# ASC 325-942: Investments—Other — Financial Services—Depository and Lending Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/325/942/) 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): 2026-09-09T23:45:52.117Z to 2026-09-09T23:46:08.804Z Record version: sha256:138eada40087156cd5c091d698191997f32be5af0424236f88c71ac7a2124bcd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942: Investments—Other — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "summary": "This Subtopic gives depository and lending institutions the recognition and measurement rules for four narrow items: Federal Home Loan Bank (FHLB) and Federal Reserve Bank stock, National Credit Union Share Insurance Fund (NCUSIF) deposits and premiums, regular-way securities trades, and exchange memberships. FHLB/Federal Reserve Bank stock is a restricted investment security carried at cost (no readily determinable fair value; redeemable only at $100 par) and tested for impairment based on ultimate recoverability of par, not temporary declines. NCUSIF deposits are assets only so long as they are fully refundable, and regular-way purchases and sales are recorded on the trade date.", "key_points": [ "Federal Home Loan Bank and Federal Reserve Bank stock shall be classified as a restricted investment security (325-942-25-1), carried at cost and evaluated for impairment under 942-325-35-3 (325-942-35-1).", "Because FHLB/Federal Reserve Bank stock is redeemable only at its $100 par value and only to the Banks or another member institution, it lacks a readily determinable fair value (325-942-05-2), and it shall not be shown with securities accounted for under Topic 321 (325-942-45-1).", "Impairment of FHLB stock is assessed on ultimate recoverability of par value rather than temporary declines, considering the decline in the Banks' net assets versus capital stock, required legal/regulatory payment commitments, legislative and regulatory changes affecting the customer base, and the Banks' liquidity position (325-942-35-3).", "Both cash and stock dividends received on FHLB stock shall be reported as income (325-942-35-2).", "Regular-way purchases and sales of securities shall be recorded on the trade date, with gains and losses recognized in the statement of operations as of the trade date (325-942-25-2; see 815-10-15-15).", "For credit unions, NCUSIF deposits are reported as assets only as long as fully refundable (325-942-25-3); refundability is reviewed for impairment considering the financial condition of both the credit union and the Fund, and nonrefundable amounts are charged to expense (325-942-35-4(a)).", "NCUSIF equity distributions (premium waivers, rebates, or cash) are reported in income in the period it is determined a distribution will be made, and non-waived premiums are expensed in the period to which they relate, or when assessed if levied to cover prior operating losses or restore normal operating levels (325-942-35-4(b)-(c))." ], "categories": [ "Recognition", "Subsequent measurement", "Impairment", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The classic trap is treating FHLB or Federal Reserve Bank stock like an ordinary equity security under Topic 321 — it is not; it stays at cost, is presented separately, and impairment turns solely on whether par will ultimately be recovered, so ordinary fair value declines are ignored. Similarly, NCUSIF deposits are assets only while fully refundable, not automatically.", "related_topics": [ "942-325", "940-340", "321", "815", "505", "852" ], "key_concepts": [ "federal home loan bank stock", "restricted investment security", "cost method carrying amount", "ultimate recoverability of par value", "trade-date accounting", "regular-way security trades", "ncusif deposits and premiums", "exchange memberships" ] } ``` Source downloaded (UTC): 2026-09-09T23:45:52.117Z to 2026-09-09T23:45:52.117Z Record version: sha256:e9dae6ad9e2571f5230a2012223fbd7b6ca33b10d2722e51a51fe7949a7efcf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/942/#00-status) SEC content: no ##### [325-942-00-1](https://asc.understandingaccounting.org/asc/325/942/#325-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:52.117Z to 2026-09-09T23:45:52.117Z Record version: sha256:75373686e5b0743feb0e1a5e0c1f3bad45e1e562f8efc0b443c0920417a5759a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
942-325-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
942-325-05-2AmendedAccounting Standards Update No. 2016-0101/05/2016
942-325-05-2AmendedAccounting Standards Update No. 2012-0410/01/2012
942-325-25-4AddedAccounting Standards Update No. 2016-0101/05/2016
942-325-30-1AddedAccounting Standards Update No. 2016-0101/05/2016
942-325-35-1AmendedAccounting Standards Update No. 2016-0101/05/2016
942-325-35-5AddedAccounting Standards Update No. 2016-0101/05/2016
942-325-45-1AmendedAccounting Standards Update No. 2016-0101/05/2016
Source downloaded (UTC): 2026-09-09T23:45:54.196Z to 2026-09-09T23:45:54.196Z Record version: sha256:11ef8744104aec33323f5932f6cfb81764ad76ec283523410f729f441c1a1303 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/942/#05-overview-and-background) SEC content: no ##### [325-942-05-1](https://asc.understandingaccounting.org/asc/325/942/#325-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:54.196Z to 2026-09-09T23:45:54.196Z Record version: sha256:807b7139acaf5cef86e8dfefb54a014545b7e46a2df1b0f6552caff87772b64c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides recognition and measurement guidance concerning Federal Home Loan Bank or Federal Reserve Bank stock, National Credit Union Share Insurance Fund deposits and premiums, regular-way securities, and exchange memberships. ##### [325-942-05-2](https://asc.understandingaccounting.org/asc/325/942/#325-942-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:54.196Z to 2026-09-09T23:45:54.196Z Record version: sha256:6838ceb51b9ba744ad4626cdee066bca743ae83db510379d72009f648062addc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although Federal Home Loan Bank (or Federal Reserve Bank) stock is an equity interest in a Federal Home Loan Bank (or Federal Reserve Bank), it does not have a readily determinable fair value because its ownership is restricted and it lacks a market. Federal Home Loan Bank (or Federal Reserve Bank) stock can be sold back only at its par value of $100 per share and only to the Federal Home Loan Banks (or Federal Reserve Banks) or to another member institution. In addition, the equity ownership rights represented by Federal Home Loan Bank stock are more limited than would be the case for a public company, because of the oversight role exercised by regulators in the process of budgeting and approving dividends. Source downloaded (UTC): 2026-09-09T23:45:56.068Z to 2026-09-09T23:45:56.068Z Record version: sha256:bbe79dbe42540c028f2c4bd5fd7015db534158c1f4742ad81c16f008b8def4d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-942-15-1](https://asc.understandingaccounting.org/asc/325/942/#325-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:56.068Z to 2026-09-09T23:45:56.068Z Record version: sha256:c2253c18de0a8d4e76230e7f26d4a3fff14c39e9f8f45c84d1c8117c53844747 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 942-10-15. Source downloaded (UTC): 2026-09-09T23:45:59.013Z to 2026-09-09T23:45:59.013Z Record version: sha256:8993a02e81c55525d451aa666faeeb1182d70dd30ef270dc8a4acec8895c27fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/942/#25-recognition) SEC content: no #### Federal Home Loan Bank or Federal Reserve Bank Stock ##### [325-942-25-1](https://asc.understandingaccounting.org/asc/325/942/#325-942-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:59.013Z to 2026-09-09T23:45:59.013Z Record version: sha256:9c36d89f807015580cab155d076cc03d1d1efa242706cf18167e6f6b8992f9c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Federal Home Loan Bank and Federal Reserve Bank stock shall be classified as a restricted investment security. #### Regular-Way Securities ##### [325-942-25-2](https://asc.understandingaccounting.org/asc/325/942/#325-942-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:59.013Z to 2026-09-09T23:45:59.013Z Record version: sha256:b63f27adea48ad9be2a16913c0d5adbb6edd3f89d4699a913d0f343f2b665bcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regular-way purchases and sales of securities shall be recorded on the trade date. Gains and losses from regular-way security sales or disposals shall be recognized as of the trade date in the statement of operations for the period in which securities are sold or otherwise disposed of. See paragraph [815-10-15-15](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-15) for a definition of regular-way security trades. #### National Credit Union Share Insurance Fund Deposits ##### [325-942-25-3](https://asc.understandingaccounting.org/asc/325/942/#325-942-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:59.013Z to 2026-09-09T23:45:59.013Z Record version: sha256:b4a261849e8bbcda55aaa63f11829fd32b2aee73e75dc48e2b4e1bdd445c20d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For credit unions and corporate credit unions, amounts deposited with the National Credit Union Share Insurance Fund shall be accounted for and reported as assets as long as such amounts are fully refundable. #### Exchange Memberships ##### [325-942-25-4](https://asc.understandingaccounting.org/asc/325/942/#325-942-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:59.013Z to 2026-09-09T23:45:59.013Z Record version: sha256:80a35f5b7bd601b7de4f04adb524d4cef0686d11eb307d373a070f4d5176973c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 940-340-25 provides guidance for recognition of exchange memberships. Source downloaded (UTC): 2026-09-09T23:46:01.525Z to 2026-09-09T23:46:01.525Z Record version: sha256:495f46f317b58b0afc50cbcf103f020b130794ef42e4665238fbc03720775dd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/942/#30-initial-measurement) SEC content: no #### Exchange Memberships ##### [325-942-30-1](https://asc.understandingaccounting.org/asc/325/942/#325-942-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:01.525Z to 2026-09-09T23:46:01.525Z Record version: sha256:9e8c22a05df4b6b7630242456829d9da2d1366ddd539dca4566a8a0cbe5aa02f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 940-340-30 provides guidance for initial measurement of exchange memberships. Source downloaded (UTC): 2026-09-09T23:46:03.417Z to 2026-09-09T23:46:03.417Z Record version: sha256:bbf98081175c34cefe5bdec8f68e2beb56fa39b3cf34915022aae1f47c9d7b4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/942/#35-subsequent-measurement) SEC content: no #### Federal Home Loan Bank or Federal Reserve Bank Stock ##### [325-942-35-1](https://asc.understandingaccounting.org/asc/325/942/#325-942-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:03.417Z to 2026-09-09T23:46:03.417Z Record version: sha256:0a00485779aa7e2e19a06d3b194360b558a873252851f66880ff7679774f2181 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Federal Home Loan Bank and Federal Reserve Bank stock shall be carried at cost and evaluated for impairment in accordance with paragraph [942-325-35-3](https://asc.understandingaccounting.org/asc/325/942/#325-942-35-3). ##### [325-942-35-2](https://asc.understandingaccounting.org/asc/325/942/#325-942-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:03.417Z to 2026-09-09T23:46:03.417Z Record version: sha256:44223639f5f94c6c5ab4cdf35d99a236183a3c20db08d905f918cd4bcef3fd6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both cash and stock dividends received on Federal Home Loan Bank stock shall be reported as income. See Topics 505 and 852 for guidance concerning stock splits. ##### [325-942-35-3](https://asc.understandingaccounting.org/asc/325/942/#325-942-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:03.417Z to 2026-09-09T23:46:03.417Z Record version: sha256:4cb0d6b2b519f2f29f649ff62ec3d33503f2502c3d7851322059ef8b3f1166c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Federal Home Loan Bank stock is generally viewed as a long-term investment. Accordingly, when evaluating Federal Home Loan Bank stock for impairment, its value shall be determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The determination of whether the decline affects the ultimate recoverability is influenced by criteria such as the following: 1. a The significance of the decline in net assets of the Federal Home Loan Banks as compared to the capital stock amount for the Federal Home Loan Banks and the length of time this situation has persisted 2. b Commitments by the Federal Home Loan Banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the Federal Home Loan Banks 3. c The impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the Federal Home Loan Banks 4. d The liquidity position of the Federal Home Loan Banks. #### National Credit Union Share Insurance Fund Deposits and Premiums ##### [325-942-35-4](https://asc.understandingaccounting.org/asc/325/942/#325-942-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:03.417Z to 2026-09-09T23:46:03.417Z Record version: sha256:903544d4089640bfa0d479331ff3c3e8da29f591e69de3df13d9a9b32822aff1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Credit unions and corporate credit unions are subject to all of the following recognition and measurement provisions: 1. a The refundability of National Credit Union Share Insurance Fund deposits shall be reviewed for impairment. When the refundability of a deposit is evaluated, the financial condition of both the credit union and of the National Credit Union Share Insurance Fund shall be considered. Deposits may be returned to solvent credit unions for a number of reasons, including termination of insurance coverage, conversion to insurance coverage from another source, or transfer of operations of the insurance fund from the National Credit Union Administration Board. However, insolvent or bankrupt credit unions shall not be entitled to a return of their deposits. To the extent that National Credit Union Share Insurance Fund deposits are not refundable, they shall be charged to expense in the period in which the deposits are made or the assets become impaired. 2. b In years in which the equity of the National Credit Union Share Insurance Fund exceeds normal operating levels, the National Credit Union Administration is required to make distributions to insured credit unions to reduce the equity of the National Credit Union Share Insurance Fund to normal operating levels. Such distributions may be in the form of a waiver of insurance premiums, premium rebates, or cash payments. Distributions in connection with that reduction in the equity of the National Credit Union Share Insurance Fund shall be reported in the income statement in the period in which it is determined that a distribution will be made. 3. c The system of savings account insurance established by the recapitalization of the National Credit Union Share Insurance Fund, which provided for reserves of 1 percent of insured deposits, is based on the concept that the required deposits create a fund with an earning potential sufficient to provide for the risk of losses in the credit union system. In years in which the earnings of the fund have been adequate to provide insurance protection and cover all expenses and losses incurred by the fund, the National Credit Union Administration Board has elected to waive the insurance premiums due from insured credit unions. In those years, it has been industry practice to net imputed earnings on the insurance deposits against imputed premium expense rather than present them as gross amounts on the statement of income. In years in which the insurance premiums are not waived by the National Credit Union Administration, the premiums shall be expensed in the period to which they relate. To the extent that the National Credit Union Administration assesses premiums to cover prior operating losses of the insurance fund or to increase the fund balance to normal operating levels, credit unions shall expense those premiums when assessed. #### Exchange Memberships ##### [325-942-35-5](https://asc.understandingaccounting.org/asc/325/942/#325-942-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:03.417Z to 2026-09-09T23:46:03.417Z Record version: sha256:392a6023e6b4620dec63ca12c65f965e1d4bd56118192f70358c76f36029c2bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 940-340-35 provides guidance for subsequent measurement of exchange memberships. Source downloaded (UTC): 2026-09-09T23:46:05.918Z to 2026-09-09T23:46:05.918Z Record version: sha256:338c7653b9d5805bd6bf91ce554aa6e282e45eca38043a1d2461c83bb26d76ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-942-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/942/#45-other-presentation-matters) SEC content: no #### Federal Home Loan Bank or Federal Reserve Bank Stock ##### [325-942-45-1](https://asc.understandingaccounting.org/asc/325/942/#325-942-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:05.918Z to 2026-09-09T23:46:05.918Z Record version: sha256:ea6c806d1b8784f47519a9d62b9a71417b73a54d022cc2c16443a408a1f102cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in Federal Home Loan Bank or Federal Reserve Bank stock shall not be shown with securities accounted for under Topic 321.