{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/505/20/#15-scope-and-scope-exceptions","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":"505-20","subtopic_title":"Stock Dividends and Stock Splits","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Entities","paragraphs":[{"citation":"505-20-15-1","para":"15-1","html":"
The guidance in this Subtopic applies to all entities that are corporations.
","snippet":"The guidance in this Subtopic applies to all entities that are corporations.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de59fb5230fee1ac5aba2fa780dbd8cd2d103d37b91802c3c75e36e22d82e04f","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6be3137c578eaae1f06a8973e3b1d688e475dcebd55ddbc2ea9794ed4dadccc2","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"505-20-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to all stock dividends and stock splits, with specific exceptions noted in paragraphs 505-20-15-3 through 15-3A.
","snippet":"The guidance in this Subtopic applies to all stock dividends and stock splits, with specific exceptions noted in paragraphs 505-20-15-3 through 15-3A.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58158a780d24c03cd9061e625bca93e18d9668580cb2dcfc3fd654eb9b8cabe4","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}},{"citation":"505-20-15-3","para":"15-3","html":"
The guidance in this Subtopic does not apply to the accounting for a distribution or issuance to shareholders of any of the following:
  1. a
    Shares of another corporation held as an investment
  2. b
    Shares of a different class
  3. c
    Rights to subscribe for additional shares
  4. d
    Shares of the same class in cases in which each shareholder is given an election to receive cash or shares.
","snippet":"The guidance in this Subtopic does not apply to the accounting for a distribution or issuance to shareholders of any of the following:\n(a) Shares of another corporation held as an investment\n(b) Shares of a different cla…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:848ed54d070ab70e87f82d2594ea74bee4ff02deccb6881606bc2fe60591eb66","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}},{"citation":"505-20-15-3A","para":"15-3A","html":"
Item (d) in the preceding paragraph includes, but is not limited to, a distribution having both of the following characteristics:
  1. a
    The shareholder has the ability to elect to receive the shareholder's entire distribution in cash or shares of equivalent value.
  2. b
    There is a potential limitation on the total amount of cash that all shareholders can elect to receive in the aggregate.
For guidance on recognition of an entity's commitment to make a distribution described in the preceding paragraph, see paragraph 480-10-25-14. For guidance on computation of diluted EPS of an entity's commitment to make such a distribution, see the guidance in paragraphs
260-10-45-45 through 45-47
.
","snippet":"Item (d) in the preceding paragraph includes, but is not limited to, a distribution having both of the following characteristics:\n(a) The shareholder has the ability to elect to receive the shareholder's entire distribut…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2631039b2b5aac9854a2f3d0efc659ba8d5d40c57cbd4e2e2a64d053ecfee311","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7344902e1e485111fd3e87ff9bc05a3e0df1eda80e75fd844f8fbad3365011a4","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:79a93df328d67082d644c12a5c2eb76c298c6d2675cf59934819c31e4a279841","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:79a93df328d67082d644c12a5c2eb76c298c6d2675cf59934819c31e4a279841","downloaded_from":"2026-09-10T00:37:36.423Z","last_downloaded_at":"2026-09-10T00:37:36.423Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481438","source_sha256":"7ff2bc631ef7e469325442245c250c329f9cd048e387bd1adf26724dc8ec52e5"}}