{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/965/#40-derecognition","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":"320-965","subtopic_title":"Plan Accounting—Health and Welfare Benefit Plans","section":{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"320-965-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_22E67C50-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The accrual basis of accounting requires that sales of securities be recorded on a trade-date basis. </span></span><span class=\"sfragment\" id=\"sfr_22E67D63-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, if the settlement date is later than the financial statement date, </span></span><span class=\"sfragment\" id=\"sfr_22E67E47-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">accounting on a settlement-date basis for such purchases is acceptable if both of the following conditions exist: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_22E67F17-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"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.\"><span>fair value</span></a> less costs to sell, if significant, of the securities sold just before the financial statement date does not change significantly from the trade date to the financial statement date. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_22E67FEA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The sales do not significantly affect the composition of the plan's assets available for benefits. </span></span></div></li></ol></div></div>","snippet":"The accrual basis of accounting requires that sales of securities be recorded on a trade-date basis. However, if the settlement date is later than the financial statement date, accounting on a settlement-date basis for s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8216796f34fb6f632b982b20a4a7ec5e7ba98057bb26fb5d3d9d77a01514de89","downloaded_from":"2026-09-09T23:38:36.490Z","last_downloaded_at":"2026-09-09T23:38:36.490Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477434","source_sha256":"0185fb763c304fff6be2fe93ac503441bc98ba1e29f76e57191084a2b768988c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4d08c5994fe21f715caad203232814b09291157661ddbce2604eb9b3116c888e","downloaded_from":"2026-09-09T23:38:36.490Z","last_downloaded_at":"2026-09-09T23:38:36.490Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477434","source_sha256":"0185fb763c304fff6be2fe93ac503441bc98ba1e29f76e57191084a2b768988c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a635bf8abcc62af8c789d8cc692d2b0ad0ae15c479d7fa01fe85ecc0de332722","downloaded_from":"2026-09-09T23:38:36.490Z","last_downloaded_at":"2026-09-09T23:38:36.490Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477434","source_sha256":"0185fb763c304fff6be2fe93ac503441bc98ba1e29f76e57191084a2b768988c"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a635bf8abcc62af8c789d8cc692d2b0ad0ae15c479d7fa01fe85ecc0de332722","downloaded_from":"2026-09-09T23:38:36.490Z","last_downloaded_at":"2026-09-09T23:38:36.490Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477434","source_sha256":"0185fb763c304fff6be2fe93ac503441bc98ba1e29f76e57191084a2b768988c"}}