ASC

ASC 325-946

Financial Services—Investment Companies

325 Investments—Other

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In brief

IntermediateInitial measurementSubsequent measurementFair valueIndustry-specific

This subtopic tells an investment company how to account for its "other investments" (investments other than debt and equity securities). Such investments are initially measured at transaction price, including commissions and other charges that are part of the purchase transaction, and are subsequently measured at fair value. Its scope mirrors the investment company Overall Subtopic scope in Section 946-10-15.

Key points (5)
  • This Subtopic addresses an investment company's accounting for its other investments (325-946-05-1).
  • Scope follows the investment company Overall Subtopic, Section 946-10-15 (325-946-15-1).
  • Other investments are initially measured at their transaction price (325-946-30-1).
  • The transaction price includes commissions and other charges that are part of the purchase transaction (325-946-30-1).
  • Other investments are subsequently measured at fair value (325-946-35-1).

For students. Short but tested: investment companies carry essentially everything at fair value, yet the initial amount recorded is the transaction price including commissions — a common trip-up because under ASC 820 transaction costs are generally not part of fair value, so any commissions capitalized at acquisition wash out at the first fair value remeasurement.

investment companyother investmentstransaction pricefair value measurementinitial measurementsubsequent measurementcommissions and purchase charges

Machine-generated study aid for ASC 325-946. Check the source paragraphs below.

325-946-00Status

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325-946-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Fair Value (2nd def.)AddedAccounting Standards Update No. 2013-0806/07/2013
946-325-05-1AddedAccounting Standards Update No. 2013-0806/07/2013
946-325-15-1AddedAccounting Standards Update No. 2013-0806/07/2013
946-325-30-1AddedAccounting Standards Update No. 2013-0806/07/2013
946-325-35-1AddedAccounting Standards Update No. 2013-0806/07/2013

325-946-05Background

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325-946-05-1
This Subtopic addresses an investment company's accounting for its other investments.

325-946-15Scope and Scope Exceptions

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Overall Guidance

325-946-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15.

325-946-30Initial Measurement

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325-946-30-1
An investment company shall initially measure its other investments at their transaction price. The transaction price shall include commissions and other charges that are part of the purchase transaction.

325-946-35Subsequent Measurement

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325-946-35-1
An investment company shall subsequently measure its other investments at fair value.

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