{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/940/","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","number":"320-940","topic":"320","title":"Financial Services—Brokers and Dealers","area":"Assets","paragraphs":23,"summary":"This subtopic governs how broker-dealers account for investments in debt and equity securities, covering both clearance/settlement activities (General) and proprietary trading (Proprietary Trading Securities). The core rules are that all regular-way trades are reflected on a trade-date basis (320-940-25-1), and proprietary security positions — both inventory and obligations for short inventory positions — are measured initially and subsequently at fair value with unrealized gains and losses included in profit or loss (320-940-30-2, 35-1, 35-2).","concepts":["broker-dealer","regular-way trades","trade-date accounting","proprietary trading","securities sold, not yet purchased","fair value measurement","fails-to-deliver and fails-to-receive","complex trading strategies"],"categories":["Industry-specific","Fair value","Presentation","Financial instruments"],"level":"intermediate","topic_title":"Investments—Debt Securities","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"320-940-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div> <div class=\"norm-text\"> <table class=\"asc-table\" id=\"SL29649341-161889\"> <tr> <td class=\"entry\"> <strong class=\"ph b\">Paragraph</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Action</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Accounting Standards Update</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Date</strong> </td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/f/#financial-asset\" class=\"term\" title=\"Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.\"><span>Financial Asset</span></a> (2nd def.)</td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a> </td> <td class=\"entry\">12/14/2016</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/r/#repurchase-agreement\" class=\"term\" title=\"An agreement under which the transferor (repo party) transfers a financial asset to a transferee (repo counterparty or reverse party) in exchange for cash and concurrently agrees to reacquire that financial asset at a future date for an amount equal to the cash exchanged plus or minus a stipulated interest factor. Instead of cash, other securities or letters of credit sometimes are exchanged. Some repurchase agreements call for repurchase of financial assets that need not be identical to the financial assets transferred.\"><span>Repurchase Agreement</span></a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-11/\" class=\"xref\">Accounting Standards Update No. 2014-11</a> </td> <td class=\"entry\">06/12/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/r/#repurchase-agreement\" class=\"term\" title=\"An agreement under which the transferor (repo party) transfers a financial asset to a transferee (repo counterparty or reverse party) in exchange for cash and concurrently agrees to reacquire that financial asset at a future date for an amount equal to the cash exchanged plus or minus a stipulated interest factor. Instead of cash, other securities or letters of credit sometimes are exchanged. Some repurchase agreements call for repurchase of financial assets that need not be identical to the financial assets transferred.\"><span>Repurchase Agreement</span></a> (1st def.)</td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a> </td> <td class=\"entry\">03/14/2014</td> </tr> <tr> <td class=\"entry\"> <strong class=\"ph b\">Repurchase Agreement</strong> (2nd def.)</td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a> </td> <td class=\"entry\">03/14/2014</td> </tr> <tr> <td class=\"entry\"> <strong class=\"ph b\">Reverse Repurchase Agreement </strong> </td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a> </td> <td class=\"entry\">03/14/2014</td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/320/940/#320-940-05-3\" class=\"xref\">940-320-05-3</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a> </td> <td class=\"entry\">03/14/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/320/940/#320-940-30-2\" class=\"xref\">940-320-30-2</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2012-04/\" class=\"xref\">Accounting Standards Update No. 2012-04</a> </td> <td class=\"entry\">10/01/2012</td> </tr> <tr> <td class=\"entry\"> <div class=\"xref-range displayInline\"><a href=\"/asc/320/940/#320-940-35-1\" class=\"xref\">940-320-35-1 through 35-3</a></div> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2012-04/\" class=\"xref\">Accounting Standards Update No. 2012-04</a> </td> <td class=\"entry\">10/01/2012</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/320/940/#320-940-45-4\" class=\"xref\">940-320-45-4</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2012-04/\" class=\"xref\">Accounting Standards Update No. 2012-04</a> </td> <td class=\"entry\">10/01/2012</td> </tr> </table> </div> </div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nFinancial Asset (2nd def.) | Amended | Accounting Standards Update No. 2016-19 | 12/14/2…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5fd8b91ba4a8384138ab02162638f4f08cda973e73d2afb4ba478528a09eca36","downloaded_from":"2026-09-09T23:35:32.391Z","last_downloaded_at":"2026-09-09T23:35:32.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477895","source_sha256":"df3f1fa7f6b627489cc16861942c22fa2d0cc2f3e798652b3b11615977fdf2cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3335f580c864cce1cb902d11f9b5fcb55868b1409869b0bbdd5fe572beb95ca9","downloaded_from":"2026-09-09T23:35:32.391Z","last_downloaded_at":"2026-09-09T23:35:32.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477895","source_sha256":"df3f1fa7f6b627489cc16861942c22fa2d0cc2f3e798652b3b11615977fdf2cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d207f5396314bb8b7377b2f75100ecefd7c531377c6c51a3fd88feea43c91ee2","downloaded_from":"2026-09-09T23:35:32.391Z","last_downloaded_at":"2026-09-09T23:35:32.391Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477895","source_sha256":"df3f1fa7f6b627489cc16861942c22fa2d0cc2f3e798652b3b11615977fdf2cb"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"320-940-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic addresses investments in debt and equity securities by brokers and dealers in securities (broker-dealers). The guidance in this Subtopic is presented in the following two Subsections:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Proprietary Trading Securities.</div></li></ol></div></div>","snippet":"This Subtopic addresses investments in debt and equity securities by brokers and dealers in securities (broker-dealers). The guidance in this Subtopic is presented in the following two Subsections:\n(a) General\n(b) Propri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56ce04913e2aeffc2068f7f12bec1f1c28b9215b3df454e137587bd36c765813","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}},{"citation":"320-940-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The General Subsections provide guidance relating to clearance and settlement activities.</div></div>","snippet":"The General Subsections provide guidance relating to clearance and settlement activities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8f0f211b95bce9afa94c186ddac41999d131a04c8942e813c27a80b93e1227a","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ad2d9c61719f94c74922fddbf57fbf2b11a0b02f893d8d583ba2f1d0a18a2e87","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}},{"block":"Proprietary Trading Securities","heading":null,"paragraphs":[{"citation":"320-940-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Proprietary Trading Securities Subsections provide guidance on accounting for <a href=\"/glossary/p/#proprietary-transactions\" class=\"term\" title=\"Transactions in financial instruments that broker-dealers execute for their own account.\"><span>proprietary transactions</span></a>. <span class=\"sfragment\" id=\"sfr_EDC9F5E6-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A broker-dealer may buy and sell securities for its own account. </span></span><span class=\"sfragment\" id=\"sfr_EDC9F788-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Broker-dealers frequently enter into matched-stock borrow and loan transactions as a finder or conduit, or enter into <a href=\"/glossary/r/#repurchase-agreement\" class=\"term\" title=\"An agreement under which the transferor (repo party) transfers a financial asset to a transferee (repo counterparty or reverse party) in exchange for cash and concurrently agrees to reacquire that financial asset at a future date for an amount equal to the cash exchanged plus or minus a stipulated interest factor. Instead of cash, other securities or letters of credit sometimes are exchanged. Some repurchase agreements call for repurchase of financial assets that need not be identical to the financial assets transferred.\"><span>repurchase</span></a> and reverse repurchase transaction agreements as part of a matched-book trading strategy. </span></span><span class=\"sfragment\" id=\"sfr_EDC9F90C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Further, complex trading strategies often involve numerous long and short positions in different products, so that those positions reflect a trading position that is different from its individual components (for example, <a href=\"/glossary/b/#box-spread\" class=\"term\" title=\"A combination of long calls and short puts (identical with respect to the underlying security issue, number of shares, exercise price, and expiration date) coupled with long puts and short calls (identical with respect to the underlying security issue, number of shares, exercise price, and expiration date). In boxing (coupling), the long calls and short puts with the long puts and short calls, the underlying security issue, the number of shares, and the expiration date remain identical. However, the exercise price of each combination is at a different amount.\"><span>box spreads</span></a>, conversions, and reversals). </span></span></div></div>","snippet":"The Proprietary Trading Securities Subsections provide guidance on accounting for proprietary transactions. A broker-dealer may buy and sell securities for its own account. Broker-dealers frequently enter into matched-st…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27c795fb9e66fd81efc8b5b00d9e39c22087ab7abd90c97eec0cc54eb6d20afe","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:693f9f1f402b58971af616f255f47a9ebe4926a2aa977c76127154b189806ab1","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}},{"block":"Proprietary Trading Securities","heading":"Regular-Way Trades","paragraphs":[{"citation":"320-940-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EDC9FA71-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The risk of nonperformance of <a href=\"/glossary/r/#regular-way-trades\" class=\"term\" title=\"Regular-way trades include both of the following: All transactions in exchange-traded financial instruments that are expected to settle within the standard settlement cycle of that exchange (for example, three days for U.S. exchanges) All transactions in cash-market-traded financial instruments that are expected to settle within the time frame prevalent or traditional for each specific instrument (for example, for U.S. government securities, one or two days).\"><span>regular-way trades</span></a> is minimal given all of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EDC9FBE6-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">They are fully collateralized on the trade date. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EDC9FD66-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The period of time between trade date and settlement date is reasonably short. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EDC9FECA-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Most equity, U.S. government, and mortgage-backed agency securities are affirmed by both parties to the trade and settle net through a clearing entity. </span></span></div></li></ol></div></div>","snippet":"The risk of nonperformance of regular-way trades is minimal given all of the following:\n(a) They are fully collateralized on the trade date.\n(b) The period of time between trade date and settlement date is reasonably sho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91085638990ab1645f3bfcc154846d6d78b491f8146b245a7d12d5d393a3d5bb","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53eabba304bc86cf9d8a1f5eb28f07f2699e351c263783f426b31add771333a4","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ea6da8672c2b55483e1d06f305bfd382f697a7aa18dec2391b662ce8756fc33","downloaded_from":"2026-09-09T23:35:35.402Z","last_downloaded_at":"2026-09-09T23:35:35.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477524","source_sha256":"b82e1293c6224e8787d23e24c3b0c058e4ef8bcd54f9785b683bb7e786d70077"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"320-940-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-72584C21-EC5A-4D7A-A57B-641241493286.ditamap\" class=\"ditamap\">940-10-15</a>, with specific qualifications noted below.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 940-10-15, with specific qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffb4a53420aa4c0c78f7e68460ef25823401b63868240e4af9d80331fa92ca33","downloaded_from":"2026-09-09T23:35:37.124Z","last_downloaded_at":"2026-09-09T23:35:37.124Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478293","source_sha256":"74abe54b2b3928191d94b26c075090bf3ddbc2151db21062543119bfdea32341"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15717adb92bbb5b20d8a944a6c8eb04c4bf8d4df015e747f1f6b9af1896fcee3","downloaded_from":"2026-09-09T23:35:37.124Z","last_downloaded_at":"2026-09-09T23:35:37.124Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478293","source_sha256":"74abe54b2b3928191d94b26c075090bf3ddbc2151db21062543119bfdea32341"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"320-940-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">For guidance on investments in debt and equity securities that are part of a financial-restructuring transaction (as described in paragraphs <a href=\"/asc/325/940/#325-940-05-1\" class=\"xref\">940-325-05-1</a>, <a href=\"/asc/325/940/#325-940-30-1\" class=\"xref\">940-325-30-1</a>, and <a href=\"/asc/325/940/#325-940-35-1\" class=\"xref\">940-325-35-1</a>), see Subtopic <a altsource=\"GUID-35AF744D-E729-415C-8ECD-A19FD663CF9F.ditamap\" class=\"ditamap\">940-325</a>.</div></div>","snippet":"For guidance on investments in debt and equity securities that are part of a financial-restructuring transaction (as described in paragraphs 940-325-05-1, 940-325-30-1, and 940-325-35-1), see Subtopic 940-325.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d98584ee7f83d5f4ddf307ed906660f702ed4c177d200a9db208aaa59295917f","downloaded_from":"2026-09-09T23:35:37.124Z","last_downloaded_at":"2026-09-09T23:35:37.124Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478293","source_sha256":"74abe54b2b3928191d94b26c075090bf3ddbc2151db21062543119bfdea32341"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af36ec34158a2d72db4792df4a971d7bd6de35274d6d439964cd9032722fcd98","downloaded_from":"2026-09-09T23:35:37.124Z","last_downloaded_at":"2026-09-09T23:35:37.124Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478293","source_sha256":"74abe54b2b3928191d94b26c075090bf3ddbc2151db21062543119bfdea32341"}},{"block":"Proprietary Trading Securities","heading":"Overall Guidance","paragraphs":[{"citation":"320-940-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Proprietary Trading Securities Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-72584C21-EC5A-4D7A-A57B-641241493286.ditamap\" class=\"ditamap\">940-10-15</a>, and apply to all broker-dealers involved in proprietary trading of securities.</div></div>","snippet":"The Proprietary Trading Securities Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 940-10-15, and apply to all broker-dealers involved in proprietary trading of sec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:358d9c85a55de966f51e751758053430f901569a63948ee09f0fd7cfe637f8d2","downloaded_from":"2026-09-09T23:35:37.124Z","last_downloaded_at":"2026-09-09T23:35:37.124Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478293","source_sha256":"74abe54b2b3928191d94b26c075090bf3ddbc2151db21062543119bfdea32341"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4911a506c79c766af787f058374a576eeff044663ab8cfb9bcc61cb1ed5a996e","downloaded_from":"2026-09-09T23:35:37.124Z","last_downloaded_at":"2026-09-09T23:35:37.124Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478293","source_sha256":"74abe54b2b3928191d94b26c075090bf3ddbc2151db21062543119bfdea32341"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:699a6d3db7a5ddefea1aa26cc805605239cb298c86fe37b1833d96edf46fc8b0","downloaded_from":"2026-09-09T23:35:37.124Z","last_downloaded_at":"2026-09-09T23:35:37.124Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478293","source_sha256":"74abe54b2b3928191d94b26c075090bf3ddbc2151db21062543119bfdea32341"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Proprietary Trading Securities","heading":null,"paragraphs":[{"citation":"320-940-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EDFFEB99-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The statement of financial condition shall reflect all <a href=\"/glossary/r/#regular-way-trades\" class=\"term\" title=\"Regular-way trades include both of the following: All transactions in exchange-traded financial instruments that are expected to settle within the standard settlement cycle of that exchange (for example, three days for U.S. exchanges) All transactions in cash-market-traded financial instruments that are expected to settle within the time frame prevalent or traditional for each specific instrument (for example, for U.S. government securities, one or two days).\"><span>regular-way trades</span></a> on an accrual or trade-date basis. </span></span><span class=\"sfragment\" id=\"sfr_EDFFECC6-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Risk, benefits, and economic potentials are created and conveyed at the trade date (that is, the inception of the contract), which is when the major terms have been agreed to by the parties. To properly reflect the economic effects of purchase and sale transactions for financial instruments (that is, to reflect the assumption of the risks and rewards resulting from changes in the value of financial instruments), broker-dealers shall account for the changes in value relating to all proprietary or principal transactions on a trade-date basis. </span></span></div></div>","snippet":"The statement of financial condition shall reflect all regular-way trades on an accrual or trade-date basis. Risk, benefits, and economic potentials are created and conveyed at the trade date (that is, the inception of t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:221798dd1c93cc5ce1992d1aad22133d6c3b7691cad1a7157cba08cc8d4dd420","downloaded_from":"2026-09-09T23:35:43.343Z","last_downloaded_at":"2026-09-09T23:35:43.343Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478377","source_sha256":"4a9a2852715a15cc7a51c1d0df0a977423474974b76ebfd53b8b12e63e2a62a5"}},{"citation":"320-940-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EDFFEDA7-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, if the broker-dealer purchased financial instruments for its own account on the date of the statement of financial condition, the transaction shall be reflected in the broker-dealer's inventory with a corresponding credit to net receivable or payable for unsettled regular-way trades. </span></span><span class=\"sfragment\" id=\"sfr_EDFFEE79-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the exchange does not occur on the contracted settlement date (referred to as a <a href=\"/glossary/f/#fail-to-deliver\" class=\"term\" title=\"A fail-to-deliver is a securities sale to another broker-dealer that has not been delivered to the buying broker-dealer by the close of business on the settlement date.\"><span>fail-to-deliver</span></a> or <a href=\"/glossary/f/#fail-to-receive\" class=\"term\" title=\"A fail-to-receive is a securities purchase from another broker-dealer not received from the selling broker-dealer by the close of business on the settlement date.\"><span>fail-to-receive</span></a>), these transactions shall be recognized on the statement of financial condition as fails-to-receive or fails-to-deliver. </span></span></div></div>","snippet":"For example, if the broker-dealer purchased financial instruments for its own account on the date of the statement of financial condition, the transaction shall be reflected in the broker-dealer's inventory with a corres…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23f2bfcae5950f074fc8e61454fe5e7ec1df521baeef98077651a72b88f1b382","downloaded_from":"2026-09-09T23:35:43.343Z","last_downloaded_at":"2026-09-09T23:35:43.343Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478377","source_sha256":"4a9a2852715a15cc7a51c1d0df0a977423474974b76ebfd53b8b12e63e2a62a5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1fc525c9eca2b2be9fedba84570f2c7c90363ffc0dc74dd07ad2adec00749c52","downloaded_from":"2026-09-09T23:35:43.343Z","last_downloaded_at":"2026-09-09T23:35:43.343Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478377","source_sha256":"4a9a2852715a15cc7a51c1d0df0a977423474974b76ebfd53b8b12e63e2a62a5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db4dfed4355fa6ddf117b253ab31815c9646f2c98f8fbf0cf945804daeed341b","downloaded_from":"2026-09-09T23:35:43.343Z","last_downloaded_at":"2026-09-09T23:35:43.343Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478377","source_sha256":"4a9a2852715a15cc7a51c1d0df0a977423474974b76ebfd53b8b12e63e2a62a5"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Clearance and Settlement","paragraphs":[{"citation":"320-940-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE0AFFFE-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Accrued interest earned on fixed-income securities shall be computed from the last coupon payment date up to the settlement date. </span></span><span class=\"sfragment\" id=\"sfr_EE0B0178-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This amount shall be paid to the seller of the instrument by the purchaser, who then receives the full periodic interest amount on the next coupon payment date. </span></span></div></div>","snippet":"Accrued interest earned on fixed-income securities shall be computed from the last coupon payment date up to the settlement date. This amount shall be paid to the seller of the instrument by the purchaser, who then recei…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54c230b2946ddf8f48e2c8f39214e61f6b3c6d6f184381110252228bfb6c52b8","downloaded_from":"2026-09-09T23:35:47.155Z","last_downloaded_at":"2026-09-09T23:35:47.155Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478914","source_sha256":"6b2cd929b7a22856b4aa33c4a3e46747c5d09d2de24b7e50b8decd7d0a8099e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5bff2c71418b29d77b44d06eefb1ce1f927cd5e27f6436626c7ff475bef69b37","downloaded_from":"2026-09-09T23:35:47.155Z","last_downloaded_at":"2026-09-09T23:35:47.155Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478914","source_sha256":"6b2cd929b7a22856b4aa33c4a3e46747c5d09d2de24b7e50b8decd7d0a8099e8"}},{"block":"Proprietary Trading Securities","heading":null,"paragraphs":[{"citation":"320-940-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE171BAB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A broker-dealer may buy and sell securities for its own account. </span></span><span class=\"sfragment\" id=\"sfr_EE171CB7-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Security positions resulting from proprietary trading shall be measured initially at <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"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.\"><span>fair value</span></a>, including both of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EE171D96-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Inventory </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EE171E73-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Obligations for short inventory positions. </span></span></div></li></ol></div></div>","snippet":"A broker-dealer may buy and sell securities for its own account. Security positions resulting from proprietary trading shall be measured initially at fair value, including both of the following:\n(a) Inventory\n(b) Obligat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5779b37472161103506dee652da2359eeca47829ab31a134d2f42056e8d76807","downloaded_from":"2026-09-09T23:35:47.155Z","last_downloaded_at":"2026-09-09T23:35:47.155Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478914","source_sha256":"6b2cd929b7a22856b4aa33c4a3e46747c5d09d2de24b7e50b8decd7d0a8099e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b14391d55f8c2b11c55e901593b2433c62e967c6a79f6bf241c09833a8673ae4","downloaded_from":"2026-09-09T23:35:47.155Z","last_downloaded_at":"2026-09-09T23:35:47.155Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478914","source_sha256":"6b2cd929b7a22856b4aa33c4a3e46747c5d09d2de24b7e50b8decd7d0a8099e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53f91bff821539e248e5cecbbf053ec2491f028f19c3877cca40785359e52997","downloaded_from":"2026-09-09T23:35:47.155Z","last_downloaded_at":"2026-09-09T23:35:47.155Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478914","source_sha256":"6b2cd929b7a22856b4aa33c4a3e46747c5d09d2de24b7e50b8decd7d0a8099e8"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":"Proprietary Trading Securities","heading":null,"paragraphs":[{"citation":"320-940-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE2850CF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Security positions resulting from proprietary trading shall be measured subsequently at <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"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.\"><span>fair value</span></a>, including both of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EE28524F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Inventory </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EE285399-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Obligations for short inventory positions. </span></span></div></li></ol></div></div>","snippet":"Security positions resulting from proprietary trading shall be measured subsequently at fair value, including both of the following:\n(a) Inventory\n(b) Obligations for short inventory positions.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e786618700e3eeec7751643ea8ddc51fd434c574c2bc5ef2769ec5b99bcef51b","downloaded_from":"2026-09-09T23:35:49.652Z","last_downloaded_at":"2026-09-09T23:35:49.652Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479447","source_sha256":"e9d92e70be7bd85d3342d17698210dc9f4877406aaae98bfee2493982f90b9f2"}},{"citation":"320-940-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE2854D5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Any unrealized gains or losses resulting from subsequent measurements of these to fair value shall be included in profit or loss. </span></span></div></div>","snippet":"Any unrealized gains or losses resulting from subsequent measurements of these to fair value shall be included in profit or loss.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e78f975a32557bf943ca60bc7b7e8b4ba5a7c0a94baa37ad38d45595227dd6c3","downloaded_from":"2026-09-09T23:35:49.652Z","last_downloaded_at":"2026-09-09T23:35:49.652Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479447","source_sha256":"e9d92e70be7bd85d3342d17698210dc9f4877406aaae98bfee2493982f90b9f2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:999b2b17de34ed787f5c324ad867024e87bd37f3cbffcf60866f8d2b915171d0","downloaded_from":"2026-09-09T23:35:49.652Z","last_downloaded_at":"2026-09-09T23:35:49.652Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479447","source_sha256":"e9d92e70be7bd85d3342d17698210dc9f4877406aaae98bfee2493982f90b9f2"}},{"block":"Proprietary Trading Securities","heading":"Trading Gains and Losses","paragraphs":[{"citation":"320-940-35-3","para":"35-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE285600-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The profit or loss shall be measured by the difference between the acquisition cost and the fair value. </span></span></div></div>","snippet":"The profit or loss shall be measured by the difference between the acquisition cost and the fair value.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3325fca808c9f0ed6ca8330cb982ac841857300158697c87eef82382325d9e32","downloaded_from":"2026-09-09T23:35:49.652Z","last_downloaded_at":"2026-09-09T23:35:49.652Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479447","source_sha256":"e9d92e70be7bd85d3342d17698210dc9f4877406aaae98bfee2493982f90b9f2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a35f59c104d29d00cc6b9971980e4e548e4caad378cf2fe43b8ed6a21078d491","downloaded_from":"2026-09-09T23:35:49.652Z","last_downloaded_at":"2026-09-09T23:35:49.652Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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guidance on consolidation of majority-owned investee entities, see paragraph <a href=\"/asc/810/940/#810-940-45-1\" class=\"xref\">940-810-45-1</a>.</div></div>","snippet":"For guidance on consolidation of majority-owned investee entities, see paragraph 940-810-45-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4079a3ff622588c5ac74f22e3d5b86da4a6f0d1e047c595e1b8f3fbdb7c204bc","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56a18c7e81d89a56bed43db7eef1973f42ec3642769faf0ba920069218367802","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}},{"block":"Proprietary Trading Securities","heading":"Balance Sheet","paragraphs":[{"citation":"320-940-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE384373-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Proprietary securities transactions entered into by a broker-dealer for trading or investment purposes shall be included in securities owned and securities sold, not yet purchased. </span></span></div></div>","snippet":"Proprietary securities transactions entered into by a broker-dealer for trading or investment purposes shall be included in securities owned and securities sold, not yet purchased.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:efe090c043499aa39d40be7bddda2fbfae878d88c0c0e7fd99e689d4136bbce8","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}},{"citation":"320-940-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE3846DB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Payables and receivables arising from unsettled <a href=\"/glossary/r/#regular-way-trades\" class=\"term\" title=\"Regular-way trades include both of the following: All transactions in exchange-traded financial instruments that are expected to settle within the standard settlement cycle of that exchange (for example, three days for U.S. exchanges) All transactions in cash-market-traded financial instruments that are expected to settle within the time frame prevalent or traditional for each specific instrument (for example, for U.S. government securities, one or two days).\"><span>regular-way trades</span></a> may be recorded net in an account titled net receivable (or payable) for unsettled regular-way trades. </span></span></div></div>","snippet":"Payables and receivables arising from unsettled regular-way trades may be recorded net in an account titled net receivable (or payable) for unsettled regular-way trades.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1567ed1f7a6b609f04bafc39f72c52484fa7ba9adcf2831623ad8cb86a007bf","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c64325d3e4ec83d7902779000187ae20667516d5fa125524d14090cbee2d21fd","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}},{"block":"Proprietary Trading Securities","heading":"Income Statement","paragraphs":[{"citation":"320-940-45-4","para":"45-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE384873-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The changes in the <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"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.\"><span>fair value</span></a> of fixed-income securities owned that were purchased at a discount or premium is composed of accreted interest income or changes in the fair value of the securities or both. </span></span><span class=\"sfragment\" id=\"sfr_EE3849B3-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Consideration should be given to reporting these components separately as interest income and trading gains and losses, respectively. </span></span></div></div>","snippet":"The changes in the fair value of fixed-income securities owned that were purchased at a discount or premium is composed of accreted interest income or changes in the fair value of the securities or both. Consideration sh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:656dc79c12111527fdd2ad5b8510974fecd97cdb701ffd46dc093c231611b8f0","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}},{"citation":"320-940-45-5","para":"45-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE384B08-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Trading gains and losses, which are composed of both realized and unrealized gains and losses, shall generally be presented net. </span></span></div></div>","snippet":"Trading gains and losses, which are composed of both realized and unrealized gains and losses, shall generally be presented net.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cfb5c441e62931e1132f985e856882c1d53ca0bb7bb6bce294de05b948cc3623","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}},{"citation":"320-940-45-6","para":"45-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE384C6C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The income and expense resulting from complex trading strategies as described in paragraph <a href=\"/asc/320/940/#320-940-05-3\" class=\"xref\">940-320-05-3</a> may be reflected net in the income statement, with disclosure of the gross components either on the face of the income statement or in the notes to financial statements. </span></span></div></div>","snippet":"The income and expense resulting from complex trading strategies as described in paragraph 940-320-05-3 may be reflected net in the income statement, with disclosure of the gross components either on the face of the inco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bcf6bceb54f4b2fb96b3ed72fb4a2610b8ddb4744fe9eee20aeaa9c40cab5a00","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:835a4b3ea8e5b7c473c281fcac062821b6c9312f5f025721504c3995800e89b6","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}},{"block":"Proprietary Trading Securities","heading":"Statement of Cash Flows","paragraphs":[{"citation":"320-940-45-7","para":"45-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE384DBD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Broker-dealers shall report their trading securities activities in the operating section of the statement of cash flows. </span></span></div></div>","snippet":"Broker-dealers shall report their trading securities activities in the operating section of the statement of cash flows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8836793a62ad6dce6d0c8d0dfcbc5024f5c25fd6dfce468eff06ac367135a331","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbc1407733146a5a571e86cf920932546ecc57c6a0849a1aac0305e54b905369","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a60fb8db31dafe4620f60f2e5223dfbdf9cbeb57e346f9df127881119b796a97","downloaded_from":"2026-09-09T23:35:52.462Z","last_downloaded_at":"2026-09-09T23:35:52.462Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479035","source_sha256":"f15e9b806d880ba2d00dc4416e5b8c3830201e78677568e3600199d4143a65a6"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"320-940-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EE44A9E3-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the gross income and expense components resulting from complex trading strategies are not disclosed on the face of the income statement in accordance with paragraph <a href=\"/asc/320/940/#320-940-45-6\" class=\"xref\">940-320-45-6</a>, they shall be disclosed in the notes to financial statements. </span></span></div></div>","snippet":"If the gross income and expense components resulting from complex trading strategies are not disclosed on the face of the income statement in accordance with paragraph 940-320-45-6, they shall be disclosed in the notes t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a74b26a00d6254fe0154df1211cc1b440a1251ede65b416ca8471fa9c38be005","downloaded_from":"2026-09-09T23:35:55.220Z","last_downloaded_at":"2026-09-09T23:35:55.220Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479048","source_sha256":"83e1f03b42129ac187eeaf3cdd41b13deaf8521c5deed442df84716ca794dad2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9182b91d17d5ccb7435f5fc1e95c5757e53332497ba644b587f62ce2bf2b1662","downloaded_from":"2026-09-09T23:35:55.220Z","last_downloaded_at":"2026-09-09T23:35:55.220Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479048","source_sha256":"83e1f03b42129ac187eeaf3cdd41b13deaf8521c5deed442df84716ca794dad2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44370f7e1473150efa2e18428d209ffd388e5f489d56ece826b4de4cf0bf6494","downloaded_from":"2026-09-09T23:35:55.220Z","last_downloaded_at":"2026-09-09T23:35:55.220Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479048","source_sha256":"83e1f03b42129ac187eeaf3cdd41b13deaf8521c5deed442df84716ca794dad2"}}],"enrichment":{"summary":"This subtopic governs how broker-dealers account for investments in debt and equity securities, covering both clearance/settlement activities (General) and proprietary trading (Proprietary Trading Securities). The core rules are that all regular-way trades are reflected on a trade-date basis (320-940-25-1), and proprietary security positions — both inventory and obligations for short inventory positions — are measured initially and subsequently at fair value with unrealized gains and losses included in profit or loss (320-940-30-2, 35-1, 35-2).","key_points":["The statement of financial condition shall reflect all regular-way trades on an accrual or trade-date basis, because risk, benefits, and economic potentials are conveyed at the trade date (320-940-25-1).","A purchase for the broker-dealer's own account is recorded in inventory with a corresponding credit to net receivable or payable for unsettled regular-way trades; if exchange does not occur on the contracted settlement date, the transaction is reported as a fail-to-receive or fail-to-deliver (320-940-25-2).","Accrued interest on fixed-income securities is computed from the last coupon payment date to the settlement date and is paid by the purchaser to the seller (320-940-30-1).","Security positions from proprietary trading — inventory and obligations for short inventory positions — are measured initially and subsequently at fair value, with unrealized gains or losses included in profit or loss measured as the difference between acquisition cost and fair value (320-940-30-2, 35-1 through 35-3).","Proprietary securities transactions for trading or investment purposes are included in securities owned and securities sold, not yet purchased; payables and receivables from unsettled regular-way trades may be recorded net (320-940-45-2, 45-3).","Trading gains and losses (realized and unrealized) are generally presented net, and income and expense from complex trading strategies may be reflected net on the income statement (320-940-45-5, 45-6).","Trading securities activities are reported in the operating section of the statement of cash flows, and gross components of complex trading strategies not shown on the face of the income statement must be disclosed in the notes (320-940-45-7, 50-1)."],"categories":["Industry-specific","Fair value","Presentation","Financial instruments"],"audience_level":"intermediate","student_note":"This is the broker-dealer industry rule that carries trading inventory at fair value through earnings, bypassing the trading/AFS/HTM classification scheme; common mistakes are using settlement-date rather than trade-date accounting and forgetting that short positions (\"securities sold, not yet purchased\") are also carried at fair value.","related_topics":["940-10","940-320","940-325","940-810","320-10","820-10"],"key_concepts":["broker-dealer","regular-way trades","trade-date accounting","proprietary trading","securities sold, not yet purchased","fair value measurement","fails-to-deliver and fails-to-receive","complex trading strategies"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea13f097305599e9b1a0a668e100d1fcd45b5ea1ca2b54314c355a98ad8c456c","downloaded_from":"2026-09-09T23:35:32.391Z","last_downloaded_at":"2026-09-09T23:35:58.415Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"940-20","title":"Broker-Dealer Activities","topic_title":"Financial Services—Brokers and Dealers","score":0.8666,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e6d5d4d8a684ba12847bc73fc3dbd1945638e2ae904ec88c62a08f7fd9982e2d","downloaded_from":"2026-09-10T02:13:27.861Z","last_downloaded_at":"2026-09-10T02:13:58.835Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"325-940","title":"Financial Services—Brokers and Dealers","topic_title":"Investments—Other","score":0.8128,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a7bae88c6e5a3c985861a97e31e03df1d6f5d191f2eeaf8a0e37769d2367bf70","downloaded_from":"2026-09-09T23:45:28.689Z","last_downloaded_at":"2026-09-09T23:45:50.146Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-940","title":"Financial Services—Brokers and Dealers","topic_title":"Liabilities","score":0.7631,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00c5d8aba17ecef0161e458a20caa832343f4cd8eef4cd75ac51d353f3e70ac2","downloaded_from":"2026-09-10T00:18:03.082Z","last_downloaded_at":"2026-09-10T00:18:22.655Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"340-940","title":"Financial Services—Brokers and Dealers","topic_title":"Other Assets and Deferred 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