# ASC 323-10-40: Investments—Equity Method and Joint Ventures — Overall — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/323/10/#40-derecognition)

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## ASC 323-10-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/323/10/#40-derecognition)

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#### Investee Capital Transactions

##### [323-10-40-1](https://asc.understandingaccounting.org/asc/323/10/#323-10-40-1)

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An equity method investor shall account for a share issuance by an investee as if the investor had sold a proportionate share of its investment. Any gain or loss to the investor resulting from an investee's share issuance shall be recognized in earnings.