# ASC 320-946-30: Investments—Debt Securities — Financial Services—Investment Companies — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/320/946/#30-initial-measurement)

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): 2026-09-09T23:36:45.369Z to 2026-09-09T23:36:45.369Z

Record version: sha256:4ff4b3bf311cdd0e196118a70c9eaee701574acb88f9e3188c5148ee2d050785

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 320-946-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/320/946/#30-initial-measurement)

SEC content: no

##### [320-946-30-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-30-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:36:45.369Z to 2026-09-09T23:36:45.369Z

Record version: sha256:e6e989a2b64bf213f396f73c932ec924c74044a1e7cedd885fdfc1715fe18064

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

#### Securities Received in a Spinoff

##### [320-946-30-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-30-2)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:36:45.369Z to 2026-09-09T23:36:45.369Z

Record version: sha256:4a93b06b8b7457eb56f25c869aae718d42aafec9b824e6a9b8aac8762a61875f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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 allocated to the securities received in the spinoff.

##### [320-946-30-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-30-3)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:36:45.369Z to 2026-09-09T23:36:45.369Z

Record version: sha256:d14ccde07ddc4271f6c9875f26b5d7be39dd8a9225f7f38b73502800539c41a5

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

#### High-Yield Debt Securities

##### [320-946-30-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-30-4)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:36:45.369Z to 2026-09-09T23:36:45.369Z

Record version: sha256:c986ba7b8fa1d51d96dd939f48302d41b791a1d075e041f43ae81bac3eeb6856

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Payment-in-kind bonds](https://asc.understandingaccounting.org/glossary/p/#payment-in-kind-bonds "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.") 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.