{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/325/30/#25-recognition","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":"325","topic_title":"Investments—Other","subtopic":"325-30","subtopic_title":"Investments in Insurance Contracts","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"325-30-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_B3F3517E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An investment in a life insurance contract shall be reported as an asset. </span></span></div></div>","snippet":"An investment in a life insurance contract shall be reported as an asset.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4426027ab5eabe57c78e81967fcc5d5f63264fc0e720fe2ea1932ac8c8475be8","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d75f4873c1271c4390faf45baac753ed0daf7cc2e568e9af9b8cc480528efcef","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}},{"block":null,"heading":"Exchange of Mutual Membership Interests for Stock in a Demutualization","paragraphs":[{"citation":"325-30-25-1A","para":"25-1A","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_B3F35374-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall recognize stock received from a demutualization and subsequently follow the guidance in Subtopics <a altsource=\"GUID-4811AE12-D9DA-4108-91FD-E9559A6B63BE.ditamap\" class=\"ditamap\">320-10</a> or <a altsource=\"GUID-364345EC-08A6-4C30-85E5-9C78C181792D.ditamap\" class=\"ditamap\">323-10</a> as applicable. </span></span></div></div>","snippet":"An entity shall recognize stock received from a demutualization and subsequently follow the guidance in Subtopics 320-10 or 323-10 as applicable.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed51bb7abc1d8a9f1d54b678df46d0b5385bc47990dec4b1af0e89c43f4d841d","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97e3dbd89e4c7403de62e2d22eaa32755049b50a02e46109a0bcd930acb6bc39","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}},{"block":"Life Settlement Contracts","heading":null,"paragraphs":[{"citation":"325-30-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_B3FC9705-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An investor shall elect to account for its investments in <a href=\"/glossary/l/#life-settlement-contract\" class=\"term\" title=\"A life settlement contract is a contract between the owner of a life insurance policy (the policy owner) and a third-party investor (investor), and has all of the following characteristics: The investor does not have an insurable interest (an interest in the survival of the insured, which is required to support the issuance of an insurance policy). The investor provides consideration to the policy owner of an amount in excess of the current cash surrender value of the life insurance policy. The contract pays the face value of the life insurance policy to an investor when the insured dies.\"><span>life settlement contracts</span></a> using either the investment method or the fair value method. </span></span><span class=\"sfragment\" id=\"sfr_B3FC980A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The election shall be made on an instrument-by-instrument basis and is irrevocable. </span></span><span class=\"sfragment\" id=\"sfr_B3FC98D2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The election shall be supported by concurrent documentation or a preexisting documented policy for automatic election. </span></span></div></div>","snippet":"An investor shall elect to account for its investments in life settlement contracts using either the investment method or the fair value method. The election shall be made on an instrument-by-instrument basis and is irre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:feeaafd9fe39d4d93b88e85645ac28ce2824eee16432866471dd5242e60ce3b3","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c13511c0b2b100181308565ba7c907b4b1a69a43bdddfcaf2e293d58f88cf83","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a539a02489d019e37006b5b0342794881d0f0ba6dd70e817f5660a44b613d01","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a539a02489d019e37006b5b0342794881d0f0ba6dd70e817f5660a44b613d01","downloaded_from":"2026-09-09T23:44:05.761Z","last_downloaded_at":"2026-09-09T23:44:05.761Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481612","source_sha256":"23892876aa2aa9fb429ac0d72d6bbc4d3a3563b6b4d6107f13e4e42198c1424d"}}