# ASC 326-30-50: Financial Instruments—Credit Losses — Available-for-Sale Debt Securities — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/326/30/#50-disclosure) 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): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:7e63296b8ec08f140a1b6d8b798491785f6cbdd5fc975ebd4a7054bb7b632c14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 326-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/326/30/#50-disclosure) SEC content: no ##### [326-30-50-1](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:fbdeefe537b3b8af2a5794450cbacb9f682c9f0ad1a7a7c20f413e66d631f5bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For instruments within the scope of this Subtopic, this Section provides the following disclosure guidance related to credit risk and the measurement of credit losses: 1. a [Available-for-sale](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") [debt securities](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.") in unrealized loss positions without an allowance for credit losses 2. b Allowance for credit losses 3. c [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."). ##### [326-30-50-2](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:dd06c07eec3ee1b969ea3751120dc6671f2275d3826b50d34d7287f62c8fe838 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure guidance in this Section should enable a user of the financial statements to understand the following: 1. a The credit risk inherent in available-for-sale debt securities 2. b Management's estimate of credit losses 3. c Changes in the estimate of credit losses that have taken place during the period. ##### [326-30-50-3](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:6647c715f05ce9d87fe4f7ccb02fbe7a06f4afac592df6c25f1a04522045b598 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall determine, in light of the facts and circumstances, how much detail it must provide to satisfy the disclosure requirements in this Section and how it disaggregates information into major security types. An entity must strike a balance between obscuring important information as a result of too much aggregation and overburdening financial statements with excessive detail that may not assist a financial statement user to understand an entity's securities and allowance for credit losses. For example, an entity should not obscure important information by including it with a large amount of insignificant detail. Similarly, an entity should not disclose information that is so aggregated that it obscures important differences between the different types of [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") and associated risks. ##### [326-30-50-3A](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-3A) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:8b2c1e78175856ea9e6b4febf306dbb2562107e20433d8e231ee5ef0bdf7b79f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that makes the accounting policy election to present separately the accrued interest receivable balance within another statement of financial position line item as described in paragraph [326-30-45-1](https://asc.understandingaccounting.org/asc/326/30/#326-30-45-1) shall disclose the amount of applicable accrued interest, net of the allowance for credit losses (if any), and shall disclose in which line item on the statement of financial position that amount is presented. ##### [326-30-50-3B](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-3B) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:8df6c41c14ea0bdcef91a3f3fcea7bbf0f37fb181400c5245c9bb1e489d0b4c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If for the purposes of identifying and measuring an impairment the applicable accrued interest is excluded from both 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.") and the [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") of the available-for-sale debt security, an entity may, as a practical expedient, exclude the applicable accrued interest that is included in the amortized cost basis for the purposes of the disclosure requirements in paragraphs [326-30-50-4 through 50-10](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-4) . If an entity elects this practical expedient, it shall disclose the total amount of accrued interest, net of the allowance for credit losses (if any), excluded from the disclosed amortized cost basis. ##### [326-30-50-3C](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-3C) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:ba8671536ab22da4567b2186d64f33b18cfe188e6e1c95e23b4caf5d744a88e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that makes the accounting policy election in paragraph [326-30-30-1B](https://asc.understandingaccounting.org/asc/326/30/#326-30-30-1B) shall disclose its accounting policy not to measure an allowance for credit losses for accrued interest receivables. The accounting policy shall include information about what time period or periods, at the major security-type level, are considered timely. ##### [326-30-50-3D](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-3D) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:81b2afc55397dbf62efe14f73674237edcbd7c199767343288ed8dd987bcba79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that makes the accounting policy election in paragraph [326-30-35-13A](https://asc.understandingaccounting.org/asc/326/30/#326-30-35-13A) shall disclose its accounting policy to write off accrued interest receivables by reversing interest income or recognizing credit loss expense or a combination of both. The entity also shall disclose the amount of accrued interest receivables written off by reversing interest income by major security type. #### Available-for-Sale Debt Securities in Unrealized Loss Positions without an Allowance for Credit Losses ##### [326-30-50-4](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:62cf64e6977462aad5b97ba29c3581e92617cb14fa73c3bebf3f52c4cf06038f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For [available-for-sale](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") [debt securities](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."), including those that fall within the scope of Subtopic 325-40 on beneficial interests in securitized financial assets, in an unrealized loss position for which an allowance for credit losses has not been recorded, an entity shall disclose all of the following in its interim and annual financial statements: 1. a As of each date for which a statement of financial position is presented, quantitative information, aggregated by category of investment—each major security type that the entity discloses in accordance with this Subtopic—in tabular form: 1. 1 The aggregate related fair value of investments with unrealized losses 2. 2 The aggregate amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value). 2. b As of the date of the most recent statement of financial position, additional information (in narrative form) that provides sufficient information to allow a financial statement user to understand the quantitative disclosures and the information that the entity considered (both positive and negative) in reaching the conclusion that an allowance for credit losses is unnecessary. The disclosures required may be aggregated by investment categories, but individually significant unrealized losses generally shall not be aggregated. This disclosure could include all of the following: 1. 1 The nature of the investment(s) 2. 2 The cause(s) of the impairment(s) 3. 3 The number of investment positions that are in an unrealized loss position 4. 4 The severity of the impairment(s) 5. 5 Other evidence considered by the investor in reaching its conclusion that an allowance for credit losses is not necessary, including, for example, any of the following: 1. i Performance indicators of the underlying assets in the security, including any of the following: 1. 01 Default rates 2. 02 Delinquency rates 3. 03 Percentage of nonperforming assets. 2. ii Debt-to-collateral-value ratios 3. iii Third-party guarantees 4. iv Current levels of subordination 5. v Vintage 6. vi Geographic concentration 7. vii Industry analyst reports 8. viii Credit ratings 9. ix Volatility of the security's fair value 10. x Interest rate changes since purchase 11. xi Any other information that the investor considers relevant. ##### [326-30-50-5](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-5) Pending content: yes Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:b20e59d1d535ca122513aff78f1c2806dbcb709ba2d7331dd3465fea2460f755 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures in (a)(1) through (a)(2) in paragraph [326-30-50-4](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-4) shall be disaggregated by those investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or longer. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, the disclosures in (a)(1) through (a)(2) in paragraph [326-30-50-4](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-4) shall be disaggregated by those investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or longer. ##### [326-30-50-6](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-6) Pending content: yes Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:fe5c873b4f9a76fbf548aa360c8f5c8e376448e5a189b55fe96d98d32d7ef6ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reference point for determining how long an investment has been in a continuous unrealized loss position is the balance sheet date of the reporting period in which the impairment is identified. For entities that do not prepare interim financial information, the reference point is the annual balance sheet date of the period during which the impairment was identified. The continuous unrealized loss position ceases upon the investor becoming aware of a recovery of fair value up to (or beyond) the amortized cost basis of the investment during the period. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The reference point for determining how long an investment has been in a continuous unrealized loss position is the balance sheet date of the reporting period in which the impairment is identified. For entities that do not prepare interim financial statements and notes in accordance with generally accepted accounting principles, the reference point is the annual balance sheet date of the period during which the impairment was identified. The continuous unrealized loss position ceases upon the investor becoming aware of a recovery of fair value up to (or beyond) the amortized cost basis of the investment during the period. #### Allowance for Credit Losses ##### [326-30-50-7](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:e3a15a95fd7aa5dc77bceb196d06419a6ac8ac7c9513733a92d003897a5fca09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For interim and annual periods in which an allowance for credit losses of an [available-for-sale](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") [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.") is recorded, an entity shall disclose by major security type, the methodology and significant inputs used to measure the amount related to credit loss, including its accounting policy for recognizing writeoffs of uncollectible available-for-sale debt securities. Examples of significant inputs include, but are not limited to, all of the following: 1. a Performance indicators of the underlying assets in the security, including all of the following: 1. 1 Default rates 2. 2 Delinquency rates 3. 3 Percentage of nonperforming assets 2. b Debt-to-collateral-value ratios 3. c Third-party guarantees 4. d Current levels of subordination 5. e Vintage 6. f Geographic concentration 7. g Industry analyst reports and forecasts 8. h Credit ratings 9. i Other market data that are relevant to the collectibility of the security. ##### [326-30-50-8](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-8) Pending content: yes Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:9efa33e6ff8d492bc12d8accf2268d925e1c28a6f8c0b56042537ed3ec5b0120 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [326-30-45-3](https://asc.understandingaccounting.org/asc/326/30/#326-30-45-3) explains that an entity may report the change in the allowance for credit losses due to changes in time value as credit loss expense (or reversal of credit loss expense) but also may report the change as interest income. An entity that chooses the latter alternative shall disclose the amount recorded to interest income that represents the change in present value attributable to the passage of time. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Paragraph [326-30-45-3](https://asc.understandingaccounting.org/asc/326/30/#326-30-45-3) explains that an entity may report the change in the allowance for credit losses due to changes in time value as credit loss expense (or reversal of credit loss expense) but also may report the change as interest income. An entity that chooses the latter alternative shall disclose in interim and annual reporting periods the amount recorded to interest income that represents the change in present value attributable to the passage of time. ##### [326-30-50-9](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-9) Pending content: yes Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:9d6c9ffb45ebecaa8261e1f109a419ad6dcc93c6a084f3ef76294ff5a6b503b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each interim and annual reporting period presented, an entity shall disclose by major security type, a tabular rollforward of the allowance for credit losses, which shall include, at a minimum, all of the following: 1. a The beginning balance of the allowance for credit losses on [available-for-sale](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") [debt securities](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.") held by the entity at the beginning of the period 2. b Additions to the allowance for credit losses on securities for which credit losses were not previously recorded 3. c Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration (including beneficial interests that meet the criteria in paragraph [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A)) 4. d Reductions for securities sold during the period (realized) 5. e Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") 6. f If the entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, additional increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period 7. g Writeoffs charged against the allowance 8. h Recoveries of amounts previously written off 9. i The ending balance of the allowance for credit losses related to debt securities held by the entity at the end of the period. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)For each interim and annual reporting period presented, an entity shall disclose by major security type, a tabular rollforward of the allowance for credit losses, which shall include, at a minimum, all of the following: 1. a The beginning balance of the allowance for credit losses on [available-for-sale](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") [debt securities](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.") held by the entity at the beginning of the period 2. b Additions to the allowance for credit losses on securities for which credit losses were not previously recorded 3. c Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration (including beneficial interests that meet the criteria in paragraph [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A)) 4. d Reductions for securities sold during the period (realized) 5. e Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") 6. f If the entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, additional increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period 7. g Writeoffs charged against the allowance 8. h Recoveries of amounts previously written off 9. i The ending balance of the allowance for credit losses related to debt securities held by the entity at the end of the period. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. #### Purchased Financial Assets with Credit Deterioration ##### [326-30-50-10](https://asc.understandingaccounting.org/asc/326/30/#326-30-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:50:22.028Z to 2026-09-09T23:50:22.028Z Record version: sha256:9765b4d8cdc2f7786944ccb9c7178f05af2f370cb5463c8ee1873411118514fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent an entity acquired [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.") during the current reporting period, an entity shall provide a reconciliation of the difference between the purchase price of the assets and the par value of the [available-for-sale](https://asc.understandingaccounting.org/glossary/a/#available-for-sale-securities "Investments not classified as either trading securities or as held-to-maturity securities.") [debt securities](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."), including: 1. a The purchase price 2. b The allowance for credit losses at the acquisition date based on the acquirer's assessment 3. c The discount (or premium) attributable to other factors 4. d The par value.