# ASC 321-10-15: Investments—Equity Securities — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/321/10/#15-scope-and-scope-exceptions) 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): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:7c111821b086b7f2c169a4cd38c7844061594d32d7125cec40d1d4214e0877ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 321-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/321/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [321-10-15-1](https://asc.understandingaccounting.org/asc/321/10/#321-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:5910d5b3763a0b7d58f52f28ff40dd0714d2965fe162747d14c862c125fe3b75 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—Equity Securities Topic. #### Entities ##### [321-10-15-2](https://asc.understandingaccounting.org/asc/321/10/#321-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:3d8fcb570913127d81e1c16a9742ef9c598d801f56501d0d90533bb45bde74c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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.") 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."). ##### [321-10-15-3](https://asc.understandingaccounting.org/asc/321/10/#321-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:1c51181d7a7275244df00567744586742bbb4b16cb84396e403dadc8f8989362 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). #### Instruments ##### [321-10-15-4](https://asc.understandingaccounting.org/asc/321/10/#321-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:3f092cce8398f8a8b95a4153e92af7e2eb2f147c19e96945bdc0b8e1593cb1e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Investments—Equity Securities Topic establishes standards of financial 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.") 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. ##### [321-10-15-5](https://asc.understandingaccounting.org/asc/321/10/#321-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:a3480e539bebe85e8494367e52aa7d09faf89b4400db22aa49d05f142d0750e6 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 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)](https://asc.understandingaccounting.org/asc/340/940/#340-940-25-1) for an ownership interest in the exchange. 5. e Federal Home Loan Bank and Federal Reserve Bank Stock (Subtopic 942-325). ##### [321-10-15-6](https://asc.understandingaccounting.org/asc/321/10/#321-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:48a3d6f1c0d1279de1c88a126f483c0e70b1d2e71bdaf75efb9ecc7e3da4e0cd 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 Topic 321. Paragraph [815-10-15-141A](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-141A) provides guidance on applying the guidance in paragraph [815-10-15-141](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-141) to forward contracts and purchased options to purchase securities within the scope of Topic 321. ##### [321-10-15-7](https://asc.understandingaccounting.org/asc/321/10/#321-10-15-7) Pending content: yes Source downloaded (UTC): 2026-09-09T23:38:49.756Z to 2026-09-09T23:38:49.756Z Record version: sha256:ae8adc374ab03a40979637e42335efb27b59c4df4775a5cc35ecb1eb79bccbd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [606-10-65-3](https://asc.understandingaccounting.org/asc/606/10/#606-10-65-3)An 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](https://asc.understandingaccounting.org/asc/606/10/#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](https://asc.understandingaccounting.org/asc/610/20/#610-20-15-3A).