ASC 405-946

Financial Services—Investment Companies

405 Liabilities

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Source downloaded: 2026-09-10T00:19:18.650Z.Record version b94af746a27e. Effective date must be checked in the source.

In brief

IntermediatePresentation Industry-specific Foreign currency Financial statement presentation

This Subtopic gives presentation guidance for liabilities in an investment company's statement of assets and liabilities. It requires accounts payable to be broken out separately for investment securities purchased and for capital stock reacquired, and describes what falls into "other liabilities." Foreign-currency payables are translated at current exchange rates and may be grouped with the corresponding functional currency payables.

Key points (4)

The Subtopic addresses an investment company's accounting for liabilities (405-946-05-1) and follows the scope of Section 946-10-15 (405-946-15-1).
Accounts payable must be listed separately for investment securities purchased and for capital stock reacquired (405-946-45-1).
Other liabilities includes amounts due to counterparties for collateral on return of securities loaned, deferred income, and dividends and distributions payable (405-946-45-2).
Payables denominated in foreign currencies are converted into the functional currency at current exchange rates and may be categorized within the corresponding functional currency payables (405-946-45-2).

For students. This is a short, purely presentational subtopic: it dictates line-item detail on a fund's statement of assets and liabilities rather than recognition or measurement. A common misunderstanding is thinking it changes how liabilities are measured — measurement still comes from the general liability and foreign currency guidance.

investment company statement of assets and liabilities accounts payable securities lending collateral dividends and distributions payable foreign currency payables functional currency capital stock reacquired

Machine-generated study aid for ASC 405-946. Check the source paragraphs below.

405-946-05Overview and Background

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405-946-05-1

This Subtopic addresses an investment company's accounting for liabilities.

405-946-15Scope and Scope Exceptions

Source downloaded: 2026-09-10T00:19:16.060Z.Record version 827b997456fa. Effective date must be checked in the source.

Overall Guidance

405-946-15-1

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

405-946-45Other Presentation Matters

Source downloaded: 2026-09-10T00:19:18.650Z.Record version 3c6f6f66a325. Effective date must be checked in the source.

Statement of Assets and Liabilities or Statement of Net Assets

405-946-45-1

Accounts payable shall be listed separately for investment securities purchased and capital stock reacquired.

405-946-45-2

The line item other liabilities includes amounts due to counterparties for collateral on return of securities loaned, deferred income, and dividends and distributions payable. Payables denominated in foreign currencies shall be converted into the functional currency at current exchange rates and may be categorized within the corresponding functional currency payables.