# ASC 405-946: Liabilities — Financial Services—Investment Companies

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/405/946/)

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## ASC 405-946: Liabilities — Financial Services—Investment Companies

### Machine-generated study aids

```json
{
  "summary": "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": [
    "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)."
  ],
  "categories": [
    "Presentation",
    "Industry-specific",
    "Foreign currency",
    "Financial statement presentation"
  ],
  "audience_level": "intermediate",
  "student_note": "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.",
  "related_topics": [
    "946-10",
    "946-210",
    "830",
    "405-20",
    "860-30"
  ],
  "key_concepts": [
    "investment company",
    "statement of assets and liabilities",
    "accounts payable",
    "securities lending collateral",
    "dividends and distributions payable",
    "foreign currency payables",
    "functional currency",
    "capital stock reacquired"
  ]
}
```

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## ASC 405-946-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/405/946/#05-overview-and-background)

SEC content: no

##### [405-946-05-1](https://asc.understandingaccounting.org/asc/405/946/#405-946-05-1)

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

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## ASC 405-946-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/405/946/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [405-946-15-1](https://asc.understandingaccounting.org/asc/405/946/#405-946-15-1)

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

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## ASC 405-946-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/405/946/#45-other-presentation-matters)

SEC content: no

#### Statement of Assets and Liabilities or Statement of Net Assets

##### [405-946-45-1](https://asc.understandingaccounting.org/asc/405/946/#405-946-45-1)

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

##### [405-946-45-2](https://asc.understandingaccounting.org/asc/405/946/#405-946-45-2)

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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.