# ASC 320-942: Investments—Debt Securities — Financial Services—Depository and Lending Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/942/) 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): 2026-09-09T23:36:00.347Z to 2026-09-09T23:36:16.315Z Record version: sha256:2c15a0a263f020f69da44299a6a46d2c60b3f5c6bab5094a36c13617994d7200 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-942: Investments—Debt Securities — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "summary": "This industry Subtopic supplements ASC 320-10 for depository and financial institutions (banks, thrifts, savings banks, credit unions, finance companies, insurance entities), addressing how they measure and disclose investments in debt and equity securities. Its core content is disclosure: securities must be broken out by prescribed major security types and by at least four maturity groupings, collateral pledged must be disclosed, and the accounting policy (including basis for classification) explained. It also confirms that amortization or accretion of debt securities generally runs from the purchase date to maturity, and that bank regulators' general divestiture authority does not by itself defeat held-to-maturity classification.", "key_points": [ "The period of amortization or accretion for debt securities generally extends from the purchase date to the maturity date unless other Topics apply (320-942-35-1).", "For purposes of the ASC 320-10-50-1 through 50-3 and 50-5 through 50-5C disclosures, 'financial institutions' includes banks, savings and loan associations, savings banks, credit unions, finance companies, and insurance entities (320-942-50-1).", "Disclosures must present prescribed major security types—equity securities segregated by industry type, entity size, or investment objective; U.S. Treasury/agency, state and political subdivision, foreign government, and corporate debt; residential and commercial mortgage-backed securities; collateralized debt obligations; and other debt obligations (320-942-50-2).", "Mutual funds that invest only in U.S. government debt securities may be shown separately rather than grouped with other equity securities (320-942-50-2A).", "The net carrying amount of debt securities must be disclosed in at least four maturity groupings (within 1 year, 1–5 years, 5–10 years, after 10 years), with securities lacking a single maturity date (e.g., mortgage-backed securities) either shown separately or allocated with the basis of allocation disclosed (320-942-50-3); public business entities must also disclose fair value by the same groupings (320-942-50-3A).", "The carrying amount of investment assets pledged as collateral for public funds, repurchase agreements, and other borrowings, if not otherwise disclosed under Topic 860, must be disclosed in the notes, and the notes must explain the institution's securities accounting policy including the basis for classification (320-942-50-4; 320-942-50-5).", "A regulator's general authority to require divestiture is not an automatic impairment of the ability to hold a security to maturity, though specific facts and circumstances may indicate the institution lacks that ability (320-942-55-1; 320-942-55-2)." ], "categories": [ "Disclosure", "Financial instruments", "Industry-specific", "Subsequent measurement" ], "audience_level": "intermediate", "student_note": "This is where bank and insurance securities-portfolio footnote disclosures come from—expect questions on the four maturity buckets and the required major security types. A common misunderstanding is that regulators' power to force a sale destroys held-to-maturity intent; 320-942-55-1 says the general authority alone does not, only specific facts and circumstances can.", "related_topics": [ "320-10", "942-10", "942-320", "948-310", "860", "825" ], "key_concepts": [ "major security types", "maturity groupings disclosure", "held-to-maturity classification", "amortization and accretion period", "pledged collateral disclosure", "financial institutions", "mortgage-backed securities", "regulator divestiture authority" ] } ``` Source downloaded (UTC): 2026-09-09T23:36:00.347Z to 2026-09-09T23:36:00.347Z Record version: sha256:db6532188473f0215b0cf06cc89629cc8026bcc1fe97542c0ad5a44c9c1ffd5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/942/#00-status) SEC content: no ##### [320-942-00-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:00.347Z to 2026-09-09T23:36:00.347Z Record version: sha256:effc54d128899b6c9a7c550974c72ba17997b795e0b4a05569cffbc35ca8677f 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
942-320-35-1AmendedAccounting Standards Update No. 2017-0803/30/2017
942-320-50-1AmendedAccounting Standards Update No. 2020-0303/09/2020
942-320-50-2 through 50-4
AmendedAccounting Standards Update No. 2025-1112/08/2025
942-320-50-2AAddedAccounting Standards Update No. 2016-0101/05/2016
942-320-50-3AmendedAccounting Standards Update No. 2020-0303/09/2020
942-320-50-3AmendedAccounting Standards Update No. 2019-0404/25/2019
942-320-50-3AAmendedAccounting Standards Update No. 2020-0303/09/2020
942-320-50-3AAddedAccounting Standards Update No. 2019-0404/25/2019
Source downloaded (UTC): 2026-09-09T23:36:03.144Z to 2026-09-09T23:36:03.144Z Record version: sha256:bfdf301440c998f6e83ea73acd7d508adf4fc11130f45dc1aa5cad3cfac82f1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/942/#05-overview-and-background) SEC content: no ##### [320-942-05-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:03.144Z to 2026-09-09T23:36:03.144Z Record version: sha256:16765df65681b94808194b08bb7c9294b1bfe5be4c363378b03c9099c7ed014a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance regarding the recognition, measurement and disclosure of debt and equity securities by financial institutions. Source downloaded (UTC): 2026-09-09T23:36:05.247Z to 2026-09-09T23:36:05.247Z Record version: sha256:809baf384cdbc1b61933b1e79447ed5e6a7419b296015edafc3361ea612f8a6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-942-15-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:05.247Z to 2026-09-09T23:36:05.247Z Record version: sha256:dd30496fab9890c8a64d668193094eff1d4d2a8dbf4e1f68a59912d75e3a73d8 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 942-10-15. Source downloaded (UTC): 2026-09-09T23:36:07.144Z to 2026-09-09T23:36:07.144Z Record version: sha256:b156843120c144d96c7f18e2a3063f456d4c4dbcf7db1bfde2200fef9c695cd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-942-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/942/#35-subsequent-measurement) SEC content: no #### Amortization or Accretion Period ##### [320-942-35-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:07.144Z to 2026-09-09T23:36:07.144Z Record version: sha256:58f947d51998f80a39fea3da2c1c1854a8a70fd9cdf342b4605eb59814c63268 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The period of amortization or accretion for debt securities shall generally extend from the purchase date to the maturity date, unless other Topics are applicable. Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:8652bdd8e21a8f696a232c3318fd4dc71947609346849024bcc9877c1f3e1145 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-942-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/942/#50-disclosure) SEC content: no ##### [320-942-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:7466db4b710d0056766817516ad8a5d29a7c6858d201ba7bdfd1ca9016fa551b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of the disclosure requirements of paragraphs [320-10-50-1 through 50-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1) and [320-10-50-5 through 50-5C](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5), the term _financial institutions_ includes banks, savings and loan associations, savings banks, credit unions, finance companies, and insurance entities. ##### [320-942-50-1A](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:d1600fa69752d2733f772fb7dda9de5e169ac1ae0f9c2d812137c62e87235e55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures in paragraphs [942-320-50-1 through 50-3](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1) are required for interim and annual periods. ##### [320-942-50-2](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:c7626b281c98a6ec41b01656c9e39eced82ca660af9024342792b810a991661f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In complying with the requirements in paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1), financial institutions shall include in their disclosure all of the following major security types, although additional types also may be necessary: 1. a Equity securities, segregated by any one of the following: 1. 1 Industry type 2. 2 Entity size 3. 3 Investment objective. 2. b Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 3. c Debt securities issued by states of the United States and political subdivisions of the states 4. d Debt securities issued by foreign governments 5. e Corporate debt securities 6. f Residential mortgage-backed securities 7. ff Commercial mortgage-backed securities 8. fff Collateralized debt obligations 9. g Other debt obligations. 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)In complying with the requirements in paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1), financial institutions shall include in their disclosure in interim and annual reporting periods all of the following major security types, although additional types also may be necessary: 1. a Equity securities, segregated by any one of the following: 1. 1 Industry type 2. 2 Entity size 3. 3 Investment objective. 2. b Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies 3. c Debt securities issued by states of the United States and political subdivisions of the states 4. d Debt securities issued by foreign governments 5. e Corporate debt securities 6. f Residential mortgage-backed securities 7. ff Commercial mortgage-backed securities 8. fff Collateralized debt obligations 9. g Other debt obligations. ##### [320-942-50-2A](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-2A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:8538ad974134ef1e60e3fd887ab85762f1c4878f53f386833848a4039d8ebab0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in mutual funds that invest only in U.S. government debt securities may be shown separately rather than grouped with other equity securities in the disclosures by major security type required by paragraph [942-320-50-2](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-2). 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, investments in mutual funds that invest only in U.S. government debt securities may be shown separately rather than grouped with other equity securities in the disclosures by major security type required by paragraph [942-320-50-2](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-2). ##### [320-942-50-3](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:acf18a10516c967f7d00af0566657e06d83840a173880742a3ce817fe236e56d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In complying with this requirement, financial institutions shall disclose the net carrying amount of debt securities based on at least 4 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)In complying with this requirement, financial institutions shall disclose the net carrying amount of debt securities in interim and annual reporting periods based on at least 4 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. ##### [320-942-50-3A](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-3A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:d55a3f6623e74fe487177736823508330af2ae6566988a89ae88c3339b396091 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 based on at least 4 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)A financial institution that is a public business entity shall disclose the fair value of the debt securities in interim and annual reporting periods based on at least 4 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. #### Other Securities ##### [320-942-50-4](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:519e5c9f5055aabd56300f6c6dba581fced729c6bf02eda2915da2a399a3f5a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying amount of investment assets that serve as collateral to secure public funds, securities sold under repurchase agreements, and other borrowings, that are not otherwise disclosed under Topic 860, shall be disclosed in the notes to financial statements. 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, the carrying amount of investment assets that serve as collateral to secure public funds, securities sold under repurchase agreements, and other borrowings, that are not otherwise disclosed under Topic 860, shall be disclosed in the notes to financial statements. ##### [320-942-50-5](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:10.916Z to 2026-09-09T23:36:10.916Z Record version: sha256:013494752c7cb258314aa8938ed2551ad7685fd403d3d79c65bab1ed740124d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The notes to financial statements shall include an explanation of the institution's accounting policy for securities, including the basis for classification. Source downloaded (UTC): 2026-09-09T23:36:12.630Z to 2026-09-09T23:36:12.630Z Record version: sha256:d89633b1608baaaf9bd7060310dd8935f26987ad97a1f1ef18bacc013aecb64f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-942-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/942/#55-implementation-guidance-and-illustrations) SEC content: no #### Financial Institutions' Ability to Hold Mortgage Securities to Maturity ##### [320-942-55-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:12.630Z to 2026-09-09T23:36:12.630Z Record version: sha256:7bf18c11436938f46abe712dddf2c6fbc3d2a8b978d82facae955a0043747314 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regulators of financial institutions can, under appropriate circumstances, conclude that the continued ownership of any asset represents an undue safety and soundness risk to an institution and, accordingly, require the divestiture of that asset. It was not intended that a regulator's overall divestiture authority be considered as an automatic impairment of an institution's ability to hold any security to maturity, since impairment would have precluded any use of the held-to-maturity category by regulated financial institutions. However, specific facts and circumstances could indicate that an institution does not have the ability to hold a security to maturity. ##### [320-942-55-2](https://asc.understandingaccounting.org/asc/320/942/#320-942-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:12.630Z to 2026-09-09T23:36:12.630Z Record version: sha256:daefe4b7cd248d051d7dd8d8986b27a01925ee727342967ed24858c1ba4a1972 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The federal regulatory agencies note that only in rare circumstances have examiners required a financial institution to dispose of mortgage securities that have become high-risk after acquisition. Such circumstances have occurred only when examiners have determined that there is a significant safety and soundness concern with respect to a particular institution that has arisen from its holdings of these assets. The agencies note that examiners' divestiture authority is not unique to high-risk mortgage securities but rather is the same authority they have with respect to any other security or asset. Thus, the mere existence of examiners' divestiture authority for high-risk mortgage securities should not preclude an institution from concluding it has the intent and ability to hold to maturity those securities that were non-high-risk when acquired. ##### [320-942-55-3](https://asc.understandingaccounting.org/asc/320/942/#320-942-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:12.630Z to 2026-09-09T23:36:12.630Z Record version: sha256:f7e551c2ba1968c91e9738af6664280bc41a46c87e064a717aecd9efdc2a805f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [948-310-25-1 through 25-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-25-1) , [948-310-30-4](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-4), and [948-310-35-4 through 35-5](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-4) for additional guidance concerning mortgage loans held as long-term investments.