{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/505/20/#50-disclosure","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":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"505-20-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">Paragraph <a href=\"/asc/505/20/#505-20-25-2\" class=\"xref\">505-20-25-2</a> identifies a situation in which a <a href=\"/glossary/s/#stock-dividend\" class=\"term\" title=\"An issuance by a corporation of its own common shares to its common shareholders without consideration and under conditions indicating that such action is prompted mainly by a desire to give the recipient shareholders some ostensibly separate evidence of a part of their respective interests in accumulated corporate earnings without distribution of cash or other property that the board of directors deems necessary or desirable to retain in the business. A stock dividend takes nothing from the property of the corporation and adds nothing to the interests of the stockholders; that is, the corporation's property is not diminished and the interests of the stockholders are not increased. The proportional interest of each shareholder remains the same.\"><span>stock dividend</span></a> in form is a <a href=\"/glossary/s/#stock-split\" class=\"term\" title=\"An issuance by a corporation of its own common shares to its common shareholders without consideration and under conditions indicating that such action is prompted mainly by a desire to increase the number of outstanding shares for the purpose of effecting a reduction in their unit market price and, thereby, of obtaining wider distribution and improved marketability of the shares. Sometimes called a stock split-up.\"><span>stock split</span></a> in substance. <span class=\"sfragment\" id=\"sfr_FDDE38DF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In such instances every effort shall be made to avoid the use of the word dividend in related corporate resolutions, notices, and announcements and that, in those cases in which because of legal requirements this cannot be done, the transaction be described, for example, as a stock split effected in the form of a dividend. </span></span></div></div>","snippet":"Paragraph 505-20-25-2 identifies a situation in which a stock dividend in form is a stock split in substance. In such instances every effort shall be made to avoid the use of the word dividend in related corporate resolu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f0e06327fc9e8e5456ca0bffa22427acb58e74a18f0a5e494d441fb7bc33f9dc","downloaded_from":"2026-09-10T00:37:47.525Z","last_downloaded_at":"2026-09-10T00:37:47.525Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481320","source_sha256":"ea8fb9e943373a4bea760170e83df960614e17dab564a716f5764cd9774c20ef"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41320e16dd5514b570eed1b06df76305420042142c7a80e3b70a91af0cd2c5ba","downloaded_from":"2026-09-10T00:37:47.525Z","last_downloaded_at":"2026-09-10T00:37:47.525Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481320","source_sha256":"ea8fb9e943373a4bea760170e83df960614e17dab564a716f5764cd9774c20ef"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ba683226aaa3c3bc3a864dbaeed51243fa434255ab6e4cff6068bc54acc99f1","downloaded_from":"2026-09-10T00:37:47.525Z","last_downloaded_at":"2026-09-10T00:37:47.525Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481320","source_sha256":"ea8fb9e943373a4bea760170e83df960614e17dab564a716f5764cd9774c20ef"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ba683226aaa3c3bc3a864dbaeed51243fa434255ab6e4cff6068bc54acc99f1","downloaded_from":"2026-09-10T00:37:47.525Z","last_downloaded_at":"2026-09-10T00:37:47.525Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481320","source_sha256":"ea8fb9e943373a4bea760170e83df960614e17dab564a716f5764cd9774c20ef"}}