if [structured notes](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes.") are acquired for the type of specified investment strategy described in paragraph [320-10-25-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19), then the investor should account for the two structured note securities as a unit until one of the securities is sold, at which time the notes shall be measured in the same way as a participating interest in paragraph [860-20-40-1A](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-1A). Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:613affa6bb67572b6c9ade251a22fe3bd7d2bfbf653dc60496c4ef77cbb7bf88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/10/#45-other-presentation-matters) SEC content: no #### Balance Sheet Classification ##### [320-10-45-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f145d19f8c11cc9998683d8dfe4e7840178e1d4d660dffe7132eb2529b002326 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall report its investments in [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") and [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.") separately from similar assets that are subsequently measured using another measurement attribute on the face of the statement of financial position. To accomplish that, an entity shall do either of the following: 1. a Present the aggregate of those [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.") and non-fair-value amounts in the same line item and parenthetically disclose the amount of fair value included in the aggregate amount 2. b Present two separate line items to display the fair value and non-fair-value carrying amounts. Entities also shall refer to the guidance in paragraph [825-10-45-1A](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-1A) on disaggregation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables). ##### [320-10-45-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:68f72fe8453c2286fb10c67126285218be5d9a2965a35cf11c95030da4dc3940 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that presents a classified statement of financial position shall report individual held-to-maturity securities, individual available-for-sale securities, and individual trading securities as either current or noncurrent, as appropriate, under the guidance of Section 210-10-45. ##### [320-10-45-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f6c4e90c9901c42a59946a3798827c3551dada2f0405f3f8c354c9da5bc049b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-45-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f1c7e7e23b467a9bc2e42868d57dc9197ba2440e3ea554aec6c35acca718b1e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-45-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:27fe8cb478983edc9db58c7627cf24206c7d4575d185a07137092f2f106e3eac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-45-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:3e7af222bc687e2684ef16fdd8e26d9b1ed7a939769ae569f26d11c9c3620d86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Income Statement Classification ##### [320-10-45-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:e3816924e470948eee2f7a840ce6cc8f5ba46c2f7ca98e05155e183085c3efbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not specify the income statement classification of gains and losses for transfers involving trading securities. However, gains and losses that have accumulated before the transfer shall be classified consistently with realized gains and losses for the category from which the [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") is being transferred, not the category into which the security is being transferred. ##### [320-10-45-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f0d24a94b36cad9a92f4961c58ef18ed8f43897b2cb14a7004d766410d40226e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [320-10-35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) explains that all or a portion of the unrealized holding gain and loss of an available-for-sale security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge, pursuant to paragraphs [815-25-35-1](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1) and [815-25-35-4](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-4). ##### [320-10-45-8A](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:d7eaa22d48828e42b066c9129ae72f1d39be288e28b683da2591099607427163 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/). ##### [320-10-45-8B](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8B) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:fa7c505b57329dae0c7570fb3cc5b8cba615e0fe35e8e81eb69a8e88330be2e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present the amounts reversed or established for the allowance for credit losses related to the transfer of debt securities between categories (see paragraphs [320-10-35-10A through 35-10B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10A) ) on a gross basis in the income statement. An entity may present those amounts on the income statement or in the notes to financial statements, if applicable. #### Other Comprehensive Income ##### [320-10-45-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:ad597c0ddf3efd185a96d5744cf56884d077afd19dd9efa0be714ab5dffa249f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent increases or decreases in the fair value of available-for-sale securities that do not result in recognition or reversal of an allowance for credit loss or write-down in accordance with Subtopic 326-30 on measuring credit losses on available-for-sale debt securities shall be included in other comprehensive income pursuant to paragraphs [320-10-35-1(b)](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) and [320-10-45-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8). ##### [320-10-45-9A](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-9A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:56f556b018db8ed2f81d40a8db9fcf8f7268148215069c1ee9f04c1d418946c7 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/). ##### [320-10-45-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:c0542cef62309f77acec6844be73121e34be194999f9c576822809cbff48077c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11) provides guidance on reporting the tax effects of unrealized holding gains and losses reported in other comprehensive income. #### Cash Flow Presentation ##### [320-10-45-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:fa2599782514da2d47db254b4d280f56645a849ad2e13f8182ff15939a5e6298 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash flows from purchases, sales, and maturities of available-for-sale securities and held-to-maturity securities shall be classified as cash flows from investing activities and reported gross for each security classification in the statement of cash flows. Cash flows from purchases, sales, and maturities of trading securities shall be classified based on the nature and purpose for which the securities were acquired. ##### [320-10-45-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:ec8d219da7fce38bb5f4e91dcaba35c78efe29e68f9937c87e920d45d8239511 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [230-10-45-8](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-8) permits reporting activity in [cash equivalents](https://asc.understandingaccounting.org/glossary/c/#cash-equivalents "Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: Readily convertible to known amounts of cash So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month U.S. Treasury bill and a three-year U.S. Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Examples of items commonly considered to be cash equivalents are Treasury bills, commercial paper, money market funds, and federal funds sold (for an entity with banking operations).") as a net change. However, securities that are considered cash equivalents are subject to the accounting and disclosure requirements of this Subtopic, such as disclosure of amortized cost and fair value by major security types. ##### [320-10-45-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:7fcbf521fca1f5f2f47e9d3800f95b7c26fb04604673cdf927aeabb903e26a91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not require the presentation of individual amounts for the three categories of investments on the face of the statement of financial position, provided the information is disclosed in the notes. Thus, entities that report certain investments in debt securities as cash equivalents in accordance with the provisions of Topic 230 can continue that practice, provided that the notes reconcile the reporting classifications used in the statement of financial position. Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:5a3b86d099b92cb2df794a0b88e5e562ed374dd40a30e7a9cb8bd030685b9637 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/10/#50-disclosure) SEC content: no ##### [320-10-50-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:77794d7612af8070d3e44080dfcce7f2119889cc835b44e9561bbf1d1fe1cf96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides disclosure guidance on information about [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.") that is required to be presented in the financial statements. ##### [320-10-50-1A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e4785014b6ed8db76f7ed745cb52d5a2aff388050cd5b11641ccb750a6ea9995 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures in this Section are required for all interim and annual periods when complete sets of financial statements are provided by an entity. The disclosures in this Section are not required when an entity provides summarized interim financial information. The minimum disclosure requirements for summarized interim financial information issued by publicly traded entities are established in paragraph [270-10-50-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1). 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 disclosures in this Section are required for each interim and annual period. ##### [320-10-50-1B](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e9e7e5348c6ed5e38ec2cc4531f1ab15108c4327448f98700465c3bf07744504 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Major security types shall be based on the nature and risks of the security.In determining whether disclosure for a particular security type is necessary and whether it is necessary to further separate a particular security type into greater detail, an entity shall consider all of the following: 1. a (Shared) activity or business sector 2. b Vintage 3. c Geographic concentration 4. d Credit quality 5. e Economic characteristic. #### Securities Classified as Available for Sale ##### [320-10-50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:304efa55ca83c02a3b5c688a76e578ef005b24aed27881f8e9add66ec8bda1db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For securities classified as available for sale, all reporting entities shall disclose all of the following by major security type as of each date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa Aggregate [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.") 3. aaa Total allowance for credit losses 4. b Total unrealized gains for securities with net gains in accumulated other comprehensive income 5. c Total unrealized losses for securities with net losses in accumulated other comprehensive income 6. d Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. 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 securities classified as available for sale, all reporting entities shall disclose all of the following by major security type as of each interim and annual date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa Aggregate [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.") 3. aaa Total allowance for credit losses 4. b Total unrealized gains for securities with net gains in accumulated other comprehensive income 5. c Total unrealized losses for securities with net losses in accumulated other comprehensive income 6. d Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. ##### [320-10-50-2A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:a156de957268f905c8b28738915fcb1366bfbac211f1c928a811af0003092797 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from both the fair value and amortized cost basis of the available-for-sale debt security, an entity may, as a practical expedient, exclude the applicable accrued interest that is included in the amortized cost basis for the purposes of the disclosure requirements in paragraph [320-10-50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2). If an entity elects this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis. 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 for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from both the fair value and amortized cost basis of the available-for-sale debt security, an entity may, as a practical expedient, exclude the applicable accrued interest that is included in the amortized cost basis for the purposes of the disclosure requirements in paragraph [320-10-50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2). If an entity elects this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis in interim and annual reporting periods. ##### [320-10-50-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:0983cc89f9774b4c3df61c28c885e8bc127f3732a38d04ce131af94a4068d2d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions (see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)) shall disclose the fair value and the net carrying amount (if different from fair value) of debt securities on the basis of at least the following four maturity groupings: 1. a Within 1 year 2. b After 1 year through 5 years 3. c After 5 years through 10 years 4. d After 10 years. Securities not due at a single maturity date, such as mortgage-backed securities, may be disclosed separately rather than allocated over several maturity groupings; if allocated, the basis for allocation also 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)Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions (see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)) shall disclose the fair value and the net carrying amount (if different from fair value) of debt securities in interim and annual reporting periods on the basis of at least the following four maturity groupings: 1. a Within 1 year 2. b After 1 year through 5 years 3. c After 5 years through 10 years 4. d After 10 years. Securities not due at a single maturity date, such as mortgage-backed securities, may be disclosed separately rather than allocated over several maturity groupings; if allocated, the basis for allocation also shall be disclosed in interim and annual reporting periods. ##### [320-10-50-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:31e617088f56e86af6ae402566ab0b7fed2ee377c62184034b36a4ce3404e152 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Securities Classified as Held to Maturity ##### [320-10-50-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:5f9da297cfd98657cb278b14ee7e3019cb33f635b31e895ee9b28b6d158e3976 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All reporting entities shall disclose the following for securities classified as held to maturity by major security type as of each date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 3. aaa Total allowance for credit losses 4. b [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 5. c [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 6. d Net carrying amount 7. dd [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 8. e Gross gains and losses in accumulated other comprehensive income for any derivatives that hedged the forecasted acquisition of the held-to-maturity securities 9. f Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. (Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions \[see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)\] shall disclose the net carrying amount of debt securities on the basis of at least the following four maturity groupings: 1. 1 Within one year 2. 2 After one year through five years 3. 3 After 5 years through 10 years 4. 4 After 10 years. Securities not due at a single maturity date, such as mortgage-backed securities, may be disclosed separately rather than allocated over several maturity groupings; if allocated, the basis for allocation also 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)All reporting entities shall disclose the following for securities classified as held to maturity by major security type as of each interim and annual reporting date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 3. aaa Total allowance for credit losses 4. b [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 5. c [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 6. d Net carrying amount 7. dd [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 8. e Gross gains and losses in accumulated other comprehensive income for any derivatives that hedged the forecasted acquisition of the held-to-maturity securities 9. f Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. (Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions \[see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)\] shall disclose the net carrying amount of debt securities on the basis of at least the following four maturity groupings: 1. 1 Within one year 2. 2 After one year through five years 3. 3 After 5 years through 10 years 4. 4 After 10 years. Securities not due at a single maturity date, such as mortgage-backed securities, may be disclosed separately rather than allocated over several maturity groupings; if allocated, the basis for allocation also shall be disclosed.) ##### [320-10-50-5A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:ff7ca599a58dac651913df98917f254af223c080975da358ca7259a0de3d00ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.") shall disclose the following information for securities classified as held to maturity, by major security type, as of each date for which a statement of financial position is presented: 1. a Aggregate fair value 2. b Gross unrecognized holding gains 3. c Gross unrecognized holding losses. 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)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.") shall disclose the following information for securities classified as held to maturity, by major security type, as of each interim and annual reporting date for which a statement of financial position is presented: 1. a Aggregate fair value 2. b Gross unrecognized holding gains 3. c Gross unrecognized holding losses. ##### [320-10-50-5B](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5B) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:c1473eb73e61c54235e7b5c993617ac284d2af14ffeb3a19c9a7c528d6867b6d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A financial institution that is a public business entity shall disclose the fair value of the debt securities classified as held to maturity, by major security type, on the basis of at least the following four maturity groupings: 1. a Within 1 year 2. b After 1 year through 5 years 3. c After 5 years through 10 years 4. d After 10 years. Securities not due at a single maturity date, such as mortgage-backed securities, may be disclosed separately rather than allocated over several maturity groupings; if allocated, the basis for allocation also 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)For interim and annual reporting periods, a financial institution that is a public business entity shall disclose the fair value of the debt securities classified as held to maturity, by major security type, on the basis of at least the following four maturity groupings: 1. a Within 1 year 2. b After 1 year through 5 years 3. c After 5 years through 10 years 4. d After 10 years. Securities not due at a single maturity date, such as mortgage-backed securities, may be disclosed separately rather than allocated over several maturity groupings; if allocated, the basis for allocation also shall be disclosed in interim and annual reporting periods. ##### [320-10-50-5C](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5C) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:1c6222b7047291b5df3a3ed2cbd52eb800923c27894e30a80cccbfc856fc34aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from the amortized cost basis of held-to-maturity securities, an entity may, as a practical expedient, exclude the accrued interest receivable balance that is included in the amortized cost basis of the held-to-maturity securities for the purposes of the disclosure requirements in paragraph [320-10-50-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5). If an entity applies this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis. 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 for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from the amortized cost basis of held-to-maturity securities, an entity may, as a practical expedient, exclude the accrued interest receivable balance that is included in the amortized cost basis of the held-to-maturity securities for the purposes of the disclosure requirements in paragraph [320-10-50-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5). If an entity applies this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis in interim and annual reporting periods. ##### [320-10-50-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:8e5dbac4f34a7b89327616e6a058c6c1d401b855cf9c850f94ab41fab33f845f 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/). ##### [320-10-50-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:a2ed8718ef8306808e62c8e38d6b89afcc626964cf50e9fc7892ab99c8523f7c 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/). ##### [320-10-50-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:2295c5a2a0674c637c7492a1b62881d96a9a6548e58c22d01ec0fe26b7b04e68 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/). ##### [320-10-50-8A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:6adedf144f2bf58217c813830e23f44ea66c4e4a21355a980ed9cb108304bac2 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/). ##### [320-10-50-8B](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-8B) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e8414a7504c1979b6521d6cc74067431b60cd23273cb589a2afd350b0cc2f2b5 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/). #### Sales, Transfers, and Related Matters That Occurred during the Period ##### [320-10-50-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:44f2bf29102a4971bb0e2eb9f196d04533e3ca20df0419493982b18065201a15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which the results of operations are presented, an entity shall disclose all of the following: 1. a The proceeds from sales of [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales 2. b The basis on which the cost of a security sold or the amount reclassified out of accumulated other comprehensive income into earnings was determined (that is, specific identification, average cost, or other method used) 3. c The gross gains and gross losses included in earnings from transfers of securities from the available-for-sale category into the [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity.") category 4. d The amount of the net unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") on available-for-sale securities for the period that has been included in accumulated other comprehensive income and the amount of gains and losses reclassified out of accumulated other comprehensive income into earnings for the period 5. e The portion of trading gains and losses for the period that relates to [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.") still held at the reporting date. 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 each interim and annual reporting period for which the results of operations are presented, an entity shall disclose all of the following: 1. a The proceeds from sales of [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales 2. b The basis on which the cost of a security sold or the amount reclassified out of accumulated other comprehensive income into earnings was determined (that is, specific identification, average cost, or other method used) 3. c The gross gains and gross losses included in earnings from transfers of securities from the available-for-sale category into the [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity.") category 4. d The amount of the net unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") on available-for-sale securities for the period that has been included in accumulated other comprehensive income and the amount of gains and losses reclassified out of accumulated other comprehensive income into earnings for the period 5. e The portion of trading gains and losses for the period that relates to [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.") still held at the reporting date. ##### [320-10-50-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-10) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:1050e287822e64eb91a0d42bd0e9ff5000b526621a5725484acfe7daab9c8079 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For any sales of or transfers from securities classified as held-to-maturity, an entity shall disclose all of the following in the notes to financial statements for each period for which the results of operations are presented: 1. a The net carrying amount of the sold or transferred security 2. b The net gain or loss in accumulated other comprehensive income for any derivative that hedged the forecasted acquisition of the held-to-maturity security 3. c The related realized or unrealized gain or loss 4. d The circumstances leading to the decision to sell or transfer the security. (Such sales or transfers should be rare, except for sales and transfers due to the changes in circumstances identified in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6).) 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 any sales of or transfers from securities classified as held-to-maturity, an entity shall disclose all of the following in the notes to financial statements for each interim and annual reporting period for which the results of operations are presented: 1. a The net carrying amount of the sold or transferred security 2. b The net gain or loss in accumulated other comprehensive income for any derivative that hedged the forecasted acquisition of the held-to-maturity security 3. c The related realized or unrealized gain or loss 4. d The circumstances leading to the decision to sell or transfer the security. (Such sales or transfers should be rare, except for sales and transfers due to the changes in circumstances identified in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6).) ##### [320-10-50-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:3686814e535bb04c24ae9233abfc33a56828f154d16c8f4448c1c303f5a4e101 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14) sets forth the conditions under which sales of debt securities may be considered as maturities for purposes of the disclosure requirements under paragraph [320-10-50-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-10). ##### [320-10-50-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:1ca82bc0d66bed681a9235556fa3fda8653ee639aff46606ba6d6be01ee4e100 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All sales or transfers of held-to-maturity securities are subject to the disclosure requirements of paragraph [320-10-50-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-10), regardless of the treatment of remaining held-to-maturity securities. ##### [320-10-50-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e4655ac2ee78371c73249fb5e52075df22b6cef1a7dbd8c5ca25ab42a9f88243 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). ##### [320-10-50-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:67800b635cbcec6f81c4f129557852c86f434e9c80b551ea823bbd439a218f3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of trading gains and losses for the period related to trading securities still held at the reporting date (required by paragraph [320-10-50-9(e)](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-9)) is calculated as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-E801FBC8-04EB-4075-96C5-751F1EE8CC85-low.gif) Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:f62c6d8939c3bc7d0a654a223daccc970645d8f394172a32690991791c7c0253 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [320-10-55-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7458774bb5a3212c82ea0a55b1f83836df040ce6d6df1ab58643d3c8584ac3a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This implementation guidance discusses the scope application of this Topic to the following instruments and transactions. 1. a Certain debt securities 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 Short sales of debt securities. ##### [320-10-55-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:17778a515129381e9a977a2f8f1577b7153b93b5fdf31d5b438666f127497852 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following debt instruments are within the scope of this Topic if they meet the definition of a [debt security](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 Loans restructured as securities. For example, any loan that was restructured involving a modification of terms would be subject to the provisions of this Topic if the debt instrument meets the definition of a [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations."). See paragraph [310-20-40-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-10) for additional information. 2. b Beneficial interests in securitized financial assets that are in equity form but that meet the definition of a debt security. For example, some beneficial interests issued in the form of equity represent solely a right to receive a stream of future cash flows to be collected under preset terms and conditions (that is, a creditor relationship), while others, according to the terms of the special-purpose entity, must be redeemed by the issuing entity or must be redeemable at the option of the investor. Consequently, those beneficial interests would be within the scope of both this Topic and Subtopic 325-40 since they are required to be accounted for as debt securities. 3. c Certificates of deposit (CDs) or guaranteed investment contracts. For example, certain negotiable jumbo CDs and guaranteed investment contracts might meet the definition of security, which was modeled after the definition provided in the Uniform Commercial Code. 4. d Redeemable convertible preferred stock. For example, convertible preferred stock that has mandatory redemption provisions or is redeemable at the option of the investor is considered a debt security and this Topic would apply. ##### [320-10-55-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:d01d0ba15adb75803b6c0343e758794188b77d480323119fb0b7b678b30815a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even if a loan could readily be converted into a security, the loan is not a debt security until it has been securitized. An example of unsecuritized loans is unsecuritized mortgage loans. However, after mortgage loans are converted to mortgage-backed securities, they are subject to the guidance in this Topic. ##### [320-10-55-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:4701d680a8cbd76271c4ed5471178903bf52d213261c803580e8cd48264e6c59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-55-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:bdae50a4b7531ed2ac30fd7690096f8651b85cec7457f9d2c8819f40880346cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-55-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:b45047906afd3ea775da218818c9c610945d755c42f1012d6f1d5b8284fd341c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Sales of securities that the seller does not own at the time of sale are obligations to deliver securities, not investments. Short sale obligations are addressed in the guidance for certain industries (see paragraph [940-320-35-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-1) with respect to broker-dealers and paragraph [942-405-25-1](https://asc.understandingaccounting.org/asc/405/942/#405-942-25-1) with respect to depository institutions). For guidance on evaluating whether a short sale transaction involves a derivative instrument, see paragraph [815-10-55-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-55-57). ##### [320-10-55-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:67ac5b8e51dca4bab002ead24e65e4e31497c68e448a8e84fae302c8b6d267c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-55-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:41785e604452f3034b00cd8dce72fc8f9e9884433ca01f361dfb182543ed09f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity should not look through the form of its investment to the nature of the securities held by an investee to determine whether the scope of this Topic applies. ##### [320-10-55-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:6d54731b0df8ba0d5c525262bbf21f620cd7b13bc92c3b11872d9de51694a4ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, an entity invests in a limited partnership interest (or a venture capital entity) that meets the definition of an equity security. However, substantially all of the partnership's assets consist of investments in debt securities. It is not appropriate to look through the form of an investment to determine whether this Topic applies. In the specific situation described in this paragraph, the investment would be considered an equity security. So, this Topic would not apply to that type of investment. (Topic 321 and Subtopic 323-30 provide guidance on the accounting for limited partnership investments.) Another example of an investment that is considered an equity security is an investment in a mutual fund that invests only in U.S. government debt securities. ##### [320-10-55-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7867a9dab2750a3fc00b9e9f0b0e204fb5c15b5c6557b999286b426eb85540d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are descriptions of various [structured notes](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes."), using illustrative terms: 1. a Dual-index floater. A bond with a coupon rate that is determined by the spread between two different indexes and that usually includes an above-market interest rate in Year 1. These bonds may have a teaser fixed rate for the first period of the bond's life, after which the interest rate floats according to a predetermined formula. 2. b Inverse floater. A bond with a coupon rate of interest that varies inversely with changes in specified general interest rate levels or indexes, for example, the London Interbank Offered Rate (LIBOR). 3. c Levered inverse floater. A bond with a coupon that varies indirectly with changes in general interest rate levels and that applies a multiplier (greater than 1.00) to the specified index in its calculation of interest. 4. d Delevered floater. A bond with a coupon rate of interest that lags overall movements in specified general interest rate levels or indexes. 5. e Range floater. A bond in which the investor's coupon is dependent on the number of days that a reference rate stays within a preestablished collar; otherwise, the bond pays either 0% interest or a below-market rate. 6. f Lower-of and higher-of floaters. A bond that pays an interest rate stated as the lower of or higher of two different formulas. 7. g Ratchet floater. A bond that pays a floating rate of interest and has an adjustable cap and/or floor that moves in sync with each new reset rate. 8. h Stepped cap-floor floaters. A bond that pays a floating rate of interest, subject to a scheduled cap, scheduled floor, or both. 9. i Floating to floating notes. Varying coupon (first-year LIBOR or U.S. Treasury bill based, second-year prime based). 10. j Floating to fixed notes. Varying coupon (first-year coupon is fixed, second- and third-year coupons are based on LIBOR, U.S. Treasury bills, or prime). 11. k Indexed amortizing notes. A bond that repays principal based on a predetermined amortization schedule or target value. This value is linked to movements within a specific mortgage-backed security or index. The maturity of the bond changes as the related index changes. This instrument includes a varying maturity. 12. l Equity indexed notes. Bond return of interest and/or principal is tied to a specified equity index (for example, the Standard & Poor's S&P 500 Index). This instrument may contain fixed or varying coupon rate and may place all or a portion of principal at risk. 13. m Variable principal redemption bond. A bond whose principal redemption value at maturity is dependent on the change in an underlying index over a predetermined observation period. A typical scenario would be a bond that guarantees a minimum par redemption value of 100%, and the potential for a supplemental principal payment at maturity as compensation for the below-market rate of interest offered with the instrument (providing that the bond satisfies the indexing requirements as outlined in the terms of the offering). 14. n Yield curve note. Fixed coupon, principal varies as follows: \[(5-year swap rate - 3-month $LIBOR - 1%) × 40 + 100%\] × par (but not less than zero). 15. o Crude oil knock-in notes. 1% coupon, principal guaranteed with upside potential based on the strength of the oil market. 16. p Leveraged gold notes. Coupon is zero, variable principal based on the London Gold Index. These notes are designed to incorporate a collar on gold, whereby the investor buys a call and sells a put, in exchange for the coupon. 17. q Gold-linked bull note. Fixed 3% coupon, principal is guaranteed with upside potential if the price of gold increases. 18. r Equity-linked bear note. Fixed 4% coupon, principal is guaranteed with upside potential if a specified Standard & Poor's index falls. 19. s Step-up bonds. Bond provides an introductory above-market yield and the bond then steps up to a new coupon that will be below then-current market rates or, alternatively, the bond may be called. 20. t Multi step-ups. A security that pays investors an introductory above-market yield—reflecting an embedded call option—for a short lockout period, and then is either called or steps up to a higher coupon rate (which will be below then-current market rates). These bonds can also take the form of step-down or variable step-up structures. 21. u Credit-sensitive bond. A bond that has a coupon rate of interest that resets based on changes in an entity's credit rating. 22. v Inflation bond. A bond with a contractual principal amount that is indexed to the inflation rate; the coupon rate is typically below that of traditional bonds of similar maturity. 23. w Disaster bond. A bond that pays a coupon above that of traditional bonds; however, a substantial portion or all of the principal amount is subject to loss if a specified disaster occurs. 24. x Specific equity-linked bond. A bond that pays a coupon slightly below that of traditional bonds of similar maturity; however, the principal amount is linked to the stock market performance of an equity investee of the issuer. The issuer may settle the obligation by delivering the underlying shares of the equity investee or may deliver the equivalent [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.") in cash. ##### [320-10-55-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:15f570f5d65d43305dced6eb86192da646ca96781f5a08e995d3ab5f45ba8b8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [320-10-35-40](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-40) requires the [retrospective interest method](https://asc.understandingaccounting.org/glossary/r/#retrospective-interest-method "A method of interest income recognition under which income for the current period is measured as the difference between the amortized cost at the end of the period and the amortized cost at the beginning of the period, plus any cash received during the period.") to recognize income on certain securities. The amortized cost amount is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimates of future cash flow streams to the initial investment. If the effective yield is negative, the amortized cost amount should be calculated using a zero percent effective yield. Thus, the following procedures would be required for each reporting period: 1. a Calculate the effective yield that equates all past actual cash flows and current estimates of future cash flows to the initial investment amount. 2. b Using the rate calculated in (a), or zero percent if negative, calculate the present value of the estimated future cash flows. That amount represents the amortized cost at the end of the period. 3. c Adjust the amortized cost balance to the amount calculated in (b) with the offsetting amount recognized as income for the period. ##### [320-10-55-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:1501be4abcda45701de751ab675f75847bc4fdc40f3bf7ddbe144b814e351617 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The preadjusted amortized cost balance should represent the amortized cost balance at the beginning of the period less any cash received on the investment during the period. ##### [320-10-55-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:1eff4c14506684033d60736000cdb53c7116ef11b1714567109925858dde17b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 1 (see paragraph [320-10-55-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-16)) illustrates application of the retrospective interest method. ##### [320-10-55-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:5c1d8aa22c9b72e410b029c77f3a5a837c6b4ec1fe2efbbac3688f59d0bcd41a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This paragraph and the following paragraph address whether an investor should account for the two structured note securities together as a unit or account for each security separately. The following indicators should be considered for purposes of identifying whether two securities should be viewed as being purchased for a specified investment strategy. All of these indicators are not required to exist for the securities to be accounted for as a unit. Judgment is required in reaching a determination. 1. a The two securities are related in that their fair values will move in opposite directions based on changes in interest rates on a specified date, or after a specified period after issuance. The fair value changes may be caused by a change in the coupon interest rate of the two securities or by altering the maturities of the securities. 2. b The two securities are issued contemporaneously and in contemplation of one another or are issued separately but the terms for their remaining lives are as described in (a). 3. c The two securities are issued by the same counterparty and/or the same issuer (or issued by different issuers but structured through an intermediary). 4. d The two securities were purchased by the investor for the sole purpose of achieving a desired accounting result, and the transactions considered individually would serve no valid business purpose or would not be entered into otherwise. ##### [320-10-55-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:77a12d95e27444ab04bb792232c72e5fed7c5cc1fb1574c9e7f96c4b9787b1a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The substance of the investment strategy provided in Example 2 (see paragraph [320-10-55-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-20)) is that the investor has simply purchased a single market-based security that results in neither a gain nor a loss when the interest rate resets and, as such, the accounting should not reflect something different. However, other factors, such as a change in credit ratings or a change in market rates, may cause a change in fair value of the unit. #### Illustrations ##### [320-10-55-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:ae59d12b0ee3e754b380a828390398f054fbe0677ef5dbbe438c13798487b93c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [320-10-35-38 through 35-43](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-38) . This Example has the following assumptions: 1. a The investor purchases a 3-year, $100 par value structured note at par. 2. b The principal to be repaid at maturity is based on the performance of the Standard & Poor's S&P 500 Index, which, based on current Standard & Poor's S&P Futures indexes, is expected to provide the investor with principal of $106 at the end of Year 3, and the coupon interest on the note is fixed at 6 percent per year. 3. c On the acquisition date of the note, the investor expects the following cash flows and income to be recognized over the life of the note. - ![](https://asc.understandingaccounting.org/asc-img/GUID-79ECC57A-8BB5-4F1D-B02D-DBFB68790BCE-low.gif) Period Cash Flows Income Recognized Noncash Income Ending Amortized Cost Acquisition $(100) Year 1 6 $7.85 $1.85 $101.85 Year 2 6 8.00 2.00 103.85 Year 3 112 8.15 2.15 - These cash flows produce an effective yield of 7.85 percent. ##### [320-10-55-17](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:43dcaf6bf8a456dad9bca320bd208028734b080b44465714d032b125121c28e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the end of Year 1, assume the investor expects to receive only $80 in principal at the end of Year 3, which results in a negative effective yield of 0.71 percent over the life of the note (assume that the investor concludes that a credit loss has not occurred). Accordingly, the amortized cost amount must be reduced to the present value of the estimated future cash flows using a zero percent effective yield, or $92, at the end of Year 1. The income recognized in Year 1 is negative $2 (the amortized cost amount at the end of Year 1 in the table below of $92 less the amortized cost amount at the beginning of the year of $100 plus cash received during the year of $6). The cash flow and income recognition table as of the end of Year 1 is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-FD04929F-8D61-4B1F-AC05-729488BCEDED-low.gif) s Cash Flows Income Recognized Noncash Income Negative Yield Adjustment Recognized Ending Amortized Cost Acquisition $(100) Year 1 6 $7.85 $1.85 $(9.85) $92 Year 2 6 - (6) - 86 Year 3 86 - (6) - - ##### [320-10-55-18](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:d1676b7bf26a2127fe4b43968fb873af98fbe71e6464566ce3a8c121b93c9e99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. These cash flows produce an effective yield of negative 0.71 percent. ##### [320-10-55-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:88368d4d7127f3a7a0f90e25045e03b72181882cf95971836a6ec3b5d954c747 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the end of Year 2, assume the S&P 500 Index market reverses and the investor now expects to receive the same cash flows that it expected upon acquisition of the note. Using the first table above, the investor would increase the amortized cost amount of the note to $103.85 at the end of Year 2, which would result in recognizing income of $17.85 in Year 2 (amortized cost from the first table at the end of Year 2 of $103.85 less the amortized cost from the second table at the end of Year 1 of $92 plus cash received in Year 2 of $6). ##### [320-10-55-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7bf6f4b3677b87f3e359eed92b3d2420e99b48e130b110b0a1a58cd0a48f603a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [320-10-25-19 through 25-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19) . An entity purchases two separate structured notes with opposite interest rate characteristics. The terms of the bonds are described below. - ![](https://asc.understandingaccounting.org/asc-img/GUID-879A6398-55BA-406A-B457-7F3A797E254F-low.gif) Maturity Initial Coupon Reset Provision Bond A: $1 billion face amount 10 years 8.00% "One month after issuance the interest rate resets to 1% if 10-year Treasury bond rates have decreased by 1 basis point since the issuance of Bond A or 15% if Treasury rates have increased by 1 basis point. After the initial reset, the rate is fixed for the remaining term of the bond." Bond B: $1 billion face amount 10 years 8.00% "One month after issuance the interest rate resets to 1% if 10-year Treasury bond rates have increased by 1 basis point since the issuance of Bond B or 15% if Treasury rates have decreased by 1 basis point. After the initial reset, the rate is fixed for the remaining term of the bond." ##### [320-10-55-21](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:d22b91a16a0935e7be4d55415daf2ecf96cdba22eec21003ed61f61b412b16e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If accounted for as separate instruments, the entity could classify the bonds as available-for-sale. (Note that these securities would have to be accounted for as a unit rather than as separate instruments.) After the interest rates on the bonds reset, the entity will sell the bond that is in a loss position recognizing a loss in earnings of $475 million (assuming that the current interest rate is 8 percent). The bond that is in a gain position will have a $475 million unrealized gain in other comprehensive income that will be recognized in earnings as a yield adjustment over the remaining 10-year life of the instrument (assuming no further changes in value). ##### [320-10-55-21A](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-21A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:88a76b183de70fecad574e74a95443e304ad26985f811488f70b37c09778f359 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/). ##### [320-10-55-22](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:2faf4a1dda55c1deac7444b8bc438554f14f3b142b866072fc4d024ca1044aa8 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/). ##### [320-10-55-23](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:9b95058a155346902cc068469c6efd25e893708584741929e569d8bfc3bd957d 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/). ##### [320-10-55-24](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:5d80702030d096faf9a38c9116ab9774e5beaf748dd557fdfd465fe159da190a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the accounting for a transfer from available-for-sale to held-to-maturity. - ![](https://asc.understandingaccounting.org/asc-img/GUID-7F47481A-0361-4282-B9E4-7371AFD4C882-low.gif) Amortized Cost "Unrealized Holding Gain in Other Comprehensive Income (Amortization)" "Deferred Tax Adjustment in Other Comprehensive Income @ 30% (a) Credit (Debit)" "Unrealized Holding Gain, Net of Tax, in Other Comprehensive Income Credit (Debit)" "Cumulative Effect on Interest Income Credit (Debit)" Par Premium (Amortization) Total Fair Value 1/1/X1 "Bond purchased, 6 years from maturity, classified as available for sale" 100 6 106 106 19X1 "Amortization of premium, bringing amortized cost to 105" (1) (1) (1) (1) 19X1 Bond appreciates to 120 15 15 (4.5) 10.5 12/31/X1 Balances 100 5 105 120 15 (4.5) 10.5 (1) 1/1/X2 Bond transferred to held-to-maturity at amortized cost basis plus unrealized holding gain 100 20 120 120 15 (4.5) 10.5 19X2 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X2 Balances 100 16 116 119 12 (3.6) 8.4 (2) 19X3 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X3 Balances 100 12 112 114 9 (2.7) 6.3 (3) 19X4 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X4 Balances 100 8 108 107 6 (1.8) 4.2 (4) 19X5 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X5 Balances 100 4 104 102 3 (0.9) 2.1 (5) 19X6 Amortization of premium and equity component (4) (4) (3) 0.9 (2) (1) 12/31/X6 Maturity at 100 (100) (100) 100 12/31/X6 Balances - - - - - - (6) (a) The offsetting accounting entry would be to record or adjust a deferred tax liability. ##### [320-10-55-25](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7245670d060358d60031506844c41caaa975ab34bd8ca651bf83d1d3ca135f31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For illustrative purposes, amortization of the premium and the unrealized holding gain was computed on a straight-line basis. Premiums and discounts on debt securities should be amortized pursuant to Subtopic 310-20. Paragraph [320-10-35-10B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10B) requires that the unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") at the date of transfer be amortized in a manner consistent with any premium or discount. The Cumulative Effect on Interest Income column represents the difference between the amortization of the premium and the unrealized holding gain over the life of the security, and does not reflect any coupon interest received. Source downloaded (UTC): 2026-09-09T23:35:09.381Z to 2026-09-09T23:35:09.381Z Record version: sha256:8cafbc52df21274a656038ee7b5d86d672ebcb595fe397b9222d4381ab647757 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/320/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [320-10-65-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:09.381Z to 2026-09-09T23:35:09.381Z Record version: sha256:a8ff9a6948efb71f3a44363cfc97eb6db329d79e08c8cc9768a4bf9996da5b1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 04/13/2010 after the end of the transition period stated in FSP FAS 115-2 and FAS 124-2, _Recognition and Presentation of Other-Than-Temporary Impairments_. Source downloaded (UTC): 2026-09-09T23:35:15.231Z to 2026-09-09T23:35:15.231Z Record version: sha256:03d2376d5ecbc059bc6ee3400fc9de3267b53b82cfd85d6a67b8ba5924727159 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-00-status) SEC content: yes ##### [320-10-S00-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:15.231Z to 2026-09-09T23:35:15.231Z Record version: sha256:dcc13229523caef8a81f8c04ca577243d45d199879b1727343b9ed9576c41264 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
320-10-S55-1SupersededAccounting Standards Update No. 2018-0403/09/2018
320-10-S99-1SupersededAccounting Standards Update No. 2018-0403/09/2018
320-10-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
320-10-S99-2AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-S99-2AmendedAccounting Standards Update No. 2010-0401/15/2010
Source downloaded (UTC): 2026-09-09T23:35:17.811Z to 2026-09-09T23:35:17.811Z Record version: sha256:0f2771c4e2ef0339add01d97d65081bac8217352287b2b7b71a49820f94af07f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-35-subsequent-measurement) SEC content: yes #### Holding Gains and Losses Adjustments to Assets and Liabilities as Related to the Implementation of Topic 320 ##### [320-10-S35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:17.811Z to 2026-09-09T23:35:17.811Z Record version: sha256:be02bd35db552a798d066b4f78380e99a29d9d4182cd8a1982b6c4d557082f8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [320-10-S99-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-S99-2), SEC Staff Announcement: Adjustments in Assets and Liabilities for Holding Gains and Losses as Related to the Implementation of Topic 320 for SEC Staff views on adjusting certain assets and liabilities upon the implementation of Topic 320 as if unrealized holding gains or losses from securities classified as available for sale had been realized. Source downloaded (UTC): 2026-09-09T23:35:20.210Z to 2026-09-09T23:35:20.210Z Record version: sha256:8926107c9934b19428c368b398f8cd8a123ca448cc9cd94263d6cf0b435ae9c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-50-disclosure) SEC content: yes #### Marketable Securities ##### [320-10-S50-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:20.210Z to 2026-09-09T23:35:20.210Z Record version: sha256:7cff33160550ff0a0ff1e4daafd7b6d298757b2c25ed387e7e7709b2b7dafe0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.2, for disclosure requirements for marketable securities. #### Other Investments ##### [320-10-S50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:20.210Z to 2026-09-09T23:35:20.210Z Record version: sha256:4988a6ff5c8d538a890ea21ec37abf912def4e4d90dac0703cff269a3ad1e782 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.12, for disclosure requirements for other investments. Source downloaded (UTC): 2026-09-09T23:35:22.655Z to 2026-09-09T23:35:22.655Z Record version: sha256:103ffb2af580922abc3c2579537c9de66637f9a9ba2d24dd09234569d3084b40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes #### Impairment of Individual Available-for-Sale and Held-to-Maturity Securities ##### [320-10-S55-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:22.655Z to 2026-09-09T23:35:22.655Z Record version: sha256:b8f800489346e2021c924b608d798f0d9062aff7c127e6aa366a7d0ded71a091 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/). 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.