{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/505/10/#45-other-presentation-matters","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":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"505-10-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_FC3E46D6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Section provides guidance related to whether an entity shall report a note receivable arising from the issuance of equity interests either as a reduction of shareholders' equity or as an asset. Guidance is also provided related to appropriations of retained earnings. </span></span></div></div>","snippet":"This Section provides guidance related to whether an entity shall report a note receivable arising from the issuance of equity interests either as a reduction of shareholders' equity or as an asset. Guidance is also prov…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88f03fd1aa33099cfed0875680ec7d6967f4c77ccb64a99f0d0c2c81a06bdc5c","downloaded_from":"2026-09-10T00:36:51.979Z","last_downloaded_at":"2026-09-10T00:36:51.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481142","source_sha256":"2ac473f42a3c73d51650cadae157d8bd508f75da694347b5d2f86d39565528af"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b410c87eb9952de12b64ed278ec7e787987509ae471a5e7f71410a5e54fe507a","downloaded_from":"2026-09-10T00:36:51.979Z","last_downloaded_at":"2026-09-10T00:36:51.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481142","source_sha256":"2ac473f42a3c73d51650cadae157d8bd508f75da694347b5d2f86d39565528af"}},{"block":null,"heading":"Receivables for Issuance of Equity","paragraphs":[{"citation":"505-10-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_FC3E48C9-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity may receive a note, rather than cash, as a contribution to its equity. </span></span><span class=\"sfragment\" id=\"sfr_FC3E4A6F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The transaction may be a sale of capital stock or a contribution to paid-in capital. </span></span><span class=\"sfragment\" id=\"sfr_FC3E4BF6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Reporting the note as an asset is generally not appropriate, except in very limited circumstances in which there is substantial evidence of ability and intent to pay within a reasonably short period of time, </span></span><span class=\"sfragment\" id=\"sfr_FC3E4D59-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">for example, as discussed for public entities in paragraph <a href=\"/asc/210/10/#210-10-S99-1\" class=\"xref\">210-10-S99-1</a> (paragraphs 27 through 29), which requires a deduction of the receivable from equity. </span></span><span class=\"sfragment\" id=\"sfr_FC3E4EDE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, such notes may be recorded as an asset if collected in cash before the financial statements are issued or are available to be issued (as discussed in Section <a altsource=\"GUID-44A13ED8-C2BD-4E8D-BBAA-5FE50B1FFE63.ditamap\" class=\"ditamap\">855-10-25</a>). </span></span></div></div>","snippet":"An entity may receive a note, rather than cash, as a contribution to its equity. The transaction may be a sale of capital stock or a contribution to paid-in capital. Reporting the note as an asset is generally not approp…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19793561b96ad69ba226c34c1e001f927d2f974499f430c2c652764baad7279e","downloaded_from":"2026-09-10T00:36:51.979Z","last_downloaded_at":"2026-09-10T00:36:51.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481142","source_sha256":"2ac473f42a3c73d51650cadae157d8bd508f75da694347b5d2f86d39565528af"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3067ad94612d70765c73714d5e400003415d9c90f29ba775ceb9e1e8d6896821","downloaded_from":"2026-09-10T00:36:51.979Z","last_downloaded_at":"2026-09-10T00:36:51.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481142","source_sha256":"2ac473f42a3c73d51650cadae157d8bd508f75da694347b5d2f86d39565528af"}},{"block":null,"heading":"Appropriations of Retained Earnings","paragraphs":[{"citation":"505-10-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_FC3E5071-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Appropriation of retained earnings is permitted, provided that it is shown within the shareholders' equity section of the balance sheet and is clearly identified as an appropriation of retained earnings. </span></span></div></div>","snippet":"Appropriation of retained earnings is permitted, provided that it is shown within the shareholders' equity section of the balance sheet and is clearly identified as an appropriation of retained earnings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c35037d8e089126ebed94ef7d842f4eda419a5c35f27bea70c3ebf4e89321aa","downloaded_from":"2026-09-10T00:36:51.979Z","last_downloaded_at":"2026-09-10T00:36:51.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481142","source_sha256":"2ac473f42a3c73d51650cadae157d8bd508f75da694347b5d2f86d39565528af"}},{"citation":"505-10-45-4","para":"45-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_FC3E51EF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Costs or losses shall not be charged to an appropriation of retained earnings, and no part of the appropriation shall be transferred to income. </span></span></div></div>","snippet":"Costs or losses shall not be charged to an appropriation of retained earnings, and no part of the appropriation shall be transferred to 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