# ASC 505-10-30: Equity — Overall — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/505/10/#30-initial-measurement)

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## ASC 505-10-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/505/10/#30-initial-measurement)

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#### Paid-in-Kind Dividends on Preferred Stock

##### [505-10-30-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-30-1)

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Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:

[505-10-65-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-65-1)Paid-in-kind dividends on [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock.") issued to preferred shareholders shall be initially measured on the basis of the paid-in-kind dividend rate stated in the preferred stock agreement. For example, if the preferred stock agreement specifies that paid-in-kind dividends are calculated by multiplying the paid-in-kind dividend rate by the liquidation value of the preferred stock outstanding, an entity should measure the paid-in-kind dividend at that amount.