# ASC 505-30: Equity — Treasury Stock Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/505/30/) 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): 2026-09-10T00:38:00.623Z to 2026-09-10T00:38:31.570Z Record version: sha256:6ba8d43e635fc40ff417842a236e71a380b089ca51eab7b46de6083ca7426248 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30: Equity — Treasury Stock ### Machine-generated study aids ```json { "summary": "ASC 505-30 governs how an entity accounts for repurchases of its own outstanding common stock (treasury stock) and the later constructive or actual retirement or resale of those shares. The core rule is that treasury stock transactions are capital transactions: no gain or loss may be recognized in income or charged directly to retained earnings as profit, and differences between repurchase and resale/par amounts are allocated among additional paid-in capital and retained earnings. When shares are bought at a price differing from open-market price (e.g., from a specific shareholder), only the fair value of the shares is treasury stock cost and the excess is allocated to the other rights or privileges obtained and accounted for by their substance.", "key_points": [ "Repurchase and retirement or resale of an entity's own common stock relates to the capital of the corporation and does not give rise to corporate profits or losses, and shall not be reflected in retained earnings directly or through the income statement (505-30-25-7 through 25-9).", "If a repurchase includes stated or unstated rights or privileges (e.g., standstill or abandoned acquisition plans), only the fair value of the shares at the date the major terms are reached is recorded as treasury stock cost, with the excess attributed to the other elements per their substance; if no other consideration is identifiable, the entire price is treasury stock cost (505-30-30-3, 505-30-30-4).", "Payments attributed to a standstill agreement or an agreement not to purchase additional shares are expensed as incurred because they do not create assets (505-30-25-4).", "An accelerated share repurchase program is accounted for as two separate transactions: a treasury stock purchase recorded on the acquisition date and a forward contract indexed to the entity's own stock under Subtopic 815-40 (505-30-25-6; Example at 505-30-55-1).", "On retirement or constructive retirement, an excess of repurchase price over par or stated value may be allocated between additional paid-in capital (limited to APIC from prior retirements/net treasury gains of the same issue plus a pro rata portion) and retained earnings, or charged entirely to retained earnings; an excess of par or stated value over cost is credited to APIC (505-30-30-8, 505-30-30-9).", "Gains on sales of treasury stock not previously constructively retired are credited to APIC; losses are charged to APIC only to the extent of prior net gains on the same class of stock, otherwise to retained earnings (505-30-30-10).", "Shares acquired for purposes other than retirement, or with undecided disposition, may be shown as a deduction from total capital stock, APIC, and retained earnings, or accounted for as retired stock (505-30-45-1); state law requirements at variance with this guidance control (505-30-25-2), and law-based restrictions on retained earnings must be disclosed (505-30-50-2)." ], "categories": [ "Debt and equity", "Presentation", "Initial measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exam favorite: a company can never report a gain or loss in income from buying or selling its own shares — everything stays in equity. The classic trap is a greenmail/standstill repurchase above market: only fair value of the shares is treasury stock, and the premium paid for the shareholder's promise is expensed, not capitalized.", "related_topics": [ "815-40", "260", "220-20", "505-10", "480" ], "key_concepts": [ "treasury stock", "constructive retirement", "additional paid-in capital", "accelerated share repurchase program", "standstill agreement", "cost of treasury shares", "capital transaction", "allocation of repurchase price" ] } ``` Source downloaded (UTC): 2026-09-10T00:38:00.623Z to 2026-09-10T00:38:00.623Z Record version: sha256:7f15aeb83654e7928c0a8f1417d8690720071dae12666b9746e7a3d4f1e16d05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/30/#00-status) SEC content: no ##### [505-30-00-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:00.623Z to 2026-09-10T00:38:00.623Z Record version: sha256:5668b9e1c250ac40ec890fd04cea1acf4343887964f7fa938ff103d711567012 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
505-30-15-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-30-30-8AmendedAccounting Standards Update No. 2025-1212/17/2025
505-30-55-3AmendedAccounting Standards Update No. 2012-0410/01/2012
505-30-60-1AmendedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-10T00:38:04.417Z to 2026-09-10T00:38:04.417Z Record version: sha256:feefe0eaf407dda481d5946f9685f63bbb588921233896e64474348ea70f9183 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/30/#05-overview-and-background) SEC content: no ##### [505-30-05-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:04.417Z to 2026-09-10T00:38:04.417Z Record version: sha256:e0585c993fe6d42584620a30099981adf2ae33f8561b08d1d2cb4d46fc95d322 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and reporting for an entity's repurchase of its own outstanding common stock as well as the subsequent constructive or actual retirement of those shares. ##### [505-30-05-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:04.417Z to 2026-09-10T00:38:04.417Z Record version: sha256:5b4b89334c06421b744bc852453a10a70d853d4a7177215e979aca3605186538 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities may repurchase their own outstanding common stock for a variety of different purposes. Repurchased common stock is often referred to as treasury stock or treasury shares. ##### [505-30-05-3](https://asc.understandingaccounting.org/asc/505/30/#505-30-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:04.417Z to 2026-09-10T00:38:04.417Z Record version: sha256:d698b3cde9d0692ffeb6e31deefd20a93ff4830ef330c7b6b72aa8ad593ac88e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When entities repurchase their own common stock, laws applicable to those entities may affect the treatment and accounting for repurchased shares of stock. Entities sometimes pay more or less for the repurchased shares than either their [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.") or their original issue price. Source downloaded (UTC): 2026-09-10T00:38:06.235Z to 2026-09-10T00:38:06.235Z Record version: sha256:a1b2c22f1faad297372678f38d68d6c45a57f66840bc1f3aacbca15ac83f2ba6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/30/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [505-30-15-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:06.235Z to 2026-09-10T00:38:06.235Z Record version: sha256:d56d657381f9d0c239a8d9f4d006652d11f17a91da4c75aaff94a12028c16aa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities, unless more specific guidance is provided in other Topics. #### Transactions ##### [505-30-15-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:06.235Z to 2026-09-10T00:38:06.235Z Record version: sha256:465d695761f8b7fa05506d3fac7a13c18da8d283074aebdd781e2ba258a52759 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all transactions involving the repurchase of an entity's own outstanding common stock as well as the subsequent constructive or actual retirement of those shares, unless more specific guidance for those transactions is provided in other Topics. Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:a5663a84b1ca5579f27b447e8d2708624bf62f4750d5038031422e0ef3bc1510 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/30/#25-recognition) SEC content: no ##### [505-30-25-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:6ab71d2a3b18dcb84340d9775440d7d408c416283abdd6e23f71447187bb3883 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section addresses the accounting requirements for the differences in amounts that result in either of the following situations: 1. a An entity repurchases its own outstanding common stock for an amount that differs from the price obtainable in open market transactions. 2. b An entity subsequently resells previously repurchased common stock for an amount that differs from the repurchase amount paid. This Section also identifies a program to acquire treasury shares, often described as an accelerated share repurchase program, as two separate transactions. ##### [505-30-25-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:616292ff8f7edae55d0d2fde04d28e8673074fdc4a7f38bda6ea05b95ba7b0f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Laws of some states govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefor. If such requirements are at variance with the requirements of paragraphs [505-30-25-7](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-7) and [505-30-30-6 through 30-10](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-6) , the accounting shall conform to the applicable law. #### Requirement to Allocate Repurchase Amount ##### [505-30-25-3](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:2e6e5122059cbce998d18972886576f0582d1cb733cc6e2afe0fa2af7e045d9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The facts and circumstances associated with a share repurchase may suggest that the total payment relates to other than the shares repurchased. An entity offering to repurchase shares only from a specific shareholder (or group of shareholders) suggests that the repurchase may involve more than the purchase of treasury shares. Also, if an entity repurchases shares at a price that is different from the price obtainable in transactions in the open market or transactions in which the identity of the selling shareholder is not important, some portion of the amount being paid presumably represents a payment for stated or unstated rights or privileges that shall be given separate accounting recognition. See paragraph [505-30-30-3](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-3) for the measurement requirements associated with the different elements identified within such a transaction. ##### [505-30-25-4](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:61240f6be04b804d95472c4eaf7bd3a78ff0974426d8761961b85a2ac1dfb1df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payments by an entity to a shareholder or former shareholder attributed, for example, to a standstill agreement, or any agreement in which a shareholder or former shareholder agrees not to purchase additional shares, shall be expensed as incurred. Such payments do not give rise to assets of the entity. #### Accelerated Share Repurchase Programs ##### [505-30-25-5](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:5809f1a3058ae2205f8c13886cd40f8d5f34b0bb4873570775b540935cc71dbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An accelerated share repurchase program is a combination of transactions that permits an entity to repurchase a targeted number of shares immediately with the final repurchase price of those shares determined by an average market price over a fixed period of time. An accelerated share repurchase program is intended to combine the immediate share retirement benefits of a tender offer with the market impact and pricing benefits of a disciplined daily open market stock repurchase program. ##### [505-30-25-6](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:fd7072e313f53eee8b8b734fa3f40513183e92d6f3e0e3655adccca2bea15909 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall account for such an accelerated share repurchase program as the following two separate transactions: 1. a As shares of common stock acquired in a treasury stock transaction recorded on the acquisition date 2. b As a forward contract indexed to its own common stock. Subtopic 815-40 provides guidance on the accounting for contracts that are indexed to an entity's own common stock. Example 1 (see paragraph [505-30-55-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-55-1)) provides an illustration of an accelerated share repurchase program that is addressed by this guidance. #### Subsequent Resale of Shares Repurchased ##### [505-30-25-7](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:6320dc1a98632647634eff9d9eb08273af82bb3d5cc90f00cc89b112f169558f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After an entity's repurchase of its own outstanding common stock, sometimes it may either retire the repurchased shares and issue additional common shares, or, as an alternative, resell the repurchased shares. In either case, the price received may differ from the amount paid to repurchase the shares. While the net asset value of the shares of common stock outstanding in the hands of the public may be increased or decreased by such repurchase and retirement, such transactions relate to the capital of the corporation and do not give rise to corporate profits or losses. There is no essential difference between the following: 1. a The repurchase and retirement of a corporation's own common stock and the subsequent issue of common shares 2. b The repurchase and resale of its own common stock. ##### [505-30-25-8](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:63f2c441b0f1bbb3936a54d88d7642347431800b021ddb3771b66ad127a6a7fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even though there may be cases where the transactions involved are so inconsequential as to be immaterial, as a broad general principle, such transactions shall not be reflected in retained earnings (either directly or through inclusion in the income statement). The qualification shall not be applied to any transaction that, although in itself inconsiderable in amount, is a part of a series of transactions that in the aggregate are of substantial importance. ##### [505-30-25-9](https://asc.understandingaccounting.org/asc/505/30/#505-30-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:11.824Z to 2026-09-10T00:38:11.824Z Record version: sha256:88e64dec73d37902f22f54a2cc3a040f4cef1d4f354cc55d7c34df284a96782a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The difference between the repurchase and resale prices of a corporation's own common stock shall be reflected as part of the capital of a corporation and allocated to the different components within stockholder equity as required by paragraphs [505-30-30-5 through 30-10](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-5) . Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:d1ef64e5993db5ed48297726beea9355800a9556926592a85a7912f15e7af858 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/505/30/#30-initial-measurement) SEC content: no ##### [505-30-30-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:918843186a373d774d95f8d06373ebecaff6071b9f5c46b5457ca4a91d49eaa9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance on measuring amounts that arise from repurchases of an entity's own outstanding common stock. The measurement issues addressed include both of the following: 1. a Determining the allocation of amounts paid to the repurchased shares and other elements of the repurchase transaction 2. b Further allocation of amounts allocated to repurchased shares to various components of stockholder equity upon formal or constructive retirement. #### Allocating Repurchase Price to Other Elements of the Repurchase Transaction ##### [505-30-30-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:4fc51a91fd1e6c09b6afe32d486c1063f428687d926dea3a86cd72fbf8045cab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An allocation of repurchase price to other elements of the repurchase transaction may be required if an entity purchases treasury shares at a stated price significantly in excess of the current market price of the shares. An agreement to repurchase shares from a shareholder may also involve the receipt or payment of consideration in exchange for stated or unstated rights or privileges that shall be identified to properly allocate the repurchase price. ##### [505-30-30-3](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:23c671ae63bb5b3e28ae7a25cc1e789a43821cad98618f9137360f54f6b654ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, the selling shareholder may agree to abandon certain acquisition plans, forego other planned transactions, settle litigation, settle employment contracts, or restrict voluntarily the ability to purchase shares of the entity or its affiliates within a stated time period. If the purchase of treasury shares includes the receipt of stated or unstated rights, privileges, or agreements in addition to the capital stock, only the amount representing 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 the treasury shares at the date the major terms of the agreement to purchase the shares are reached shall be accounted for as the cost of the shares acquired. The price paid in excess of the amount accounted for as the cost of treasury shares shall be attributed to the other elements of the transaction and accounted for according to their substance. If the fair value of those other elements of the transaction is more clearly evident, for example, because an entity's shares are not publicly traded, that amount shall be assigned to those elements and the difference recorded as the cost of treasury shares. If no stated or unstated consideration in addition to the capital stock can be identified, the entire purchase price shall be accounted for as the cost of treasury shares. ##### [505-30-30-4](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:cc71ffceb3da7f774ba19a5f7bc904a0e9db179cfd6eeef7f640dff28ad3e53d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transactions do arise, however, in which a reacquisition of an entity's stock may take place at prices different from routine transactions in the open market. For example, to obtain the desired number of shares in a tender offer to all or most shareholders, the offer may need to be at a price in excess of the current market price. In addition, a block of shares representing a controlling interest will generally trade at a price in excess of market, and a large block of shares may trade at a price above or below the current market price depending on whether the buyer or seller initiates the transaction. An entity's reacquisition of its shares in those circumstances is solely a treasury stock transaction properly accounted for at the purchase price of the treasury shares. Therefore, in the absence of the receipt of stated or unstated consideration in addition to the capital stock, the entire purchase price shall be accounted for as the cost of treasury shares. #### Allocating the Cost of Treasury Shares to Components of Shareholder Equity Upon Formal or Constructive Retirement ##### [505-30-30-5](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:5fc54447b3f77716224a9ceb5e47791c9466d2d9625cded5cdab822676afa0be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that repurchases its own outstanding common stock may be required under paragraph [505-30-30-3](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-3) to allocate a portion of the repurchase price to other elements of the transaction. ##### [505-30-30-6](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:7e01f7c55bb1d555df626f9537807664964ae27a71b084deeab497853ab583ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Once the cost of the treasury shares is determined under the requirements of this Section, and if a corporation's stock is acquired for purposes other than retirement (formal or constructive), or if ultimate disposition has not yet been decided, paragraph [505-30-45-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-45-1) permits the cost of acquired stock to either be shown separately as a deduction from the total of capital stock, additional paid-in capital, and retained earnings, or be accorded the following accounting treatment appropriate for retired stock. ##### [505-30-30-7](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:4a66d4aa08333102282f0598890a3db2bd1c2a1dfa353d1ebb803e979bfe90d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The difference between the cost of the treasury shares and the stated value of a corporation's common stock repurchased and retired, or repurchased for constructive retirement, shall be reflected in capital. ##### [505-30-30-8](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-8) Pending content: yes Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:09429a91adff7bb3f67f07048a2ca9e1ac808d0fe6bccced61cdfb45a48f5c2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a corporation's stock is retired, or repurchased for constructive retirement (with or without an intention to retire the stock formally in accordance with applicable laws), _an excess of repurchase price over par or stated value_ may be allocated between additional paid-in capital and retained earnings. Alternatively, the excess may be charged entirely to retained earnings in recognition of the fact that a corporation can always capitalize or allocate retained earnings for such purposes. If a portion of the excess is allocated to additional paid-in capital, it shall be limited to the sum of both of the following: 1. a All additional paid-in capital arising from previous retirements and net gains on sales of treasury stock of the same issue 2. b The pro rata portion of additional paid-in capital, voluntary transfers of retained earnings, capitalization of stock dividends, and so forth, on the same issue. For this purpose, any remaining additional paid-in capital applicable to issues fully retired (formal or constructive) is deemed to be applicable pro rata to shares of common stock. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)When a corporation's stock is retired, or repurchased for constructive retirement (with or without an intention to retire the stock formally in accordance with applicable laws), _an excess of repurchase price over par or stated value_ may be: 1. a Allocated between additional paid-in capital and retained earnings. If a portion of the excess is allocated to additional paid-in capital, it shall be limited to the sum of both of the following: 1. 1 All additional paid-in capital arising from previous retirements and net gains on sales of treasury stock of the same issue 2. 2 The pro rata portion of additional paid-in capital, voluntary transfers of retained earnings, capitalization of stock dividends, and so forth, on the same issue. For this purpose, any remaining additional paid-in capital applicable to issues fully retired (formal or constructive) is deemed to be applicable pro rata to shares of common stock. 2. b Reflected entirely to retained earnings in recognition of the fact that a corporation can always capitalize or allocate retained earnings for such purposes. 3. c Reflected entirely as a deduction from additional paid-in capital as long as additional paid-in capital does not become negative. ##### [505-30-30-9](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:d89fc5475c4633bdc5d96666388c2459f7c62cdc6d4172bab15c27cff2822408 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a corporation's stock is retired, or repurchased for constructive retirement (with or without an intention to retire the stock formally in accordance with applicable laws), _an excess of par or stated value over the cost of treasury shares_ shall be credited to additional paid-in capital. ##### [505-30-30-10](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:15.295Z to 2026-09-10T00:38:15.295Z Record version: sha256:a852e106c97bbd3f166d3c73e834556fd8fc0e6fdc06a5ee1aa504a273f1e13c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gains on sales of treasury stock not previously accounted for as constructively retired shall be credited to additional paid-in capital; losses may be charged to additional paid-in capital to the extent that previous net gains from sales or retirements of the same class of stock are included therein, otherwise to retained earnings. Source downloaded (UTC): 2026-09-10T00:38:18.042Z to 2026-09-10T00:38:18.042Z Record version: sha256:726ab366719486431a3ec2e1288f429ff8a32741199b6f8efa65fd3c8a2c14f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/505/30/#45-other-presentation-matters) SEC content: no ##### [505-30-45-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:18.042Z to 2026-09-10T00:38:18.042Z Record version: sha256:07b9fe996a1aa3c612ad55f4178ed717338a6969b50271495bb48657532b7036 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a corporation's stock is acquired for purposes other than retirement (formal or constructive), or if ultimate disposition has not yet been decided, the cost of acquired stock may be shown separately as a deduction from the total of capital stock, additional paid-in capital, and retained earnings, or may be accorded the accounting treatment appropriate for retired stock specified in paragraphs [505-30-30-7 through 30-10](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-7) . Source downloaded (UTC): 2026-09-10T00:38:21.575Z to 2026-09-10T00:38:21.575Z Record version: sha256:e59b2aa0ff835a915c0fba5dd95341eb229ca9567263f0ad071cddb9afb8d9ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/30/#50-disclosure) SEC content: no ##### [505-30-50-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:21.575Z to 2026-09-10T00:38:21.575Z Record version: sha256:607095f47e4c5a41daa3978c42c4c2bc9f7df85886194b8c156d51e9cdc87f9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section establishes incremental disclosure requirements that apply to specific circumstances in which an entity repurchases its own outstanding common stock. #### Disclosures Relating to State Laws ##### [505-30-50-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:21.575Z to 2026-09-10T00:38:21.575Z Record version: sha256:97c4b02dbaa58c04a43102856914b65a857b3dc50f011369aacbb414655c8895 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. State laws may effect an entity's repurchase of its own outstanding common stock. If state laws relating to an entity's repurchase of its own outstanding common stock restrict the availability of retained earnings for payment of dividends or have other effects of a significant nature, those facts shall be disclosed. #### Disclosures Relating to Allocation of Repurchase Price ##### [505-30-50-3](https://asc.understandingaccounting.org/asc/505/30/#505-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:21.575Z to 2026-09-10T00:38:21.575Z Record version: sha256:c674e0325c828757d6dcddba651efd6f9dc16e52b98caf7ab3ee3dce5cdd39cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A repurchase of shares at a price significantly in excess of the current market price creates a presumption that the repurchase price includes amounts attributable to items other than the shares repurchased. A repurchase of shares at a price significantly in excess of the current market price may require an entity to allocate amounts to other elements of the transaction under the requirements of paragraph [505-30-30-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-30-2). ##### [505-30-50-4](https://asc.understandingaccounting.org/asc/505/30/#505-30-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:21.575Z to 2026-09-10T00:38:21.575Z Record version: sha256:9a24b3ab51011a5943afc3842ee02c1b4f524ff761849e968ab4d1864b0728a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The allocation of amounts paid to the treasury shares and other elements of the transaction requires significant judgment and consideration of many factors that can significantly affect amounts recognized in the financial statements. Disclosure of the allocation of amounts and the accounting treatment for such amounts is necessary to enable the user of the financial statements to understand the nature of significant transactions that may affect, in part, the capital of the entity. The allocation of amounts paid and the accounting treatment for such amounts shall be disclosed. 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. Source downloaded (UTC): 2026-09-10T00:38:27.974Z to 2026-09-10T00:38:27.974Z Record version: sha256:d66caa0a6d607045c3d5160881adb105f9fbc22fb19d103a706d51779db25e11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-30-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/505/30/#60-relationships) SEC content: no #### Income Statement ##### [505-30-60-1](https://asc.understandingaccounting.org/asc/505/30/#505-30-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:27.974Z to 2026-09-10T00:38:27.974Z Record version: sha256:551c36e062865fb2fa29b244153aa7de27be5992908a2f39aa2cf2a4702ccb19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the income statement classification requirements applicable to the costs incurred by an entity to defend itself from a takeover attempt or the cost attributed to a standstill agreement, see Subtopic 220-20. #### Earnings Per Share ##### [505-30-60-2](https://asc.understandingaccounting.org/asc/505/30/#505-30-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:27.974Z to 2026-09-10T00:38:27.974Z Record version: sha256:19d6304be2df64d001ba2e082df061dc72b84aed95412aa97fb4a437890c08fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the determination of the effect of a treasury stock transaction and the effect of a forward contract that may be settled in stock or cash on the computation of earnings per share (EPS), see Topic 260.