{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/958/#15-scope-and-scope-exceptions","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":"320-958","subtopic_title":"Not-for-Profit Entities","section":{"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":"320-958-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15, with specific exceptions noted below.
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The application of this Subtopic by not-for-profit, business-oriented health care entities, as described in paragraph 954-10-05-2(b), is subject to additional guidance in Subtopic 954-220.
","snippet":"The application of this Subtopic by not-for-profit, business-oriented health care entities, as described in paragraph 954-10-05-2(b), is subject to additional guidance in Subtopic 954-220.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e18da18702d9518f42090a90dc10f4ecf5fbbf86d0f7878d7ec4b57b53b3391","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:efb0107cedb757d18dd6cd989809ad89b46a0e220256266e9899a5335249f83f","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}},{"block":null,"heading":"Instruments","paragraphs":[{"citation":"320-958-15-2","para":"15-2","html":"
The measurement standards in Section 958-320-35 apply to all investments in debt securities, including mortgage-backed securities.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
","snippet":"The measurement standards in Section 958-320-35 apply to all investments in debt securities, including mortgage-backed securities.\n(a) Subparagraph superseded by Accounting Standards Update No. 2016-01.\n(b) Subparagraph …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6fa9cf84102042ccb45e163ce5d40401f0a0a37dbfeb4908aa464e021232d7ed","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}},{"citation":"320-958-15-3","para":"15-3","html":"
The reporting standards in paragraphs
958-220-45-22 through 45-30
and Section 958-320-50 apply to all investments held by not-for-profit entities (NFPs), except those described in the following paragraph.
","snippet":"The reporting standards in paragraphs 958-220-45-22 through 45-30 and Section 958-320-50 apply to all investments held by not-for-profit entities (NFPs), except those described in the following paragraph.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f614653c17be6511af7e23d146137ccaceb0f85de0ccc1c0a40b95aab71e5ce","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}},{"citation":"320-958-15-4","para":"15-4","html":"
The guidance in this Subtopic does not apply to any of the following:
  1. a
    An investment in equity securities that is accounted for under the equity method in accordance with paragraph 958-810-15-4 or in accordance with Subtopic 958-321.
  2. b
    An investment in a subsidiary that is consolidated in accordance with paragraph 958-810-15-4 or
    958-810-25-2 through 25-4
    .
  3. c
    An investment in a derivative instrument that is subject to the requirements of Topic 815. That is, an investment in an option on securities shall be accounted for under the requirements of Subtopic 815-10 if the option meets the definition of a derivative instrument, including the criteria for net settlement in paragraph 815-10-15-99.
  4. d
    Short sales of securities (sales of securities that the seller does not own at the time of sale), because they are obligations to deliver securities, not investments. Short sale obligations are addressed in the guidance for certain industries (see paragraph 940-320-35-1 with respect to broker-dealers and paragraph 942-405-35-1 with respect to depository institutions). For guidance on evaluating whether a short sale transaction involves a derivative instrument, see paragraph 815-10-55-57.
  5. e
    Investments held by a financially interrelated entity. See Subtopic 958-20 for reporting interests in the net assets of a financially interrelated entity.
","snippet":"The guidance in this Subtopic does not apply to any of the following:\n(a) An investment in equity securities that is accounted for under the equity method in accordance with paragraph 958-810-15-4 or in accordance with S…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43904005fb6d1e643bceebd39d0263b132b7d144e9f9112e2570d4e18cce74e4","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}},{"citation":"320-958-15-5","para":"15-5","html":"
If an investment would otherwise be in the scope of this Subtopic and it has within it an embedded derivative that is subject to the requirements of Topic 815, the host contract (as described in paragraph 815-15-05-1) remains within the scope of this Subtopic.
","snippet":"If an investment would otherwise be in the scope of this Subtopic and it has within it an embedded derivative that is subject to the requirements of Topic 815, the host contract (as described in paragraph 815-15-05-1) re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4d2942f6c78738d167aed9264b9dc6e7cc9d282d85280f27bfdc86335afedaf1","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}},{"citation":"320-958-15-6","para":"15-6","html":"
When determining whether an instrument is within the scope of this Subtopic, an entity shall not look through the form of its investment to the nature of the securities held by an investee. For example, an entity invests in a limited partnership interest (or a venture capital entity) that meets the definition of an equity security. However, substantially all of the partnership's assets consist of investments in debt securities. In the specific situation described, the investment would be considered an equity security.
","snippet":"When determining whether an instrument is within the scope of this Subtopic, an entity shall not look through the form of its investment to the nature of the securities held by an investee. For example, an entity invests…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1dd44578dcdf79407e8ae9c4bc6380dcdcd545e268b143759f6b75401ed639d","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28299bf41198aa690ca45dff2b4c59c6007cf97d1193ea3e5f84c1f81c426718","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"320-958-15-7","para":"15-7","html":"
This Subtopic does not specify methods to be used for measuring the amount of interest income.
","snippet":"This Subtopic does not specify methods to be used for measuring the amount of interest income.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1630c858be296b87c10e659c0223e4204cbff81dd8b4c0cd6dbb1069d6bf99fb","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f9712b5d68a0ae026162efd96de1d765bf6b22b3440312afa48151f3a96a2b1","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a52fcceec1b69e0c6ccbfd58e8e50319cb4772a4667a2cd38a384539652132c","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a52fcceec1b69e0c6ccbfd58e8e50319cb4772a4667a2cd38a384539652132c","downloaded_from":"2026-09-09T23:37:50.575Z","last_downloaded_at":"2026-09-09T23:37:50.575Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478847","source_sha256":"1345b6df71a3e9b7f628b0f2f7ed7d1432b054b729571400bb2c1f22283470bb"}}