# ASC Topic 325: Investments—Other Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/325/) 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): 2026-09-09T23:43:19.294Z to 2026-09-09T23:48:56.941Z Record version: sha256:857199f6264e175ec639f43a5af5575d8791d5fb870709be619b223f8ce10d5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 325, Investments—Other, is the residual investments Topic: an investment is first tested against Topic 320 (debt securities), Topic 321 (equity securities), and Topic 323 (equity method/joint ventures), and only what is left falls into Topic 325 (325-10-05-1). Its two substantive general Subtopics are 325-30 (life insurance contracts, carried at "the amount that could be realized under the insurance contract," and life settlement contracts under an irrevocable investment-method or fair-value-method election) and 325-40 (beneficial interests in securitized financial assets, where accretable yield is accreted into interest income by the effective yield method and cash-flow changes run first through the Topic 326 credit loss model). The remaining Subtopics are industry glosses—broker-dealers (325-940, fair value), investment companies (325-946, transaction price then fair value), agricultural cooperatives (325-905, cost), depository institutions (325-942, FHLB/Federal Reserve stock at cost as a restricted security), health care and not-for-profit entities (325-954, 325-958), and employee benefit plans (325-960, 962-325, 325-965, generally fair value with contract-value and ERISA-reporting exceptions). The key takeaway is that Topic 325 collects measurement rules for investments that do not fit the securities Topics, and that ASU 2016-01 gutted its former cost-method content (325-20 and 325-944 are now empty shells superseded into ASC 321). Source downloaded (UTC): 2026-09-09T23:43:19.294Z to 2026-09-09T23:43:24.138Z Record version: sha256:a95f3ad4d38cbf54a2abf67fd63d072a4b8a30ac758b6a4037885263fe54c745 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-10: Investments—Other — Overall ### Machine-generated study aids ```json { "summary": "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": [ "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." ], "categories": [ "Financial instruments", "Recognition", "Subsequent measurement" ], "audience_level": "introductory", "student_note": "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.", "related_topics": [ "320", "321", "323", "325-30", "325-40", "820" ], "key_concepts": [ "investments—other", "residual investment guidance", "debt securities", "equity securities", "equity method", "insurance contracts", "beneficial interests in securitized financial assets", "cost method superseded" ] } ``` Source downloaded (UTC): 2026-09-09T23:43:19.294Z to 2026-09-09T23:43:19.294Z Record version: sha256:bab09af34fc586de10914ff9b1364540bc9e5ac098f4b32e505a3285d9996f5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/10/#00-status) SEC content: no ##### [325-10-00-1](https://asc.understandingaccounting.org/asc/325/10/#325-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:19.294Z to 2026-09-09T23:43:19.294Z Record version: sha256:d627bad8299ad891c8c4dcdb88f6730b14f94b77d1c7f2a8897b3a1b4cdd13ba 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
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
Source downloaded (UTC): 2026-09-09T23:43:21.389Z to 2026-09-09T23:43:21.389Z Record version: sha256:7404d4d15496e97e5c2d4c3060d906c9926959ef9022601bbb2b3cbc32ce7a81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/10/#05-overview-and-background) SEC content: no ##### [325-10-05-1](https://asc.understandingaccounting.org/asc/325/10/#325-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:21.389Z to 2026-09-09T23:43:21.389Z Record version: sha256:223a0e97ca807f238dbcbb5738e6f9d797d7d518e92cfcc5802112fd44c7e68b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/325/10/#325-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:21.389Z to 2026-09-09T23:43:21.389Z Record version: sha256:0c01c1265887ee32182de2446602e1b067da647098c478a2c38385b64f0a3edd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Investments—Other Topic includes the following Subtopics: 1. a Overall 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. c Investments in Insurance Contracts 4. d Beneficial Interests in Securitized Financial Assets. Source downloaded (UTC): 2026-09-09T23:43:24.138Z to 2026-09-09T23:43:24.138Z Record version: sha256:40eea0612d343cbadad3477951936f0d42bc644961078165468190ba52182df5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/325/10/#60-relationships) SEC content: no ##### [325-10-60-1](https://asc.understandingaccounting.org/asc/325/10/#325-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:24.138Z to 2026-09-09T23:43:24.138Z Record version: sha256:62145a7bd126c08149d9f29d6e015efc22efbc1574d28cc47917fa14bbfd2c08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:43:27.068Z to 2026-09-09T23:43:52.504Z Record version: sha256:dbf6131687a4964a7b46f427dacc1ab8959d16175c973fa2971ef1c6efbba5e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20: Investments—Other — Cost Method Investments ### Machine-generated study aids ```json { "summary": "ASC 325-20 formerly governed the cost method of accounting for equity securities without a readily determinable fair value (cost-method investments), including their initial measurement, impairment assessment, and disclosure. Every substantive paragraph in the subtopic was superseded by ASU 2016-01, so the subtopic is now an empty shell with no operative guidance. Equity investments previously accounted for under the cost method are now within the scope of ASC 321, Investments—Equity Securities.", "key_points": [ "All of the overview (325-20-05), scope (325-20-15), recognition (325-20-25), initial measurement (325-20-30), subsequent measurement/impairment (325-20-35), and disclosure (325-20-50) paragraphs were superseded by Accounting Standards Update No. 2016-01, leaving no effective guidance in this subtopic.", "Because 325-20 is superseded, the cost method for equity securities without a readily determinable fair value is no longer available under U.S. GAAP.", "Equity investments formerly covered by this subtopic are accounted for under ASC 321, generally at fair value with changes recognized in net income, subject to the measurement alternative (cost less impairment, adjusted for observable price changes).", "Impairment of such investments is now evaluated under ASC 321's qualitative impairment model rather than the former other-than-temporary impairment analysis in 325-20-35.", "Paragraphs 325-20-05-4, 325-20-25-3, 325-20-30-7, and 325-20-40-1 are designated 'not used,' confirming the subtopic retains only placeholder text.", "Any pre-2016-01 reference to a 'cost-method investment' under 325-20 should be treated as superseded legacy guidance when reading older financial statements." ], "categories": [ "Financial instruments", "Subsequent measurement", "Impairment", "Transition and effective dates" ], "audience_level": "intermediate", "student_note": "This subtopic matters mainly as a historical marker: exam questions and older filings may reference the \"cost method,\" but ASU 2016-01 eliminated it and moved these investments to ASC 321. The common misunderstanding is assuming cost-method accounting still exists for private-company equity holdings; the correct answer is fair value under ASC 321 or its measurement alternative.", "related_topics": [ "321", "321-10", "320", "323", "825", "820" ], "key_concepts": [ "cost method investments", "equity securities without a readily determinable fair value", "superseded guidance", "measurement alternative", "other-than-temporary impairment", "legacy gaap" ] } ``` Source downloaded (UTC): 2026-09-09T23:43:27.068Z to 2026-09-09T23:43:27.068Z Record version: sha256:b5e2adb8d9230b78e540862c387333ef36cc9e0c605d254d0c9179957a8f9bcc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/20/#00-status) SEC content: no ##### [325-20-00-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:27.068Z to 2026-09-09T23:43:27.068Z Record version: sha256:e9e0d8684c87e0802a6b885ccf5ddffc37ad1fe9ddb3df18e1168d443456fcf4 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
Publicly Traded CompanySupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-05-1 through 05-3
SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-15-1SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-15-2SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-25-1SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-25-2SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-25-2AmendedAccounting Standards Update No. 2012-0410/01/2012
325-20-30-1 through 30-6
SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-35-1 through 35-6
SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-35-1AAmendedAccounting Standards Update No. 2012-0410/01/2012
325-20-50-1SupersededAccounting Standards Update No. 2016-0101/05/2016
325-20-60-1SupersededAccounting Standards Update No. 2016-0101/05/2016
Source downloaded (UTC): 2026-09-09T23:43:30.173Z to 2026-09-09T23:43:30.173Z Record version: sha256:4b6e0c7d456d6a4a1292f2e1e485e9e349a46f1543565da23fd7f264feb14b1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/20/#05-overview-and-background) SEC content: no ##### [325-20-05-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:30.173Z to 2026-09-09T23:43:30.173Z Record version: sha256:fac7d0dc96ab8b32bf16d6fe40ae4bd28bb17bcc2253522b3b6c879b233c62a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-05-2](https://asc.understandingaccounting.org/asc/325/20/#325-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:30.173Z to 2026-09-09T23:43:30.173Z Record version: sha256:bc00dd50692a8a3c6ced914dcb5a991e706678ddd64dcf9637ceab51243c0cbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-05-3](https://asc.understandingaccounting.org/asc/325/20/#325-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:30.173Z to 2026-09-09T23:43:30.173Z Record version: sha256:b3b3f82fd235e6abba8450c9d2a8923399a880c6521232a946055074ee3f9a9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-05-4](https://asc.understandingaccounting.org/asc/325/20/#325-20-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:30.173Z to 2026-09-09T23:43:30.173Z Record version: sha256:0796522a7e43adc68ed8340482a32d61fc940cce92b0871ccdea307f82deed0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:43:33.006Z to 2026-09-09T23:43:33.006Z Record version: sha256:e45d8794b4d7cefb5f587c740ac6e355268e5254eb3a2f9a1509fd2589763d98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/20/#15-scope-and-scope-exceptions) SEC content: no ##### [325-20-15-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:33.006Z to 2026-09-09T23:43:33.006Z Record version: sha256:f400d8f64a9da24b16bc66dbb61e77d15b2cb9c3d3dce04cc7a48442f09034cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-15-2](https://asc.understandingaccounting.org/asc/325/20/#325-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:33.006Z to 2026-09-09T23:43:33.006Z Record version: sha256:949045b7ff8b454261738146788134f18763ef33e875c89bb680b4c6f86eeb7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:43:35.666Z to 2026-09-09T23:43:35.666Z Record version: sha256:f9f1cca51accefd7cd6cab053c2023abb19eddda0c7369037a1c54819af68a91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/20/#25-recognition) SEC content: no ##### [325-20-25-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:35.666Z to 2026-09-09T23:43:35.666Z Record version: sha256:fedc4814b0a6ee24e0f7139082ffbbda117ac3e9f6cf1aa3935f51cb1c78888f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-25-2](https://asc.understandingaccounting.org/asc/325/20/#325-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:35.666Z to 2026-09-09T23:43:35.666Z Record version: sha256:0f8cae3ece76048e49d1d2a127d57f2de9c9c9e80237e57875425c0b093eeccd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-25-3](https://asc.understandingaccounting.org/asc/325/20/#325-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:35.666Z to 2026-09-09T23:43:35.666Z Record version: sha256:d2decb0b4696bb68e892b50c8a847ad8528698cf19624e88a92ec9fa04f48755 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:8a349409afb6871ce468ac0f7341f7cb9f18d1bbcb14be7a0c300d9eaa934db8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/20/#30-initial-measurement) SEC content: no ##### [325-20-30-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:4a54d82a3ebfb963fb7fd2a1ff28d2e84f371e0ee922ab66491352d4464096ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-30-2](https://asc.understandingaccounting.org/asc/325/20/#325-20-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:da26a24e206d835aaad52e5f076dd0a6d426b0f01f21b598d5f967bfcc1f554d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-30-3](https://asc.understandingaccounting.org/asc/325/20/#325-20-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:04538d0c5a82a98bc66941c18125b0641cec0ab181da62336af9b0613b720997 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-30-4](https://asc.understandingaccounting.org/asc/325/20/#325-20-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:824de7587c27772d8efed5ca35d99bf77a1f974e50c0a79c151621d58cce34cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-30-5](https://asc.understandingaccounting.org/asc/325/20/#325-20-30-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:2b036d163927479b2ae219ee98a213881a2e5c61143080776ce1f735569eaf1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-30-6](https://asc.understandingaccounting.org/asc/325/20/#325-20-30-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:1ca6bfb3e04f4d60ab596d6331e097bfed3aa0bcd03c22a47ff1fb1705cf083b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-30-7](https://asc.understandingaccounting.org/asc/325/20/#325-20-30-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:38.595Z to 2026-09-09T23:43:38.595Z Record version: sha256:4f8a55e6e066e904344391f1abb3241784cf34b13da99559c06fdf81311efc0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:4280b79a3582b7f31e0a2d76c7099b5518c7491df04d2c053d6f4ff406e02ada Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/20/#35-subsequent-measurement) SEC content: no ##### [325-20-35-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:b2fd9deba33c3cd5af104791820c81668c92a8dfa4708c09c81feac99b9d13f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-35-1A](https://asc.understandingaccounting.org/asc/325/20/#325-20-35-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:b17f899cc1dec764a3fec2d4cdb8eff834e01b03d568efae6bd7c1ecc8cb48b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-35-2](https://asc.understandingaccounting.org/asc/325/20/#325-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:e626b2cfa2b594bd490d2b3286857e221699b1e69d9d517fc6ed8cb0d9ff3246 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-35-3](https://asc.understandingaccounting.org/asc/325/20/#325-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:c06611860667067e9b526e7236d905ce7ccce75380c582d25a9d341404177ea7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-35-4](https://asc.understandingaccounting.org/asc/325/20/#325-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:d002649a3f6a6110b34ca48f110bad52780559dac5471dd24f653ff268d9c0a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-35-5](https://asc.understandingaccounting.org/asc/325/20/#325-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:b539aa8becb13d595f8cc4cfd017591457a153f2ab0bc8de9d088c40ff190042 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-20-35-6](https://asc.understandingaccounting.org/asc/325/20/#325-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:41.106Z to 2026-09-09T23:43:41.106Z Record version: sha256:34b1e24f72fb0406d1e7a47f74cc6bcd7ad2f4adbbe6c8da62007bf541765afe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:43:44.853Z to 2026-09-09T23:43:44.853Z Record version: sha256:15450c56f7582dec01496fa7c184563ec768b4f7404291a1f0b14dfc39670dd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/325/20/#40-derecognition) SEC content: no ##### [325-20-40-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:44.853Z to 2026-09-09T23:43:44.853Z Record version: sha256:6ba195490e4c879cb75f78c2da2c0ce3b4f429197617a47fd88493923a905e9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:43:46.689Z to 2026-09-09T23:43:46.689Z Record version: sha256:ef057146a3d945954736d16a7c2fafdf7c9021ec936c1d5ec08aad5f57a9e883 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/20/#50-disclosure) SEC content: no ##### [325-20-50-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:46.689Z to 2026-09-09T23:43:46.689Z Record version: sha256:2f414edfa9ab1f9ffd93afa9020af6445813a48bd820529e26c1b7cadbe8e4a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:43:50.745Z to 2026-09-09T23:43:50.745Z Record version: sha256:9698d7b8ec04af2870f31b318d99c277493003c5da1d75c2c0603c186d5fe97e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-20-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/325/20/#60-relationships) SEC content: no ##### [325-20-60-1](https://asc.understandingaccounting.org/asc/325/20/#325-20-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:50.745Z to 2026-09-09T23:43:50.745Z Record version: sha256:40a2f9ece86d175b2f77c6a6340df060cb4528247e975e12bfac48452066deca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:43:55.828Z to 2026-09-09T23:44:24.209Z Record version: sha256:7c673152787046644cb5f885031f7301aafba1e1ee0124fe01ac426879e651f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30: Investments—Other — Investments in Insurance Contracts ### Machine-generated study aids ```json { "summary": "ASC 325-30 governs investments in life insurance contracts held by entities that are the owner or beneficiary (e.g., corporate-owned or bank-owned life insurance), and, in separate Subsections, investments in life settlement contracts purchased from policy owners. The general rule is that a life insurance policy is reported as an asset measured at \"the amount that could be realized under the insurance contract\" at the balance sheet date, determined policy-by-policy (or certificate-by-certificate) and reflecting probable contractual limitations. For life settlement contracts, an investor makes an irrevocable, instrument-by-instrument election between the investment method (cost plus capitalized premiums and direct external costs, subject to impairment) and the fair value method (remeasured each period through earnings).", "key_points": [ "An investment in a life insurance contract is reported as an asset (325-30-25-1) and measured subsequently at the amount that could be realized under the contract at the balance sheet date; death benefits may not be accrued on an actuarially expected or projected basis and are realized only on actual death (325-30-35-1).", "The realizable amount is determined assuming surrender of each individual-life policy or certificate separately, including any amount realized on surrender of the final policy/certificate (325-30-35-5); if only group surrender is permitted, the amount is determined on a group basis (325-30-35-7).", "Probable contractual limitations reduce the realizable amount, and amounts recoverable only at the insurer's discretion are excluded (325-30-35-3); amounts recoverable more than one year after surrender are discounted under Topic 835 (325-30-35-4), and the cash surrender value component is not discounted for surrender restrictions so long as the holder still participates in cash surrender value changes (325-30-35-6).", "The change in cash surrender or contract value during the period is an adjustment of premiums paid in determining expense or income for the period (325-30-35-2), and contractual restrictions on the ability to surrender must be disclosed (325-30-50-1).", "For life settlement contracts, the investor makes an irrevocable, instrument-by-instrument election of the investment method or the fair value method, supported by concurrent documentation or a preexisting automatic-election policy (325-30-25-2).", "Investment method: initial measurement at transaction price plus initial direct external costs (325-30-30-1C), continuing premiums and direct external costs are capitalized (325-30-35-8), no gain is recognized until the insured dies (325-30-35-9), and impairment is tested when new information indicates expected undiscounted proceeds are less than carrying amount plus anticipated undiscounted future premiums and costs, with write-down to fair value (325-30-35-10 through 35-11).", "Fair value method: initial measurement at transaction price (325-30-30-2) with remeasurement to fair value each reporting period and changes recognized in earnings (325-30-35-12); on death, the difference between carrying amount and insurance proceeds is recognized in earnings (325-30-40-1A), and fair value method amounts must be presented separately on the face of the balance sheet and income statement (325-30-45-1, 45-3)." ], "categories": [ "Subsequent measurement", "Initial measurement", "Impairment", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exam traps: the asset is the amount realizable on assumed surrender policy-by-policy (so a surrender charge waived only on a full group surrender is NOT added back — see Example 1 at 325-30-55-4), and death benefits can never be accrued before death. Also remember the life settlement election is irrevocable and made instrument-by-instrument, which drives very different measurement, presentation, and disclosure outcomes.", "related_topics": [ "320-10", "323-10", "835", "230", "960", "820" ], "key_concepts": [ "amount that could be realized", "cash surrender value", "corporate-owned life insurance", "life settlement contract", "investment method", "fair value method", "surrender charge", "demutualization" ] } ``` Source downloaded (UTC): 2026-09-09T23:43:55.828Z to 2026-09-09T23:43:55.828Z Record version: sha256:b3fd06769f14ac79f74161883e83c03d2a190169db936258054c48cb9e9dcbef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/30/#00-status) SEC content: no ##### [325-30-00-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:55.828Z to 2026-09-09T23:43:55.828Z Record version: sha256:5c45b89b661bae0b66458767fe9b3a5b2fc2ef95adeffbc34037080ac24f3919 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
325-30-30-1AAAddedMaintenance Update 2018-02 (PDF)02/02/2018
325-30-30-1BSupersededMaintenance Update 2018-02 (PDF)02/02/2018
325-30-50-3AmendedMaintenance Update 2014-07 (PDF)03/17/2014
Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:c3a3a50f8446bfb1ba9f73cef195b98a2d1bced2d454d7eb6b2ffc7a24eff651 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/30/#05-overview-and-background) SEC content: no ##### [325-30-05-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:4ad7984474e37d0f0395d7dfcf9f0aa4ebcf835f5ded1535b497b93a0892e5e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic presents guidance in the following Subsections: 1. a General 2. b Life Settlement Contracts. ##### [325-30-05-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:a47e3dfa4694821a26fb18082e9c9ceb2d2baeff2fabddbddca2f1ea7201e424 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance on accounting for investments in life insurance contracts generally, including the calculation of the amount that could be realized under the life insurance contract. ##### [325-30-05-3](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:66121326460ba54c0171a10897bef61d623a9fdb25cb8f6c57fa5be45b6296fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A premium paid by a purchaser of life insurance serves a variety of purposes. A portion of the premium pays the insurer for assumption of mortality risk and provides for recovery of the insurer's contract acquisition, initiation, and maintenance costs. Another portion of the premium contributes to the accumulation of contract values. The relative amounts of premium payment credited to various contract attributes change over time as the age of the insured party increases and as earnings are credited to previously established contract values. ##### [325-30-05-4](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:cade0ca69ee03c06e09ee58492df41da439cbe24fd64821da445f4d07165b2b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A life insurance contract is significantly different from most investment agreements. The various attributes of the policy could be obtained separately through term insurance and purchase of investment. The combination of benefits and contract values could not, however, typically be acquired absent the insurance contract. Continued protection from mortality risk and realization of scheduled increases in contract accumulation usually requires payment of future premiums. ##### [325-30-05-5](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:9627aa174e1f5a2344d261d87887f4a0aee98a80ea083cc175e1551384a133a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The payment of insurance premiums may take a number of different forms. The insurance contract may be purchased through payment of a single premium, as opposed to the typical series of future premiums. Alternatively, the premium payments may be made through loans from the insurance entity that are secured by policy cash surrender values. The pattern of premium payments is a decision that does not alter the underlying nature of the insurance contract. ##### [325-30-05-6](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:e916e4413e61a5a1bb5846c30e0f8f193155b067f3362246dc5369d409d7167d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Life insurance policies are purchased by entities for a variety of purposes, including funding the cost of providing employee benefits and protecting against the loss of key persons. These types of policies have generally been known as corporate-owned life insurance or bank-owned life insurance. One of the primary benefits to using an [insurance policy](https://asc.understandingaccounting.org/glossary/i/#insurance-policy "The legal agreement between the policyholder and the insurance entity that states the terms of the arrangement. The term insurance policy includes all riders, attachments, side agreements, and other related documents that are either directly or indirectly part of the contractual arrangement. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") as a funding mechanism is the ability for an entity to receive the death benefits tax-free. Investment income is accumulated tax-free through the internal build-up of the [cash surrender value](https://asc.understandingaccounting.org/glossary/c/#cash-surrender-value "The amount of cash that may be realized by the owner of a life insurance contract or annuity contract upon discontinuance and surrender of the contract before its maturity. The cash surrender value may be different from the policy account balance due to outstanding loans (including accrued interest) and surrender charges. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)"). In the event that a policy is surrendered early, the policyholder will be responsible for paying the tax on the previously unrecognized investment income. The tax on the cash surrender value can be significant if the policies have been held for a number of years. Corporate-owned and bank-owned life insurance arrangements are established using several different insurance products, including all of the following: 1. a Universal-life policies 2. b Variable-life policies 3. c Whole-life policies. ##### [325-30-05-7](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:0ed7a932425c9117863244ac119948961d13bfa12be5db54fea7bd56e6e700d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. There are a few basic structures currently used as a framework for most policies in the marketplace. However, these structures can be combined and modified in many different ways and, therefore, can be quite complex. All of the following life insurance policy structures are considered in this guidance: 1. a Individual-life policy. The individual-life policy generally has one contract value component and, in some cases, a [surrender charge](https://asc.understandingaccounting.org/glossary/s/#surrender-charge "A contractual fee imposed by the insurance entity when a policyholder surrenders the insurance policy that typically decreases over the life of the policy. The surrender charge represents a recovery of costs incurred by the insurance entity in originating the policy. It may or may not be explicitly called a surrender charge and can be embedded in other agreements besides the insurance contract. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)"). The amount that could be realized for this policy upon surrender is the amount reported by the insurance entity to the policyholder as the cash surrender value. 2. b Multiple individual-life policies. Many entities purchase separate individual-life policies for each employee. Similar to the individual-life policy, each policy has only one contract value component and in some cases a surrender charge. If one or more, but not all, policies are surrendered, the policyholder will incur the surrender charges on those policies surrendered. This will result in a permanent loss of asset value to the extent of the surrender charge. However, a rider (or a contractual stipulation) can be obtained for the insurance policy that will waive the surrender charges on each individual policy if all of the policies are surrendered at the same time. The cost of the rider will vary depending on the individual facts and circumstances. 3. c Group-life policy. The group-life policy constitutes the legal contract with the insurance entity that covers individual-life insurance for multiple employees. Each individual in the group policy is issued a certificate. If the group policy is cancelled, each of the individual [certificates](https://asc.understandingaccounting.org/glossary/c/#certificates "An insurance entity issues to each individual in a group contract a certificate of insurance for each person insured under the group contract. The certificate is merely a summary of the rights, duties, and benefits available under a group policy. If there is any conflict between the certificate and a group policy, the group policy is the controlling document. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") is terminated. While certificates are issued pursuant to the policy and form part of the policy, the group-life policy contract is the controlling document. Under the group-life policy, individual-life insurance certificates can be surrendered separately and the cash surrender value for the certificate is received by the policyholder for the full surrender amount of that certificate. ##### [325-30-05-8](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:755fa51c90c5d140917256abe1fd07efbaa81dd0c7a9a72083bc742759c304a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Additionally, a number of policies include certain provisions that can make them more attractive to the policyholder (for example, a provision allowing for the recovery of certain costs). However, many provisions limit the amount that is realized and may necessitate the meeting of certain criteria to recover any of those amounts. Some of the more typical examples of limitations that exist include all of the following: 1. a The prohibition against having a change of control or a restructuring occurring within the last 24 months 2. b A planned restructuring within the next 12 months 3. c The extent to which the policyholder is in a net operating loss carryforward position. The amount associated with the termination of the policy may be received over an extended period of time after the surrender of the life insurance policy or certificate. ##### [325-30-05-9](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:ab3ed9855634d0b4985ae68bd141d786c8b8458c0652d79ce5dfe3fd4450091f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other attributes include any of the following: 1. a Multiple individual policies with a separate, group-level rider agreement 2. b Multiple individual policies with a contractual stipulation in each individual policy referencing the other policies as a group 3. c A group-life policy that has multiple certificates (individual life insurance for multiple employees). These contracts may provide the policyholder with an amount that upon surrender is greater if all individual policies are surrendered at the same time rather than if the individual policies are surrendered over a period of time. The amount that can be realized under the insurance contract (that is, converted into cash) is dependent on how the contract is assumed to be hypothetically settled and, if surrendered, whether the insurance policies are surrendered at the individual or group level. #### Exchange of Mutual Membership Interests for Stock in a Demutualization ##### [325-30-05-9A](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-9A) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:6f2cb03955e81ba68a200dfe606725d161f96ef60fb732dcff363dac01a96802 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To effect a demutualization, an entity may be required to issue consideration, often in the form of stock, to existing participating policyholders in exchange for their current membership interests. The receipt of such stock has no direct effect on the policyholders' contractual interests of their insurance policies (for example, it does not alter the [cash surrender value](https://asc.understandingaccounting.org/glossary/c/#cash-surrender-value "The amount of cash that may be realized by the owner of a life insurance contract or annuity contract upon discontinuance and surrender of the contract before its maturity. The cash surrender value may be different from the policy account balance due to outstanding loans (including accrued interest) and surrender charges. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") of their life insurance policies). However, the governance of the mutual insurance entity and, in particular, the participating policyholders' interest in that governance are modified. ### Life Settlement Contracts ##### [325-30-05-10](https://asc.understandingaccounting.org/asc/325/30/#325-30-05-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:57.769Z to 2026-09-09T23:43:57.769Z Record version: sha256:cfadaae04c28f634ce069ba4021ae7a32984ef6d66b0445edaddfe034d6bb642 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Life Settlement Contracts Subsections provide guidance on accounting for an investment in a [life settlement contract](https://asc.understandingaccounting.org/glossary/l/#life-settlement-contract "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."). Source downloaded (UTC): 2026-09-09T23:43:59.679Z to 2026-09-09T23:43:59.679Z Record version: sha256:3d083d342aff3ab6aa62499f251bd5b8233ebd32096913f279f0c7dcfb64ecfc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/30/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [325-30-15-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:59.679Z to 2026-09-09T23:43:59.679Z Record version: sha256:0fe6722d24cb50b4be2ce53b1b66713cccf87e31ab60d81041c62bfbeee180e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Transactions ##### [325-30-15-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:59.679Z to 2026-09-09T23:43:59.679Z Record version: sha256:3dc40c48d8b8dd216587145476f260f7235b02eb22190f2e3e5123ff6d6a393f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all transactions for entities purchasing life insurance in which the entity is either the owner or beneficiary of the contract, without regard to the funding objective of the purchase (other than [life settlement contracts](https://asc.understandingaccounting.org/glossary/l/#life-settlement-contract "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.")). Such purchases would typically include those intended to meet loan covenants or to fund deferred compensation agreements, buy-sell agreements, or postemployment death benefits. ##### [325-30-15-3](https://asc.understandingaccounting.org/asc/325/30/#325-30-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:59.679Z to 2026-09-09T23:43:59.679Z Record version: sha256:b84d08eaff6a4f96075449ea8e54ed097577bcdeff3a95dedce45f9ccd0e3282 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Purchases of life insurance by retirement plans that are subject to Topic 960 are not within the scope of this Subtopic. ##### [325-30-15-4](https://asc.understandingaccounting.org/asc/325/30/#325-30-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:59.679Z to 2026-09-09T23:43:59.679Z Record version: sha256:5ba21c76b39027da246330e8d82b684f69ca908ccee633bc6eae8e9fe859771d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Internal Revenue Code Section 1035 exchanges do not constitute a cash surrender. ### Life Settlement Contracts #### Entities ##### [325-30-15-5](https://asc.understandingaccounting.org/asc/325/30/#325-30-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:59.679Z to 2026-09-09T23:43:59.679Z Record version: sha256:4f8b2d890efd9802d0accc7fa5f86f2245d65fe88c82cee171b00c8d6401aad2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Life Settlement Contracts Subsections applies to all entities. #### Transactions ##### [325-30-15-6](https://asc.understandingaccounting.org/asc/325/30/#325-30-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:43:59.679Z to 2026-09-09T23:43:59.679Z Record version: sha256:5e41b013b812af15e4343b8f67f88d580c116cf0da34b1b2c5eeb85bc4b3f782 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Life Settlement Contracts Subsections applies to both transactions in which a broker facilitates settlement transactions between the policy owner and the investor, and transactions that do not involve a broker. Source downloaded (UTC): 2026-09-09T23:44:05.761Z to 2026-09-09T23:44:05.761Z Record version: sha256:7a539a02489d019e37006b5b0342794881d0f0ba6dd70e817f5660a44b613d01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/30/#25-recognition) SEC content: no ##### [325-30-25-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:05.761Z to 2026-09-09T23:44:05.761Z Record version: sha256:4426027ab5eabe57c78e81967fcc5d5f63264fc0e720fe2ea1932ac8c8475be8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment in a life insurance contract shall be reported as an asset. #### Exchange of Mutual Membership Interests for Stock in a Demutualization ##### [325-30-25-1A](https://asc.understandingaccounting.org/asc/325/30/#325-30-25-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:05.761Z to 2026-09-09T23:44:05.761Z Record version: sha256:ed51bb7abc1d8a9f1d54b678df46d0b5385bc47990dec4b1af0e89c43f4d841d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall recognize stock received from a demutualization and subsequently follow the guidance in Subtopics 320-10 or 323-10 as applicable. ### Life Settlement Contracts ##### [325-30-25-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:05.761Z to 2026-09-09T23:44:05.761Z Record version: sha256:feeaafd9fe39d4d93b88e85645ac28ce2824eee16432866471dd5242e60ce3b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall elect to account for its investments in [life settlement contracts](https://asc.understandingaccounting.org/glossary/l/#life-settlement-contract "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.") using either the investment method or the fair value method. The election shall be made on an instrument-by-instrument basis and is irrevocable. The election shall be supported by concurrent documentation or a preexisting documented policy for automatic election. Source downloaded (UTC): 2026-09-09T23:44:09.665Z to 2026-09-09T23:44:09.665Z Record version: sha256:dc2c07c6cb51aecfd4a1b022fc907d9b3660f05b3e11d4ebd927621146f5c93c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/30/#30-initial-measurement) SEC content: no ##### [325-30-30-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:09.665Z to 2026-09-09T23:44:09.665Z Record version: sha256:cbca5daff716d7917767d7de025fccb1e62d53868b236aad6a4d699dcc22c744 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A policyholder shall consider any additional amounts included in the contractual terms of the policy in determining the amount that could be realized under the life insurance contract. ##### [325-30-30-1A](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:09.665Z to 2026-09-09T23:44:09.665Z Record version: sha256:b88f3363d5c4c8ca34036768bbcefac366decd064ecf592877ba77d43369c7fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity also shall apply the measurement guidance in paragraphs [325-30-35-5 through 35-7](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-5) at initial measurement. #### Exchange of Mutual Membership Interests for Stock in a Demutualization ##### [325-30-30-1AA](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-1AA) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:09.665Z to 2026-09-09T23:44:09.665Z Record version: sha256:87af7f4f70c21d5f098a0f7e6c38c56db4259978ecf3ef2547f850a9a4ae8a8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Stock received from a demutualization shall be measured initially at fair value. ### Life Settlement Contracts ##### [325-30-30-1B](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:09.665Z to 2026-09-09T23:44:09.665Z Record version: sha256:4b59a826bb4d6768823f8dc8e80c707897b8d8fadeba3079842a6c5f73756302 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update 2018-02](https://asc.understandingaccounting.org/updates/maintenance-updates-2018/). #### Investment Method ##### [325-30-30-1C](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-1C) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:09.665Z to 2026-09-09T23:44:09.665Z Record version: sha256:d3d19b54e8d293a2b9c28ce343fb506e8a5ccf06132ca9bc237439f997f14be2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the investment method, an investor shall measure its investment in a [life settlement contract](https://asc.understandingaccounting.org/glossary/l/#life-settlement-contract "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.") initially at the transaction price plus all initial direct external costs. #### Fair Value Method ##### [325-30-30-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:09.665Z to 2026-09-09T23:44:09.665Z Record version: sha256:63e5b91db731e98a01d50a6afa5071b61c57dab454de82629dcea30230114c04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the fair value method, an investor shall measure its investment in a life settlement contract initially at the transaction price. Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:c299e3f6626ae35a1254d6516e59e7a4146b0c35bcd95bbf099c3399ca5282a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/30/#35-subsequent-measurement) SEC content: no ##### [325-30-35-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:386ec48cdd012f4c22bf27b2dab9a8ab09954a3397d28ee83aea78167393da55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An asset representing an investment in a life insurance contract shall be measured subsequently at the amount that could be realized under the insurance contract as of the date of the statement of financial position. It is not appropriate for the purchaser of life insurance to recognize income from death benefits on an actuarially expected basis. The death benefit shall not be realized before the actual death of the insured, and recognizing death benefits on a projected basis is not an appropriate measure of the asset. ##### [325-30-35-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:b652d75fbd13fb5905abbbf4841c2dd333d39ea6254f1c3386495113d15ea46e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The change in cash surrender or contract value during the period is an adjustment of premiums paid in determining the expense or income to be recognized under the contract for the period. ##### [325-30-35-3](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:c66054bf8ef291288d6573e50f165dc85ed6519efbcb57113472631863ec091f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [325-30-30-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-1) states that a policyholder shall consider any additional amounts included in the contractual terms of the policy in determining the amount that could be realized under the life insurance contract. When it is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that contractual terms would limit the amount that could be realized under the life insurance contract, these contractual limitations shall be considered when determining the realizable amounts. Those amounts that are recoverable by the policyholder at the discretion of the insurance entity shall be excluded from the amount that could be realized under the life insurance contract. ##### [325-30-35-4](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:a7d7463bf5783c934166a7bba91765d0f04c3b3cbdbc8138ce7a7bf4c63060f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts that are recoverable by the policyholder in periods beyond one year from the surrender of the policy shall be discounted in accordance with Topic 835. ##### [325-30-35-5](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:b11c9d142deebb847f0109be2245b3826079bc120699c6671ea9ae373d8ed603 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A policyholder shall determine the amount that could be realized under the life insurance contract assuming the surrender of an individual-life by individual-life policy (or certificate by certificate in a group policy). Any amount that ultimately would be realized by the policyholder upon the assumed surrender of the final policy (or final certificate in a group policy) shall be included in the amount that could be realized under the insurance contract. See Example 1 (paragraph [325-30-55-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-55-1)) for an illustration of this guidance. ##### [325-30-35-6](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:809b430eef740c7b8fc9e3a444fd4ac7c4b3631e6c6e96cf68e0754f212de027 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A policyholder shall not discount the [cash surrender value](https://asc.understandingaccounting.org/glossary/c/#cash-surrender-value "The amount of cash that may be realized by the owner of a life insurance contract or annuity contract upon discontinuance and surrender of the contract before its maturity. The cash surrender value may be different from the policy account balance due to outstanding loans (including accrued interest) and surrender charges. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") component of the amount that could be realized under the insurance contract when contractual restrictions on the ability to surrender a policy exist, as long as the holder of the policy continues to participate in the changes in the cash surrender value as it had done before the surrender request. If, however, the contractual restrictions prevent the policyholder from participating in changes to the cash surrender value component, then the amount that could be realized under the insurance contract at a future date shall be discounted in accordance with Topic 835. ##### [325-30-35-6A](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-6A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:a9f652eb107dd64545b4fd76a4f00b37f57cbe13768c686b43d95b5cb2601545 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [325-30-30-1A](https://asc.understandingaccounting.org/asc/325/30/#325-30-30-1A) states that an entity also shall apply the measurement guidance in paragraphs [325-30-35-5 through 35-7](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-5) at initial measurement. ##### [325-30-35-7](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:91991613c19bb473fcb4cdb17aaad3bcc06d21009df1a628c1b479b56ffdde35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a group of individual-life policies or a group policy only allows for the surrender of all of the individual-life policies or [certificates](https://asc.understandingaccounting.org/glossary/c/#certificates "An insurance entity issues to each individual in a group contract a certificate of insurance for each person insured under the group contract. The certificate is merely a summary of the rights, duties, and benefits available under a group policy. If there is any conflict between the certificate and a group policy, the group policy is the controlling document. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") as a group, then the policyholder shall determine the amount that could be realized under the insurance contract on a group basis. ### Life Settlement Contracts #### Investment Method ##### [325-30-35-8](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:473bc345260a5ab7c0d3ae23707c7e87020b76f030c36c165cdae28c8cf5de7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Continuing costs (policy premiums and direct external costs, if any) to keep the policy in force shall be capitalized. ##### [325-30-35-9](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:eea3927c762fb03d43fedeb9203d454290300733f1a8cddfa4f879a0114a8035 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The investor shall not recognize a gain until the insured dies (see paragraph [325-30-40-1A](https://asc.understandingaccounting.org/asc/325/30/#325-30-40-1A)). ##### [325-30-35-10](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:c2e50e1b61453544bc2a5e1a293e057a7221ec58d837789f7c0a2106f47345d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall test an investment in a [life settlement contract](https://asc.understandingaccounting.org/glossary/l/#life-settlement-contract "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.") for impairment if the investor becomes aware of new or updated information that indicates that the expected proceeds from the [insurance policy](https://asc.understandingaccounting.org/glossary/i/#insurance-policy "The legal agreement between the policyholder and the insurance entity that states the terms of the arrangement. The term insurance policy includes all riders, attachments, side agreements, and other related documents that are either directly or indirectly part of the contractual arrangement. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") will not be sufficient to recover the carrying amount of the investment plus anticipated undiscounted future premiums and capitalizable direct external costs, if any, when the insured dies. Factors include, but are not limited to, a change in expected mortality and a change in the creditworthiness of the issuer of the underlying insurance policy. A change in interest rates would not of itself require an investment in a life settlement contract to be tested for impairment. ##### [325-30-35-11](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:c81d5202bb897edd792ded4d5dda208bfd6792f7837a838cbd9bdf54e1df5072 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall recognize an impairment loss if the expected undiscounted cash inflows (typically, the insurance proceeds) are less than the carrying amount of the investment plus anticipated undiscounted future premiums and capitalizable direct external costs, if any. If an impairment loss is recognized, the investment shall be written down to fair value. The fair value measurement shall consider current interest rates. #### Fair Value Method ##### [325-30-35-12](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:12.079Z to 2026-09-09T23:44:12.079Z Record version: sha256:48973fe2a39b102c51d6167c27fd7e69de6eae92bd5e1297431d0480994a8a80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In subsequent periods, the investor shall remeasure the investment in a life settlement contract at fair value in its entirety at each reporting period and shall recognize changes in fair value in earnings (or other performance indicators for entities that do not report earnings) in the period in which the changes occur. Source downloaded (UTC): 2026-09-09T23:44:13.955Z to 2026-09-09T23:44:13.955Z Record version: sha256:52b81e59efe8d276419b8b212362789c5ef394f8aa74d80f04fc74539310b581 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/325/30/#40-derecognition) SEC content: no ### Life Settlement Contracts #### Exchange of Mutual Membership Interests for Stock in a Demutualization ##### [325-30-40-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:13.955Z to 2026-09-09T23:44:13.955Z Record version: sha256:257d4cf69e7628d8c3c9053ea200225881ba0d94663b9290630f69dc0ac55e2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any gain on an exchange of mutual membership interests for stock in a demutualization shall be recognized in income from continuing operations. #### Investment Method ##### [325-30-40-1A](https://asc.understandingaccounting.org/asc/325/30/#325-30-40-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:13.955Z to 2026-09-09T23:44:13.955Z Record version: sha256:e955363ad96abd49deba670ada9f31a478d0facf9c83592d1bc2295cb3506ec8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon the death of the insured, the investor shall recognize in earnings (or other performance indicators for entities that do not report earnings) the difference between the carrying amount of a [life settlement contract](https://asc.understandingaccounting.org/glossary/l/#life-settlement-contract "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.") and the life insurance proceeds of the underlying life [insurance policy](https://asc.understandingaccounting.org/glossary/i/#insurance-policy "The legal agreement between the policyholder and the insurance entity that states the terms of the arrangement. The term insurance policy includes all riders, attachments, side agreements, and other related documents that are either directly or indirectly part of the contractual arrangement. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)"). Source downloaded (UTC): 2026-09-09T23:44:16.126Z to 2026-09-09T23:44:16.126Z Record version: sha256:4f5e83c7685d57adb59f7c15533d8fb3d20d101cccccb16a2e3c853211df42e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/30/#45-other-presentation-matters) SEC content: no ### Life Settlement Contracts #### Statement of Financial Position ##### [325-30-45-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:16.126Z to 2026-09-09T23:44:16.126Z Record version: sha256:69c9a136b4e7c9eb1fbf68d6080e0e094ac94e940b9517fd3e056f4bff584651 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall report its investments that are remeasured at fair value on the face of the statement of financial position separately from those accounted for under the investment method. To accomplish that separate reporting, an investor shall do either of the following: 1. a Display separate line items on the statement of financial position for the fair value method and investment method carrying amounts 2. b Present the aggregate of those fair value method and investment method carrying amounts and parenthetically disclose the amount of those investments accounted for under the fair value method included in the aggregate amount. #### Income Statement ##### [325-30-45-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:16.126Z to 2026-09-09T23:44:16.126Z Record version: sha256:742ef2d2c722fb7d5eec3138df5e21d31d56876ffb262d924470e070fc2b5ef7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The investor shall classify the amount recognized upon the death of the insured in accordance with paragraph [325-30-35-9](https://asc.understandingaccounting.org/asc/325/30/#325-30-35-9) in earnings (or other performance indicators for entities that do not report earnings). ##### [325-30-45-3](https://asc.understandingaccounting.org/asc/325/30/#325-30-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:16.126Z to 2026-09-09T23:44:16.126Z Record version: sha256:1a3ddffbac08e781439faf56b9009c6b14b46977bded3f7cad39fe22c2044ce6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall report the investment income from its investments in life settlement contracts that are remeasured at fair value on the face of the income statement separately from the investment income from those accounted for under the investment method. To accomplish that separate reporting, an investor shall do either of the following: 1. a Display separate line items on the income statement for the investment income from the investments in life settlement contracts that are accounted for under the fair value method and investment method 2. b Present the aggregate of the investment income in life settlement contracts and parenthetically disclose the investment income from those investments accounted for under the fair value method that are included in the aggregate amount. ##### [325-30-45-4](https://asc.understandingaccounting.org/asc/325/30/#325-30-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:16.126Z to 2026-09-09T23:44:16.126Z Record version: sha256:485e475008168e00dacab6b7b1f57c5990344ee00658aec7e2bf2ed927f64a7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor applying the fair value method shall account for premiums paid and life insurance proceeds received on the same financial reporting line as the changes in fair value are reported. #### Statement of Cash Flows ##### [325-30-45-5](https://asc.understandingaccounting.org/asc/325/30/#325-30-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:16.126Z to 2026-09-09T23:44:16.126Z Record version: sha256:a50f568104fc967b09e825554d9f2aa1f2b8272edd988f767f50d0aa8bcf5530 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall classify cash receipts and cash payments related to life settlement contracts in accordance with Topic 230, based on the nature and purpose for which the life settlements were acquired. Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:8179c833ee88977d5b66804cfb962c77b1a08948533f3118053c6ad458344db0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/30/#50-disclosure) SEC content: no ##### [325-30-50-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:3c1aaf7b6c9d058efc09addef82400816c9e04ba8889fe564dcbc46ea11deefc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A policyholder shall disclose contractual restrictions on the ability to surrender a policy. ### Life Settlement Contracts ##### [325-30-50-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:a360eb8a7e5ce3c2120a5f60e9c8ee99f340d44c06c9f1beb14af1dd72a2b980 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall disclose its accounting policy for [life settlement contracts](https://asc.understandingaccounting.org/glossary/l/#life-settlement-contract "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."), including the classification of cash receipts and cash disbursements, in the statement of cash flows. ##### [325-30-50-3](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:f2a30aaad22c59e22e9df91053469f3798af684fb68ec32da81109ae95e4bb61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirements in this Subsection do not eliminate disclosure requirements included in other Topics, including other disclosure requirements on the use of fair value. #### Investment Method ##### [325-30-50-4](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:6adbce3e1f1e936010360085f4571ec2c5776ffa665c0f2a5cec46e9d3924bff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall disclose all of the following for life settlement contracts accounted for under the investment method based on the remaining life expectancy for each of the first five succeeding years from the date of the statement of financial position and thereafter, as well as in the aggregate: 1. a The number of life settlement contracts 2. b The carrying value of the life settlement contracts 3. c The face value (death benefits) of the life insurance policies underlying the contracts. ##### [325-30-50-5](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:1a1cbb91f41f4f178ca274c8edc24d89bba68d510f677a95f779e850a72e2d1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall disclose the life insurance premiums anticipated to be paid for each of the five succeeding fiscal years to keep the life settlement contracts in force as of the date of the most recent statement of financial position presented. ##### [325-30-50-6](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:b3aca283e51ce46be96f797927dcd283a3facd8b743eecdf904fd12794440eb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the investor becomes aware of new or updated information that causes it to change its expectations on the timing of the realization of proceeds from the investments in life settlement contracts, the investor shall disclose the nature of the information and the related effect on the timing of the realization of proceeds from the life settlement contracts. This includes disclosing significant changes to the amounts disclosed in accordance with paragraph [325-30-50-4](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-4). However, an investor shall not be required to actively seek out new or updated information to update the assumptions used in determining the remaining life expectancy of the life settlement contracts. #### Fair Value Method ##### [325-30-50-7](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:884d7179e04ac859933b5556abe26c8babcda635f17d80430d4fe9f936cb365d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall disclose the method(s) and significant assumptions used to estimate the fair value of investments in life settlement contracts, including any mortality assumptions. ##### [325-30-50-8](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:6ddd1cf91244f2acdcbcd2c1d0bb7d3d8689794754ddc4985d9e6993d842c4ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall disclose all of the following for life settlement contracts accounted for under the fair value method based on remaining life expectancy for each of the first five succeeding years from the date of the statement of financial position and thereafter, as well as in the aggregate: 1. a The number of life settlement contracts 2. b The carrying value of the life settlement contracts 3. c The face value (death benefits) of the life insurance policies underlying the contracts. ##### [325-30-50-9](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:f1a9a781cf1a636da548b219779eda9f26f1c8d5c89eb344e433a990beee2436 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The investor shall disclose the reasons for changes in its expectation of the timing of the realization of the investments in life settlement contracts. This includes disclosing significant changes to the amounts disclosed in accordance with paragraph [325-30-50-8](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-8). ##### [325-30-50-10](https://asc.understandingaccounting.org/asc/325/30/#325-30-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:17.783Z to 2026-09-09T23:44:17.783Z Record version: sha256:de34aefacd88a572b146498e37245b7b235ba8311c26933eb83c228629e8c082 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor shall disclose both of the following for each reporting period presented in the income statement: 1. a The gains or losses recognized during the period on investments sold during the period 2. b The unrealized gains or losses recognized during the period on investments that are still held at the date of the statement of financial position. Source downloaded (UTC): 2026-09-09T23:44:21.128Z to 2026-09-09T23:44:21.128Z Record version: sha256:ba5ba9ff4b740228058603445757852112df64447e34dd6b9c5d5d1541692a24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-30-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/325/30/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [325-30-55-1](https://asc.understandingaccounting.org/asc/325/30/#325-30-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:21.128Z to 2026-09-09T23:44:21.128Z Record version: sha256:3f073e99c2547945d342ef64d999d6476f55bab31f906e57a394ab2bc45044f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the application of the guidance in the General Subsections of this Subtopic to life insurance contracts other than life settlement contracts. ##### [325-30-55-2](https://asc.understandingaccounting.org/asc/325/30/#325-30-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:21.128Z to 2026-09-09T23:44:21.128Z Record version: sha256:4a71a36624c7bb833bb72474ae72549b6b84cc5f5cf06b3f977ac23d8ef86ecf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 19X7, Entity TKO purchases a group variable-life policy on 20 executives of Entity TKO. The insurance entity issued an individual certificate for each executive when the policy was purchased. The entire policy was funded with an initial single premium of $10,000,000. Entity TKO will be paid the stated death benefit of the certificate when the insured dies. The policy contains a [surrender charge](https://asc.understandingaccounting.org/glossary/s/#surrender-charge "A contractual fee imposed by the insurance entity when a policyholder surrenders the insurance policy that typically decreases over the life of the policy. The surrender charge represents a recovery of costs incurred by the insurance entity in originating the policy. It may or may not be explicitly called a surrender charge and can be embedded in other agreements besides the insurance contract. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") of $50,000 per certificate if a certificate is surrendered. If all of the [certificates](https://asc.understandingaccounting.org/glossary/c/#certificates "An insurance entity issues to each individual in a group contract a certificate of insurance for each person insured under the group contract. The certificate is merely a summary of the rights, duties, and benefits available under a group policy. If there is any conflict between the certificate and a group policy, the group policy is the controlling document. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") are surrendered at once (that is, if the group policy is surrendered) the surrender charge is waived. The policy includes a [claims stabilization reserve](https://asc.understandingaccounting.org/glossary/c/#claims-stabilization-reserve "The claims stabilization reserve is established through deductions from the policy account balance through the cost of insurance charge and is sometimes held in a general account (that is, an account that is intermingled with the insurance entity's assets) as opposed to a legally segregated account (sometimes referred to as a separate account). The amounts are accumulated in this account until a death benefit is paid. The death benefit represents a combination of the policy account balance and the claims stabilization reserve based on the contractual terms. The cost of insurance is recalculated periodically based on actual experience of the insured class. Annually, the claims stabilization reserve is reviewed and an experience credit may be issued back to the policyholder if the experience has been favorable. The balance in the claims stabilization reserve will be reviewed annually and to the extent the balance is greater than the forecasted or expected amount, an experience refund would get credited to the entity's policy account balance. An entity's claims stabilization reserve will generally be realized through the collection of death benefits or an experience refund that gets credited to the policyholder's policy account balance or upon surrender of the group policy. A claims stabilization reserve is included in a policy as a mechanism for the policyholder and the insurance entity to share in the mortality risk, which in this case is the risk that the deaths will occur sooner than originally expected. Absent a claims stabilization reserve, the policyholder's net cost of insurance would typically be higher than in a policy without a claims stabilization reserve. The claims stabilization reserve is sometimes referred to as a mortality reserve or a mortality retention reserve. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") account and a provision that allows for the recovery of the upfront [deferred acquisition costs tax](https://asc.understandingaccounting.org/glossary/d/#deferred-acquisition-costs-tax "Section 848 of the Internal Revenue Code requires insurance entities to capitalize certain policy acquisition costs and defer deducting them in determining the insurer's tax liability. These costs are known as the deferred acquisition costs tax and are based on a percentage of the premium received as specified by the Internal Revenue Code. The initial deferred acquisition costs tax is deducted from a policyholder's policy account balance when the premium is paid. The deferred acquisition costs tax is credited back to the policyholder's policy account balance as the tax deduction is recognized in the insurer's tax return. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") over 11 years on a certificate-by-certificate basis even when an individual certificate is surrendered. The remaining balance in the claims stabilization reserve is paid out in cash to Entity TKO upon surrender of the final certificate. At December 31, 20X5, the individual components of Entity TKO's policy have the following values: 1. a [Policy account balance](https://asc.understandingaccounting.org/glossary/p/#policy-account-balance "At any point in time, this is the amount held by the insurance entity on behalf of the policyholder. This balance may be held in a general account, a separate account (a legally segregated account), or a combination of both on the insurance entity's balance sheet. This account includes premiums received from the policyholder, plus any credited income, less any relevant charges (acquisition costs, cost of insurance, and so forth). (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") = $9,700,000 2. b [Cash surrender value](https://asc.understandingaccounting.org/glossary/c/#cash-surrender-value "The amount of cash that may be realized by the owner of a life insurance contract or annuity contract upon discontinuance and surrender of the contract before its maturity. The cash surrender value may be different from the policy account balance due to outstanding loans (including accrued interest) and surrender charges. (Note: The use of this glossary term is not consistent among legal contracts. When determining the applicability of this term, the economic substance of the item shall be taken into consideration.)") = $8,700,000 3. c Claims stabilization reserve = $500,000 4. d Deferred acquisition costs tax (on a discounted basis) = $250,000. ##### [325-30-55-3](https://asc.understandingaccounting.org/asc/325/30/#325-30-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:21.128Z to 2026-09-09T23:44:21.128Z Record version: sha256:06b76637b636290957644e0a7f70f150f3195c848231c104e51492ea77e3e2fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is an illustration of the amounts to be included in Entity TKO's financial statements at December 31, 20X5, under this Subtopic. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-9894ACEA-6D10-4B86-9A91-F95B987B4F53-low.gif) Cash Surrender Value " $8,700,000 " Claims Stabilization Reserve " 500,000 " Deferred Acquisition Costs tax " 250,000 " " $9,450,000 " ##### [325-30-55-4](https://asc.understandingaccounting.org/asc/325/30/#325-30-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:21.128Z to 2026-09-09T23:44:21.128Z Record version: sha256:7080df09d96176d3f2933b900d2a0914b04f629ac7d6a46b9c15eb5c30d79dd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In evaluating the circumstances to determine the amount that could be realized under the insurance contract, Entity TKO considers the cash surrender value (policy account balance of $9,700,000 less surrender charge of $1,000,000), the claims stabilization reserve, and the deferred acquisition costs tax as each of these amounts is realizable based on the contractual terms and is not dependent on surrendering all of the policies at once. The claims stabilization reserve is included in the amount that could be realized because the claims stabilization reserve will be recovered when the final policy is surrendered and is not dependent on the surrender of all of the policies at once. The surrender charge of $1,000,000 (20 certificates at $50,000 per certificate) is not assumed to be waived because the waiver of those charges requires the surrender of all of the certificates at once. Source downloaded (UTC): 2026-09-09T23:44:27.827Z to 2026-09-09T23:44:58.835Z Record version: sha256:c4d83e957dc12aa6c2c22ad0f8ca5d979b1dfe6f56a66150173d3514244963d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40: Investments—Other — Beneficial Interests in Securitized Financial Assets ### Machine-generated study aids ```json { "summary": "ASC 325-40 governs how a holder recognizes interest income on beneficial interests in securitized financial assets — both a transferor's retained interests in securitizations accounted for as sales under Topic 860 and purchased beneficial interests. The holder measures accretable yield at acquisition as the excess of cash flows expected to be collected (or contractual cash flows, for PCD beneficial interests) over the initial investment (or initial amortized cost basis), and accretes it into interest income using the effective yield method. Expected cash flows must be updated each period; favorable or adverse changes are run first through the credit loss guidance in Topic 326, with any residual change adjusting accretable yield prospectively.", "key_points": [ "The Subtopic applies to beneficial interests that are (or must be accounted for as) debt securities under Subtopic 320-10, involve securitized assets with contractual cash flows, and do not result in consolidation of the issuing entity; high-credit-quality interests that cannot be prepaid in a way that prevents recovery of substantially all of the recorded investment are excluded (325-40-15-3).", "A transferor's initial investment in a retained beneficial interest is the fair value at the transfer date under 860-20-30-1 (325-40-30-1), and PCD initial measurement under Subtopic 326-20 (HTM) or 326-30 (AFS) applies when there is a significant difference between contractual and expected cash flows or the interest meets the PCD definition (325-40-30-1A).", "Accretable yield is initially the excess of all cash flows expected to be collected over the initial investment; for PCD beneficial interests it is the excess of all contractual cash flows over the amortized cost basis (purchase price plus initial allowance for credit losses) (325-40-30-2).", "Accretable yield is recognized as interest income over the life of the interest using the effective yield method, and the holder must continually update its estimate of cash flows expected to be collected (325-40-35-1).", "For a favorable or adverse change in expected cash flows, the investor first applies Subtopic 326-20 (HTM) or 326-30 (AFS); any change not reflected in the allowance for credit losses causes a recalculation of accretable yield as the excess of expected cash flows over the beneficial interest's reference amount (325-40-35-4, 35-4A, 35-4B).", "Changes are identified by comparing the present value of previously projected remaining cash flows with the present value of currently expected cash flows, discounted at the current yield used to accrete the interest, and the resulting adjustment is prospective as a change in estimate under Topic 250 (325-40-35-5, 35-6, 35-4C).", "The cost recovery method must be used when a beneficial interest is on nonaccrual status or the holder cannot reliably estimate cash flows (325-40-35-16), and accretable yield is never displayed on the balance sheet (325-40-45-1)." ], "categories": [ "Financial instruments", "Subsequent measurement", "Impairment", "Initial measurement" ], "audience_level": "advanced", "student_note": "This is the income-recognition companion to the CECL rules: after ASU 2016-13, credit deterioration goes through the Topic 326 allowance first, and only leftover changes in expected cash flows reset the accretable yield — a common mistake is still treating adverse changes as a direct yield/impairment write-down in the old EITF 99-20 fashion. Note also that a beneficial interest in equity form can still be inside this Subtopic if it meets the definition of a debt security.", "related_topics": [ "860-20", "320-10", "326-20", "326-30", "815-15", "310-30" ], "key_concepts": [ "beneficial interests", "securitized financial assets", "accretable yield", "effective yield method", "cash flows expected to be collected", "purchased financial assets with credit deterioration", "reference amount", "cost recovery method" ] } ``` Source downloaded (UTC): 2026-09-09T23:44:27.827Z to 2026-09-09T23:44:27.827Z Record version: sha256:25713605f76da2cde993f46589e474fd7a3d2eabc58daefbf00c9822afa4faa9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/40/#00-status) SEC content: no ##### [325-40-00-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:27.827Z to 2026-09-09T23:44:27.827Z Record version: sha256:6f5b419b5487ea51d7e54b7a2984a5baed637ffb5289eaf3b656393046984ee3 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
Beneficial InterestsAmendedAccounting Standards Update No. 2009-1612/23/2009
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (2nd def.)AddedAccounting Standards Update No. 2016-1912/14/2016
Purchased Financial Assets with Credit DeteriorationAmendedAccounting Standards Update No. 2016-1912/14/2016
Purchased Financial Assets with Credit DeteriorationAddedAccounting Standards Update No. 2016-1306/16/2016
325-40-05-1AmendedAccounting Standards Update No. 2009-1612/23/2009
325-40-15-2AmendedAccounting Standards Update No. 2009-1612/23/2009
325-40-15-3AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-15-4AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-15-5AmendedAccounting Standards Update No. 2012-0410/01/2012
325-40-15-6AmendedAccounting Standards Update No. 2016-0101/05/2016
325-40-25-2AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-25-2AmendedAccounting Standards Update No. 2016-0101/05/2016
325-40-30-1AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-30-1AAddedAccounting Standards Update No. 2016-1306/16/2016
325-40-30-2AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-30-4AmendedAccounting Standards Update No. 2009-1612/23/2009
325-40-35-1AmendedAccounting Standards Update No. 2025-1212/17/2025
325-40-35-2SupersededAccounting Standards Update No. 2016-1306/16/2016
325-40-35-2AmendedAccounting Standards Update No. 2016-0101/05/2016
325-40-35-3AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-4 through 35-4B
AmendedAccounting Standards Update No. 2025-1212/17/2025
325-40-35-4AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-4A through 35-4C
AddedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-6AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-6AAddedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-7AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-8SupersededAccounting Standards Update No. 2016-1306/16/2016
325-40-35-9AmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-10SupersededAccounting Standards Update No. 2025-1212/17/2025
325-40-35-10AmendedAccounting Standards Update No. 2009-1612/23/2009
325-40-35-10AAmendedAccounting Standards Update No. 2016-1306/16/2016
325-40-35-10BSupersededAccounting Standards Update No. 2016-1306/16/2016
325-40-35-11SupersededAccounting Standards Update No. 2009-1612/23/2009
325-40-35-12SupersededAccounting Standards Update No. 2009-1612/23/2009
325-40-35-13SupersededAccounting Standards Update No. 2016-1306/16/2016
325-40-35-14SupersededAccounting Standards Update No. 2016-1306/16/2016
325-40-35-14AmendedAccounting Standards Update No. 2009-1612/23/2009
325-40-35-15SupersededAccounting Standards Update No. 2009-1612/23/2009
325-40-55-1SupersededAccounting Standards Update No. 2016-1306/16/2016
325-40-55-1AmendedAccounting Standards Update No. 2015-1006/12/2015
325-40-55-2 through 55-25SupersededAccounting Standards Update No. 2009-1612/23/2009
Source downloaded (UTC): 2026-09-09T23:44:30.336Z to 2026-09-09T23:44:30.336Z Record version: sha256:8025cbf047785469f09131afa8a7ab4968eb70cfdad16f57afdc693338512982 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/40/#05-overview-and-background) SEC content: no ##### [325-40-05-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:30.336Z to 2026-09-09T23:44:30.336Z Record version: sha256:c63f23d3dcaa7947dacb758b217e032d21329728470ae9e43ff73393776ade60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses accounting for a transferor's interests in securitized transactions accounted for as sales (see Topic 860) and purchased [beneficial interests](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity."). Collectively, these interests are referred to in this Subtopic as beneficial interests. ##### [325-40-05-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:30.336Z to 2026-09-09T23:44:30.336Z Record version: sha256:de108eb5868dd66ee4a74566070ae6378a3e577b1a3ba32f0f57bccb0a25f86e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in cash flows expected to be collected might arise from prepayments, from credit concerns, from changes in interest rates, or for other reasons. ##### [325-40-05-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:30.336Z to 2026-09-09T23:44:30.336Z Record version: sha256:5c215ccb4afa96a7ecc32537ba8ed9b8b8295830ac6e432f7cd5067f845dd0ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:e47dd3909fbc701038203d69548c11a4abfa68209bbe26dfa54e073956c208f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/40/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [325-40-15-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:f6d6545d5f2508f25518500713e8901d558e640a6b592767e439de5c00d214b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Instruments ##### [325-40-15-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:cb4a98600e989d05c8942e8ccb051c43896ae33c640bf368860f3412e2e48890 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to a transferor's interests in securitization transactions that are accounted for as sales under Topic 860 and purchased [beneficial interests](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.") in securitized financial assets. ##### [325-40-15-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:8d33a9eb5fcaaa0b0759ac0e49d6116b87b40ac072b7d2be60dc88e2f11857c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to beneficial interests that have all of the following characteristics: 1. a Are either debt securities under Subtopic 320-10 or required to be accounted for like debt securities under that Subtopic pursuant to paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2). 2. b Involve securitized financial assets that have contractual cash flows (for example, loans, receivables, debt securities, and guaranteed lease residuals, among other items). Thus, the guidance in this Subtopic does not apply to securitized financial assets that do not involve contractual cash flows (for example, common stock equity securities, among other items). See paragraph [320-10-35-38](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-38) for guidance on beneficial interests involving securitized financial assets that do not involve contractual cash flows. 3. c Do not result in consolidation of the entity issuing the beneficial interest by the holder of the beneficial interests. 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 5. e Are not beneficial interests in securitized financial assets that have both of the following characteristics: 1. 1 Are of high credit quality (for example, guaranteed by the U.S. government, its agencies, or other creditworthy guarantors, and loans or securities sufficiently collateralized to ensure that the possibility of credit loss is remote) 2. 2 Cannot contractually be prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment. ##### [325-40-15-4](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:0eb515d51923fa4b814011aea67575382f51f33187991af5718589177bd61f07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition of interest income on beneficial interests that have both of the characteristics described in (e) in the preceding paragraph, see Subtopic 320-10. For guidance on determining the allowance for credit losses on beneficial interests that have both of the characteristics described in (e) in the preceding paragraph (other than trading debt securities), see Topic 326 on measurement of credit losses. ##### [325-40-15-5](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:2370e314d24aef6a4211b1781e3047a2166694e7747ae17ba9a6e15ffa28d989 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A beneficial interest in securitized financial assets that is in equity form may meet the definition of a [debt security](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions."). For example, some beneficial interests issued in the form of equity represent solely a right to receive a stream of future cash flows to be collected under preset terms and conditions (that is, a creditor relationship), while others, according to the terms of the special-purpose entity, must be redeemed by the issuing entity or must be redeemable at the option of the investor. Consequently, those beneficial interests would be within the scope of both this Subtopic and Topic 320 because they are required to be accounted for as debt securities under that Topic. ##### [325-40-15-6](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:65a1df9542d62fb129b413f9c67f3fb27bba83d2e954a0d3a7a02d0b1437aa43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Beneficial interests issued in the form of equity that do not meet the criteria in the preceding paragraph shall be accounted for under the applicable provisions of Subtopic 323-10, the applicable consolidation guidance (see, for example, Subtopic 810-10), or Subtopic 321-10. ##### [325-40-15-7](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:b6e5702a2a2996ba8e9631615385573d998a6f7fc217cd1afdb3c6507fb2f00f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For income recognition purposes, beneficial interests classified as trading are included in the scope of this Subtopic because it is practice for certain industries (such as banks and investment companies) to report interest income as a separate item in their income statements, even though the investments are accounted for at fair value. ##### [325-40-15-8](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:7ef1a6d0605754ab910ded2c6b1befd25a3b2132a3e14802182167cabebdec25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Included in the scope of this Subtopic are the host contract portion of a hybrid beneficial interest that requires separate accounting for an embedded derivative under paragraphs [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1); [815-15-25-11 through 25-14](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-11) ; and [815-15-25-26 through 25-29](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-26) when the host contract otherwise meets the scope of this Subtopic. The issue of when and how a hybrid contract is to be separated into its component parts is an implementation issue of Topic 815 and, therefore, not within the scope of this Subtopic. ##### [325-40-15-9](https://asc.understandingaccounting.org/asc/325/40/#325-40-15-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:33.248Z to 2026-09-09T23:44:33.248Z Record version: sha256:633c6c362bb02f84ce0778bcb62c24f925b268f1b7ab65b8f252c5e9f67bc051 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to hybrid beneficial interests measured at fair value pursuant to paragraphs [815-15-25-4 through 25-6](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-4) for which the transferor does not report interest income as a separate item in its income statements. Source downloaded (UTC): 2026-09-09T23:44:39.151Z to 2026-09-09T23:44:39.151Z Record version: sha256:169cff9af67a4a2486f25e65e97f9a20e343cedef38709775f7eabd4d32b82bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/40/#25-recognition) SEC content: no ##### [325-40-25-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:39.151Z to 2026-09-09T23:44:39.151Z Record version: sha256:c3b5fcbcb9438957e416ca703f6bf31fd0ba3b12a5b96075fd668b8a7149d8bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying amount of the [beneficial interest](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.") used for purposes of measuring interest income shall be adjusted based on the application of the accounting model described in this Subtopic. ##### [325-40-25-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:39.151Z to 2026-09-09T23:44:39.151Z Record version: sha256:49e7a0be0c995b90f145ea5977b4b94bf9b57195e5c4609f865b38e29b660dc0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The difference between the carrying amount and the fair value of a beneficial interest classified as a trading debt security shall be recorded through earnings as a gain or a loss. ##### [325-40-25-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:39.151Z to 2026-09-09T23:44:39.151Z Record version: sha256:7dc6c2a49b07969248f709b2dd7a37ce07849402914526b2ddbbaa51f88a1ee3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [325-40-35-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-1) addresses how the holder shall recognize accretable yield. Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:d1d25e137cf37f192db33829afba96a05b4d37b1cf48345ceae90f2854258b35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/40/#30-initial-measurement) SEC content: no #### Initial Investment ##### [325-40-30-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:5efb8678ad9ec802e1d6fb0020f99e44f075fda8278e9edbb1b9cd13b547db26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the holder of the [beneficial interest](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.") is the transferor, the initial investment would be the fair value of the beneficial interest as of the date of transfer, as required by paragraph [860-20-30-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-1). ##### [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:e1b11e2e98370156e2e7d5a1f06716eb62dc1eb3b6bed33ecb10709dade6db9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall apply the initial measurement guidance for [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.") in Subtopic 326-20 to a beneficial interest classified as held-to-maturity and in Subtopic 326-30 to a beneficial interest classified as available for sale, if it meets either of the following conditions: 1. a There is a significant difference between contractual cash flows and expected cash flows at the date of recognition. 2. b The beneficial interests meet the definition of purchased financial assets with credit deterioration. #### Accretable Yield ##### [325-40-30-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:c2cad393c129272cbb2623c5ccc2b06e9d9b5b5feac48e32a54fe54d8aa8eff0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For beneficial interests that do not apply the accounting for purchased financial assets with credit deterioration, the holder shall measure accretable yield initially as the excess of _all cash flows expected to be collected_ attributable to the beneficial interest estimated at the acquisition-transaction date (the transaction date) over the initial investment. For beneficial interests that apply the accounting for purchased financial assets with credit deterioration, the holder shall measure accretable yield initially as the excess of all contractual cash flows attributable to the beneficial interest at the acquisition-transaction date (the transaction date) over the amortized cost basis (the purchase price plus the initial allowance for credit losses). ##### [325-40-30-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:6f3bcbe0a0da6eacd1dd11ac861cd70945cad4745854a6eef2ffe17c65b8d94e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the transaction date, _all cash flows expected to be collected_ means the holder's estimate of the amount and timing of estimated future principal and interest cash flows used in determining the purchase price or the holder's fair value determination for purposes of determining a gain or loss under Topic 860. ##### [325-40-30-4](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:7311e28f8e2d30d2e4391b3c07a5b2e42361a0f5935021f8fd14ef290c2514c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [325-40-55-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-55-1) for implementation guidance. Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:ce35ce09cc69867126623c1cc4e8fbeef477adeb5c8544a5a32125e2c291eb11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/40/#35-subsequent-measurement) SEC content: no #### Accretable Yield ##### [325-40-35-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:e5ce9ff29d16741f9b2869e21b9ce58127e0624036977b330b605851549280aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The holder shall recognize accretable yield as interest income over the life of the [beneficial interest](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.") using the effective yield method. The holder of a beneficial interest shall continue to update, over the life of the beneficial interest, the expectation of cash flows to be collected. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)The holder shall recognize accretable yield as interest income over the life of the [beneficial interest](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.") using the effective yield method. Under the effective yield method, the current yield is applied to the amount determined as the initial investment (or initial amortized cost basis for beneficial interests that apply the accounting for [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.")) minus cash received to date minus writeoff of amortized cost basis plus the yield accreted to date. The holder of a beneficial interest shall continue to update, over the life of the beneficial interest, the expectation of cash flows to be collected. ##### [325-40-35-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:8c50fcc2607f5d0ff2accf8b5a26b2d4cc56cd0f1679d00efa57017cc02fdd09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [325-40-35-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:d9bd270a618de73349858e1f4a445b8d57e05f8af41542a862a3b31a48a3056e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After the transaction date, cash flows expected to be collected are defined as the holder's estimate of the amount and timing of estimated principal and interest cash flows based on the holder's best estimate of current conditions and reasonable and supportable forecasts. ##### [325-40-35-4](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:c7286eda879804faef795db5f44e502660f24f71b7e556c21bd043ef14c93fdd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If upon evaluation of a held-to-maturity classified beneficial interest there is a favorable (or an adverse) change in cash flows expected to be collected from the cash flows previously projected, the investor shall first apply the guidance in Subtopic 326-20 on financial instruments measured at amortized cost to account for that favorable (or adverse) change. After application of the guidance in Subtopic 326-20, if the amount of the favorable (or adverse) change in cash flows expected to be collected from the cash flows previously projected is not reflected (either as an increase or as a decrease) in the allowance for credit losses in accordance with Subtopic 326-20, the investor shall recalculate the amount of accretable yield for the beneficial interest on the date of evaluation as the excess of cash flows expected to be collected over the beneficial interest's reference amount. 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)If upon evaluation of a held-to-maturity classified beneficial interest there is a favorable (or an adverse) change in cash flows expected to be collected from the cash flows previously projected, the investor shall first apply the guidance in Subtopic 326-20 on financial instruments measured at amortized cost to account for that favorable (or adverse) change. After application of the guidance in Subtopic 326-20, if the amount of the favorable (or adverse) change in cash flows expected to be collected from the cash flows previously projected is not reflected (either as an increase or as a decrease) in the allowance for credit losses in accordance with Subtopic 326-20, the investor shall recalculate the amount of accretable yield for the beneficial interest on the date of evaluation as the excess of cash flows expected to be collected over the beneficial interest's reference amount. The investor shall recalculate the current yield on the date of the evaluation as the rate that equates the cash flows expected to be collected to the beneficial interest’s reference amount. 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [325-40-35-4A](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-4A) Pending content: yes Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:e230f2aff23a8d3d0dfe2e0430f8cdf47abfb960625131780f425ee205ffb1f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If upon evaluation of an available-for-sale classified beneficial interest there is a favorable (or an adverse) change in cash flows expected to be collected from the cash flows previously projected, the investor shall apply the guidance in Subtopic 326-30 on measuring credit losses on available-for-sale debt securities to account for that favorable (or adverse) change. After application of the guidance in Subtopic 326-30, if the amount of the favorable (or adverse) change in cash flows expected to be collected from the cash flows previously projected is not reflected (either as an increase or as a decrease) in the allowance for credit losses in accordance with Subtopic 326-30, the investor shall recalculate the amount of accretable yield for the beneficial interest on the date of evaluation as the excess of cash flows expected to be collected over the beneficial interest's reference amount. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)If upon evaluation of an available-for-sale classified beneficial interest there is a favorable (or an adverse) change in cash flows expected to be collected from the cash flows previously projected, the investor shall apply the guidance in Subtopic 326-30 on measuring credit losses on available-for-sale debt securities to account for that favorable (or adverse) change. After application of the guidance in Subtopic 326-30, if the amount of the favorable (or adverse) change in cash flows expected to be collected from the cash flows previously projected is not reflected (either as an increase or as a decrease) in the allowance for credit losses in accordance with Subtopic 326-30, the investor shall recalculate the amount of accretable yield for the beneficial interest on the date of evaluation as the excess of cash flows expected to be collected over the beneficial interest's reference amount. The investor shall recalculate the current yield on the date of the evaluation as the rate that equates the cash flows expected to be collected to the beneficial interest’s reference amount. ##### [325-40-35-4B](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-4B) Pending content: yes Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:963e7c83b6b4cf48871efa01970b168bf8b9308cae6e1eedbeee9b1f9e4bdc63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reference amount in paragraphs [325-40-35-4 through 35-4A](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-4) is equal to the initial investment (or initial amortized cost basis for beneficial interests that apply the accounting for purchased financial assets with credit deterioration) minus cash received to date minus writeoff of amortized cost basis plus the yield accreted to date. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)The reference amount in paragraphs [325-40-35-4 through 35-4A](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-4) is equal to the initial investment (or initial amortized cost basis for beneficial interests that apply the accounting for purchased financial assets with credit deterioration) minus cash received to date minus writeoff of amortized cost basis minus the allowance for credit losses plus the yield accreted to date. ##### [325-40-35-4C](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-4C) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:eed5ea726d9b6ab12ba93278ef1dabb6980d0c4892c3b74e24986c7a4f10b6f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Subtopic, a favorable (or an adverse) change in cash flows expected to be collected is considered in the context of both timing and amount of the cash flows expected to be collected. Based on cash flows expected to be collected, interest income may be recognized on a beneficial interest even if the net investment in the beneficial interest is accreted to an amount greater than the amount at which the beneficial interest could be settled if prepaid immediately in its entirety. The adjustment shall be accounted for prospectively as a change in estimate in conformity with Topic 250, with the amount of periodic accretion adjusted over the remaining life of the beneficial interest. ##### [325-40-35-5](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:73c6b25edf7c70e183ca6e28782a09081afae391d0d1a577f7bf996cdee8aaf3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Determining whether there has been a favorable (or an adverse) change in cash flows expected to be collected from the cash flows previously projected (taking into consideration both the timing and amount of the cash flows expected to be collected) involves comparing the present value of the remaining cash flows expected to be collected at the initial transaction date (or at the last date previously revised) against the present value of the cash flows expected to be collected at the current financial reporting date. ##### [325-40-35-6](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:8628df9b7cae274eba1eac3b2643e9bc2f9024a284db3c535e773fbebdd0f0a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cash flows, including the assessment of expected credit losses, shall be discounted at a rate equal to the current yield used to accrete the beneficial interest. #### Credit Losses ##### [325-40-35-6A](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-6A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:513960943d8aaeddb45d311f474977bdecdde1fc7695862093c9abf8c15d685e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall account for credit losses on beneficial interests classified as held to maturity and available for sale in accordance with Topic 326. ##### [325-40-35-7](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:c772e6daf811d2d321824c3fdac3ebf2ca622b275d90ee60b97fc66bab62cdcc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall use the present value of expected future cash flows technique to measure credit losses on beneficial interests. If the present value of the original estimate at the initial transaction date (or the last date previously revised) of cash flows expected to be collected is less than the present value of the current estimate of cash flows expected to be collected, the change is considered favorable. If the present value of the original estimate at the initial transaction date (or the last date previously revised) of cash flows expected to be collected is greater than the present value of the current estimate of cash flows expected to be collected, the change is considered adverse. ##### [325-40-35-8](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:d3342491c94d51e0e1f484b428920d73161e30a4445695e293e86b0a475e9612 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [325-40-35-9](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:91c8bd3c745290062011b23ca5bed0ee0085a43b4b157454bda91a3d3dad58b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, unless the guidance in Topic 326 indicates that a credit loss has occurred, changes in the interest rate of a plain-vanilla, variable-rate beneficial interest generally should not result in the recognition and measurement of a credit loss (a plain-vanilla, variable-rate beneficial interest does not include those variable-rate beneficial interests with interest rate reset formulas that involve either leverage or an inverse floater). ##### [325-40-35-10](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-10) Pending content: yes Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:2e7c0bd4f61bb4ffe8634e7ba94dd9bcebf55969cfb164d10a1ea672b269bcb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [325-40-55-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-55-1) for implementation guidance. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)[Paragraph superseded by Accounting Standards Update No. 2025-12](https://asc.understandingaccounting.org/updates/asu-2025-12/). ##### [325-40-35-10A](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-10A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:ba3dc30e9c0feddc550437faf425539750bf2a601289946130e5fb554255818e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is inappropriate to automatically conclude that no credit loss in a security exists because all of the scheduled payments to date have been received. However, it also is inappropriate to automatically conclude that every decline in fair value represents a credit loss. Further analysis and judgment are required to assess whether a decline in fair value is an indicator that the holder will not collect all of the contractual cash flows or cash flows expected to be collected from the security. The more severe the decline in fair value, the more persuasive the evidence that is needed to overcome the premise that the holder will not collect all of the contractual cash flows or cash flows expected to be collected from the issuer of the security. ##### [325-40-35-10B](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-10B) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:73d4e0573f00b5a46807b80650541ec9c01538d5acf6754a0b4b95b1dbec54c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [325-40-35-10C](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-10C) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:0366e096e86a5819481a6567dd35fd238c583bf89b518223938430dc997cabd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [325-40-35-10D](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-10D) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:b417793e946374913754350f0939e2a9a7d6819ddeb30cafdb7f0b00f0127351 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [325-40-35-11](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:172252ebb56a2442280fa31b85cb9be3c080573b18bc91533d6ef537a3d8a0e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). ##### [325-40-35-12](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:576e97f92227dae334138eaf43492fd2e12090a4d847be746dcf710fdc705f17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). ##### [325-40-35-13](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:3cbbedadcf727aa19b520173fd6832aeecec96a457f8817d92510a56e45047ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [325-40-35-14](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:b94d30deaaf397893c8fbeda2ae3b69e5dc3b89e952839997d85183d5b53090a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [325-40-35-15](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:0bb3403d39678f80ad5c0c4b41f5bf806fd00378f76e94064ae8c05cbcec1041 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). #### Nonaccrual Status—Cash Flows Not Reliably Estimable ##### [325-40-35-16](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:45.377Z to 2026-09-09T23:44:45.377Z Record version: sha256:ca75abb05565597b6408b474e3f8d0f0cf41f043b1e0c17dcc0818fe706058a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not address when a holder of a beneficial interest would place that interest on nonaccrual status or when a holder cannot reliably estimate cash flows. However, for beneficial interests placed on nonaccrual status or when a holder cannot reliably estimate cash flows, the cost recovery method shall be used. Source downloaded (UTC): 2026-09-09T23:44:49.329Z to 2026-09-09T23:44:49.329Z Record version: sha256:9d43f7b2927856f2be10bc7431e91e4bda822b953ea9cf2f2beab42c2eab99ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/40/#45-other-presentation-matters) SEC content: no ##### [325-40-45-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:49.329Z to 2026-09-09T23:44:49.329Z Record version: sha256:c44aa3512094723b77447fe6728ad4aec78720b534d4ae6c7ac2645f8db505cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount of accretable yield shall not be displayed in the balance sheet. Source downloaded (UTC): 2026-09-09T23:44:52.788Z to 2026-09-09T23:44:52.788Z Record version: sha256:fcbdd6f5ca652e86213ff9d8c0b17ad6ef69bc4fde2dcd34a0a6408f677a3052 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/325/40/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [325-40-55-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:52.788Z to 2026-09-09T23:44:52.788Z Record version: sha256:5b6ddc99f52c9d53b97ffc9ae5d27675942180c105d2c9a79f097ca7d65fb80f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [325-40-55-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:52.788Z to 2026-09-09T23:44:52.788Z Record version: sha256:cf2fdfaf8aabad1dd658ad9e2819b4ad506c5356d157891ccc9cd79acdcefe8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 325-40-55-2 through 55-25 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/325/40/#325-40-55-2). Source downloaded (UTC): 2026-09-09T23:44:56.279Z to 2026-09-09T23:44:56.279Z Record version: sha256:80b76e9fcc419a5b7cdfd944ef315c3ceed557ed3ee62fee7db57d6e00efa1a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/325/40/#65-transition-and-open-effective-date-information) SEC content: no ##### [325-40-65-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:56.279Z to 2026-09-09T23:44:56.279Z Record version: sha256:7c248bc782a01edef424f833af9cbb7865455ed65d78ca254adac0cf0bd3b43f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 03/23/2010 after the end of the transition period stated in FSP EITF 99-20-1, _Amendments to the Impairment Guidance of EITF Issue No. 99-20_. Source downloaded (UTC): 2026-09-09T23:45:01.186Z to 2026-09-09T23:45:25.642Z Record version: sha256:7ff8b2759c595a84d6a4a0fe52a7fef3dc7ec7b97ec5b9260d0dfba3930044d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905: Investments—Other — Agriculture ### Machine-generated study aids ```json { "summary": "ASC 325-905 governs how agricultural cooperatives account for investments in other cooperatives and how patrons (members) account for their investments in a cooperative. The core rule is that these nonmarketable long-term investments are carried at cost — including allocated equities and per-unit retains recorded at face value — rather than as equity securities, with the equity method of ASC 323-10 applied only in the infrequent case where the investor's share of the investee cooperative's unallocated retained earnings is material. Carrying amounts must be written down when the patron cannot recover full carrying value, and undistributed retains are classified as noncurrent.", "key_points": [ "Investments in cooperatives are not equity securities, are usually nonmarketable and non-transferable except back to the issuing cooperative, and are made to obtain a source of supply or marketing services rather than a return on investment (325-905-05-4).", "Long-term nonmarketable investments in agricultural cooperatives are carried at cost if not impaired; ASC 323-10's equity method applies when the investor has significant influence (325-905-25-1).", "Where a cooperative allocates all earnings to patrons and has no unallocated earnings on a book basis, ASC 323-10 does not apply; the equity method is used only when the investor's share of unallocated retained earnings is material, applied with consideration of the cooperative's voting rules or statutory rights (325-905-25-2).", "Cost means the amount of any cash investment plus the face amount of all written notices of allocation — per-unit retains, capital equity credits, revolving fund certificates, and certificates of equity (325-905-30-1); patrons record per-unit retains at face value (325-905-30-3).", "The carrying amount must be reduced if the patron cannot recover full carrying value; at a minimum the excess of the investee's unallocated losses over unallocated equities is recognized based on the patron's proportionate share of total equity, unless full recovery is demonstrated to be probable (325-905-35-1).", "Recoverability factors include whether losses were identifiable, isolated and nonrecurring; the investee's long-term profitability history; and whether the investor has ceased or will cease patronizing the cooperative (325-905-35-2).", "Retains not to be redeemed in the current year are classified as noncurrent (325-905-45-1), and a patron economically dependent on a cooperative for sale of all or a significant portion of annual production must disclose the extent of those transactions (325-905-50-1)." ], "categories": [ "Subsequent measurement", "Impairment", "Initial measurement", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The trap is assuming that a patron's sizable stake in a cooperative triggers the equity method — it usually does not, because voting is one-member-one-vote and earnings are fully allocated to patrons, so cost (including retains at face value) is the default. Watch the impairment trigger: unallocated losses exceeding unallocated equities force a write-down unless full recovery is probable.", "related_topics": [ "905-10", "905-605", "323-10", "321-10", "325-20" ], "key_concepts": [ "agricultural cooperative", "patron", "per-unit retains", "allocated equities", "notices of allocation", "cost method", "unallocated losses", "economic dependency disclosure" ] } ``` Source downloaded (UTC): 2026-09-09T23:45:01.186Z to 2026-09-09T23:45:01.186Z Record version: sha256:a3534896fe7f12b425425060f8df90eed94842b5ca8209d977bcedf748b8f1f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/905/#00-status) SEC content: no ##### [325-905-00-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:01.186Z to 2026-09-09T23:45:01.186Z Record version: sha256:312829fb82faeb3146c7b359ffce3200d3d5f45bc6b22f7be39ef5310b5c1333 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
Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
CooperativesSupersededAccounting Standards Update No. 2014-0603/14/2014
Member of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
Nonmember of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
PatronsAmendedAccounting Standards Update No. 2014-0603/14/2014
Written Notice of AllocationAddedAccounting Standards Update No. 2014-0603/14/2014
905-325-05-1 through 05-4
AmendedAccounting Standards Update No. 2014-0603/14/2014
905-325-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-325-15-3AmendedAccounting Standards Update No. 2014-0603/14/2014
905-325-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-325-30-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-325-30-2AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-09T23:45:04.068Z to 2026-09-09T23:45:04.068Z Record version: sha256:88c1f262187b334449b9f8e9617aea2623cf6118f632d04e0a92b8851003142b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/905/#05-overview-and-background) SEC content: no ##### [325-905-05-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:04.068Z to 2026-09-09T23:45:04.068Z Record version: sha256:4e7eaa647ef51432fa1bdbd86c87a2ae85c0a517dc083a3620a34f24074ee2cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses all other investments for entities in the agricultural industry. The guidance for accounting by different entities in the agricultural industry is presented in the following two Subsections: 1. a Cooperatives 2. b Cooperatives—[Patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative."). ### Cooperatives ##### [325-905-05-2](https://asc.understandingaccounting.org/asc/325/905/#325-905-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:04.068Z to 2026-09-09T23:45:04.068Z Record version: sha256:38319d9d1620c7718eb5ce98f4de9117d84610febd0634cb4b26d9ea63e34ce3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives Subsections provide guidance for an [agricultural cooperative](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.") if it holds investments in other cooperatives. ### Cooperatives—Patrons ##### [325-905-05-3](https://asc.understandingaccounting.org/asc/325/905/#325-905-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:04.068Z to 2026-09-09T23:45:04.068Z Record version: sha256:ee03be90efbdc53310606ec81e2d8c4a7826818a4fcfb215b475fca6248bd6a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—[Patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") Subsections provide guidance for a patron's investments in cooperatives. ##### [325-905-05-4](https://asc.understandingaccounting.org/asc/325/905/#325-905-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:04.068Z to 2026-09-09T23:45:04.068Z Record version: sha256:9aab67114c08209c7eb2ed3ff1baf81002d227682cc80f8056561f398cebf077 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Member patrons provide most of the capital required by [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association."). The capital usually represents long-term investments acquired through initial cash investments, [retains](https://asc.understandingaccounting.org/glossary/r/#retains "Amounts determined on a per-unit basis or as a percentage of patronage earnings that are withheld by cooperatives from distributions and allocated to patrons' capital accounts."), or noncash [patronage](https://asc.understandingaccounting.org/glossary/p/#patronage "The amount of business done with a cooperative by one of its patrons. Patronage is measured by either the quantity or value of commodities received from patrons by a marketing cooperative and the quantity or value of the goods and services sold to patrons by a supply cooperative.") allocations. Voting rights for those investments are usually based on one-member-one-vote or limited weighted voting rather than on the number or amount of securities or other evidence of equity ownership held. The significance of investments by patrons results primarily from the purchasing or marketing rights and participation in the operating earnings. The investments are made primarily to obtain an economical source of supply or marketing services and not on the expectation of a return on investment. Investments in cooperatives are not equity securities and usually are not readily marketable, and transfer or sale, other than back to the issuing cooperative, is usually restricted or prohibited. As such, the operations of cooperatives have many of the attributes of corporate joint ventures or partnerships. Source downloaded (UTC): 2026-09-09T23:45:06.056Z to 2026-09-09T23:45:06.056Z Record version: sha256:abc5f697b5cc45917ece8431cbc33928bd67a57d2e4620a7f57236d59c0e52ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/905/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-905-15-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:06.056Z to 2026-09-09T23:45:06.056Z Record version: sha256:52d1f23a56ab4a625512bd3d6316e210c76e371cd684e34a0388c076b89cc68f 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 the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. ### Cooperatives ##### [325-905-15-2](https://asc.understandingaccounting.org/asc/325/905/#325-905-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:06.056Z to 2026-09-09T23:45:06.056Z Record version: sha256:40b898b6c519abcbbecc75ec0592dbc1ce4c01308a18b92f711c5e01b18f5fa6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Cooperatives Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. ### Cooperatives—Patrons ##### [325-905-15-3](https://asc.understandingaccounting.org/asc/325/905/#325-905-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:06.056Z to 2026-09-09T23:45:06.056Z Record version: sha256:0b00efac15682eb5ea3c4bcb78e6c5acd0ec1fb8f22934ef92ca020f6bef6601 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—[Patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Cooperatives—Patrons Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. Source downloaded (UTC): 2026-09-09T23:45:12.476Z to 2026-09-09T23:45:12.476Z Record version: sha256:d22c00b9abdb08a2067732b1bd7f81b90b306f028a8ee4a66e2b23081aad85bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/905/#25-recognition) SEC content: no ### Cooperatives—Patrons ##### [325-905-25-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:12.476Z to 2026-09-09T23:45:12.476Z Record version: sha256:2050a207b42a69226c7b6769fa1192c4c913f53dc829bf284ee1658d2446caba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Long-term investments, such as nonmarketable investments in [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association."), shall be carried at cost if the value of the investments is not impaired. Subtopic 323-10 requires the equity method of accounting for investments in which the investor has significant influence over an investee's operating and financial policies. ##### [325-905-25-2](https://asc.understandingaccounting.org/asc/325/905/#325-905-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:12.476Z to 2026-09-09T23:45:12.476Z Record version: sha256:78ea28074e9d60aa8988956b5acd14dfd3bf38f0e419e8026ca557c632dcd4ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a cooperative allocates all earnings to [patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") (on a tax or book basis) and there are no unallocated earnings (on a book basis), the principles set forth in Subtopic 323-10 are not applicable. In those infrequent instances when the investor's share of unallocated retained earnings of an investee cooperative is material to the investor, the equity method of accounting shall be applied in a manner that gives consideration to the voting rules or statutory rights applicable to the cooperative. ##### [325-905-25-3](https://asc.understandingaccounting.org/asc/325/905/#325-905-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:12.476Z to 2026-09-09T23:45:12.476Z Record version: sha256:210655335f8f81e4ce1238585f58f9e005e515471196de794bbf5fab3eacfc8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See also paragraphs [905-605-25-2 through 25-3](https://asc.understandingaccounting.org/asc/605/905/#605-905-25-2) concerning cooperative accounting for losses. Source downloaded (UTC): 2026-09-09T23:45:14.678Z to 2026-09-09T23:45:14.678Z Record version: sha256:ea2153f0a7a4f93d3679f5ef9fadbe1b5af78b42d52f278e3ab67504f7d1c068 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/905/#30-initial-measurement) SEC content: no ### Cooperatives ##### [325-905-30-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:14.678Z to 2026-09-09T23:45:14.678Z Record version: sha256:9776463710a038507a0bbc2819abfa028b11a5a5515a14aa434a70f108175a5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in other [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.") shall be accounted for at cost, including allocated equities and [retains](https://asc.understandingaccounting.org/glossary/r/#retains "Amounts determined on a per-unit basis or as a percentage of patronage earnings that are withheld by cooperatives from distributions and allocated to patrons' capital accounts."). For this purpose, cost means the amount of any cash investment and the face amount of all [written notices of allocation](https://asc.understandingaccounting.org/glossary/w/#written-notice-of-allocation "Any capital stock, revolving fund certificate, retain certificate, certificate of indebtedness, letter of advice, or other written notice to the recipient that states the dollar amount allocated to the patron by the cooperative and the portion that constitutes a patronage dividend.") in the form of per-unit retains, capital equity credits, revolving fund certificates, and certificates of equity. ### Cooperatives—Patrons ##### [325-905-30-2](https://asc.understandingaccounting.org/asc/325/905/#325-905-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:14.678Z to 2026-09-09T23:45:14.678Z Record version: sha256:b18e92f74d7985a33c0f65665a64c445c0daa549bb815c6a796f6d58a6f7c036 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in cooperatives shall be accounted for at cost, including allocated equities and [retains](https://asc.understandingaccounting.org/glossary/r/#retains "Amounts determined on a per-unit basis or as a percentage of patronage earnings that are withheld by cooperatives from distributions and allocated to patrons' capital accounts."). ##### [325-905-30-3](https://asc.understandingaccounting.org/asc/325/905/#325-905-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:14.678Z to 2026-09-09T23:45:14.678Z Record version: sha256:407677d42ef1505ae973bbd870ba5399e20066347b2b602974dbba896e116d7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For [patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative."), the retains represent investments in the cooperative. Patrons shall record the per-unit retains at face value. Source downloaded (UTC): 2026-09-09T23:45:17.722Z to 2026-09-09T23:45:17.722Z Record version: sha256:176f24af21408560b5932ef1b7c26dbd4c3f681f0faaba64bf3b58b51ee45359 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/905/#35-subsequent-measurement) SEC content: no ### Cooperatives—Patrons ##### [325-905-35-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:17.722Z to 2026-09-09T23:45:17.722Z Record version: sha256:77d381a3c8dadbf34885b2a67e32334ea3a093180729c2fc108a9debd35de238 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying amount of an investment in a cooperative shall be reduced if the [patron](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") is unable to recover the full carrying value of the investment. Losses unallocated by the investee may indicate such an inability, and, at a minimum, the excess of unallocated losses over unallocated equities shall be recognized by the patron based on the patron's proportionate share of the total equity of the investee cooperative, or any other appropriate method, unless the patron demonstrates that it is probable that the carrying amount of the investment in the cooperative can be fully recovered. ##### [325-905-35-2](https://asc.understandingaccounting.org/asc/325/905/#325-905-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:17.722Z to 2026-09-09T23:45:17.722Z Record version: sha256:ee4a952ede54a99f643bd8ad5d9b7310ff1f602d7a418222a65869e07558bae9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Factors to consider in making the determination include all of the following: 1. a Whether the unallocated losses resulted from identifiable, isolated, and nonrecurring events 2. b Whether the investee cooperative has been profitable over a long period of time and suffered only occasional losses that were offset by unallocated earnings or equities 3. c Whether the investor has ceased or will cease to patronize the investee cooperative on a permanent basis or for an extended period of time. Source downloaded (UTC): 2026-09-09T23:45:20.336Z to 2026-09-09T23:45:20.336Z Record version: sha256:b5e11e47eb86f20e5053a9340e49c86915ecb763f37cf425c0d997a817374aa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/905/#45-other-presentation-matters) SEC content: no ### Cooperatives—Patrons ##### [325-905-45-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:20.336Z to 2026-09-09T23:45:20.336Z Record version: sha256:250c05c285a9128e4776cb330c2358114dec0dea9833d9318847536ee10c8ee7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If [retains](https://asc.understandingaccounting.org/glossary/r/#retains "Amounts determined on a per-unit basis or as a percentage of patronage earnings that are withheld by cooperatives from distributions and allocated to patrons' capital accounts.") are not to be redeemed in the current year by the producer (that is, the [patron](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.")), the retains shall be classified as noncurrent. Source downloaded (UTC): 2026-09-09T23:45:23.768Z to 2026-09-09T23:45:23.768Z Record version: sha256:0c812668be9e24db638a992973b76538a288948bb07a1b54979811e469d9b0da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-905-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/905/#50-disclosure) SEC content: no ### Cooperatives—Patrons ##### [325-905-50-1](https://asc.understandingaccounting.org/asc/325/905/#325-905-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:23.768Z to 2026-09-09T23:45:23.768Z Record version: sha256:d98576f26f15413910a1c5a9b55575042111045d3afc05801755fab0d538af07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [patron](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") is economically dependent on a cooperative for sale of all or a significant portion of annual production, the extent of such transactions shall be disclosed in the financial statements. Source downloaded (UTC): 2026-09-09T23:45:28.689Z to 2026-09-09T23:45:50.146Z Record version: sha256:2d8e0b7eda7bd4396cf1d8d830819d5b8ea32e82aeddfad3f2a8700016480b29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940: Investments—Other — Financial Services—Brokers and Dealers ### Machine-generated study aids ```json { "summary": "This subtopic tells broker-dealers in securities how to account for equity investments or financing they provide to another entity as part of a financial-restructuring transaction, including investments made through a \"bridge entity\" formed to pool funds from several sources. Such investments (and related receivables and debt and equity securities) are measured initially at fair value (325-940-30-1) and subsequently at fair value (325-940-35-1). Consolidation of majority-owned investees is addressed by the broker-dealer consolidation guidance in 940-810-45-1.", "key_points": [ "The subtopic applies to broker-dealers in securities that make equity investments in, or provide financing to, another entity in connection with financial-restructuring transactions (325-940-05-1).", "Investments may be direct or made through a 'bridge entity' organized to accumulate funds from several sources sufficient to make the investment (325-940-05-1).", "Scope follows the broker-dealer Overall Subtopic (940-10-15), and receivables and investments in debt and equity securities that are part of a financial-restructuring transaction fall under this guidance (325-940-15-1; 325-940-15-2).", "Initial measurement of such equity or financing investments is at fair value (325-940-30-1).", "Subsequent measurement of such investments is also at fair value—no cost or amortized-cost model applies (325-940-35-1).", "For majority-owned investee entities, consolidation guidance is found at 940-810-45-1 (325-940-45-1)." ], "categories": [ "Initial measurement", "Subsequent measurement", "Fair value", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The takeaway is simple but easy to miss: broker-dealer bridge investments in restructurings are carried at fair value both at inception and thereafter, unlike ordinary equity-method or cost-basis investments. A common misunderstanding is assuming a bridge loan is a receivable carried at amortized cost—here, if it is part of the financial-restructuring transaction, fair value governs, and majority ownership can still trigger consolidation under 940-810.", "related_topics": [ "940-10", "940-325", "940-810", "820", "321", "323" ], "key_concepts": [ "broker-dealers in securities", "financial-restructuring transaction", "bridge entity", "fair value measurement", "equity investment", "bridge financing", "majority-owned investee", "debt and equity securities" ] } ``` Source downloaded (UTC): 2026-09-09T23:45:28.689Z to 2026-09-09T23:45:28.689Z Record version: sha256:7f58ecb2b7d3a517aa6c5d48528a01b2a49644cd3cec720fc718fa6de6cda5ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/940/#05-overview-and-background) SEC content: no ##### [325-940-05-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:28.689Z to 2026-09-09T23:45:28.689Z Record version: sha256:8ad5a9ff32cb90546368a97c2c73f35d828a65ce7e3177479d7477fba7231572 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses financial-restructuring transactions by brokers and dealers in securities (broker-dealers). Specifically, a broker-dealer may make investments in the form of equity or provide financing to another entity in connection with financial-restructuring transactions. These investments may take many forms, including a direct investment or an investment in an entity (sometimes referred to as a bridge entity) that is established for the purpose of accumulating funds from several sources sufficient to make the investment. Source downloaded (UTC): 2026-09-09T23:45:30.549Z to 2026-09-09T23:45:30.549Z Record version: sha256:0ba484af72aa44f40e96fafdb6b754deb1f1862efb3116b06e166f39a83ee3f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/940/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-940-15-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:30.549Z to 2026-09-09T23:45:30.549Z Record version: sha256:b8e83ad4c9f988f8b9733fde48c972f635511454ffe009f48e0d93b9cc232202 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 940-10-15) with specific qualifications noted below. #### Other Considerations ##### [325-940-15-2](https://asc.understandingaccounting.org/asc/325/940/#325-940-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:30.549Z to 2026-09-09T23:45:30.549Z Record version: sha256:ba14abc2a3968503e8c3f262ff6718dd341ae6c589b93c5cab0578c1b9bbddfd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables and investments in debt and equity securities that are part of a financial-restructuring transaction (as described in paragraphs [940-325-05-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-05-1), [940-325-30-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-30-1) and [940-325-35-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-35-1)) are subject to the related guidance in this Subtopic. Source downloaded (UTC): 2026-09-09T23:45:34.867Z to 2026-09-09T23:45:34.867Z Record version: sha256:5f9b50471afb8c3f0f6d5be8430aac6aa0224790931eb0b292dc5b5083fc59d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/940/#30-initial-measurement) SEC content: no #### Financial-Restructuring Transactions ##### [325-940-30-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:34.867Z to 2026-09-09T23:45:34.867Z Record version: sha256:31f16a553950bad897f7f74a142ebd61d6656a1eed17439639b46c737e6ff0ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in the form of equity or financing provided to another entity in connection with financial-restructuring transactions shall be measured initially at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). Source downloaded (UTC): 2026-09-09T23:45:37.617Z to 2026-09-09T23:45:37.617Z Record version: sha256:f15ed428b664e77da1f2e822fa44c7e42c5e89d89189ba43f7478daf09df02c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/940/#35-subsequent-measurement) SEC content: no #### Financial-Restructuring Transactions ##### [325-940-35-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:37.617Z to 2026-09-09T23:45:37.617Z Record version: sha256:5f5cdd74d3dbbb159bb0e21aeb045a77d4553e9682f58a5acd86639a6ce02f14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in the form of equity or financing provided to another entity in connection with financial-restructuring transactions shall be measured subsequently at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). Source downloaded (UTC): 2026-09-09T23:45:40.810Z to 2026-09-09T23:45:40.810Z Record version: sha256:b960f117e9c612ef48a4492fb7b741e5961664f6f2b587d0add07609fdc25e1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/940/#45-other-presentation-matters) SEC content: no ##### [325-940-45-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:40.810Z to 2026-09-09T23:45:40.810Z Record version: sha256:f07a8e5b45dd9db07ced5860795428bd6f478f9dbee14daa55c322747640a926 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on consolidation of majority-owned investee entities, see paragraph [940-810-45-1](https://asc.understandingaccounting.org/asc/810/940/#810-940-45-1). Source downloaded (UTC): 2026-09-09T23:45:42.825Z to 2026-09-09T23:45:42.825Z Record version: sha256:51b3a61b6812447dc6e2beff57ab74116d01214d1b710606401cfb0097e71298 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/940/#sec-00-status) SEC content: yes ##### [325-940-S00-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:42.825Z to 2026-09-09T23:45:42.825Z Record version: sha256:0e8e7f7cbf801e5adafa5366537b6b848e234934d905705d1deeafff7303355c 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
940-325-S35-1AddedAccounting Standards Update No. 2009-1009/18/2009
940-325-S99-1AddedAccounting Standards Update No. 2009-1009/18/2009
Source downloaded (UTC): 2026-09-09T23:45:46.919Z to 2026-09-09T23:45:46.919Z Record version: sha256:02d51bda1397b1e86aa1af889e9954da289e9b7a0a4bfa4bb77b3c158934e6ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/940/#sec-35-subsequent-measurement) SEC content: yes #### Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management ##### [325-940-S35-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-S35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:46.919Z to 2026-09-09T23:45:46.919Z Record version: sha256:940464bc32677c1a9e8b93dd176af269a117e0389ec220e032f26b911441e6e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [940-325-S99-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-S99-1), SEC Observer Comment: Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management, for SEC Staff views on accounting for nonderivative energy trading contracts for brokers and dealers. Source downloaded (UTC): 2026-09-09T23:45:50.146Z to 2026-09-09T23:45:50.146Z Record version: sha256:e60754d6ee2a1a807dbaab77aacb17196d3e43af8fd59fbb98a0279711d77f27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-940-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/325/940/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [325-940-S99-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:45:50.146Z to 2026-09-09T23:45:50.146Z Record version: sha256:95558c8a6f1999fe82591c36cff58dffe63cd7235891cd0d2bbd1f726100d393 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance prohibiting mark-to-market accounting for nonderivative energy trading contracts (see paragraph [932-330-35-1](https://asc.understandingaccounting.org/asc/330/932/#330-932-35-1)) is equally applicable to brokers and dealers, as the Guide for brokers and dealers in securities does not afford brokers and dealers special treatment in that regard. 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. Source downloaded (UTC): 2026-09-09T23:46:10.614Z to 2026-09-09T23:46:35.252Z Record version: sha256:7bdf0970ced54ffed1ae4a31c7b62497959ab8a94a69a894bbac93098d84a177 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944: Investments—Other — Financial Services—Insurance ### Machine-generated study aids ```json { "summary": "ASC 325-944 was the insurance-industry (\"Investments—Other, Insurance\") guidance within the Investments—Other topic, but every paragraph in the subtopic (Sections 05, 15, 30, 35, 40, 45, and 50) has been superseded by Accounting Standards Update No. 2016-01. As a result, the subtopic contains no operative recognition, measurement, derecognition, presentation, or disclosure requirements. Entities in the insurance industry must instead apply the equity-security and other-investment guidance retained elsewhere, principally ASC 321 and ASC 320 as amended by ASU 2016-01.", "key_points": [ "Every paragraph of ASC 325-944 — 05-1, 15-1, 30-1, 35-1 through 35-3, 40-1, 45-1 through 45-5, and 50-1 — has been superseded by Accounting Standards Update No. 2016-01.", "Because the scope paragraph (325-944-15-1) is superseded, the subtopic no longer applies to any transaction or entity.", "There is no remaining initial measurement (Section 30), subsequent measurement (Section 35), derecognition (Section 40), presentation (Section 45), or disclosure (Section 50) guidance in this subtopic.", "ASU 2016-01 relocated accounting for equity investments to ASC 321, which generally requires measurement at fair value with changes recognized in net income, eliminating the insurance-specific classification guidance formerly housed here.", "The subtopic is retained in the Codification only as a historical marker; superseded paragraphs may still be relevant for periods before the ASU 2016-01 effective date." ], "categories": [ "Financial instruments", "Transition and effective dates", "Industry-specific", "Fair value" ], "audience_level": "intermediate", "student_note": "This subtopic is a dead end — every paragraph is superseded by ASU 2016-01, so citing it as authority is an error; students should redirect to ASC 321 (and ASC 320 for debt securities) for insurance entities' investment accounting. The common misunderstanding is assuming an industry \"944\" pushdown subtopic still carries special rules simply because the heading survives in the Codification.", "related_topics": [ "321", "320", "325-20", "944", "825", "820" ], "key_concepts": [ "superseded guidance", "insurance entity investments", "equity securities", "investments—other", "fair value through net income", "transition and effective dates" ] } ``` Source downloaded (UTC): 2026-09-09T23:46:10.614Z to 2026-09-09T23:46:10.614Z Record version: sha256:0ab55445120cd3030b61411ff53bfac757b32fdcf1130b546565785268951f94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/944/#00-status) SEC content: no ##### [325-944-00-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:10.614Z to 2026-09-09T23:46:10.614Z Record version: sha256:03d9e4a5818d5346f22ac34796dfefddb9ab89bd888fb2b7df757c2602d36f2c 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
Fair Value (2nd def.)SupersededAccounting Standards Update No. 2016-0101/05/2016
Market ParticipantsSupersededAccounting Standards Update No. 2016-0101/05/2016
Orderly TransationSupersededAccounting Standards Update No. 2016-0101/05/2016
Readily Determinable Fair ValueSupersededAccounting Standards Update No. 2016-0101/05/2016
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2015-1006/12/2015
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
Related PartiesSupersededAccounting Standards Update No. 2016-0101/05/2016
944-325-05-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-325-15-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-325-30-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-325-35-1 through 35-3
SupersededAccounting Standards Update No. 2016-0101/05/2016
944-325-40-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-325-45-1 through 45-5
SupersededAccounting Standards Update No. 2016-0101/05/2016
944-325-50-1SupersededAccounting Standards Update No. 2016-0101/05/2016
Source downloaded (UTC): 2026-09-09T23:46:13.386Z to 2026-09-09T23:46:13.386Z Record version: sha256:9986f6f5240adb8d7218594efba7a95009b3b795a45d1b810a7a640408fba1dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/944/#05-overview-and-background) SEC content: no ##### [325-944-05-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:13.386Z to 2026-09-09T23:46:13.386Z Record version: sha256:93e0479279d016de493cb1d5474845c4b85bdf7d30a39773e50a65658c9b8b3b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:46:16.066Z to 2026-09-09T23:46:16.066Z Record version: sha256:118575272bf6e1c32c060c8dc46ed5b2e97800c29678ea6f6ba151ce9288f258 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/944/#15-scope-and-scope-exceptions) SEC content: no ##### [325-944-15-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:16.066Z to 2026-09-09T23:46:16.066Z Record version: sha256:75a1efaedf900df9b904ac4b9c6441387344d32322505363206ad372c4a416a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:46:22.996Z to 2026-09-09T23:46:22.996Z Record version: sha256:acea531e8838a5fdb9052969898526c69f00e78b576fcede68ce4b7e57228787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/944/#30-initial-measurement) SEC content: no ##### [325-944-30-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:22.996Z to 2026-09-09T23:46:22.996Z Record version: sha256:2e8134cf227ec391e2cbdf0781396abae405a8549b61e7e94cb7072a31dd3cd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:46:26.297Z to 2026-09-09T23:46:26.297Z Record version: sha256:a808c955e2d00fa73e3b506410df9bcb61c4e09b97c7b596e479d22099e14023 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/944/#35-subsequent-measurement) SEC content: no ##### [325-944-35-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:26.297Z to 2026-09-09T23:46:26.297Z Record version: sha256:1f5e92ee99e646c3b926f6826be99d438e993ffad884092705e30994939ee1c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-944-35-2](https://asc.understandingaccounting.org/asc/325/944/#325-944-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:26.297Z to 2026-09-09T23:46:26.297Z Record version: sha256:89e26fe7ba23b1cd83584c9c11d62eabfdebf6bf756e50886a56e57a5d32efaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-944-35-3](https://asc.understandingaccounting.org/asc/325/944/#325-944-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:26.297Z to 2026-09-09T23:46:26.297Z Record version: sha256:91f305e27066b700d2067c5c1b6dbc09be36c45789549f5b4c9fe4f0a032ee59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:46:28.078Z to 2026-09-09T23:46:28.078Z Record version: sha256:6aae33883d02455567aadb2ee1c8fb0d827f3c37a44a6473495b7d264bde7101 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/325/944/#40-derecognition) SEC content: no ##### [325-944-40-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:28.078Z to 2026-09-09T23:46:28.078Z Record version: sha256:090b55c316765d7218179add55f06968f6941f4f95ffa7f3f8356a747049128a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:46:31.180Z to 2026-09-09T23:46:31.180Z Record version: sha256:8b0c4fda4ee9113b47715f4273accbb59ca584aa77044437f6b303b22efedaf7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/944/#45-other-presentation-matters) SEC content: no ##### [325-944-45-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:31.180Z to 2026-09-09T23:46:31.180Z Record version: sha256:7b5ae484cb5de1b0c5f8d9d7e5ae4632fbc8b88618d40485e0b174663b5d16fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-944-45-2](https://asc.understandingaccounting.org/asc/325/944/#325-944-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:31.180Z to 2026-09-09T23:46:31.180Z Record version: sha256:7a6c52221f207245c2d125477b63f61f32fc14df42656d1b489d33518e3978cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-944-45-3](https://asc.understandingaccounting.org/asc/325/944/#325-944-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:31.180Z to 2026-09-09T23:46:31.180Z Record version: sha256:cc85c26c6100d3c7a3f6bf7ee4732a3d9a5088474893e8e5df04d3b50eb90a3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-944-45-4](https://asc.understandingaccounting.org/asc/325/944/#325-944-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:31.180Z to 2026-09-09T23:46:31.180Z Record version: sha256:904d570b707a7c53114572347fd7c8137820078b03b16076dface3647664c3b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-944-45-5](https://asc.understandingaccounting.org/asc/325/944/#325-944-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:31.180Z to 2026-09-09T23:46:31.180Z Record version: sha256:886fef9c1b5782a322f7f1717a064a41cd9017b673093c768e03632c703695ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:46:35.252Z to 2026-09-09T23:46:35.252Z Record version: sha256:30d5385be53e0f4f17b9b06430cf89a5ff5947cc5da8ad98eff4ab7ffebe85bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-944-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/944/#50-disclosure) SEC content: no ##### [325-944-50-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:35.252Z to 2026-09-09T23:46:35.252Z Record version: sha256:170463a2b20237ca0e977b29d7767820582be6d5a51586edbf9619634320409a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-09T23:46:38.912Z to 2026-09-09T23:46:52.617Z Record version: sha256:8d9da71c237d65039c43ff04012196eb4f274f729b891773dd4e04bee79f37c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-946: Investments—Other — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "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": [ "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)." ], "categories": [ "Initial measurement", "Subsequent measurement", "Fair value", "Industry-specific" ], "audience_level": "intermediate", "student_note": "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.", "related_topics": [ "946-10", "946-320", "946-325", "320", "820", "325-40" ], "key_concepts": [ "investment company", "other investments", "transaction price", "fair value measurement", "initial measurement", "subsequent measurement", "commissions and purchase charges" ] } ``` Source downloaded (UTC): 2026-09-09T23:46:38.912Z to 2026-09-09T23:46:38.912Z Record version: sha256:b295538c0d3aea81a3b24308db31d7f8ec953963800ab67967eddab280449936 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-946-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/946/#00-status) SEC content: no ##### [325-946-00-1](https://asc.understandingaccounting.org/asc/325/946/#325-946-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:38.912Z to 2026-09-09T23:46:38.912Z Record version: sha256:706c0aaca98f3cef56facb4ceb3ca19aca1efb1bdc3815d82405b506cfa05bd0 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
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
Source downloaded (UTC): 2026-09-09T23:46:42.735Z to 2026-09-09T23:46:42.735Z Record version: sha256:c5ea2f6e78505ff73a28a2cdfe73c497eaff1fd3af4cba65c82dd1fff28762d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-946-05: 05 Background [Read section](https://asc.understandingaccounting.org/asc/325/946/#05-background) SEC content: no ##### [325-946-05-1](https://asc.understandingaccounting.org/asc/325/946/#325-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:42.735Z to 2026-09-09T23:46:42.735Z Record version: sha256:650b608774b14641c97babf8ec9b52f784c86e2c46a00389b297cbe6dbfaaf50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses an investment company's accounting for its other investments. Source downloaded (UTC): 2026-09-09T23:46:45.492Z to 2026-09-09T23:46:45.492Z Record version: sha256:0cb8948c69c2a7834c50d7044991cbecde9d35ef66dbf7737231d24f70837f08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/946/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-946-15-1](https://asc.understandingaccounting.org/asc/325/946/#325-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:45.492Z to 2026-09-09T23:46:45.492Z Record version: sha256:dbe9fc36c1036d50b5cac01a7e89d4c5b97e1cafd3166d52996aa6d9d98d2f6f 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 946-10-15. Source downloaded (UTC): 2026-09-09T23:46:50.623Z to 2026-09-09T23:46:50.623Z Record version: sha256:29dcf5a25411ee3d235b035e746911693fe685a6fe7470f041cd22b5c5baccd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-946-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/946/#30-initial-measurement) SEC content: no ##### [325-946-30-1](https://asc.understandingaccounting.org/asc/325/946/#325-946-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:50.623Z to 2026-09-09T23:46:50.623Z Record version: sha256:625c055dc9799ddabab588255227c1934f1436683beba27806e4bb67ab9206d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-09T23:46:52.617Z to 2026-09-09T23:46:52.617Z Record version: sha256:f478f6277fcee0839884d7f70dbc971ad4fa68a961585c936543529ec0016a26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-946-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/946/#35-subsequent-measurement) SEC content: no ##### [325-946-35-1](https://asc.understandingaccounting.org/asc/325/946/#325-946-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:52.617Z to 2026-09-09T23:46:52.617Z Record version: sha256:7f126238d69ce07a166953410acf2fb3174b711fb23bfb0b2a495ebe175474a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment company shall subsequently measure its other investments at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). Source downloaded (UTC): 2026-09-09T23:46:56.481Z to 2026-09-09T23:47:10.538Z Record version: sha256:76e02cc5acfbe7c70e95d73c4086c00287f0b287e9be3776eea8a8ce200ecb9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954: Investments—Other — Health Care Entities ### Machine-generated study aids ```json { "summary": "This Subtopic governs how health care entities (within the scope of Topic 954) account for investments that are NOT financial instruments — for example, investment real estate or certain oil and gas interests. Such investments are reported at amortized cost and tested for impairment under the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10. Property held for investment purposes is presented within investments on the balance sheet.", "key_points": [ "The Subtopic applies only to investments of in-scope health care entities that are other than financial instruments (325-954-15-2; 325-954-05-1).", "Non-financial-instrument investments such as real estate or certain oil and gas interests are reported at amortized cost, not fair value (325-954-35-1).", "Those investments are subject to impairment considerations consistent with the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 (325-954-35-1).", "Property held for investment purposes is presented as part of investments, per paragraph 954-360-45-1 (325-954-45-1).", "The scope follows Section 954-10-15, except that it does not cover investments of a not-for-profit, business-oriented health care entity that are held by a financially interrelated entity (325-954-15-1; 325-954-15-3)." ], "categories": [ "Subsequent measurement", "Impairment", "Presentation", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The trap is assuming all health care entity \"investments\" get fair value treatment: financial instruments do (see 954-320/954-325 and Topic 320), but real estate and similar non-financial investments stay at amortized cost with long-lived asset impairment testing under 360-10.", "related_topics": [ "954-10", "954-320", "954-360", "360-10", "320", "958-320" ], "key_concepts": [ "non-financial-instrument investments", "investment real estate", "oil and gas interests", "amortized cost", "long-lived asset impairment", "health care entities", "financially interrelated entity", "balance sheet presentation of investments" ] } ``` Source downloaded (UTC): 2026-09-09T23:46:56.481Z to 2026-09-09T23:46:56.481Z Record version: sha256:b0394804342632b769fbb59e4f02234db3c0b99292a4024cd13537f86cd25657 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/954/#00-status) SEC content: no ##### [325-954-00-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:56.481Z to 2026-09-09T23:46:56.481Z Record version: sha256:39dd1da4f2a9c9c6a62a7730e91a5586f6a1316c0292e306f746c481c6e04f1b 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
Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
Source downloaded (UTC): 2026-09-09T23:46:58.897Z to 2026-09-09T23:46:58.897Z Record version: sha256:e1d169ce962527587affa64bc872efb5fb7cfc4a292a71ff454700525f3d2101 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/954/#05-overview-and-background) SEC content: no ##### [325-954-05-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:46:58.897Z to 2026-09-09T23:46:58.897Z Record version: sha256:714aa7a4b2689d571e6365725f82149f3e3d6f4e49f43b29750bc62d8906e467 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investments of the health care entities within the scope of this Topic if those investments are not [financial instruments](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity."). Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:40f4f6f51b4b6cb4945caf1396dae4dc3b3f032ad83161e9f3c244dc4e1d7793 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-954-15-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:84107b5bc90280941dabfc636661b173b408568ce9fd25b6587e0fb2101c510c 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 954-10-15, with specific instrument exceptions noted below. #### Instruments ##### [325-954-15-2](https://asc.understandingaccounting.org/asc/325/954/#325-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:006ba3f413e6ccdd69e82246b470d73891908057ceeee2b8194543d705d5e3cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investments that are other than [financial instruments](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity."). #### Other Considerations ##### [325-954-15-3](https://asc.understandingaccounting.org/asc/325/954/#325-954-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:02.209Z to 2026-09-09T23:47:02.209Z Record version: sha256:b7f58df752ae79576ef037164cace73d35bb3609be6a03e356f30d4db8a27aac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not provide guidance on investments of a not-for-profit business-oriented health care entity that are held by a [financially interrelated entity](https://asc.understandingaccounting.org/glossary/f/#financially-interrelated-entities "A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the following characteristics: One of the entities has the ability to influence the operating and financial decisions of the other. One of the entities has an ongoing economic interest in the net assets of the other."). Source downloaded (UTC): 2026-09-09T23:47:07.535Z to 2026-09-09T23:47:07.535Z Record version: sha256:01da7f64dbae6e781b2d4edb2db0aa66e81395a93560cde5d3ea7bb5406a3ee0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/954/#35-subsequent-measurement) SEC content: no ##### [325-954-35-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:07.535Z to 2026-09-09T23:47:07.535Z Record version: sha256:aeab2ef5a96c2f38b8eaade2bd476f5eb7ddee17db223ea9fa6925d671fb9a1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other types of investments that are not [financial instruments](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.") (such as real estate or certain oil and gas interests) are reported at amortized cost and are subject to impairment considerations consistent with the Impairment or Disposal of Long-lived Assets Subsections of Subtopic 360-10. Source downloaded (UTC): 2026-09-09T23:47:10.538Z to 2026-09-09T23:47:10.538Z Record version: sha256:376d80171ada880741fe0ecd103243f205c15b97acbc1bef9d8f083d6ee2162e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/954/#45-other-presentation-matters) SEC content: no ##### [325-954-45-1](https://asc.understandingaccounting.org/asc/325/954/#325-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:10.538Z to 2026-09-09T23:47:10.538Z Record version: sha256:c4e7eeb5dec6752cbeb177ad61236d652a351393f9762ffa9d1b6757e9658876 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [954-360-45-1](https://asc.understandingaccounting.org/asc/360/954/#360-954-45-1), property held for investment purposes shall be presented as part of investments. Source downloaded (UTC): 2026-09-09T23:47:13.039Z to 2026-09-09T23:47:39.630Z Record version: sha256:1fef1a29ccbb8e1a0d5ed79628c95b44b8c58a93661737d62ad6389fc03c8f91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958: Investments—Other — Not-for-Profit Entities ### Machine-generated study aids ```json { "summary": "ASC 325-958 governs how not-for-profit entities account for \"other investments\"—those that are neither debt nor equity securities, derivatives, equity-method or consolidated investees, nor investments held by a financially interrelated entity—such as real estate, non-security mortgage notes, and oil and gas interests. Purchased other investments are initially measured at acquisition cost (including transaction fees) and contributed or agency-acquired ones at fair value. Subsequent measurement depends on the type of NFP: higher education institutions and voluntary health and welfare entities may elect carrying value or fair value, while other NFPs elect fair value or the lower of cost or fair value, applied consistently to all other investments.", "key_points": [ "The Subtopic covers investments in real estate, mortgage notes that are not debt securities, and oil and gas interests, but excludes equity securities (958-321), debt securities (958-320), Topic 815 derivatives, equity-method and consolidated for-profit or NFP investees, and interests held by a financially interrelated entity (958-20) (325-958-15-2 through 15-3).", "An investment acquired by contribution is recognized as an asset and as revenues or gains in the period received under 958-605-25-2 (325-958-25-1).", "If the NFP acquires or holds an investment as an agent with little or no discretion over use of the income and gains and losses, the transaction is reported as an agency transaction—changes in assets and liabilities rather than changes in net assets (325-958-25-2; 325-958-35-16).", "Other investments are initially measured at acquisition cost including brokerage and other transaction fees if purchased, and at fair value if received as a contribution or through an agency transaction; credit losses within Topic 326 are measured under that Topic (325-958-30-1).", "Colleges, universities, and community or junior colleges and voluntary health and welfare entities report other investments at either carrying value (cost if purchased, fair value at gift date if contributed) or fair value, with the same measurement attribute used for all other investments except those measured at fair value under 815-15-25 or the 825-10 fair value option; wasting assets are usually reported net of an allowance for depreciation or depletion (325-958-35-1 through 35-4).", "NFPs that are not colleges, universities, voluntary health and welfare entities, or health care entities report other investments at fair value or at the lower of cost or fair value, recognizing declines when aggregate fair value is below carrying amount and recoveries in later periods up to original cost (325-958-35-6 through 35-7); NFP business-oriented health care entities instead apply 954-325-35 (325-958-35-5A).", "Disclosures follow Section 958-320-50 and, for each statement of financial position presented, must include the basis for determining the carrying amount of other investments and the methods and significant assumptions used to estimate fair values of investments other than financial instruments reported at fair value (325-958-50-1 through 50-2)." ], "categories": [ "Not-for-profit", "Subsequent measurement", "Initial measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "The trap here is assuming all NFP investments are carried at fair value: only equity and debt securities get that automatic treatment—\"other investments\" like real estate and oil and gas interests carry a measurement policy election that varies by type of NFP, and the same attribute must be applied consistently across the portfolio. Also watch the agency-transaction rule, which keeps the investment off the statement of activities entirely.", "related_topics": [ "958-320", "958-321", "958-20", "958-810", "954-325", "820" ], "key_concepts": [ "other investments", "not-for-profit entities", "carrying value vs fair value", "agency transaction", "contributed investments", "lower of cost or fair value", "allowance for credit losses", "wasting assets" ] } ``` Source downloaded (UTC): 2026-09-09T23:47:13.039Z to 2026-09-09T23:47:13.039Z Record version: sha256:dd52cd3c7a98954cb8e86823f96fff7ce5870deb299a547be44ad34f49d5519a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/958/#00-status) SEC content: no ##### [325-958-00-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:13.039Z to 2026-09-09T23:47:13.039Z Record version: sha256:2ce0be1607fa8baaf746a19a0828a022d8112e8f6d443824f4b9c08532900592 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
Agency TransactionAddedAccounting Standards Update No. 2015-1006/12/2015
Agency Transactions (Not for Profits)SupersededAccounting Standards Update No. 2015-1006/12/2015
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Promise to GiveAddedAccounting Standards Update No. 2018-0806/21/2018
Readily Determinable Fair ValueSupersededAccounting Standards Update No. 2016-0101/05/2016
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2015-1006/12/2015
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
958-325-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-325-05-2AmendedMaintenance Update 2018-12 (PDF)09/10/2018
958-325-05-2AmendedAccounting Standards Update No. 2016-0101/05/2016
958-325-15-2AmendedAccounting Standards Update No. 2016-0101/05/2016
958-325-15-3AmendedAccounting Standards Update No. 2016-0101/05/2016
958-325-30-1AmendedAccounting Standards Update No. 2016-1306/16/2016
958-325-35-1AmendedAccounting Standards Update No. 2025-1212/17/2025
958-325-35-1AmendedAccounting Standards Update No. 2016-1306/16/2016
958-325-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
958-325-35-3AmendedAccounting Standards Update No. 2012-0410/01/2012
958-325-35-5AmendedAccounting Standards Update No. 2025-1212/17/2025
958-325-35-5AmendedAccounting Standards Update No. 2012-0410/01/2012
958-325-35-5AAddedAccounting Standards Update No. 2012-0410/01/2012
958-325-35-7AmendedAccounting Standards Update No. 2025-1212/17/2025
958-325-35-7AmendedAccounting Standards Update No. 2012-0410/01/2012
958-325-35-8 through 35-13
SupersededAccounting Standards Update No. 2016-0101/05/2016
958-325-35-16AmendedAccounting Standards Update No. 2015-1006/12/2015
958-325-45-1AmendedAccounting Standards Update No. 2016-0101/05/2016
958-325-45-2SupersededAccounting Standards Update No. 2016-1408/18/2016
958-325-50-2AmendedAccounting Standards Update No. 2016-0101/05/2016
958-325-50-3SupersededAccounting Standards Update No. 2016-0101/05/2016
958-325-50-6SupersededAccounting Standards Update No. 2016-1408/18/2016
958-325-60-2SupersededAccounting Standards Update No. 2025-1212/17/2025
Source downloaded (UTC): 2026-09-09T23:47:16.043Z to 2026-09-09T23:47:16.043Z Record version: sha256:5139399ac30d76ada8e0c67219cfeb5c9dd309637949c7865c98cc5df53f2223 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/958/#05-overview-and-background) SEC content: no ##### [325-958-05-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:16.043Z to 2026-09-09T23:47:16.043Z Record version: sha256:f60c3c8ff41c903c5ea391f2593e928356300ccac48237d4a93751c2c34e73ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Not-for-Profit Topic contains several Subtopics for investments held by [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs), because the guidance differs by form of the investment. The Subtopics are: 1. a Financially Interrelated Entities 2. b Investments—Debt Securities 3. bb Investments—Equity Securities 4. c Investments—Other 5. d Consolidation. ##### [325-958-05-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:16.043Z to 2026-09-09T23:47:16.043Z Record version: sha256:88fcf2ccd5956c6eb4faa3639ffa146c090a724c9b06d3f5023d06364a026c5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for investments other than the following: 1. a Equity securities 2. b Debt securities 3. c Investments in derivative instruments, including embedded derivatives, that are subject to the requirements of Topic 815 4. d Investments in for-profit entities that are accounted for under the equity method 5. e Investments in for-profit consolidated subsidiaries 6. f Investments in not-for-profit consolidated subsidiaries 7. g Investments held for the NFP by a [financially interrelated entity](https://asc.understandingaccounting.org/glossary/f/#financially-interrelated-entities "A recipient entity and a specified beneficiary are financially interrelated entities if the relationship between them has both of the following characteristics: One of the entities has the ability to influence the operating and financial decisions of the other. One of the entities has an ongoing economic interest in the net assets of the other."). Thus, this Subtopic provides guidance for investments of the following types, among others, unless because of their characteristics they are included in the above list: investments in real estate, mortgage notes, and oil and gas interests. Source downloaded (UTC): 2026-09-09T23:47:18.506Z to 2026-09-09T23:47:18.506Z Record version: sha256:4a5e7ebf755429227dabbe1ed0f5ed40ef298f882f71dfdc896af8429dd42687 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-958-15-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:18.506Z to 2026-09-09T23:47:18.506Z Record version: sha256:6c31ee89ca1661fad49b3ffd7647db5f99f907843de882b0d04691f8e4c3e30b 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 958-10-15, with specific instrument exceptions noted below. #### Instruments ##### [325-958-15-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:18.506Z to 2026-09-09T23:47:18.506Z Record version: sha256:077c188c1d943a2aad1a32ad9d5e4930cf24cf3809142deb76347af482b54d43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to other investments held by [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs) of the following types, among others, unless because of their characteristics they are included in paragraph [958-325-15-3](https://asc.understandingaccounting.org/asc/325/958/#325-958-15-3): 1. a Investments in real estate 2. b Mortgage notes that are not debt securities 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 5. e Oil and gas interests 6. f [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-15-3](https://asc.understandingaccounting.org/asc/325/958/#325-958-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:18.506Z to 2026-09-09T23:47:18.506Z Record version: sha256:3c01145604ece040322a87a2850a00e86b0e34d4550d623c586686a0d038436d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following investments: 1. a Equity securities, which are subject to the requirements of Subtopic 958-321 2. b Debt securities, which are subject to the requirements of Subtopic 958-320 3. c Derivative instruments, including embedded derivatives, that are subject to the requirements of Topic 815 4. d Investments in for-profit entities that are accounted for using the equity method in accordance with paragraph [958-810-15-4](https://asc.understandingaccounting.org/asc/810/958/#810-958-15-4) 5. e Investments in for-profit subsidiaries that are consolidated in accordance with paragraph [958-810-15-4](https://asc.understandingaccounting.org/asc/810/958/#810-958-15-4) 6. f Interests in NFPs that are consolidated in accordance with paragraph [958-810-25-2](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-2), [958-810-25-3](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-3), or [958-810-25-4](https://asc.understandingaccounting.org/asc/810/958/#810-958-25-4) 7. g Interests in investments held for the NFP by a financially interrelated entity, which are subject to the requirements of Subtopic 958-20. Source downloaded (UTC): 2026-09-09T23:47:24.080Z to 2026-09-09T23:47:24.080Z Record version: sha256:e9a2cdddc3ee1eccc9435df35188b8c2bf51b0d7309e5af19a46f2ae237e402f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/958/#25-recognition) SEC content: no ##### [325-958-25-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:24.080Z to 2026-09-09T23:47:24.080Z Record version: sha256:21ff00ef71dbbb6c5b3d067c2aa1d06751cf908cef92265fe24df4e20900aa4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an investment is acquired by [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution."), it shall be recognized as an asset and as revenues or gains in the period received, pursuant to paragraph [958-605-25-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-2). ##### [325-958-25-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:24.080Z to 2026-09-09T23:47:24.080Z Record version: sha256:e9dbe7fbddc7cb69d60c65bd86f51f575c74b16498513f6098d83a41ab5b04ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) acquires an investment as an [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf.") and has little or no discretion in determining how the investment income, unrealized gains and losses, and realized gains and losses resulting from that investment will be used, the investment's acquisition shall be reported as an [agency transaction](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "A type of exchange transaction in which the reporting entity acts as an agent, trustee, or intermediary for another party that may be a donor or donee."). That is, the NFP agent recognizes the acquisition as an asset and a liability rather than as a change in net assets. See paragraphs [958-605-25-23 through 25-24](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-23) for additional guidance. Source downloaded (UTC): 2026-09-09T23:47:26.551Z to 2026-09-09T23:47:26.551Z Record version: sha256:d46fb4e16b3279c671057b9a9402ee5e015bf543cb363b0102795fc6739cdc78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/958/#30-initial-measurement) SEC content: no ##### [325-958-30-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:26.551Z to 2026-09-09T23:47:26.551Z Record version: sha256:75df018fb417e923c9553bacfe02ceccc0048cd6e0f88e958123b7f617c6c92c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other investments shall be initially measured at their acquisition cost (including brokerage and other transaction fees) if they are purchased. They shall be initially measured at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") if they are received as a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") or through an [agency transaction](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "A type of exchange transaction in which the reporting entity acts as an agent, trustee, or intermediary for another party that may be a donor or donee."). Credit losses on financial instruments within the scope of Topic 326 shall be measured in accordance with that Topic. Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:48cef908e6e7859e153169156655cb688b0e694c6bacd1daef54eedb526dde62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/958/#35-subsequent-measurement) SEC content: no #### Institutions of Higher Education ##### [325-958-35-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:6be6fbc1a4b1b55a42beebc11b7bd51affdfd2f1766a3917b14174af307a5b7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Institutions of higher education, including colleges, universities, and community or junior colleges, shall subsequently report other investments at either of the following measures: 1. a Carrying value—that is, those that were acquired by purchase are reported at cost, and those that were contributed are reported at their [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") at the date of the gift. However, the carrying value shall be reduced by an allowance for credit losses (if applicable) under Topic 326. 2. b Fair value. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)Institutions of higher education, including colleges, universities, and community or junior colleges, shall subsequently report other investments at either of the following measures: 1. a Carrying value—that is, those that were acquired by purchase are reported at cost, and those that were contributed are reported at their [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") at the date of the gift. If an asset is subject to the impairment provisions of other generally accepted accounting principles (GAAP), the carrying value shall be reduced in accordance with the guidance in the applicable Subtopic. An allowance for credit losses shall be recognized (if applicable) for financial assets subject to the guidance in Topic 326. 2. b Fair value. ##### [325-958-35-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:a27ee3dd4a99f199c99de88c39141930151955b395d1679f9f386d59434b0a3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The same measurement attribute shall be used for all other investments excluding those for which the institution chose, at a specified election date, to measure at fair value pursuant to Section 815-15-25 or to the Fair Value Option Subsections of Subtopic 825-10. Investments in wasting assets are usually reported net of an allowance for depreciation or depletion. #### Voluntary Health and Welfare Entities ##### [325-958-35-3](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:3682b094b10008b2f1be9413f8496207100dfe072e29a67e3a0f4667065881b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Voluntary health and welfare entities shall subsequently report other investments at either of the following measures: 1. a Carrying value—that is, cost if purchased and fair value at the date of the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") if contributed 2. b Fair value. ##### [325-958-35-4](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:923c12c5f89cdd8c849e338b6f3db9a9586fe87c21a7c067ead67e1f3fa66412 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The same measurement attribute shall be used for all other investments excluding those for which the [voluntary health and welfare entity](https://asc.understandingaccounting.org/glossary/v/#voluntary-health-and-welfare-entity "A not-for-profit entity (NFP) that is formed for the purpose of performing voluntary services for various segments of society and that is tax exempt (organized for the benefit of the public), supported by the public, and operated on a not-for-profit basis. Most voluntary health and welfare entities concentrate their efforts and expend their resources in an attempt to solve health and welfare problems of our society and, in many cases, those of specific individuals. As a group, voluntary health and welfare entities include those NFPs that derive their revenue primarily from voluntary contributions from the general public to be used for general or specific purposes connected with health, welfare, or community services. For purposes of this definition, the general public excludes governmental entities when determining whether an NFP is a voluntary health and welfare entity.") chose, at a specified election date, to measure at fair value pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [325-958-35-5](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:77fcfdc421f08c7a43c0eaf3837d940633f5d5b4a814d5bcb5ca0d5b2d60e541 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If other investments are not equity securities and the fair value of the portfolio of those investments is below the recorded amount, it may be necessary to reduce the carrying amount of the portfolio to fair value or to provide an allowance for decline in fair value. If it can reasonably be expected that the voluntary health and welfare entity will suffer a loss on the disposition of an investment, an impairment loss shall be recognized in the period in which the decline in fair value occurs. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)If the fair value of the portfolio of other investments is below the recorded amount, it may be necessary to reduce the carrying amount of the portfolio to fair value or to provide an allowance for decline in fair value. If it can reasonably be expected that the voluntary health and welfare entity will suffer a loss on the disposition of an investment, an impairment loss shall be recognized in the period in which the decline in fair value occurs. #### Health Care Entities ##### [325-958-35-5A](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:e495b197db328a9c527843d013f5e4a6893f2263cbdaacd4b946cde6262b72c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-profit, business-oriented health care entities shall apply the guidance in Section 954-325-35. #### Other Not-for-Profit Entities ##### [325-958-35-6](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:6bb18cef08dcd1baad04f2979210aa3049543eca1ad3d7dbca2cc47fedddce3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs) that are not colleges, universities, voluntary health and welfare entities, or health care entities (see paragraph [958-10-15-3](https://asc.understandingaccounting.org/asc/958/10/#958-10-15-3)) shall report other investments using one of the following measures: 1. a Fair value 2. b The lower of cost or fair value. The same measurement attribute shall be used for all other investments excluding those for which the NFP chose, at a specified election date, to measure at fair value pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [325-958-35-7](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-7) Pending content: yes Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:519f8f2ffe3e10c7304cd41fecf3f2dcfb0e7c0986c55ac014569d970cf2a7e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If other investments are not equity securities and are carried at the lower of cost or fair value, declines in the value of those investments shall be recognized if their aggregate fair value is less than their carrying amount; recoveries of aggregate fair value in subsequent periods shall be recorded in those periods subject only to the limitation that the carrying amount shall not exceed the original cost. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)If other investments are carried at the lower of cost or fair value, declines in the value of those investments shall be recognized if their aggregate fair value is less than their carrying amount; recoveries of aggregate fair value in subsequent periods shall be recorded in those periods subject only to the limitation that the carrying amount shall not exceed the original cost. ##### [325-958-35-8](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:7f1a2eb362e2f0f21093341fcfff57278283bac3c989f016d556c74d920cc8df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-35-9](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:eee378b1dab687b116c1917e9a44e278c16e7e4481bed9c3f2817f8125ccf5bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-35-10](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:2b18f71b711da991856467470dc7a9632cd7c002cac09670ea28bdb73074db86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-35-11](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:ef2c51f5e5e531fef211dd0cd765aa268eb2f223c45e5d7f715e5751fa554bfc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-35-12](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:5ff51a8fb8e6b1475db78a2fd8723d005870dfca73f416a5bd5608ff41465281 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-35-13](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:51d5d4e2a2f2c79499a0754b4371e68a3d3dcc451a6570b2021282569e16db58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-35-14](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:a1cae2646ecca92aa345202ff8f5a928bbffe58fe2e6b648fec3a18f99a4e7a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [325-958-35-15](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:36ca71bf3b77d576c3c4649daf3a8d26f500c5e176421cf751a30752a2b0a99a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### All Not-for-Profit Entities ##### [325-958-35-16](https://asc.understandingaccounting.org/asc/325/958/#325-958-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:29.778Z to 2026-09-09T23:47:29.778Z Record version: sha256:54311163a4a8facdbd7cd34769ce9233537338dd42214272b609f1ffa28b5b11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an NFP is holding an investment as an [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf.") and has little or no discretion in determining how the investment income, unrealized gains and losses, and realized gains and losses resulting from that investment will be used, those investment activities shall be reported as [agency transactions](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "A type of exchange transaction in which the reporting entity acts as an agent, trustee, or intermediary for another party that may be a donor or donee.") and, therefore, as changes in assets and liabilities, rather than as changes in net assets. See paragraphs [958-605-25-23 through 25-24](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-23) for additional guidance. Source downloaded (UTC): 2026-09-09T23:47:32.132Z to 2026-09-09T23:47:32.132Z Record version: sha256:fac43d818b997987474483e435e8b308d9cc29b7cc11716db12cbfb4877cade6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/958/#45-other-presentation-matters) SEC content: no ##### [325-958-45-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:32.132Z to 2026-09-09T23:47:32.132Z Record version: sha256:a7d92fa4115e6c1f1638b38afeab7110e324eaf59ddbb971c91994559a11737b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reporting standards of Section 958-220-45 apply to other investments and the investment return generated by other investments held by [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs). ##### [325-958-45-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:32.132Z to 2026-09-09T23:47:32.132Z Record version: sha256:02d883ad0b70995d9163096eaf9d74124c4e5a526665de0ba0f138f784a6a600 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). Source downloaded (UTC): 2026-09-09T23:47:35.819Z to 2026-09-09T23:47:35.819Z Record version: sha256:913c19cc068da5f79abcbca2decf6f4de253821e9005ceaef95972c5d99bb21c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/958/#50-disclosure) SEC content: no ##### [325-958-50-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:35.819Z to 2026-09-09T23:47:35.819Z Record version: sha256:7880f0aaa83cb11476d520c30aa3067716fc72df1a41dc5951ce2379faf4dfdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure standards of Section 958-320-50 apply to other investments and the investment return generated by other investments held by [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs). ##### [325-958-50-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:35.819Z to 2026-09-09T23:47:35.819Z Record version: sha256:62e6884488a794a7c5db7116f73516c676af96c7173efbbb6ead53fcb1844d9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which a statement of financial position is presented, an NFP shall disclose all of the following: 1. a The basis for determining the carrying amount for other investments 2. b The method(s) and significant assumptions used to estimate the fair values of investments other than financial instruments if those other investments are reported at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-50-3](https://asc.understandingaccounting.org/asc/325/958/#325-958-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:35.819Z to 2026-09-09T23:47:35.819Z Record version: sha256:79c18619649f7b31d05e1b7840571f60f1e563b075c23281306a876c3d30d72b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [325-958-50-4](https://asc.understandingaccounting.org/asc/325/958/#325-958-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:35.819Z to 2026-09-09T23:47:35.819Z Record version: sha256:b12a0f7a87ea9d8c00140fddfccb119d8b9c3ffe967d7d2e61a1ade1ad07f562 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on disclosures about fair value measurements, see Topic 820. ##### [325-958-50-5](https://asc.understandingaccounting.org/asc/325/958/#325-958-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:35.819Z to 2026-09-09T23:47:35.819Z Record version: sha256:9ba20fe6da800b8ad901909f4370edbe81c6b98ef9c209d1b8baf56decbd6a66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on disclosures about the fair value election under Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10, see the [Fair Value Option Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of Section 825-10-50. ##### [325-958-50-6](https://asc.understandingaccounting.org/asc/325/958/#325-958-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:35.819Z to 2026-09-09T23:47:35.819Z Record version: sha256:f189efa63947979e8c429eb721adf62bf101fb989b3d8d5b64e22593c5161380 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). Source downloaded (UTC): 2026-09-09T23:47:39.630Z to 2026-09-09T23:47:39.630Z Record version: sha256:7060f2d52dd67a82cf8c199dd4b360b7c6c9f03200971c9abababa130932fb08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-958-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/325/958/#60-relationships) SEC content: no #### Derivatives and Hedging ##### [325-958-60-1](https://asc.understandingaccounting.org/asc/325/958/#325-958-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:39.630Z to 2026-09-09T23:47:39.630Z Record version: sha256:c866ee782394f096eb6ea59f53c8f1dcf5e7e6bb1073133fc39d696fbaaa09fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition by an NFP of the gain or loss on a hedging instrument or a nonhedging derivative instrument, see paragraphs [815-25-35-19](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-19) and [815-10-35-3](https://asc.understandingaccounting.org/asc/815/10/#815-10-35-3), respectively. #### Financial Services—Insurance ##### [325-958-60-2](https://asc.understandingaccounting.org/asc/325/958/#325-958-60-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:47:39.630Z to 2026-09-09T23:47:39.630Z Record version: sha256:e8270daf97d415e736105209764bb30a53e847955085c1cc49ed45eca7f34ccd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For equity securities held by NFPs that conduct insurance activities, see Subtopic 944-325. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)[Paragraph superseded by Accounting Standards Update No. 2025-12.](https://asc.understandingaccounting.org/updates/asu-2025-12/) Source downloaded (UTC): 2026-09-09T23:47:43.422Z to 2026-09-09T23:48:09.782Z Record version: sha256:1060f2be9cf50e653772e1f116d3baa7cf6e3a1619d7e6a5c09b7498c482e206 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960: Investments—Other — Plan Accounting—Defined Benefit Pension Plans ### Machine-generated study aids ```json { "summary": "ASC 325-960 (paralleling 960-325) governs how a defined benefit pension plan accounts for and reports its investments and insurance contracts. The core rule is that plan investments—equity and debt securities, real estate, and other assets other than insurance contracts—are presented at fair value at the reporting date, with purchases and sales generally recorded on a trade-date basis; insurance contracts are presented the same way as in the plan's ERISA filing (fair value or contract value). Extensive disclosure is required by general type of investment, including the plan's interest in a master trust.", "key_points": [ "Purchases and sales of securities are recorded on a trade-date basis, but settlement-date accounting is acceptable when settlement follows the reporting date if fair value did not change significantly from trade date to reporting date and the transactions do not significantly affect the composition of plan assets (325-960-25-1).", "All plan investments other than insurance contracts are presented at fair value at the reporting date, and a benefit-responsive contract that is not an insurance contract is reported as an investment contract (325-960-35-1).", "If significant, fair value is reduced by brokerage commissions and other costs normally incurred in a sale (325-960-35-2).", "Insurance contracts are presented as in the plan's ERISA annual report—either fair value or contract value determined by the insurance entity—and issuer credit quality must be evaluated when contract value is used; non-ERISA plans report as if subject to ERISA (325-960-35-3).", "A plan whose fiscal year-end is not a month-end may elect to measure investments and investment-related accounts at the nearest month-end, applied consistently, with disclosure of the election, the measurement date, and any contributions, distributions, or significant events between that date and year-end (325-960-35-4; 50-4; 50-5).", "Investments measured at fair value must be presented by general type (registered investment companies, government securities, common-collective trusts, pooled separate accounts, short-term securities, corporate bonds, common stocks, mortgages, real estate), and Topic 820 class disclosures are given by that general type; plans are exempt from 820-10-50-2B(a) disaggregation (325-960-45-2; 50-1).", "For master trusts, the plan discloses net appreciation/depreciation in fair value and other investment income, the allocation basis for net assets and investment income, its percentage interest if undivided, master trust investments by general type, and the dollar amount of its interest in each investment type and in the trust's other assets and liabilities (325-960-50-7 through 50-11)." ], "categories": [ "Subsequent measurement", "Fair value", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Employee benefit plan reporting is a favorite exam trap because plan investments are carried at fair value rather than under the normal Topic 320 categories, and insurance contracts follow the ERISA filing (possibly contract value) instead. Students often forget that the master trust disclosures require both the trust-level amounts by general type and the plan's own dollar interest in each.", "related_topics": [ "960-10", "960-325", "962-325", "965-325", "820-10", "815-10" ], "key_concepts": [ "defined benefit pension plan", "plan investments at fair value", "trade-date versus settlement-date accounting", "insurance contracts and contract value", "benefit-responsive investment contract", "master trust interest", "net asset value practical expedient", "general type of investment disclosure" ] } ``` Source downloaded (UTC): 2026-09-09T23:47:43.422Z to 2026-09-09T23:47:43.422Z Record version: sha256:103b28bb47fd7964e151b58669e3d9c8ccbf058aa33a4509b2cd4b5019bddc82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/960/#00-status) SEC content: no ##### [325-960-00-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:43.422Z to 2026-09-09T23:47:43.422Z Record version: sha256:03deb8b14f6c1014b82833513671e06dc02d804ae650fccf8f56649a48fdf449 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
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Contract ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Unallocated Contract (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Unallocated Contract (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
960-325-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-325-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-325-35-4AddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
960-325-45-1AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
960-325-45-2AddedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
960-325-50-1AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
960-325-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
960-325-50-2SupersededAccounting Standards Update No. 2015-12 (Part II)07/31/2015
960-325-50-4AddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
960-325-50-5AddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
960-325-50-6AddedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
960-325-50-7 through 50-11
AddedAccounting Standards Update No. 2017-0602/27/2017
Source downloaded (UTC): 2026-09-09T23:47:47.448Z to 2026-09-09T23:47:47.448Z Record version: sha256:7672b79d33ee9cc59ba61b5589ed4f1577ca6d2a836081ccf8918bb921299277 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/960/#05-overview-and-background) SEC content: no ##### [325-960-05-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:47.448Z to 2026-09-09T23:47:47.448Z Record version: sha256:02fdc2ee7a2956b3a4c8ee9409772877c0d190c5a2fd295732111692e26176f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investments and insurance contracts for [defined benefit pension plans](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)"). Source downloaded (UTC): 2026-09-09T23:47:49.450Z to 2026-09-09T23:47:49.450Z Record version: sha256:24d36a52309b5b43c1146f74e2a9386f713e3b399dfb8c8b75d640a087086546 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/960/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-960-15-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:49.450Z to 2026-09-09T23:47:49.450Z Record version: sha256:fe77da0254cbff53b5b3126d03cca666ff19e7c09b1f4f89a3bdd3676f002518 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 960-10-15. Source downloaded (UTC): 2026-09-09T23:47:55.284Z to 2026-09-09T23:47:55.284Z Record version: sha256:c9575143bcd5fa8602001c131ec41a6f700a237eec16854055dfdda46ffc7432 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/960/#25-recognition) SEC content: no ##### [325-960-25-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:55.284Z to 2026-09-09T23:47:55.284Z Record version: sha256:c41ca1eadd1c81de1e98159d976e3dea63fb5956d12f77cfe960840d1ba1dcac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accrual basis requires that purchases (and sales) of securities be recorded on a trade-date basis. However, if the settlement date is after the [reporting date](https://asc.understandingaccounting.org/glossary/r/#reporting-date "The date as of which information regarding the net assets available for benefits is presented."), accounting on a settlement-date basis is acceptable if both of the following conditions exist: 1. a The fair value of securities purchased (or sold) just before the reporting date does not change significantly from the trade date to the reporting date. 2. b The purchases (or sales) do not significantly affect the composition of the plan's assets available for [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment."). Source downloaded (UTC): 2026-09-09T23:47:58.288Z to 2026-09-09T23:47:58.288Z Record version: sha256:d0717192313e7a2702ff04f014e7cdaa8a42cbdd150acc92a0614ae95a4057fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/960/#35-subsequent-measurement) SEC content: no ##### [325-960-35-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:58.288Z to 2026-09-09T23:47:58.288Z Record version: sha256:6e8727a0c2387a851a49c8169189487a276246470fa67e802ce03b72b1b446e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan investments—whether equity or debt securities, real estate, or other types (excluding insurance contracts)—shall be presented at their fair value at the [reporting date](https://asc.understandingaccounting.org/glossary/r/#reporting-date "The date as of which information regarding the net assets available for benefits is presented."). A contract with benefit-responsive provisions shall be reported as an investment contract if it cannot otherwise be considered an insurance contract (see paragraph [960-325-35-3](https://asc.understandingaccounting.org/asc/325/960/#325-960-35-3)). ##### [325-960-35-2](https://asc.understandingaccounting.org/asc/325/960/#325-960-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:58.288Z to 2026-09-09T23:47:58.288Z Record version: sha256:10b9002922e0b98c65d1acfb654049b9547415d31d5b58bf41737aaae75beb0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If significant, the fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale (similar to fair value less cost to sell). ##### [325-960-35-3](https://asc.understandingaccounting.org/asc/325/960/#325-960-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:58.288Z to 2026-09-09T23:47:58.288Z Record version: sha256:2fd45282ce0b626985082380c69bddbf73c1f9bd745c0a1c596430c7dfa43c52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Insurance contracts shall be presented in the same manner as specified in the annual report filed by the plan with certain governmental agencies pursuant to the Employee Retirement Income Security Act; that is, either at fair value or at amounts determined by the insurance entity ([contract value](https://asc.understandingaccounting.org/glossary/c/#contract-value "The value of an unallocated contract that is determined by the insurance entity in accordance with the terms of the contract.")). The credit quality of the issuer also must be evaluated when using contract value to report an investment contract with significant insurance risk. A plan not subject to the Employee Retirement Income Security Act shall present its insurance contracts as if the plan were subject to the reporting requirements of that Act. ##### [325-960-35-4](https://asc.understandingaccounting.org/asc/325/960/#325-960-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:47:58.288Z to 2026-09-09T23:47:58.288Z Record version: sha256:92aac9ad80689f4a8b3d582a1b2ce22f30c828517df03e9e711abc84bd8009c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan's fiscal year-end does not coincide with a month-end, the plan may measure investments and investment-related accounts (for example, a liability for a pending trade with a broker) using the month-end that is closest to the plan's fiscal year-end. That election shall be applied consistently from year to year. Source downloaded (UTC): 2026-09-09T23:48:01.513Z to 2026-09-09T23:48:01.513Z Record version: sha256:472fdcf5de77e0640d767e27a73fd8e83980d68c3adc9dbf945069ce3dc74c5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/325/960/#40-derecognition) SEC content: no ##### [325-960-40-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:01.513Z to 2026-09-09T23:48:01.513Z Record version: sha256:03be96b71a95784bdc46e0262a15856242e5fac577d43b389146c6ac21328028 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 960-325-25 for guidance on the use of the trade-date basis in recording sales of securities. Source downloaded (UTC): 2026-09-09T23:48:04.156Z to 2026-09-09T23:48:04.156Z Record version: sha256:7f16b51320b0b7b796d014733bb65e3504dd7f44aaa9800869b0bd5bb7f14e39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/960/#45-other-presentation-matters) SEC content: no ##### [325-960-45-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:04.156Z to 2026-09-09T23:48:04.156Z Record version: sha256:bd3429b5c9225eedc30ad2ce5ecf2ec797323458fa260a8df640d0d799fa4b4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information regarding a plan's investments that are measured using fair value shall indicate whether reported fair values have been measured by quoted prices in an active market or are fair values otherwise determined. ##### [325-960-45-2](https://asc.understandingaccounting.org/asc/325/960/#325-960-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:04.156Z to 2026-09-09T23:48:04.156Z Record version: sha256:a562d9f19992e5adee4ca91a606a775c97406f603c970fac460c0f7ddd8340c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments measured using fair value in the statement of [net assets available for benefits](https://asc.understandingaccounting.org/glossary/n/#net-assets-available-for-benefits "The difference between a plan's assets and its liabilities. For purposes of this definition, a plan's liabilities do not include participants' accumulated plan benefits.") or in the notes shall be presented by general type, such as the following: 1. a Registered investment companies (for example, mutual funds) 2. b Government securities 3. c Common-collective trusts 4. d Pooled separate accounts 5. e Short-term securities 6. f Corporate bonds 7. g Common stocks 8. h Mortgages 9. i Real estate. Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:b52a536f631e3b63ebb5e4169ad1802e98c72e0e69244eb112e8d8d722cd1bda Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/960/#50-disclosure) SEC content: no ##### [325-960-50-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:cbc2fb0417b5447a3dedf61fab9a3ce86931f944eb7dbafe562cf91e3525b69a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of the plan's accounting policies shall include a description of valuation techniques and inputs used to measure the fair value of investments (as required by Section 820-10-50) and a description of the methods and significant assumptions used to measure the reported value of contracts with insurance entities. However, defined benefit pension plans are exempt from the requirements in paragraph [820-10-50-2B(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2B) to disaggregate assets by nature, characteristics, and risks. The disclosures of information by classes of assets required by Section 820-10-50 shall be provided by general type of plan assets consistent with paragraph [960-325-45-2](https://asc.understandingaccounting.org/asc/325/960/#325-960-45-2). ##### [325-960-50-2](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:6c81559ee36a2ad9ee7a1f120df352924e4462b8e3e4b09cd58e11783716f652 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-960-50-3](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:d6692ad407ec0e3506a77297ea62557e148abd676ef4b3c7f665cb1a2339e160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The historical cost of plan investments presented at fair value is neither required nor proscribed. ##### [325-960-50-4](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:b7267be1cace89edf92f3cbf5b13c11f765718fbbb9f976741223c5fd9b0d473 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If applicable, a plan shall disclose the accounting policy election to measure investments and investment-related accounts using the month-end that is closest to the plan's fiscal year-end in accordance with paragraph [960-325-35-4](https://asc.understandingaccounting.org/asc/325/960/#325-960-35-4) and the month-end measurement date. ##### [325-960-50-5](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:0ecc0c9b4e5a0379f03d59462fc9924f63cc48013afbb668c4fe03181e5976e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan measures investments and investment-related accounts in accordance with paragraph [960-325-35-4](https://asc.understandingaccounting.org/asc/325/960/#325-960-35-4) and contributions, distributions, and/or significant events (such as a plan amendment, a merger, or a termination) occur between the month-end date used to measure investments and investment-related accounts and the plan's fiscal year-end, the plan shall disclose the amounts of those contributions, distributions, and/or significant events. #### Investments Measured Using the Net Asset Value per Share Practical Expedient ##### [325-960-50-6](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:f957945bcf2e042d6803767b658e3785da94dba9471b0761919f2f1658d47007 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an investment is measured using the net asset value per share (or its equivalent) practical expedient in paragraph [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) and that investment is in a fund that files U.S. Department of Labor Form 5500 as a direct filing entity, disclosure of that investment's significant investment strategy, as discussed in paragraph [820-10-50-6A(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-6A), is not required. #### Interests in Master Trusts ##### [325-960-50-7](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:1947d048ba8c78f97a61647b0b34bc8e662a51a5ceccbb0f584ac6dace1c771e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the following in the notes to financial statements for each period for which a statement of changes in net assets available for benefits is presented: 1. a Net appreciation or depreciation in the fair value of investments of the master trust. Net appreciation or depreciation includes realized gains and losses on investments that were both purchased and sold during the period as well as unrealized appreciation or depreciation of the investments held at year-end. 2. b Investment income (exclusive of (a)). ##### [325-960-50-8](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:5a84d648a941b5b6cd601b686ae779ef399dd14d54a67efc4d81904da08eb38b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall include in the notes to financial statements both of the following: 1. a Description of the basis used to allocate both of the following: 1. 1 Net assets 2. 2 Total investment income. See paragraph [960-325-50-7](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-7) for the components of total investment income. 2. b For a plan with an undivided interest in the master trust (that is, when the plan has a proportionate, rather than a specific, interest in the master trust), its percentage interest in the master trust as of the date of each statement of net assets available for benefits presented. ##### [325-960-50-9](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:08342bb3282d5053873ce98c05ad3ae33afc55605253809f33bf1015bc12c718 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the notes to financial statements a plan shall include the investments of a master trust measured using fair value presented by general type of investment, such as the following, as of the date of each statement of [net assets available for benefits](https://asc.understandingaccounting.org/glossary/n/#net-assets-available-for-benefits "The difference between a plan's assets and its liabilities. For purposes of this definition, a plan's liabilities do not include participants' accumulated plan benefits.") presented: 1. a Registered investment companies (for example, mutual funds) 2. b Government securities 3. c Common-collective trusts 4. d Pooled separate accounts 5. e Short-term securities 6. f Corporate bonds 7. g Common stocks 8. h Mortgages 9. i Real estate. ##### [325-960-50-10](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:931fc79bd5d590cd43bee30e7c01135e242a4af012082ac85702a5c77080f0d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the dollar amount of its interest in each general type of investment held by the master trust, consistent with the disclosure required by paragraph [960-325-50-9](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-9). See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. ##### [325-960-50-11](https://asc.understandingaccounting.org/asc/325/960/#325-960-50-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:07.122Z to 2026-09-09T23:48:07.122Z Record version: sha256:23b4b7e2e73cded88616be86c4d1863c02bbc85975314b3b33737cf346643ad0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall disclose the master trust's other assets and liabilities and the dollar amount of the plan's interest in each of those other assets and liabilities. Examples of those balances include the following: 1. a Amounts due from brokers for securities sold 2. b Amounts due to brokers for securities purchased 3. c Receivables relating to derivatives 4. d Payables relating to derivatives 5. e Accrued interest and dividends 6. f Accrued expenses. See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. Source downloaded (UTC): 2026-09-09T23:48:09.782Z to 2026-09-09T23:48:09.782Z Record version: sha256:2626aef60526bcdfcd9635f5f7b2bd10bd10d755bdcd51273f06939d9599d148 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-960-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/325/960/#60-relationships) SEC content: no #### Derivatives and Hedging ##### [325-960-60-1](https://asc.understandingaccounting.org/asc/325/960/#325-960-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:09.782Z to 2026-09-09T23:48:09.782Z Record version: sha256:87dfb63d3fe952ed63ea4671f62a139a140a5ff6f4c20bde787feb530090f6bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For reporting of gains or losses on hedging instruments and nonhedging derivative instruments, see Section 815-10-35. ##### [325-960-60-2](https://asc.understandingaccounting.org/asc/325/960/#325-960-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:09.782Z to 2026-09-09T23:48:09.782Z Record version: sha256:c3d65c89269b66e637408dce2cbfe98b9bbf78ebfe96db4412a0ff4a2e9125e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For accounting for nonleveraged inflation-indexed contracts for pension obligations, see paragraph [815-15-25-50](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-50). Source downloaded (UTC): 2026-09-09T23:48:13.346Z to 2026-09-09T23:48:34.441Z Record version: sha256:c959885324e83a9006fd95a25a07af69792cbc857d5f582a7b592e06e3bb11ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962: Investments—Other — Plan Accounting—Defined Contribution Pension Plans ### Machine-generated study aids ```json { "summary": "ASC 962-325 governs how a defined contribution pension plan reports its investments and insurance contracts. The core rule is that plan investments (including derivatives) are reported at fair value under Topic 820, with two exceptions: fully benefit-responsive investment contracts are reported at contract value, and insurance contracts as defined in Subtopic 944-20 are presented the same way as in the plan's ERISA Form 5500 filing (fair value or contract value). It also prescribes trade-date recording, presentation of investments by general type, master trust disclosures, and disclosures about benefit-responsive contracts.", "key_points": [ "Plan investments are generally presented at fair value at the reporting date, reduced if significant by brokerage commissions and other costs normally incurred in a sale (962-325-35-1 and 35-1A).", "Defined contribution plans report investments, including derivative contracts, at fair value except insurance contracts and fully benefit-responsive investment contracts; contract value is the relevant measure for the portion of net assets attributable to fully benefit-responsive investment contracts (962-325-35-5 and 35-5A).", "Insurance contracts as defined by Subtopic 944-20 are presented as in the plan's ERISA annual report—either fair value or contract value—and non-ERISA plans follow as if subject to the Act (962-325-35-6).", "Each contract is evaluated individually for benefit responsiveness, and contracts with prospective interest adjustments can still be fully benefit-responsive if the crediting rate cannot be less than zero (962-325-35-9 and 35-10).", "Purchases and sales of securities are recorded on a trade-date basis; settlement-date accounting is acceptable only if fair value did not change significantly and the plan's asset composition is not significantly affected (962-325-25-1).", "A plan whose fiscal year-end is not a month-end may elect, applied consistently, to measure investments and investment-related accounts at the nearest month-end, and must disclose the election, the measurement date, and any intervening contributions, distributions, or significant events (962-325-35-1B, 50-2A, 50-2B).", "Investments measured at fair value must be presented by general type (mutual funds, government securities, common-collective trusts, common stocks, real estate, self-directed brokerage accounts, etc.), and plans must disclose master trust investments by general type plus the plan's dollar interest in each type and in the master trust's other assets and liabilities (962-325-45-5, 50-8A through 50-8C)." ], "categories": [ "Subsequent measurement", "Fair value", "Disclosure", "Compensation and benefits" ], "audience_level": "intermediate", "student_note": "This is the employee benefit plan analogue of Topic 820: nearly everything is at fair value, and the tested exception is fully benefit-responsive investment contracts (stable value/GIC-type contracts) measured at contract value. A common misunderstanding is thinking a contract is benefit-responsive whenever a third party guarantees value—the guarantee must cover participant-initiated withdrawals, loans, and transfers at contract value, and each contract is tested separately.", "related_topics": [ "962-10", "962-40", "965-325", "820-10", "944-20", "450-20" ], "key_concepts": [ "defined contribution plan", "fully benefit-responsive investment contract", "contract value", "fair value hierarchy", "net assets available for benefits", "master trust interest", "synthetic investment contract", "participant-directed investments" ] } ``` Source downloaded (UTC): 2026-09-09T23:48:13.346Z to 2026-09-09T23:48:13.346Z Record version: sha256:c9f0ba8eaa27746e11ca7f9e8c79264fed144d316b2742721402a44fbeaaa1ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/962/#00-status) SEC content: no ##### [325-962-00-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:13.346Z to 2026-09-09T23:48:13.346Z Record version: sha256:de42aa99d9c62c2e2385f915d7bc13a3bf9ecfaa3d7ab29d9512464884377bff 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
Benefit-Responsive Investment ContractSupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution PlanAmendedAccounting Standards Update No. 2014-0603/14/2014
Level 1 InputsAddedAccounting Standards Update No. 2012-0410/01/2012
Net Assets Available for BenefitsAddedAccounting Standards Update No. 2012-0410/01/2012
Sponsor (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
962-325-35-1AAddedAccounting Standards Update No. 2012-0410/01/2012
962-325-35-1BAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
962-325-35-2 through 35-4
AmendedAccounting Standards Update No. 2012-0410/01/2012
962-325-35-2AmendedAccounting Standards Update No. 2010-2509/28/2010
962-325-35-5AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-35-5AAddedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-35-6AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-35-9AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-35-9AmendedAccounting Standards Update No. 2014-0603/14/2014
962-325-35-12SupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-45-1 through 45-4
SupersededAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-45-5AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-45-5AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-45-5AmendedAccounting Standards Update No. 2010-2509/28/2010
962-325-45-7SupersededAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-45-7AmendedAccounting Standards Update No. 2012-0410/01/2012
962-325-45-10SupersededAccounting Standards Update No. 2010-2509/28/2010
962-325-50-1AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
962-325-50-1ASupersededAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-50-1AAddedAccounting Standards Update No. 2012-0410/01/2012
962-325-50-2AAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
962-325-50-2BAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
962-325-50-3AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-50-4SupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-50-5AmendedMaintenance Update 2016-11 (PDF)06/27/2016
962-325-50-6SupersededAccounting Standards Update No. 2017-0602/27/2017
962-325-50-6AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-50-6AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-325-50-7AmendedAccounting Standards Update No. 2017-0602/27/2017
962-325-50-7AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-50-8AmendedAccounting Standards Update No. 2017-0602/27/2017
962-325-50-8A through 50-8C
AddedAccounting Standards Update No. 2017-0602/27/2017
962-325-50-9AddedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-55-2AmendedAccounting Standards Update No. 2014-0603/14/2014
962-325-55-3AmendedAccounting Standards Update No. 2012-0410/01/2012
962-325-55-4AmendedAccounting Standards Update No. 2012-0410/01/2012
962-325-55-7AmendedAccounting Standards Update No. 2012-0410/01/2012
962-325-55-8AmendedAccounting Standards Update No. 2012-0410/01/2012
962-325-55-15AmendedAccounting Standards Update No. 2014-0603/14/2014
962-325-55-16SupersededAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-55-16AmendedAccounting Standards Update No. 2010-2509/28/2010
962-325-55-17AmendedAccounting Standards Update No. 2025-1212/17/2025
962-325-55-17AmendedAccounting Standards Update No. 2018-0907/16/2018
962-325-55-17AddedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-325-55-18AddedAccounting Standards Update No. 2017-0602/27/2017
Source downloaded (UTC): 2026-09-09T23:48:16.270Z to 2026-09-09T23:48:16.270Z Record version: sha256:4a05d744af549b461b48598a62bdcda5cc4569b5fc7a1a662fd289358afb89bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/962/#05-overview-and-background) SEC content: no ##### [325-962-05-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:16.270Z to 2026-09-09T23:48:16.270Z Record version: sha256:5392f14d4bdb9ec5433aaed7f7c497beb3baf91dc83fb2506a0e560394731570 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investments for defined contribution pension plans. In particular, this Subtopic provides guidance on the reporting of investment and insurance contracts held by defined contribution pension plans. ##### [325-962-05-2](https://asc.understandingaccounting.org/asc/325/962/#325-962-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:16.270Z to 2026-09-09T23:48:16.270Z Record version: sha256:69524fd161e3dd3808e532c514b7ce07f3d54e5d42506cf42766379aaec53264 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Defined benefit plans provide participants with a determinable benefit based on a formula provided for in the plans, whereas defined contribution plans provide benefits based on amounts contributed to an employee's individual account plus or minus the following: 1. a Forfeitures 2. b Investment experience 3. c Administrative expenses. ##### [325-962-05-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:16.270Z to 2026-09-09T23:48:16.270Z Record version: sha256:3e6951f5f68d7b3bff5ed37b4a2b26e4032e141379348cf0a0615f1eea6e4bd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Internal Revenue Code generally requires that all investment experience under defined contribution plans be allocated to individual account balances. ##### [325-962-05-4](https://asc.understandingaccounting.org/asc/325/962/#325-962-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:16.270Z to 2026-09-09T23:48:16.270Z Record version: sha256:19fa9f34e4d9c43c44274bdcd76599561a06d839eedca116311b3ba6a6915c7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.") provides for participant-directed investment programs if it allows participants to choose among various investment alternatives. The available alternatives are usually pooled fund vehicles, such as registered investment companies or commingled funds of banks, that provide varying kinds of investments—for example, equity funds and fixed income funds. The participant may select among the various available alternatives and periodically change that selection. Source downloaded (UTC): 2026-09-09T23:48:17.984Z to 2026-09-09T23:48:17.984Z Record version: sha256:b666421918a84864f4f7d896cbf8fc52fbd27f8d3f4b0da2ee3e2c6a53c59b9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/962/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-962-15-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:17.984Z to 2026-09-09T23:48:17.984Z Record version: sha256:f013c1a8be4e679b287ea569500c66284f0c874c94bb699ab42fc900bde96f5f 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 Topic, see Section 962-10-15. Source downloaded (UTC): 2026-09-09T23:48:22.287Z to 2026-09-09T23:48:22.287Z Record version: sha256:3c0979667ba631fc20e522c5c2065d09511a03572bb72a86a3bdc5b81428bfd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/325/962/#25-recognition) SEC content: no ##### [325-962-25-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:22.287Z to 2026-09-09T23:48:22.287Z Record version: sha256:a5ff17c9b26401b99b4c42d7c061e641c643af60555d81bb033e3307747555ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accrual basis requires that purchases and sales of securities be recorded on a trade-date basis. However, if the settlement date is after the financial statement date, accounting on a settlement-date basis is acceptable if both of the following conditions exist: 1. a The fair value of securities purchased or sold immediately before the financial statement date does not change significantly from the trade date to the financial statement date. 2. b The purchases or sales do not significantly affect the composition of the plan's assets available for benefits. Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:fb9ae9150b00554aca0fc12f50a0e59f7c3afb55259a501b7adb634db91ef8e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/962/#35-subsequent-measurement) SEC content: no #### Reporting at Fair Value ##### [325-962-35-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:b0e928e32b1ca5d2e722ffe235016d18a265440f3d38705ecee8aff46f2a335c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan investments should generally be presented at their [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") at the reporting date (see paragraph [965-325-35-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-3) for special provisions concerning the valuation of insurance contracts and paragraph [962-325-35-5](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-5) for special provisions concerning the valuation of fully benefit-responsive investment contracts). ##### [325-962-35-1A](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:a902e9515f113abe2770b90bf7561be4f7862fc226ca1a4e0ee76f8c45921070 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If significant, the fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale (similar to fair value less cost to sell). ##### [325-962-35-1B](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:f5e1585786ffa9276014521bef743c8b59c889cd28860b92d55c84cf6aab861a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan's fiscal year-end does not coincide with a month-end, the plan may measure investments and investment-related accounts (for example, a liability for a pending trade with a broker) using the month-end that is closest to the plan's fiscal year-end. That election shall be applied consistently from year to year. ##### [325-962-35-2](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:f13c587ea4ea01be39a9a9e5b0f966b234a19c99cb6d7facdc05c99a8256e343 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some plan investments may not have [Level 1 inputs](https://asc.understandingaccounting.org/glossary/l/#level-1-inputs "Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.") to measure fair value. Therefore, they will need to be measured in accordance with the other valuation techniques described in Topic 820. Examples include all of the following: 1. a Real estate 2. b Mortgages or other loans 3. c Limited partnerships 4. d Restricted securities 5. e Unregistered securities 6. f Securities that are traded in inactive markets 7. g Nontransferable investment contracts. ##### [325-962-35-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:8efa8c1546c8543265d7d7f6d772cf8c294ea03fad5e03983424c2c23b972bea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both of the following are the obligation of the plan's trustees, the administrator, and the corporate trustee: 1. a To satisfy themselves that all appropriate factors relevant to the value of the investments have been considered 2. b To select a method to measure the fair value of the investments. ##### [325-962-35-4](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:aafade5caeff26b148d8e18311606a2c76e05098b85388e38a3f3814c0622f44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent considered necessary, the plan may use the services of a specialist to assist the plan (or the administrators) in measuring the fair value of investments. Topic 820 provides guidance on how to measure fair value. #### Investment and Insurance Contracts ##### [325-962-35-5](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:f325c689a8cf988eb7dcb287be209bee4f73a1eee6a1f1b69ce1b7fcd8eaade8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Defined contribution plans, including both health and welfare and pension plans, shall report investments (including derivative contracts) at fair value (excluding insurance contracts and [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness.") \[see paragraph [962-325-35-6](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-6) for special provisions on the valuation of insurance contracts and paragraph [962-325-35-5A](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-5A) for special provisions on the valuation of fully benefit-responsive investment contracts\]). ##### [325-962-35-5A](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:8f1b58875f4db51a60fd99fad944aa6faa9ae88fdf13b619e66ee99d14e1cdd5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contract value is the relevant measure for the portion of the net assets available for benefits of a [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.") attributable to fully benefit-responsive investment contracts. ##### [325-962-35-6](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:e764f208ba999cbdf423b2d9ad4222bf5749b0e542e69ef587050b42349e2299 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Insurance contracts, as defined by Subtopic 944-20, shall be presented in the same manner as specified in the annual report filed by the plan with certain governmental agencies in accordance with the Employee Retirement Income Security Act; that is, either at fair value or at amounts determined by the insurance entity (contract value). Plans not subject to the Employee Retirement Income Security Act shall present insurance contracts as if the plans were subject to the reporting requirements of the Act. ##### [325-962-35-7](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:ec2c9ee98c08aa6f0c684df66f4d0c7faa04a58065febfc0f087f8e322257630 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [944-20-05-5 through 05-7](https://asc.understandingaccounting.org/asc/944/20/#944-20-05-5) for a discussion of the purpose, types, and a general characterization of insurance transactions. ##### [325-962-35-8](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:5e14c307caff4626ff819ca5af5ebb61e922715e0ce43c119017b25a34548e22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [944-20-15-16 through 15-19](https://asc.understandingaccounting.org/asc/944/20/#944-20-15-16) for a discussion of certain types of insurance contracts, including long-duration contracts that do not subject the insurance entities to mortality or morbidity risks (investment contracts) and annuity contracts. #### Evaluation of Benefit Responsiveness ##### [325-962-35-9](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:735a718611d8937cefe6243beba623f575059c2e7cbe371aedcbd193be4ee277 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan holds multiple contracts, each contract shall be evaluated individually for benefit responsiveness. ##### [325-962-35-10](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:5ae1e5eaa44889ff3adc151f10ca55a9e827592fa4b023a3e1723b185f43ad9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contracts that provide for prospective interest adjustments may still be fully benefit-responsive provided that the terms of the contracts specify that the crediting interest rate cannot be less than zero. #### Application of Benefit Responsiveness ##### [325-962-35-11](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:4e05b91c496bde4ad3a953d5093ec419e5cbae26e13eca6a681d02925b841a57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [962-325-55-2 through 55-15](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-2) include implementation guidance for the application of the definition of fully benefit-responsive for defined contribution plan investments. ##### [325-962-35-12](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:24.942Z to 2026-09-09T23:48:24.942Z Record version: sha256:23c0219bf0aa603ee7e6ea6cb1b081bb070f25ff608fa4c0f8f92072b1fabd28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part I). Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:ce91814dfccb80e4d055fe065a816a4f06d6b0dfe309bad9ab1e9dda95658bc9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/962/#45-other-presentation-matters) SEC content: no ##### [325-962-45-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:080a7b627676dbb731e6565c11d83fd326fbdbeca3e1e355dffa8ca0553e6e53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-962-45-2](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:e00110ad688f7da6bac47619c28f4e1f100e22c1a9563951bd3f6b54ec64d4a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-962-45-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:2f0260a376bf4367ff93fb0db85449590471c9b08ca4423d046c21215fcf340c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-962-45-4](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:c436aadaea6547931565b318b32192261aa08b5b678770fa68373c0309316ee9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-962-45-5](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:a8b2dcde4437de97da86e635a2632e8cf18cfc0db2f2a17c86c28b4f44cb0284 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments measured using fair value in the statement of net assets available for benefits or in the notes shall be presented by general type, such as the following: 1. a Registered investment companies (for example, mutual funds) 2. b Government securities 3. c Common-collective trusts 4. d Pooled separate accounts 5. e Short-term securities 6. f Corporate bonds 7. g Common stocks 8. h Mortgages 9. i [Subparagraph superseded by Accounting Standards Update No. 2010-25](https://asc.understandingaccounting.org/updates/asu-2010-25/). 10. j Real estate 11. k Self-directed brokerage accounts (that is, an investment option that allows participants to select investments outside the plan's core options). For the presentation of [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."), which are measured at contract value, see paragraphs [962-325-35-5A](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-5A) and [962-325-50-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-3). ##### [325-962-45-6](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:a26865dca1c5e9c915045cd0d76cf291c19f4a823b9c0e789e208e639ecf0584 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The presentation shall indicate whether the fair values of the investments have been measured by quoted market prices in an active market or were determined otherwise. ##### [325-962-45-7](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:7b8c687a064714d2435fc7da07fa47d637ef5b0087675225741a69c31064089f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-962-45-8](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:8b3c9b25af721dda1bd1c08dacfca8f995fdcceef037eb727f96e51dc7324b42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.") provides for participant-directed and non-participant-directed investment programs, the plan shall disclose information in the financial statements about the net assets and significant components of the changes in net assets relating to the non-participant-directed program with such reasonable detail, either in the financial statements or accompanying notes, as is necessary to identify the types of investments and changes therein. ##### [325-962-45-9](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:63b0cace00546d684efe5ae7ea93badff94c2ac61efe3c43e3cf566cae16d134 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The interest income earned and rebate interest paid as a result of securities lending activity shall be recorded on the statement of changes in net assets available for benefits. ##### [325-962-45-10](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:28.436Z to 2026-09-09T23:48:28.436Z Record version: sha256:fe8510844bcd09956f374b3739e6fbad571829c87503cee306dc8654ccee369d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-25](https://asc.understandingaccounting.org/updates/asu-2010-25/). Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:cde80bca103a9589f11cfce03f31250e63a31f434e94f6dffa920ac8973b6d60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/962/#50-disclosure) SEC content: no ##### [325-962-50-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:c5bf3ae3b5107a6fde2ea233f64b11666ae6c0bd456c84c00d47293039e68942 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of a defined contribution plan's accounting policies shall include a description of the valuation techniques and inputs used to measure the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") less costs to sell, if significant, of investments (as required by Section 820-10-50) and a description of the methods and significant assumptions used to measure the reported value of insurance contracts (if any). However, defined contribution pension plans are exempt from the requirements in paragraph [820-10-50-2B(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2B) to disaggregate assets by nature, characteristics, and risks. The disclosures of information by classes of assets required by Section 820-10-50 shall be provided by general type of plan assets consistent with paragraph [962-325-45-5](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-5). ##### [325-962-50-1A](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:7a5dabefaa3d1f7a10416846bc7532e805bf051f097e2c74084a9e9cde87d8e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-962-50-2](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:b20232e02a457acbf80037f3e01b26a3739b4a52385d9c3abc68368d3506a1e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Original cost of investments is not required to be disclosed. ##### [325-962-50-2A](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-2A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:54c96a1906597802f76c0d4528b378289b8bf259f92deb3d539852711abe4f15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If applicable, a plan shall disclose the accounting policy election to measure investments and investment-related accounts using the month-end that is closest to the plan's fiscal year-end in accordance with paragraph [962-325-35-1B](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-1B) and the month-end measurement date. ##### [325-962-50-2B](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-2B) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:1bb97e0741060b9244fc637c28f0591689d2d7354977e160880522bb9226531c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan measures investments and investment-related accounts in accordance with paragraph [962-325-35-1B](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-1B) and contributions, distributions, and/or significant events (such as a plan amendment, a merger, or a termination) occur between the month-end date used to measure investments and investment-related accounts and the plan's fiscal year-end, the plan shall disclose the amounts of those contributions, distributions, and/or significant events. #### Fully Benefit-Responsive Investment Contracts ##### [325-962-50-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:529e175e1d541ceee3020366afa9c974f75b47f0e52bd0da11af7be3c8122735 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Defined contribution plans shall disclose the following in connection with [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."), in the aggregate: 1. a A description of the nature of those investment contracts (including how they operate) by the type of investment contract (for example, synthetic investment contracts or traditional investment contracts). 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 2. b [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 3. c [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 4. d A description of the events that limit the ability of the plan to transact at contract value with the issuer, including a statement that the occurrence of each of those events that would limit the plan's ability to transact at contract value with participants in the plan is not probable of occurring. The following are examples of events that may limit the ability of the plan to transact at contract value: 1. 1 Premature termination of the contracts by the plan 2. 2 Plant closings 3. 3 Layoffs 4. 4 Plan termination 5. 5 Bankruptcy 6. 6 Mergers 7. 7 Early retirement incentives. The term _probable_ is used in this Subtopic consistent with its use in Section 450-20-25. 5. e A description of the events and circumstances that would allow issuers to terminate fully benefit-responsive investment contracts with the plan and settle at an amount different from contract value. 6. f The total contract value of each type of investment contract (for example, synthetic investment contracts or traditional investment contracts). ##### [325-962-50-4](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:7409fda0feb2886b37eb9e1379576988220f59e403aad265cd564cca3c0b647c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part I). #### Non-Participant-Directed Investments ##### [325-962-50-5](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:a59d648563cfe14abaf1ba33e9b9f2ce2157c61fb9d1d5f1d8d644d50ddb3bb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the disclosures regarding non-participant-directed investments required by paragraph [962-325-45-5](https://asc.understandingaccounting.org/asc/325/962/#325-962-45-5) are not made in the basic financial statements, they shall be made in the notes to financial statements. If a plan offers a program that is both participant- and non-participant-directed, and if the participant- and non-participant-directed amounts cannot be separately determined, the plan will be deemed to be non-participant-directed for purposes of these disclosures. For example, an employer-sponsored plan offers six [investment fund options](https://asc.understandingaccounting.org/glossary/i/#investment-fund-option "An investment alternative provided to a participant in a defined contribution plan. The alternatives are usually pooled fund vehicles, such as any of the following: Registered investment companies (meaning, mutual funds) Commingled funds of banks Insurance entity pooled separate accounts providing varying kinds of investments, for example, equity funds and fixed income funds. The participant may select from among the various available alternatives and periodically change that selection."), one of which is a stock fund that includes only the employer's stock. Employees at their discretion may invest their contributions in any of the six options. However, the employer's contribution to the plan (for example, the entity match) is automatically invested in the employer's stock fund. The stock fund is considered to be nonparticipant-directed for purposes of this disclosure if the employee and the employer amounts cannot be separately determined. ##### [325-962-50-6](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:e0435bec35dcbd61a11c75820befe89bf0ad7fded81fb97d53b977397ba95c7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-06](https://asc.understandingaccounting.org/updates/asu-2017-06/). #### Interests in Master Trusts ##### [325-962-50-7](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:8d1c07632d47d18aec85c25c2f0a2c7891234c9add98dc01536aea0d0e5e2544 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the following in the notes to financial statements for each period for which a statement of changes in net assets available for benefits is presented: 1. a Net appreciation or depreciation in the fair value of investments of the master trust. Net appreciation or depreciation includes realized gains and losses on investments that were both purchased and sold during the period as well as unrealized appreciation or depreciation of the investments held at year-end. 2. b Investment income (exclusive of (a)). ##### [325-962-50-8](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:47f3cff68980099fad04998315f946c477252cb00a28cf47de388f269a8acd35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall include in the notes to financial statements both of the following: 1. a Description of the basis used to allocate both of the following: 1. 1 Net assets 2. 2 Total investment income. See paragraph [962-325-50-7](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-7) for the components of total investment income. 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2017-06](https://asc.understandingaccounting.org/updates/asu-2017-06/). 2. b For a plan with an undivided interest in the master trust (that is, when the plan has a proportionate, rather than a specific, interest in the master trust), its percentage interest in the master trust as of the date of each statement of net assets available for benefits presented. ##### [325-962-50-8A](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:3ec2462ae8cddc42771eca5d9ddbd010ef1447aca8d90296c0d41fc227d6900c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the notes to financial statements a plan shall include the investments of a master trust measured using fair value presented by general type of investment, such as the following, as of the date of each statement of net assets available for benefits presented: 1. a Registered investment companies (for example, mutual funds) 2. b Government securities 3. c Common-collective trusts 4. d Pooled separate accounts 5. e Short-term securities 6. f Corporate bonds 7. g Common stocks 8. h Mortgages 9. i Real estate 10. j Self-directed brokerage accounts (that is, an investment option that allows participants to select investments outside the plan's core options). For the presentation of [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."), which are measured at contract value, see paragraphs [962-325-35-5A](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-5A) and [962-325-50-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-3). ##### [325-962-50-8B](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-8B) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:d5affc25ce812f12636a8eb921342a947c379ca93dcb181c45c322e2d2bd0f56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the dollar amount of its interest in each general type of investment held by the master trust, consistent with the disclosure required by paragraph [962-325-50-8A](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-8A). See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. ##### [325-962-50-8C](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-8C) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:46bd4b313d2b701015d00cbff1c8f03de35c9891bcee106d93ecdf7e49eafbf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall disclose the master trust's other assets and liabilities and the dollar amount of the plan's interest in each of those other assets and liabilities. Examples of those balances include the following: 1. a Amounts due from brokers for securities sold 2. b Amounts due to brokers for securities purchased 3. c Receivables relating to derivatives 4. d Payables relating to derivatives 5. e Accrued interest and dividends 6. f Accrued expenses. See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. #### Investments Measured Using the Net Asset Value per Share Practical Expedient ##### [325-962-50-9](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:30.446Z to 2026-09-09T23:48:30.446Z Record version: sha256:79a6be18b9453abb3cdc2a5fd05d9c0732507ba764c71feb77d98dccc4a2828d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an investment is measured using the net asset value per share (or its equivalent) practical expedient in paragraph [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) and that investment is in a fund that files U.S. Department of Labor Form 5500 as a direct filing entity, disclosure of that investment's significant investment strategy, as discussed in paragraph [820-10-50-6A(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-6A), is not required. Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:067afc1e280170a9b7afce2d2f16f6c1b54751b5a573cc2fb16f9c3b35551edb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-962-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/325/962/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [325-962-55-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:01ace5f1d7ecf2600573851b1d8cc5e7086815b7de520fc8428b8a70cb9008ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrate [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") and contract value reporting guidance in paragraphs [962-325-35-5 through 35-12](https://asc.understandingaccounting.org/asc/325/962/#325-962-35-5) (also see [fully benefit-responsive investment contract](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness.")) for defined-contribution plan investments. ##### [325-962-55-2](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:b6780114f04267439f780681a55a656125d8e5fbc860d0ba5314dec4a4f1f1f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The value is determined within the context of the objectives of financial statements for a [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account."). The valuation must reflect the ability of the plan to pay [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.") from the perspective of the participants. This value is then reflected on participants' statements to disclose the amount they can expect to receive when they exercise their rights to withdraw, borrow, or transfer funds under the terms of the plan. ##### [325-962-55-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:9e621012f47cd9d06cc27f5f431fba6249b8f5220a05624860ce953020f9ecfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A five-year public bond (or portfolio of bonds) is guaranteed by a third party to have a fixed value at the end of three years. The guarantee applies only to the extent that the bond (or portfolio) is not liquidated before the end of three years. Liquidation within three years is at fair value. ##### [325-962-55-4](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:faa7bf23318a5f30638103a8e4d3ba8c42b4463b57fdadfbab58223174fb7e9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because guaranteed proceeds from the bond are not available for benefit withdrawals or transfers prior to maturity, the contract is not fully benefit-responsive and, therefore, net assets available for benefits shall reflect the fair value for this investment contract. Fair value should be measured in accordance with Topic 820. ##### [325-962-55-5](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:d372ae6a4eede422cd820e420e29aa39f496cd416c22f37034e95efc7a74ec2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A contract provides a fixed crediting interest rate, and a financially responsible entity guarantees liquidity at contract value before maturity for any and all participant-initiated benefit withdrawals, loans, or transfers arising under the terms of the plan, which allows access for all participants on a quarterly basis. ##### [325-962-55-6](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:47130aa1e8a796d882313dfce585d67a56ac2ad7d7ef0c4fa026a7cd5f9526f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The net assets available for benefits should reflect the contract value for this investment contract, because the plan will receive such value and only such value if the contract is accessed to pay participant benefits or transfers. ##### [325-962-55-7](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:7b58943657469ab97e435564a954f3fc0a6c2dbd0b0d9058f0a5431808463b8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This contract would be viewed as fully benefit-responsive. Examples of some variations on this contract, and their impact on the valuation, include the following: 1. a Liquidity at contract value is not guaranteed for benefits that are attributable to termination of the plan, a plan spinoff to a new employer plan, or amendments to plan provisions. Net assets available for benefits should reflect the contract value for this investment contract, unless it is probable that the plan will be terminated, spun off, or amended. 2. b Liquidity at contract value is not guaranteed for benefits that are attributable to the layoff of a large group of workers or an early retirement program. Net assets available for benefits should reflect the contract value for this investment contract, unless it is probable that termination of the employment of a significant number of employees will occur. 3. c The contract will pay for benefits of up to 30 percent of the contract at contract value, and any excess benefits will be at some adjusted value. Net assets available for benefits should reflect the fair value for this investment contract because they are not fully benefit-responsive. 4. d The contract will pay benefits at contract value, but only if the issuer of the contract determines that there is sufficient liquidity in the portfolio of assets that backs the contract. Because the third party has not guaranteed liquidity for participant-initiated withdrawals, net assets available for benefits should reflect the fair value for this investment contract because they are not fully benefit-responsive. 5. e The contract will not pay benefits at contract value if benefits are due to participant transfers to another fixed income investment option, unless the funds are invested in an equity option for at least three months (equity wash provisions). Net assets available for benefits shall reflect the contract value for this investment contract because the contract would be considered fully benefit-responsive. ##### [325-962-55-8](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:6ca1fc0e6ec30718c38c49f1250a010d4c037cc6838ab380b6564fe8c65ed376 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net assets available for benefits should reflect the fair value for such an investment contract because there is no guarantee of liquidity at contract value. Fair value would be measured in the same manner as for an illiquid bond. Topic 820 includes a discussion of methods used to measure the fair values of illiquid instruments. ##### [325-962-55-9](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:95634e929ed96d4d189272649de2fd54e6a08c5a6e25633a3a286a82e181c4e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A financially responsible issuer pays contract value for participant withdrawals, regardless of the value of the assets in the separate account. The credited interest rate is a function of the relationship between the contract value and the value of the assets in the separate account. The rate is reset periodically, daily, monthly, quarterly, and so on, by the issuer and cannot be less than zero. There may or may not be a specified maturity date on the contract. The contract holder may terminate the contract at any time, and receive the value of the assets in the separate account. ##### [325-962-55-10](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:a0876263e517256f77a1d6ae2401c497e52939b41900a40c1b23029bf95b5e06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net assets available for benefits should reflect the contract value for this investment contract because participants are guaranteed return of principal and accrued interest. ##### [325-962-55-11](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:ebae583deb7a5a0b501758da623801aaed2cf283333bc0dc55e80f7a222e5def Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Such a contract operates similarly to a separate account guaranteed investment contract, except that the assets are placed in a trust (with ownership by the plan) rather than a separate account of the issuer and a financially responsible third party issues a wrapper contract that provides that participants can, and must, execute plan transactions at contract value. ##### [325-962-55-12](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:b1ce4faa5c158320ff9ee85565453525f643c2323c9cc0178907dac72669fe28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net assets available for benefits should reflect the contract value for this investment contract because participants are guaranteed return of principal and accrued interest. ##### [325-962-55-13](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:114be673a9eafa0b80694c064473027d551a00d756c3e74f542fb8b496dee237 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under such a contract, the plan purchases a bond and places it in trust. The plan then contracts with a financially responsible third party to provide benefit responsiveness. Under the contract, should the bond need to be sold to meet a participant-initiated withdrawal benefit, loan, or transfer, the plan is obligated to sell the bond to the contract issuer, and the issuer is obligated to buy the bond. The transaction price is defined under the contract (for example, amortized cost). ##### [325-962-55-14](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:d5c84492d9e172a181db1d9c0f490e006b8167573bc811f430cc3324c86a8d4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net assets available for benefits should reflect the contract value for this investment contract because return of principal and accrued interest has been guaranteed to participants. ##### [325-962-55-15](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:4af35e57589b9c1d8624e2ac900d278236571732a4be25c040ae13994530b6a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the contract provided only an option for the [sponsor](https://asc.understandingaccounting.org/glossary/s/#sponsor "In the case of a pension plan established or maintained by a single employer, the employer; in the case of a plan established or maintained by an employee entity, the employee entity; in the case of a plan established or maintained jointly by two or more employers or by one or more employers and one or more employee entities, the association, committee, joint board of trustees, or other group of representatives of the parties that have established or that maintain the pension plan.") to sell the bond to the issuer, rather than an obligation to do so, reflecting net assets available for benefits at contract value for this investment contract would also apply. ##### [325-962-55-16](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:a78ad3d9de58f51ce548a2081af58ae49701b32d1831228b0499b13d403d6522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). #### Illustrations ##### [325-962-55-17](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-17) Pending content: yes Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:b0280aeea11e1f8759209d27458a7a63215459f1d25c228aad4aa4d01f668555 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates certain applications of the provisions of this Subtopic to the annual financial statements of a defined contribution plan. The following are illustrative financial statements and disclosures. - a. [Subparagraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). - b. [Subparagraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). - - ![](https://asc.understandingaccounting.org/asc-img/GUID-E77C27D7-6980-4829-AC6C-09B2C9360CD7-low.gif) "XYZ Company 401(k) Plan" "Statement of Net Assets Available for Benefits" "December 31, " 20X1 20X0 Assets: Investments at fair value (See Note C) " $7,397,000 " " $7,014,000 " Investments at contract value (See Note D) " 1,500,000 " " 650,000 " Receivables: Employer contributions " 14,000 " " 10,000 " Participant contributions " 52,000 " " 50,000 " Notes receivable from participants " 300,000 " " 350,000 " Total receivables " 366,000 " " 410,000 " Total assets " 9,263,000 " " 8,074,000 " Liabilities: Accrued expenses " 10,000 " " 20,000 " Excess contributions payable " 15,000 " - Total liabilities " 25,000 " " 20,000 " Net assets available for benefits " $9,238,000 " " $8,054,000 " See accompanying notes to the financial statements. - ![](https://asc.understandingaccounting.org/asc-img/GUID-BACBE044-1C78-405C-A029-B7144595A45C-low.gif) "XYZ Company 401(k) Plan" "Statement of Changes in Net Assets Available for Benefits" "Year Ended December 31, 20X1" Additions: Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments " $280,000 " Interest " 369,000 " Dividends " 165,000 " " 814,000 " Interest income on notes receivable from participants " 20,000 " Contributions: Employer (see Note A) " 599,000 " Participants " 800,000 " Rollovers (see Note E) " 200,000 " " 1,599,000 " Total additions " 2,433,000 " Deductions: Deductions from net assets attributed to: Benefits paid to participants " 526,000 " Administrative expenses " 10,000 " Total deductions " 536,000 " Net increase " 1,897,000 " Transfer to GHI plan (see Note A) " 713,000 " Net assets available for benefits: Beginning of year " 8,054,000 " End of year " $9,238,000 " See accompanying notes to the financial statements. - Notes to Financial Statements - A. Description of Plan - The following description of the XYZ Company (Company) 401(k) Plan (Plan) provides only general information. Participants should refer to the plan agreement for a more complete description of the Plan's provisions. 1. 1 General. The Plan is a defined contribution plan covering all full-time employees of the Company and its wholly owned subsidiaries who have 1 year of service and are age 21 or older. The Plan is subject to the provisions of the Employment Retirement Income Security Act of 1974 (ERISA). In November 20X1, the Company sold its wholly owned subsidiary, Sub Company. As a result of its sale, on December 1, 20X1, the accounts of all Sub Company employees were transferred out of the Plan to GHI Plan (an existing plan controlled by the acquiring company). 2. 2 Contributions. Each year, participants may contribute up to XX percent of pretax annual compensation, as defined in the Plan. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants also may contribute amounts representing distributions from other qualified defined benefit or defined contribution plans (rollover). Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan includes an auto-enrollment provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the Plan. Automatically enrolled participants have their deferral rate set at 2 percent of eligible compensation and their contributions invested in a designated balanced fund until changed by the participant. The Company contributes 25 percent of the first 6 percent of base compensation that a participant contributes to the Plan. The matching Company contribution is invested as directed by the participant. 3. 3 Participant accounts. Each participant's account is credited with the participant's contributions and the Company's matching contributions, as well as allocations of Plan earnings. Participant accounts are charged with an allocation of administrative expenses. Allocations are based on participant earnings, account balances, or specific participant transactions, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. 4. 4 Vesting. Participants are vested immediately in their contributions plus actual earnings on the contributions. Vesting in the Company's contribution portion of their accounts is based on years of continuous service. A participant is 100 percent vested after 3 years of credited service. 5. 5 Notes receivable from participants. Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of their account balance. The loans are secured by the balance in the participant's account. The loan interest rate, determined quarterly, is set at 2 percent above the prime rate, as defined. Principal and interest is paid ratably through monthly payroll deductions. 6. 6 Payment of benefits. On termination of service due to death, disability, or retirement, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in his or her account or annual installments over a 10-year period. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution. 7. 7 Forfeited accounts. At December 31, 20X1, and 20X0, forfeited nonvested accounts totaled $7,500 and $5,000, respectively. These accounts will be used to reduce future employer contributions. Also, in 20X1, employer contributions were reduced by $5,000 from forfeited nonvested accounts. - B. Summary of Accounting Policies - Basis of Accounting - The financial statements of the Plan are prepared on the accrual basis of accounting. - Investments held by a defined contribution plan are required to be reported at fair value, except for fully benefit-responsive investment contracts. Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants normally would receive if they were to initiate permitted transactions under the terms of the Plan. - Use of Estimates - The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes in those assets and liabilities, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. - Investment Valuation and Income Recognition - Investments are reported at fair value (except for fully benefit-responsive investment contracts, which are reported at contract value). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan's Investment Committee determines the Plan's valuation policies utilizing information provided by the investment advisers, custodians, and insurance company. See Note C for discussion of fair value measurements. - Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan's gains and losses on investments purchased and sold as well as held during the year. - Notes Receivable from Participants - Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. No allowance for credit losses has been recorded as of December 31, 20X1, or 20X0. Delinquent participant loans are recorded as distributions on the basis of the terms of the Plan agreement. - Excess Contributions Payable - Amounts payable to participants for contributions in excess of amounts allowed by the Internal Revenue Service are recorded as a liability with a corresponding reduction to contributions. The Plan distributed the 20X1 excess contributions to the applicable participants before March 15, 20X2. - Payment of Benefits - Benefits are recorded when paid. - Expenses - Certain expenses incurred maintaining the Plan are paid directly by the Company and are excluded from these financial statements. Investment-related expenses are included in net appreciation of fair value of investments. - Subsequent Events - The Plan has evaluated subsequent events through \[insert date\], the date the financial statements were available to be issued. - C. Fair Value Measurements - The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy under Topic 820 are described as follows: - ![](https://asc.understandingaccounting.org/asc-img/GUID-E2BD1338-E115-4AF8-8A74-2C9C52508C48-low.gif) Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Plan can access at the measurement date. Level 2 "Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as:" a. Quoted prices for similar assets or liabilities in active markets b. Quoted prices for identical or similar assets or liabilities in inactive markets c. Inputs other than quoted prices that are observable for the asset or liability d. Inputs that are derived principally from or corroborated by observable market data by correlation or other means. "If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability." Level 3 Inputs that are unobservable inputs for the asset or liability. - Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 20X1, and 20X0. 1. 1 Common stocks. Valued at the closing price reported on the active market on which the individual securities are traded. 2. 2 Self-directed brokerage accounts. Accounts primarily consist of mutual funds and common stocks that are valued on the basis of readily determinable market prices. 3. 3 Corporate bonds. Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing the value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, those corporate bonds are valued under a discounted cash flow approach that maximizes observable inputs, such as current yields or similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. 4. 4 Mutual funds. Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded. 5. 5 [Subparagraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). 6. 6 U.S. government securities. Valued using pricing models maximizing the use of observable inputs for similar securities. - The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 20X1, and 20X0. Classification within the fair value hierarchy table is based on the lowest level of any input that is significant to the fair value measurement. - ![](https://asc.understandingaccounting.org/asc-img/GUID-97BC5D3D-1418-4847-9E38-3E7B23118E4F-low.gif) "Assets at Fair Value as of December 31, 20X1" Level 1 Level 2 Level 3 Total Mutual funds " $5,859,500 " $ - $ - " $5,859,500 " Self-directed brokerage account " 25,000 " - - " 25,000 " Common stocks " 960,000 " - - " 960,000 " U.S. government securities - " 225,000 " - " 225,000 " Corporate bonds (Aaa credit rating & noninvestment grade) - " 307,500 " " 20,000 " " 327,500 " Investments at fair value " $6,844,500 " " $532,500 " " $20,000 " " $7,397,000 " "Assets at Fair Value as of December 31, 20X0" Level 1 Level 2 Level 3 Total Mutual funds " $5,730,000 " $- $- " $5,730,000 " Self-directed brokerage account " 20,000 " - - " 20,000 " Common stocks " 870,000 " - - " 870,000 " U.S. government securities - " 120,000 " - " 120,000 " Corporate bonds (Aaa credit rating & noninvestment grade) - " 255,000 " " 19,000 " " 274,000 " Investments at fair value " $6,620,000 " " $375,000 " " $19,000 " " $7,014,000 " - Transfers between Levels - For years ended December 31, 20X1, and 20X0, there were no significant transfers between Levels 1 and 2 and no transfers in or out of Level 3. - Changes in Fair Value of Level 3 Assets and Related Gains and Losses - The following table sets forth a summary of changes in the fair value of the Plan's Level 3 assets for the year ended December 31, 20X1. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D92CC593-B9C4-4F39-8ADF-D62967FD58C5-low.gif) Level 3 Assets Year Ended " December 31, 20X1 " (Corporate Bonds) "Balance, beginning of year" " $19,000 " Realized gains/(losses) 500 Unrealized gains/(losses) relating to instruments still held at the reporting date " 2,000 " Purchases - Sales " (1,500)" Transfers in and/or out of Level 3 - "Balance, end of year" " $20,000 " The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to assets still held at the reporting date " $2,000 " - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements - The following table represents the Plan's Level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, and the significant unobservable inputs and the ranges of values for those inputs. - ![](https://asc.understandingaccounting.org/asc-img/GUID-2A1C4E8E-65DD-450E-B2EA-031FB8ACC10D-low.gif) Instrument Fair Value Principal Valuation Technique Unobservable Inputs Range of Significant Input Values Weighted Average Corporate bonds "$20,000 " Discounted cash flow Credit risk (basis points) xx-xxx Y% Liquidity risk (basis points) xx-xxx Y% - D. Fully Benefit-Responsive Investment Contracts - The Plan holds a portfolio of investment contracts that are directly effected with the issuer that comprises a traditional investment contract and a portfolio of synthetic investment contracts. These contracts meet the fully benefit-responsive investment contract criteria and therefore are reported at contract value. Contract value is the relevant measure for fully benefit-responsive investment contracts because this is the amount received by participants if they were to initiate permitted transactions under the terms of the Plan. Contract value represents contributions made under each contract, plus earnings, less participant withdrawals, and administrative expenses. The following represents the disaggregation of contract value between types of investment contracts held by the Plan. - ![](https://asc.understandingaccounting.org/asc-img/GUID-1BB80AD7-C5A5-4046-878A-ACCEACFFC744-low.gif) 20X1 20X0 Synthetic investment contracts " $1,250,000 " " $500,000 " Traditional Investment contract " 250,000 " " 150,000 " Total " $1,500,000 " " $650,000 " - The key difference between a synthetic investment contract and a traditional investment contract is that the Plan owns the underlying assets of the synthetic investment contract. A synthetic investment contract includes a wrapper contract, which is an agreement for the wrap issuer, such as a bank or insurance company, to make payments to the Plan in certain circumstances. The wrapper contract typically includes certain conditions and limitations on the underlying assets owned by the Plan. With traditional investment contracts, the Plan owns only the contract itself. Synthetic and traditional investment contracts are designed to accrue interest based on crediting rates established by the contract issuers. - The synthetic investment contracts held by the Plan include wrapper contracts that provide a guarantee that the credit rate will not fall below 0 percent. Cash flow volatility (for example, timing of benefit payments) as well as asset underperformance can be passed through to the Plan through adjustments to future contract crediting rates. Formulas are provided in each contract that adjusts renewal crediting rates to recognize the difference between the fair value and the book value of the underlying assets. Crediting rates are reviewed monthly for resetting. - The traditional investment contract held by the Plan is a guaranteed investment contract. The contract issuer is contractually obligated to repay the principal and interest at a specified interest rate that is guaranteed to the Plan. The crediting rate is based on a formula established by the contract issuer but may not be less than 4 percent. The crediting rate is reviewed on a quarterly basis for resetting. The contract cannot be terminated before the scheduled maturity date. - The Plan's ability to receive amounts due in accordance with fully benefit-responsive investment contracts is dependent on the third-party issuer's ability to meet its financial obligations. The issuer's ability to meet its contractual obligations may be affected by future economic and regulatory developments. - Certain events might limit the ability of the Plan to transact at contract value with the contract issuer. These events may be different under each contract. Examples of such events include the following: 1. 1 The Plan's failure to qualify under Section 401(a) of the Internal Revenue Code or the failure of the trust to be tax-exempt under Section 501(a) of the Internal Revenue Code 2. 2 Premature termination of the contracts 3. 3 Plan termination or merger 4. 4 Changes to the Plan's prohibition on competing investment options 5. 5 Bankruptcy of the plan sponsor or other plan sponsor events (for example, divestitures or spinoffs of a subsidiary) that significantly affect the Plan's normal operations. - No events are probable of occurring that might limit the ability of the Plan to transact at contract value with the contract issuers and that also would limit the ability of the Plan to transact at contract value with the participants. - In addition, certain events allow the issuer to terminate the contracts with the Plan and settle at an amount different from contract value. Those events may be different under each contract. Examples of such events include the following: 1. 1 An uncured violation of the Plan's investment guidelines 2. 2 A breach of material obligation under the contract 3. 3 A material misrepresentation 4. 4 A material amendment to the agreements without the consent of the issuer. - E. Rollover Contributions - On January 20, 20X1, XYZ Company acquired ABC Company and approved an amendment to terminate the ABC 401(k) Plan effective November 1, 20X1. All participants in the ABC 401(k) Plan became 100 percent vested in that plan upon termination and were provided with the option to have their account balance rolled into any qualified plan (including the Plan) or IRA, receive a lump-sum distribution, or be paid through an annuity contract. An aggregate of $XXX,000 was rolled into the Plan during the year ended December 31, 20X1, and is included in rollovers on the statement of changes in net assets available for benefits. - F. Related-Party Transactions and Party-in-Interest Transactions - Certain Plan investments are shares of mutual funds managed by Prosperity Investments. Prosperity Investments is the trustee as defined by the Plan, and, therefore, these transactions qualify as party-in-interest transactions. Fees incurred and paid directly by the Plan for the investment management services were $10,000. - G. Plan Termination - Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become 100 percent vested in their employer contributions. - H. Tax Status - The IRS has determined and informed the Company by a letter dated August 30, 20XX, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code. Although the Plan has been amended since receiving the determination letter, the Plan administrator and the Plan's tax counsel believe that the Plan is designed, and is currently being operated, in compliance with the applicable requirements of the Internal Revenue Code and, therefore, believe that the Plan is qualified and that the related trust is tax-exempt. - I. Risks and Uncertainties - The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Because of the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits. - J. Reconciliation of Financial Statements to Form 5500 - The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 20X1, and 20X0, to Form 5500: - ![](https://asc.understandingaccounting.org/asc-img/GUID-33CCB203-651C-4F89-AF04-11414A2C70BE-low.gif) 20X1 20X0 "Net assets available for benefits per the financial statements" " $9,238,000 " " $8,054,000 " Amounts allocated to withdrawing participants " (50,000)" " (35,000)" Net assets available for benefits per the Form 5500 " $9,188,000 " " $8,019,000 " - The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 20X1, to Form 5500: - ![](https://asc.understandingaccounting.org/asc-img/GUID-7D103E67-C083-4AC2-9BF8-03D437839111-low.gif) "Benefits paid to participants per the financial statements" " $526,000 " "Add: Amounts allocated to withdrawing participants at December 31, 20X1" " 50,000 " "Less: Amounts allocated to withdrawing participants at December 31, 20X0" " (35,000)" Benefits paid to participants per Form 5500 " $541,000 " - Amounts allocated to withdrawing participants are recorded on Form 5500 for benefit claims that have been processed and approved for payment before year-end, but not yet paid as of that date. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)This Example illustrates certain applications of the provisions of this Subtopic to the annual financial statements of a defined contribution plan. The following are illustrative financial statements and disclosures. - a. [Subparagraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). - b. [Subparagraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). - - ![](https://asc.understandingaccounting.org/asc-img/GUID-E77C27D7-6980-4829-AC6C-09B2C9360CD7-low.gif) "XYZ Company 401(k) Plan" "Statement of Net Assets Available for Benefits" "December 31, " 20X1 20X0 Assets: Investments at fair value (See Note C) " $7,397,000 " " $7,014,000 " Investments at contract value (See Note D) " 1,500,000 " " 650,000 " Receivables: Employer contributions " 14,000 " " 10,000 " Participant contributions " 52,000 " " 50,000 " Notes receivable from participants " 300,000 " " 350,000 " Total receivables " 366,000 " " 410,000 " Total assets " 9,263,000 " " 8,074,000 " Liabilities: Accrued expenses " 10,000 " " 20,000 " Excess contributions payable " 15,000 " - Total liabilities " 25,000 " " 20,000 " Net assets available for benefits " $9,238,000 " " $8,054,000 " See accompanying notes to the financial statements. - ![](https://asc.understandingaccounting.org/asc-img/GUID-BACBE044-1C78-405C-A029-B7144595A45C-low.gif) "XYZ Company 401(k) Plan" "Statement of Changes in Net Assets Available for Benefits" "Year Ended December 31, 20X1" Additions: Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments " $280,000 " Interest " 369,000 " Dividends " 165,000 " " 814,000 " Interest income on notes receivable from participants " 20,000 " Contributions: Employer (see Note A) " 599,000 " Participants " 800,000 " Rollovers (see Note E) " 200,000 " " 1,599,000 " Total additions " 2,433,000 " Deductions: Deductions from net assets attributed to: Benefits paid to participants " 526,000 " Administrative expenses " 10,000 " Total deductions " 536,000 " Net increase " 1,897,000 " Transfer to GHI plan (see Note A) " 713,000 " Net assets available for benefits: Beginning of year " 8,054,000 " End of year " $9,238,000 " See accompanying notes to the financial statements. - Notes to Financial Statements - A. Description of Plan - The following description of the XYZ Company (Company) 401(k) Plan (Plan) provides only general information. Participants should refer to the plan agreement for a more complete description of the Plan's provisions. 1. 1 General. The Plan is a defined contribution plan covering all full-time employees of the Company and its wholly owned subsidiaries who have 1 year of service and are age 21 or older. The Plan is subject to the provisions of the Employment Retirement Income Security Act of 1974 (ERISA). In November 20X1, the Company sold its wholly owned subsidiary, Sub Company. As a result of its sale, on December 1, 20X1, the accounts of all Sub Company employees were transferred out of the Plan to GHI Plan (an existing plan controlled by the acquiring company). 2. 2 Contributions. Each year, participants may contribute up to XX percent of pretax annual compensation, as defined in the Plan. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Participants also may contribute amounts representing distributions from other qualified defined benefit or defined contribution plans (rollover). Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan includes an auto-enrollment provision whereby all newly eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the Plan. Automatically enrolled participants have their deferral rate set at 2 percent of eligible compensation and their contributions invested in a designated balanced fund until changed by the participant. The Company contributes 25 percent of the first 6 percent of base compensation that a participant contributes to the Plan. The matching Company contribution is invested as directed by the participant. 3. 3 Participant accounts. Each participant's account is credited with the participant's contributions and the Company's matching contributions, as well as allocations of Plan earnings. Participant accounts are charged with an allocation of administrative expenses. Allocations are based on participant earnings, account balances, or specific participant transactions, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. 4. 4 Vesting. Participants are vested immediately in their contributions plus actual earnings on the contributions. Vesting in the Company's contribution portion of their accounts is based on years of continuous service. A participant is 100 percent vested after 3 years of credited service. 5. 5 Notes receivable from participants. Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of their account balance. The loans are secured by the balance in the participant's account. The loan interest rate, determined quarterly, is set at 2 percent above the prime rate, as defined. Principal and interest is paid ratably through monthly payroll deductions. 6. 6 Payment of benefits. On termination of service due to death, disability, or retirement, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in his or her account or annual installments over a 10-year period. For termination of service for other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution. 7. 7 Forfeited accounts. At December 31, 20X1, and 20X0, forfeited nonvested accounts totaled $7,500 and $5,000, respectively. These accounts will be used to reduce future employer contributions. Also, in 20X1, employer contributions were reduced by $5,000 from forfeited nonvested accounts. - B. Summary of Accounting Policies - Basis of Accounting - The financial statements of the Plan are prepared on the accrual basis of accounting. - Investments held by a defined contribution plan are required to be reported at fair value, except for fully benefit-responsive investment contracts. Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants normally would receive if they were to initiate permitted transactions under the terms of the Plan. - Use of Estimates - The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes in those assets and liabilities, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. - Investment Valuation and Income Recognition - Investments are reported at fair value (except for fully benefit-responsive investment contracts, which are reported at contract value). Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan's Investment Committee determines the Plan's valuation policies utilizing information provided by the investment advisers, custodians, and insurance company. See Note C for discussion of fair value measurements. - Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan's gains and losses on investments purchased and sold as well as held during the year. - Notes Receivable from Participants - Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Related fees are recorded as administrative expenses and are expensed when they are incurred. Delinquent participant loans are recorded as distributions on the basis of the terms of the Plan agreement. - Excess Contributions Payable - Amounts payable to participants for contributions in excess of amounts allowed by the Internal Revenue Service are recorded as a liability with a corresponding reduction to contributions. The Plan distributed the 20X1 excess contributions to the applicable participants before March 15, 20X2. - Payment of Benefits - Benefits are recorded when paid. - Expenses - Certain expenses incurred maintaining the Plan are paid directly by the Company and are excluded from these financial statements. Investment-related expenses are included in net appreciation of fair value of investments. - Subsequent Events - The Plan has evaluated subsequent events through \[insert date\], the date the financial statements were available to be issued. - C. Fair Value Measurements - The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Valuation techniques maximize the use of relevant observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy under Topic 820 are described as follows: - ![](https://asc.understandingaccounting.org/asc-img/GUID-E2BD1338-E115-4AF8-8A74-2C9C52508C48-low.gif) Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Plan can access at the measurement date. Level 2 "Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, such as:" a. Quoted prices for similar assets or liabilities in active markets b. Quoted prices for identical or similar assets or liabilities in inactive markets c. Inputs other than quoted prices that are observable for the asset or liability d. Inputs that are derived principally from or corroborated by observable market data by correlation or other means. "If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability." Level 3 Inputs that are unobservable inputs for the asset or liability. - Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 20X1, and 20X0. 1. 1 Common stocks. Valued at the closing price reported on the active market on which the individual securities are traded. 2. 2 Self-directed brokerage accounts. Accounts primarily consist of mutual funds and common stocks that are valued on the basis of readily determinable market prices. 3. 3 Corporate bonds. Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing the value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, those corporate bonds are valued under a discounted cash flow approach that maximizes observable inputs, such as current yields or similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. 4. 4 Mutual funds. Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-end mutual funds that are registered with the U.S. Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded. 5. 5 [Subparagraph superseded by Accounting Standards Update No. 2018-09](https://asc.understandingaccounting.org/updates/asu-2018-09/). 6. 6 U.S. government securities. Valued using pricing models maximizing the use of observable inputs for similar securities. - The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 20X1, and 20X0. Classification within the fair value hierarchy table is based on the lowest level of any input that is significant to the fair value measurement. - ![](https://asc.understandingaccounting.org/asc-img/GUID-97BC5D3D-1418-4847-9E38-3E7B23118E4F-low.gif) "Assets at Fair Value as of December 31, 20X1" Level 1 Level 2 Level 3 Total Mutual funds " $5,859,500 " $ - $ - " $5,859,500 " Self-directed brokerage account " 25,000 " - - " 25,000 " Common stocks " 960,000 " - - " 960,000 " U.S. government securities - " 225,000 " - " 225,000 " Corporate bonds (Aaa credit rating & noninvestment grade) - " 307,500 " " 20,000 " " 327,500 " Investments at fair value " $6,844,500 " " $532,500 " " $20,000 " " $7,397,000 " "Assets at Fair Value as of December 31, 20X0" Level 1 Level 2 Level 3 Total Mutual funds " $5,730,000 " $- $- " $5,730,000 " Self-directed brokerage account " 20,000 " - - " 20,000 " Common stocks " 870,000 " - - " 870,000 " U.S. government securities - " 120,000 " - " 120,000 " Corporate bonds (Aaa credit rating & noninvestment grade) - " 255,000 " " 19,000 " " 274,000 " Investments at fair value " $6,620,000 " " $375,000 " " $19,000 " " $7,014,000 " - Level 3 Transfers - For years ended December 31, 20X1, and 20X0, there were no transfers in or out of Level 3. - Changes in Fair Value of Level 3 Assets and Related Gains and Losses - The following table sets forth a summary of changes in the fair value of the Plan's Level 3 assets for the year ended December 31, 20X1. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D92CC593-B9C4-4F39-8ADF-D62967FD58C5-low.gif) Level 3 Assets Year Ended " December 31, 20X1 " (Corporate Bonds) "Balance, beginning of year" " $19,000 " Realized gains/(losses) 500 Unrealized gains/(losses) relating to instruments still held at the reporting date " 2,000 " Purchases - Sales " (1,500)" Transfers in and/or out of Level 3 - "Balance, end of year" " $20,000 " The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to assets still held at the reporting date " $2,000 " - Quantitative Information about Significant Unobservable Inputs Used in Level 3 Fair Value Measurements - The following table represents the Plan's Level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, and the significant unobservable inputs and the ranges of values for those inputs. - ![](https://asc.understandingaccounting.org/asc-img/GUID-2A1C4E8E-65DD-450E-B2EA-031FB8ACC10D-low.gif) Instrument Fair Value Principal Valuation Technique Unobservable Inputs Range of Significant Input Values Weighted Average Corporate bonds "$20,000 " Discounted cash flow Credit risk (basis points) xx-xxx Y% Liquidity risk (basis points) xx-xxx Y% - D. Fully Benefit-Responsive Investment Contracts - The Plan holds a portfolio of investment contracts that are directly effected with the issuer that comprises a traditional investment contract and a portfolio of synthetic investment contracts. These contracts meet the fully benefit-responsive investment contract criteria and therefore are reported at contract value. Contract value is the relevant measure for fully benefit-responsive investment contracts because this is the amount received by participants if they were to initiate permitted transactions under the terms of the Plan. Contract value represents contributions made under each contract, plus earnings, less participant withdrawals, and administrative expenses. The following represents the disaggregation of contract value between types of investment contracts held by the Plan. - ![](https://asc.understandingaccounting.org/asc-img/GUID-1BB80AD7-C5A5-4046-878A-ACCEACFFC744-low.gif) 20X1 20X0 Synthetic investment contracts " $1,250,000 " " $500,000 " Traditional Investment contract " 250,000 " " 150,000 " Total " $1,500,000 " " $650,000 " - The key difference between a synthetic investment contract and a traditional investment contract is that the Plan owns the underlying assets of the synthetic investment contract. A synthetic investment contract includes a wrapper contract, which is an agreement for the wrap issuer, such as a bank or insurance company, to make payments to the Plan in certain circumstances. The wrapper contract typically includes certain conditions and limitations on the underlying assets owned by the Plan. With traditional investment contracts, the Plan owns only the contract itself. Synthetic and traditional investment contracts are designed to accrue interest based on crediting rates established by the contract issuers. - The synthetic investment contracts held by the Plan include wrapper contracts that provide a guarantee that the credit rate will not fall below 0 percent. Cash flow volatility (for example, timing of benefit payments) as well as asset underperformance can be passed through to the Plan through adjustments to future contract crediting rates. Formulas are provided in each contract that adjusts renewal crediting rates to recognize the difference between the fair value and the book value of the underlying assets. Crediting rates are reviewed monthly for resetting. - The traditional investment contract held by the Plan is a guaranteed investment contract. The contract issuer is contractually obligated to repay the principal and interest at a specified interest rate that is guaranteed to the Plan. The crediting rate is based on a formula established by the contract issuer but may not be less than 4 percent. The crediting rate is reviewed on a quarterly basis for resetting. The contract cannot be terminated before the scheduled maturity date. - The Plan's ability to receive amounts due in accordance with fully benefit-responsive investment contracts is dependent on the third-party issuer's ability to meet its financial obligations. The issuer's ability to meet its contractual obligations may be affected by future economic and regulatory developments. - Certain events might limit the ability of the Plan to transact at contract value with the contract issuer. These events may be different under each contract. Examples of such events include the following: 1. 1 The Plan's failure to qualify under Section 401(a) of the Internal Revenue Code or the failure of the trust to be tax-exempt under Section 501(a) of the Internal Revenue Code 2. 2 Premature termination of the contracts 3. 3 Plan termination or merger 4. 4 Changes to the Plan's prohibition on competing investment options 5. 5 Bankruptcy of the plan sponsor or other plan sponsor events (for example, divestitures or spinoffs of a subsidiary) that significantly affect the Plan's normal operations. - No events are probable of occurring that might limit the ability of the Plan to transact at contract value with the contract issuers and that also would limit the ability of the Plan to transact at contract value with the participants. - In addition, certain events allow the issuer to terminate the contracts with the Plan and settle at an amount different from contract value. Those events may be different under each contract. Examples of such events include the following: 1. 1 An uncured violation of the Plan's investment guidelines 2. 2 A breach of material obligation under the contract 3. 3 A material misrepresentation 4. 4 A material amendment to the agreements without the consent of the issuer. - E. Rollover Contributions - On January 20, 20X1, XYZ Company acquired ABC Company and approved an amendment to terminate the ABC 401(k) Plan effective November 1, 20X1. All participants in the ABC 401(k) Plan became 100 percent vested in that plan upon termination and were provided with the option to have their account balance rolled into any qualified plan (including the Plan) or IRA, receive a lump-sum distribution, or be paid through an annuity contract. An aggregate of $XXX,000 was rolled into the Plan during the year ended December 31, 20X1, and is included in rollovers on the statement of changes in net assets available for benefits. - F. Related-Party Transactions and Party-in-Interest Transactions - Certain Plan investments are shares of mutual funds managed by Prosperity Investments. Prosperity Investments is the trustee as defined by the Plan, and, therefore, these transactions qualify as party-in-interest transactions. Fees incurred and paid directly by the Plan for the investment management services were $10,000. - G. Plan Termination - Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants would become 100 percent vested in their employer contributions. - H. Tax Status - The IRS has determined and informed the Company by a letter dated August 30, 20XX, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code. Although the Plan has been amended since receiving the determination letter, the Plan administrator and the Plan's tax counsel believe that the Plan is designed, and is currently being operated, in compliance with the applicable requirements of the Internal Revenue Code and, therefore, believe that the Plan is qualified and that the related trust is tax-exempt. - I. Risks and Uncertainties - The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Because of the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits. - J. Reconciliation of Financial Statements to Form 5500 - The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 20X1, and 20X0, to Form 5500: - ![](https://asc.understandingaccounting.org/asc-img/GUID-33CCB203-651C-4F89-AF04-11414A2C70BE-low.gif) 20X1 20X0 "Net assets available for benefits per the financial statements" " $9,238,000 " " $8,054,000 " Amounts allocated to withdrawing participants " (50,000)" " (35,000)" Net assets available for benefits per the Form 5500 " $9,188,000 " " $8,019,000 " - The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 20X1, to Form 5500: - ![](https://asc.understandingaccounting.org/asc-img/GUID-7D103E67-C083-4AC2-9BF8-03D437839111-low.gif) "Benefits paid to participants per the financial statements" " $526,000 " "Add: Amounts allocated to withdrawing participants at December 31, 20X1" " 50,000 " "Less: Amounts allocated to withdrawing participants at December 31, 20X0" " (35,000)" Benefits paid to participants per Form 5500 " $541,000 " - Amounts allocated to withdrawing participants are recorded on Form 5500 for benefit claims that have been processed and approved for payment before year-end, but not yet paid as of that date. ##### [325-962-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:34.441Z to 2026-09-09T23:48:34.441Z Record version: sha256:f7237ec115973d30e09aae6d77f7cfe8a20ee1d9ac11dd3ef45432880c7fa13b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraphs [962-325-50-8A through 50-8C](https://asc.understandingaccounting.org/asc/325/962/#325-962-50-8A) for the interest a plan has in each master trust. The plan's interest in the master trust, as presented on the statement of net assets available for benefits, is $8,540,000 as of December 31, 20X2. In this Example, the plan has a divided interest in the master trust; however, those disclosures also are required for plans with undivided interests. - ![](https://asc.understandingaccounting.org/asc-img/GUID-B8989318-2F2B-4AC1-B582-4DD621A203A4-low.gif) Master Trust Balances Plan's Interest in Master Trust Balances Mutual funds " $13,560,000 " " $6,816,800 " Common stocks " 2,245,000 " " 1,638,200 " U.S. government securities " 575,000 " - Corporate bonds " 327,500 " - Total investments at fair value " 16,707,500 " " 8,455,000 " Plus: Due from broker for securities sold " 225,000 " " 100,000 " Accrued interest and dividends " 125,000 " " 50,000 " Less: Due to broker for securities purchased " (95,000)" " (50,000)" Accrued expenses " (30,000)" " (15,000)" Total " $16,932,500 " " $8,540,000 " Source downloaded (UTC): 2026-09-09T23:48:36.902Z to 2026-09-09T23:48:56.941Z Record version: sha256:7c629c6be8a9211f7ec8d1c9860e6795b883e47da9068161896dbccc7d7c204a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965: Investments—Other — Plan Accounting—Health and Welfare Benefit Plans ### Machine-generated study aids ```json { "summary": "ASC 325-965 (parallel to 965-325) governs how health and welfare benefit plans measure, present, and disclose their investments and insurance contracts. The core rule is that plan investments are reported at fair value less costs to sell, if significant, at the financial statement date, except that insurance contracts are presented as reported in the plan's ERISA Form 5500 filing (fair value or contract value) and fully benefit-responsive investment contracts of defined contribution plans are measured at contract value. Presentation is by general type of investment, with specified disclosures for benefit-responsive contracts and for plan interests in master trusts.", "key_points": [ "Plan investments — equity and debt securities, real estate, and other investments other than insurance contracts and fully benefit-responsive investment contracts — are reported at fair value less costs to sell, if significant, reduced by brokerage commissions and other normal selling costs (325-965-35-1; 35-1A).", "Insurance contracts as defined in Subtopic 944-20 are presented the same way as in the plan's ERISA annual report — either fair value or contract value determined by the insurance entity — and non-ERISA plans report as if subject to the Act (325-965-35-3); investment contracts held by defined benefit health and welfare plans are reported at fair value (325-965-35-2).", "Contract value is the relevant measure for the portion of net assets available for benefits of a defined contribution health and welfare plan attributable to fully benefit-responsive investment contracts (325-965-35-8), with each contract evaluated individually and prospective-rate contracts still qualifying if the crediting rate cannot be less than zero (325-965-35-6).", "A plan whose fiscal year-end is not a month-end may elect to measure investments and investment-related accounts as of the closest month-end, applied consistently, and must disclose the election, the measurement date, and any contributions, distributions, or significant events between that date and fiscal year-end (325-965-35-2A; 50-1B; 50-1C).", "Investments measured at fair value must be presented by general type — registered investment companies, government securities, short-term securities, corporate bonds, common stocks, mortgages, real estate — and in enough detail to show whether fair values used quoted prices in an active market (325-965-45-1; 45-2).", "For fully benefit-responsive investment contracts, the plan discloses in the aggregate the nature of the contracts by type, events limiting its ability to transact at contract value (with a statement that their occurrence is not probable), events allowing issuers to terminate at other than contract value, and total contract value of each type (325-965-50-2).", "Master trust disclosures require net appreciation/depreciation in fair value and investment income, the basis for allocating net assets and investment income, the plan's percentage interest if undivided, master trust investments by general type, and the plan's dollar interest in each type and in other master trust assets and liabilities (325-965-50-5 through 50-9)." ], "categories": [ "Subsequent measurement", "Fair value", "Disclosure", "Industry-specific" ], "audience_level": "advanced", "student_note": "Exam traps here are the exceptions to fair value: insurance contracts follow whatever basis the plan uses on its Form 5500, and fully benefit-responsive investment contracts in defined contribution plans are carried at contract value (not fair value with an adjustment, which ASU 2015-12 eliminated). Also note the \"less costs to sell, if significant\" qualifier — health and welfare plan investments are not simply reported at fair value.", "related_topics": [ "965-325", "962-325", "820-10", "944-20", "965-10", "450" ], "key_concepts": [ "health and welfare benefit plan", "fair value less costs to sell", "fully benefit-responsive investment contract", "contract value", "insurance contract", "master trust interest", "net assets available for benefits", "defined contribution plan" ] } ``` Source downloaded (UTC): 2026-09-09T23:48:36.902Z to 2026-09-09T23:48:36.902Z Record version: sha256:c250104dddd4618cfce3eed640f6010c1b0d36bd8aa2a16be19311aef907419e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/965/#00-status) SEC content: no ##### [325-965-00-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:36.902Z to 2026-09-09T23:48:36.902Z Record version: sha256:565d3490991e0edfcdc5070efe551a8b8fef290bb80501bc120f30c90214b6fb 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
Benefit-Responsive Investment ContractSupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Contract Value of a Fully Benefit-Responsive Investment ContractSupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
Contract Value of a Fully Benefit-Responsive Investment ContractAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution PlanAmendedAccounting Standards Update No. 2014-0603/14/2014
Fair Value (2nd def.)SupersededAccounting Standards Update No. 2012-0410/01/2012
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
Net Assets Available for BenefitsAddedAccounting Standards Update No. 2012-0410/01/2012
Plan Assets (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Plan Assets (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
965-325-05-2AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-35-1AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-35-1AAddedAccounting Standards Update No. 2012-0410/01/2012
965-325-35-2AAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
965-325-35-6AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-35-6AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-35-8AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-35-9SupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-45-2AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-45-2AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-45-2AmendedAccounting Standards Update No. 2013-0806/07/2013
965-325-45-2AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-50-1AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-50-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-50-1ASupersededAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-50-1AAddedAccounting Standards Update No. 2012-0410/01/2012
965-325-50-1BAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
965-325-50-1CAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
965-325-50-2AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-50-3SupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-50-3AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-50-4AddedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-50-5 through 50-9
AddedAccounting Standards Update No. 2017-0602/27/2017
965-325-55-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-55-3AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-55-8AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:c2a2338c42aec145e5ce6d5104eb09bddc3c24e98d7f9c25852511d677a578d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/965/#05-overview-and-background) SEC content: no ##### [325-965-05-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:f1460ab6ec09fe34042c770cf01051d999e5ec66f1bd0e5a8538b44b0dfec383 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investment and insurance contracts for [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services."). ##### [325-965-05-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:07b28e6216ccd6f12a66a6cdd384dc69a1d2dcc9a63212772d03c22f2392d688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Defined benefit plans](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)") provide participants with a determinable benefit based on a formula provided for in the plans, whereas [defined contribution plans](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.") provide benefits based on amounts contributed to an employee's individual account plus or minus all of the following: 1. a Forfeitures 2. b Investment experience 3. c Administrative expenses. ##### [325-965-05-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:4b0dd20c557a31ec55e36cf99f903144d6aced653a3860dc1977d710c00bcaa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In such defined contribution plans, plan participants have a vested interest in monitoring the financial condition and operations of the plan since they bear investment risk under these plans, and plan transactions can directly affect their benefits (for example, investment mix, and risk and return). ##### [325-965-05-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:77b68ab8f74f5beed34ecf66f528a8d69979dd6b81e3e9b0b0d4cf9313197609 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Internal Revenue Code generally requires that all investment experience under defined contribution plans be allocated to individual account balances. Source downloaded (UTC): 2026-09-09T23:48:40.710Z to 2026-09-09T23:48:40.710Z Record version: sha256:6a897243842aa2444bed4f08ca1eb0f70b11730d350f331d36ba6751e4c13a53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/325/965/#10-objectives) SEC content: no ##### [325-965-10-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-10-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:40.710Z to 2026-09-09T23:48:40.710Z Record version: sha256:c9e7f333f7d0a3985d126a05a5e3a2c1ebed49051f95d6e17ed35b356e606c14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan assets of [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services.") shall be measured and reported at values that are meaningful to financial statement users, including plan participants. Source downloaded (UTC): 2026-09-09T23:48:44.472Z to 2026-09-09T23:48:44.472Z Record version: sha256:add015af9309fadb4cfdab2bf6a855261257022ffc0314fa7490dfd77d2b3478 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/965/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-965-15-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:44.472Z to 2026-09-09T23:48:44.472Z Record version: sha256:38b6724deaa58f3a6793e39ae1c666a6c5510b2a46f5c51a2ec35a027b788a1e 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 965-10-15. Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:bac5359b97b65d96cd26dfa3cead1e62d15bd6130be042eb5de9f5a2b157ac6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/965/#35-subsequent-measurement) SEC content: no #### Reporting at Fair Value ##### [325-965-35-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:5afe78c24fbef4b4d837e1603ea8105507f3e78d00958db197c5fc26d41dc3c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan investments, whether they are in the form of equity or debt securities, real estate, or other investments (excluding insurance contracts and [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness.") \[see paragraph [965-325-35-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-3) for special provisions on the valuation of insurance contracts and paragraph [965-325-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) for special provisions on the valuation of fully benefit-responsive investment contracts\]), shall be reported at their [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") less costs to sell, if significant, at the financial statement date. ##### [325-965-35-1A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:b0446115217ef653ffbfa8cc9e00063a9f353514d7f43b278e959c7e75f50628 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If significant, the fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale. ##### [325-965-35-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:9eeaecf563b76431a24ebebf6f476249dd59fb42b2f0769cdcd4a445824b51c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment contracts held by defined benefit [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services.") shall be reported at their fair values. ##### [325-965-35-2A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:76c9d0dfa0ef7a32f86dea0bd4e4321007dc331d9cae676a3827eb9adf86a412 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan's fiscal year-end does not coincide with a month-end, the plan may measure investments and investment-related accounts (for example, a liability for a pending trade with a broker) using the month-end that is closest to the plan's fiscal year-end. That election shall be applied consistently from year to year. #### Insurance Contracts ##### [325-965-35-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:fbb53dbc3a51d439b7f714c2cd761af98d4aa7613c372ef3dff91ff94dd033bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Insurance contracts, as defined by Subtopic 944-20, shall be presented in the same manner as specified in the annual report filed by the plan with certain governmental agencies pursuant to the Employee Retirement Income Security Act; that is, either at fair value or at amounts determined by the insurance entity (contract value). Plans not subject to the Employee Retirement Income Security Act shall present insurance contracts as if the plans were subject to the reporting requirements of the Act. ##### [325-965-35-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:8d2325b88b0b609b7928ab0c967652509efb7a64a1fe17ead1411dd9b3348aa1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [944-20-05-5 through 05-7](https://asc.understandingaccounting.org/asc/944/20/#944-20-05-5) for a discussion of the purpose, types, and a general characterization of insurance transactions. ##### [325-965-35-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:6a81424095750edb631b9bb87e3d4ef08ae1c7dc202d68f93060f64ccf74249b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [944-20-15-16 through 15-19](https://asc.understandingaccounting.org/asc/944/20/#944-20-15-16) for a discussion of certain types of insurance contracts, including long-duration contracts that do not subject the insurance entities to mortality or morbidity risks (investment contracts) and annuity contracts. #### Investment Contracts ##### [325-965-35-6](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:49c9bfb5c85eb37c953c00f413832eb62cc121af32d71e84fcc8a0ed429ffedd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan holds multiple contracts, each contract shall be evaluated individually for benefit responsiveness. Contracts that provide for prospective interest adjustments may still be fully benefit-responsive provided that the terms of the contracts specify that the crediting interest rate cannot be less than zero. ##### [325-965-35-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:53d6aa5951e244eb710e272204a0d8307095cd8edf9505bce0032c855e75f259 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 965-325-55 includes implementation guidance for the application of the definition of fully benefit-responsive for defined contribution health and welfare plan investments. ##### [325-965-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:74e27bd2f4cf51292eeec59b1143e55d8d90027c21c914fd8c3dbd3c65a58fba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution health and welfare benefit plan attributable to fully benefit-responsive investment contracts. ##### [325-965-35-9](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:7425261792dbcc776382a8c223984c6fced2b30d04430030fc1abb0fd14cd400 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part I). Source downloaded (UTC): 2026-09-09T23:48:51.726Z to 2026-09-09T23:48:51.726Z Record version: sha256:526e6bbc0fba3db9da70c563c7e44b4ef19187d6bd2cbc16a131873925314306 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/965/#45-other-presentation-matters) SEC content: no ##### [325-965-45-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:51.726Z to 2026-09-09T23:48:51.726Z Record version: sha256:a7543e7b25c167a881909f3c614c66a6b4e205aef79e21152f551a3b154751df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information regarding a plan's investments shall be presented in enough detail to identify the types of investments and shall indicate whether reported fair values have been measured by quoted prices in an active market or have been determined otherwise (paragraph [965-325-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2) specifies additional disclosures related to investments). ##### [325-965-45-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:51.726Z to 2026-09-09T23:48:51.726Z Record version: sha256:b26e9d1b7eb4b10cb60d940ad0730e709e3d3dd1add833d208df13d564e7bb3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments measured using fair value in the statement of net assets available for benefits or in the notes shall be presented by general type, including the following: 1. a Registered investment companies (also known as mutual funds) 2. b Government securities 3. c Short-term securities 4. d Corporate bonds 5. e Common stocks 6. f Mortgages 7. g [Subparagraph superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/updates/asu-2012-04/). 8. h Real estate. For the presentation of [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."), which are measured at contract value, see paragraphs [965-325-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) and [965-325-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2). Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:c3882f0720c2ee2a0b4c5cc947f9e8089c6481448b7009547078e23d3417d0bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/965/#50-disclosure) SEC content: no ##### [325-965-50-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:6ca87c2a6355e74102d8f4f261bc2347498b56bcccabc9d08a730adc8a4d29b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of a [health and welfare benefit plan's](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services.") accounting policies shall include a description of the valuation techniques and inputs used to measure the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") less costs to sell, if significant, of investments (as required by Section 820-10-50) and a description of the methods and significant assumptions used to measure the reported value of insurance contracts. However, health and welfare benefit plans are exempt from the requirements in paragraph [820-10-50-2B(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2B) to disaggregate assets by nature, characteristics, and risks. The disclosures of information by classes of assets required by Section 820-10-50 shall be provided by general type of plan assets consistent with paragraph [965-325-45-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-45-2). ##### [325-965-50-1A](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:f485a497584ad0db283f74e40d186747dbd2d398aee2b70a265eb79cf8aaaca5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part II). ##### [325-965-50-1B](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:a6af4cb05d232053d667981c4abf8e80f68a4974a5457b8ced9f3612459e3131 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If applicable, a plan shall disclose the accounting policy election to measure investments and investment-related accounts using the month-end that is closest to the plan's fiscal year-end in accordance with paragraph [965-325-35-2A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2A) and the month-end measurement date. ##### [325-965-50-1C](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1C) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:150c6a65fc7834ff0463eabff8e6556303c12e482ae68cb3f17ef0a5db847f45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan measures investments and investment-related accounts in accordance with paragraph [965-325-35-2A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2A) and contributions, distributions, and/or significant events (such as a plan amendment, a merger, or a termination) occur between the month-end date used to measure investments and investment-related accounts and the plan's fiscal year-end, the plan shall disclose the amounts of those contributions, distributions, and/or significant events. #### Fully Benefit-Responsive Investment Contracts ##### [325-965-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:87e3622e1feea67d95936a14793d47fc2433a9dbdd50dd335e9849ac1f5c810d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Health and welfare plans shall disclose the following in connection with [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."), in the aggregate: 1. a A description of the nature of those investment contracts (including how they operate) by the type of investment contract (for example, synthetic investment contracts or traditional investment contracts). 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 2. b [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 3. c [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 4. d A description of the events that limit the ability of the plan to transact at contract value with the issuer, including a statement that the occurrence of each of those events that would limit the plan's ability to transact at contract value with participants in the plan is not probable of occurring (the term _probable_ is used in this Subtopic consistent with its use in Topic 450). Such events might include, among others, all of the following: 1. 1 Premature termination of the contracts by the plan 2. 2 Plant closings 3. 3 Layoffs 4. 4 Plan termination 5. 5 Bankruptcy 6. 6 Mergers 7. 7 Early retirement incentives. 5. e A description of the events and circumstances that would allow issuers to terminate fully benefit-responsive investment contracts with the plan and settle at an amount different from contract value. 6. f The total contract value of each type of investment contract (for example, synthetic investment contracts or traditional investment contracts). ##### [325-965-50-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:c5dbaa2f8b9a23800e5e1fb305c1f42fa6a92061ec36080d6cb46d1d300be680 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part I). #### Investments Measured Using the Net Asset Value per Share Practical Expedient ##### [325-965-50-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:cf5c7230e814f7cbae3ee5213a17ce169194b24a93831edb58e38717293fee4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an investment is measured using the net asset value per share (or its equivalent) practical expedient in paragraph [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) and that investment is in a fund that files U.S. Department of Labor Form 5500 as a direct filing entity, disclosure of that investment's significant investment strategy, as discussed in paragraph [820-10-50-6A(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-6A), is not required. #### Interests in Master Trusts ##### [325-965-50-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:2c265f863e40c8eb67d268ab9cfe1f509743d3e9399ed035946ad86fcb680855 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the following in the notes to financial statements for each period for which a statement of changes in net assets available for benefits is presented: 1. a Net appreciation or depreciation in the fair value of investments of the master trust. Net appreciation or depreciation includes realized gains and losses on investments that were both purchased and sold during the period as well as unrealized appreciation or depreciation of the investments held at year-end. 2. b Investment income (exclusive of (a)). ##### [325-965-50-6](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:7956785f40fc153c0e1b57fb6b4c8bf88464e2ae4ed6847e048c09e08ecf17cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall include in the notes to financial statements both of the following: 1. a Description of the basis used to allocate both of the following: 1. 1 Net assets 2. 2 Total investment income. See paragraph [965-325-50-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-5) for the components of total investment income. 2. b For a plan with an undivided interest in the master trust (that is, when the plan has a proportionate, rather than specific, interest in the master trust), its percentage interest in the master trust as of the date of each statement of net assets available for benefits presented. ##### [325-965-50-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:2325cb9f12dd3a2cabc310b51d8f5f6c3b144562597c52e2d70151a82fad2d46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the notes to financial statements a plan shall include the investments of a master trust measured using fair value presented by general type of investment, such as the following, as of the date of each statement of net assets available for benefits presented: 1. a Registered investment companies (for example, mutual funds) 2. b Government securities 3. c Common-collective trusts 4. d Pooled separate accounts 5. e Short-term securities 6. f Corporate bonds 7. g Common stocks 8. h Mortgages 9. i Real estate. For the presentation of [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."), which are measured at contract value, see paragraphs [965-325-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) and [965-325-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2). ##### [325-965-50-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:47f1bbd7d5f9102fc9900cb91adc59ea46eb2ae2e888469a29ba046e85287ecd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the dollar amount of its interest in each general type of investment held by the master trust, consistent with the disclosure required by paragraph [965-325-50-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-7). See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. ##### [325-965-50-9](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:0d95666adfc510f7a892a7237e769fe985939bc6f2791aaf5cd647eb8489a161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall disclose the master trust's other assets and liabilities and the dollar amount of the plan's interest in each of those other assets and liabilities. Examples of those balances include the following: 1. a Amounts due from brokers for securities sold 2. b Amounts due to brokers for securities purchased 3. c Receivables relating to derivatives 4. d Payables relating to derivatives 5. e Accrued interest and dividends 6. f Accrued expenses. See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:9b1c0f3a64bff96fadee9e05022071743806afd3deaee7054d5f3d184ab5ef64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/325/965/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [325-965-55-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:4239593e912df8b9371bed17ca8bb819631f4e97b1464c03c9946216d50fb714 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Implementation guidance in Section 962-325-55 illustrates the guidance in paragraphs [965-325-35-6 through 35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-6) for the application of [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") less costs to sell, if significant, and contract value reporting for health and welfare plan investments. In each situation, value is determined within the context of the objectives of financial statements for a [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account."). The valuation must reflect the ability of the plan to pay benefits from the perspective of the participants. This value is then reflected on participants' statements to disclose the amount they can expect to receive when they exercise their rights to withdraw, borrow, or transfer funds under the terms of the plan. ##### [325-965-55-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:21395de4efaff423e3eb9557bbb33d4391517f2128dc28725c8c13ddac6c77ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-3) for implementation guidance on a five-year public bond (or portfolio of bonds) that is guaranteed by a third party to have a fixed value at the end of three years. ##### [325-965-55-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:7559136cfc465014b3f583f3fc22f0584474c5b4d12fc42eaf2defa9fa43dc8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [962-325-55-5 through 55-7](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-5) for implementation guidance on a [fully benefit-responsive investment contract](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness."). ##### [325-965-55-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:724515e09797a2f226bfe4ccc8029c002627eccf5862b74d638bcbcee985644a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-8](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-8) for implementation guidance on a five-year, non-benefit-responsive investment contract that has no liquid market for trading. ##### [325-965-55-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:12a692c037b9dcc578b370ed7f868995b02d9449db8da3b13fa367a1cd8648ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-10](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-10) for implementation guidance on a benefit-responsive participating separate account investment contract. ##### [325-965-55-6](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:1a0d2aa0c0f7c043867ac87d3ba9fe2ef6bf62b5a947c85ccfb9c1412a8e50c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-12](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-12) for implementation guidance on a synthetic contract (managed type). ##### [325-965-55-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:f9fcb622882ad2a72d81923a1356ff9eeddba5a18e26b05f02b18f170e19d758 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-13](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-13) for implementation guidance on a synthetic investment contract (repurchase type). #### Illustrations ##### [325-965-55-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:c5d10411f317beca4614eaa1ce4f05d1a59beffce9f5a171760b9cdc5da1ee80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 2 (paragraph [962-325-55-17](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-17)) for financial statements that illustrate certain applications of the provisions of this Subtopic that apply to the annual financial statements of a defined contribution plan.