{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/505/10/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"505","topic_title":"Equity","subtopic":"505-10","subtopic_title":"Overall","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"505-10-25-1","para":"25-1","html":"
Additional paid-in capital, however created, shall not be used to relieve income of the current or future years of charges that would otherwise be made to the income statement. See paragraph 852-20-25-2 for an exception to this guidance related to reorganizations.
","snippet":"Additional paid-in capital, however created, shall not be used to relieve income of the current or future years of charges that would otherwise be made to the income statement. See paragraph 852-20-25-2 for an exception …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e371257e4b0fd3f677abf685c4aaf68da5fd65647639338682daabcaaef5cabb","downloaded_from":"2026-09-10T00:36:43.800Z","last_downloaded_at":"2026-09-10T00:36:43.800Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481198","source_sha256":"272e245d09955e938db9a54a6d3af908dbd3c751b9b083767c5383db6f9d7304"}},{"citation":"505-10-25-2","para":"25-2","html":"
All of the following shall be excluded from the determination of net income or the results of operations under all circumstances:
  1. a
    Adjustments or charges or credits resulting from transactions in the entity's own capital stock
  2. b
    Transfers to and from accounts properly designated as appropriated retained earnings (see paragraph 505-10-45-3 for what is meant by properly designated as appropriated retained earnings)
  3. c
    Adjustments made pursuant to a quasi-reorganization (see Subtopic 852-20 for information concerning quasi-reorganizations).
","snippet":"All of the following shall be excluded from the determination of net income or the results of operations under all circumstances:\n(a) Adjustments or charges or credits resulting from transactions in the entity's own capi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ffc380493a4ee0a404315a99962d88e69faf7c954907dabb422620a3dfbe30a","downloaded_from":"2026-09-10T00:36:43.800Z","last_downloaded_at":"2026-09-10T00:36:43.800Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481198","source_sha256":"272e245d09955e938db9a54a6d3af908dbd3c751b9b083767c5383db6f9d7304"}},{"citation":"505-10-25-3","para":"25-3","html":"
Paragraphs
323-10-25-3 through 25-5
provide guidance on accounting for share-based compensation granted by an investor to employees or nonemployees of an equity method investee that provide goods or services to the investee that are used or consumed in the investee's operations. An investee shall recognize the costs of the share-based payment incurred by the investor on its behalf, and a corresponding capital contribution, as the costs are incurred on its behalf (that is, in the same period(s) as if the investor had paid cash to employees and nonemployees of the investee following the guidance in Topic 718 on stock compensation.
","snippet":"Paragraphs 323-10-25-3 through 25-5 provide guidance on accounting for share-based compensation granted by an investor to employees or nonemployees of an equity method investee that provide goods or services to the inves…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1edb4999d4a206d43659cb4c4caedb09f307d532aee29c4be315f6c26942a5be","downloaded_from":"2026-09-10T00:36:43.800Z","last_downloaded_at":"2026-09-10T00:36:43.800Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481198","source_sha256":"272e245d09955e938db9a54a6d3af908dbd3c751b9b083767c5383db6f9d7304"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98dd6d45f91c37cfc70a950e68d0b23eedfa632533eeedb2441a0648abc9639c","downloaded_from":"2026-09-10T00:36:43.800Z","last_downloaded_at":"2026-09-10T00:36:43.800Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481198","source_sha256":"272e245d09955e938db9a54a6d3af908dbd3c751b9b083767c5383db6f9d7304"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56c55b2329f7407efb1153d24456667e9d78d00af287e92b026c780bf99380aa","downloaded_from":"2026-09-10T00:36:43.800Z","last_downloaded_at":"2026-09-10T00:36:43.800Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481198","source_sha256":"272e245d09955e938db9a54a6d3af908dbd3c751b9b083767c5383db6f9d7304"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56c55b2329f7407efb1153d24456667e9d78d00af287e92b026c780bf99380aa","downloaded_from":"2026-09-10T00:36:43.800Z","last_downloaded_at":"2026-09-10T00:36:43.800Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481198","source_sha256":"272e245d09955e938db9a54a6d3af908dbd3c751b9b083767c5383db6f9d7304"}}