{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/323/740/#45-other-presentation-matters","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":"323","topic_title":"Investments—Equity Method and Joint Ventures","subtopic":"323-740","subtopic_title":"Income Taxes—Proportional Amortization Method","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Proportional Amortization Method","heading":null,"paragraphs":[{"citation":"323-740-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This guidance addresses the income statement presentation of an investment <span class=\"sfragment\" id=\"sfragment_nbj_l2g_vwb\"><span class=\"sfragment-source\">that is </span></span><span class=\"sfragment\" id=\"sfragment_cty_4hy_5wb\"><span class=\"sfragment-source\">accounted for using the proportional amortization method.</span></span></div></div>","snippet":"This guidance addresses the income statement presentation of an investment that is accounted for using the proportional amortization method.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0be57cbe5066f3111d021107f5db5f9007948d503457477e831e601422a3d265","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}},{"citation":"323-740-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_B22CEBD3-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Under the proportional amortization method, the amortization of the investment in the limited liability entity is recognized in the income statement as a component of <a href=\"/glossary/i/#income-tax-expense-or-benefit\" class=\"term\" title=\"The sum of current tax expense (or benefit) and deferred tax expense (or benefit).\"><span>income tax expense (or benefit)</span></a>. The <a href=\"/glossary/c/#current-tax-expense-or-benefit\" class=\"term\" title=\"The amount of income taxes paid or payable (or refundable) for a year as determined by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues for that year.\"><span>current tax expense (or benefit)</span></a> shall be accounted for pursuant to the general requirements of Topic <a altsource=\"GUID-536ACE12-AE3B-4036-B02C-E0B2A90A3E70.ditamap\" class=\"ditamap\">740</a>.</span></span></div></div>","snippet":"Under the proportional amortization method, the amortization of the investment in the limited liability entity is recognized in the income statement as a component of income tax expense (or benefit). The current tax expe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c0fc2f1466485eee61662d59dd9203eca9eee460d2301f0ef882ca147da1868","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}},{"citation":"323-740-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">Example 1 (see paragraph <a href=\"/asc/323/740/#323-740-55-2\" class=\"xref\">323-740-55-2</a>) illustrates the application of <span class=\"sfragment\" id=\"sfragment_rlz_jny_5wb\"><span class=\"sfragment-source\">the proportional amortization method </span></span>to a limited partnership investment <span class=\"sfragment\" id=\"sfragment_hr3_4ny_5wb\"><span class=\"sfragment-source\">that generates income tax credits and other income tax benefits from a tax credit program. Example 2 (see paragraph <a href=\"/asc/323/740/#323-740-55-11\" class=\"xref\">323-740-55-11</a>) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits, other income tax benefits, and non-income-tax-related benefits from a tax credit program.</span></span></div></div>","snippet":"Example 1 (see paragraph 323-740-55-2) illustrates the application of the proportional amortization method to a limited partnership investment that generates income tax credits and other income tax benefits from a tax cr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e28b064e32f61f89a3fcd0bd153fd690bea7fea5cff6617c9e2c691ca83f76f4","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c596872b059a90df8b1775aece8c07051c6e85099c6589649d8a6d558ed357e6","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa3c56486247aa0db5c48ba402f3ed13c4d4c1e74a112bf5c7852bc0714851a9","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa3c56486247aa0db5c48ba402f3ed13c4d4c1e74a112bf5c7852bc0714851a9","downloaded_from":"2026-09-09T23:41:25.607Z","last_downloaded_at":"2026-09-09T23:41:25.607Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477906","source_sha256":"f88a95ca0c66428cb2c9a0a572298a4bc19ebb0f55c6c82220f63e8ad1f6af27"}}