# ASC Topic 320: Investments—Debt Securities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/) 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): 2026-09-09T23:34:37.849Z to 2026-09-09T23:38:38.868Z Record version: sha256:f734487fd8cbca9665d5f2eb587843165c618fa503212a64646d1f553229a5b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 320 governs investments in debt securities (equity securities moved to ASC 321 by ASU 2016-01). The Overall Subtopic 320-10 requires each debt security to be classified at acquisition as trading, available-for-sale, or held-to-maturity, with trading and AFS at fair value (unrealized gains/losses in earnings and OCI, respectively) and HTM at amortized cost, and it polices HTM classification through the "positive intent and ability to hold to maturity" standard, the narrow list of non-tainting sales/transfers, and category-based disclosures. Industry Subtopics layer on incremental rules: broker-dealers (320-940) use trade-date accounting and fair value through profit or loss for proprietary positions; financial institutions (320-942) face detailed major-security-type, maturity-grouping, and pledged-collateral disclosures; NFPs (320-958), health and welfare benefit plans (320-965), and investment companies (320-946) simply carry securities at fair value without the three-category model; and the insurance (320-944) and health care (320-954) Subtopics were wholly superseded by ASU 2016-01. The unifying idea is that fair value is the default measurement for debt securities, with amortized cost available only to entities that can demonstrate and maintain a genuine intent and ability to hold to maturity. Source downloaded (UTC): 2026-09-09T23:34:37.849Z to 2026-09-09T23:35:28.596Z Record version: sha256:ee5280ec1ccc87e57b90afd773e2dd02dbc2d664d9911ce31e1b6d2a6b89b3bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10: Investments—Debt Securities — Overall ### Machine-generated study aids ```json { "summary": "ASC 320-10 governs the accounting and reporting for all investments in debt securities (post-ASU 2016-01, equity securities moved to Topic 321). At acquisition an entity must classify each debt security as trading, available-for-sale, or held-to-maturity (320-10-25-1) and document that classification (320-10-25-2); trading and AFS securities are carried at fair value (unrealized gains/losses in earnings and OCI, respectively) while HTM securities are carried at amortized cost (320-10-35-1). The Subtopic's core tension is the restrictive \"positive intent and ability to hold to maturity\" standard, the narrow list of sales/transfers that do not \"taint\" the HTM portfolio, and the required category disclosures.", "key_points": [ "At acquisition, debt securities must be classified as trading, available-for-sale, or held-to-maturity, with AFS as the residual category, and the classification must be documented (320-10-25-1; 320-10-25-2).", "HTM classification requires positive intent and ability to hold to maturity, which is distinct from the mere absence of an intent to sell; securities available to be sold for liquidity, rate changes, tax planning, or asset-liability management, convertible debt, and securities that can be prepaid so the holder would not recover substantially all of its recorded investment cannot be HTM (320-10-25-3 through 25-5).", "Subsequent measurement: trading at fair value with unrealized holding gains and losses in earnings; AFS at fair value with unrealized holding gains and losses in other comprehensive income (except hedged portions under Topic 815); HTM at amortized cost; interest and premium/discount amortization go to earnings for all three (320-10-35-1; 320-10-35-4).", "A sale or transfer of an HTM security for a reason other than those in 320-10-25-6, 25-9, and 25-14 taints the entire HTM portfolio and requires reclassification of remaining HTM securities to available-for-sale in the period of the sale (320-10-35-8 through 35-9).", "Non-tainting events include significant deterioration in issuer creditworthiness, certain tax-law and regulatory changes, a major business combination or disposition, and isolated, nonrecurring, unusual events that could not have been reasonably anticipated; sales near maturity or after collecting at least 85 percent of principal outstanding at acquisition are treated as maturities (320-10-25-6; 320-10-25-9; 320-10-25-14 through 25-15).", "Transfers between categories are recorded at fair value, with specified treatment of unrealized gains/losses and reversal of any existing allowance for credit losses in earnings on HTM-to-AFS and AFS-to-HTM transfers (320-10-35-10; 320-10-35-10A; 320-10-35-10B; 320-10-45-8B).", "Disclosures by major security type (based on nature and risks) include amortized cost basis, aggregate fair value, total allowance for credit losses, gross unrealized gains and losses, and contractual maturity groupings, plus proceeds and gross realized gains/losses from AFS sales and the circumstances of any HTM sale or transfer (320-10-50-1B; 50-2; 50-5; 50-5A; 50-9; 50-10)." ], "categories": [ "Financial instruments", "Subsequent measurement", "Presentation", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exams love the HTM \"tainting\" rules: students often assume any sale before maturity destroys HTM classification, but sales due to the enumerated changes in circumstances, isolated/nonrecurring/unusual events, or sales near maturity or after 85% of principal has been collected are permitted. Also remember that after ASU 2016-01 this Topic covers only debt securities (equity securities are in Topic 321) and credit impairment is now handled in Subtopic 326-20/326-30, not here.", "related_topics": [ "321-10", "323-10", "325-40", "326-30", "310-20", "815-15" ], "key_concepts": [ "held-to-maturity classification", "available-for-sale securities", "trading securities", "positive intent and ability", "tainting the held-to-maturity portfolio", "amortized cost basis", "unrealized holding gains and losses", "retrospective interest method" ] } ``` Source downloaded (UTC): 2026-09-09T23:34:37.849Z to 2026-09-09T23:34:37.849Z Record version: sha256:6d24ea81ab54c9b143936f88119e396a09d0e184220877dc1a72707b1c877c4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/10/#00-status) SEC content: no ##### [320-10-00-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:37.849Z to 2026-09-09T23:34:37.849Z Record version: sha256:f8391ed070cdf974f1a5051e7b46d7f12151d0b645756d2252274cc0dc490d96 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
Amortized Cost BasisAmendedAccounting Standards Update No. 2016-1306/16/2016
Cash EquivalentsAddedAccounting Standards Update No. 2014-0603/14/2014
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Equity Security (1st def.)SupersededAccounting Standards Update No. 2016-0101/05/2016
Holding Gain or LossAmendedAccounting Standards Update No. 2016-1306/16/2016
Public Business EntityAddedAccounting Standards Update No. 2019-0404/25/2019
Readily Determinable Fair ValueSupersededAccounting Standards Update No. 2016-0101/05/2016
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2015-1006/12/2015
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
Recorded InvestmentAmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-05-2AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-1 through 15-5
AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-3AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-15-3AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-15-4AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-15-7AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-7AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-15-7AAddedAccounting Standards Update No. 2016-0101/05/2016
320-10-15-9AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-15-10SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-25-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-25-2AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-25-5AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-25-18AmendedAccounting Standards Update No. 2014-1106/12/2014
320-10-25-20AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-30-1 through 30-4
SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-1AmendedAccounting Standards Update No. 2022-0103/28/2022
320-10-35-1AmendedAccounting Standards Update No. 2017-1208/28/2017
320-10-35-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-2SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-3 through 35-5
AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-10AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-10AAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-10BAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-16AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-35-17 through 35-24
SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-17AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-18AAddedAccounting Standards Update No. 2022-0103/28/2022
320-10-35-20AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-20AAddedAccounting Standards Update No. 2022-0103/28/2022
320-10-35-24AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-35-25 through 35-29
SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-30SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-30AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-35-32ASupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-32AAmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-35-33SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-33A through 35-33I
SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-34SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-35-34A through 35-35ASupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-36AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-35-37SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-35-38AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-35-43SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-40-1AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-40-2AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-40-2AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-40-3AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-45-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-45-3 through 45-6
SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-45-8AmendedAccounting Standards Update No. 2017-1208/28/2017
320-10-45-8ASupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-45-8BAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-45-9AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-45-9ASupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-45-12AmendedAccounting Standards Update No. 2014-0603/14/2014
320-10-45-13AmendedMaintenance Update 2015-11 (PDF)06/19/2015
320-10-50-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-50-1AAmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-1AAmendedAccounting Standards Update No. 2018-0907/16/2018
320-10-50-2 through 50-3
AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-2AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-50-2AAddedAccounting Standards Update No. 2019-1111/26/2019
320-10-50-3AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-50-4SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-50-5 through 50-5C
AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-5AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-50-5AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-50-5AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-50-5AAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-50-5BAddedAccounting Standards Update No. 2019-0404/25/2019
320-10-50-5CAddedAccounting Standards Update No. 2019-1111/26/2019
320-10-50-6 through 50-8BSupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-50-6AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-50-9AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-10AmendedAccounting Standards Update No. 2025-1112/08/2025
320-10-50-13SupersededAccounting Standards Update No. 2018-0907/16/2018
320-10-55-1AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-2AmendedAccounting Standards Update No. 2022-0203/31/2022
320-10-55-2AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-4SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-55-5SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-55-6AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-7SupersededAccounting Standards Update No. 2016-0101/05/2016
320-10-55-7AmendedAccounting Standards Update No. 2010-0802/02/2010
320-10-55-9AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-17AmendedAccounting Standards Update No. 2016-1306/16/2016
320-10-55-21A through 55-23
SupersededAccounting Standards Update No. 2016-1306/16/2016
320-10-55-22AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-23AmendedAccounting Standards Update No. 2016-0101/05/2016
320-10-55-23AmendedAccounting Standards Update No. 2012-0410/01/2012
320-10-55-24AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-55-25AmendedAccounting Standards Update No. 2019-0404/25/2019
320-10-65-1AmendedAccounting Standards Update No. 2009-0207/01/2009
Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:89795b7ce3bc9e95aeb0bcb127c082631ea60e668c65a0a9ed083ecbcce09600 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/10/#05-overview-and-background) SEC content: no ##### [320-10-05-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:af4d9a9f9e6a90277936504ed7f6b13ba09cb21ea76550e3323e94c64a65353d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for investments due to the differing accounting treatment for various forms of investment. The Topics include: 1. a Topic 320, Investments—Debt Securities 2. aa Topic 321, Investments—Equity Securities 3. b Topic 323, Investments—Equity Method and Joint Ventures 4. c Topic 325, Investments—Other. ##### [320-10-05-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:8cff249cb9904ac0a97d4fbe5a36aaf130cf851bf523a966ced67c03124f6407 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and reporting for all investments in [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions."). 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/) 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-05-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:40.912Z to 2026-09-09T23:34:40.912Z Record version: sha256:a52dba05e8fe5386bc9522a290415391e8d6124529776aed90f6115123e3f688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:dcc475d581c590befa16a3b0108f6819af465b5bf61fd770047ee4d13cf069e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-10-15-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:ac555065241386583c354cfb066d2fbb3f440f2d2a7a80d4f9d883ddee168036 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the scope for the Investments—Debt Securities Topic. #### Entities ##### [320-10-15-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:ab82478d403690a0a9883c4a5737bd48243eae4398ce2bc36a3ec39bb92aa08e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Investments—Debt Securities Topic applies to all entities, including the following entities that are not deemed to belong to specialized industries for purposes of this Topic: 1. a Cooperatives and mutual entities (such as credit unions and mutual insurance entities) 2. b Trusts that do not report substantially all of their [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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."). ##### [320-10-15-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:4ffcad9ae03767f5acc602efb889e5d504f6019af5abe63e110682c4a4fd7e3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following entities: 1. a Entities in certain specialized industries. Entities whose specialized accounting practices include accounting for substantially all investments in [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") at fair value, with changes in value recognized in earnings (income) or in the change in net assets. Examples of those entities are: 1. 1 Brokers and dealers in securities (Topic 940) 2. 2 Defined benefit pension, other postretirement, and health and welfare plans (Topics 960, 962, and 965) 3. 3 Investment companies (Topic 946). ##### [320-10-15-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:2c0b62f368012ea5f9aceb19ebad9ef858c10889bde06a89ed81a2254ba18210 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not apply to not-for-profit entities (NFPs). Subtopic 958-320 establishes standards for investments in debt securities by NFPs. #### Instruments ##### [320-10-15-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:f32bbbb78a20573029b930b1fc8bbf418475ce9e611b595e570edde2e9226acf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Investments—Debt Securities Topic establishes standards of financial accounting and reporting for all investments in debt securities, including those resulting from the securitization of other financial instruments. 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-15-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:a367366d2bf2142fc7033e106273e670be2b3349b9e78ca6883e9f5c849a50e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all loans that meet the definition of a security. ##### [320-10-15-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:4e12e1f2382628d5828c27dca02450916d3a04548676308f6b46806ba70147af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to any of the following: 1. a Derivative instruments that are subject to the requirements of Topic 815, including those that have been separated from a host contract as required by Section 815-15-25. If an investment would otherwise be in the scope of this Topic and it has within it an embedded derivative that is required by that Section to be separated, the host instrument (as described in that Section) remains within the scope of this Topic. 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 4. d Investments in consolidated subsidiaries. ##### [320-10-15-7A](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-7A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:cdcabe510e952378f16227b1f5108d99972abb31632e5194bb8e76adea8235b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-10-15-141](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-141) explains that the guidance in the Certain Contracts on Debt and Equity Securities Subsections applies to those forward contracts and purchased options that are not derivative instruments subject to Topic 815 but that involve the acquisition of securities that will be accounted for under Subtopic 320-10. #### Other Considerations ##### [320-10-15-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:7f22675d1e239bd34757446a802ad37497de4672aac148f537d96823189ee8ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For debt securities within its scope, Subtopic 310-20 provides incremental guidance on accounting for discounts and premiums. ##### [320-10-15-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:8e769eb08f00d639c16afb79542140bd9f202540529b2842d5473c75a4458357 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For debt securities within its scope, Subtopic 325-40 provides incremental guidance on accounting for and reporting discount and credit losses. ##### [320-10-15-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:43.164Z to 2026-09-09T23:34:43.164Z Record version: sha256:b257424935c829567970521c0c991b712201eaac171b318ac63377ac9cc061b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:34:45.716Z to 2026-09-09T23:34:45.716Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/320/10/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:5bea14e5ee650f2a9638eec274e4f20239443a4958df56d1a63bbc0b21c296d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/10/#25-recognition) SEC content: no #### Classification of Debt Securities ##### [320-10-25-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:7eb431fac6c6a1cca6d059847f7571580f2d509d931eee5697d16d1d4d8936fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At acquisition, an entity shall classify [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") into one of the following three categories: 1. a [Trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price."). If a [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") is acquired with the intent of selling it within hours or days, the security shall be classified as [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity."). However, at acquisition an entity is not precluded from classifying as trading a security it plans to hold for a longer period. Classification of a security as trading shall not be precluded simply because the entity does not intend to sell it in the near term. 2. b [Available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities."). Investments in debt securities not classified as trading securities or as held-to-maturity securities shall be classified as available-for-sale securities. 3. c Held-to-maturity securities. Investments in debt securities shall be classified as held-to-maturity only if the reporting entity has the positive intent and ability to hold those securities to maturity. ##### [320-10-25-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:01d9e541888b075ebad9e641e6f800d06997f3fa2e2422735dca2bd9e2037fc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At acquisition, an investor shall document the classification of debt securities. #### Restrictions on Classification of a Debt Security as Held-to-Maturity ##### [320-10-25-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:f95d4ba6c9c0aff5f3c5a33f7d6cfbd2d1ee95584d4779b42214a6c00561a3c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amortized cost is relevant only if a security is actually held to maturity. Use of the held-to-maturity category is restrictive because the use of amortized cost must be justified for each investment in a debt security. At acquisition, an entity shall determine if it has the positive intent and ability to hold a security to maturity, which is distinct from the mere absence of an intent to sell. If management's intention to hold a debt security to maturity is uncertain, it is not appropriate to carry that investment at amortized cost. In establishing intent, an entity shall consider pertinent historical experience, such as sales and transfers of debt securities classified as held-to-maturity. A pattern of sales or transfers of those securities is inconsistent with an expressed current intent to hold similar debt securities to maturity. ##### [320-10-25-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:0ca04512c6e5f6d4125495178d6142a21f2115181592cdeabadbadecf7ea0013 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall not classify a debt security as held-to-maturity if the entity has the intent to hold the security for only an indefinite period. Consequently, a debt security shall not, for example, be classified as held-to-maturity if the entity anticipates that the security would be available to be sold in response to any of the following circumstances: 1. a Changes in market interest rates and related changes in the security's prepayment risk 2. b Needs for liquidity (for example, due to the withdrawal of deposits, increased demand for loans, surrender of insurance policies, or payment of insurance claims) 3. c Changes in the availability of and the yield on alternative investments 4. d Changes in funding sources and terms 5. e Changes in foreign currency risk. ##### [320-10-25-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:2fbd8eeb37eebb96b0adaf135253fb17e45352b98ade197487180a28a9a547c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Specific scenarios in which a debt security shall not be classified as held-to-maturity (or where sale or transfer of a held-to-maturity security will call into question an investor's stated intent to hold other debt securities to maturity in the future) are as follows: 1. a A security shall not be classified as held-to-maturity if that security can contractually be prepaid or otherwise settled in such a way that the holder of the security would not recover substantially all of its recorded investment. The justification for using historical-cost-based measurement for debt securities classified as held-to-maturity is that no matter how market interest rates fluctuate, the holder will recover its recorded investment and thus realize no gains or losses when the issuer pays the amount promised at maturity. However, that justification does not extend to receivables purchased at a substantial premium over the amount at which they can be prepaid, and it does not apply to instruments whose payments derive from prepayable receivables but have no principal balance. Therefore, a callable debt security purchased at a significant premium might be precluded from held-to-maturity classification under paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) if it can be prepaid or otherwise settled in such a way that the holder of the security would not recover substantially all of its recorded investment. In addition, a mortgage-backed interest-only certificate shall not be classified as held-to-maturity. Paragraphs [860-20-35-3 through 35-6](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-3) provide further guidance on application of this paragraph. Note that a debt security that is purchased late enough in its life such that, even if it was prepaid, the holder would recover substantially all of its recorded investment, could be initially classified as held-to-maturity if the conditions of this paragraph and paragraph [320-10-25-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-1) are met. (A debt security that can contractually be prepaid or otherwise settled in such a way that the holder of the security would not recover substantially all of its recorded investment may contain an embedded derivative. Therefore, such a security should be evaluated in accordance with Subtopic 815-15 to determine whether it contains an embedded derivative that needs to be accounted for separately.) 2. b A debt security that is available to be sold in response to changes in market interest rates, changes in the security's prepayment risk, the entity's need for liquidity, changes in foreign exchange risk, or other similar factors shall not be included in the held-to-maturity category because the possibility of a sale is indicative that the entity does not have a positive intent and ability to hold the security to maturity. A debt security that is considered available to be sold as part of an entity's asset-liability management activities shall not be classified as held-to-maturity. Similarly, an entity that maintains a dynamic hedging program in which changes in external factors require that certain securities be sold to maintain an effective hedge would not have the intent and ability to hold those securities to maturity. 3. c Securities that may need to be sold to implement tax-planning strategies (for example, to generate taxable gains to offset existing taxable losses—or vice versa—or in response to changes in the entity's anticipated future profitability—for example, if taxable losses were expected for the next several years) should be classified as available-for-sale, not held-to-maturity. 4. d The sale of a held-to-maturity security in advance of any deterioration in the creditworthiness of the issuer, perhaps based solely on industry statistics, will call into question an investor's stated intent to hold other debt securities to maturity in the future. The sale of a held-to-maturity security must be in response to an actual deterioration, not mere speculation. That deterioration shall be supported by evidence about the issuer's creditworthiness; however, the entity need not await an actual downgrading in the issuer's published credit rating or inclusion on a credit watch list. 5. e The sale of held-to-maturity securities to meet regulatory capital requirements will call into question an investor's stated intent to hold other debt securities to maturity in the future. An entity's ability and intent to hold securities to maturity would be called into question by the sale of held-to-maturity securities to realize gains to replenish regulatory capital that had been reduced by a provision for loan losses. Gains trading with held-to-maturity securities to meet an entity's capital requirements is inconsistent with the held-to-maturity notion. 6. f The exercise of a put option on a security classified as held-to-maturity will call into question an investor's stated intent to hold other debt securities to maturity in the future. Furthermore, a puttable debt security might be precluded from held-to-maturity classification pursuant to paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2). 7. g Convertible debt securities shall not be classified as held-to-maturity. Classifying a security as held-to-maturity means that the entity is indifferent to future opportunities to profit from changes in the security's [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") and intends to accept the debt security's stipulated contractual cash flows, including the repayment of principal at maturity. Convertible debt securities generally bear a lower interest rate because the investor hopes to benefit from appreciation in value of the option embedded in the debt security. Given the unique opportunities for profit embedded in a convertible security, it generally would be contradictory to assert the positive intent and ability to hold a convertible debt security to maturity and forego the opportunity to exercise the conversion feature. The exercise of a conversion feature on a security classified as held-to-maturity will call into question an investor's stated intent to hold other debt securities to maturity in the future. (See Section 815-15-25 for additional guidance. If convertible debt is bifurcated into an equity option and a host debt instrument under the requirements of Subtopic 815-15, it generally still would be contradictory to assert the positive intent and ability to hold the debt host contract to maturity and forego the opportunity to exercise the conversion feature.) 8. h A documented policy to initially classify all debt securities as held-to-maturity but then automatically transfer every security to available-for-sale when it reaches a predetermined point before maturity (for example, every held-to-maturity security will be transferred to available-for-sale 24 months prior to its stated maturity) so that an entity has the flexibility to sell securities is not consistent with the held-to-maturity classification. Under the policy described, the entity does not intend to hold any security to maturity. 9. i An insurance entity or other regulated entity shall not classify securities as held-to-maturity and also indicate to regulators that those securities could be sold to meet liquidity needs in a defined interest rate scenario whose likelihood of occurrence is reasonably possible but not probable. ##### [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:88eddcf654fbd33eed9e1affaf89263b42924c3a0435f2d412e841c4b7bd1d67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following changes in circumstances may cause the entity to change its intent to hold a certain security to maturity without calling into question its intent to hold other debt securities to maturity in the future. The sale or transfer of a held-to-maturity security due to one of the following changes in circumstances shall not be considered inconsistent with its original classification: 1. a Evidence of a significant deterioration in the issuer's creditworthiness (for example, a downgrading of an issuer's published credit rating) 2. b A change in tax law that eliminates or reduces the tax-exempt status of interest on the debt security (but not a change in tax law that revises the marginal tax rates applicable to interest income) 3. c A major business combination or major disposition (such as sale of a [component of an entity](https://asc.understandingaccounting.org/glossary/c/#component-of-an-entity "A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. A component of an entity may be a reportable segment or an operating segment, a reporting unit, a subsidiary, or an asset group.")) that necessitates the sale or transfer of held-to-maturity securities to maintain the entity's existing interest rate risk position or credit risk policy 4. d A change in statutory or regulatory requirements significantly modifying either what constitutes a permissible investment or the maximum level of investments in certain kinds of securities, thereby causing an entity to dispose of a held-to-maturity security 5. e A significant increase by the regulator in the industry's capital requirements that causes the entity to downsize by selling held-to-maturity securities 6. f A significant increase in the risk weights of debt securities used for regulatory risk-based capital purposes. ##### [320-10-25-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:0256e9afa292bf94c1fbb47d475f86615e012af0116fe02e653b248e78fbd5d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is not appropriate to analogize to the exceptions specified in (a) through (f) in the preceding paragraph. ##### [320-10-25-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:7b48bf338dce1c531be6e39952e4d7421e884e8e978dc93af08768bb959535d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a regulator directs a particular institution (rather than all institutions supervised by that regulator) to sell or transfer held-to-maturity securities (for example, to increase liquid assets), those sales or transfers are not consistent with paragraph [320-10-25-6(d)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), which describes a change in regulations applicable to all entities affected by the legislation or regulator enacting the change. (The same is true of paragraph [320-10-25-6(e) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6).) However, it is possible that the circumstances causing a regulator to direct an institution to sell securities could be considered an event that is isolated, nonrecurring, and unusual that could not have been reasonably anticipated as described in the following paragraph and paragraph [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6). ##### [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:51363061e8fa7eb672a6fb28e3c036530fbeee49a473fbf873aa3bedba1e3e04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the changes in circumstances listed in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), certain other events may cause the entity to sell or transfer a held-to-maturity security without necessarily calling into question (tainting) its intent to hold other debt securities to maturity. Such events must meet all of the following four conditions to avoid tainting its intent to hold other debt securities to maturity in the future: 1. a The event is isolated. 2. b The event is nonrecurring. 3. c The event is unusual for the reporting entity. 4. d The event could not have been reasonably anticipated. ##### [320-10-25-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:e49a53ec31a7e8faff258c27057b43e7cd206ef25f3239bd34a4a28430863576 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other than extremely remote disaster scenarios (such as a run on a bank or an insurance entity), very few events would meet all four of those conditions. ##### [320-10-25-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:edb039d3781ed34d9b8b4f999ff3f29c46a365732f767aa2f5dfd2a14a5225d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Extremely remote disaster scenarios shall not be anticipated by an entity in deciding whether it has the positive intent and ability to hold a debt security to maturity. ##### [320-10-25-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:3e8563fedf8ca21b783f1aa722c3cb070f4b7e6ca64c6a8c775020126ecccf0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. With respect to the discussion in paragraph [320-10-25-6(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) about a major business combination or a major disposition, this Subtopic does not specify a quantitative threshold for a major business combination or disposition. Examples of transactions that would qualify for the exception in paragraph [320-10-25-6(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) are as follows: 1. a Sales of held-to-maturity securities only when the combination or disposition necessitates the sale or transfer of held-to-maturity securities to maintain the entity's existing interest rate risk position or credit risk policy. Necessary transfers or sales shall occur concurrent with or shortly after the business combination or disposition. This Subtopic does not define shortly. As time passes, however, it is increasingly difficult to demonstrate that the business combination, and not other events or circumstances, necessitated the transfer or sale of held-to-maturity securities. 2. b A sale of a component of an entity is an example of a major disposition. ##### [320-10-25-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:78f526f9f6d5cb8ddf42539cf479568f1752c9b0963496fd408cfadf69254bca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of transactions that would not qualify for the exception in paragraph [320-10-25-6(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) are as follows: 1. a A purchase or sale of a large pool of financial assets (for example, conforming mortgages) or liabilities (for example, deposit liabilities) (which would not be considered a major business combination or disposition) 2. b Sales of held-to-maturity securities to fund an acquisition (or a disposition, for example, if deposit liabilities are being assumed by the other party) 3. c Sales of held-to-maturity securities in anticipation of or otherwise before a major business combination or disposition 4. d A sale of held-to-maturity securities in response to an unsolicited tender offer from the issuer (which also is not an event that is isolated, nonrecurring, and unusual that could not have been reasonably anticipated). ##### [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:8dd83ad9451acb2b1d27641beb919150ca06d987f6ccb3f259f3c7d5192fa887 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Sales of debt securities that meet either of the following conditions may be considered as maturities for purposes of the classification of securities and the disclosure requirements under this Subtopic: 1. a The sale of a security occurs near enough to its maturity date (or call date if exercise of the call is probable) that interest rate risk is substantially eliminated as a pricing factor. That is, the date of sale is so near the maturity or call date (for example, within three months) that changes in market interest rates would not have a significant effect on the security's fair value. 2. b The sale of a security occurs after the entity has already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition due either to prepayments on the debt security or to scheduled payments on a debt security payable in equal installments (both principal and interest) over its term. For variable-rate securities, the scheduled payments need not be equal. ##### [320-10-25-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:c55ef7d6a4591b22a087356a9c83dcbcb627d8907ae4899cc4eae7243cb9248d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Selling a debt security after a substantial portion of the principal has been collected shall be considered equivalent to holding the security to maturity. The collection of 85 percent of the principal outstanding at acquisition (not the principal outstanding at issuance for securities purchased in the secondary market) constitutes a reasonable threshold of what represents a substantial portion of the principal. ##### [320-10-25-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:d5f88ec1ce54a5f1a228ba5f98e63dad5e1330f200e0d1185cf8233425208fa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The limited practical exception in the preceding paragraph applies to both of the following: 1. a Debt securities that are payable in equal installments that comprise both principal and interest, such as certain level-payment mortgage-backed securities. For example, many banks routinely sell their investments in mortgage-backed securities after a substantial portion of the principal has been recovered through prepayments. The tail portion of a mortgage-backed security is sold because it no longer represents an efficient investment to the entity mainly due to the economic costs of accounting for remnants of the original issue. 2. b Variable-rate debt securities when the scheduled payments would be payable in equal installments absent a change in interest rates. ##### [320-10-25-17](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:20357a63846b84cdde4e92b7a55c9703809f3d49ae09f97346f7640582675569 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is not appropriate to apply the limited practical exception in paragraph [320-10-25-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-15) by analogy to a debt security that has a contractual payment schedule of level principal payments plus interest that accrues based on the declining outstanding principal balance; the payments on that type of security do not represent equal installments that are made up of both principal and interest. ##### [320-10-25-18](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:761a3181e151378de5aab056e9cdfe5037a48d3ffdd4b5f058baae69b6b0b5ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Specific scenarios in which a debt security may be classified as held to maturity (or where sale or transfer of a held-to-maturity security will not call into question an investor's stated intent to hold other debt securities to maturity in the future) are as follows: 1. a Although its asset-liability management may encompass consideration of the maturity and repricing characteristics of all investments in debt securities, an entity may decide that it can accomplish the necessary adjustments under its asset-liability management without having all of its debt securities available for disposition. In that case, the entity may choose to designate certain debt securities as unavailable to be sold to accomplish those ongoing adjustments deemed necessary under its asset-liability management, thereby enabling those debt securities to be accounted for at amortized cost on the basis of a positive intent and ability to hold them to maturity. 2. b The sale of one or more held-to-maturity securities if an entity chooses to downsize to comply with a significant increase in the industry's capital requirements would not call into question the classification of other held-to-maturity securities. 3. c In some circumstances it may not be possible to hold a security to its original stated maturity, such as when the security is called by the issuer before maturity. The issuer's exercise of the call option effectively accelerates the security's maturity and shall not be viewed as inconsistent with classification in the held-to-maturity category. 4. d A puttable debt security shall be classified as held-to-maturity only if the entity has the positive intent and ability to hold it to maturity. 5. e If a transfer of a held-to-maturity debt security is accounted for as a sale under Subtopic 860-20 and it is transferred for a reason other than those specified in paragraphs [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9), and [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14), then the transfer would taint the held-to-maturity portfolio. However, if the transfer is accounted for as a secured borrowing, then the transfer would not taint the held-to-maturity portfolio. Transactions involving held-to-maturity securities that are not accounted for as sales under Subtopic 860-20 would not contradict an entity's stated intent to hold a security to maturity and, therefore, do not call into question the entity's intent to hold other debt securities to maturity. Examples of such transactions are as follows: 1. 1 Held-to-maturity securities pledged as collateral, provided that the transaction is not accounted for as a sale under Subtopic 860-20 and the entity intends and expects to be able to satisfy the obligation and recover access to its collateral 2. 2 Held-to-maturity securities subject to a repurchase agreement or a securities lending agreement, provided that the transaction is accounted for as a secured borrowing under Subtopic 860-20 and the entity intends and expects to be able to repay the borrowing 3. 3 Beneficial interests classified as held-to-maturity that are desecuritized in a transaction that is not accounted for as a sale if the financial assets received in or that continue to be held after the desecuritization are held to maturity. Unless the debt instrument received or retained as a result of the transaction is held to maturity, the transaction would call into question the entity's intent to hold other debt securities to maturity. Desecuritizations are not specifically included within the scope of this paragraph. Nevertheless, that guidance is also appropriate for desecuritizations that are not accounted for as sales. #### Combinations of Structured Notes ##### [320-10-25-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:19c28c22fbd6c01fe8d4087c4b2b777709467e316c59cdab21ef2c719161e9d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance discusses a specific type of transaction in which [structured note](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes.") securities are issued in combination with other structured note securities as a unit or a pair for the purpose of achieving a certain strategic investment result for the investor. One strategy involves the purchase of two structured notes with opposite interest rate reset provisions. Under that strategy, the fixed coupon rate or maturity date for each structured note would be determined shortly after issuance depending on movements in market interest rates. Following that reset date, the resulting yields on each of the structured note securities will move in opposite directions; however, the average yield of the two securities will generally reflect the market yield of the combined instruments in effect on the issuance date. See Example 2 (paragraph [320-10-55-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-20)) for a common example of this strategy and of how the structured note transactions can be used to achieve one of many desired accounting results. ##### [320-10-25-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:48.597Z to 2026-09-09T23:34:48.597Z Record version: sha256:0808d9f39af147f25bb6c06e58ccd08d9914c0fdf26afad304f7324f307d8475 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If structured notes are acquired for the type of specified investment strategy described in paragraph [320-10-25-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19), then the investor shall account for the two structured note securities as a unit until one of the securities is sold, at which time the notes shall be measured in the same way as a participating interest in paragraph [860-20-40-1A](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-1A). Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:27d862ad46edc52664684f13660cc941fb5ce2eb37dabc1edf4e592952731b41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/320/10/#30-initial-measurement) SEC content: no ##### [320-10-30-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:98f4d0421ec72afd14ce83ec6c9987a0566e4f7d6bdd85b3a916dfce2fb86075 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-30-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:020ab6306d41f3237b6088d832c8805d0585e662109bacb1f81df39d3a6834ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-30-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:afd9b19be4819fea0bc06ee6064287d1aef410e94fedfc2f9fc7f5d6f564223d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-30-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:51.014Z to 2026-09-09T23:34:51.014Z Record version: sha256:ab93a6ab34c8507886440350637ad098c15178ce235bd6c66e0a2f7db321577d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:2420452aa1fac6e40d7fcf6a9175cd1c6c479815eb39dc9ffa843d45f924f711 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/10/#35-subsequent-measurement) SEC content: no ##### [320-10-35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:0ad7072741853dbe589be11e0074e55db6d42c4a558a87d5cbd9479038b7ecf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") shall be measured subsequently as follows: 1. a [Trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price."). Investments in debt securities that are classified as [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity.") shall be measured subsequently at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") in the statement of financial position. Unrealized [holding gains and losses](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") for trading securities shall be included in earnings. 2. b [Available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities."). Investments in debt securities that are classified as available for sale shall be measured subsequently at fair value in the statement of financial position. Unrealized holding gains and losses for available-for-sale securities (including those classified as current assets) shall be excluded from earnings and reported in other comprehensive income until realized except as indicated in the following sentences.All or a portion of the unrealized holding gain and loss of an available-for-sale security that is designated as being hedged in a fair value hedge that is not a portfolio layer method hedge shall be recognized in earnings during the period of the hedge, pursuant to paragraphs [815-25-35-1(b)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1), [815-25-35-4](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-4), and [815-25-35-6](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-6). The portion of the unrealized holding gain and loss of a closed portfolio that includes an available-for-sale security or securities that is designated as being hedged in a portfolio layer method hedge pursuant to paragraph [815-20-25-12A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-12A) shall be recognized in earnings during the period of the hedge pursuant to paragraphs [815-25-35-1(c)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1), [815-25-35-4](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-4), and [815-25-35-6](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-6). 3. c Held-to-maturity securities. Investments in debt securities classified as held to maturity shall be measured subsequently at amortized cost in the statement of financial position. A transaction gain or loss on a held-to-maturity foreign-currency-denominated debt security shall be accounted for pursuant to Subtopic 830-20. ##### [320-10-35-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:9fcb820f20b18115227a9644fff5f667e8a7f237d46488e9fa907e34f4a79b4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:92c73b7f16bfcf5f978bf620d55aed93ee996ee54f291987f137b6eaa3a7b639 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [323-10-35-23 through 35-26](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-23) identify circumstances in which an entity must adjust the basis of its investment in debt securities of an equity method investee for the amount of an equity method loss based on the investment's seniority. For investments accounted for in accordance with this Subtopic, the adjusted basis resulting from the application of paragraphs [323-10-35-23 through 35-26](https://asc.understandingaccounting.org/asc/323/10/#323-10-35-23) becomes the debt security's basis from which subsequent changes in fair value are measured. ##### [320-10-35-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:df074a10f170be0e70ffa5259adb6342d25538b12279fe07fc2410af756b1f8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all three categories of investments in debt securities shall be included in earnings. #### Reassessment of Classification ##### [320-10-35-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:b73d1e2b08fd62f495bdaec8c5079ac1104e1b770c90c9a81862c05bde0d2cf1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At each reporting date, the appropriateness of the classification of an entity's investments in debt securities shall be reassessed. For example, if an entity no longer has the ability to hold debt securities to maturity, their continued classification as held-to-maturity would not be appropriate. ##### [320-10-35-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:31b5d8a77b1f75e7b7151d153b59f580036b5571211bb8143fa370bcdefb3bb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because an entity is expected not to change its intent about a held-to-maturity security, the requirement to reassess the appropriateness of a security's classification focuses on the entity's ability to hold a security to maturity. The preceding paragraph acknowledges that facts and circumstances can change; for example, an entity can lose the ability to hold a debt security to maturity. However, that acknowledgment in no way diminishes the restrictive nature of the held-to-maturity category. ##### [320-10-35-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:7f1f2fef33b27d100b17de6dd0457408e065ae187ee1582bd755dda306040494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After securities are reclassified to available-for-sale in response to a taint, judgment is required in determining when circumstances have changed such that management can assert with a greater degree of credibility that it now has the intent and ability to hold debt securities to maturity. ##### [320-10-35-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:bc900bcffe68a240ae8052dc56bad41a16449120062968e7aff03b6217d3b950 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A sale or transfer of a security classified as held-to-maturity that occurs for a reason other than those specified in paragraphs [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6), [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9), and [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14), calls into question (taints) the entity's intent about all securities that remain in the held-to-maturity category. The entity makes the same assertion about all debt securities in the held-to-maturity category—namely, that it has the positive intent and ability to hold each security to maturity. Only a sale or transfer in response to certain changes in conditions will not call into question an entity's intent to hold other debt securities to maturity in the future. ##### [320-10-35-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8c39941011f4e9d980cba7095fb86ab75203c0b56d77080071bfd3c798a57f5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a sale or transfer of held-to-maturity securities represents a material contradiction with the entity's stated intent to hold those securities to maturity or when a pattern of such sales has occurred, any remaining held-to-maturity securities shall be reclassified to available-for-sale. The reclassification shall be recorded in the reporting period in which the sale or transfer occurred and accounted for as a transfer under the following paragraph. ##### [320-10-35-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:29ef38c18f8fd95c585efcc7509fed1ee721e65edecd38c8d48186929ed1e298 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers of a debt security from or into the trading category shall be accounted for at fair value. At the date of the transfer, the security's unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") shall be accounted for as follows: 1. a For a security transferred from the trading category, the unrealized holding gain or loss at the date of the transfer will have already been recognized in earnings and shall not be reversed. 2. b For a security transferred into the trading category, the portion of the unrealized holding gain or loss at the date of the transfer that has not been previously recognized in earnings shall be recognized in earnings immediately. 3. c [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). ##### [320-10-35-10A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:116ac4b9c9b72ec236419f36b31b8839bed4e58f729b24e99910853c9d9776ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a debt security that is transferred into the available-for-sale category from the held-to-maturity category, an entity shall: 1. a Reverse in earnings any allowance for credit losses previously recorded on the held-to-maturity debt security at the transfer date 2. b Reclassify and transfer the debt security to the available-for-sale category at its [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") (which is reduced by any previous writeoffs but excludes any allowance for credit losses) 3. c Determine if an allowance for credit losses is necessary by following the guidance in Subtopic 326-30 4. d Report in other comprehensive income any unrealized gain or loss on the available-for-sale debt security at the date of transfer, excluding the amount recorded in the allowance for credit losses in accordance with paragraph (c) 5. e Consider whether the transfer of a debt security from the held-to-maturity category to the available-for-sale category calls into question the entity's intent and ability to hold securities that remain in the held-to-maturity category to maturity in accordance with paragraphs [320-10-35-8 through 35-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-8) . ##### [320-10-35-10B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10B) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:6cb6b2c3df59fbcf4cf72d8e1fd60c19b3caaeb5b5010429648bf1b3cfc1e7ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a debt security that is transferred into the held-to-maturity category from the available-for-sale category, an entity shall: 1. a Reverse in earnings any allowance for credit losses previously recorded on the available-for-sale debt security at the transfer date 2. b Reclassify and transfer the debt security to the held-to-maturity category at its amortized cost basis (which is reduced by any previous writeoffs but excludes any allowance for credit losses) plus or minus the amount of any remaining unrealized holding gain or loss reported in accumulated other comprehensive income 3. c Evaluate the debt security for an allowance for credit losses by following the guidance in Subtopic 326-20 4. d Continue to report the unrealized holding gain or loss at the date of the transfer in a separate component of shareholders' equity, such as accumulated other comprehensive income, but that gain or loss shall be amortized over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of any premium or discount. The amortization of an unrealized holding gain or loss reported in equity will offset or mitigate the effect on interest income of the amortization of the premium or discount (discussed in the following sentence) for that held-to-maturity security. For a debt security transferred into the held-to-maturity category, the transfer may create a premium or discount that, under amortized cost accounting, shall be amortized thereafter as an adjustment of yield in accordance with Subtopic 310-20 on receivables—nonrefundable fees and other costs. ##### [320-10-35-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:9250a7e265c90929a0cc491a9a501cfbb6d374c354bf2cec673c49dcad6d0d97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers from the held-to-maturity category should be rare, except for transfers due to the changes in circumstances identified in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6). ##### [320-10-35-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:212d7a00bb2fae246b7586adc18786cd827fd79ee84e79e0e8762ee82a8b9fb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, given the nature of a trading security, transfers into or from the trading category also should be rare. ##### [320-10-35-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:f409912af2c88e81fb6f2a70066061a5bd9c645a8585fb160b5eaf1c6d106e1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Available-for-sale securities shall not be automatically transferred to the trading category because the passage of time has caused the maturity date to be within one year or because management intends to sell the security within one year. Similarly, if an entity plans to sell a security from the held-to-maturity category in response to one of the conditions in paragraphs [320-10-25-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6) and [320-10-25-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-9), the security shall not be automatically reclassified to available-for-sale or trading before the sale. ##### [320-10-35-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8cad66ba0f793e2e6a24944bd2121cc5e305bee7f48cd3f92ca242183bd21568 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [860-10-55-75](https://asc.understandingaccounting.org/asc/860/10/#860-10-55-75) gives an Example addressing whether a transferor has the option to classify debt securities as trading at the time of a transfer. ##### [320-10-35-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e519156b3321f318f121b87470a5a48bb100bd48c75b044a0eb0e6cd5e0eec80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a security is transferred from held-to-maturity to available-for-sale, the security's [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") carries over to the available-for-sale category for all of the following purposes: 1. a The subsequent amortization of the historical premium or discount 2. b The comparisons of fair value and amortized cost for the purpose of determining unrealized holding gains and losses under paragraph [320-10-35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) 3. c The required disclosures of amortized cost. ##### [320-10-35-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:d00e25daa40e0f197d0cc4b67343c53b545f9101b75e8c8431567629d5cab9ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a security is transferred from available-for-sale to held-to-maturity, the transfer may create a premium or discount that, under amortized cost accounting, shall be amortized as a yield adjustment in accordance with Subtopic 310-20. The security's amortized cost basis is determined as the amortized cost basis at the transfer date (which is reduced by any previous writeoffs but excludes any allowance for credit losses) plus or minus the amount of any remaining unrealized holding gain or loss reported in accumulated other comprehensive income. #### Impairment of Individual Available-for-Sale and Held-to-Maturity Debt Securities ##### [320-10-35-17](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:23824cc79b92c6ce888dd38e78395be62b47db87e2b2dcb0422bb8ffbb9a1c27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-18](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:1d005e554ff95f0fd1543a77e82fe10e58fa2be14f3d8da2e96a307fd1eed11a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-18A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-18A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:0ba676344cbc15ce8713cba9de4f01e55d2c9c7ffcb530b871e6dda39d1fc128 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall not consider a basis adjustment related to an existing portfolio layer method hedge designated in accordance with paragraph [815-20-25-12A](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-12A) in either of the following situations: 1. a When determining whether a decline in fair value below the amortized cost basis of a security is other than temporary 2. b If measuring impairment of the individual investments or individual beneficial interest included in a closed portfolio hedged using the portfolio layer method. ##### [320-10-35-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:faca67a9751fa3224bd94fc8a89f4ec7fb3085bc26c6a94a97a5d0b05cddac04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e7634d1a5feb303d5b980145709bf692485c2e1edafcab3e11992f2dfc4e7d86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-20A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-20A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8680c2c67131f897f5ad28facc2108fdab0c15cf65bdd4af4bb92a40ef04b43f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the individual securities or individual beneficial interest in a closed portfolio hedged using the portfolio layer method, the impairment assessment performed at the individual security level shall not consider the basis adjustment related to an existing portfolio layer method hedge. ##### [320-10-35-21](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:ba6666d12e3de87230dcca46b779c48fb166d5342cfe53de440f3cd95c5adbb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-22](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:878a22d6a4fa25abbf01d03d3bf4da9f1d9c5f61c2eb7440cdbc5e8b683c6e13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-23](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:6e9d858bdb0fb06ce3137cca458daf85e019e505e50ce6a0060594e5e4efd0e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-24](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:eee20847ab3e265b0181e56ae4048dd3ee90813ff723ca7847b1dc5497829d03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-25](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:42afe355ff4064c3bbdb77b34a74117eab5738017d45be087c191aa108d850ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-26](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:5cf873aa0d39958d72221a07fbd3199fb702725602c159ca7bc980cdd395e286 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-27](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:04c7936e89e28585da3c15612dbc351a2afe021e11fde44678b100b7a4a1656f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-28](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:18cded89282525af2ac999b62166be20492e96d7b5e280966843034b002b4e1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-29](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8dd899f5a4f5233553211ef1539d3cc668e64c15cd99ca07f16cb64b15e91863 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-30](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:7f3cc9df224a4552142f8b4f41f6bf022d0321dfbb6ddb84084c21a7f153370f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-31](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:40a7477e0d641a3ef007e4eef9200bd107fdfa0cdac886b231ab645ad3c8c72f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [320-10-35-32](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e64fd42d70be704717336ec84ed4385fe261eb77931096c0e1b88423bef3522c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [320-10-35-32A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-32A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:1803105d11bc232a3a57b73c7c690c6de879d2b1bd144572d140f656520f58b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-33](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:15484dadace92187bc77b9049a7165ab15513086084a2d1b9c3b1695ef11978e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-33A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:f4b727ab8ee7bd30d12c2826959b186c88a84d57d94f2376ffd6fb8d3d4d1c5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33B) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:808e869b6fe613bca3e839854a5cdee8f665de4f10da40887cd040a8138e3347 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33C](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33C) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:c6cc21a33aef3bb1b4a23b8abd41c6e62ad1e4c703a849e6ad0cb2a578aab36f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33D](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33D) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:5539127734ac99675902c8304e7f51c28f0994448bf2b2dd487daec6d3a06e6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33E](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33E) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:3a4c25e40590766f773cab234e9d6fb21145be3413f46d476e7e35150d8c3bff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33F](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33F) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e2994e6fbc2b648d981ae2220a39f503632a64a095b769617abedae79b96be32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33G](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33G) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:8abadc9b0f837e43c1122d644827b1143d7ebb4fa7212650dc3aa7693b2b736f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33H](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33H) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fb83a41f16786d96f996283e6f9e783b6ff856c40ad69784f8c6975e80b09079 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-33I](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-33I) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fff318a0433fdc857dd285c02e3019802399567a319497be4adbcd69f24026c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-34](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:1cb1ff61b89f56329990bda3e07af525390f78722c824ad01d283756efdf74ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-35-34A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:5b860b81c3d5357fb44dd8725637a4e7be1867ae7fcb165df34e4bfcb78f05d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-34B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34B) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fe1976e3931dde2f9dfb53a747accc752a4bff1077ae06e35291d5ebb127b01d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-34C](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34C) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:e8b798d70b6291c5d7fc19a847115583a69e258bcbdd4309a948ee21b08f3b24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-34D](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34D) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:0cbc8515814d577ac97d8d1179c8aa7a33ca8d93864ff749ad13d31d19bb4b7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-34E](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-34E) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:12ea2998730434a740c1d6523c63eab7d9a09b3f62bf572e7846eaeeec0d07e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-35](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:84833cb634fc36242e52001db89be1f53e30b473bd49c48ebb92c334e27c1d25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-35-35A](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-35A) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:672951f1749526acdbae29455ce04f86a8491d186434d66e2ab67864953db0e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Fair Value Changes of Foreign-Currency-Denominated Available-for-Sale Debt Securities ##### [320-10-35-36](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:6dc7fd28b5e8b25b71ccbd52071f7790c1c3277d0a5350b7d0fc8d484854714d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The change in the fair value of foreign-currency-denominated available-for-sale debt securities, excluding the amount recorded in the allowance for credit losses, shall be reported in other comprehensive income. See Subtopic 326-30 for measuring credit losses on available-for-sale debt securities. In accordance with the guidance in Subtopic 326-30, an entity shall report credit losses on available-for-sale debt securities in the statement of financial performance as credit loss expense. ##### [320-10-35-37](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fb66108eadab1213b005a7701ace00265682fc27ab35c4bd128cbda8033ef549 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Income Recognition for Certain Structured Notes ##### [320-10-35-38](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:7b6791ae3ebb01db86bb47766d8e87133f5696c58528764d7f5d4e1430de13e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses the accounting for certain structured notes that are in the form of debt securities, but does not apply to any of the following: 1. a Mortgage loans or other similar debt instruments that do not meet the definition of a security under this Subtopic 2. b Traditional convertible bonds that are convertible into the stock of the issuer 3. c Multicurrency debt securities 4. d Debt securities classified as trading 5. e [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 6. f Debt securities participating directly in the results of an issuer's operations (for example, participating mortgages or similar instruments) 7. g Reverse mortgages 8. h [Structured note](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes.") securities that, by their terms, suggest that it is reasonably possible that the entity could lose all or substantially all of its original investment amount (for other than failure of the borrower to pay the contractual amounts due). (Such securities shall be subsequently measured at fair value with all changes in fair value reported in earnings.) Also, this guidance shall be applied to those beneficial interests involving securitized financial assets that do not involve contractual cash flows. ##### [320-10-35-39](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:eafeebc17dc3dd0e48e213214498784c3e75f7f4a1aae973877f44e71bbb2750 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance does not address the issuer's accounting for structured note securities. ##### [320-10-35-40](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:4fee889ffeb68807dc40deb8bf861825c8b41f90c911f3d3eaad6bbd94bed5b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities shall use the [retrospective interest method](https://asc.understandingaccounting.org/glossary/r/#retrospective-interest-method "A method of interest income recognition under which income for the current period is measured as the difference between the amortized cost at the end of the period and the amortized cost at the beginning of the period, plus any cash received during the period.") for recognizing income on structured note securities that are classified as available-for-sale or held-to-maturity debt securities and that meet any of the following conditions: 1. a Either the contractual principal amount of the note to be paid at maturity or the original investment amount is at risk (for other than failure of the borrower to pay the contractual amounts due). Examples include principal-indexed notes that base principal repayment on movements in the Standard & Poor's S&P 500 Index or notes that base principal repayment on the occurrence of certain events or circumstances. 2. b The note's return on investment is subject to variability (other than due to credit rating changes of the borrower) because of either of the following: 1. 1 There is no stated coupon rate or the stated coupon is not fixed or prespecified, and the variation in the return on investment or coupon rate is not a constant percentage of, or in the same direction as, changes in market-based interest rates or interest rate index, for example, the London Interbank Offered Rate (LIBOR) or the U.S. Treasury Bill Index. 2. 2 The variable or fixed coupon rate is below market rates of interest for traditional notes of comparable maturity and a portion of the potential yield (for example, upside potential for principal) is based on the occurrence of future events or circumstances. (Examples of instruments that meet this condition include inverse floating-rate notes, dual-index floating notes, and equity-linked bear notes.) 3. c The contractual maturity of the bond is based on a specific index or on the occurrence of specific events or circumstances outside the control of the parties to the transaction, excluding the passage of time or events that result in normal covenant violations. Examples of instruments that meet this condition include index amortizing notes and notes that base contractual maturity on the price of oil. ##### [320-10-35-41](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:fb36d417fd1a5737a1d8009742353cb6dd6a0148795bf21f100e5d62173ef526 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the retrospective interest method, the income recognized for a reporting period would be measured as the difference between the amortized cost of the security at the end of the period and the amortized cost at the beginning of the period, plus any cash received during the period. The amortized cost would be calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimated future cash flow streams to the initial investment. If the effective yield is negative (that is, the sum of the newly estimated undiscounted cash flows is less than the security's amortized cost), the amortized cost would be calculated using a zero percent effective yield. Example 1 (see paragraph [320-10-55-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-16)) illustrates the application of the retrospective interest method. ##### [320-10-35-42](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:b22ee95ede7e50135a8e96f4343b38d33532b0b4216951013f1c2d5030c4a526 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of determining the effective yield at which income will be recognized, all estimates of future cash flows shall be based on quoted forward market rates or prices in active markets, when available; otherwise, they shall be based on current spot rates or prices as of the reporting date. ##### [320-10-35-43](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-43) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:52.952Z to 2026-09-09T23:34:52.952Z Record version: sha256:bb9222d22b4e2086c5933d2c93c469c0049269b02f21ec516d7fac662e6002ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:0aaf48bb819d9ce663b48c0dc6cb7739e665c7513afdb7e05ad67d61c913e877 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/320/10/#40-derecognition) SEC content: no #### Accounting for Sales of Securities ##### [320-10-40-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:6b22e0abca3b643096b1ec0d943927fc08cb547cd35650674052ca90b57073cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 860-10-40 provides guidance on determining whether a transfer of [securities](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") shall be accounted for as a sale. With respect to [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price."), because all changes in a trading security's [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") are reported in earnings as they occur, the sale of a trading security does not necessarily give rise to a gain or loss. Generally, a debit to cash (or trade date receivable) is recorded for the sales proceeds, and a credit is recorded to remove the security at its fair value (or sales price). If the entity is not taxed on the changes in fair value, the deferred tax accounts would be adjusted. Some adjustment to this procedure will be necessary for entities that have not yet recorded the security's change in fair value up to the point of sale (perhaps because fair value changes are recorded at the end of each day). ##### [320-10-40-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:f4432ec051f3bdd51612b1db9c0546a52ff3b1a65ea5d4aec0150880f6010d20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although entities have different bookkeeping methods for [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities."), generally, a sale of an available-for-sale security shall be recorded by a debit to cash (or trade date receivable) for the sales proceeds, and a credit to remove the security at its fair value (or sales price). The amount recorded in other comprehensive income, representing the unrealized gain or loss at the date of sale, is reversed into earnings, and the deferred tax accounts are adjusted. Some adjustment to this procedure will be necessary for entities that have not yet recorded the security's change in fair value up to the point of sale (perhaps because fair value changes are recorded at the end of each interim period) or when write-downs have been recognized. #### Sales of Combinations of Structured Notes ##### [320-10-40-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-40-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:55.996Z to 2026-09-09T23:34:55.996Z Record version: sha256:228000c6876b3bcefabadfff86e50bdaba6e23e81e96615d9ffccc331b611bee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As discussed in paragraph [320-10-25-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-20), if [structured notes](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes.") are acquired for the type of specified investment strategy described in paragraph [320-10-25-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19), then the investor should account for the two structured note securities as a unit until one of the securities is sold, at which time the notes shall be measured in the same way as a participating interest in paragraph [860-20-40-1A](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-1A). Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:613affa6bb67572b6c9ade251a22fe3bd7d2bfbf653dc60496c4ef77cbb7bf88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/10/#45-other-presentation-matters) SEC content: no #### Balance Sheet Classification ##### [320-10-45-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f145d19f8c11cc9998683d8dfe4e7840178e1d4d660dffe7132eb2529b002326 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall report its investments in [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") and [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.") separately from similar assets that are subsequently measured using another measurement attribute on the face of the statement of financial position. To accomplish that, an entity shall do either of the following: 1. a Present the aggregate of those [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") and non-fair-value amounts in the same line item and parenthetically disclose the amount of fair value included in the aggregate amount 2. b Present two separate line items to display the fair value and non-fair-value carrying amounts. Entities also shall refer to the guidance in paragraph [825-10-45-1A](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-1A) on disaggregation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables). ##### [320-10-45-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:68f72fe8453c2286fb10c67126285218be5d9a2965a35cf11c95030da4dc3940 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that presents a classified statement of financial position shall report individual held-to-maturity securities, individual available-for-sale securities, and individual trading securities as either current or noncurrent, as appropriate, under the guidance of Section 210-10-45. ##### [320-10-45-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f6c4e90c9901c42a59946a3798827c3551dada2f0405f3f8c354c9da5bc049b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-45-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f1c7e7e23b467a9bc2e42868d57dc9197ba2440e3ea554aec6c35acca718b1e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-45-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:27fe8cb478983edc9db58c7627cf24206c7d4575d185a07137092f2f106e3eac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-45-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:3e7af222bc687e2684ef16fdd8e26d9b1ed7a939769ae569f26d11c9c3620d86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Income Statement Classification ##### [320-10-45-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:e3816924e470948eee2f7a840ce6cc8f5ba46c2f7ca98e05155e183085c3efbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not specify the income statement classification of gains and losses for transfers involving trading securities. However, gains and losses that have accumulated before the transfer shall be classified consistently with realized gains and losses for the category from which the [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") is being transferred, not the category into which the security is being transferred. ##### [320-10-45-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:f0d24a94b36cad9a92f4961c58ef18ed8f43897b2cb14a7004d766410d40226e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [320-10-35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) explains that all or a portion of the unrealized holding gain and loss of an available-for-sale security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge, pursuant to paragraphs [815-25-35-1](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1) and [815-25-35-4](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-4). ##### [320-10-45-8A](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:d7eaa22d48828e42b066c9129ae72f1d39be288e28b683da2591099607427163 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-45-8B](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8B) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:fa7c505b57329dae0c7570fb3cc5b8cba615e0fe35e8e81eb69a8e88330be2e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present the amounts reversed or established for the allowance for credit losses related to the transfer of debt securities between categories (see paragraphs [320-10-35-10A through 35-10B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10A) ) on a gross basis in the income statement. An entity may present those amounts on the income statement or in the notes to financial statements, if applicable. #### Other Comprehensive Income ##### [320-10-45-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:ad597c0ddf3efd185a96d5744cf56884d077afd19dd9efa0be714ab5dffa249f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent increases or decreases in the fair value of available-for-sale securities that do not result in recognition or reversal of an allowance for credit loss or write-down in accordance with Subtopic 326-30 on measuring credit losses on available-for-sale debt securities shall be included in other comprehensive income pursuant to paragraphs [320-10-35-1(b)](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1) and [320-10-45-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-8). ##### [320-10-45-9A](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-9A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:56f556b018db8ed2f81d40a8db9fcf8f7268148215069c1ee9f04c1d418946c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-45-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:c0542cef62309f77acec6844be73121e34be194999f9c576822809cbff48077c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11) provides guidance on reporting the tax effects of unrealized holding gains and losses reported in other comprehensive income. #### Cash Flow Presentation ##### [320-10-45-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:fa2599782514da2d47db254b4d280f56645a849ad2e13f8182ff15939a5e6298 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash flows from purchases, sales, and maturities of available-for-sale securities and held-to-maturity securities shall be classified as cash flows from investing activities and reported gross for each security classification in the statement of cash flows. Cash flows from purchases, sales, and maturities of trading securities shall be classified based on the nature and purpose for which the securities were acquired. ##### [320-10-45-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:ec8d219da7fce38bb5f4e91dcaba35c78efe29e68f9937c87e920d45d8239511 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [230-10-45-8](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-8) permits reporting activity in [cash equivalents](https://asc.understandingaccounting.org/glossary/c/#cash-equivalents "Cash equivalents are short-term, highly liquid investments that have both of the following characteristics: Readily convertible to known amounts of cash So near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month U.S. Treasury bill and a three-year U.S. Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Examples of items commonly considered to be cash equivalents are Treasury bills, commercial paper, money market funds, and federal funds sold (for an entity with banking operations).") as a net change. However, securities that are considered cash equivalents are subject to the accounting and disclosure requirements of this Subtopic, such as disclosure of amortized cost and fair value by major security types. ##### [320-10-45-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:00.072Z to 2026-09-09T23:35:00.072Z Record version: sha256:7fcbf521fca1f5f2f47e9d3800f95b7c26fb04604673cdf927aeabb903e26a91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not require the presentation of individual amounts for the three categories of investments on the face of the statement of financial position, provided the information is disclosed in the notes. Thus, entities that report certain investments in debt securities as cash equivalents in accordance with the provisions of Topic 230 can continue that practice, provided that the notes reconcile the reporting classifications used in the statement of financial position. Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:5a3b86d099b92cb2df794a0b88e5e562ed374dd40a30e7a9cb8bd030685b9637 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/10/#50-disclosure) SEC content: no ##### [320-10-50-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:77794d7612af8070d3e44080dfcce7f2119889cc835b44e9561bbf1d1fe1cf96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides disclosure guidance on information about [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") that is required to be presented in the financial statements. ##### [320-10-50-1A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e4785014b6ed8db76f7ed745cb52d5a2aff388050cd5b11641ccb750a6ea9995 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures in this Section are required for all interim and annual periods when complete sets of financial statements are provided by an entity. The disclosures in this Section are not required when an entity provides summarized interim financial information. The minimum disclosure requirements for summarized interim financial information issued by publicly traded entities are established in paragraph [270-10-50-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1). 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)The disclosures in this Section are required for each interim and annual period. ##### [320-10-50-1B](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e9e7e5348c6ed5e38ec2cc4531f1ab15108c4327448f98700465c3bf07744504 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Major security types shall be based on the nature and risks of the security.In determining whether disclosure for a particular security type is necessary and whether it is necessary to further separate a particular security type into greater detail, an entity shall consider all of the following: 1. a (Shared) activity or business sector 2. b Vintage 3. c Geographic concentration 4. d Credit quality 5. e Economic characteristic. #### Securities Classified as Available for Sale ##### [320-10-50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:304efa55ca83c02a3b5c688a76e578ef005b24aed27881f8e9add66ec8bda1db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For securities classified as available for sale, all reporting entities shall disclose all of the following by major security type as of each date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa Aggregate [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") 3. aaa Total allowance for credit losses 4. b Total unrealized gains for securities with net gains in accumulated other comprehensive income 5. c Total unrealized losses for securities with net losses in accumulated other comprehensive income 6. d Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. 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 securities classified as available for sale, all reporting entities shall disclose all of the following by major security type as of each interim and annual date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa Aggregate [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") 3. aaa Total allowance for credit losses 4. b Total unrealized gains for securities with net gains in accumulated other comprehensive income 5. c Total unrealized losses for securities with net losses in accumulated other comprehensive income 6. d Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. ##### [320-10-50-2A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:a156de957268f905c8b28738915fcb1366bfbac211f1c928a811af0003092797 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from both the fair value and amortized cost basis of the available-for-sale debt security, an entity may, as a practical expedient, exclude the applicable accrued interest that is included in the amortized cost basis for the purposes of the disclosure requirements in paragraph [320-10-50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2). If an entity elects this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis. 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)If for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from both the fair value and amortized cost basis of the available-for-sale debt security, an entity may, as a practical expedient, exclude the applicable accrued interest that is included in the amortized cost basis for the purposes of the disclosure requirements in paragraph [320-10-50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-2). If an entity elects this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis in interim and annual reporting periods. ##### [320-10-50-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:0983cc89f9774b4c3df61c28c885e8bc127f3732a38d04ce131af94a4068d2d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions (see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)) shall disclose the fair value and the net carrying amount (if different from fair value) of debt securities on the basis of at least the following four 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)Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions (see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)) shall disclose the fair value and the net carrying amount (if different from fair value) of debt securities in interim and annual reporting periods on the basis of at least the following four 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 in interim and annual reporting periods. ##### [320-10-50-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:31e617088f56e86af6ae402566ab0b7fed2ee377c62184034b36a4ce3404e152 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Securities Classified as Held to Maturity ##### [320-10-50-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:5f9da297cfd98657cb278b14ee7e3019cb33f635b31e895ee9b28b6d158e3976 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All reporting entities shall disclose the following for securities classified as held to maturity by major security type as of each date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 3. aaa Total allowance for credit losses 4. b [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 5. c [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 6. d Net carrying amount 7. dd [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 8. e Gross gains and losses in accumulated other comprehensive income for any derivatives that hedged the forecasted acquisition of the held-to-maturity securities 9. f Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. (Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions \[see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)\] shall disclose the net carrying amount of debt securities on the basis of at least the following four maturity groupings: 1. 1 Within one year 2. 2 After one year through five years 3. 3 After 5 years through 10 years 4. 4 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)All reporting entities shall disclose the following for securities classified as held to maturity by major security type as of each interim and annual reporting date for which a statement of financial position is presented: 1. a Amortized cost basis 2. aa [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 3. aaa Total allowance for credit losses 4. b [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 5. c [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/). 6. d Net carrying amount 7. dd [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 8. e Gross gains and losses in accumulated other comprehensive income for any derivatives that hedged the forecasted acquisition of the held-to-maturity securities 9. f Information about the contractual maturities of those securities as of the date of the most recent statement of financial position presented. (Maturity information may be combined in appropriate groupings. In complying with this requirement, financial institutions \[see paragraph [942-320-50-1](https://asc.understandingaccounting.org/asc/320/942/#320-942-50-1)\] shall disclose the net carrying amount of debt securities on the basis of at least the following four maturity groupings: 1. 1 Within one year 2. 2 After one year through five years 3. 3 After 5 years through 10 years 4. 4 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.) ##### [320-10-50-5A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:ff7ca599a58dac651913df98917f254af223c080975da358ca7259a0de3d00ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") shall disclose the following information for securities classified as held to maturity, by major security type, as of each date for which a statement of financial position is presented: 1. a Aggregate fair value 2. b Gross unrecognized holding gains 3. c Gross unrecognized holding losses. 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 [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") shall disclose the following information for securities classified as held to maturity, by major security type, as of each interim and annual reporting date for which a statement of financial position is presented: 1. a Aggregate fair value 2. b Gross unrecognized holding gains 3. c Gross unrecognized holding losses. ##### [320-10-50-5B](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5B) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:c1473eb73e61c54235e7b5c993617ac284d2af14ffeb3a19c9a7c528d6867b6d 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 classified as held to maturity, by major security type, on the basis of at least the following four 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)For interim and annual reporting periods, a financial institution that is a public business entity shall disclose the fair value of the debt securities classified as held to maturity, by major security type, on the basis of at least the following four 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 in interim and annual reporting periods. ##### [320-10-50-5C](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5C) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:1c6222b7047291b5df3a3ed2cbd52eb800923c27894e30a80cccbfc856fc34aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from the amortized cost basis of held-to-maturity securities, an entity may, as a practical expedient, exclude the accrued interest receivable balance that is included in the amortized cost basis of the held-to-maturity securities for the purposes of the disclosure requirements in paragraph [320-10-50-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5). If an entity applies this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis. 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)If for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from the amortized cost basis of held-to-maturity securities, an entity may, as a practical expedient, exclude the accrued interest receivable balance that is included in the amortized cost basis of the held-to-maturity securities for the purposes of the disclosure requirements in paragraph [320-10-50-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-5). If an entity applies this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis in interim and annual reporting periods. ##### [320-10-50-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:8e5dbac4f34a7b89327616e6a058c6c1d401b855cf9c850f94ab41fab33f845f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-50-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:a2ed8718ef8306808e62c8e38d6b89afcc626964cf50e9fc7892ab99c8523f7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-50-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:2295c5a2a0674c637c7492a1b62881d96a9a6548e58c22d01ec0fe26b7b04e68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-50-8A](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:6adedf144f2bf58217c813830e23f44ea66c4e4a21355a980ed9cb108304bac2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-50-8B](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-8B) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e8414a7504c1979b6521d6cc74067431b60cd23273cb589a2afd350b0cc2f2b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Sales, Transfers, and Related Matters That Occurred during the Period ##### [320-10-50-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:44f2bf29102a4971bb0e2eb9f196d04533e3ca20df0419493982b18065201a15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which the results of operations are presented, an entity shall disclose all of the following: 1. a The proceeds from sales of [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales 2. b The basis on which the cost of a security sold or the amount reclassified out of accumulated other comprehensive income into earnings was determined (that is, specific identification, average cost, or other method used) 3. c The gross gains and gross losses included in earnings from transfers of securities from the available-for-sale category into the [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity.") category 4. d The amount of the net unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") on available-for-sale securities for the period that has been included in accumulated other comprehensive income and the amount of gains and losses reclassified out of accumulated other comprehensive income into earnings for the period 5. e The portion of trading gains and losses for the period that relates to [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.") still held at the reporting date. 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 each interim and annual reporting period for which the results of operations are presented, an entity shall disclose all of the following: 1. a The proceeds from sales of [available-for-sale securities](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") and the gross realized gains and gross realized losses that have been included in earnings as a result of those sales 2. b The basis on which the cost of a security sold or the amount reclassified out of accumulated other comprehensive income into earnings was determined (that is, specific identification, average cost, or other method used) 3. c The gross gains and gross losses included in earnings from transfers of securities from the available-for-sale category into the [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity.") category 4. d The amount of the net unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") on available-for-sale securities for the period that has been included in accumulated other comprehensive income and the amount of gains and losses reclassified out of accumulated other comprehensive income into earnings for the period 5. e The portion of trading gains and losses for the period that relates to [trading securities](https://asc.understandingaccounting.org/glossary/t/#trading-securities "Securities that are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.") still held at the reporting date. ##### [320-10-50-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-10) Pending content: yes Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:1050e287822e64eb91a0d42bd0e9ff5000b526621a5725484acfe7daab9c8079 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For any sales of or transfers from securities classified as held-to-maturity, an entity shall disclose all of the following in the notes to financial statements for each period for which the results of operations are presented: 1. a The net carrying amount of the sold or transferred security 2. b The net gain or loss in accumulated other comprehensive income for any derivative that hedged the forecasted acquisition of the held-to-maturity security 3. c The related realized or unrealized gain or loss 4. d The circumstances leading to the decision to sell or transfer the security. (Such sales or transfers should be rare, except for sales and transfers due to the changes in circumstances identified in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6).) 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 any sales of or transfers from securities classified as held-to-maturity, an entity shall disclose all of the following in the notes to financial statements for each interim and annual reporting period for which the results of operations are presented: 1. a The net carrying amount of the sold or transferred security 2. b The net gain or loss in accumulated other comprehensive income for any derivative that hedged the forecasted acquisition of the held-to-maturity security 3. c The related realized or unrealized gain or loss 4. d The circumstances leading to the decision to sell or transfer the security. (Such sales or transfers should be rare, except for sales and transfers due to the changes in circumstances identified in paragraph [320-10-25-6(a) through (f)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-6).) ##### [320-10-50-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:3686814e535bb04c24ae9233abfc33a56828f154d16c8f4448c1c303f5a4e101 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [320-10-25-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-14) sets forth the conditions under which sales of debt securities may be considered as maturities for purposes of the disclosure requirements under paragraph [320-10-50-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-10). ##### [320-10-50-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:1ca82bc0d66bed681a9235556fa3fda8653ee639aff46606ba6d6be01ee4e100 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All sales or transfers of held-to-maturity securities are subject to the disclosure requirements of paragraph [320-10-50-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-10), regardless of the treatment of remaining held-to-maturity securities. ##### [320-10-50-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:e4655ac2ee78371c73249fb5e52075df22b6cef1a7dbd8c5ca25ab42a9f88243 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). ##### [320-10-50-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:04.077Z to 2026-09-09T23:35:04.077Z Record version: sha256:67800b635cbcec6f81c4f129557852c86f434e9c80b551ea823bbd439a218f3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of trading gains and losses for the period related to trading securities still held at the reporting date (required by paragraph [320-10-50-9(e)](https://asc.understandingaccounting.org/asc/320/10/#320-10-50-9)) is calculated as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-E801FBC8-04EB-4075-96C5-751F1EE8CC85-low.gif) Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:f62c6d8939c3bc7d0a654a223daccc970645d8f394172a32690991791c7c0253 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [320-10-55-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7458774bb5a3212c82ea0a55b1f83836df040ce6d6df1ab58643d3c8584ac3a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This implementation guidance discusses the scope application of this Topic to the following instruments and transactions. 1. a Certain debt securities 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 4. d Short sales of debt securities. ##### [320-10-55-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:17778a515129381e9a977a2f8f1577b7153b93b5fdf31d5b438666f127497852 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following debt instruments are within the scope of this Topic if they meet the definition of a [debt security](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions."): 1. a Loans restructured as securities. For example, any loan that was restructured involving a modification of terms would be subject to the provisions of this Topic if the debt instrument meets the definition of a [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations."). See paragraph [310-20-40-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-10) for additional information. 2. b Beneficial interests in securitized financial assets that are in equity form but that meet the definition of a debt security. For example, some beneficial interests issued in the form of equity represent solely a right to receive a stream of future cash flows to be collected under preset terms and conditions (that is, a creditor relationship), while others, according to the terms of the special-purpose entity, must be redeemed by the issuing entity or must be redeemable at the option of the investor. Consequently, those beneficial interests would be within the scope of both this Topic and Subtopic 325-40 since they are required to be accounted for as debt securities. 3. c Certificates of deposit (CDs) or guaranteed investment contracts. For example, certain negotiable jumbo CDs and guaranteed investment contracts might meet the definition of security, which was modeled after the definition provided in the Uniform Commercial Code. 4. d Redeemable convertible preferred stock. For example, convertible preferred stock that has mandatory redemption provisions or is redeemable at the option of the investor is considered a debt security and this Topic would apply. ##### [320-10-55-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:d01d0ba15adb75803b6c0343e758794188b77d480323119fb0b7b678b30815a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even if a loan could readily be converted into a security, the loan is not a debt security until it has been securitized. An example of unsecuritized loans is unsecuritized mortgage loans. However, after mortgage loans are converted to mortgage-backed securities, they are subject to the guidance in this Topic. ##### [320-10-55-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:4701d680a8cbd76271c4ed5471178903bf52d213261c803580e8cd48264e6c59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-55-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:bdae50a4b7531ed2ac30fd7690096f8651b85cec7457f9d2c8819f40880346cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-55-6](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:b45047906afd3ea775da218818c9c610945d755c42f1012d6f1d5b8284fd341c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Sales of securities that the seller does not own at the time of sale are obligations to deliver securities, not investments. Short sale obligations are addressed in the guidance for certain industries (see paragraph [940-320-35-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-1) with respect to broker-dealers and paragraph [942-405-25-1](https://asc.understandingaccounting.org/asc/405/942/#405-942-25-1) with respect to depository institutions). For guidance on evaluating whether a short sale transaction involves a derivative instrument, see paragraph [815-10-55-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-55-57). ##### [320-10-55-7](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:67ac5b8e51dca4bab002ead24e65e4e31497c68e448a8e84fae302c8b6d267c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-10-55-8](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:41785e604452f3034b00cd8dce72fc8f9e9884433ca01f361dfb182543ed09f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity should not look through the form of its investment to the nature of the securities held by an investee to determine whether the scope of this Topic applies. ##### [320-10-55-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:6d54731b0df8ba0d5c525262bbf21f620cd7b13bc92c3b11872d9de51694a4ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. It is not appropriate to look through the form of an investment to determine whether this Topic applies. In the specific situation described in this paragraph, the investment would be considered an equity security. So, this Topic would not apply to that type of investment. (Topic 321 and Subtopic 323-30 provide guidance on the accounting for limited partnership investments.) Another example of an investment that is considered an equity security is an investment in a mutual fund that invests only in U.S. government debt securities. ##### [320-10-55-10](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7867a9dab2750a3fc00b9e9f0b0e204fb5c15b5c6557b999286b426eb85540d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are descriptions of various [structured notes](https://asc.understandingaccounting.org/glossary/s/#structured-note "A debt instrument whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. Structured notes are issued by U.S. government-sponsored enterprises, multilateral development banks, municipalities, and private entities. The notes typically contain embedded (but not separable or detachable) forward components or option components such as caps, calls, and floors. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on nontraditional indexes or nontraditional uses of traditional interest rates or indexes."), using illustrative terms: 1. a Dual-index floater. A bond with a coupon rate that is determined by the spread between two different indexes and that usually includes an above-market interest rate in Year 1. These bonds may have a teaser fixed rate for the first period of the bond's life, after which the interest rate floats according to a predetermined formula. 2. b Inverse floater. A bond with a coupon rate of interest that varies inversely with changes in specified general interest rate levels or indexes, for example, the London Interbank Offered Rate (LIBOR). 3. c Levered inverse floater. A bond with a coupon that varies indirectly with changes in general interest rate levels and that applies a multiplier (greater than 1.00) to the specified index in its calculation of interest. 4. d Delevered floater. A bond with a coupon rate of interest that lags overall movements in specified general interest rate levels or indexes. 5. e Range floater. A bond in which the investor's coupon is dependent on the number of days that a reference rate stays within a preestablished collar; otherwise, the bond pays either 0% interest or a below-market rate. 6. f Lower-of and higher-of floaters. A bond that pays an interest rate stated as the lower of or higher of two different formulas. 7. g Ratchet floater. A bond that pays a floating rate of interest and has an adjustable cap and/or floor that moves in sync with each new reset rate. 8. h Stepped cap-floor floaters. A bond that pays a floating rate of interest, subject to a scheduled cap, scheduled floor, or both. 9. i Floating to floating notes. Varying coupon (first-year LIBOR or U.S. Treasury bill based, second-year prime based). 10. j Floating to fixed notes. Varying coupon (first-year coupon is fixed, second- and third-year coupons are based on LIBOR, U.S. Treasury bills, or prime). 11. k Indexed amortizing notes. A bond that repays principal based on a predetermined amortization schedule or target value. This value is linked to movements within a specific mortgage-backed security or index. The maturity of the bond changes as the related index changes. This instrument includes a varying maturity. 12. l Equity indexed notes. Bond return of interest and/or principal is tied to a specified equity index (for example, the Standard & Poor's S&P 500 Index). This instrument may contain fixed or varying coupon rate and may place all or a portion of principal at risk. 13. m Variable principal redemption bond. A bond whose principal redemption value at maturity is dependent on the change in an underlying index over a predetermined observation period. A typical scenario would be a bond that guarantees a minimum par redemption value of 100%, and the potential for a supplemental principal payment at maturity as compensation for the below-market rate of interest offered with the instrument (providing that the bond satisfies the indexing requirements as outlined in the terms of the offering). 14. n Yield curve note. Fixed coupon, principal varies as follows: \[(5-year swap rate - 3-month $LIBOR - 1%) × 40 + 100%\] × par (but not less than zero). 15. o Crude oil knock-in notes. 1% coupon, principal guaranteed with upside potential based on the strength of the oil market. 16. p Leveraged gold notes. Coupon is zero, variable principal based on the London Gold Index. These notes are designed to incorporate a collar on gold, whereby the investor buys a call and sells a put, in exchange for the coupon. 17. q Gold-linked bull note. Fixed 3% coupon, principal is guaranteed with upside potential if the price of gold increases. 18. r Equity-linked bear note. Fixed 4% coupon, principal is guaranteed with upside potential if a specified Standard & Poor's index falls. 19. s Step-up bonds. Bond provides an introductory above-market yield and the bond then steps up to a new coupon that will be below then-current market rates or, alternatively, the bond may be called. 20. t Multi step-ups. A security that pays investors an introductory above-market yield—reflecting an embedded call option—for a short lockout period, and then is either called or steps up to a higher coupon rate (which will be below then-current market rates). These bonds can also take the form of step-down or variable step-up structures. 21. u Credit-sensitive bond. A bond that has a coupon rate of interest that resets based on changes in an entity's credit rating. 22. v Inflation bond. A bond with a contractual principal amount that is indexed to the inflation rate; the coupon rate is typically below that of traditional bonds of similar maturity. 23. w Disaster bond. A bond that pays a coupon above that of traditional bonds; however, a substantial portion or all of the principal amount is subject to loss if a specified disaster occurs. 24. x Specific equity-linked bond. A bond that pays a coupon slightly below that of traditional bonds of similar maturity; however, the principal amount is linked to the stock market performance of an equity investee of the issuer. The issuer may settle the obligation by delivering the underlying shares of the equity investee or may deliver the equivalent [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") in cash. ##### [320-10-55-11](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:15f570f5d65d43305dced6eb86192da646ca96781f5a08e995d3ab5f45ba8b8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [320-10-35-40](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-40) requires the [retrospective interest method](https://asc.understandingaccounting.org/glossary/r/#retrospective-interest-method "A method of interest income recognition under which income for the current period is measured as the difference between the amortized cost at the end of the period and the amortized cost at the beginning of the period, plus any cash received during the period.") to recognize income on certain securities. The amortized cost amount is calculated as the present value of estimated future cash flows using an effective yield, which is the yield that equates all past actual and current estimates of future cash flow streams to the initial investment. If the effective yield is negative, the amortized cost amount should be calculated using a zero percent effective yield. Thus, the following procedures would be required for each reporting period: 1. a Calculate the effective yield that equates all past actual cash flows and current estimates of future cash flows to the initial investment amount. 2. b Using the rate calculated in (a), or zero percent if negative, calculate the present value of the estimated future cash flows. That amount represents the amortized cost at the end of the period. 3. c Adjust the amortized cost balance to the amount calculated in (b) with the offsetting amount recognized as income for the period. ##### [320-10-55-12](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:1501be4abcda45701de751ab675f75847bc4fdc40f3bf7ddbe144b814e351617 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The preadjusted amortized cost balance should represent the amortized cost balance at the beginning of the period less any cash received on the investment during the period. ##### [320-10-55-13](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:1eff4c14506684033d60736000cdb53c7116ef11b1714567109925858dde17b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 1 (see paragraph [320-10-55-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-16)) illustrates application of the retrospective interest method. ##### [320-10-55-14](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:5c1d8aa22c9b72e410b029c77f3a5a837c6b4ec1fe2efbbac3688f59d0bcd41a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This paragraph and the following paragraph address whether an investor should account for the two structured note securities together as a unit or account for each security separately. The following indicators should be considered for purposes of identifying whether two securities should be viewed as being purchased for a specified investment strategy. All of these indicators are not required to exist for the securities to be accounted for as a unit. Judgment is required in reaching a determination. 1. a The two securities are related in that their fair values will move in opposite directions based on changes in interest rates on a specified date, or after a specified period after issuance. The fair value changes may be caused by a change in the coupon interest rate of the two securities or by altering the maturities of the securities. 2. b The two securities are issued contemporaneously and in contemplation of one another or are issued separately but the terms for their remaining lives are as described in (a). 3. c The two securities are issued by the same counterparty and/or the same issuer (or issued by different issuers but structured through an intermediary). 4. d The two securities were purchased by the investor for the sole purpose of achieving a desired accounting result, and the transactions considered individually would serve no valid business purpose or would not be entered into otherwise. ##### [320-10-55-15](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:77a12d95e27444ab04bb792232c72e5fed7c5cc1fb1574c9e7f96c4b9787b1a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The substance of the investment strategy provided in Example 2 (see paragraph [320-10-55-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-20)) is that the investor has simply purchased a single market-based security that results in neither a gain nor a loss when the interest rate resets and, as such, the accounting should not reflect something different. However, other factors, such as a change in credit ratings or a change in market rates, may cause a change in fair value of the unit. #### Illustrations ##### [320-10-55-16](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:ae59d12b0ee3e754b380a828390398f054fbe0677ef5dbbe438c13798487b93c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [320-10-35-38 through 35-43](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-38) . This Example has the following assumptions: 1. a The investor purchases a 3-year, $100 par value structured note at par. 2. b The principal to be repaid at maturity is based on the performance of the Standard & Poor's S&P 500 Index, which, based on current Standard & Poor's S&P Futures indexes, is expected to provide the investor with principal of $106 at the end of Year 3, and the coupon interest on the note is fixed at 6 percent per year. 3. c On the acquisition date of the note, the investor expects the following cash flows and income to be recognized over the life of the note. - ![](https://asc.understandingaccounting.org/asc-img/GUID-79ECC57A-8BB5-4F1D-B02D-DBFB68790BCE-low.gif) Period Cash Flows Income Recognized Noncash Income Ending Amortized Cost Acquisition $(100) Year 1 6 $7.85 $1.85 $101.85 Year 2 6 8.00 2.00 103.85 Year 3 112 8.15 2.15 - These cash flows produce an effective yield of 7.85 percent. ##### [320-10-55-17](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:43dcaf6bf8a456dad9bca320bd208028734b080b44465714d032b125121c28e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the end of Year 1, assume the investor expects to receive only $80 in principal at the end of Year 3, which results in a negative effective yield of 0.71 percent over the life of the note (assume that the investor concludes that a credit loss has not occurred). Accordingly, the amortized cost amount must be reduced to the present value of the estimated future cash flows using a zero percent effective yield, or $92, at the end of Year 1. The income recognized in Year 1 is negative $2 (the amortized cost amount at the end of Year 1 in the table below of $92 less the amortized cost amount at the beginning of the year of $100 plus cash received during the year of $6). The cash flow and income recognition table as of the end of Year 1 is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-FD04929F-8D61-4B1F-AC05-729488BCEDED-low.gif) s Cash Flows Income Recognized Noncash Income Negative Yield Adjustment Recognized Ending Amortized Cost Acquisition $(100) Year 1 6 $7.85 $1.85 $(9.85) $92 Year 2 6 - (6) - 86 Year 3 86 - (6) - - ##### [320-10-55-18](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:d1676b7bf26a2127fe4b43968fb873af98fbe71e6464566ce3a8c121b93c9e99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. These cash flows produce an effective yield of negative 0.71 percent. ##### [320-10-55-19](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:88368d4d7127f3a7a0f90e25045e03b72181882cf95971836a6ec3b5d954c747 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the end of Year 2, assume the S&P 500 Index market reverses and the investor now expects to receive the same cash flows that it expected upon acquisition of the note. Using the first table above, the investor would increase the amortized cost amount of the note to $103.85 at the end of Year 2, which would result in recognizing income of $17.85 in Year 2 (amortized cost from the first table at the end of Year 2 of $103.85 less the amortized cost from the second table at the end of Year 1 of $92 plus cash received in Year 2 of $6). ##### [320-10-55-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7bf6f4b3677b87f3e359eed92b3d2420e99b48e130b110b0a1a58cd0a48f603a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [320-10-25-19 through 25-20](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-19) . An entity purchases two separate structured notes with opposite interest rate characteristics. The terms of the bonds are described below. - ![](https://asc.understandingaccounting.org/asc-img/GUID-879A6398-55BA-406A-B457-7F3A797E254F-low.gif) Maturity Initial Coupon Reset Provision Bond A: $1 billion face amount 10 years 8.00% "One month after issuance the interest rate resets to 1% if 10-year Treasury bond rates have decreased by 1 basis point since the issuance of Bond A or 15% if Treasury rates have increased by 1 basis point. After the initial reset, the rate is fixed for the remaining term of the bond." Bond B: $1 billion face amount 10 years 8.00% "One month after issuance the interest rate resets to 1% if 10-year Treasury bond rates have increased by 1 basis point since the issuance of Bond B or 15% if Treasury rates have decreased by 1 basis point. After the initial reset, the rate is fixed for the remaining term of the bond." ##### [320-10-55-21](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:d22b91a16a0935e7be4d55415daf2ecf96cdba22eec21003ed61f61b412b16e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If accounted for as separate instruments, the entity could classify the bonds as available-for-sale. (Note that these securities would have to be accounted for as a unit rather than as separate instruments.) After the interest rates on the bonds reset, the entity will sell the bond that is in a loss position recognizing a loss in earnings of $475 million (assuming that the current interest rate is 8 percent). The bond that is in a gain position will have a $475 million unrealized gain in other comprehensive income that will be recognized in earnings as a yield adjustment over the remaining 10-year life of the instrument (assuming no further changes in value). ##### [320-10-55-21A](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-21A) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:88a76b183de70fecad574e74a95443e304ad26985f811488f70b37c09778f359 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-55-22](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:2faf4a1dda55c1deac7444b8bc438554f14f3b142b866072fc4d024ca1044aa8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-55-23](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:9b95058a155346902cc068469c6efd25e893708584741929e569d8bfc3bd957d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [320-10-55-24](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:5d80702030d096faf9a38c9116ab9774e5beaf748dd557fdfd465fe159da190a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the accounting for a transfer from available-for-sale to held-to-maturity. - ![](https://asc.understandingaccounting.org/asc-img/GUID-7F47481A-0361-4282-B9E4-7371AFD4C882-low.gif) Amortized Cost "Unrealized Holding Gain in Other Comprehensive Income (Amortization)" "Deferred Tax Adjustment in Other Comprehensive Income @ 30% (a) Credit (Debit)" "Unrealized Holding Gain, Net of Tax, in Other Comprehensive Income Credit (Debit)" "Cumulative Effect on Interest Income Credit (Debit)" Par Premium (Amortization) Total Fair Value 1/1/X1 "Bond purchased, 6 years from maturity, classified as available for sale" 100 6 106 106 19X1 "Amortization of premium, bringing amortized cost to 105" (1) (1) (1) (1) 19X1 Bond appreciates to 120 15 15 (4.5) 10.5 12/31/X1 Balances 100 5 105 120 15 (4.5) 10.5 (1) 1/1/X2 Bond transferred to held-to-maturity at amortized cost basis plus unrealized holding gain 100 20 120 120 15 (4.5) 10.5 19X2 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X2 Balances 100 16 116 119 12 (3.6) 8.4 (2) 19X3 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X3 Balances 100 12 112 114 9 (2.7) 6.3 (3) 19X4 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X4 Balances 100 8 108 107 6 (1.8) 4.2 (4) 19X5 Amortization of premium and equity component (4) (4) (3) 0.9 (2.1) (1) 12/31/X5 Balances 100 4 104 102 3 (0.9) 2.1 (5) 19X6 Amortization of premium and equity component (4) (4) (3) 0.9 (2) (1) 12/31/X6 Maturity at 100 (100) (100) 100 12/31/X6 Balances - - - - - - (6) (a) The offsetting accounting entry would be to record or adjust a deferred tax liability. ##### [320-10-55-25](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:06.736Z to 2026-09-09T23:35:06.736Z Record version: sha256:7245670d060358d60031506844c41caaa975ab34bd8ca651bf83d1d3ca135f31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For illustrative purposes, amortization of the premium and the unrealized holding gain was computed on a straight-line basis. Premiums and discounts on debt securities should be amortized pursuant to Subtopic 310-20. Paragraph [320-10-35-10B](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-10B) requires that the unrealized [holding gain or loss](https://asc.understandingaccounting.org/glossary/h/#holding-gain-or-loss "The net change in fair value of a security. The holding gain or loss does not include dividend or interest income recognized but not yet received, writeoffs, or the allowance for credit losses.") at the date of transfer be amortized in a manner consistent with any premium or discount. The Cumulative Effect on Interest Income column represents the difference between the amortization of the premium and the unrealized holding gain over the life of the security, and does not reflect any coupon interest received. Source downloaded (UTC): 2026-09-09T23:35:09.381Z to 2026-09-09T23:35:09.381Z Record version: sha256:8cafbc52df21274a656038ee7b5d86d672ebcb595fe397b9222d4381ab647757 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/320/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [320-10-65-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:09.381Z to 2026-09-09T23:35:09.381Z Record version: sha256:a8ff9a6948efb71f3a44363cfc97eb6db329d79e08c8cc9768a4bf9996da5b1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 04/13/2010 after the end of the transition period stated in FSP FAS 115-2 and FAS 124-2, _Recognition and Presentation of Other-Than-Temporary Impairments_. Source downloaded (UTC): 2026-09-09T23:35:15.231Z to 2026-09-09T23:35:15.231Z Record version: sha256:03d2376d5ecbc059bc6ee3400fc9de3267b53b82cfd85d6a67b8ba5924727159 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-00-status) SEC content: yes ##### [320-10-S00-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:15.231Z to 2026-09-09T23:35:15.231Z Record version: sha256:dcc13229523caef8a81f8c04ca577243d45d199879b1727343b9ed9576c41264 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
320-10-S55-1SupersededAccounting Standards Update No. 2018-0403/09/2018
320-10-S99-1SupersededAccounting Standards Update No. 2018-0403/09/2018
320-10-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
320-10-S99-2AmendedAccounting Standards Update No. 2015-1006/12/2015
320-10-S99-2AmendedAccounting Standards Update No. 2010-0401/15/2010
Source downloaded (UTC): 2026-09-09T23:35:17.811Z to 2026-09-09T23:35:17.811Z Record version: sha256:0f2771c4e2ef0339add01d97d65081bac8217352287b2b7b71a49820f94af07f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-35-subsequent-measurement) SEC content: yes #### Holding Gains and Losses Adjustments to Assets and Liabilities as Related to the Implementation of Topic 320 ##### [320-10-S35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:17.811Z to 2026-09-09T23:35:17.811Z Record version: sha256:be02bd35db552a798d066b4f78380e99a29d9d4182cd8a1982b6c4d557082f8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [320-10-S99-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-S99-2), SEC Staff Announcement: Adjustments in Assets and Liabilities for Holding Gains and Losses as Related to the Implementation of Topic 320 for SEC Staff views on adjusting certain assets and liabilities upon the implementation of Topic 320 as if unrealized holding gains or losses from securities classified as available for sale had been realized. Source downloaded (UTC): 2026-09-09T23:35:20.210Z to 2026-09-09T23:35:20.210Z Record version: sha256:8926107c9934b19428c368b398f8cd8a123ca448cc9cd94263d6cf0b435ae9c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-50-disclosure) SEC content: yes #### Marketable Securities ##### [320-10-S50-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:20.210Z to 2026-09-09T23:35:20.210Z Record version: sha256:7cff33160550ff0a0ff1e4daafd7b6d298757b2c25ed387e7e7709b2b7dafe0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.2, for disclosure requirements for marketable securities. #### Other Investments ##### [320-10-S50-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:20.210Z to 2026-09-09T23:35:20.210Z Record version: sha256:4988a6ff5c8d538a890ea21ec37abf912def4e4d90dac0703cff269a3ad1e782 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.12, for disclosure requirements for other investments. Source downloaded (UTC): 2026-09-09T23:35:22.655Z to 2026-09-09T23:35:22.655Z Record version: sha256:103ffb2af580922abc3c2579537c9de66637f9a9ba2d24dd09234569d3084b40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes #### Impairment of Individual Available-for-Sale and Held-to-Maturity Securities ##### [320-10-S55-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:22.655Z to 2026-09-09T23:35:22.655Z Record version: sha256:b8f800489346e2021c924b608d798f0d9062aff7c127e6aa366a7d0ded71a091 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-04](https://asc.understandingaccounting.org/updates/asu-2018-04/). Source downloaded (UTC): 2026-09-09T23:35:28.596Z to 2026-09-09T23:35:28.596Z Record version: sha256:01190cf299c7201fe140b04976a947751c566e294cae80e6380eb0a2658bd15e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/320/10/#sec-99-sec-materials) SEC content: yes ##### [320-10-S99-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:28.596Z to 2026-09-09T23:35:28.596Z Record version: sha256:4529f0cbd9c12ec3680affba782b243386c51d4806a754865465d6df5947d450 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-04](https://asc.understandingaccounting.org/updates/asu-2018-04/). #### SEC Staff Guidance ##### [320-10-S99-2](https://asc.understandingaccounting.org/asc/320/10/#320-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:28.596Z to 2026-09-09T23:35:28.596Z Record version: sha256:227ca961da54b146956ffc309cb1cd864aa2d1e6191d03f491b6006ffb4f8a8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SEC Staff Announcement: Adjustments in Assets and Liabilities for Holding Gains and Losses as Related to the Implementation of Subtopic 320-10. - The SEC staff has been asked whether certain assets and liabilities, such as noncontrolling interests, certain life insurance policyholder liabilities, deferred acquisition costs, and intangible assets arising from insurance contracts acquired in business combinations, should be adjusted with a corresponding adjustment to other comprehensive income at the same time unrealized holding gains and losses from securities classified as available-for-sale are recognized in other comprehensive income. That is, should the carrying value of these assets and liabilities be adjusted to the amount that would have been reported had unrealized gains and losses been realized? - Paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11) addresses specifically the classification of the deferred tax effects of unrealized holding gains and losses reported in other comprehensive income. Paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11) requires that the tax effects of those gains and losses be reported as charges or credits directly to other comprehensive income. That is, the recognition of unrealized holding gains and losses in equity may create temporary differences for which deferred taxes would be recognized, the effect of which would be reported in accumulated other comprehensive income along with the related unrealized holding gains and losses. Therefore, deferred tax assets and liabilities are required to be recognized for the temporary differences relating to unrealized holding gains and losses as though those gains and losses actually had been realized, except the corresponding charges or credits are reported in other comprehensive income rather than as charges or credits to income in the statement of income. - By analogy to paragraph [740-20-45-11(b)](https://asc.understandingaccounting.org/asc/740/20/#740-20-45-11), the SEC staff believes that, in addition to adjusting deferred tax assets and liabilities, registrants should adjust other assets and liabilities that would have been adjusted if the unrealized holding gains and losses from securities classified as available-for-sale actually had been realized. That is, to the extent that unrealized holding gains or losses from securities classified as available-for-sale would result in adjustments of noncontrolling interest, policyholder liabilities, deferred acquisition costs that are amortized using the gross-profits method, or intangible assets arising from insurance contracts acquired in business combinations that are amortized using the gross-profits method had those gains or losses actually been realized, the SEC staff believes that those balance sheet amounts should be adjusted with corresponding credits or charges reported directly to other comprehensive income. As a practical matter, the staff, at this time, would not extend those adjustments to other accounts such as liabilities for compensation to employees. The adjustments to asset accounts should be accomplished by way of valuation allowances that would be adjusted at subsequent balance sheet dates. - For example, certain policyholder liabilities should be adjusted to the extent that liabilities exist for insurance policies that, by contract, credit or charge the policyholders for either a portion or all of the realized gains or losses of specific securities classified as available-for-sale. Further, asset amounts that are amortized using the gross-profits method, such as deferred acquisition costs accounted for under paragraphs [944-30-35-4](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-4) and [944-30-35-11](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-11) and certain intangible assets arising from insurance contracts acquired in business combinations, should be adjusted to reflect the effects that would have been recognized had the unrealized holding gains and losses actually been realized. Further, capitalized acquisition costs associated with insurance contracts covered by paragraphs [944-30-35-1A through 35-3A](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-1A) and [944-30-35-17](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-17) should not be adjusted for an unrealized holding gain or loss unless a "premium deficiency" would have resulted had the gain or loss actually been realized. - This announcement should not affect reported net income. It addresses only the adjustment of certain assets and liabilities and the reporting of unrealized holding gains and losses from securities classified as available for sale. Source downloaded (UTC): 2026-09-09T23:35:32.391Z to 2026-09-09T23:35:58.415Z Record version: sha256:acb469d3e5011ea62a6ef4836fb66d1a7445a041c7d71456e2f21b4464139998 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940: Investments—Debt Securities — Financial Services—Brokers and Dealers ### Machine-generated study aids ```json { "summary": "This subtopic governs how broker-dealers account for investments in debt and equity securities, covering both clearance/settlement activities (General) and proprietary trading (Proprietary Trading Securities). The core rules are that all regular-way trades are reflected on a trade-date basis (320-940-25-1), and proprietary security positions — both inventory and obligations for short inventory positions — are measured initially and subsequently at fair value with unrealized gains and losses included in profit or loss (320-940-30-2, 35-1, 35-2).", "key_points": [ "The statement of financial condition shall reflect all regular-way trades on an accrual or trade-date basis, because risk, benefits, and economic potentials are conveyed at the trade date (320-940-25-1).", "A purchase for the broker-dealer's own account is recorded in inventory with a corresponding credit to net receivable or payable for unsettled regular-way trades; if exchange does not occur on the contracted settlement date, the transaction is reported as a fail-to-receive or fail-to-deliver (320-940-25-2).", "Accrued interest on fixed-income securities is computed from the last coupon payment date to the settlement date and is paid by the purchaser to the seller (320-940-30-1).", "Security positions from proprietary trading — inventory and obligations for short inventory positions — are measured initially and subsequently at fair value, with unrealized gains or losses included in profit or loss measured as the difference between acquisition cost and fair value (320-940-30-2, 35-1 through 35-3).", "Proprietary securities transactions for trading or investment purposes are included in securities owned and securities sold, not yet purchased; payables and receivables from unsettled regular-way trades may be recorded net (320-940-45-2, 45-3).", "Trading gains and losses (realized and unrealized) are generally presented net, and income and expense from complex trading strategies may be reflected net on the income statement (320-940-45-5, 45-6).", "Trading securities activities are reported in the operating section of the statement of cash flows, and gross components of complex trading strategies not shown on the face of the income statement must be disclosed in the notes (320-940-45-7, 50-1)." ], "categories": [ "Industry-specific", "Fair value", "Presentation", "Financial instruments" ], "audience_level": "intermediate", "student_note": "This is the broker-dealer industry rule that carries trading inventory at fair value through earnings, bypassing the trading/AFS/HTM classification scheme; common mistakes are using settlement-date rather than trade-date accounting and forgetting that short positions (\"securities sold, not yet purchased\") are also carried at fair value.", "related_topics": [ "940-10", "940-320", "940-325", "940-810", "320-10", "820-10" ], "key_concepts": [ "broker-dealer", "regular-way trades", "trade-date accounting", "proprietary trading", "securities sold, not yet purchased", "fair value measurement", "fails-to-deliver and fails-to-receive", "complex trading strategies" ] } ``` Source downloaded (UTC): 2026-09-09T23:35:32.391Z to 2026-09-09T23:35:32.391Z Record version: sha256:d207f5396314bb8b7377b2f75100ecefd7c531377c6c51a3fd88feea43c91ee2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/940/#00-status) SEC content: no ##### [320-940-00-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:32.391Z to 2026-09-09T23:35:32.391Z Record version: sha256:5fd8b91ba4a8384138ab02162638f4f08cda973e73d2afb4ba478528a09eca36 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
Financial Asset (2nd def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Repurchase AgreementAmendedAccounting Standards Update No. 2014-1106/12/2014
Repurchase Agreement (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Repurchase Agreement (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Reverse Repurchase AgreementSupersededAccounting Standards Update No. 2014-0603/14/2014
940-320-05-3AmendedAccounting Standards Update No. 2014-0603/14/2014
940-320-30-2AmendedAccounting Standards Update No. 2012-0410/01/2012
940-320-35-1 through 35-3
AmendedAccounting Standards Update No. 2012-0410/01/2012
940-320-45-4AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:1ea6da8672c2b55483e1d06f305bfd382f697a7aa18dec2391b662ce8756fc33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/940/#05-overview-and-background) SEC content: no ##### [320-940-05-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:56ce04913e2aeffc2068f7f12bec1f1c28b9215b3df454e137587bd36c765813 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses investments in debt and equity securities by brokers and dealers in securities (broker-dealers). The guidance in this Subtopic is presented in the following two Subsections: 1. a General 2. b Proprietary Trading Securities. ##### [320-940-05-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:b8f0f211b95bce9afa94c186ddac41999d131a04c8942e813c27a80b93e1227a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance relating to clearance and settlement activities. ### Proprietary Trading Securities ##### [320-940-05-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:27c795fb9e66fd81efc8b5b00d9e39c22087ab7abd90c97eec0cc54eb6d20afe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Proprietary Trading Securities Subsections provide guidance on accounting for [proprietary transactions](https://asc.understandingaccounting.org/glossary/p/#proprietary-transactions "Transactions in financial instruments that broker-dealers execute for their own account."). A broker-dealer may buy and sell securities for its own account. Broker-dealers frequently enter into matched-stock borrow and loan transactions as a finder or conduit, or enter into [repurchase](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement "An agreement under which the transferor (repo party) transfers a financial asset to a transferee (repo counterparty or reverse party) in exchange for cash and concurrently agrees to reacquire that financial asset at a future date for an amount equal to the cash exchanged plus or minus a stipulated interest factor. Instead of cash, other securities or letters of credit sometimes are exchanged. Some repurchase agreements call for repurchase of financial assets that need not be identical to the financial assets transferred.") and reverse repurchase transaction agreements as part of a matched-book trading strategy. Further, complex trading strategies often involve numerous long and short positions in different products, so that those positions reflect a trading position that is different from its individual components (for example, [box spreads](https://asc.understandingaccounting.org/glossary/b/#box-spread "A combination of long calls and short puts (identical with respect to the underlying security issue, number of shares, exercise price, and expiration date) coupled with long puts and short calls (identical with respect to the underlying security issue, number of shares, exercise price, and expiration date). In boxing (coupling), the long calls and short puts with the long puts and short calls, the underlying security issue, the number of shares, and the expiration date remain identical. However, the exercise price of each combination is at a different amount."), conversions, and reversals). #### Regular-Way Trades ##### [320-940-05-4](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:35.402Z to 2026-09-09T23:35:35.402Z Record version: sha256:91085638990ab1645f3bfcc154846d6d78b491f8146b245a7d12d5d393a3d5bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The risk of nonperformance of [regular-way trades](https://asc.understandingaccounting.org/glossary/r/#regular-way-trades "Regular-way trades include both of the following: All transactions in exchange-traded financial instruments that are expected to settle within the standard settlement cycle of that exchange (for example, three days for U.S. exchanges) All transactions in cash-market-traded financial instruments that are expected to settle within the time frame prevalent or traditional for each specific instrument (for example, for U.S. government securities, one or two days).") is minimal given all of the following: 1. a They are fully collateralized on the trade date. 2. b The period of time between trade date and settlement date is reasonably short. 3. c Most equity, U.S. government, and mortgage-backed agency securities are affirmed by both parties to the trade and settle net through a clearing entity. Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:699a6d3db7a5ddefea1aa26cc805605239cb298c86fe37b1833d96edf46fc8b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/940/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-940-15-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:ffb4a53420aa4c0c78f7e68460ef25823401b63868240e4af9d80331fa92ca33 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 940-10-15, with specific qualifications noted below. #### Other Considerations ##### [320-940-15-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:d98584ee7f83d5f4ddf307ed906660f702ed4c177d200a9db208aaa59295917f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on investments in debt and equity securities that are part of a financial-restructuring transaction (as described in paragraphs [940-325-05-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-05-1), [940-325-30-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-30-1), and [940-325-35-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-35-1)), see Subtopic 940-325. ### Proprietary Trading Securities #### Overall Guidance ##### [320-940-15-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:37.124Z to 2026-09-09T23:35:37.124Z Record version: sha256:358d9c85a55de966f51e751758053430f901569a63948ee09f0fd7cfe637f8d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Proprietary Trading Securities Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 940-10-15, and apply to all broker-dealers involved in proprietary trading of securities. Source downloaded (UTC): 2026-09-09T23:35:43.343Z to 2026-09-09T23:35:43.343Z Record version: sha256:db4dfed4355fa6ddf117b253ab31815c9646f2c98f8fbf0cf945804daeed341b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/940/#25-recognition) SEC content: no ### Proprietary Trading Securities ##### [320-940-25-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:43.343Z to 2026-09-09T23:35:43.343Z Record version: sha256:221798dd1c93cc5ce1992d1aad22133d6c3b7691cad1a7157cba08cc8d4dd420 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of financial condition shall reflect all [regular-way trades](https://asc.understandingaccounting.org/glossary/r/#regular-way-trades "Regular-way trades include both of the following: All transactions in exchange-traded financial instruments that are expected to settle within the standard settlement cycle of that exchange (for example, three days for U.S. exchanges) All transactions in cash-market-traded financial instruments that are expected to settle within the time frame prevalent or traditional for each specific instrument (for example, for U.S. government securities, one or two days).") on an accrual or trade-date basis. Risk, benefits, and economic potentials are created and conveyed at the trade date (that is, the inception of the contract), which is when the major terms have been agreed to by the parties. To properly reflect the economic effects of purchase and sale transactions for financial instruments (that is, to reflect the assumption of the risks and rewards resulting from changes in the value of financial instruments), broker-dealers shall account for the changes in value relating to all proprietary or principal transactions on a trade-date basis. ##### [320-940-25-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:43.343Z to 2026-09-09T23:35:43.343Z Record version: sha256:23f2bfcae5950f074fc8e61454fe5e7ec1df521baeef98077651a72b88f1b382 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if the broker-dealer purchased financial instruments for its own account on the date of the statement of financial condition, the transaction shall be reflected in the broker-dealer's inventory with a corresponding credit to net receivable or payable for unsettled regular-way trades. If the exchange does not occur on the contracted settlement date (referred to as a [fail-to-deliver](https://asc.understandingaccounting.org/glossary/f/#fail-to-deliver "A fail-to-deliver is a securities sale to another broker-dealer that has not been delivered to the buying broker-dealer by the close of business on the settlement date.") or [fail-to-receive](https://asc.understandingaccounting.org/glossary/f/#fail-to-receive "A fail-to-receive is a securities purchase from another broker-dealer not received from the selling broker-dealer by the close of business on the settlement date.")), these transactions shall be recognized on the statement of financial condition as fails-to-receive or fails-to-deliver. Source downloaded (UTC): 2026-09-09T23:35:47.155Z to 2026-09-09T23:35:47.155Z Record version: sha256:53f91bff821539e248e5cecbbf053ec2491f028f19c3877cca40785359e52997 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/320/940/#30-initial-measurement) SEC content: no #### Clearance and Settlement ##### [320-940-30-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:47.155Z to 2026-09-09T23:35:47.155Z Record version: sha256:54c230b2946ddf8f48e2c8f39214e61f6b3c6d6f184381110252228bfb6c52b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accrued interest earned on fixed-income securities shall be computed from the last coupon payment date up to the settlement date. This amount shall be paid to the seller of the instrument by the purchaser, who then receives the full periodic interest amount on the next coupon payment date. ### Proprietary Trading Securities ##### [320-940-30-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:47.155Z to 2026-09-09T23:35:47.155Z Record version: sha256:5779b37472161103506dee652da2359eeca47829ab31a134d2f42056e8d76807 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A broker-dealer may buy and sell securities for its own account. Security positions resulting from proprietary trading shall be measured initially at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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."), including both of the following: 1. a Inventory 2. b Obligations for short inventory positions. Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:05ad28d69103987302324149bb1f18c890a98e7afd11aae22f03c63961c64043 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/940/#35-subsequent-measurement) SEC content: no ### Proprietary Trading Securities ##### [320-940-35-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:e786618700e3eeec7751643ea8ddc51fd434c574c2bc5ef2769ec5b99bcef51b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Security positions resulting from proprietary trading shall be measured subsequently at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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."), including both of the following: 1. a Inventory 2. b Obligations for short inventory positions. ##### [320-940-35-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:e78f975a32557bf943ca60bc7b7e8b4ba5a7c0a94baa37ad38d45595227dd6c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any unrealized gains or losses resulting from subsequent measurements of these to fair value shall be included in profit or loss. #### Trading Gains and Losses ##### [320-940-35-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:49.652Z to 2026-09-09T23:35:49.652Z Record version: sha256:3325fca808c9f0ed6ca8330cb982ac841857300158697c87eef82382325d9e32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The profit or loss shall be measured by the difference between the acquisition cost and the fair value. Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:a60fb8db31dafe4620f60f2e5223dfbdf9cbeb57e346f9df127881119b796a97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/940/#45-other-presentation-matters) SEC content: no ### Proprietary Trading Securities #### Consolidation ##### [320-940-45-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:4079a3ff622588c5ac74f22e3d5b86da4a6f0d1e047c595e1b8f3fbdb7c204bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on consolidation of majority-owned investee entities, see paragraph [940-810-45-1](https://asc.understandingaccounting.org/asc/810/940/#810-940-45-1). #### Balance Sheet ##### [320-940-45-2](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:efe090c043499aa39d40be7bddda2fbfae878d88c0c0e7fd99e689d4136bbce8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Proprietary securities transactions entered into by a broker-dealer for trading or investment purposes shall be included in securities owned and securities sold, not yet purchased. ##### [320-940-45-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:d1567ed1f7a6b609f04bafc39f72c52484fa7ba9adcf2831623ad8cb86a007bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payables and receivables arising from unsettled [regular-way trades](https://asc.understandingaccounting.org/glossary/r/#regular-way-trades "Regular-way trades include both of the following: All transactions in exchange-traded financial instruments that are expected to settle within the standard settlement cycle of that exchange (for example, three days for U.S. exchanges) All transactions in cash-market-traded financial instruments that are expected to settle within the time frame prevalent or traditional for each specific instrument (for example, for U.S. government securities, one or two days).") may be recorded net in an account titled net receivable (or payable) for unsettled regular-way trades. #### Income Statement ##### [320-940-45-4](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:656dc79c12111527fdd2ad5b8510974fecd97cdb701ffd46dc093c231611b8f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The changes in the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") of fixed-income securities owned that were purchased at a discount or premium is composed of accreted interest income or changes in the fair value of the securities or both. Consideration should be given to reporting these components separately as interest income and trading gains and losses, respectively. ##### [320-940-45-5](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:cfb5c441e62931e1132f985e856882c1d53ca0bb7bb6bce294de05b948cc3623 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Trading gains and losses, which are composed of both realized and unrealized gains and losses, shall generally be presented net. ##### [320-940-45-6](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:bcf6bceb54f4b2fb96b3ed72fb4a2610b8ddb4744fe9eee20aeaa9c40cab5a00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The income and expense resulting from complex trading strategies as described in paragraph [940-320-05-3](https://asc.understandingaccounting.org/asc/320/940/#320-940-05-3) may be reflected net in the income statement, with disclosure of the gross components either on the face of the income statement or in the notes to financial statements. #### Statement of Cash Flows ##### [320-940-45-7](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:52.462Z to 2026-09-09T23:35:52.462Z Record version: sha256:8836793a62ad6dce6d0c8d0dfcbc5024f5c25fd6dfce468eff06ac367135a331 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Broker-dealers shall report their trading securities activities in the operating section of the statement of cash flows. Source downloaded (UTC): 2026-09-09T23:35:55.220Z to 2026-09-09T23:35:55.220Z Record version: sha256:44370f7e1473150efa2e18428d209ffd388e5f489d56ece826b4de4cf0bf6494 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-940-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/940/#50-disclosure) SEC content: no ##### [320-940-50-1](https://asc.understandingaccounting.org/asc/320/940/#320-940-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:35:55.220Z to 2026-09-09T23:35:55.220Z Record version: sha256:a74b26a00d6254fe0154df1211cc1b440a1251ede65b416ca8471fa9c38be005 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the gross income and expense components resulting from complex trading strategies are not disclosed on the face of the income statement in accordance with paragraph [940-320-45-6](https://asc.understandingaccounting.org/asc/320/940/#320-940-45-6), they shall be disclosed in the notes to financial statements. 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. Source downloaded (UTC): 2026-09-09T23:36:18.729Z to 2026-09-09T23:36:30.190Z Record version: sha256:fa8208535364f4a6e7673ee2d8a3681ad87bcf58bc2834788919ce6ac72ab148 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-944: Investments—Debt Securities — Financial Services—Insurance ### Machine-generated study aids ```json { "summary": "ASC 320-944 was the insurance-industry (\"Financial Services—Insurance\") incremental guidance layered onto Investments—Debt Securities. Every paragraph in this subtopic (05-1, 15-1, 15-2, 25-1, 50-1, 50-2) has been superseded by Accounting Standards Update No. 2016-01, so the subtopic contains no operative guidance. Insurance entities now follow the general guidance in ASC 320 for debt securities and ASC 321 for equity securities.", "key_points": [ "All content of ASC 320-944 — the Overview (320-944-05-1), Scope (320-944-15-1 and 15-2), Recognition (320-944-25-1), and Disclosure (320-944-50-1 and 50-2) paragraphs — has been superseded by ASU 2016-01.", "Because no paragraph survives, there is no insurance-specific incremental recognition or disclosure requirement remaining in this subtopic.", "Insurance entities account for investments in debt securities under the general subtopic ASC 320-10 (trading, available-for-sale, and held-to-maturity classification).", "ASU 2016-01 moved equity securities out of ASC 320 into ASC 321, eliminating the need for the insurance-specific overlay that this subtopic provided.", "Entities researching pre-ASU 2016-01 periods must consult the superseded text as it existed before adoption, applying the transition guidance in ASU 2016-01." ], "categories": [ "Financial instruments", "Industry-specific", "Transition and effective dates", "Disclosure" ], "audience_level": "intermediate", "student_note": "This subtopic is a shell: every paragraph is superseded, so citing it as live authority is a mistake. If asked how an insurer accounts for debt securities today, point to ASC 320-10 (and ASC 321 for equity securities), not ASC 320-944.", "related_topics": [ "320-10", "321-10", "944", "825-10", "326-30" ], "key_concepts": [ "superseded guidance", "insurance entities", "debt securities", "industry-specific overlay", "available-for-sale securities", "recognition and measurement of financial instruments" ] } ``` Source downloaded (UTC): 2026-09-09T23:36:18.729Z to 2026-09-09T23:36:18.729Z Record version: sha256:79d6492f4125b96535649f9a40dc6337f013ce68012c0d4f6cef2cc727405dd5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-944-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/944/#00-status) SEC content: no ##### [320-944-00-1](https://asc.understandingaccounting.org/asc/320/944/#320-944-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:18.729Z to 2026-09-09T23:36:18.729Z Record version: sha256:7b50fc510cfc960ff90c60f70953876f982a8f711e18484b64b7b2fab3f94edf 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
Carrying AmountSupersededAccounting Standards Update No. 2016-0101/05/2016
Separate AccountSupersededAccounting Standards Update No. 2016-0101/05/2016
944-320-05-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-320-15-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-320-15-2SupersededAccounting Standards Update No. 2016-0101/05/2016
944-320-25-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-320-50-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-320-50-2SupersededAccounting Standards Update No. 2016-0101/05/2016
944-320-50-2AddedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T23:36:20.803Z to 2026-09-09T23:36:20.803Z Record version: sha256:f4a80d3bec7c602f03f1e5819746028250d48512ea86948ef348a5950e980c12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-944-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/944/#05-overview-and-background) SEC content: no ##### [320-944-05-1](https://asc.understandingaccounting.org/asc/320/944/#320-944-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:20.803Z to 2026-09-09T23:36:20.803Z Record version: sha256:29907887478bb04ff4cbc05af767fded20e792aeabfe81cbccbbbdf427b2dad0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:36:22.926Z to 2026-09-09T23:36:22.926Z Record version: sha256:9245c08d0343fb844ed0e277a7e2348c37b617e819c930cbecfdfaa56e068ec3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/944/#15-scope-and-scope-exceptions) SEC content: no ##### [320-944-15-1](https://asc.understandingaccounting.org/asc/320/944/#320-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:22.926Z to 2026-09-09T23:36:22.926Z Record version: sha256:0e92beeaab31c86cf7bcff7a0082e65c80b8e33e5946d18eba88712f1d2930a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-944-15-2](https://asc.understandingaccounting.org/asc/320/944/#320-944-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:22.926Z to 2026-09-09T23:36:22.926Z Record version: sha256:91acd95ac6e0483fc97106791a0a3ba97198c2f25e96f075d55537775cc38ac3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:36:26.835Z to 2026-09-09T23:36:26.835Z Record version: sha256:1a06a1747fd1a79cb79f0d0e68fa374df2c7a90b8027b2b20599d4e9009f76ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-944-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/944/#25-recognition) SEC content: no ##### [320-944-25-1](https://asc.understandingaccounting.org/asc/320/944/#320-944-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:26.835Z to 2026-09-09T23:36:26.835Z Record version: sha256:323cf07d48d558d6900f596c1f03963b22a9f025740778f3466f888d2c213470 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:36:30.190Z to 2026-09-09T23:36:30.190Z Record version: sha256:230b348f259e1a73cc0e4a257128b9a4b3cac6a031afac1f8746ebf048dde2ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-944-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/944/#50-disclosure) SEC content: no ##### [320-944-50-1](https://asc.understandingaccounting.org/asc/320/944/#320-944-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:30.190Z to 2026-09-09T23:36:30.190Z Record version: sha256:803818b6642738057e4cabb3b19dac8cf9021ed3fbff47b8646efc239d39a722 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-944-50-2](https://asc.understandingaccounting.org/asc/320/944/#320-944-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:30.190Z to 2026-09-09T23:36:30.190Z Record version: sha256:50b46d39c6db7f52e1e423d72f544f3923a99f4218ebe5a63c9a0deff3867d0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:36:33.761Z to 2026-09-09T23:37:20.253Z Record version: sha256:04c214307a68889d548a60a5b18e7899b54c16b86bfd73ffe3a02af47486427d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946: Investments—Debt Securities — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "This Subtopic governs how an investment company (a fund) accounts for its portfolio of debt and equity securities, with special attention to high-yield debt securities such as zero-coupon, step, and payment-in-kind (PIK) bonds. Core rules: record purchases and sales on trade date, initially measure at transaction price including commissions, subsequently measure at fair value, recognize interest on step and PIK bonds using the interest method (with reserves when income is not expected to be realized), and record dividends on the ex-dividend date. It also prescribes the treatment of capital infusions, workout expenditures, and writeoffs of purchased versus accrued interest.", "key_points": [ "Security purchases and sales are recorded as of the trade date; transactions outside conventional channels (private placements, tender offers) are recorded when the company obtains a right to demand the securities or proceeds and incurs the corresponding obligation (320-946-25-1 through 25-3).", "Dividend income and liabilities for dividends to shareholders are recorded on the ex-dividend date, not the declaration, record, or payable date; returns of capital are credited to investment cost (320-946-25-4; 35-5).", "Investments are initially measured at transaction price including commissions and other purchase charges, and subsequently measured at fair value, with actively traded securities valued at the last quoted sales price (320-946-30-1; 35-1; 35-3).", "Interest income on payment-in-kind bonds and step bonds is determined using the interest method (835-30-35-2), and premiums and discounts are amortized using the interest method (320-946-35-10; 35-12; 35-20).", "A reserve against income must be established to the extent interest income is not expected to be realized: for PIK bonds, recorded interest receivable plus the bond's initial cost may not exceed fair value; for step bonds, acquisition amount plus discount to be amortized may not exceed undiscounted future cash collections that are reasonably estimable and probable (320-946-35-11; 35-13; 30-4; reserves per 450-20, 35-19).", "Written-off interest that had been recognized as interest income reduces interest income, while writeoffs of purchased interest increase the security's cost basis and are unrealized losses until the security is sold (320-946-35-17; 35-18).", "Capital infusions are added to cost basis, restructuring/workout expenditures are realized losses, ongoing protective or claim-pursuit costs are operating expenses, and cost and realized gains/losses use specific identification or average cost applied to all investments (320-946-35-14 through 35-16; 40-1)." ], "categories": [ "Recognition", "Initial measurement", "Subsequent measurement", "Industry-specific" ], "audience_level": "advanced", "student_note": "This is industry guidance for funds: unlike ordinary ASC 320 classification into trading/AFS/HTM, investment companies carry everything at fair value, so the hard questions are income recognition on non-cash-pay bonds and how to characterize workout costs and interest writeoffs. A common trap is confusing the two components of interest receivable—accrued interest written off reduces interest income, but purchased interest written off is added to cost basis and appears as an unrealized loss until sale.", "related_topics": [ "946-10", "946-210", "835-30", "310-20", "450-20", "820" ], "key_concepts": [ "investment company", "high-yield debt securities", "payment-in-kind bonds", "step bonds", "trade date accounting", "ex-dividend date", "interest method", "purchased interest writeoff" ] } ``` Source downloaded (UTC): 2026-09-09T23:36:33.761Z to 2026-09-09T23:36:33.761Z Record version: sha256:fd1f506a6a2396c5f8032321abbb99a551a31086b00ea38c7e9a50b969199b8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/946/#00-status) SEC content: no ##### [320-946-00-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:33.761Z to 2026-09-09T23:36:33.761Z Record version: sha256:9981a022235a9fd1a5d3b3577e32a7283a4ea393c9fd7c347a98ebda79b3f67d 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
946-320-30-1AddedAccounting Standards Update No. 2013-0806/07/2013
946-320-35-11AmendedAccounting Standards Update No. 2012-0410/01/2012
946-320-35-20AmendedAccounting Standards Update No. 2017-0803/30/2017
946-320-40-1AmendedAccounting Standards Update No. 2013-0806/07/2013
Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:9781f318e71fad230065a66dce9cb0b3a1325611b6e0e2f746f1b1166151601a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/946/#05-overview-and-background) SEC content: no ##### [320-946-05-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:37c7f7a2a07ddf55977ced7b3561b2e2399d51ae8da9f937f6600e64d52319a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses an investment company's accounting for investments in debt and equity securities, including matters encountered by investment companies holding [high-yield debt securities](https://asc.understandingaccounting.org/glossary/h/#high-yield-debt-securities "Corporate and municipal debt securities having a lower-than-investment-grade credit rating (BB+ or lower by Standard & Poor's, or Ba or lower by Moody's). Because high-yield debt securities typically are used when lower-cost capital is not available, they have interest rates several percentage points higher than investment-grade debt and often have shorter maturities. These high-yielding corporate and municipal debt obligations are frequently referred to as junk bonds.") in their portfolios. Included is discussion of all of the following matters: 1. a Interest income from step bonds and payment-in-kind bonds 2. b Previously recorded purchased interest if recoverability becomes doubtful in connection with defaults or potential defaults by issuers 3. c Additional expenditures made by investment companies in support of high-yield debt securities and other securities. ##### [320-946-05-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:c316981924a08445517cf8187f9a5db04943875b895f188da4f9c7a0fda3960d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment company's securities portfolio typically comprises substantially all its net assets. Portfolio securities produce income from dividends, interest, and changes in [fair values](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") of securities while they are owned by the fund. #### High-Yield Debt Securities ##### [320-946-05-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:df80c0a1e02482332c5a8c6f1945e16228df82c74bc2f2397d3580d83c73a3b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. High-yield debt securities ([junk bonds](https://asc.understandingaccounting.org/glossary/j/#junk-bonds "See High-Yield Debt Securities.")) take various forms. The most common forms may include zero-coupon bonds, [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."), and deep-discount [step bonds](https://asc.understandingaccounting.org/glossary/s/#step-bonds "Bonds that involve a combination of deferred-interest payment dates and increasing interest payment amounts over the bond lives and, thus, bear some similarity to zero-coupon bonds and to traditional debentures."). High-yield debt securities have supplied significant capital for business expansion and corporate restructuring. These securities are inherently different from investment-grade debt securities. They present additional credit, liquidity, and market risks for all participants in this marketplace: holders, issuers, underwriters, and broker-dealers. ##### [320-946-05-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:c504198a00e26fa42ae33fb35561424f735eadca252f364f147ace623a241ed0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. High-yield debt securities typically are unsecured and subordinate to other debt outstanding. Many issuers of high-yield debt securities are highly leveraged, with limited equity capital. That, plus a market for such securities that may not always be liquid, may increase the market risk, liquidity risk, and credit risk of high-yield debt securities as follows: 1. a Market risk. In contrast to investment-grade bonds (the market prices of which change primarily as a reaction to changes in interest rates), the market prices of high-yield bonds (which are also affected by changes in interest rates) are influenced much more by credit factors and financial results of the issuer and by general economic factors that influence the financial markets as a whole. Such factors often make it difficult to substantiate the market valuation of high-yield bonds. 2. b Liquidity risk. The market risk is often heightened by liquidity risk; that is, the absence of centralized high-yield bond exchanges and relatively thin trading markets, which make it more difficult to liquidate holdings quickly and increase the volatility of the market price. There is generally no centralized or regulated procedure for pricing high-yield debt issues. 3. c Credit risk. Issues of high-yield debt securities are more likely to default on interest or principal than are issues of investment-grade securities. ##### [320-946-05-5](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:1af394c1928e071eb1deb55754aa76f0e0221f11a966b95bb8375f7e62474ee7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. High-yield debt securities may be issued or traded at significant discounts from their face amounts (principal). ##### [320-946-05-6](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:e95fa3069a76c4b8e9f83bd87ea0cb47a401e10b74f290f6f5932a10ebb0ad69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interest for some high-yield debt securities is not paid currently. Instead, interest may be deferred and paid at maturity (zero-coupon bonds) or in periodic interest payments that do not commence until a specific date in the securities' life cycle (step bonds), or interest may be paid in the form of additional debt securities of the issuer bearing similar terms (payment-in-kind bonds). #### Interest Receivable Purchased on Defaulted Debt Securities ##### [320-946-05-7](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:616efdd75142f57fe1f3e9ca606d7cb45ceaf0b33981f3866dad23d6fcf93c25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interest receivable from debt securities generally comprises both of the following distinct components: 1. a Interest purchased from the previous bondholder 2. b Interest accrued by the investment company during the holding period. ##### [320-946-05-8](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:6aca7527f672643ee6d49ec1eb21175b6a77c66561d26b220b965f1b89c6a9c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If market prices fluctuate significantly or issues of debt securities have defaulted, a judgment about whether to write off interest receivable will involve both components. Writeoffs of interest receivable differ from traditional writeoffs of trade accounts receivable since they can significantly affect an investment company's statement of operations, the performance measurement ratios of expenses to average net assets, and net investment income to average net assets. #### Expenditures in Support of Defaulted Debt Securities ##### [320-946-05-9](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:64e3bcf305b25a59f9f633a896c492c57691256011f10c6b8b034bee19def488 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The market for many high-yield debt securities is relatively thin. When issuers of high-yield and other debt securities default, the bondholders often become active in any negotiations and in the workout process. This process often results in new terms that restructure the obligations to allow the issuer to continue to meet its ongoing interest obligations and maintain some, if not all, of the principal value to the holders of the obligations. ##### [320-946-05-10](https://asc.understandingaccounting.org/asc/320/946/#320-946-05-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:36.772Z to 2026-09-09T23:36:36.772Z Record version: sha256:f478806df90138a59fb242ffecae5e37d5bbf642c5b670c952267bff71950207 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Adverse economic developments often lead to increases in the default rates of high-yield and other debt securities. In addition to occasional [capital infusions](https://asc.understandingaccounting.org/glossary/c/#capital-infusions "Expenditures made directly to the issuer to ensure that operations are completed, thereby allowing the issuer to generate cash flows to service the debt. Such expenditures are usually nonrecurring. In certain cases, bondholders may receive additional promissory notes, or the original bond instrument may be amended to provide for repayment of the capital infusions."), professional fees to legally restructure the investments are frequently incurred by the bondholders. Source downloaded (UTC): 2026-09-09T23:36:39.621Z to 2026-09-09T23:36:39.621Z Record version: sha256:fa32f27ba551b3fb34be2b4fe18928184b3f536d631bb73ab96a5f5e8e807619 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/946/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-946-15-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:39.621Z to 2026-09-09T23:36:39.621Z Record version: sha256:c66baa43e3988597dcd9c3888f1bf695adbface7fa780a0d0b51ac5f1acadd96 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 946-10-15, with instrument qualifications noted below. #### Instruments ##### [320-946-15-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:39.621Z to 2026-09-09T23:36:39.621Z Record version: sha256:9e031b594a9182c918b45b106e9398ae188930f91341510211d67c20aaaa230a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Securities that have no credit rating shall be classified as [high-yield debt securities](https://asc.understandingaccounting.org/glossary/h/#high-yield-debt-securities "Corporate and municipal debt securities having a lower-than-investment-grade credit rating (BB+ or lower by Standard & Poor's, or Ba or lower by Moody's). Because high-yield debt securities typically are used when lower-cost capital is not available, they have interest rates several percentage points higher than investment-grade debt and often have shorter maturities. These high-yielding corporate and municipal debt obligations are frequently referred to as junk bonds.") if they otherwise have the characteristics of such securities. Source downloaded (UTC): 2026-09-09T23:36:43.124Z to 2026-09-09T23:36:43.124Z Record version: sha256:344cae59f76516cf3bf28733a593e5fcfebf6f0a463c6bc88c9818bffb855c9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/946/#25-recognition) SEC content: no #### Effective Date of Transactions ##### [320-946-25-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:43.124Z to 2026-09-09T23:36:43.124Z Record version: sha256:68397af2690920ef356a5e563ccb7e8a0a9f4d99083c886e81a782a6c067c93a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment company shall record security purchases and sales as of the trade date, the date on which the investment company agrees to purchase or sell the securities, so that the effects of all securities trades entered into by or for the account of the investment company to the date of a financial report are included in the financial report. ##### [320-946-25-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:43.124Z to 2026-09-09T23:36:43.124Z Record version: sha256:9a039e6e9cff91191c75f409021b06a69f5dcb7bea4d0769fac2c3d83dec0b1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A securities transaction outside conventional channels, such as through a private placement or by submitting shares in a tender offer, shall be recorded as of the date the investment company obtained a right to demand the securities purchased or to collect the proceeds of sale, and incurred an obligation to pay the price of the securities purchased or to deliver the securities sold, respectively. Determining the recording date may sometimes require an interpretation by legal counsel. ##### [320-946-25-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:43.124Z to 2026-09-09T23:36:43.124Z Record version: sha256:8d9d21627c89b756be6f548fbc3055837bb8bd6ee3399fea9bc98bd38bdc252c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even if the investment company tenders its securities, it shall continue to value the shares tendered until the number of shares accepted in the tender is known. Thereafter, the investment company shall value the assets to be received for the shares tendered. ##### [320-946-25-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:43.124Z to 2026-09-09T23:36:43.124Z Record version: sha256:156c83e166b3e4ce575e6b0f903a7f6114bead978f750b5e54fcecd16b6bf6ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment companies shall record dividend income on the ex-dividend date, not on the declaration, record, or payable date, because on the ex-dividend date the quoted market price of listed securities and other market-traded securities tends to be affected by the exclusion of the dividend declared. Also, investment companies shall record liabilities for dividends to shareholders on the ex-dividend or ex-distribution date because mutual fund shares are purchased and redeemed at prices equal to or based on net asset value. Investors purchasing shares between the declaration and ex-dividend dates are entitled to receive the dividend, whereas investors purchasing shares on or after the ex-dividend date are not entitled to the dividend. 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. Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:899fc92c0014997d55e3584f2d6b1268cfa34a21a65a2aeb49254dd2e8c9aa1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/946/#35-subsequent-measurement) SEC content: no ##### [320-946-35-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:93845e8e10f838d7def6a36c978e1dddecfb6d01dc73833791c6b6b0f8a86a73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment company shall measure investments in debt and equity securities subsequently at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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."). #### Methods of Valuing Investments ##### [320-946-35-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:78d9d0dca37c6812686b63a455a65e1d78c61445f26dceff0bd42208d1c3751f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Valuing market-traded securities—that is, securities listed and traded on one or more securities exchanges, or unlisted securities traded regularly in over-the-counter markets (for example, U.S. Treasury bonds, notes and bills or stocks traded in the National Market System of the National Association of Securities Dealers Automated Quotations \[NASDAQ\] Stock Market)—ordinarily is not difficult, because quotations of completed transactions are published daily, or price quotations are readily obtainable from financial reporting services or individual broker-dealers. ##### [320-946-35-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:41e285ffa584f7b7561bff455d11e87767898d49e6bad11d32ab6376ae0a14c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A security traded in an active market on the valuation date shall be valued at the last quoted sales price. ##### [320-946-35-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:a637a7e983215a451a62b1af374ef7782c73ac78345cfdf8723a9e0e7da1ce9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In general, the discussion of valuation of securities in this Subtopic also applies to foreign securities. Portfolio securities that are traded primarily on foreign securities exchanges shall be valued at the functional currency (usually the U.S. dollar equivalent) values for such securities on their exchanges. #### Dividends ##### [320-946-35-5](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:66770f39c3118258553a1e02f8ee6be41f2992b6536a294d08d017f628b42594 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Dividends on investment securities shall be recorded on the ex-dividend date. Distributions that represent [returns of capital](https://asc.understandingaccounting.org/glossary/r/#return-of-capital "Distributions by investment companies in excess of tax-basis earnings and profits.") shall be credited to investment cost rather than to investment income. ##### [320-946-35-6](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:89045adb54f00ad80d4dd121ffadb6a8f14f91e1114ff28278e190b09319fbae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Stock splits and stock dividends in shares of the same class as the shares owned are not income to the investment company. However, dividends for which the recipient has the choice to receive cash or stock are usually recognized as investment income in the amount of the cash option, because in such cases cash is usually the best evidence of fair value of the stock. ##### [320-946-35-7](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:b8653577cb1c0dcdcd70c90973be4d082fefc9017d9771dfd6af39268151e4eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other noncash dividends shall be recognized as investment income at the fair value of the property received. ##### [320-946-35-8](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:8a9baad2b9d61f9a8cdee646b5eed338bd84255809d556da36a1c2eac7750089 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Stock rights (that is, subscription rights) received shall be allocated a prorated portion of the cost basis of the related investment; however, allocation is not required if the fair value of the rights is 15 percent or less of the fair value of the investment company's holdings. ##### [320-946-35-9](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:4a848e1191699b13682143c64a7f720fc855be204cfbdd0761c9c3dd361e48f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cash dividends declared on stocks for which the securities portfolio reflects a short position as of the record date shall be recognized as an expense on the ex-dividend date. #### High-Yield Debt Securities ##### [320-946-35-10](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:8d492a9f13c19695b2be462df212293242d11eafafce8d52c07ae38551dc13f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment company shall use the [interest method](https://asc.understandingaccounting.org/glossary/i/#interest-method "The method used to arrive at a periodic interest cost (including amortization) that will represent a level effective rate on the sum of the face amount of the debt and (plus or minus) the unamortized premium or discount and expense at the beginning of each period.") (see paragraph [835-30-35-2](https://asc.understandingaccounting.org/asc/835/30/#835-30-35-2)) to determine interest income on [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."). ##### [320-946-35-11](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:35049c1f458e5dde0f0fc0ed667bce040e1029cf23de1bf207fb5b36d5f37b2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent that interest income to be received in the form of [baby bonds](https://asc.understandingaccounting.org/glossary/b/#baby-bonds "See Payment-in-Kind Bonds.") is not expected to be realized, a reserve against income shall be established. Specifically, the investment company shall determine periodically that the total amount of interest income recorded as receivable, plus the initial cost of the underlying payment-in-kind bond, does not exceed the fair value of those assets. ##### [320-946-35-12](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:8d101f06347789e23b1165c383e28562e1439a585607beb6c7f601db86ffaef8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Income on [step bonds](https://asc.understandingaccounting.org/glossary/s/#step-bonds "Bonds that involve a combination of deferred-interest payment dates and increasing interest payment amounts over the bond lives and, thus, bear some similarity to zero-coupon bonds and to traditional debentures.") should be recognized using the interest method (see paragraph [835-30-35-2](https://asc.understandingaccounting.org/asc/835/30/#835-30-35-2)). ##### [320-946-35-13](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:307ffcff16e04366c8435bfb9a0dbb688232bb99d82eb22937ca0db13efb81f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent that interest income is not expected to be realized, a reserve against income shall be established. Specifically, 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. #### Expenditures in Support of Defaulted Debt Securities ##### [320-946-35-14](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:7878476d058cee6e3bebb84c769841215d769fe8759b7a6792d176febf3c5296 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All [capital infusions](https://asc.understandingaccounting.org/glossary/c/#capital-infusions "Expenditures made directly to the issuer to ensure that operations are completed, thereby allowing the issuer to generate cash flows to service the debt. Such expenditures are usually nonrecurring. In certain cases, bondholders may receive additional promissory notes, or the original bond instrument may be amended to provide for repayment of the capital infusions.") shall be recorded as additions to the cost bases of related securities. ##### [320-946-35-15](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:0bfd93b1456179d069f70f3da667fec9c1d66e25508e14c96c761bb1d6a24715 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Workout expenditures](https://asc.understandingaccounting.org/glossary/w/#workout-expenditures "Professional fees (legal, accounting, appraisal) paid to entities unaffiliated with the investment company's advisor or sponsor in connection with any of the following: Capital infusions Restructurings or plans of reorganization Ongoing efforts to protect or enhance an investment The pursuit of other claims or legal actions.") that are incurred as part of negotiations of the terms and requirements of capital infusions, or that are expected to result in the restructuring of or a plan of reorganization for an investment shall be recorded as realized losses. ##### [320-946-35-16](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:14702d3387b5d0064fb1d1eab340d0a25c8865f736ef1c77d7bd2ad9448b339c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Ongoing expenditures to protect or enhance an investment, or expenditures incurred to pursue other claims or legal actions, shall be treated as operating expenses. #### Interest Receivable Purchased on Defaulted Debt Securities ##### [320-946-35-17](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:5cc604f354609c5e33f70b7e594d0da29a9fc7ee4de80b366655a6bdb4fedf48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of interest receivable on defaulted debt securities written off that was recognized as interest income shall be treated as a reduction of interest income. ##### [320-946-35-18](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:35b906f5f34be006bbc3043f2bb167f7cd0b8b7c2eb08d8c7f078f8ccfbb94c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Writeoffs of purchased interest should be reported as both of the following: 1. a Increases to the cost basis of the security 2. b Unrealized losses until the security is sold. ##### [320-946-35-19](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:86b0405de46dcaf4a4cbcb468627184cfdac03722c06c4ab4662fb6298d6fe3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those reserves shall be recorded when they become probable and estimable in accordance with the guidance in Subtopic 450-20. #### Premiums and Discounts ##### [320-946-35-20](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:641b59af24c99c4c62a2ac6e88995a83e082248d7dcc13c9b92ee4ebd4fa9935 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Premiums and discounts shall be amortized using the interest method. The amortization of premiums on purchased callable debt securities that have explicit, noncontingent call features that are callable at fixed prices on preset dates shall be consistent with the guidance in paragraph [310-20-35-33](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-33). #### Proceeds from Litigation Awards ##### [320-946-35-21](https://asc.understandingaccounting.org/asc/320/946/#320-946-35-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:47.298Z to 2026-09-09T23:36:47.298Z Record version: sha256:915ea0143068399d63fd2ef63a821c584f670a91e9ce2d60e3fcf90bfea95a09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Proceeds from litigation relating to an investment security shall be accounted for as follows: 1. a If the investment company holds the securities, the proceeds are accounted for as a reduction of cost. 2. b If the investment company no longer holds the securities, the proceeds are accounted for as realized gains on security transactions. Source downloaded (UTC): 2026-09-09T23:36:50.981Z to 2026-09-09T23:36:50.981Z Record version: sha256:6f2651897614ad0c6237c33daf3eccb9f1762e32e056497dc881eb180ec9ef87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/320/946/#40-derecognition) SEC content: no #### Determining Costs and Realized Gains and Losses ##### [320-946-40-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:50.981Z to 2026-09-09T23:36:50.981Z Record version: sha256:edb66c705ac1f61b5b13a4282d93c9f825cdf663e073ad92360266d29f37fea0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cost of investment securities held in the portfolio of an investment company and the net realized gains or losses thereon shall be determined on the specific identification or average-cost methods. An investment company shall use only one method for all of its investments. Source downloaded (UTC): 2026-09-09T23:36:53.519Z to 2026-09-09T23:36:53.519Z Record version: sha256:43596779f2ce70fb942725ef0ffc02517b3c16bf2b0bc85e895f23dd35b0bfb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/946/#45-other-presentation-matters) SEC content: no ##### [320-946-45-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:53.519Z to 2026-09-09T23:36:53.519Z Record version: sha256:4fb4b62dbc32411404d7bf96613f10dde2abb190b7daed6435a01cb355580f44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For presentation of investments in debt and equity securities as part of reporting financial position, see Section 946-210-45. Source downloaded (UTC): 2026-09-09T23:36:55.321Z to 2026-09-09T23:36:55.321Z Record version: sha256:5b01626fa7be8a292f7dd16b83b2acd61c0c9ccf39821d0a89f5dac9d60e5a9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/946/#50-disclosure) SEC content: no ##### [320-946-50-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:55.321Z to 2026-09-09T23:36:55.321Z Record version: sha256:631c494a71fc596bb63746021c6e7866a784de0620faf9e5fa945d393a983856 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For disclosures about investments in debt and equity securities as part of a schedule of investments, see Section 946-210-50. Source downloaded (UTC): 2026-09-09T23:36:57.062Z to 2026-09-09T23:36:57.062Z Record version: sha256:1996bfcb29d927192f0924ba5b8b391bc7d535615d5bf9201861f722188414c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-00-status) SEC content: yes ##### [320-946-S00-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:57.062Z to 2026-09-09T23:36:57.062Z Record version: sha256:15be8db895d69868d1c60e12cf19be30ea81232d0ec56374012e78ab45ffc383 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
946-320-S99-1 through S99-9
AmendedAccounting Standards Update No. 2019-0707/26/2019
946-320-S99-5A through S99-5D
AddedAccounting Standards Update No. 2019-0707/26/2019
946-320-S99-15SupersededAccounting Standards Update No. 2010-2208/19/2010
Source downloaded (UTC): 2026-09-09T23:36:59.539Z to 2026-09-09T23:36:59.539Z Record version: sha256:9c896be6a1f7e0ee3df141d8d4701f420eaa920eeccf63e95c38e18365b36bcb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-25-recognition) SEC content: yes #### Investment Securities ##### [320-946-S25-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:59.539Z to 2026-09-09T23:36:59.539Z Record version: sha256:c95febf9bdbb6c27ccb3d15183a87e9b660bb91e8f4dca5973f5d037576298ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-11](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-11), CFRR 404.03.a, for the recognition requirements for certain investment securities. ##### [320-946-S25-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-S25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:59.539Z to 2026-09-09T23:36:59.539Z Record version: sha256:f32c5b952811b85cbbeaa2410bed77d49081d3983b22f1b496c1e735f6e08bd0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-17](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-17), CFRR 404.04.a, for the recognition requirements for restricted securities. #### Dividend and Interest Income ##### [320-946-S25-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-S25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:59.539Z to 2026-09-09T23:36:59.539Z Record version: sha256:318638139eed704a8f71b34c78d7adc064fdbe5ca5934dd6eaf107358a68ddba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#946-10-S99-3), Regulation S-X Rule 6-03(g), for the recognition requirements for dividend income. #### Accounting for Interest Collected on Defaulted Bonds ##### [320-946-S25-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-S25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:36:59.539Z to 2026-09-09T23:36:59.539Z Record version: sha256:73ab6119ea2866e69df577c2b0d1eb4b0b16e1e215de040296ae07f00ce36061 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-9A](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-9A), CFRR 404.02, for SEC views on accounting for purchased defaulted bonds with defaulted interest coupons attached. Source downloaded (UTC): 2026-09-09T23:37:01.622Z to 2026-09-09T23:37:01.622Z Record version: sha256:7b960f1c7a900ae69869bc3d53f5b07e278abb45cc772aad012dc03c48b5fe43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S30: SEC 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-30-initial-measurement) SEC content: yes #### Qualified Assets of Face-Amount Certificate Companies ##### [320-946-S30-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:01.622Z to 2026-09-09T23:37:01.622Z Record version: sha256:f6d3597c9cd5372d0a26cf18691159f68d7c979f7fa1f56866b523ccbacc46fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#946-10-S99-3), Regulation S-X Rule 6-03(d), for the measurement requirements for qualified assets of face-amount certificate companies. Source downloaded (UTC): 2026-09-09T23:37:04.329Z to 2026-09-09T23:37:04.329Z Record version: sha256:c4b3755f6c3d1e4b170edc2db15d2c87a8669eed5eafdd87c6c2d2c1676dd6da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-35-subsequent-measurement) SEC content: yes #### Investment Securities ##### [320-946-S35-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:04.329Z to 2026-09-09T23:37:04.329Z Record version: sha256:1915eec92e3ef3d6907b82086fe5071d20f6f61638f5bff59b1054b504e24029 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-12](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-12), CFRR 404.03.b, for the valuation requirements for certain investment securities. ##### [320-946-S35-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-S35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:04.329Z to 2026-09-09T23:37:04.329Z Record version: sha256:ee51f6fd4107a2d075597998df4ee8a773b8a73967aa971ae138c984c70aa5b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-17](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-17), CFRR 404.04.a, for the valuation requirements for restricted securities. #### Money Market Funds ##### [320-946-S35-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-S35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:04.329Z to 2026-09-09T23:37:04.329Z Record version: sha256:c88e289077aefb1dfca548df4bf670a7a3a4f14484b75d3383092261cd3f28be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-20](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-20), CFRR 404.05, Money Market Funds, for subsequent valuation requirements for money market funds in valuing certain portfolio securities. Source downloaded (UTC): 2026-09-09T23:37:08.035Z to 2026-09-09T23:37:08.035Z Record version: sha256:b9fdad266f3ba0dbed7c7fc6e547a3eace3968eb94a775192900cbcea11be6e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-45-other-presentation-matters) SEC content: yes ##### [320-946-S45-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:08.035Z to 2026-09-09T23:37:08.035Z Record version: sha256:dbaef233cb1bf4c897b018af1b259566aac501d0d1d9d05478df0c42ea8b3a33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#946-10-S99-3), Regulation S-X Rule 6-03(d), for requirements for the presentation of investments at value. #### Accounting for Interest Collected on Defaulted Bonds ##### [320-946-S45-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:08.035Z to 2026-09-09T23:37:08.035Z Record version: sha256:f043f8fab942dbd931a100a1fc5c7c12e2fe41e167349d494b3c6aecef9a525c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-9A](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-9A), CFRR 404.02, for SEC views on accounting for purchased defaulted bonds with defaulted interest coupons attached. Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:d0f21eb98bcfb95178734922a120c46a5a08f629de9d839ac4bfd0a3f69260a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-50-disclosure) SEC content: yes #### Recognition ##### [320-946-S50-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:20e161a7810ca1d744f02283c6747c0377ae8b4da898611f5f0d53d69a477364 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-11](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-11), CFRR 404.03.a, for the required disclosure in a situation where the propriety or validity of certain securities are not satisfactorily resolved. #### Valuation Policy ##### [320-946-S50-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:23e25e2c25511bbc7a39e9b691f9b8b9acfd15767d94d505c66379e47c10c865 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-12](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-12), CFRR 404.03.b, for disclosure requirements related to valuation policies. ##### [320-946-S50-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:5bbb51f2975da2c63fafbb837ecf71e936d67070cc554e276ebe4d2b5b56c6bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#946-10-S99-3), Regulation S-X Rule 6-03(d), for the requirement to disclose the valuation method used for investments. #### Restricted Securities ##### [320-946-S50-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:ecaf46d7719a702633614a0d0f82e79a95f856b0d87bef566165bf91d05069bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#946-10-S99-3), Regulation S-X Rule 6-03(f), and [946-320-S99-13](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-13), CFRR 404.04.c, for required disclosures pertaining to the valuation of restricted securities. #### Qualified Assets ##### [320-946-S50-5](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:3160478f3490000c53b083a6a1302f9894e097c6616bdb1ad755d85ac021fe62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#946-10-S99-3), Regulation S-X Rule 6-03(e), for required disclosures pertaining to qualified assets. #### Supplemental Schedules ##### [320-946-S50-6](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:7096fb5656d6e9ed5003f33a48fa94abf4d5ebf46ecfc354ad51e20785185e9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-1), Regulation S-X Rule 12-12, for the requirements of Schedule I—Investments in Securities of Unaffiliated Issuers for management investment companies. ##### [320-946-S50-7](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:6320dd6fbe096316075d19a7e095f83f65023e0759f6b0ebd98e4a304a3f473f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-2), Regulation S-X Rule 12-12A, for the requirements of Schedule IV—Investments—Securities Sold Short for management investment companies. ##### [320-946-S50-8](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:3266c72a1edb046603db82ed7984e305cc597606d931d0e939f9c05ebff41621 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-3), Regulation S-X Rule 12-12B, for the requirements of Schedule V—Open Option Contracts Written for management investment companies. ##### [320-946-S50-9](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:56e78f18024dee33218d93a6195a38ae037b98387bb41fdb52010cad97a5526d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-4), Regulation S-X Rule 12-12C, for the requirements of Schedule VI—Summary Schedule of Investments in Securities of Unaffiliated Issuers for management investment companies. ##### [320-946-S50-10](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:80cfb43384389f2619b1739684a31ad29b292e9169a4d9ccaa3a32bb5bf482e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-5](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-5), Regulation S-X Rule 12-13, for the requirements of Schedule II—Investments—Other than Securities for management investment companies. ##### [320-946-S50-11](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:3f7a9d104a084e3fd59e34af7e8f37ef6bba47ac337128a689c586f03d448feb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-6](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-6), Regulation S-X Rule 12-14, for the requirements of Schedule III—Investments in Advances to Affiliates for management investment companies. ##### [320-946-S50-12](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:150b7f40fd320d72f894d32bf77e20ad34066641266cd362612464564851d3a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-7](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-7), Regulation S-X Rule 12-15, for the requirements of Summary of Investments—Other than Investments in Related Parties. ##### [320-946-S50-13](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:60d7b4fe36bbe949f4308011ccd285362714f172c4b820a89dbe42f7998de9f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-8](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-8), Regulation S-X Rule 12-21, for the requirements of Schedule I—Investments in Securities of Unaffiliated Issuers for face-amount certificate investment companies. ##### [320-946-S50-14](https://asc.understandingaccounting.org/asc/320/946/#320-946-S50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:09.821Z to 2026-09-09T23:37:09.821Z Record version: sha256:6f3ff051ba448c46e25594f0f63011eb7c7eb69336d44e40fec8237ca96c7c93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-9](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-9), Regulation S-X Rule 12-22, for the requirements of Schedule II—Investments in and Advances to Affiliates and Income Thereon for face-amount certificate investment companies. Source downloaded (UTC): 2026-09-09T23:37:12.996Z to 2026-09-09T23:37:12.996Z Record version: sha256:f0f0df7bfd2716926e0b46a7e5bdce42470f8847ae479d76b6832c042e1f3d61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-55-implementation-guidance-and-illustrations) SEC content: yes #### Valuation of Securities ##### [320-946-S55-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:12.996Z to 2026-09-09T23:37:12.996Z Record version: sha256:2f42e7ef4c595dcce1711c077a330fb08b7684b4b798a6564b72a87da5d6cbf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-320-S99-12](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-12), CFRR 404.03.b., for Commission guidance on determining "value." Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:4e5a369bf9c1a5829c08227a142c018f778972f34698b037dba9e8c70ab2e8f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-946-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/320/946/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [320-946-S99-1](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:b770028daa2d1bcd576f33bcb2ce6f6859b4cd62f08b2dfa84a012317da53e1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-12, Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-12). - ![](https://asc.understandingaccounting.org/asc-img/GUID-9A58B698-62EC-4B0C-96D8-8CF69DD1E21D-low.gif) Reg. § 210.12-12 Investments in Securities of Unaffiliated Issuers \[For management investment companies only\] Column A Column B Column C "Name of issuer and title of issue1,2,3,4" "Balance held at close of period. Number of shares-principal amount of bonds and notes7" "Value of each item at close of period5,6,8,9,10" 1 "Each issue shall be listed separately: Provided, however, that an amount not exceeding five percent of the total of Column C may be listed in one amount as “Miscellaneous securities,” provided the securities so listed are not restricted, have been held for not more than one year prior to the date of the related balance sheet, and have not previously been reported by name to the shareholders of the person for which the schedule is filed or to any exchange, or set forth in any registration statement, application, or annual report or otherwise made available to the public. If any securities are listed as Miscellaneous securities,” briefly explain in a footnote what the term represents." 2 "Categorize the schedule by (i) the type of investment (such as common stocks, preferred stocks, convertible securities, fixed income securities, government securities, options purchased, warrants, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, other investment companies, and so forth); and (ii) the related industry, country, or geographic region of the investment. Short-term debt instruments (i.e., debt instruments whose maturities or expiration dates at the time of acquisition are one year or less) of the same issuer may be aggregated, in which case the range of interest rates and maturity dates shall be indicated. For issuers of periodic payment plan certificates and unit investment trusts, list separately (i) trust shares in trusts created or serviced by the depositor or sponsor of this trust; (ii) trust shares in other trusts; and (iii) securities of other investment companies. Restricted securities shall not be combined with unrestricted securities of the same issuer. Repurchase agreements shall be stated separately showing for each the name of the party or parties to the agreement, the date of the agreement, the total amount to be received upon repurchase, the repurchase date and description of securities subject to the repurchase agreements." 3 "For options purchased, all information required by §210.12-13 for options contracts written should be shown. Options on underlying investments where the underlying investment would otherwise be presented in accordance with §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D should include the description of the underlying investment as would be required by §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D as part of the description of the option." 4 "Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind, disclose the rate paid in kind." 5 "The subtotals for each category of investments, subdivided both by type of investment and industry, country or geographic region, shall be shown together with their percentage value compared to net assets. (§§210.6-04.19 or 210.6-05.4.) " 6 Column C shall be totaled. The total of Column C shall agree with the correlative amounts shown on the related balance sheet. 7 "Indicate by an appropriate symbol each issue of securities which is non-income producing. Evidences of indebtedness and preferred shares may be deemed to be income producing if, on the respective last interest payment date or date for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend rate, no interest was paid or no cash or in kind dividends declared, the issue shall not be deemed to be income producing. Common shares shall not be deemed to be income producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares." 8 "Indicate by an appropriate symbol each issue of restricted securities. State the following in a footnote: (a) as to each such issue (1) acquisition date, (2) carrying value per unit of investment at date of related balance sheet, e.g., a percentage of current market value of unrestricted securities of the same issuer, etc., and (3) the cost of such securities; (b) as to each issue acquired during the year preceding the date of the related balance sheet, the carrying value per unit of investment of unrestricted securities of the same issuer at: (1) The day the purchase price was agreed to and (2) the day on which an enforceable right to acquire such securities was obtained; and (c) the aggregate value of all restricted securities and the percentage which the aggregate value bears to net assets." 9 Indicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. 10 "Indicate by an appropriate symbol each issue of securities held in connection with open put or call option contracts, loans for short sales, or where any portion of the issue is on loan." \[81 FR 82014, Nov. 18, 2016\] ##### [320-946-S99-2](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:0c0256438fbff4ca6d7756b7ece23743e1f9ae5b9ecac6646159ebe6a15f6b5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-12A, Investments—Securities Sold Short (17 CFR 210.12-12A). - ![](https://asc.understandingaccounting.org/asc-img/GUID-EFDAE82B-43DF-4D11-A34D-B5ABFDF56A39-low.gif) Reg. § 210.12.12A Investments-Securities Sold Short \[For management investment companies only\] Column A Column B Column C "Name of issuer and title of issue1,2,3" " Balance of short position at close of period (Number of shares)" "Value of each open short position4,5,6" 1 Each issue shall be listed separately. 2 Categorize the schedule as required by instruction 2 of §210.12-12. 3 "Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind income, disclose the rate paid in kind." 4 "The subtotals for each category of investments, subdivided both by type of investment and industry, country, or geographic region, shall be shown together with their percentage value compared to net assets." 5 Column C shall be totaled. The total of Column C shall agree with the correlative amounts shown on the related balance sheet. 6 Indicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. \[81 FR 82015, Nov. 18, 2016\] ##### [320-946-S99-3](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:29563e35da6d1a0eb464af7479bdf35a775bdaf52946bba24ca7ceaca05466a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-12B, Summary Schedule of Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-12B). - ![](https://asc.understandingaccounting.org/asc-img/GUID-D215BA13-38AE-4EFE-A70F-2530CAA1010F-low.gif) Reg. § 210.12-12B Summary Schedule of Investments in Securities of Unaffiliated Issuers Column A Column B Column C Column D "Name of Issuer and title of issue1,2,3,4,5,6,7,8" "Balance held at close of period. Number of shares—principal amount of bonds and notes10 " "Value of each item at close of period 2,9,11,12,13" Percentage value compared to net assets 1 "Categorize the schedule by (a) the type of investment (such as common stocks, preferred stocks, convertible securities, fixed income securities, government securities, options purchased, warrants, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, other investment companies, and so forth); and (b) the related industry, country or geographic region of the investment." 2 "The subtotals for each category of investments, subdivided both by type of investment and industry, country, or geographic region, shall be shown together with their percentage value compared to net assets." 3 "Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind income, disclose the rate paid in kind." 4 "Except as provided in note 6, list separately the 50 largest issues and any other issue the value of which exceeded one percent of net asset value of the registrant as of the close of the period. For purposes of the list (including, in the case of short-term debt instruments, the first sentence of note 4), aggregate and treat as a single issue, respectively, (a) short-term debt instruments (i.e., debt instruments whose maturities or expiration dates at the time of acquisition are one year or less) of the same issuer (indicating the range of interest rates and maturity dates); and (b) fully collateralized repurchase agreements (indicate in a footnote the range of dates of the repurchase agreements, the total purchase price of the securities, the total amount to be received upon repurchase, the range of repurchase dates, and description of securities subject to the repurchase agreements). Restricted and unrestricted securities of the same issue should be aggregated for purposes of determining whether the issue is among the 50 largest issues, but should not be combined in the schedule. For purposes of determining whether the value of an issue exceeds one percent of net asset value, aggregate and treat as a single issue all securities of any one issuer, except that all fully collateralized repurchase agreements shall be aggregated and treated as a single issue. The U.S. Treasury and each agency, instrumentality, or corporation, including each government-sponsored entity, that issues U.S. government securities is a separate issuer." 5 "For options purchased, all information required by §210.12-13 for options contracts written should be shown. Options on underlying investments where the underlying investment would otherwise be presented in accordance with §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D should include the description of the underlying investment as would be required by §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D as part of the description of the option." 6 "If multiple securities of an issuer aggregate to greater than one percent of net asset value, list each issue of the issuer separately (including separate listing of restricted and unrestricted securities of the same issue) except that the following may be aggregated and listed as a single issue: (a) Fixed-income securities of the same issuer which are not among the 50 largest issues and whose value does not exceed one percent of net asset value of the registrant as of the close of the period (indicating the range of interest rates and maturity dates); and (b) U.S. government securities of a single agency, instrumentality, or corporation, which are not among the 50 largest issues and whose value does not exceed one percent of net asset value of the registrant as of the close of the period (indicating the range of interest rates and maturity dates). For each category identified pursuant to note 1, group all issues that are neither separately listed nor included in a group of securities that is listed in the aggregate as a single issue in a sub-category labeled “Other securities,” and provide the information for Columns C and D." 7 "Any securities that would be required to be listed separately or included in a group of securities that is listed in the aggregate as a single issue may be listed in one amount as “Miscellaneous securities,” provided the securities so listed are eligible to be, and are, categorized as “Miscellaneous securities” in the registrant's Schedule of Investments in Securities of Unaffiliated Issuers required under §210.12-12. However, if any security that is included in “Miscellaneous securities” would otherwise be required to be included in a group of securities that is listed in the aggregate as a single issue, the remaining securities of that group must nonetheless be listed as required by notes 4 and 5 even if the remaining securities alone would not otherwise be required to be listed in this manner (e.g., because the combined value of the security listed in “Miscellaneous securities” and the remaining securities of the same issuer exceeds one percent of net asset value, but the value of the remaining securities alone does not exceed one percent of net asset value)." 8 "If any securities are listed as “Miscellaneous securities” pursuant to note 6 or “Other securities” pursuant to note 5, briefly explain in a footnote what those terms represent." 9 Total Column C. The total of Column C should equal the total shown on the related balance sheet for investments in securities of unaffiliated issuers. 10 "Indicate by an appropriate symbol each issue of securities which is non-income producing. Evidences of indebtedness and preferred shares may be deemed to be income producing if, on the respective last interest payment date or date for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend date, no interest was paid or no cash or in kind dividends declared, the issue shall not be deemed to be income producing. Common shares shall not be deemed to be income producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares." 11 "Indicate by an appropriate symbol each issue of restricted securities. State the following in a footnote: (a) As to each such issue: (1) Acquisition date, (2) carrying value per unit of investment at date of related balance sheet, e.g., a percentage of current market value of unrestricted securities of the same issuer, etc., and (3) the cost of such securities; (b) as to each issue acquired during the year preceding the date of the related balance sheet, the carrying value per unit of investment of unrestricted securities of the same issuer at: (1) The day the purchase price was agreed to; and (2) the day on which an enforceable right to acquire such securities was obtained; and (c) the aggregate value of all restricted securities and the percentage which the aggregate value bears to net assets." 12 Indicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. 13 "Indicate by an appropriate symbol each issue of securities held in connection with open put or call option contracts, loans for short sales, or where any portion of the issue is on loan." \[81 FR 82015, Nov. 18, 2016\] ##### [320-946-S99-4](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:cb5907ff0e165a3feb0601814e3f718fe53228c5d591d5e48974394ff6d67b68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-12C (17 CFR 210.12-12C). - \[Reserved\] ##### [320-946-S99-5](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:0ef7b5c63a20ea514509f3184368d1ba9426acb46d7b3539da7102c4ec3228c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-13, Open Option Contracts Written (17 CFR 210.12-13). - ![](https://asc.understandingaccounting.org/asc-img/GUID-0CC8ED36-1C21-4F4B-A41D-1C3714E8286A-low.gif) Reg. § 210.12.13 Open Option Contracts Written \[For management investment companies only\] Column A Column B Column C Column D Column E Column F Column G "Description1,2,3" Counterparty4 Number of contracts5 Notional amount Exercise price Expiration date "Value6,7,8" 1 Information as to put options shall be shown separately from information as to call options. 2 "Options where descriptions, counterparties, exercise prices or expiration dates differ shall be listed separately." 3 "Options on underlying investments where the underlying investment would otherwise be presented in accordance with §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D should include the description of the underlying investment as would be required by §§210.12-12, 12-13A, 12-13B, 12-13C, or 12-13D as part of the description of the option. " "If the underlying investment is an index or basket of investments, and the components are publicly available on a Web site as of the balance sheet date, identify the index or basket. If the underlying investment is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the option contract does not exceed one percent of the net asset value of the registrant as of the close of the period, identify the index or basket. If the underlying investment is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the option contract exceeds one percent of the net asset value of the registrant as of the close of the period, provide a description of the index or custom basket and list separately: (i) The 50 largest components in the index or custom basket and (ii) any other components where the notional value for that components exceeds 1% of the notional value of the index or custom basket. For each investment separately listed, include the description of the underlying investment as would be required by §§210.12-12, 12-13, 12-13A, 12-13B, or 12-13D as part of the description, the quantity held (e.g. the number of shares for common stocks, principal amount for fixed income securities), the value at the close of the period, and the percentage value when compared to the custom basket's net assets." 4 Not required for exchange traded or centrally cleared options. 5 "If the number of shares subject to option is substituted for number of contracts, the column name shall reflect that change." 6 Indicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment. 7 Indicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 8 Column G shall be totaled and shall agree with the correlative amount shown on the related balance sheet. \[81 FR 82016, Nov. 18, 2016\] ##### [320-946-S99-5A](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:ee91943c9961d593c96feb11c9f872f8e4361e093e228acdf2ce8ae661f994f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-13A, Open Futures Contracts (17 CFR 210.12-13A). - ![](https://asc.understandingaccounting.org/asc-img/GUID-C0871779-2F79-4812-A177-514FE6F10616-low.gif) Reg. § 210.12-13A Open Futures Contracts \[For management investment companies only\] Column A Column B Column C Column D Column E Column F "Description1,2,3,4,5" Number of contracts Expiration date Notional amount6 Value Unrealized appreciation/ depreciation 1 "Information as to long purchases of futures contracts shall be shown separately from information as to futures contracts sold short." 2 Futures contracts where descriptions or expiration dates differ shall be listed separately. 3 Description should include the name of the reference asset or index. 4 "Indicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment." 5 Indicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 6 Notional amount shall be the current notional amount at close of period. \[81 FR 82017, Nov. 18, 2016\] ##### [320-946-S99-5B](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-5B) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:5a2794ee4d975bcba8ad1c7b5b103cbdd49fab34853697747ecc4ed5d403c120 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-13B, Open Forward Foreign Currency Contracts (17 CFR 210.12-13B). - ![](https://asc.understandingaccounting.org/asc-img/GUID-3E70A16F-D28C-42F6-B5CC-BE01036781F1-low.gif) Reg. § 210.12-13B Open Forward Foreign Currency Contracts \[For management investment companies only\] Column A Column B Column C Column D Column E Amount and description of currency to be purchased1 Amount and description of currency to be sold1 Counterparty Settlement date "Unrealized appreciation/ depreciation2,3,4" 1 "Forward foreign currency contracts where description of currency purchased, description of currency sold, counterparty, or settlement dates differ shall be listed separately." 2 "Indicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment." 3 "Indicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs." 4 "Column E shall be totaled and shall agree with the total of correlative amount(s) shown on the related balance sheet." \[81 FR 82017, Nov. 18, 2016\] ##### [320-946-S99-5C](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-5C) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:dedc34629300f48a9aa10bfec04a018786d9899749076779ce9d4fcfd3e8ff6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-13C, Open Swap Contracts (17 CFR 210.12-13C). - ![](https://asc.understandingaccounting.org/asc-img/GUID-1201EC21-4263-4EDF-BFF8-DA299C9F3A4F-low.gif) Reg. § 210.12-13C Open Swap Contracts \[For management investment companies only\] Column A Column B Column C Column D Column E Column F Column G Column H "Description and terms of payments to be received from another party1,2,3" "Description and terms of payments to be paid to another party1,2,3" Counterparty4 Maturity date Notional amount Value "Upfront payments/ receipts" "Unrealized appreciation/ depreciation5,6,7" 1 "List each major category of swaps by descriptive title (e.g., credit default swaps, interest rate swaps, total return swaps). Credit default swaps where protection is sold shall be listed separately from credit default swaps where protection is purchased." 2 "Swaps where description, counterparty, or maturity dates differ shall be listed separately within each major category." 3 "Description should include information sufficient for a user of financial information to understand the terms of payments to be received and paid. (e.g. For a credit default swap, including, among other things, description of reference obligation(s) or index, financing rate to be paid or received, and payment frequency. For an interest rate swap, this may include, among other things, whether floating rate is paid or received, fixed interest rate, floating interest rate, and payment frequency. For a total return swap, this may include, among other things, description of reference asset(s) or index, financing rate, and payment frequency.) If the reference instrument is an index or basket of investments, and the components are publicly available on a Web site as of the balance sheet date, identify the index or basket. If the reference instrument is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the swap contract does not exceed one percent of the net asset value of the registrant as of the close of the period, identify the index or basket. If the reference instrument is an index or basket of investments, the components are not publicly available on a Web site as of the balance sheet date, and the notional amount of the swap contract exceeds one percent of the net asset value of the registrant as of the close of the period provide a description of the index or custom basket and list separately: (i) The 50 largest components in the index or custom basket and (ii) any other components where the notional value for that components exceeds 1% of the notional value of the index or custom basket. For each investment separately listed, include the description of the underlying investment as would be required by §§210.12-12, 210.12-13, 210.12-13A, 210.12-13B, or 210.12-13D as part of the description, the quantity held (e.g., the number of shares for common stocks, principal amount for fixed income securities), the value at the close of the period, and the percentage value when compared to the custom basket's net assets." 4 Not required for exchange-traded or centrally cleared swaps. 5 Indicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment. 6 Indicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 7 Columns G and H shall be totaled and shall agree with the total of correlative amount(s) shown on the related balance sheet. \[81 FR 82017, Nov. 18, 2016\] ##### [320-946-S99-5D](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-5D) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:3777abb71b7e332b8472b823f8a084b7ebdd196bc41a39537bd85add9cc5efd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-13D, Investments Other Than Those Presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C (17 CFR 210.12-13D). - ![](https://asc.understandingaccounting.org/asc-img/GUID-631EF1BE-FA45-47C3-8794-3D77A026183C-low.gif) "Reg. § 210.12-13D Investments Other Than Those Presented in §§210.12-12, 12-12A, 12-12B, 12-13, 12-13A, 12-13B, and 12-13C" \[For management investment companies only\] Column A Column B Column C "Description1,2,3" "Balance held at close of period—quantity4,5" "Value of each item at close of period6,7,8,9" 1 Each investment where any portion of the description differs shall be listed separately. 2 "Categorize the schedule by (i) the type of investment (such as real estate, commodities, and so forth); and, as applicable, (ii) the related industry, country, or geographic region of the investment." 3 "Description should include information sufficient for a user of financial information to understand the nature and terms of the investment, which may include, among other things, reference security, asset or index, currency, geographic location, payment terms, payment rates, call or put feature, exercise price, expiration date, and counterparty for non-exchange-traded investments." 4 "If practicable, indicate the quantity or measure in appropriate units." 5 Indicate by an appropriate symbol each investment which is non-income producing. 6 Indicate by an appropriate symbol each investment which cannot be sold because of restrictions or conditions applicable to the investment. 7 Indicate by an appropriate symbol each investment whose value was determined using significant unobservable inputs. 8 "Indicate by an appropriate symbol investment subject to option. State in a footnote: (a) The quantity subject to option, (b) nature of option contract, (c) option price, and (d) dates within which options may be exercised." 9 Column C shall be totaled and shall agree with the correlative amount shown on the related balance sheet. \[81 FR 82018, Nov. 18, 2016\] ##### [320-946-S99-6](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:5dc6e63cf6d8b4db3bdac3bf496791bd909b66ce3e5e8af04ccfda92af2dc370 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-14, Investments in and Advances to Affiliates (17 CFR 210.12-14). - ![](https://asc.understandingaccounting.org/asc-img/GUID-83FD59B5-8AFA-456D-8470-4962A9308B17-low.gif) Reg. § 210.12-14 Investments in and Advances to Affiliates \[For management investment companies only\] Column A Column B Column C Column D Column E Column F "Name of issuer and title of issue or nature of indebtedness1,2,3" "Number of shares—principal amount of bonds, notes and other indebtedness held at close of period" "Net realized gain or loss for the period4,6 " "Net increase or decrease in unrealized appreciation or depreciation for the period4,6" "Amount of dividends or interest4,6" "Value of each item at close of period5,7,8,9" "(Col. 1) Credit to income" "(Col. 2) Other" 1 "(a) List each issue separately and group (1) investments in majority-owned subsidiaries; (2) other controlled companies; and (3) other affiliates. (b) If during the period there has been any increase or decrease in the amount of investment in and advance to any affiliate, state in a footnote (or if there have been changes to numerous affiliates, in a supplementary schedule) (1) name of each issuer and title of issue or nature of indebtedness; (2) balance at beginning of period; (3) gross additions; (4) gross reductions; (5) balance at close of period as shown in Column F. Include in the footnote or schedule comparable information as to affiliates in which there was an investment at any time during the period even though there was no investment at the close of the period of report. " 2 Categorize the schedule as required by instruction 2 of §210.12-12. 3 "Indicate the interest rate or preferential dividend rate and maturity date, as applicable, for preferred stocks, convertible securities, fixed income securities, government securities, loan participations and assignments, commercial paper, bankers' acceptances, certificates of deposit, short-term securities, repurchase agreements, or other instruments with a stated rate of income. For variable rate securities, indicate a description of the reference rate and spread and: (1) The end of period interest rate or (2) disclose the end of period reference rate for each reference rate described in the Schedule in a note to the Schedule. For securities with payment in kind income, disclose the rate paid in kind. " 4 "Columns C, D, E, and F shall be totaled. The totals of Column F shall agree with the correlative amount shown on the related balance sheet." 5 "(a) Indicate by an appropriate symbol each issue of restricted securities. The information required by instruction 8 of §210.12-12 shall be given in a footnote. (b) Indicate by an appropriate symbol each issue of securities subject to option. The information required by §210.12-13 shall be given in a footnote. " 6 "(a) Include in Column E (1) as to each issue held at the close of the period, the dividends or interest included in caption 1 of the statement of operations. In addition, show as the final item in Column E (1) the aggregate of dividends and interest included in the statement of operations in respect of investments in affiliates not held at the close of the period. The total of this column shall agree with the correlative amount shown on the related statement of operations. (b) Include in Column E (2) all other dividends and interest. Explain in an appropriate footnote the treatment accorded each item. (c) Indicate by an appropriate symbol all non-cash dividends and interest and explain the circumstances in a footnote. (d) Indicate by an appropriate symbol each issue of securities which is non-income producing. Evidences of indebtedness and preferred shares may be deemed to be income producing if, on the respective last interest payment date or date for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend date, no interest was paid or no cash or in kind dividends declared, the issue shall not be deemed to be income producing. Common shares shall not be deemed to be income producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares. (e) Include in Column C (1) as to each issue held at the close of the period, the realized gain or loss included in §210.6-07.7 of the statement of operations. In addition, show as the final item in Column C (1) the aggregate of realized gain or loss included in the statement of operations in respect of investments in affiliates not held at the close of the period. The total of this column shall agree with the correlative amount shown on the related statement of operations. (f) Include in Column D (1) as to each issue held at the close of the period, the net increase or decrease in unrealized appreciation or depreciation included in §210.6-07.7 of the statement of operations. In addition, show as the final item in Column D (1) the aggregate of increase or decrease in unrealized appreciation or depreciation included in the statement of operations in respect of investments in affiliates not held at the close of the period. The total of this column shall agree with the correlative amount shown on the related statement of operations." 7 "The subtotals for each category of investments, subdivided both by type of investment and industry, country, or geographic region, shall be shown together with their percentage value compared to net assets." 8 Indicate by an appropriate symbol each issue of securities whose value was determined using significant unobservable inputs. 9 "Indicate by an appropriate symbol each issue of securities held in connection with open put or call option contracts, loans for short sales, or where any portion of the issue is on loan." \[81 FR 82018, Nov. 18, 2016\] ##### [320-946-S99-7](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:2ad6211e3fbc55952035b5c3fe148356b899b543b875dcad1a627a898f083e0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-15, Summary of Investments—Other than Investments in Related Parties (17 CFR 210.12-15). - ![](https://asc.understandingaccounting.org/asc-img/GUID-71A3C687-E691-4192-B0F2-979782E100C3-low.gif) Reg. § 210.12-15 Summary of Investments-Other than Investments in Related Parties \[For insurance companies\] Column A Column B Column C Column D Type of investment Cost1 Value Amount at which shown in the balance sheet2 Fixed maturities: Bonds: United States Government and government government agencies and authorities "States, municipalities and political subdivisions" Foreign governments Public utilities Convertibles and bonds with warrants attached3 All other corporate bonds Certificates of Deposit Redeemable preferred stock Total fixed maturities Equity securities: Common stocks Public utilities "Banks, trust and insurance companies" "Industrial, miscellaneous and all other" Nonredeemable preferred stocks Total equity securities Mortgage loans on real estate Real estate 4 Policy loans Other long-term investments Short-term investments Total investments 1 "Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts." 2 "If the amount at which shown in the balance sheet is different from the amount shown in either column B or C, state the reason for such difference. The total of this column should agree with the balance sheet." 3 "All convertibles and bonds with warrants shall be included in this caption, regardless of issuer." 4 State separately any real estate acquired in satisfaction of debt. \[46 FR 54337, Nov. 2, 1981\] ##### [320-946-S99-8](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:f602d515e026ca406160387360b92a2f10f72e70c4400f952cf60cedd055f944 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-21, Investments in Securities of Unaffiliated Issuers (17 CFR 210.12-21). - ![](https://asc.understandingaccounting.org/asc-img/GUID-BFD0D08A-5244-466C-B377-B0A74C563A33-low.gif) Reg. § 210.12-21 Investments in Securities of Unaffiliated Issuers Column A Column B Column C Column D "Name of issuer and title of issue1" "Balance held at close of period. Number of shares—principal amount of bonds and notes2" "Cost of each item3,4" "Value of each item at close of period3,5" 1 "(a) The required information is to be given as to all securities held as of the close of the period of report. Each issue shall be listed separately. " "(b) Indicate by an appropriate symbol those securities which are non-income-producing securities. Evidences of indebtedness and preferred shares may be deemed to be income-producing if, on the respective last interest payment date or dates for the declaration of dividends prior to the date of the related balance sheet, there was only a partial payment of interest or a declaration of only a partial amount of the dividends payable; in such case, however, each such issue shall be indicated by an appropriate symbol referring to a note to the effect that, on the last interest or dividend date, only partial interest was paid or partial dividends declared. If, on such respective last interest or dividend date, no interest was paid or no dividends declared, the issue shall not be deemed to be income-producing. Common shares shall not be deemed to be income-producing unless, during the last year preceding the date of the related balance sheet, there was at least one dividend paid upon such common shares. List separately (1) bonds; (2) preferred shares; (3) common shares. Within each of these subdivisions classify according to type of business, insofar as practicable: e.g., investment companies, companies, railroads, utilities, banks, insurance companies, or industrials. Give totals for each group, subdivision, and class." 2 "Indicate any securities subject to option at the end of the most recent period and state in a note the amount subject to option, the option prices, and the dates within which such options may be exercised." 3 Columns C and D shall be totaled. The totals of columns C and D should agree with the correlative amounts required to be shown by the related balance sheet captions. State in a footnote to column C the aggregate cost for Federal income tax purposes. 4 "If any investments have been written down or reserved against by such companies pursuant to § 210.6-03(d), indicate each such item by means of an appropriate symbol and explain in a footnote." 5 "Where value is determined on any other basis than closing prices reported on any national securities exchange, explain such other basis in a footnote." \[47 FR 56844, Dec. 21, 1982, as amended at 83 FR 50208, Oct. 4, 2018\] ##### [320-946-S99-9](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:b1b381603a491eb17e24970d8e3d8e3b3e4c9f43650ecba2794dbd844b18f1a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-22, Investments in and Advances to Affiliates and Income Thereon (17 CFR 210.12-22). - ![](https://asc.understandingaccounting.org/asc-img/GUID-88BF9F1E-3C88-4B82-AFB1-C7E6BDF8E02A-low.gif) Reg. § 210.12-22 Investment in and Advances to Affiliates and Income Thereon Column A Column B Column C Column D Column E Column F "Name of issuer and title of issue or amount of indebtedness 1" "Balance held at close of period—Number of shares—principal amount of bonds, notes and other indebtedness 2 " "Cost of each item 3,4" "Amount at which carried at close of period 4,5 " "Amount of dividends or interest 4,6 " "Amount of equity in net profit and loss for the period 7" (1) (2) Credited to income Other 1 "(a) The required information is to be given as to all investments in affiliates as of the close of the period. See §§210.6-06(1), 210.6-06(5)(b), 210.6-06(8)(a)(2), and 210.6-06(8)(a)(3). List each issue and group separately (1) investments in majority-owned subsidiaries, segregating subsidiaries consolidated; (2) other controlled companies; and (3) other affiliates. Give totals for each group. If operations of any controlled companies are different in character from those of the registrant, group such affiliates within divisions (1) and (2) by type of activities. (b) Changes during the period. If during the period there has been any increase or decrease in the amount of investment in any affiliate, state in a footnote (or if there have been changes as to numerous affiliates, in a supplementary schedule) (1) name of each issuer and title of issue; (2) balance at beginning of period; (3) gross purchases and additions; (4) gross sales and reductions; (5) balance at close of period as shown in column C. Include in such footnote or schedule comparable information as to affiliates in which there was an investment at any time during the period even though there was no investment in such affiliate as of the close of such period." 2 "Indicate any securities subject to option at the end of the most recent period and state in a footnote the amount subject to option, the option prices, and the dates within which such options may be exercised." 3 "If the cost in column C represents other than cash expenditure, explain." 4 "(a) Columns C, D and E shall be totaled. The totals of columns C and D should agree with correlative amounts required to be shown by the related balance sheet captions. State in a footnote the aggregate cost for Federal income tax purposes. (b) If any investments have been written down or reserved against by such companies pursuant to § 210.6-03(d), indicate each such item by means of an appropriate symbol and explain in a footnote. " 5 State the basis of determining the amounts shown in Column D. 6 "Show in column E(1) as to each issue held at close of period, the dividends or interest included in caption 1 of the profit and loss or income statement. In addition, show as the final item in column E(1) the aggregate dividends and interest included in the profit and loss or income statement in respect of investments in affiliates not held at the close of the period. The total of this column should agree with the amounts shown under such caption. Include in column E(2) all other dividends and interest. Explain briefly in an appropriate footnote the treatment accorded each item. Identify by an appropriate symbol all non-cash dividends and explain the circumstances in a footnote. See §§ 210.6-06(3)(a)(2), 210.6-03(g), and 210.6-07(1." 7 "The information required by column F need by furnished only as to controlled companies. The equity in the net profit and loss of each person required to be listed separately shall be computed on an individual basis. In addition, there may be submitted the information required as computed on the basis of the statements of each such person and its subsidiaries consolidated." \[59 FR 65637, Dec. 20, 1994, as amended at 83 FR 50208, Oct. 4, 2018\] ##### [320-946-S99-9A](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-9A) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:2d1b4d0c613fb48dbf3518a2681559a033b84dc91dd61eb7e1c81fb69e083cac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.02, Accounting for Interest Collected on Defaulted Bonds. - ASR 36: - A question has been raised as to the treatment by an investment company of interest collected on defaulted bonds applicable to a period prior to the date on which such bonds and defaulted interest were acquired. In the particular case an investment company purchased, at a "flat" price of $260,000, $1,000,000 principal amount of bonds with attached defaulted interest coupons amounting to $250,000. The company subsequent to the purchase received an interest payment of $40,000 on account of defaulted interest coupons for periods to the purchase. - Where a purchase is made of defaulted bonds with defaulted interest coupons attached, it is clear that the purchase price covers not only the right to receive the principal of the bond itself, but also the right the receive any payments made on the defaulted interest coupons purchased. Under these circumstances, the price paid cannot be deemed to reflect only the cost of acquisition of the issuer's obligation to pay the principal sum, but must instead be considered to reflect as well the cost of acquisition of the issuer's existing obligation to pay the interest coupons already matured. In the usual case, moreover, there is no satisfactory basis on which to allocate the total price between the bond on the one hand and the defaulted interest coupons on the other. Under such circumstances, the bond and defaulted coupons should be treated as a unit for accounting purposes and collects on account of the defaulted interest coupons should be treated not as interest on the sum invested but rather as repayments thereof. Moreover, in view of the uncertainty of eventually receiving payments in excess of the purchase price, ordinarily no part of any payment, whether on account of principal or the defaulted interest, should be considered as profit until the full purchase price has been recovered. - In the instant case, therefore, the receipt of the $40,000 interest payments should be treated as a reduction of the cost of the investment and not as interest income, or as a profit on the investment. After payments are received on account of the principal and defaulted interest in an amount equal to the purchase price, any further collections thereon should be treated not as interest, but as profit on securities purchased. On the other hand, it seems clear that collection of interest coupons covering periods subsequent to the purchase may be treated as interest income unless the circumstances of a particular case are such as to indicate that, despite the apparent nature of the payment, recovery of the cost of the investment through sale or redemption is so uncertain as to make it necessary to treat the payment as a reduction of the investment. ##### [320-946-S99-10](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:812b836ee17addd48267c9fb336201a1516bc255ce662bb6b8f41c85db3f0c78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.03 Accounting, Valuation and Disclosure of Investment Securities. - \[The Commission has periodically published its views as to the appropriate method of accounting for and valuation of investment securities of registered investment companies. In addition, the Commission's views have also been published regarding the appropriate disclosure of certain types of investment securities.\] ##### [320-946-S99-11](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:908819ba8ae2f901cab22739668f28d4d192ae3bc304d8760ff85601961cdc1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.03.a. General. - ASR 118: - The statement of assets and liabilities of a registered investment company comprises, for the most part, not only investments in securities which are held by a custodian or are on hand, but also frequently includes securities as to which contracts to purchase have been entered into but which have not been received. Securities held by a custodian or on hand that have been contracted to be sold are excluded from the investments in such statement. In the ordinary transaction through a broker, recording the transaction on the date the broker advised the investment company that the securities have been purchased or sold (the "trade date"), rather than when delivery is made or due (the "settlement date"), is the established and acceptable practice in investment company accounting. - In the case of purchased or sales of securities other than in the usual brokerage transactions, the date on which the investment company obtains an enforceable right to demand the securities or the payment therefor the date the transaction should be recorded is sometimes difficult to determine. When a question arises as to the date an enforceable right is obtained by the investment company, an opinion of legal consent as to when the right occurred should normally be obtained by the company's management and made available to the independent accountant. Such an opinion should be in writing, and a copy should be included in the accountant's working papers. - Where the propriety or validity of an investment in a security by an investment company is questionable because of particular provisions or the Investment Company Act, or state law, or the company's investment policy or other representations as stated in its filings with the Commission, or legal obligations in respect of a contract or transaction, a written opinion of legal counsel should also be obtained by the company's management, made available to the independent accountant, and a copy included in the working papers. If the questions of propriety or validity are not satisfactorily resolved, the circumstances of the investment should be disclosed in the financial statements or notes thereto. - Securities held by the company or its custodian should be substantiated by the company's independent accountant in the course of an audit by inspection of such securities in custody pursuant to Section 17(f) of the Investment Company Act. When securities contracted to be purchased but not yet received are included in the statement of assets and liabilities, confirmation of the contract to purchase should be obtained from the bank, broker, or other person responsible for the delivery of such securities. Where satisfactory confirmation has been received, audit procedures normally need not be extended to obtain evidence of subsequent receipt of the securities by the company or its custodian unless additional substantiation is considered necessary by the independent accountant under the circumstances. Where satisfactory confirmation has not been received, subsequent receipt of such securities should be substantiated by other appropriate procedures. - In accordance with Section 30(e) of the Investment Company Act, the certificate of the company's independent accountant should include a brief statement concerning the substantiation of securities owned. Except for securities contracted to be purchased but not received, the certificate should state that the securities were either inspected by the independent accountant or, where the company's securities were maintained in custody pursuant to Section 17(f) of the Investment Company Act, were confirmed to him by the custodian. In the case of securities contracted to be purchased but not received by the company or its custodian, reference should be made to confirmation by banks, brokers, or others or to alternative procedures, as appropriate in the circumstances. ##### [320-946-S99-12](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:dda49725d2b9cd56a1f197bb62bd2d514aa62b4435e9e6684b299757b1d97e15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.03.b. Valuation of Securities. - i. Introduction - ASR 118: - Under Article 6 of Regulation S-X, the statement of assets and liabilities of open-end investment companies must reflect all assets at value, showing cost parenthetically, while closed-end companies may elect to use either this basis or to reflect all assets at cost, showing value parenthetically. - "Value" is defined in Section 2(a)(41) of the Investment Company Act. For purposed of determining the amounts at which securities and other assets are carried in the statements of assets and liabilities included in annual and other reports and in registration statements filed by investment companies, "value" is defined in pertinent part as: "(I) with respect to securities for which market quotations are readily available, the market value of such securities; and (ii) with respect to other securities and assets, fair value as determined in good faith by the board of directors...." This definition is also used in Rule 2a-4 under the Investment Company Act as the required basis for computing periodically the current net asset value of redeemable securities of investment companies for the purpose of pricing their shares. - In some circumstances value can be determined fairly in more than one way. Hence, the standards set forth below should be considered as guidelines, one or more of which may be appropriate in the circumstances of a particular case. These standards should be followed, and a company's stated valuation policies should be consistent with them. Any variation from the standards should be disclosed in the financial statements or notes thereto even though the variation is in accordance with the company's stated valuation policy. In addition, any deviation from a stated valuation policy, whether or not in conformity with the standard, should be disclosed in the financial statements or notes thereto. - ii. Securities Listed or Traded on a National Securities Exchange - ASR 118: - Ordinarily, little difficulty should be experienced in valuing securities listed or traded on one or more national securities exchanges, since quotations of completed transaction are published daily. If a security is traded on the valuation date, the last quoted sale price generally is used. In the case of securities listed on more than one national securities exchange the last quoted sale, up to the time of valuation, on the exchange on which the security is principally traded should be used or, if there were no sales on that exchange on the valuation date, the last quoted sale, up to the time of valuation, on the other exchanges should be used. With respect to the time of valuation, Rule 22c-1 under the Investment Company Act specifies the frequency with which current net asset value shall be computed. - If there was no sale on the valuation date but published closing bid and asked prices are available, the valuation in such circumstances should be within the range of these quoted prices. Some companies as a matter of general policy use the bid price, others use the mean of the bid and asked prices, and still others use a valuation within the range considered best to represent values in the circumstances; each of these policies is acceptable if consistently applied. Normally, it is not acceptable to use the asked price alone. Where, on the valuation date, only a bid price or an asked price is quoted or the spread between bid and asked prices is substantial, quotations for several days should be reviewed. If sales have been infrequent or there is a thin market in the security, further consideration should be given to whether "market quotations are readily available." If it is decided that they are not readily available, the alternative method of valuation prescribed by Section 2(a)(41) "fair value as determined in good faith by the board of directors" should be used. - iii. Over-the-Counter Securities - ASR 118: - Quotations are available from various sources for most unlisted securities traded regularly in the over-the-counter market. These sources include tabulations in the financial press, publications of the National Quotation Bureau and the "Blue List" of municipal bond offerings, several financial reporting services, and individual broker-dealers. These quotations generally are in the form of inter-dealer bid and asked prices. Because of the availability of multiple sources, a company frequently has a greater number of options open to it in valuing securities traded in the over-the-counter market than it does in valuing listed securities. A company may adopt a policy of using a mean of the bid prices, or of the bid and asked prices or of the prices of a representative selection of broker-dealers quoting on a particular security; or it may use a valuation within the range of bid and asked prices considered best to represent value in the circumstances. Any of these policies is acceptable if consistently applies. Normally, the use of asked prices alone is not acceptable. - Ordinarily, quotations for a security should be obtained from more than one broker-dealer, particularly if quotations are available only from broker-dealers not known to be established market-makers for that security, and quotations for several days should be reviewed. If the validity of the quotations appears to be questionable, or if the number of quotations is such as to indicate that there is a thin market in the security, further considerations should be given to whether "market quotations are readily available." If it is decided that they are not readily available, the security should be considered one required to be valued at "fair value as determined in good faith by the board of directors." - iv. Securities Value "in Good Faith" - ASR 118: - To comply with Section 2(a)(41) of the Investment Company Act and Rule 2a-4 under the Investment Company Act, it is incumbent upon the board of directors to satisfy themselves that all appropriate factors relevant to the value of securities for which market quotations are not readily available have been considered and to determine the method of arriving at the fair value of each such security. To the extent considered necessary, the board may appoint persons to assist them in the determination of such value, and to make the actual calculations pursuant to the board's direction. The board must also, consistent with this responsibility, continuously review the appropriateness of the method used in valuing each issue of security in the company's portfolio. The directors must recognize their responsibilities in this matter and whenever technical assistance is requested from individuals who are not directors, the findings of such individuals must be carefully reviewed by the directors in order to satisfy themselves that the resulting valuations are fair. - No single standard for determining "fair value... in good faith" can be laid down, since fair value depends upon the circumstances of each individual case. As a general principle, the current "fair value" of an issue of securities being valued by the board of directors would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accord with this principle may, for example, be based on a multiple of earnings, or a discount from market of a similar freely traded security, or yield to maturity with respect to debt issues, or a combination of these and other methods. Some of the general factors which the directors should consider in determining a valuation method for an individual issue of securities include: 1) the fundamental analytical data relating to the investment, 2) the nature and duration of restrictions on disposition of the securities, and 3) an evaluation of the forces which influence the market in which these securities are purchased and sold. Among the more specific factors, which are to be considered are: type of security, financial statements, cost at date of purchase, size of holding, discount from market value of unrestricted securities of the same class at time of purchase, special reports prepared by analysts, information as to any transactions or offers with respect to the security, existence of merger proposals or tender offers affecting the security, price and extent of public trading in similar securities of the issuer or comparable companies, and other relevant matters. - The above guidance does not purport to delineate all factors which may be considered. The directors should take into consideration all indications of value available to them in determining the "fair value" assigned to a particular security. The information so considered together with, to the extent practicable, judgment factors considered by the board of directors in reach its decisions should be documented in the minutes of the director's meetings and the supporting data retained for the inspection of the company's independent accountant. ##### [320-946-S99-13](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:8cdb1732f60c2618263e4f7f3d4634486f9727b199687dcbefdd14be4f72a237 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.03.c. Auditing Security Valuations. - ASR 118: - In the case of securities for which market quotations are readily available, the independent accounts should independently verify all the quotations used by the company at the balance sheet date and satisfy himself that such quotations may properly be used under the standards stated above. - In the case of securities carried at "fair value" as determined by the board of directors in "good faith," the accountant does not function as an appraiser and is not expected to substitute his judgment for that of the company's directors; rather, he should review all information considered by the board or by analysts reporting to it, read relevant minutes of directors meetings, and ascertain the procedures followed by the directors. If the accountant is unable to express an unqualified opinion because of the uncertainty inherent in the valuations of the securities based on the directors' subjective judgment, he should nevertheless make appropriate mention in his certificate whether in the circumstances the procedures appear to be reasonable and the underlying documentation appropriate. - When considering values assigned to securities by the company, the independent accountant should consider any investment limitations or conditions on the acquisition or holding of such securities which may be imposed on the company by the Act, by its certificate or by-laws, by contract, or by its filings with the Commission. If such restrictions are met by a narrow margin, the independent accountant may need to exercise extra care in satisfying himself that the evidence indicates that the security valuation determinations were not biased to meet those restrictions. ##### [320-946-S99-14](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:1fd5884346f89585974cb4c8cd705cda22364c35d885205162e7d1188821dd45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.03.d. Investments in Affiliates or Affiliated Persons. - ASR 118. - Various rules of Regulation S-X require that the financial statements of an investment company state separately investments in, investment income from, gain or loss on sales of securities of, and management or other service fees payable to (a) controlled companies and (b) other "affiliates." As stated in Rule 6-02(d) of Regulation S-X, the term "affiliate" means and affiliated person as defined in Section 2(a)(3) of the Investment Company Act, and the term "control" has the meaning given in Section 2(a)(9) of the Investment Company Act in such a manner as to encompass such control relationships and also the direct or indirect ownership of five percent or more of the outstanding voting securities of any issuer. An affiliated person as there defined also includes any officer, director, partner, copartner, or employee or, with respect to an investment company, any investment adviser or member of an advisory board thereof. - In ascertaining the existence of any such affiliations, the independent accountant should consider the facts obtained during the course of an audit and also make inquiries of the company's management; and his working papers should include written representations from the management as evidence of such inquiries. The representations should be in the form of a statement that the company, except to the extent indicated, (i) does not own any securities either of persons who are directly affiliated, or, to the best information and belief of management, of person who are indirectly affiliated, (ii) has not received income from or realized gain or loss on sales of investments in or indebtedness of such persons, (iii) has not incurred expenses for management or other service fees payable to such persons, and (iv) has not otherwise engaged in transaction with such persons. Where there is a question as to the existence of an affiliation, a written opinion of legal counsel should be obtained b the company's management, made available to the independent accountant and a copy included in the working papers. Regulation S-X requires disclosure in the financial statements or notes thereto of details of such investments and transactions. ##### [320-946-S99-15](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:ae7fbd057e29b81ab320ff6a68f47a554ac8f991f412c61747c86acff0c4c1ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-22](https://asc.understandingaccounting.org/updates/asu-2010-22/). ##### [320-946-S99-16](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:b687535249fc4f23b406643446a4aeb75bb91fcb5c1f06a0ffb257c562e20d80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.04 "Restricted" Securities. - ASR 113: - Section 4(2) of the Securities Act exempts from the registration requirements of that Act "transactions by an issuer not involving any public offering." This is the so-called "private offering" provision in the Securities Act. The securities involved in transactions effected pursuant to this exemption are referred to as restricted securities because they cannot be resold to the public without prior registration. They are also sometimes referred to as "investment letter securities" because of the practice frequently followed by the seller in such a transaction, in order to substantiate the claim that the transaction does not involve a public offering, of requiring that the buyer furnish a so-called "investment letter" representing that the purchase is for investment and not for resale to the general public. - The private offering exemption of Section 4(2) of the Securities Act is available only where the offerees do not need the protections afforded by the registration procedure. As the Court of Appeals for the Second Circuit stated in Katz v. Amos Treat & Co., CCH Fed'l. Sec. Law Rep. para. 92,409 (1969): - The Supreme Court has instructed that the applicability of the exemption should turn on whether the particular class of persons affected needs the protection of the Act. SEC V. Ralston Purina Co., 346 U.S. 119, 125 (1953). - The test of the availability of the Section 4(2) exemption is whether the offerees are in such a position with respect to the issuer as to have access to the kind of information that would be made available in a registration statement filed pursuant to the Securities Act. This test is no different when the offeree is an investment company. ##### [320-946-S99-17](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:c52a4a1e5cd3e9261faeba32ca095a2e2886afe137f9fe07f72c149af4a3dcf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.04.a. The Problem of Valuation. - ASR 113: - It is critically important that an investment company properly value its portfolio securities. It is obvious, for example, that any distortion in the valuation of a restricted security held by an investment company will distort the price at which the shares of the investment company are sold or redeemed. It is also clear that investment managers who are compensated on the basis of net asset value or performance my be unduly compensated if a restricted security, purchased at a discount from the market quotation for unrestricted securities of the same class, is over-valued. In such a case, investors may also be misled by the reported performance of the investment company. - The acquisition of restricted securities by both open-end and closed-end investment companies creates serious problems of valuation. Section 2(a)(41) of the Investment Company Act and Rule 2a-4 thereunder requires that in determining net asset value, "securities for which market quotations are readily available" must be valued at current market value while other securities and assets must be valued at "fair value as determined in good faith by the board of directors." - Readily available market quotations refer to reports of current public quotations for securities similar in all respects to the securities in question. No such current public quotations can exist in the case of restricted securities. For valuation purposes, therefore, restricted securities constitute securities for which market quotations are not readily available. Accordingly, their fair values must be determined in good faith by the board of directors and this obligation necessarily continues throughout the period these securities are retained in the company's portfolio. - Restricted securities should be included in the portfolio of a company and valued to determine current net asset value on the date that the investment company has an enforceable right to demand the securities from the seller. - Where the investment company negotiates the acquisition of the restricted securities directly with the owner of the securities, there are three significant dates. The first occurs when the investment company and the seller orally agree upon the price and the amount of the securities (the "handshake date"). At this point, there would not seem to be any enforceable right of the investment company to demand the securities from the seller since, in most states, particularly those which have adopted the Uniform Commercial Code, there is no enforceable right unless there exists some writing "sufficient to indicate that a contract has been made for sale of a stated quantity of described securities as a defined or stated price" (Section 8-319(a) of the Uniform Commercial Code). If the terms of the oral understanding do not contemplate compliance with any condition by the seller, it is suggested that the investment company procure, from the seller, a signed memorandum setting forth the price and quantity of securities to be sold. Upon receipt of that memorandum and enforceable right would be obtained. The securities should be valued as of that date. - In those situations where the oral understanding contemplates the execution of a formal contract of purchase and sale, no enforceable right exists until the time the formal contract is signed (the "contract date"). If the formal contract does not require compliance with any conditions by the seller, an enforceable right is then obtained, and the securities should be valued as of that date. - Where the formal contract requires compliance with stated conditions which the investment company believes should not be waived, no enforceable right is obtained until the stated conditions are satisfied. In that situation, the valuation date should be the date upon which the conditions are satisfied. (the "closing date"). - Restricted securities are often purchased at a discount, frequently substantial, from the market price of outstanding unrestricted securities of the same class. This reflects the fact that securities which cannot be readily sold in the public market place are less valuable than securities which can be sold, and also the fact that, by the direct sale of restricted securities, sellers avoid the expense, time and public disclosure which registration entails. - As a general principle, the current fair value of restricted securities would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. This depends upon their inherent worth, without regard to the restrictive feature, adjusted for any diminution in value resulting from the restrictive feature. Consequently, the valuation of restricted securities at the market quotations for unrestricted securities of the same class would, except for most unusual situations, be improper. Further, the continued valuation of such securities at cost would be improper if, as a result of the operation of the issuer, change in general market conditions or otherwise, cost has ceased; to represent fair market value. In such circumstances, maintaining the value of the restricted securities at cost would mislead investors as the value of the portfolio of the investment company which holds restricted securities. - Instead of valuing restricted securities at cost or at the market value of unrestricted securities of the same class, some investment companies valued restricted securities held in the portfolio by applying either a constant percentage or an absolute dollar discount to the market quotation for unrestricted securities of the same class. The automatic valuation of restricted securities by such a method, however, would also not appear to satisfy the requirement of the Investment Company Act that each security, for which a market quotation is not readily available, be valued at fair value as determined in good faith by the board of directors. - Thus, it would be improper in valuing restricted securities automatically to maintain the same percentage discount (from the market quotation for unrestricted securities of the same class) that was received when the restricted securities were purchased, without regard to other relevant factors such as, for example, the extent to which the inherent value of the securities may have changed. - Furthermore, the valuation of restricted securities by reference to the market price for unrestricted securities of the same class assumes that the market price for unrestricted securities of the same class is representative of the fair value of the securities. This may not be the case when the market for the unrestricted securities is very thin, i.e., only a limited volume of shares are available for trading. With a thin market, the news of the investment company's purchase of the restricted securities may, by itself, have the effect of stimulating a public demand for the unrestricted securities, the supply of which has not been increased, and thus lead to a spiralling increase in the valuation of both the restricted and unrestricted securities. - Moreover, if in valuing restricted securities, the diminution in value attributable to the restrictive feature is itself affected by factors subject to change, such as the length of time which must elapse before the investment company may require the issuers to cause the securities to be registered for public sale, the valuation should reflect any such changes. - Some companies value restricted securities, acquired at prices below the market quotations for unrestricted securities of the same class, by automatically amortizing the difference over some chosen period on the assumption that it will be possible to sell them at the market price for unrestricted securities at the expiration of the time period. Under prevailing conditions, however, it cannot always be determined either that the securities will, in fact, be effectively registered at the expiration of that period or that their public sale will otherwise be possible. For example, the issuer may be unable or unwilling to register at the expiration of the estimated period, and public sale at the end of that period without registration may not be lawful. Consequently, the practice of automatically amortizing the discount over an arbitrarily chosen period creates the appearance of an appreciation in the value of the securities which has not, in fact occurred, and, accordingly, is improper. - An undertaking by the issuer to register the securities within a specified time period would not dictate a different result. In view of the many factors that may alter the date of the proposed public offering, it is at best speculative to use such an undertaking alone as the basis for amortizing the discount. - In summary, there can be no automatic formula by which an investment company can value restricted securities in its portfolio to comply with Section 2(a)(41) and Rule 2a-4. It is the responsibility of the board of directors to determine the fair value of each issue of restricted securities in good faith; and the data and information considered and the analysis thereof should be retained for inspection by the company's independent auditors. While the board may, consistent with this responsibility, determine the method of valuing each issue of restricted security in the company's portfolio, it must continuously review the appropriateness of any method so determined. The actual calculations may be made by persons acting pursuant to the direction of the board. ##### [320-946-S99-18](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:7bf1067f992ac9fe7aa748b909efbebe0f1c63d45b2114cc03ffcba9f98b6479 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.04.b. The Problem of Portfolio Management. - ASR 113: - In addition to valuation, restricted securities present special problems of portfolio management. - The concept of the Securities Act exemption of a private placement of securities is premised on the belief that in such a situation the investor has such information concerning the issuer that he is able to fend for himself without need for the disclosures that would be provided by an effective registration statement. Correlatively, where the investor is a registered investment company, it would seem to be the fiduciary duty of the persons responsible for the investment decisions of the investment company to obtain, prior to purchase, the necessary information to make an independent analysis of the investment merits of the particular restricted securities. Also, in order to enable the continuing valuation of such securities, the investment company should require the seller to undertake to provide, to the extent known to the seller, information on a continuing basis as to any subsequent private sales of the issuer's securities. The investment company should also assure itself that it is in the position to obtain the appropriate financial information at appropriate times. It is assumed that any public disclosures, such as that made in periodic reports filed pursuant to the Exchange Act, are carefully considered by the investment company portfolio manager. - There is also the paradox of too much success to consider. For example, if restricted securities rapidly appreciate in value, perhaps because of an improvement in the business of the issuer, an investment company may find instead of having, for example, 5 percent of its assets invested in a particular company, it has instead, 25 percent of its assets in that company. The investment company to which this happens suffers a loss in diversification and may find that it has become overly sensitive to any adverse developments in the affairs of that particular portfolio company. - The foregoing factors in portfolio management relate to both open-end and closed-end management companies. There are additional special factors that relate only to open-end companies. - Section 2(a)(32), when read together with Section 5(a), of the Investment Company Act requires that the holders of redeemable shares issued by an open-end investment company be entitled to receive approximately their proportionate share of the issuer's current net assets, or the cash equivalent thereof, upon presentation of the security to the issuer or to a person designated by the issuer. Section 22(e) of the Investment Company Act provide that, absent specified unusual conditions, payment of the redemption price must be made within seven days after the tender of a redeemable security to an investment company or its agent designated for that purpose. - It is desirable that an open-end company retains maximum flexibility in the choice of portfolio securities which, on the basis of their relative investment merits, could best be sold where necessary to meet redemptions. To the extent that the portfolio consists of restricted securities, this flexibility is reduced. - Restricted securities may not be publicly sold-nor can they be distributed to redeeming shareholders as an in-kind redemption. While they may be sold privately, there may not be sufficient time to obtain the best price since the date of payment or satisfaction may not be postponed more than seven days after the tender of the company's redeemable securities for redemption. A private sale within that period may result in the investment company receiving less that its carrying value of the restricted securities. This would result in a preference in favor of the redeeming shareholders and a diminution of the net asset value per share of shareholders who have not redeemed. Therefore, instead of arranging a private sale of restricted securities, an open-end company that is faced with redemptions may decide to sell unrestricted securities which it would otherwise have retained on the basis of comparative investment merit. - Significant holdings of restricted securities not only magnify the valuation difficulties but may also present serious liquidity questions. Because open-end companies hold themselves out at all times as being prepared to meet redemptions within seven days, it is essential that such companies maintain a portfolio of investments that enable them to fulfill that obligation. This requires a high degree of liquidity in the assets of open-end companies because the extent of the redemption demands or other exigencies are not always predictable. The Commission is of the view that a prudent limit on any open-end company's acquisition of restricted securities, or other assets not having readily available market quotations, would be 10 percent. When as a result of either the increase in the value of some or all of the restricted securities held, or the diminution in the value of unrestricted securities in the portfolios, the restricted securities come to represent a larger percentage of the value of the company's net assets, the same valuation and liquidity questions occur. Accordingly, if the fair value of restricted holdings increases beyond 10 percent, it would be desirable for the open-end company to consider appropriate steps to protect maximum flexibility. The Commission will re-examine appropriate limitations in this area in light of all the policy objectives of the Investment Company Act. ##### [320-946-S99-19](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:73338de4ffc5091222040011306c7b542804599fb586ce70e4ffb86fc68c0086 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.04.c. The Problem of Disclosure. - ASR 113: - Section 8(b)(1)(D) of the Investment Company Act requires that an investment company include, in its registration statement filed with the Commission under the Investment Company Act, information as to its policy with respect to "engaging in the business of underwriting securities issued by other persons." Item 5(b)(4) of Form N-1 and Item 7(b)(4) of Form N-2 require that a registrant under the Act describe its policy or proposed policy with respect to "the underwriting of securities of other issuers." In response to this item, registrant's policy with respect to the acquisition of restricted securities should be disclosed. In view of the fact that policies listed under these items are fundamental policies which cannot be changed without prior shareholder approval, the importance of adopting a clear policy with regard to such investments is apparent. - The prospectus of a registered investment company should also fully disclose the company's policy with respect to restricted securities. It is also clear that an investment company which has a policy of acquiring restricted securities is responsible for full and adequate disclosure with respect to all matters relating to the valuation of such securities. Specifically, there should be included, in a note to the financial statements, (1) identification of any restricted securities and the date of acquisition, (2) disclosure of the methods used in valuing such securities both at the date of acquisition and the date of the financial statements, (3) disclosure of the cost of such securities and the market quotation for unrestricted securities of the same class both on the day the purchase price was agreed to (the so-called "hand-shake date"), and on the day the investment company first obtained and enforceable right to acquire such securities, and (4) a statement as to whether the issuer or the registrant will bear costs, including those involved in registration under the Securities Act, in connection with the disposition of such securities. - Section 10(b) of the Exchange Act and Rule 10b-5 thereunder makes it unlawful, among other things, for any person, in connection with the purchase or sale of securities, to employ any device, scheme, or artifice to defraud or to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made not misleading, or engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any persons. - The offering price of securities issued by a management investment company is premised upon the net asset value of such shares as determined pursuant to Section 2(a)(41) of the Investment Company Act and Rule 2a-4 thereunder and is so represented in its prospectus. The improper valuation of restricted securities held by such a company would distort the net asset value of the shares being offered or, in the case of an open-end company, redeemed, and would therefore constitute a fraud and deceit within the meaning of Section 10(b) and Rule 10b-5. - An open-end company, of course, represents to investors, in its prospectus, that it will, as required by Section 22(e) of the Investment Company Act, redeem its securities at approximate net asset value within seven days after tender. To the extent a material percentage of the assets of an open-end company consists of restricted securities which cannot publicly be sold without registration under the Securities Act, the ability of the company to comply with the provisions of the Investment Company Act relating to redemption, and to fulfill the implicit representations made in its prospectus with respect thereto, may be adversely affected. In any such situation, the investment company concerned and the persons responsible for the sale of its securities should give careful consideration to the possible application of the provisions of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. ##### [320-946-S99-20](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:1a4e78fa6cafca4234d39e7de6772083776d81f5071f18bc5f35e3c6373ace7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.05, Money Market Funds. ##### [320-946-S99-21](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:9ea5996cdac0c657daebf8ccf4aef5e2b7c60edff96d5f3fa18d2b77cd8dd8a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.05.a., Introduction. - ASR 219: - The Commission issued an interpretation of a rule adopted under the Investment Company Act indicating, generally, that it shall be considered inappropriate under the provisions of the rule for "money market" funds and certain other open-end investment companies to determine the fair value of debt portfolio securities on an amortized cost basis, except in the case of securities with remaining maturities of 60 days or less. - The Commission recognized that there had been considerable confusion and uncertainty as to the appropriate methods to be utilized by "money market" funds in valuing their portfolio securities. This interpretation should help remove the uncertainty and further the objectives of enabling investors in such funds to: (1) Purchase and redeem their shares at prices appropriately reflecting the current value of fund portfolio securities; (2) be properly credited for any unrealized appreciation or depreciation in such portfolio securities; and (3) be provided with meaningful and comparable information with which to appraise investment returns and the current earning ability of "money market" funds. ##### [320-946-S99-22](https://asc.understandingaccounting.org/asc/320/946/#320-946-S99-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:20.253Z to 2026-09-09T23:37:20.253Z Record version: sha256:5d218927aacf74fbca04259d88d3f3d2e29b5fcd733b949b31bd9963be4390f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of CFRR 404.05.b., Interpretation with Respect to Valuation of Debt Instruments by Money Market Funds and Certain Other Open-End Investment Companies. FN* - - FN\* In Investment Company Release 12206, February 1982, the Commission published for public comment proposed Rule 2a-7 under the Investment Company Act which would permit, under certain conditions, the use of the amortized cost method of asset valuation for purposes of calculating current net asset value per share or the "penny-rounding" method of computing current price per share. If adopted, the rule would generally supplement rather than supercede this interpretive guidance. - ASR 219: - The Commission is aware that many investment companies, including some "money market" funds, value short-term debt instruments in their portfolios on an amortized cost basis. Under this method of valuation, investment companies initially value such instruments at their cost on the date of purchase and, if the instrument was purchased at a discount, thereafter assume a constant proportional increase in value until maturity. FN1 - FN1 In simplified terms, for instruments purchased at a discount, the difference between the cost of such an instrument at purchase and its maturity value is divided by the number of days to maturity and that amount is accrued daily as an increase in the value of the instrument each day. More precisely, amortized cost valuation may be described as cost, adjusted for amortization of premium, or for accretion of discount. - However, during the period a debt security is held, changes in the market rate of interest and other factors may affect the price at which that security could be sold. As a general principle, the longer the remaining maturity of an outstanding debt security, the more that price will be affected by such interest rate changes. - The Commission is concerned that the use of the amortized cost method in valuing portfolio securities of registered investment companies may result in overvaluation or undervaluation of the portfolios of such companies, relative to the value of the portfolios determined with reference to current market factors. In the case of registered open-end management investment companies ("mutual funds" or "funds"), this would mean investors purchasing or redeeming shares could pay or receive more or less than the actual value of their proportionate shares of the fund's current net assets. The effect of such sales or redemptions may therefore result in appropriate dilution of the assets and returns of existing shareholders. FN2 - FN2 For example, redemptions of shares in a fund which has overvalued its portfolio or sales of shares in a fund which has undervalued its portfolio could result in the dilution of the assets and returns of other investors in the fund. The extent of such dilutive effects would be dependent upon several factors, including the extent of the overvaluation or undervaluation, and the proportion of fund shares sold or redeemed at such times. - Although inappropriate valuation of securities could cause these effects in various types of funds, the position taken herein is addressed specifically to the case of: (1) "Money market" funds, and (2) other open-end investment companies that hold a significant amount of debt securities, such that the use of the amortized cost method in valuing any portion or type of these debt securities could have a material impact on such funds' net asset values per share. Generally, the Commission would consider the use of a particular valuation method to have a material impact if the use of that method, as opposed to another method, might cause a change of at least one cent in a net asset value per share of $10.00. FN3 The interpretation explained below will be applicable to both "money market" funds and these other open-end investment companies. - FN3 Although one cent differences in net asset values per share of $10.00 might appear to be insignificant, the effects of such differences can be material to the decisions of investors when translated into differences in rates of return. Moreover, the inequitable effects of amortized cost valuation can occur in the case of any opened investment company where a significant proportion of a company's portfolio consists of debt securities valued at amortized cost. The extent of such inequitable effects will, of course, depend upon changes in interest rates and the level of a company's sales and redemptions of shares. - Generally, "money market" funds are open-end investment companies which invest primarily in short-term debt instruments. They provide a vehicle to permit investors to take advantage of what at times may be the higher short-term interest rates earned on large investments. Through a pooling of money these funds enable the purchase of larger denomination instruments than could normally be bought by the individual small investor.. These funds have also attracted investments from corporations, bank trust departments, and other institutional investors. Another characteristic of money market funds is the short-term investment perspective of many shareholders. Although the portfolio composition of "money market" funds is variable both in terms of the types of securities purchased and their maturities, the portfolios of such funds typically include U.S. Government and government agency issues, certificates of deposit, banker's acceptances, and commercial paper. - Section 22(c) of the Investment Company Act by reference to section 22(a) of the Investment Company Act, authorizes the Commission to adopt rules prescribing, inter alia, methods for computing the minimum purchase price and maximum redemption price of redeemable securities issued by a registered investment company: - \*\*\*for the purpose of eliminating or reducing so far as reasonably practicable any dilution of the value of other outstanding securities of such company or any other result of\*\*\* purchase, redemption, or sale which is unfair to holders of such other outstanding securities.\*\*\* - Section 2(a)(41) of the Investment Company Act defines "value", as here relevant to mean: - (B)\*\*\* (i) with respect to securities for which market quotations are readily available, the market value of such securities; and - (ii) with respect to other securities and assets, fair value as determined in good faith by the \[registered investment company's\] board of directors \*\*\* - Rule 2a-4 promulgated under the Investment Company Act provides, in part, that the "current net asset value" of a redeemable security issued by a registered investment company used in computing its price, for the purposes of distribution and redemption, means: - \*\*\*an amount which reflects calculation\*\*\* made substantially in accordance with the following, with estimates used where necessary or appropriate: - (1) Portfolio securities with respect to which market quotations are readily available shall be valued at current market value, and other securities\*\*\* shall be viewed at fair value as determined in good faith by the board of directors\*\*\* - Now that both the Commission and the money market fund industry have had the benefit of experience with this relatively new investment product, and to help insure that shares of such funds are sold and redeemed at prices reflecting the current market value or fair value of such funds' portfolio securities, the Commission has concluded that it is inconsistent with the provisions of Rule 2a-4 for a money market fund to determine the fair value of debt securities which mature at a date more that 60 days subsequent to the valuation date on an amortized cost basis. - Although debt securities with remaining maturities in excess of 60 days should not be valued at amortized cost, the Commission will not object if the board of directors of a money market fund, in good faith, determines that the fair value of debt securities originally purchased with remaining maturities of 60 days or less shall be their amortized cost value unless the particular circumstances dictate otherwise. FN4 Nor will the Commission object if, under similar circumstances, the fair value of debt securities originally purchased with maturities in excess of 60 days, but which currently have maturities of 60 days or less, is determined by using amortized cost valuation for the 60 days prior to maturity, such amortization being based upon the market or fair value of the securities on the 61st day prior to maturity. FN5 - FN4 The fair value of securities with remaining maturities of 60 days or less may not always be accurately reflected through the use of amortized cost valuation, due to an impairment of the creditworthiness of an issuer, or other factors. In such situations, it would appear to be incumbent upon the directors of a fund to recognize such factors and take them into account in determining "fair value." - FN5 A fund also may use amortized cost valuation for a period less than 60 days prior to maturity, in which case the principles indicated above would also be applicable. - The Commission believes that money market funds and those other companies to which this interpretation is applicable should value debt securities with greater than 60 days remaining to maturity based upon current market quotations if readily available or, if such quotations are not readily available, in such a manner as to take into account any unrealized appreciation or depreciation due to changes in interest rates and other factors which would influence the current fair values of such securities. FN6 These methods are sometimes referred to as "marking to market." In determining "fair value" by reference to current interest rates and other factors, the board of directors of a money market fund may, of course, utilize whatever method it determines in good faith to be most appropriate. The method utilized could be based in part, for example, upon quotations by dealers or issuers for securities of similar type, quality and maturity. - FN6 In ASR 118 \[see Section 404.03\], the Commission stated that: As a general principle, the current "fair value" of an issue of securities being valued by the board of directors would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. In that release, the Commission noted various factors that might be considered in arriving at "fair value", which factors included: Yield to maturity with respect to debt issues\*\*\* an evaluation of the forces which influence the market in which these securities are purchased and sold\*\*\* (and the) price and extent of public trading in similar securities of the issuer or comparable companies, and other relevant matters. - Except in the circumstances delineated above, the Commission believes that, in view of the experience which has been gained with respect to the characteristics of money market funds, the use of the amortized cost method of valuation by a money market fund cannot in the future represent a "good faith" effort to determine the "fair value" of portfolio securities for purposes of Rule 2a-4; such valuation fails to consider the impact of market factors subsequent to the date a debt security is purchased on the value of such security. Moreover, the probability that amortized cost valuation will not approximate "fair value" is progressively greater for securities of increasingly longer maturities. The Commission believes that the use of amortized cost valuation by money market funds in valuing securities with remaining maturities in excess of 60 days is not an appropriate estimate of market value or "fair value" and further that, because alternative valuation procedures which consider market factors are available, use of amortized cost valuation under such circumstances as an estimate is not necessary. This standard should help insure that fund shares are sold and redeemed at prices reflecting the appropriate proportionate share of funds' current net assets, and minimize the potential for dilution of the assets and returns of existing shareholders. - The Commission is also of the view that money market fund shareholders should be accurately credited with the effects of any unrealized appreciation or depreciation that may occur when the value of a fund's portfolio fluctuates. If such effects are not reflected in either a fund's net asset value or its distributions to shareholders, as a practical matter the result would be a situation analogous to that which would exist if amortized cost valuation were used, and similar dilutive effects could occur. Such may be the case, for example, where a money market fund "marks to market," but declares a daily dividend of accrued interest income and reflects any remaining unrealized appreciation or depreciation in a "floating" net asset value of $1.00 nominal value per share, rounded to the nearest cent. Under these circumstances, unrealized capital changes which could materially affect the value of such fund's portfolio, would ordinarily not be of sufficient magnitude to cause the net asset value to change by one cent. The effects of unrealized appreciation and depreciation in the case of a fund with a "floating" $1.00 net asset value per share, would generally appear in the third and fourth decimal places, and when rounded to the third decimal place (i.e., tenths of one cent) would still not have a one cent impact on the net asset value. Moreover, if such a one cent change should occur, dilution may also result, since a relatively small change in net asset value would cause a larger change in the computed net asset value per share due to rounding. For example, if in the type of fund described above the net asset value was calculated accurately to three decimal places and a change in net asset value from $1.004 to $1.006 occurred, such change of $.002 would cause the net asset value, when rounded to the nearest cent, to change by one full cent. - To alleviate these results and insure that shareholders are more properly credited for capital appreciation or depreciation, the Commission believes that any money market fund which reflects capital changes in its net asset value per share should calculate, and utilize for purposes of sales and redemptions, a current net asset value per share with an accuracy of one-tenth of one percent (equivalent to the nearest one cent on a net asset value of $10.00). Any less precise calculation by such a fund might have the effect of masking the impact of changing values of portfolio securities and therefore might not "reflect" the funds calculations pertaining to its portfolio valuation as required by Rule 2a-4. Source downloaded (UTC): 2026-09-09T23:37:24.372Z to 2026-09-09T23:37:43.319Z Record version: sha256:3c204a2b72ab577d3c20ae28ccd621f047a4a12109535229dcfb13a1282e078c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954: Investments—Debt Securities — Health Care Entities ### Machine-generated study aids ```json { "summary": "ASC 320-954 was the health care entities industry supplement to the debt securities guidance in Topic 320, addressing scope, subsequent measurement, presentation (including where unrealized gains and losses appear in a health care entity's performance indicator) and related implementation examples. Every paragraph in the subtopic — Sections 05, 15, 35, 45 and 55 — was superseded by Accounting Standards Update No. 2016-01. As a result the subtopic contains no operative guidance; health care entities look instead to Topic 320 as amended and to Topic 321 for equity securities.", "key_points": [ "Every paragraph of this subtopic is marked 'superseded by Accounting Standards Update No. 2016-01,' including 320-954-05-1, 320-954-15-1, 320-954-35-1, 320-954-45-1 through 45-3, and 320-954-55-1 through 55-5.", "Because Sections 05 (Overview and Background) and 15 (Scope) are superseded, the subtopic no longer establishes any scope for health care entities within Topic 320.", "The superseded Section 35 (Subsequent Measurement) and Section 45 (Other Presentation Matters) paragraphs previously governed how health care entities measured and displayed investment gains and losses; that guidance is no longer effective.", "The superseded Section 55 implementation guidance and illustrations (55-1 through 55-5) may not be applied.", "Health care entities should apply the general debt securities guidance in Topic 320, and ASU 2016-01's equity securities model now codified in Topic 321, rather than this subtopic." ], "categories": [ "Financial instruments", "Industry-specific", "Transition and effective dates", "Presentation" ], "audience_level": "intermediate", "student_note": "This subtopic is a shell: ASU 2016-01 wiped out all of its content, so citing it as live authority is the classic mistake. If a question involves a health care entity's investments, go to Topic 320 (debt securities), Topic 321 (equity securities), and Topic 954 for the performance indicator.", "related_topics": [ "320", "321", "954", "954-320", "825", "958-320" ], "key_concepts": [ "superseded guidance", "debt securities", "health care entities", "performance indicator", "industry-specific guidance", "unrealized gains and losses", "recognition and measurement of financial instruments" ] } ``` Source downloaded (UTC): 2026-09-09T23:37:24.372Z to 2026-09-09T23:37:24.372Z Record version: sha256:62f7ba2ee2de8a201675fb4e292175788297f11507f34e062299a9346f372b23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/954/#00-status) SEC content: no ##### [320-954-00-1](https://asc.understandingaccounting.org/asc/320/954/#320-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:24.372Z to 2026-09-09T23:37:24.372Z Record version: sha256:d633ed18ce5bae269f0d4cb0cb3ee3c31237d0b11c6ec05aa3e1c1603d032d50 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
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Performance IndicatorSupersededAccounting Standards Update No. 2016-0101/05/2016
954-320-05-1SupersededAccounting Standards Update No. 2016-0101/05/2016
954-320-05-1AmendedAccounting Standards Update No. 2012-0410/01/2012
954-320-15-1SupersededAccounting Standards Update No. 2016-0101/05/2016
954-320-15-1AmendedAccounting Standards Update No. 2012-0410/01/2012
954-320-35-1SupersededAccounting Standards Update No. 2016-0101/05/2016
954-320-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
954-320-45-1AmendedAccounting Standards Update No. 2016-1408/18/2016
954-320-45-1 through 45-3
SupersededAccounting Standards Update No. 2016-0101/05/2016
954-320-45-2AmendedAccounting Standards Update No. 2016-1408/18/2016
954-320-55-1 through 55-4
SupersededAccounting Standards Update No. 2016-0101/05/2016
954-320-55-4AmendedAccounting Standards Update No. 2016-1408/18/2016
954-320-55-5AddedAccounting Standards Update No. 2016-1408/18/2016
954-320-55-5SupersededAccounting Standards Update No. 2016-1408/18/2016
Source downloaded (UTC): 2026-09-09T23:37:27.518Z to 2026-09-09T23:37:27.518Z Record version: sha256:c0512c7f3434b5755fc4534f32def44256614d85013c38fb6e47ea3859283d38 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/954/#05-overview-and-background) SEC content: no ##### [320-954-05-1](https://asc.understandingaccounting.org/asc/320/954/#320-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:27.518Z to 2026-09-09T23:37:27.518Z Record version: sha256:9c7111c0a4c9b066955f85faeee624aa2ed840ca36b429e0db30faaedca10735 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:37:30.279Z to 2026-09-09T23:37:30.279Z Record version: sha256:8a3189dd48274554491ea736ed4452570ddbaf192658eb127585be65d4a223e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/954/#15-scope-and-scope-exceptions) SEC content: no ##### [320-954-15-1](https://asc.understandingaccounting.org/asc/320/954/#320-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:30.279Z to 2026-09-09T23:37:30.279Z Record version: sha256:1803c7122f7aa0492bce7024209e0bfca178df68d8fa0c8cffb0c70d9469bde6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:37:34.055Z to 2026-09-09T23:37:34.055Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/320/954/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-09T23:37:37.428Z to 2026-09-09T23:37:37.428Z Record version: sha256:c9cb322f69f7b1219eb7f348dae2f351844049ad9e15a084ed07a6c966c274b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/954/#35-subsequent-measurement) SEC content: no ##### [320-954-35-1](https://asc.understandingaccounting.org/asc/320/954/#320-954-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:37.428Z to 2026-09-09T23:37:37.428Z Record version: sha256:e356fd1e25c3a058001660bc2981248e02a2ca952836c1bb1b6b6d3134b339d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:37:39.268Z to 2026-09-09T23:37:39.268Z Record version: sha256:d154eb0d7d987a4df86833627a3e536cf8b25fdfc6c2778a01954cb3dda3b8bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/954/#45-other-presentation-matters) SEC content: no ##### [320-954-45-1](https://asc.understandingaccounting.org/asc/320/954/#320-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:39.268Z to 2026-09-09T23:37:39.268Z Record version: sha256:801d813c8d6e3ecf876128abebb9893ce7d60b6231346db7a91b9847e94b2145 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-954-45-2](https://asc.understandingaccounting.org/asc/320/954/#320-954-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:39.268Z to 2026-09-09T23:37:39.268Z Record version: sha256:9081086ba1795dda1049394afb0b9e4b8d65dac38040a657c87e4e0e1a5ee83a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-954-45-3](https://asc.understandingaccounting.org/asc/320/954/#320-954-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:39.268Z to 2026-09-09T23:37:39.268Z Record version: sha256:099e3465cdee79638272939618b21233ef1ba1761054fbbccfb4ae2ba64fd5bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:37:43.319Z to 2026-09-09T23:37:43.319Z Record version: sha256:5e464c3766cc4cfd4c43234bdf14ed7e758a28bb6306e8b0b18a061d9ed7c392 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-954-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/954/#55-implementation-guidance-and-illustrations) SEC content: no ##### [320-954-55-1](https://asc.understandingaccounting.org/asc/320/954/#320-954-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:43.319Z to 2026-09-09T23:37:43.319Z Record version: sha256:cd9c9e2e2befd6670ff5ac31c9dae84b17a5ec71a2a3b51050bf8c1d8a9fa33f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-954-55-2](https://asc.understandingaccounting.org/asc/320/954/#320-954-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:43.319Z to 2026-09-09T23:37:43.319Z Record version: sha256:67a5acb159a9292b1a05b60ef198faa913d6f2582af599eab720bfc574f87017 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-954-55-3](https://asc.understandingaccounting.org/asc/320/954/#320-954-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:43.319Z to 2026-09-09T23:37:43.319Z Record version: sha256:b477d52d4f09a27b81b8c7effa0e25ea8b319433fa198092f763fa8c0fc75f35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-954-55-4](https://asc.understandingaccounting.org/asc/320/954/#320-954-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:43.319Z to 2026-09-09T23:37:43.319Z Record version: sha256:8ec055641ac6bed5fd7c037adfb2243ab6ea6c993e265d69c5562e62d8adfdd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-954-55-5](https://asc.understandingaccounting.org/asc/320/954/#320-954-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:43.319Z to 2026-09-09T23:37:43.319Z Record version: sha256:826d24401fbe0505135cd8afe41a4fe591077ed5c37149864f1cad3c307f7084 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:37:46.933Z to 2026-09-09T23:38:15.825Z Record version: sha256:d242df77f1bdc4f4eb90bb54f4c67daa75d81387b177e63ad9e63850c9518ece Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958: Investments—Debt Securities — Not-for-Profit Entities ### Machine-generated study aids ```json { "summary": "This Subtopic (codified as 958-320) governs how not-for-profit entities account for investments in debt securities and sets disclosure rules for most NFP investments. The core rule is simple and different from the business-entity model: all debt securities held by an NFP are carried at fair value in the statement of financial position, with no held-to-maturity, trading, or available-for-sale classification. Purchased securities are initially measured at acquisition cost (excluding brokerage and other transaction fees); contributed securities and those received in agency transactions are initially measured at fair value.", "key_points": [ "All investments in debt securities held by an NFP, including mortgage-backed securities, shall be measured at fair value in the statement of financial position (320-958-35-1; 320-958-15-2).", "Initial measurement is acquisition cost excluding brokerage and other transaction fees if purchased, and fair value if received as a contribution or through an agency transaction (320-958-30-1).", "A debt security acquired by contribution is recognized as an asset and as revenue or gain in the period received (320-958-25-1, citing 958-605-25-2).", "If the NFP holds the investment as an agent with little or no discretion over how income and gains and losses will be used, the acquisition and subsequent activity are reported as agency transactions—changes in assets and liabilities, not changes in net assets (320-958-25-3; 320-958-35-3).", "Scope excludes equity-method investments and consolidated subsidiaries (958-810-15-4), derivatives under Topic 815, short sales, and investments held by a financially interrelated entity (Subtopic 958-20) (320-958-15-4); an embedded derivative does not remove the host contract from scope (320-958-15-5).", "An entity does not look through the legal form of its investment to the investee's underlying securities—a limited partnership interest meeting the definition of an equity security stays an equity security even if the partnership holds mostly debt securities (320-958-15-6).", "Disclosures: aggregate carrying amount of investments by major type for each statement of financial position presented (320-958-50-2), and the nature and carrying amount of each investment or group representing a significant concentration of market risk for the most recent period (320-958-50-3)." ], "categories": [ "Financial instruments", "Not-for-profit", "Subsequent measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exam trap: students carry over the 320-10 three-bucket model (trading/AFS/HTM) to NFPs—there is none; every debt security an NFP holds is at fair value, with return reported in the statement of activities per 958-220-45-22 through 45-30. The second common miss is the no-look-through rule in 320-958-15-6, which classifies a partnership interest by its own form, not by the investee's underlying assets.", "related_topics": [ "958-321", "958-325", "958-220", "958-605", "320-10", "820" ], "key_concepts": [ "debt security", "fair value measurement", "not-for-profit investments", "agency transaction", "contributed securities", "concentration of market risk", "major types of investments", "scope exceptions" ] } ``` Source downloaded (UTC): 2026-09-09T23:37:46.933Z to 2026-09-09T23:37:46.933Z Record version: sha256:3ed5e6ddce473989221d1b906cee264f67c5ad61e05344c9b0c5d8491dead5a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/958/#00-status) SEC content: no ##### [320-958-00-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:46.933Z to 2026-09-09T23:37:46.933Z Record version: sha256:fbca214bb00e454f6cc5c41490f90e159de349a4c758096338ae3587790465fe 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
Agency TransactionAddedAccounting Standards Update No. 2015-1006/12/2015
Agency Transactions (Not for Profits)SupersededAccounting Standards Update No. 2015-1006/12/2015
Board-Designated Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Debt SecurityAddedAccounting Standards Update No. 2016-0101/05/2016
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Donor-Restricted Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Endowment FundAmendedAccounting Standards Update No. 2016-1408/18/2016
Equity Security (1st def.)SupersededAccounting Standards Update No. 2016-0101/05/2016
Funds Functioning as EndowmentAddedAccounting Standards Update No. 2016-1408/18/2016
Net AssetsAmendedAccounting Standards Update No. 2016-1408/18/2016
Net Assets with Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Permanently Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Programmatic InvestingAddedAccounting Standards Update No. 2016-1408/18/2016
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
Readily Determinable Fair ValueSupersededAccounting Standards Update No. 2016-0101/05/2016
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2015-1006/12/2015
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
Spending RateAddedAccounting Standards Update No. 2014-0603/14/2014
Temporarily Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-05-2AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-15-1A through 15-4
AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-15-1AAddedAccounting Standards Update No. 2012-0410/01/2012
958-320-15-6AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-15-7AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-25-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-25-1AmendedMaintenance Update 2015-11 (PDF)06/19/2015
958-320-25-2AmendedMaintenance Update 2016-05 (PDF)04/12/2016
958-320-25-2SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-25-2AmendedAccounting Standards Update No. 2014-0603/14/2014
958-320-30-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-35-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-320-35-2SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-35-3AmendedAccounting Standards Update No. 2015-1006/12/2015
958-320-45-1AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-45-1 through 45-10
SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-45-2SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-45-3 through 45-5
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-45-5AmendedAccounting Standards Update No. 2012-0410/01/2012
958-320-45-6AmendedAccounting Standards Update No. 2012-0410/01/2012
958-320-45-8AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-45-9AmendedAccounting Standards Update No. 2014-0603/14/2014
958-320-50-1SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-3SupersededAccounting Standards Update No. 2016-0101/05/2016
958-320-55-4AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-55-5SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-5AmendedAccounting Standards Update No. 2016-1306/16/2016
958-320-55-5AmendedAccounting Standards Update No. 2014-0603/14/2014
958-320-55-6 through 55-8
AmendedAccounting Standards Update No. 2016-1408/18/2016
958-320-55-9SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-10SupersededAccounting Standards Update No. 2016-1408/18/2016
958-320-55-11AddedAccounting Standards Update No. 2016-1408/18/2016
958-320-60-1SupersededAccounting Standards Update No. 2022-0203/31/2022
958-320-60-1AmendedAccounting Standards Update No. 2016-0101/05/2016
Source downloaded (UTC): 2026-09-09T23:37:48.647Z to 2026-09-09T23:37:48.647Z Record version: sha256:a8142aeee05c1a1e4b093f108bc18d0c09b792903e9d56255405bdd50782ce08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/958/#05-overview-and-background) SEC content: no ##### [320-958-05-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:48.647Z to 2026-09-09T23:37:48.647Z Record version: sha256:68cca221f90b52a07612b83f35880528d22de7d02c7441860ca2cb4919933a4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Not-for-Profit Entities Topic contains several Subtopics for investments held by [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs) because the guidance differs by form of the investment. The Subtopics are: 1. a Financially Interrelated Entities 2. b Investments—Debt Securities 3. bb Investments—Equity Securities 4. c Investments—Other 5. d Consolidation. ##### [320-958-05-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:48.647Z to 2026-09-09T23:37:48.647Z Record version: sha256:5694e6108573dff1a38d7c609a5c45fc80a507b1f59513f94a04fc7a0f2c7c31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic establishes standards of financial accounting and reporting for all investments in debt securities held by NFPs. It also establishes disclosure requirements for those and most other investments held by NFPs. Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:6a52fcceec1b69e0c6ccbfd58e8e50319cb4772a4667a2cd38a384539652132c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-958-15-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:806c43b5777f52d963ee707dd3cdf0f133fa2cd96802180c54313d68ca9ac5b7 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 958-10-15, with specific exceptions noted below. #### Health Care Entities ##### [320-958-15-1A](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:8e18da18702d9518f42090a90dc10f4ecf5fbbf86d0f7878d7ec4b57b53b3391 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The application of this Subtopic by not-for-profit, business-oriented health care entities, as described in paragraph [954-10-05-2(b)](https://asc.understandingaccounting.org/asc/954/10/#954-10-05-2), is subject to additional guidance in Subtopic 954-220. #### Instruments ##### [320-958-15-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:6fa9cf84102042ccb45e163ce5d40401f0a0a37dbfeb4908aa464e021232d7ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-15-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:2f614653c17be6511af7e23d146137ccaceb0f85de0ccc1c0a40b95aab71e5ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reporting standards in paragraphs [958-220-45-22 through 45-30](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) and Section 958-320-50 apply to all investments held by [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs), except those described in the following paragraph. ##### [320-958-15-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:43904005fb6d1e643bceebd39d0263b132b7d144e9f9112e2570d4e18cce74e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/810/958/#810-958-15-4) 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](https://asc.understandingaccounting.org/asc/810/958/#810-958-15-4) or [958-810-25-2 through 25-4](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-2) . 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](https://asc.understandingaccounting.org/asc/815/10/#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](https://asc.understandingaccounting.org/asc/320/940/#320-940-35-1) with respect to broker-dealers and paragraph [942-405-35-1](https://asc.understandingaccounting.org/asc/405/942/#405-942-35-1) with respect to depository institutions). For guidance on evaluating whether a short sale transaction involves a derivative instrument, see paragraph [815-10-55-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-55-57). 5. e Investments held by a [financially interrelated entity](https://asc.understandingaccounting.org/glossary/f/#financially-interrelated-entities "A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the following characteristics: One of the entities has the ability to influence the operating and financial decisions of the other. One of the entities has an ongoing economic interest in the net assets of the other."). See Subtopic 958-20 for reporting interests in the [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions.") of a financially interrelated entity. ##### [320-958-15-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:4d2942f6c78738d167aed9264b9dc6e7cc9d282d85280f27bfdc86335afedaf1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/815/15/#815-15-05-1)) remains within the scope of this Subtopic. ##### [320-958-15-6](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:f1dd44578dcdf79407e8ae9c4bc6380dcdcd545e268b143759f6b75401ed639d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Other Considerations ##### [320-958-15-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-15-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:50.575Z to 2026-09-09T23:37:50.575Z Record version: sha256:1630c858be296b87c10e659c0223e4204cbff81dd8b4c0cd6dbb1069d6bf99fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not specify methods to be used for measuring the amount of interest income. Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:d1c5326f2f04d7014288c54b0e69865766597fc65d15308733fba673105e0277 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/958/#25-recognition) SEC content: no ##### [320-958-25-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:0a61a5cf431cccff025fe37416a9870174888090e232faf1facae05894d49e3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-605-25-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-2), if a [debt security](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") is acquired by contribution, it shall be recognized as an asset and as a revenue or gain in the period received. ##### [320-958-25-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:44dbc3db06de81c6dafeaf481606aa83f8f607363523da4a1cf2c0ecd37ad5cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-25-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:57.941Z to 2026-09-09T23:37:57.941Z Record version: sha256:5c50b4964a27ea18d0fefaff2c03f6ee5057e28e38b6ed69d64b2842011ea49d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) is holding an investment as an agent and has little or no discretion in determining how the investment income, unrealized gains and losses, and realized gains and losses resulting from that investment will be used, the investment's acquisition shall be reported as an agency transaction. That is, the NFP agent recognizes the acquisition as an asset and a liability rather than as a change in net assets. Source downloaded (UTC): 2026-09-09T23:37:59.741Z to 2026-09-09T23:37:59.741Z Record version: sha256:130cfa9c6cf0f2588c45581d00f5adbd5e789b50d2ec11702663316ff5198b99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/320/958/#30-initial-measurement) SEC content: no ##### [320-958-30-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:37:59.741Z to 2026-09-09T23:37:59.741Z Record version: sha256:14fd84af86c912543613187e71eadcaecfecf0118415d8978d345e392544ec69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [debt security](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") shall be initially measured at its acquisition cost (excluding brokerage and other transaction fees) if it is purchased. It shall be initially measured at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") if it is received as a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") or through an [agency transaction](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "A type of exchange transaction in which the reporting entity acts as an agent, trustee, or intermediary for another party that may be a donor or donee."). Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:92b7be4e7baa728cf857e38c491c4c36e1c703795d3fd02bbbe151cc8d224c7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/958/#35-subsequent-measurement) SEC content: no ##### [320-958-35-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:98f9a8aa7c72535a0aa24331da302ba9aa00c099f7281d9f3d1ed274f7bea1b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All investments in [debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") shall be measured at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") in the statement of financial position. ##### [320-958-35-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:4a5125a62ce70358633b4004d927bf53a68e6a0cc6c7f8079d6ee3f5ee09061f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Investments Held As an Agent ##### [320-958-35-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:03.778Z to 2026-09-09T23:38:03.778Z Record version: sha256:a2903df0fe2ca1cf8b053eb54003bdfcc66ca382c898918ac099a0d7715e1025 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) is holding an investment as an [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf.") and has little or no discretion in determining how the investment income, unrealized gains and losses, and realized gains and losses resulting from that investment will be used, those investment activities shall be reported as [agency transactions](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "A type of exchange transaction in which the reporting entity acts as an agent, trustee, or intermediary for another party that may be a donor or donee.") and, therefore, as changes in assets and liabilities, rather than as changes in [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions."). Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:a3bad936cf67cc57b895272138c7794ad1263b3fc6b58c358d6b1bd2e50425d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/320/958/#45-other-presentation-matters) SEC content: no ##### [320-958-45-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:e681ab5572f8f09506db412b536c51a4e05728c1e2cbc421c0fb75fa01714122 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:b2f2c5647f5307929dbc4cf69f0d078b113d7ba5a7c57131ebbb6b2abc253008 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-45-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:05df8135a84ca12c938b36be8440d4d5a470661b3e95cb3c1f79f76ab7cdf272 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:6dfc739d6091080b6d4f01a56ec258c737a73d2f46913ae768512fb58e96dd1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:1bcda1890569af5b8bd3080c08fb5f178258c0bcf584750e81070de2a839d19d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-6](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:218766952fd090bcd14c3627ed0b1e1ffa56b9f9d03ea80c323178c100cbd017 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:dd8243b913596ef67bfc5a13a0a0cfd03bd110346442d385fb46ad73451847a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-8](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:b14cfd54d4ae2ddc16de4cd6b901c6e4243afd4697c2689838fbd2b02235b69b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-9](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:95b382354298399c3fc5881cc3ef1ce4b00388a94cd568a4053a941d4b1ed37b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [320-958-45-10](https://asc.understandingaccounting.org/asc/320/958/#320-958-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:06.246Z to 2026-09-09T23:38:06.246Z Record version: sha256:3a07cf39904e719ffac91ae567e6fe7bbeba821af656d2cc5be6d35333b69cfe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:1e68f8d8150392a25f73ddab90763a09cb89fcfccebdf527514eb947504b8204 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/958/#50-disclosure) SEC content: no ##### [320-958-50-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:32869cf49df21fd19adb6c15dad8e46e137aeb3443e2f4d8ef3165afe0dab37e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-50-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:36696b8adebbe7e6c9c1d64260492f2fd74fa4fc173c501eff167413dfa08ed8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which a statement of financial position is presented, an NFP shall disclose the aggregate carrying amount of investments by major types, for example, equity securities, U.S. Treasury securities, corporate debt securities, mortgage-backed securities, oil and gas properties, and real estate. ##### [320-958-50-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:ebe9371aea62a8b010f620740f3911b3709b525c61cf1dca722dee346352595b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the most recent period for which a statement of financial position is presented, an NFP shall disclose the nature of and carrying amount for each individual investment or group of investments that represents a significant concentration of market risk, such as risks that result from the nature of the investments or from a lack of diversity of industry, currency, or geographic location. ##### [320-958-50-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:37370968d228676a869792599a4f85846de32edd9bee5218d3afc0ffade4eb07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [825-10-50-21](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-21) requires disclosures about all significant concentrations of credit risk arising from all financial instruments, (including significant concentrations of credit risk arising from derivative instruments accounted for under Topic 815), whether from an individual counterparty or groups of counterparties. ##### [320-958-50-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:09.760Z to 2026-09-09T23:38:09.760Z Record version: sha256:38894470a70b1447af669c020b9a7f8732269941e10e9e2353456274f751f730 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about realized and unrealized gains and losses and about historical costs of investments may be useful in some circumstances. For example, if a state adopted a law that allows an NFP to spend only realized gains or if an NFP pays taxes on realized gains and losses, information that distinguishes between realized and unrealized amounts may be useful. Thus, this Subtopic does not preclude disclosing that information. Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:ec8023c0825d4c4ef3d6c382a3fcdbb3488d318a8aec8ee059beebb44eca4293 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/320/958/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [320-958-55-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:b1d03348beb5da357fbffd0cd707a51b8b6d54eb6ff103d62f3f447f04d9ca2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The term _debt security_ includes any [security](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") representing a creditor relationship with an entity. Thus, the term debt security includes all of the following securities, among other items: 1. a U.S. Treasury securities 2. b U.S. government agency securities 3. c Municipal securities 4. d Corporate bonds 5. e Convertible debt 6. f Commercial paper 7. g All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits 8. h Interest-only and principal-only strips 9. i Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor 10. j A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position. ##### [320-958-55-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:785d69e1984e347b74d9ff3e7cf90a4d42655e1409b82d0b4fe601b99e49d3b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, the term debt security excludes all of the following instruments: 1. a Option contracts 2. b Financial futures contracts 3. c Forward contracts 4. d Lease contracts 5. e Swap contracts 6. f Receivables that do not meet the definition of security and, thus, are not debt securities, for example: 1. 1 Trade accounts receivable arising from sales on credit 2. 2 Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions and [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs). However, if those receivables have been securitized, they would meet the definition of a security, and thus be a debt security. Paragraph [320-10-55-3](https://asc.understandingaccounting.org/asc/320/10/#320-10-55-3) explains that, even if a loan could readily be converted into a security, the loan is not a debt security until it has been securitized. ##### [320-958-55-3](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:4a75fa9f2b011554d12e1bc20fbd3c5d3c75e332e917caeea52001a0f73de1a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Illustrations ##### [320-958-55-4](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:3985f3fd1ec1fa1ab898684e3f25bd07b089cc6373bda0bbf882b5dbb2c0ab95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [958-320-50-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-2) and a statement of activities that reports investment return in accordance with paragraphs [958-220-45-22 through 45-26](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-22) . ##### [320-958-55-5](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:a7e2de4174e489f950b03270ac51a11542ecce6e36ecdbf66b8e72aacec0cc98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-55-6](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:582c78979a639d9a9a58153c4d84265d6cd10e26c96794e605e59de22be338f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions: 1. a Not-for-Profit Entity A (NFP A) invests cash in excess of daily requirements in short-term investments; during the year, those investments earned $1,275. 2. b Most long-term investments of NFP A's endowments are held in an investment pool, which earned income of $11,270 and had net gains of $15,450. 3. c Certain endowments are separately invested because of donors' requirements. The investments of those endowments earned income of $1,000 and increased in value by $1,500. 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 5. e NFP A released from restrictions the full amount of [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") that were appropriated from the [donor-restricted endowment fund](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-endowment-fund "An endowment fund that is created by a donor stipulation (donors include other types of contributors, including makers of certain grants) requiring investment of the gift in perpetuity or for a specified term. Some donors or laws may require that a portion of income, gains, or both be added to the gift and invested subject to similar restrictions. The term does not include a Board-Designated Endowment Fund. See Endowment Fund.") ($4,500) because the entity spent the funds for the required purpose. 6. f NFP A's governing board appropriated for expenditure $1,025 from its short-term investments. 7. g NFP A had $25 of gross [programmatic investing](https://asc.understandingaccounting.org/glossary/p/#programmatic-investing "The activity of making loans or other investments that are directed at carrying out a not-for-profit entity's purpose for existence rather than investing in the general production of income or appreciation of an asset (for example, total return investing). An example of programmatic investing is a loan made to lower-income individuals to promote home ownership.") income. The expenses related to the programmatic activity are included in operating expenses. ##### [320-958-55-7](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:2e8a3950c8f19ce7fb64562309e72694c3d1b0146cb4f5e40cd47748012b5d4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A statement of activities of NFP A is illustrated as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-FDF423DA-945E-4045-975D-BC9B113A1445-low.gif) Not-for-Profit Entity A Statement of Activities "Year Ended June 30, 20X1" Without Donor Restrictions With Donor Restrictions Total "Revenues, gains, and other support:" Contributions " $X,XXX " " $ X,XXX " " $XX,XXX " Investment return appropriated from short-term investments " 1,025 " Fees " X,XXX " " X,XXX " Programmatic investing return 25 Other XXX XXX Net assets released from restrictions Investment return appropriated and released for current operations from donor-restricted endowment " 4,500 " " (4,500)" \[Other net assets released from restrictions\] " X,XXX " " (X,XXX) " "Total operating revenues, gains, and other support" " XX,XXX " " XX,XXX " Expenses: Program A " XX,XXX " Program B " X,XXX " Program C " X,XXX " Management and general " X,XXX " Fundraising " X,XXX " Total operating expenses " XX,XXX " Operating revenues in excess of expenses " XX,XXX " Other changes: "Investment return, net" " 1,275 " " 29,220 " " 30,495 " Investment return appropriated for current operations from short-term investments " (1,025)" \[Other items considered to be nonoperating\] " X,XXX " " X,XXX " " X,XXX " Change in net assets " $XX,XXX " " $ X,XXX " " $XX,XXX " ##### [320-958-55-8](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:36682503ddfa4363831953d820c71450883fd2acf4a92809fd3943d8d58bd288 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A would add the following illustrative text to its note to financial statements that describes the measure of operations. - The board of trustees designates only a portion of NFP A's cumulative investment return for support of current operations; the remainder is retained to support operations of future years and to offset potential market declines. The amount computed and appropriated under the endowment spending policy of the investment pool and the amount appropriated from the investment return associated with the short-term investments are used to support current operations. ##### [320-958-55-9](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:adc6bd159fa7ccc4edfcc0b7fd4a3d09cc16f2ae371f7a2cf898e758cacacc8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-55-10](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:618e781e4b114a713e5d5bcb51090cb3e1fd9bb7604a71e1962e769d1f68cb3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [320-958-55-11](https://asc.understandingaccounting.org/asc/320/958/#320-958-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:12.012Z to 2026-09-09T23:38:12.012Z Record version: sha256:3dbbce29f27681ee8f210f6aee2d6bf06bc2219ddc5454a5cc146b3e47c33dbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with the requirements in paragraph [958-320-50-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-50-2), an NFP would disclose the aggregate carrying amount of investments by major types and may choose to combine these disclosure requirements with disclosures about the level in the fair value hierarchy as required in Topic 820 on fair value measurement. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-175C1D3F-6728-4C51-B416-6560A0866840-low.gif) 20X1 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Measured at Net Asset Value (Level I) (Level II) (Level III) 20X1 Total Investments Cash equivalents held by investment managers " $19,366 " " $19,366 " U.S. common and preferred stocks " 61,190 " " 61,190 " International common and preferred stocks " 71,973 " " 71,973 " Fixed income " $40,920 " " 40,920 " Equity funds " 20,210 " " $10,093 " " $10,068 " " 40,371 " - Hedge funds " 26,248 " " 26,248 " - Private equity " 39,090 " " 39,090 " - Real estate " 33,520 " " 33,520 " Pooled endowment Pooled endowment " 172,739 " " 40,920 " " 43,613 " " 75,406 " " 332,678 " Split-interest agreements U.S. common and preferred stocks " 12,970 " " 12,970 " Fixed income " 6,635 " " 6,635 " Total investments " $185,709 " " $47,555 " " $43,613 " " $75,406 " " $352,283 " Source downloaded (UTC): 2026-09-09T23:38:15.825Z to 2026-09-09T23:38:15.825Z Record version: sha256:ef316feac46332e711a9d0dfad2b2b9a6d303814a913549015db7b00f5195a29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-958-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/320/958/#60-relationships) SEC content: no ##### [320-958-60-1](https://asc.understandingaccounting.org/asc/320/958/#320-958-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:15.825Z to 2026-09-09T23:38:15.825Z Record version: sha256:380672d175b64d90fd4a8881b3476b3aec111c78c5aa0553c3bd185267886bb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). #### Derivatives and Hedging ##### [320-958-60-2](https://asc.understandingaccounting.org/asc/320/958/#320-958-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:15.825Z to 2026-09-09T23:38:15.825Z Record version: sha256:49ad8ab2cd8294af0d8ea48a920cb1afaedd92b0c95e06707cea38f4b6ab6627 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition by an NFP of the gain or loss on a hedging instrument or a nonhedging derivative instrument, see paragraphs [815-25-35-19](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-19) and [815-10-35-3](https://asc.understandingaccounting.org/asc/815/10/#815-10-35-3), respectively. Source downloaded (UTC): 2026-09-09T23:38:18.815Z to 2026-09-09T23:38:38.868Z Record version: sha256:049e847c0d44673f4e66c95c156b3e2f2ddceae89b223d91d39ab9a1efc858e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965: Investments—Debt Securities — Plan Accounting—Health and Welfare Benefit Plans ### Machine-generated study aids ```json { "summary": "ASC 320-965 tells health and welfare benefit plans how to account for their investments in debt and equity securities. Such securities are reported at fair value less costs to sell (if significant) at the financial statement date, and purchases and sales are ordinarily recorded on a trade-date basis. Settlement-date accounting is permitted only if the fair value did not change significantly between trade date and financial statement date and the transactions do not significantly affect the composition of plan assets available for benefits.", "key_points": [ "Plan investments in equity or debt securities are reported at fair value less costs to sell, if significant, as of the financial statement date (320-965-35-1).", "Accrual accounting requires purchases of securities to be recorded on a trade-date basis (320-965-25-1).", "Settlement-date accounting for purchases is acceptable when settlement follows the financial statement date only if fair value less costs to sell did not change significantly from trade date to statement date and the purchases do not significantly affect the composition of plan assets available for benefits (320-965-25-1(a)-(b)).", "The same trade-date rule and two-condition settlement-date exception apply to sales of securities (320-965-40-1).", "Net appreciation or depreciation in the fair value less costs to sell, if significant, of investments is ordinarily disclosed in the notes to the financial statements (320-965-50-1).", "Other investments of health and welfare benefit plans, particularly investment and insurance contracts, are addressed in Subtopic 965-325, not here (320-965-25-2).", "Scope follows Section 965-10-15, the Overall health and welfare benefit plan Subtopic (320-965-15-1)." ], "categories": [ "Subsequent measurement", "Fair value", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Benefit plan accounting departs from ordinary ASC 320 classification: there is no held-to-maturity/available-for-sale/trading distinction — everything is at fair value less costs to sell, with changes flowing through the statement of changes in net assets available for benefits. The common trap is assuming settlement-date accounting is freely available; it is a narrow exception requiring both conditions in 320-965-25-1 to be met.", "related_topics": [ "965-10", "965-325", "960-325", "962-325", "820", "320-10" ], "key_concepts": [ "health and welfare benefit plan", "fair value less costs to sell", "trade-date accounting", "settlement-date accounting", "net appreciation or depreciation", "net assets available for benefits", "debt and equity securities", "employee benefit plan accounting" ] } ``` Source downloaded (UTC): 2026-09-09T23:38:18.815Z to 2026-09-09T23:38:18.815Z Record version: sha256:8b7ce93f4a983c097f16b2a70d5b212d7e98082fece3b36f08b67a1c95e9ab6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/965/#00-status) SEC content: no ##### [320-965-00-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:18.815Z to 2026-09-09T23:38:18.815Z Record version: sha256:d76bffe020ee2b29ee19c9789c7325a8294b731a93806cca6ec37ac55d56e28b 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
Fair Value (2nd def.)SupersededAccounting Standards Update No. 2012-0410/01/2012
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
965-320-25-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-320-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-320-40-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-320-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T23:38:21.403Z to 2026-09-09T23:38:21.403Z Record version: sha256:ed072cd2f7ef0b1d2364db8c235187122f4a348d70bdd300438170fc9ae73dc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/965/#05-overview-and-background) SEC content: no ##### [320-965-05-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:21.403Z to 2026-09-09T23:38:21.403Z Record version: sha256:92e9e15526f1935d514250b965f516174c46acd84d008d0e3504142eb1a3b460 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on debt and equity securities investments for [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services."). Source downloaded (UTC): 2026-09-09T23:38:23.686Z to 2026-09-09T23:38:23.686Z Record version: sha256:531f1c2aa03c6c8f56792775ba1db1b0af760b5d7c1c4048aef5ec5cef9cc572 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/965/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-965-15-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:23.686Z to 2026-09-09T23:38:23.686Z Record version: sha256:402874671cfa2e4b7fd17aaad6bfb471488cd5e31629bb45202dbeb61e0068f8 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 965-10-15. Source downloaded (UTC): 2026-09-09T23:38:29.180Z to 2026-09-09T23:38:29.180Z Record version: sha256:aa4a9542269519ea75b7c83768e549b8b38f35c7bbd0e2d63927f38315d851bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/965/#25-recognition) SEC content: no ##### [320-965-25-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:29.180Z to 2026-09-09T23:38:29.180Z Record version: sha256:9e88960f97e39b772529600ec7c2f86ada99e248e03fc4b83ec82e302696fc9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accrual basis of accounting requires that purchases 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 such purchases is acceptable if both of the following conditions exist: 1. a The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") less costs to sell, if significant, of the securities purchased just before the financial statement date does not change significantly from the trade date to the financial statement date. 2. b The purchases do not significantly affect the composition of the plan's assets available for benefits. ##### [320-965-25-2](https://asc.understandingaccounting.org/asc/320/965/#320-965-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:29.180Z to 2026-09-09T23:38:29.180Z Record version: sha256:ae7f66ad31d1b0e6590303e4c4ebab7e92dbc0b1ba73aebef0b12594ad890b30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 965-325 for guidance on accounting for other investments, in particular investment and insurance contracts, of [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services."). Source downloaded (UTC): 2026-09-09T23:38:32.862Z to 2026-09-09T23:38:32.862Z Record version: sha256:c7a0cccad5514d90338fdcb4a377f115b4cd879c295e0d718e460a9e51992aaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/965/#35-subsequent-measurement) SEC content: no ##### [320-965-35-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:32.862Z to 2026-09-09T23:38:32.862Z Record version: sha256:4354de7a61b915e411dafb24ea946b4c326bdd2a5e2481c895be4d67606ace44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan investments in the form of equity or debt securities shall be reported at their [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") less costs to sell, if significant, at the financial statement date. Source downloaded (UTC): 2026-09-09T23:38:36.490Z to 2026-09-09T23:38:36.490Z Record version: sha256:a635bf8abcc62af8c789d8cc692d2b0ad0ae15c479d7fa01fe85ecc0de332722 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/320/965/#40-derecognition) SEC content: no ##### [320-965-40-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:36.490Z to 2026-09-09T23:38:36.490Z Record version: sha256:8216796f34fb6f632b982b20a4a7ec5e7ba98057bb26fb5d3d9d77a01514de89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 such purchases is acceptable if both of the following conditions exist: 1. a The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") 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. 2. b The sales do not significantly affect the composition of the plan's assets available for benefits. Source downloaded (UTC): 2026-09-09T23:38:38.868Z to 2026-09-09T23:38:38.868Z Record version: sha256:c52647fd38487a9e6899357e3fa7cac0d5b4b3798d3d479498285c4d9d1a0ca6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/965/#50-disclosure) SEC content: no ##### [320-965-50-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:38.868Z to 2026-09-09T23:38:38.868Z Record version: sha256:9836c84f33f80722ab11a1891c4e36d830f15dbfcbdd0e856bf2cdf5a3bd55d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Ordinarily, information regarding the net appreciation or depreciation in the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") less costs to sell, if significant, of investments shall be disclosed in the notes to financial statements.