ASC

ASC 325-10

Overall

325 Investments—Other

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In brief

IntroductoryFinancial instrumentsRecognitionSubsequent measurement

ASC 325-10 is the Overall subtopic of Investments—Other, the residual investments Topic in the Codification. It mainly serves as a roadmap: it explains that investment accounting is split across Topics 320 (debt securities), 321 (equity securities), 323 (equity method and joint ventures), and 325 (other investments), and it lists the Subtopics within Topic 325 — Overall, Investments in Insurance Contracts (325-30), and Beneficial Interests in Securitized Financial Assets (325-40). It contains no substantive recognition or measurement guidance of its own.

Key points (5)
  • The Codification splits investment guidance across multiple Topics because of differing accounting treatment by form of investment: Topic 320 (debt securities), Topic 321 (equity securities), Topic 323 (equity method and joint ventures), and Topic 325 (other) (325-10-05-1).
  • Topic 325, Investments—Other, comprises the Overall Subtopic, Investments in Insurance Contracts, and Beneficial Interests in Securitized Financial Assets (325-10-05-2).
  • The former Subtopic on cost method investments listed in 325-10-05-2(b) was superseded by ASU 2016-01, which moved equity investment measurement into Topic 321.
  • The Overall Subtopic's relationships guidance at 325-10-60-1 was likewise superseded by ASU 2016-01, leaving 325-10 with background/roadmap content only.
  • Because Topic 325 is residual, an investment should first be evaluated under Topics 320, 321, and 323 before applying Topic 325 guidance.

For students. Treat 325-10 as a navigation aid, not a source of rules: nothing here tells you how to measure anything. The most common mistake is citing Topic 325 for equity investments without a readily determinable fair value — ASU 2016-01 eliminated the cost method Subtopic and moved that guidance to Topic 321.

investments—otherresidual investment guidancedebt securitiesequity securitiesequity methodinsurance contractsbeneficial interests in securitized financial assetscost method superseded

Machine-generated study aid for ASC 325-10. Check the source paragraphs below.

325-10-00Status

Source downloaded: .Record version bab09af34fc5. Effective date must be checked in the source.

325-10-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
325-10-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
325-10-05-2AmendedAccounting Standards Update No. 2016-0101/05/2016
325-10-60-1SupersededAccounting Standards Update No. 2016-0101/05/2016

325-10-05Overview and Background

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325-10-05-1
The Codification contains several Topics for investments due to the differing accounting treatment for various forms of investment. The Topics include:
  1. a
    Topic 320, Investments—Debt Securities
  2. aa
    Topic 321, Investments—Equity Securities
  3. b
    Topic 323, Investments—Equity Method and Joint Ventures
  4. c
    Topic 325, Investments—Other.
325-10-05-2
The Investments—Other Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
  3. c
    Investments in Insurance Contracts
  4. d
    Beneficial Interests in Securitized Financial Assets.

325-10-60Relationships

Source downloaded: .Record version 40eea0612d34. Effective date must be checked in the source.

Related subtopics