# ASC 320-940: Investments—Debt Securities — Financial Services—Brokers and Dealers Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/940/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:35:32.391Z to 2026-09-09T23:35:58.415Z Record version: sha256:acb469d3e5011ea62a6ef4836fb66d1a7445a041c7d71456e2f21b4464139998 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940: Investments—Debt Securities — Financial Services—Brokers and Dealers ### Machine-generated study aids ```json { "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" ] } ``` Source downloaded (UTC): 2026-09-09T23:35:32.391Z to 2026-09-09T23:35:32.391Z Record version: sha256:d207f5396314bb8b7377b2f75100ecefd7c531377c6c51a3fd88feea43c91ee2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/940/#00-status) SEC content: no ##### [320-940-00-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:32.391Z to 2026-09-09T23:35:32.391Z Record version: sha256:5fd8b91ba4a8384138ab02162638f4f08cda973e73d2afb4ba478528a09eca36 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
Financial Asset (2nd def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Repurchase AgreementAmendedAccounting Standards Update No. 2014-1106/12/2014
Repurchase Agreement (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Repurchase Agreement (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Reverse Repurchase AgreementSupersededAccounting Standards Update No. 2014-0603/14/2014
940-320-05-3AmendedAccounting Standards Update No. 2014-0603/14/2014
940-320-30-2AmendedAccounting Standards Update No. 2012-0410/01/2012
940-320-35-1 through 35-3
AmendedAccounting Standards Update No. 2012-0410/01/2012
940-320-45-4AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:1ea6da8672c2b55483e1d06f305bfd382f697a7aa18dec2391b662ce8756fc33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/940/#05-overview-and-background) SEC content: no ##### [320-940-05-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:56ce04913e2aeffc2068f7f12bec1f1c28b9215b3df454e137587bd36c765813 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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: 1. a General 2. b Proprietary Trading Securities. ##### [320-940-05-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:b8f0f211b95bce9afa94c186ddac41999d131a04c8942e813c27a80b93e1227a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance relating to clearance and settlement activities. ### Proprietary Trading Securities ##### [320-940-05-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:27c795fb9e66fd81efc8b5b00d9e39c22087ab7abd90c97eec0cc54eb6d20afe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Proprietary Trading Securities Subsections provide guidance on accounting for [proprietary transactions](https://asc.understandingaccounting.org/glossary/p/#proprietary-transactions "Transactions in financial instruments that broker-dealers execute for their own account."). A broker-dealer may buy and sell securities for its own account. Broker-dealers frequently enter into matched-stock borrow and loan transactions as a finder or conduit, or enter into [repurchase](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement "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.") and reverse repurchase transaction agreements as part of a matched-book trading strategy. 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, [box spreads](https://asc.understandingaccounting.org/glossary/b/#box-spread "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."), conversions, and reversals). #### Regular-Way Trades ##### [320-940-05-4](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:91085638990ab1645f3bfcc154846d6d78b491f8146b245a7d12d5d393a3d5bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The risk of nonperformance of [regular-way trades](https://asc.understandingaccounting.org/glossary/r/#regular-way-trades "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).") is minimal given all of the following: 1. a They are fully collateralized on the trade date. 2. b The period of time between trade date and settlement date is reasonably short. 3. c 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. Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:699a6d3db7a5ddefea1aa26cc805605239cb298c86fe37b1833d96edf46fc8b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/940/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-940-15-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:ffb4a53420aa4c0c78f7e68460ef25823401b63868240e4af9d80331fa92ca33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Other Considerations ##### [320-940-15-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:d98584ee7f83d5f4ddf307ed906660f702ed4c177d200a9db208aaa59295917f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/325/940/#325-940-05-1), [940-325-30-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-30-1), and [940-325-35-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-35-1)), see Subtopic 940-325. ### Proprietary Trading Securities #### Overall Guidance ##### [320-940-15-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:358d9c85a55de966f51e751758053430f901569a63948ee09f0fd7cfe637f8d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 securities. Source downloaded (UTC): 2026-09-09T23:35:43.343Z to 2026-09-09T23:35:43.343Z Record version: sha256:db4dfed4355fa6ddf117b253ab31815c9646f2c98f8fbf0cf945804daeed341b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/940/#25-recognition) SEC content: no ### Proprietary Trading Securities ##### [320-940-25-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:43.343Z to 2026-09-09T23:35:43.343Z Record version: sha256:221798dd1c93cc5ce1992d1aad22133d6c3b7691cad1a7157cba08cc8d4dd420 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of financial condition shall reflect all [regular-way trades](https://asc.understandingaccounting.org/glossary/r/#regular-way-trades "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).") 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 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. ##### [320-940-25-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:43.343Z to 2026-09-09T23:35:43.343Z Record version: sha256:23f2bfcae5950f074fc8e61454fe5e7ec1df521baeef98077651a72b88f1b382 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. If the exchange does not occur on the contracted settlement date (referred to as a [fail-to-deliver](https://asc.understandingaccounting.org/glossary/f/#fail-to-deliver "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.") or [fail-to-receive](https://asc.understandingaccounting.org/glossary/f/#fail-to-receive "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.")), these transactions shall be recognized on the statement of financial condition as fails-to-receive or fails-to-deliver. Source downloaded (UTC): 2026-09-09T23:35:47.155Z to 2026-09-09T23:35:47.155Z Record version: sha256:53f91bff821539e248e5cecbbf053ec2491f028f19c3877cca40785359e52997 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/320/940/#30-initial-measurement) SEC content: no #### Clearance and Settlement ##### [320-940-30-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:47.155Z to 2026-09-09T23:35:47.155Z Record version: sha256:54c230b2946ddf8f48e2c8f39214e61f6b3c6d6f184381110252228bfb6c52b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 receives the full periodic interest amount on the next coupon payment date. ### Proprietary Trading Securities ##### [320-940-30-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:47.155Z to 2026-09-09T23:35:47.155Z Record version: sha256:5779b37472161103506dee652da2359eeca47829ab31a134d2f42056e8d76807 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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."), including both of the following: 1. a Inventory 2. b Obligations for short inventory positions. Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:05ad28d69103987302324149bb1f18c890a98e7afd11aae22f03c63961c64043 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/940/#35-subsequent-measurement) SEC content: no ### Proprietary Trading Securities ##### [320-940-35-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:e786618700e3eeec7751643ea8ddc51fd434c574c2bc5ef2769ec5b99bcef51b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Security positions resulting from proprietary trading 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."), including both of the following: 1. a Inventory 2. b Obligations for short inventory positions. ##### [320-940-35-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:e78f975a32557bf943ca60bc7b7e8b4ba5a7c0a94baa37ad38d45595227dd6c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any unrealized gains or losses resulting from subsequent measurements of these to fair value shall be included in profit or loss. #### Trading Gains and Losses ##### [320-940-35-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:3325fca808c9f0ed6ca8330cb982ac841857300158697c87eef82382325d9e32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The profit or loss shall be measured by the difference between the acquisition cost and the fair value. Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:a60fb8db31dafe4620f60f2e5223dfbdf9cbeb57e346f9df127881119b796a97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/940/#45-other-presentation-matters) SEC content: no ### Proprietary Trading Securities #### Consolidation ##### [320-940-45-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:4079a3ff622588c5ac74f22e3d5b86da4a6f0d1e047c595e1b8f3fbdb7c204bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on consolidation of majority-owned investee entities, see paragraph [940-810-45-1](https://asc.understandingaccounting.org/asc/810/940/#810-940-45-1). #### Balance Sheet ##### [320-940-45-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:efe090c043499aa39d40be7bddda2fbfae878d88c0c0e7fd99e689d4136bbce8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [320-940-45-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:d1567ed1f7a6b609f04bafc39f72c52484fa7ba9adcf2831623ad8cb86a007bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payables and receivables arising from unsettled [regular-way trades](https://asc.understandingaccounting.org/glossary/r/#regular-way-trades "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).") may be recorded net in an account titled net receivable (or payable) for unsettled regular-way trades. #### Income Statement ##### [320-940-45-4](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:656dc79c12111527fdd2ad5b8510974fecd97cdb701ffd46dc093c231611b8f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The changes in the [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.") 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 should be given to reporting these components separately as interest income and trading gains and losses, respectively. ##### [320-940-45-5](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:cfb5c441e62931e1132f985e856882c1d53ca0bb7bb6bce294de05b948cc3623 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Trading gains and losses, which are composed of both realized and unrealized gains and losses, shall generally be presented net. ##### [320-940-45-6](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:bcf6bceb54f4b2fb96b3ed72fb4a2610b8ddb4744fe9eee20aeaa9c40cab5a00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The income and expense resulting from complex trading strategies as described in paragraph [940-320-05-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-3) 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. #### Statement of Cash Flows ##### [320-940-45-7](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:8836793a62ad6dce6d0c8d0dfcbc5024f5c25fd6dfce468eff06ac367135a331 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Broker-dealers shall report their trading securities activities in the operating section of the statement of cash flows. Source downloaded (UTC): 2026-09-09T23:35:55.220Z to 2026-09-09T23:35:55.220Z Record version: sha256:44370f7e1473150efa2e18428d209ffd388e5f489d56ece826b4de4cf0bf6494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/940/#50-disclosure) SEC content: no ##### [320-940-50-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:55.220Z to 2026-09-09T23:35:55.220Z Record version: sha256:a74b26a00d6254fe0154df1211cc1b440a1251ede65b416ca8471fa9c38be005 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-6), they shall be disclosed in the notes to financial statements.