{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/321/10/#40-derecognition","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"321","topic_title":"Investments—Equity Securities","subtopic":"321-10","subtopic_title":"Overall","section":{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Accounting for Sales of Securities","paragraphs":[{"citation":"321-10-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_ABD32697-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section <a altsource=\"GUID-2B788674-9D0A-432B-A59D-B1470F2DC999.ditamap\" class=\"ditamap\">860-10-40</a> provides guidance on determining whether a transfer of <a href=\"/glossary/s/#security\" class=\"term\" title=\"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.\"><span>securities</span></a> shall be accounted for as a sale. With respect to <a href=\"/glossary/e/#equity-security\" class=\"term\" title=\"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.\"><span>equity securities</span></a>, because all changes in an equity security's <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>fair value</span></a> are reported in earnings as they occur, the sale of an equity 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. An entity that has not yet recorded the security's change in fair value to the point of sale (perhaps because fair value changes are recorded at the end of each day) will need to adjust this procedure.</span></span></div></div>","snippet":"Section 860-10-40 provides guidance on determining whether a transfer of securities shall be accounted for as a sale. With respect to equity securities, because all changes in an equity security's fair value are reported…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ef5658b7e8272323d7ab77134b0b83aedc727771e232215c7059599b119dfbf","downloaded_from":"2026-09-09T23:39:04.642Z","last_downloaded_at":"2026-09-09T23:39:04.642Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479598","source_sha256":"b614630558cb9c16d9728b5adcef09f8d9121c42fdb4e76c210516abe4cdd513"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b425fbc7b4a953935cdc25fb9c0394dfe707a46e03009eda92041e111fbf40f","downloaded_from":"2026-09-09T23:39:04.642Z","last_downloaded_at":"2026-09-09T23:39:04.642Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479598","source_sha256":"b614630558cb9c16d9728b5adcef09f8d9121c42fdb4e76c210516abe4cdd513"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23edbea5ddfb57b93fcc8d7be2fe7e2abcba3012c0c069b599a84dccfc907012","downloaded_from":"2026-09-09T23:39:04.642Z","last_downloaded_at":"2026-09-09T23:39:04.642Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479598","source_sha256":"b614630558cb9c16d9728b5adcef09f8d9121c42fdb4e76c210516abe4cdd513"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23edbea5ddfb57b93fcc8d7be2fe7e2abcba3012c0c069b599a84dccfc907012","downloaded_from":"2026-09-09T23:39:04.642Z","last_downloaded_at":"2026-09-09T23:39:04.642Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479598","source_sha256":"b614630558cb9c16d9728b5adcef09f8d9121c42fdb4e76c210516abe4cdd513"}}