# ASC 321-10-05: Investments—Equity Securities — Overall — 05 Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/321/10/#05-background)

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## ASC 321-10-05: 05 Background

[Read section](https://asc.understandingaccounting.org/asc/321/10/#05-background)

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##### [321-10-05-1](https://asc.understandingaccounting.org/asc/321/10/#321-10-05-1)

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The Codification contains several Topics for investments because of the differing accounting treatment for various forms of investment. The Topics include:

1.  a
    
    Topic 320, Investments—Debt Securities
    
2.  b
    
    Topic 321, Investments—Equity Securities
    
3.  c
    
    Topic 323, Investments—Equity Method and Joint Ventures
    
4.  d
    
    Topic 325, Investments—Other.

##### [321-10-05-2](https://asc.understandingaccounting.org/asc/321/10/#321-10-05-2)

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This topic addresses the accounting and reporting for investments in [equity securities](https://asc.understandingaccounting.org/glossary/e/#equity-security "Any security representing an ownership interest in an entity (for example, common, preferred, or other capital stock) or the right to acquire (for example, warrants, rights, forward purchase contracts, and call options) or dispose of (for example, put options and forward sale contracts) an ownership interest in an entity at fixed or determinable prices. The term equity security does not include any of the following: Written equity options (because they represent obligations of the writer, not investments) Cash-settled options on equity securities or options on equity-based indexes (because those instruments do not represent ownership interests in an entity) Convertible debt or preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor.").