{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/946/#30-initial-measurement","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.","topic":"320","topic_title":"Investments—Debt Securities","subtopic":"320-946","subtopic_title":"Financial Services—Investment Companies","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"320-946-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_11E54D70-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An investment company shall initially measure its investments in debt and equity securities at their transaction price. The transaction price shall include commissions and other charges that are part of the purchase transaction.</span></span></div></div>","snippet":"An investment company shall initially measure its investments in debt and equity securities at their transaction price. The transaction price shall include commissions and other charges that are part of the purchase tran…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e6e989a2b64bf213f396f73c932ec924c74044a1e7cedd885fdfc1715fe18064","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22facddc8346c5d0f59c25f984dc375a413321521ec15c118ed78ef7ca019823","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}},{"block":null,"heading":"Securities Received in a Spinoff","paragraphs":[{"citation":"320-946-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_11E54F1D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An investment company may receive securities in a spinoff wherein the entity in which the investment company has invested spins off a portion of its operations. </span></span><span class=\"sfragment\" id=\"sfr_11E55081-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A portion of the cost of the securities held shall be allocated to the securities received in the spinoff. </span></span></div></div>","snippet":"An investment company may receive securities in a spinoff wherein the entity in which the investment company has invested spins off a portion of its operations. A portion of the cost of the securities held shall be alloc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a93b06b8b7457eb56f25c869aae718d42aafec9b824e6a9b8aac8762a61875f","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}},{"citation":"320-946-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_11E551E0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount allocated to securities received in a spinoff shall be based on the ratio of the fair value of the securities received to the sum of the fair value of such securities and the fair value of the original securities held by the investment company of the entity effecting the spinoff. </span></span></div></div>","snippet":"The amount allocated to securities received in a spinoff shall be based on the ratio of the fair value of the securities received to the sum of the fair value of such securities and the fair value of the original securit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d14ccde07ddc4271f6c9875f26b5d7be39dd8a9225f7f38b73502800539c41a5","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5573f75f69cc4fb162f7d897810f369bf0c0fafa2f7a7ea73eeed6d4d7e0918a","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}},{"block":null,"heading":"High-Yield Debt Securities","paragraphs":[{"citation":"320-946-30-4","para":"30-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_11E5535A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><a href=\"/glossary/p/#payment-in-kind-bonds\" class=\"term\" title=\"Bonds in which the issuer has the option at each interest payment date of making interest payments in cash or in additional debt securities. Those additional debt securities are referred to as baby or bunny bonds. Baby bonds generally have the same terms, including maturity dates and interest rates, as the original bonds (parent payment-in-kind bonds). Interest on baby bonds may also be paid in cash or in additional like-kind debt securities at the option of the issuer.\"><span>Payment-in-kind bonds</span></a> typically trade flat (that is, interest receivable is included in the market value quote obtained each day). Accordingly, that portion of the quote representing interest income needs to be identified. The sum of the acquisition amount of the bond and the discount to be amortized shall not exceed the undiscounted future cash collections that are both reasonably estimable and probable. </span></span></div></div>","snippet":"Payment-in-kind bonds typically trade flat (that is, interest receivable is included in the market value quote obtained each day). Accordingly, that portion of the quote representing interest income needs to be identifie…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c986ba7b8fa1d51d96dd939f48302d41b791a1d075e041f43ae81bac3eeb6856","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:645373a176d998997ed4c05fe1243bcd0975b6d97bd7679a6b3245395a9c14af","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ff4b3bf311cdd0e196118a70c9eaee701574acb88f9e3188c5148ee2d050785","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ff4b3bf311cdd0e196118a70c9eaee701574acb88f9e3188c5148ee2d050785","downloaded_from":"2026-09-09T23:36:45.369Z","last_downloaded_at":"2026-09-09T23:36:45.369Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478618","source_sha256":"966bea06a712b520b61df5e93a55103086d0eae8b7622272c1025d986c8bbfe2"}}