# ASC 405-942-25: Liabilities — Financial Services—Depository and Lending — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/405/942/#25-recognition)

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## ASC 405-942-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/405/942/#25-recognition)

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#### Short Sales of Securities

##### [405-942-25-1](https://asc.understandingaccounting.org/asc/405/942/#405-942-25-1)

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The obligations incurred in short sales shall be reported as liabilities. Such liabilities are generally called securities sold, not yet purchased.

##### [405-942-25-2](https://asc.understandingaccounting.org/asc/405/942/#405-942-25-2)

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See paragraph [815-10-55-57](https://asc.understandingaccounting.org/asc/815/10/#815-10-55-57) for additional guidance concerning short sales.

#### Deposits

##### [405-942-25-3](https://asc.understandingaccounting.org/asc/405/942/#405-942-25-3)

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The institution's liability for deposits originates and shall be recognized at the time deposits are received rather than when the institution collects the funds. Checks that are deposited by customers and that are in the process of collection and are currently not available for withdrawal (deposit float) shall be recorded as assets and liabilities. Deposits shall not be recorded based solely on collections.

#### Member Deposits

##### [405-942-25-4](https://asc.understandingaccounting.org/asc/405/942/#405-942-25-4)

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Credit unions and corporate credit unions shall report unequivocally all member deposit accounts, including member shares, as liabilities in the statement of financial condition.