# ASC 323-740-15: Investments—Equity Method and Joint Ventures — Income Taxes—Proportional Amortization Method — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/323/740/#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): 2026-09-09T23:41:11.801Z to 2026-09-09T23:41:11.801Z

Record version: sha256:c8d3832d27078a17d6e787f4475175d89460c1af64c91c1048dc189a4ab31a80

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 323-740-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/323/740/#15-scope-and-scope-exceptions)

SEC content: no

### Proportional Amortization Method

#### Overall Guidance

##### [323-740-15-1](https://asc.understandingaccounting.org/asc/323/740/#323-740-15-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:41:11.801Z to 2026-09-09T23:41:11.801Z

Record version: sha256:2b0027aaf2ee9a5acdcb605c0804db9ac5f1ca5afb87f16a9d0685c2c4dd9f9e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 323-10-15, with specific transaction qualifications and disclosure requirements noted in paragraph [323-740-15-1A](https://asc.understandingaccounting.org/asc/323/740/#323-740-15-1A).

##### [323-740-15-1A](https://asc.understandingaccounting.org/asc/323/740/#323-740-15-1A)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:41:11.801Z to 2026-09-09T23:41:11.801Z

Record version: sha256:9aa23319bee8f49c37652033fada540515de9aee2de3ece1ddfe566fb6e5d288

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in the Proportional Amortization Method Subtopic applies to equity investments that generate income tax credits and other income tax benefits from a tax credit program through limited liability entities that are flow-through entities for tax purposes, meet the criteria to be accounted for using the proportional amortization method in this Subtopic, and for which that method is elected on a tax-credit-program-by-tax-credit-program basis in accordance with paragraph [323-740-25-4](https://asc.understandingaccounting.org/asc/323/740/#323-740-25-4). Additionally, the disclosure requirements in paragraphs

[323-740-50-1 through 50-2](https://asc.understandingaccounting.org/asc/323/740/#323-740-50-1)

shall be applied to all investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method, including investments within that elected program that do not meet the conditions to apply the proportional amortization method.

##### [323-740-15-2](https://asc.understandingaccounting.org/asc/323/740/#323-740-15-2)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:41:11.801Z to 2026-09-09T23:41:11.801Z

Record version: sha256:492bed3ceb88183c4b18ef26e0fc1af9a5f4a1dde5a02edeedcb48052ae61d11

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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

##### [323-740-15-3](https://asc.understandingaccounting.org/asc/323/740/#323-740-15-3)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:41:11.801Z to 2026-09-09T23:41:11.801Z

Record version: sha256:b59c83985fda3914e27926b5724e702904669810dbebaa106420a06bd1c95cf2

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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