{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/321/10/#15-scope-and-scope-exceptions","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"321","topic_title":"Investments—Equity Securities","subtopic":"321-10","subtopic_title":"Overall","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"321-10-15-1","para":"15-1","html":"
The Scope Section of the Overall Subtopic establishes the scope for the Investments—Equity Securities Topic.
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The guidance in the Investments—Equity Securities Topic applies to all entities, including the following entities that are not deemed to be 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 securities at fair value.
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The guidance in this Topic does not apply to entities in certain specialized industries whose specialized accounting practices include accounting for substantially all investments at fair value, with changes in value recognized in earnings (income) or in the change in net assets. Examples of those entities are:
  1. a
    Brokers and dealers in securities (Topic 940)
  2. b
    Defined benefit pension, other postretirement, and health and welfare plans (Topics 960, 962, and 965)
  3. c
    Investment companies (Topic 946).
","snippet":"The guidance in this Topic does not apply to entities in certain specialized industries whose specialized accounting practices include accounting for substantially all investments at fair value, with changes in value rec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c51181d7a7275244df00567744586742bbb4b16cb84396e403dadc8f8989362","downloaded_from":"2026-09-09T23:38:49.756Z","last_downloaded_at":"2026-09-09T23:38:49.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479714","source_sha256":"2928fb6c132080a690fbe63c7ed53dfc78997248346d32a23883090435826801"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c04d06cc749a8e8c9368e987e86a514d6c3602fabe693f6df179f54d0f928a1a","downloaded_from":"2026-09-09T23:38:49.756Z","last_downloaded_at":"2026-09-09T23:38:49.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479714","source_sha256":"2928fb6c132080a690fbe63c7ed53dfc78997248346d32a23883090435826801"}},{"block":null,"heading":"Instruments","paragraphs":[{"citation":"321-10-15-4","para":"15-4","html":"
The guidance in the Investments—Equity Securities Topic establishes standards of financial accounting and reporting for investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures, and limited liability companies as if those other ownership interests are equity securities.
","snippet":"The guidance in the Investments—Equity Securities Topic establishes standards of financial accounting and reporting for investments in equity securities and other ownership interests in an entity, including investments i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f092cce8398f8a8b95a4153e92af7e2eb2f147c19e96945bdc0b8e1593cb1e1","downloaded_from":"2026-09-09T23:38:49.756Z","last_downloaded_at":"2026-09-09T23:38:49.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479714","source_sha256":"2928fb6c132080a690fbe63c7ed53dfc78997248346d32a23883090435826801"}},{"citation":"321-10-15-5","para":"15-5","html":"
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 otherwise would 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
    Investments accounted for under the equity method (Topic 323).
  3. c
    Investments in consolidated subsidiaries.
  4. d
    An exchange membership that has the characteristics specified in paragraph 940-340-25-1(b) for an ownership interest in the exchange.
  5. e
    Federal Home Loan Bank and Federal Reserve Bank Stock (Subtopic 942-325).
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Paragraph 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 Topic 321. Paragraph 815-10-15-141A provides guidance on applying the guidance in paragraph 815-10-15-141 to forward contracts and purchased options to purchase securities within the scope of Topic 321.
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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
606-10-65-3An entity shall not apply the guidance in this Topic to share-based noncash consideration from a customer for the transfer of goods or services unless and until the entity’s right to receive or retain the share-based noncash consideration is unconditional under Topic 606 in accordance with paragraph 606-10-15-3A. Similarly, an entity shall not apply the guidance in this Topic to share-based noncash consideration from a counterparty for the transfer of nonfinancial assets or in substance nonfinancial assets unless and until the entity’s right to receive or retain the share-based noncash consideration is unconditional under Subtopic 610-20 in accordance with paragraph 610-20-15-3A.
","snippet":"Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:606-10-65-3An entity shall not apply the guidance in this Topic to share-based noncash consideration from a customer for the transfer of goo…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae8adc374ab03a40979637e42335efb27b59c4df4775a5cc35ecb1eb79bccbd9","downloaded_from":"2026-09-09T23:38:49.756Z","last_downloaded_at":"2026-09-09T23:38:49.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479714","source_sha256":"2928fb6c132080a690fbe63c7ed53dfc78997248346d32a23883090435826801"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c311a0bc5da1e1aaf0cecfd5880c1f46eacdcaa1528ce8304641f0deddbd1dcb","downloaded_from":"2026-09-09T23:38:49.756Z","last_downloaded_at":"2026-09-09T23:38:49.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479714","source_sha256":"2928fb6c132080a690fbe63c7ed53dfc78997248346d32a23883090435826801"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c111821b086b7f2c169a4cd38c7844061594d32d7125cec40d1d4214e0877ea","downloaded_from":"2026-09-09T23:38:49.756Z","last_downloaded_at":"2026-09-09T23:38:49.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479714","source_sha256":"2928fb6c132080a690fbe63c7ed53dfc78997248346d32a23883090435826801"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c111821b086b7f2c169a4cd38c7844061594d32d7125cec40d1d4214e0877ea","downloaded_from":"2026-09-09T23:38:49.756Z","last_downloaded_at":"2026-09-09T23:38:49.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479714","source_sha256":"2928fb6c132080a690fbe63c7ed53dfc78997248346d32a23883090435826801"}}