# ASC 505-30-55: Equity — Treasury Stock — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/505/30/#55-implementation-guidance-and-illustrations) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:1e4fba3faf0664396188c7b1ce1007918489887ba2047f6de9a1047b1a2195fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/505/30/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [505-30-55-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:3be2180be600cb85b8e1f8625d26c9a9b8b71df6be9feb9914b643383b88c4e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [505-30-25-5](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-5) by identifying the two separate transactions, namely a treasury stock purchase and a forward contract, that are present in what is sometimes described as an accelerated share repurchase program. ##### [505-30-55-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:eade8df0dd3ac158f1bf9175557abbc3fcb614739fe9f9425462c4eaa6e40cb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The treasury stock purchase is as follows. ##### [505-30-55-3](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:fd444f380425ce50d921af3f9924fb08068f60b29488c41c2fcdc5c09daee333 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment Banker, an unrelated third party, borrows 1,000,000 shares of Company A common stock from investors, becomes the owner of record of those shares, and sells the shares short to Company A on July 1, 1999, at the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of $50 per share. Company A pays $50,000,000 in cash to Investment Banker on July 1, 1999, to settle the purchase transaction. The shares are held in treasury. Company A has legal title to the shares, and no other party has the right to vote those shares. ##### [505-30-55-4](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:2007b91615e217cb1f3e69c41cf99985492ccffba5eb91c2bffadef147d89d00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The forward contract is as follows. ##### [505-30-55-5](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:cc902f3fe105c026c04a6ed05f33f06f83a10a473dfa3808ba54261ffff6962a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Company A simultaneously enters into a forward contract with Investment Banker on 1,000,000 shares of its own common stock. On the October 1, 1999, settlement date, if the volume-weighted average daily market price of Company A's common stock during the contract period (July 1, 1999, to October 1, 1999) exceeds the $50 initial purchase price (net of a commission fee to Investment Banker), Company A will deliver to Investment Banker cash or shares of common stock (at Company A's option) equal to the price difference multiplied by 1,000,000. If the volume-weighted average daily market price of Company A's common stock during the contract period is less than the $50 initial purchase price (net of a commission fee to Investment Banker), Investment Banker will deliver to Company A cash equal to the price difference multiplied by 1,000,000. ##### [505-30-55-6](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:7eb70e8af219b1710d252a04e4153c40cbff45a769f1f49eb1658167224bec09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the guidance in paragraph [505-30-25-5](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-5),an entity would account for this accelerated share repurchase program as two separate transactions: 1. a As shares of common stock acquired in a treasury stock transaction recorded on the July 1, 1999, acquisition date 2. b As a forward contract indexed to its own common stock. ##### [505-30-55-7](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:24.712Z to 2026-09-10T00:38:24.712Z Record version: sha256:8f097564f70a1ecdf4af8131e46002e4caf47d99cef8ff87050bdaa519cd3340 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 13 (paragraph [260-10-55-88](https://asc.understandingaccounting.org/asc/260/10/#260-10-55-88)) for the effect on earnings per share (EPS) for this Example.