# ASC 323-740-05: Investments—Equity Method and Joint Ventures — Income Taxes—Proportional Amortization Method — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 323-740-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/323/740/#05-overview-and-background)

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### Proportional Amortization Method

##### [323-740-05-1](https://asc.understandingaccounting.org/asc/323/740/#323-740-05-1)

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This Subtopic contains standalone guidance on the use of the proportional amortization method to investments made primarily for the purpose of receiving income tax credits and other income tax benefits. Income tax accounting guidance on other types of equity method investments and joint ventures is contained in Subtopics 740-10 and 740-30.

##### [323-740-05-2](https://asc.understandingaccounting.org/asc/323/740/#323-740-05-2)

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[Paragraph superseded by Accounting Standards Update No. 2023-02.](https://asc.understandingaccounting.org/updates/asu-2023-02/)

##### [323-740-05-3](https://asc.understandingaccounting.org/asc/323/740/#323-740-05-3)

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[Paragraph superseded by Accounting Standards Update No. 2023-02.](https://asc.understandingaccounting.org/updates/asu-2023-02/)