# ASC Topic 505: Equity Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/505/) 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): 2026-09-10T00:36:31.592Z to 2026-09-10T00:41:01.868Z Record version: sha256:3c3bb99d4e5aca9d6a2ad8912fe684351b6d8f93e48ecd3e5d9fa1c2c9c4836e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 505 is the residual Equity Topic: it collects the guidance on transactions between an entity and its own shareholders that do not belong in another Topic. The Overall subtopic (505-10) sets the anchoring principle — transactions in an entity's own capital stock (including quasi-reorganizations and treasury stock) never affect net income, additional paid-in capital may not be used to relieve income of charges, and notes received for stock are a deduction from equity — plus extensive disclosures of rights, privileges, redemption requirements, and liquidation preferences. The transaction-specific subtopics apply substance over form: stock dividends versus stock splits in substance (505-20), treasury stock repurchases, retirements, and accelerated share repurchases (505-30), and spinoffs recorded at carrying amount with possible reverse spinoff accounting (505-60). Industry subtopics add disclosure or classification rules for agricultural cooperatives (505-905), insurance entities (505-944), depository institutions (942-505), and investment companies (505-946), while 505-50 is fully superseded — nonemployee share-based payments now live in ASC 718 (and ASC 606 for customer consideration). Source downloaded (UTC): 2026-09-10T00:36:31.592Z to 2026-09-10T00:37:26.444Z Record version: sha256:c98365de8da01e7305bc9b923cbe38e20580d0052c23dbc5d1f30809ce5bc381 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10: Equity — Overall ### Machine-generated study aids ```json { "summary": "ASC 505-10 is the residual \"Overall\" subtopic for equity — it covers equity matters not addressed in the other Equity subtopics (stock dividends/splits, treasury stock, spinoffs) or in other Topics such as 480 and 815. Its core rules are that transactions in an entity's own capital stock (and quasi-reorganization adjustments and transfers to/from appropriated retained earnings) never affect net income, that additional paid-in capital may not be used to relieve income of charges, and that notes received for stock are generally shown as a deduction from equity rather than as an asset. It also imposes extensive disclosures on the rights and privileges of outstanding securities, convertible preferred stock, redemption requirements, and liquidation preferences.", "key_points": [ "Additional paid-in capital, however created, shall not be used to relieve income of current or future charges that would otherwise hit the income statement (505-10-25-1), except in reorganizations under 852-20-25-2.", "Adjustments, charges, or credits from transactions in the entity's own capital stock, transfers to/from appropriated retained earnings, and quasi-reorganization adjustments are excluded from net income under all circumstances (505-10-25-2).", "A note received as a contribution to equity is generally reported as a deduction from shareholders' equity, not as an asset, unless there is substantial evidence of ability and intent to pay quickly or it is collected in cash before issuance (505-10-45-2); appropriated retained earnings must be shown within equity, with no costs or losses charged to it and no part transferred to income (505-10-45-3 through 45-4).", "Changes in the separate accounts comprising shareholders' equity and in the number of shares must be disclosed for at least the most recent annual period and any subsequent interim period (505-10-50-2), and pertinent rights and privileges of each class of security must be explained (505-10-50-3, 50-13).", "Preferred stock with an involuntary liquidation preference considerably in excess of par or stated value must disclose that preference in the aggregate in the equity section of the balance sheet, not per share or only in the notes (505-10-50-4); call/redemption amounts, cumulative dividend arrearages, dividends declared, and five-year redemption requirements are also required (505-10-50-5, 50-11, 50-15).", "Convertible preferred stock is in scope unless 470-20 or 480-10 requires liability classification, and only after the issuer determines under 815-15 whether an embedded conversion feature must be bifurcated as a derivative; Topic 718 awards are excluded (505-10-15-2(d)); if such stock must be redeemed once the conversion feature expires, it is reclassified as a Topic 480 liability at fair value with a corresponding reduction of equity and no gain or loss (505-10-35-1).", "Pending ASU 2026-01 (annual periods beginning after December 15, 2026): paid-in-kind dividends on equity-classified preferred stock are initially measured using the paid-in-kind dividend rate stated in the preferred stock agreement (505-10-30-1; 505-10-65-1)." ], "categories": [ "Debt and equity", "Disclosure", "Presentation", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "The exam favorite here is the bright-line rule that an entity can never recognize gain or loss (or relieve income of charges through APIC) on transactions in its own stock — everything runs through equity. A common misunderstanding is treating a subscription note received for shares as an asset; absent quick collection it must be shown as a contra-equity deduction.", "related_topics": [ "480-10", "470-20", "815-40", "718", "260-10", "852-20" ], "key_concepts": [ "residual interest in net assets", "additional paid-in capital", "appropriated retained earnings", "notes receivable for stock issuance", "convertible preferred stock", "liquidation preference disclosure", "paid-in-kind dividends", "down round feature" ] } ``` Source downloaded (UTC): 2026-09-10T00:36:31.592Z to 2026-09-10T00:36:31.592Z Record version: sha256:9a77719e17bba533fac56f92dfe1b97824b1df8d9dfd0c6e697ccbef664356d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/10/#00-status) SEC content: no ##### [505-10-00-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:31.592Z to 2026-09-10T00:36:31.592Z Record version: sha256:b21aaee8fa486a8c7492de6551d8974192a359c56cb6330801dd1abdfee38db0 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
Contingently Convertible InstrumentsAddedAccounting Standards Update No. 2020-0608/05/2020
Convertible SecurityAddedAccounting Standards Update No. 2020-0608/05/2020
Down Round FeatureAddedAccounting Standards Update No. 2017-1107/13/2017
Equity RestructuringAddedAccounting Standards Update No. 2017-1107/13/2017
Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
Financial InstrumentAddedAccounting Standards Update No. 2017-1107/13/2017
Registration Payment ArrangementAddedAccounting Standards Update No. 2016-1912/14/2016
Security (1st def.)SupersededAccounting Standards Update No. 2020-0608/05/2020
Standard Antidilution ProvisionsAddedAccounting Standards Update No. 2017-1107/13/2017
505-10-05-1AmendedAccounting Standards Update No. 2018-0706/20/2018
505-10-05-3AmendedAccounting Standards Update No. 2020-0608/05/2020
505-10-05-5 through 05-7
AddedAccounting Standards Update No. 2020-0608/05/2020
505-10-15-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-10-15-2AmendedAccounting Standards Update No. 2026-0104/23/2026
505-10-15-2AmendedAccounting Standards Update No. 2020-0608/05/2020
505-10-15-3AddedAccounting Standards Update No. 2026-0104/23/2026
505-10-15-4AddedAccounting Standards Update No. 2026-0104/23/2026
505-10-25-3AmendedAccounting Standards Update No. 2018-0706/20/2018
505-10-30-1AddedAccounting Standards Update No. 2026-0104/23/2026
505-10-35-1AddedAccounting Standards Update No. 2020-0608/05/2020
505-10-45-2AmendedAccounting Standards Update No. 2015-1006/12/2015
505-10-50-3AmendedAccounting Standards Update No. 2017-1107/13/2017
505-10-50-3AAddedAccounting Standards Update No. 2017-1107/13/2017
505-10-50-4AmendedAccounting Standards Update No. 2023-0610/09/2023
505-10-50-6 through 50-10ASupersededAccounting Standards Update No. 2020-0608/05/2020
505-10-50-8AmendedMaintenance Update 2016-11 (PDF)06/27/2016
505-10-50-12 through 50-18
AddedAccounting Standards Update No. 2020-0608/05/2020
505-10-60-1AmendedAccounting Standards Update No. 2011-0506/16/2011
505-10-60-2SupersededAccounting Standards Update No. 2020-0608/05/2020
505-10-60-6AmendedAccounting Standards Update No. 2016-1912/14/2016
505-10-60-7AddedAccounting Standards Update No. 2017-1107/13/2017
505-10-60-8AddedAccounting Standards Update No. 2021-0405/03/2021
505-10-65-1AddedAccounting Standards Update No. 2026-0104/23/2026
Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:2a8616f829f71da43587341d3d3c38f7bb83734d76e760741f52df51606f1244 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/10/#05-overview-and-background) SEC content: no ##### [505-10-05-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:79223b3c1dc28f9e98807d342390e3e001eb014737e8f04c90662d9128419c50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Equity Topic includes the following Subtopics: 1. a Overall 2. b Stock Dividends and Stock Splits 3. c Treasury Stock 4. d [Subparagraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). 5. e Spinoffs and Reverse Spinoffs. ##### [505-10-05-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:f87ecfb67e49af2cc2268bde05f4fce7c6ac72c16634fcb5f4edde7cc4634c11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic addresses financial accounting and reporting for equity-related matters not specifically addressed in the other Subtopics of the Equity Topic or other Topics that also address equity matters. ##### [505-10-05-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:4890b0893f218bf017c2fb233f6e136f3eb3e47711fdbf2bc996233148ddc900 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Equity, sometimes referred to as net assets, is the residual interest in the assets of an entity that remains after deducting its liabilities. The Subtopics of the Equity Topic provide guidance on several specific elements of transactions, accounts and financial instruments that are classified as components of equity as well as overall general guidance related to equity. Issues that relate to whether a specific financial instrument shall be classified as equity or outside of the equity classification are addressed in Topic 480 as well as other Topics (such as Topic 815 on derivatives and hedging) that address these classification matters. ##### [505-10-05-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:043b07139d00e95e4577611928aea6df3879daafe7f55fc656d223ebf38c2290 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other Topics, including industry-specific Topics, also contain guidance related to specific equity matters associated with those Topics. Equity guidance in those Topics is intended to be incremental to the guidance otherwise established in this Topic. #### Convertible Preferred Stock ##### [505-10-05-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:7ac9e404159cdf514fa988ce0251a1157b3bddb498794e6f21ab30875943b39e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities may issue convertible preferred stock that may be convertible into common stock at the lower of a conversion rate fixed at time of issuance and a fixed discount to the market price of the common stock at the date of conversion. ##### [505-10-05-6](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:01cb167d6a58452972d02731df19a4bc24d1731bae79500b0903e8144a47625d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain convertible preferred stock may have a contingently adjustable conversion ratio. Examples of a conversion price that is variable based on future events are the following: 1. a A liquidation or a change in control of an entity 2. b A subsequent round of financing at a price lower than the [convertible security](https://asc.understandingaccounting.org/glossary/c/#convertible-security "A security that is convertible into another security based on a conversion rate. For example, convertible preferred stock that is convertible into common stock on a two-for-one basis (two shares of common for each share of preferred).")'s original conversion price 3. c An initial public offering at a share price lower than an agreed-upon amount. ##### [505-10-05-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:34.119Z to 2026-09-10T00:36:34.119Z Record version: sha256:2f2da9ddd6f456e533e745f04cf9a53a9a666f0e565dbad11d9e08c67aa02f58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain convertible preferred stock may become convertible only upon the occurrence of a future event outside the control of the holder. Source downloaded (UTC): 2026-09-10T00:36:36.763Z to 2026-09-10T00:36:36.763Z Record version: sha256:ee4ff7b3bd137dba35aca0fd5db5e77a40f44676c3573a4e74e7227ac931d097 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/10/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [505-10-15-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:36.763Z to 2026-09-10T00:36:36.763Z Record version: sha256:0472912ab842463a98de293eb0c15dba64f24a418a75db565c0bf7fcdaa1123f 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. #### Instruments ##### [505-10-15-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-15-2) Pending content: yes Source downloaded (UTC): 2026-09-10T00:36:36.763Z to 2026-09-10T00:36:36.763Z Record version: sha256:b67eaf217b59f82905c2c8f9a5542ef5e96d3bb80acf9b0987d1695ced39e4fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all of the following instruments and activities: 1. a Transactions in an entity's own common stock 2. b Receivables related to the issuance of equity interests and the appropriation of retained earnings 3. c [Subparagraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). 4. d Convertible preferred stock, unless the guidance in other Subtopics (such as Subtopic 470-20 on debt with conversion and other options or 480-10 on distinguishing liabilities from equity) requires that the convertible preferred stock be classified as a liability. The relevant guidance in this Subtopic shall be considered after an issuer's determination under Subtopic 815-15 on embedded derivatives of whether an embedded conversion option or other embedded feature in convertible preferred stock should be accounted for separately as a derivative instrument (see paragraph [815-15-55-76B](https://asc.understandingaccounting.org/asc/815/15/#815-15-55-76B)). The guidance in this Subtopic does not apply to convertible preferred stock that is issued as awards to a grantee in exchange for goods or services received (or to be received) that are within the scope of Topic 718 on stock compensation unless the instrument is modified in accordance with and no longer subject to the guidance in that Topic. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [505-10-65-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-65-1)The guidance in this Subtopic applies to all of the following instruments and activities: 1. a Transactions in an entity's own common stock 2. b Receivables related to the issuance of equity interests and the appropriation of retained earnings 3. c [Subparagraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). 4. d Convertible preferred stock, unless the guidance in other Subtopics (such as Subtopic 470-20 on debt with conversion and other options or 480-10 on distinguishing liabilities from equity) requires that the convertible preferred stock be classified as a liability. The relevant guidance in this Subtopic shall be considered after an issuer's determination under Subtopic 815-15 on embedded derivatives of whether an embedded conversion option or other embedded feature in convertible preferred stock should be accounted for separately as a derivative instrument (see paragraph [815-15-55-76B](https://asc.understandingaccounting.org/asc/815/15/#815-15-55-76B)). The guidance in this Subtopic does not apply to convertible preferred stock that is issued as awards to a grantee in exchange for goods or services received (or to be received) that are within the scope of Topic 718 on stock compensation unless the instrument is modified in accordance with and no longer subject to the guidance in that Topic. 5. e Paid-in-kind dividends on [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock.") (see paragraph [505-10-15-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-15-3)). The guidance on paid-in-kind dividends on preferred stock applies to preferred stock classified as equity, including preferred stock that is classified as temporary equity in accordance with SEC Staff Announcement, Classification and Measurement of Redeemable Securities (see paragraph [480-10-S99-3A](https://asc.understandingaccounting.org/asc/480/10/#480-10-S99-3A)). #### Paid-in-Kind Dividends on Preferred Stock ##### [505-10-15-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-15-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:36:36.763Z to 2026-09-10T00:36:36.763Z Record version: sha256:6f7bcbd6e19c87810880f7da537c34acf4307d5372fec21940fb2edc28972be0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [505-10-65-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-65-1)Paid-in-kind dividends are dividends that an issuer satisfies by either: 1. a Delivering to the holder additional preferred stock with the same terms as the original preferred stock 2. b Increasing the value of the original preferred stock in accordance with the preferred stock agreement (for example, by increasing the original preferred stock’s liquidation value). An entity shall apply the guidance in paragraph [505-10-30-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-30-1) on paid-in-kind dividends on preferred stock when the monetary value of the paid-in-kind dividends varies on the basis of the additional preferred stock issued or the increase in the original preferred stock’s liquidation value. ##### [505-10-15-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-15-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:36:36.763Z to 2026-09-10T00:36:36.763Z Record version: sha256:ea93791572c836a908cdb8b55dd4199cd6f4822328da8d9a444e7fcc5287b5aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [505-10-65-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-65-1)The guidance in paragraph [505-10-30-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-30-1) shall not apply if: 1. a The issuer satisfies the dividend obligation by issuing a variable number of shares of the same preferred stock instrument that has a fixed monetary value. For example, a dividend obligation of $1,000 satisfied by delivering a variable number of shares with a current fair value of $1,000 to preferred shareholders would not be within the scope of the guidance in paragraph [505-10-15-2(e)](https://asc.understandingaccounting.org/asc/505/10/#505-10-15-2). 2. b The transaction represents a deemed dividend (for example, certain redemptions of preferred stock). Source downloaded (UTC): 2026-09-10T00:36:43.800Z to 2026-09-10T00:36:43.800Z Record version: sha256:56c55b2329f7407efb1153d24456667e9d78d00af287e92b026c780bf99380aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/10/#25-recognition) SEC content: no ##### [505-10-25-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:43.800Z to 2026-09-10T00:36:43.800Z Record version: sha256:e371257e4b0fd3f677abf685c4aaf68da5fd65647639338682daabcaaef5cabb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Additional paid-in capital, however created, shall not be used to relieve income of the current or future years of charges that would otherwise be made to the income statement. See paragraph [852-20-25-2](https://asc.understandingaccounting.org/asc/852/20/#852-20-25-2) for an exception to this guidance related to reorganizations. ##### [505-10-25-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:43.800Z to 2026-09-10T00:36:43.800Z Record version: sha256:1ffc380493a4ee0a404315a99962d88e69faf7c954907dabb422620a3dfbe30a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following shall be excluded from the determination of net income or the results of operations under all circumstances: 1. a Adjustments or charges or credits resulting from transactions in the entity's own capital stock 2. b Transfers to and from accounts properly designated as appropriated retained earnings (see paragraph [505-10-45-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-45-3) for what is meant by properly designated as appropriated retained earnings) 3. c Adjustments made pursuant to a quasi-reorganization (see Subtopic 852-20 for information concerning quasi-reorganizations). ##### [505-10-25-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:43.800Z to 2026-09-10T00:36:43.800Z Record version: sha256:1edb4999d4a206d43659cb4c4caedb09f307d532aee29c4be315f6c26942a5be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [323-10-25-3 through 25-5](https://asc.understandingaccounting.org/asc/323/10/#323-10-25-3) provide guidance on accounting for share-based compensation granted by an investor to employees or nonemployees of an equity method investee that provide goods or services to the investee that are used or consumed in the investee's operations. An investee shall recognize the costs of the share-based payment incurred by the investor on its behalf, and a corresponding capital contribution, as the costs are incurred on its behalf (that is, in the same period(s) as if the investor had paid cash to employees and nonemployees of the investee following the guidance in Topic 718 on stock compensation. Source downloaded (UTC): 2026-09-10T00:36:46.312Z to 2026-09-10T00:36:46.312Z Record version: sha256:ccc7bcec3f974d7865e0adc3f7586575a4c7996a9ba7214e85302d9d3a54406c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/505/10/#30-initial-measurement) SEC content: no #### Paid-in-Kind Dividends on Preferred Stock ##### [505-10-30-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-30-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:36:46.312Z to 2026-09-10T00:36:46.312Z Record version: sha256:56c67d1304b0d4154c2554332dc4996c402bec81f588694c35ee38b78a109769 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [505-10-65-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-65-1)Paid-in-kind dividends on [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock.") issued to preferred shareholders shall be initially measured on the basis of the paid-in-kind dividend rate stated in the preferred stock agreement. For example, if the preferred stock agreement specifies that paid-in-kind dividends are calculated by multiplying the paid-in-kind dividend rate by the liquidation value of the preferred stock outstanding, an entity should measure the paid-in-kind dividend at that amount. Source downloaded (UTC): 2026-09-10T00:36:48.162Z to 2026-09-10T00:36:48.162Z Record version: sha256:617bbc72b624b8f2a8b915edfba5af6df1ecc4fa66fbe886ea7072820f3f4e6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/505/10/#35-subsequent-measurement) SEC content: no ##### [505-10-35-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:48.162Z to 2026-09-10T00:36:48.162Z Record version: sha256:a49d0f26c1373b5a25ee90562d3bb00b549880e7fe0a2e0f93cfd7e26004343e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If convertible preferred stock is required to be redeemed once the conversion feature expires, the financial instrument becomes a liability under the guidance in Topic 480 upon expiration of the conversion feature and paragraph [480-10-30-2](https://asc.understandingaccounting.org/asc/480/10/#480-10-30-2) requires the issuer to reclassify an instrument that becomes mandatorily redeemable as a liability, measured initially at fair value with a corresponding reduction of equity (no gain or loss is to be recognized). That may entail an adjustment to paid-in capital if, upon reclassification, the fair value of the liability differs from the carrying amount of the previously convertible preferred stock. That financial instrument would be subsequently measured under the provisions of Topic 480. Source downloaded (UTC): 2026-09-10T00:36:51.979Z to 2026-09-10T00:36:51.979Z Record version: sha256:c2011d50ae00832bedc8f95224913da425db328365c943d1439914e1fb7f74c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/505/10/#45-other-presentation-matters) SEC content: no ##### [505-10-45-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:51.979Z to 2026-09-10T00:36:51.979Z Record version: sha256:88f03fd1aa33099cfed0875680ec7d6967f4c77ccb64a99f0d0c2c81a06bdc5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Receivables for Issuance of Equity ##### [505-10-45-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:51.979Z to 2026-09-10T00:36:51.979Z Record version: sha256:19793561b96ad69ba226c34c1e001f927d2f974499f430c2c652764baad7279e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 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, for example, as discussed for public entities in paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1) (paragraphs 27 through 29), which requires a deduction of the receivable from equity. 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 855-10-25). #### Appropriations of Retained Earnings ##### [505-10-45-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:51.979Z to 2026-09-10T00:36:51.979Z Record version: sha256:1c35037d8e089126ebed94ef7d842f4eda419a5c35f27bea70c3ebf4e89321aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [505-10-45-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:51.979Z to 2026-09-10T00:36:51.979Z Record version: sha256:a35c7007604b4c260d05263ad3976d7946b3fc9594cb4e60d5667c2b55e66d11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs or losses shall not be charged to an appropriation of retained earnings, and no part of the appropriation shall be transferred to income. Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:6591ef421d4ab048413e543820a35410fe860f7d1868a5d8daab964511b55b3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/10/#50-disclosure) SEC content: no ##### [505-10-50-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:1d489c6b583cc3f2e54fbf8c5527aed6008c71c8e103b0fc406897cff3a3a681 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance on the disclosure requirements associated with the separate accounts comprising shareholders' equity and the specific outstanding securities issued by an entity. ##### [505-10-50-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:c332aff5d32149728382eac4adf05575c56b4928a63c0eb75e26b6e785fecaff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If both financial position and results of operations are presented, disclosure of changes in the separate accounts comprising shareholders' equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative. Disclosure of such changes may take the form of separate statements or may be made in the basic financial statements or notes thereto. ##### [505-10-50-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:c4039652b03449c2981a17942de4e1f3b06e9349265b0d070064e1d6b0ae7a2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall explain, in summary form within its financial statements, the pertinent rights and privileges of the various securities outstanding. Examples of information that shall be disclosed are dividend and liquidation preferences, [participation rights](https://asc.understandingaccounting.org/glossary/p/#participation-rights "Contractual rights of security holders to receive dividends or returns from the security issuer's profits, cash flows, or returns on investments."), call prices and dates, conversion or exercise prices or rates and pertinent dates, sinking-fund requirements, unusual voting rights, and significant terms of contracts to issue additional shares or terms that may change conversion or exercise prices (excluding [standard antidilution provisions](https://asc.understandingaccounting.org/glossary/s/#standard-antidilution-provisions "Standard antidilution provisions are those that result in adjustments to the conversion ratio in the event of an equity restructuring transaction that are designed to maintain the value of the conversion option.")). An entity shall disclose within its financial statements the number of shares issued upon conversion, exercise, or satisfaction of required conditions during at least the most recent annual fiscal period and any subsequent interim period presented. An entity also shall disclose within the financial statements actual changes to conversion or exercise prices that occur during the reporting period (excluding changes due to standard antidilution provisions). ##### [505-10-50-3A](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:fdcd3bc574a8e3810dc4fb0af6099ed65a5e39d2545a5b92277073bb5b8cfcb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a [financial instrument](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.") with a [down round feature](https://asc.understandingaccounting.org/glossary/d/#down-round-feature "A feature in a financial instrument that reduces the strike price of an issued financial instrument if the issuer sells shares of its stock for an amount less than the currently stated strike price of the issued financial instrument or issues an equity-linked financial instrument with a strike price below the currently stated strike price of the issued financial instrument. A down round feature may reduce the strike price of a financial instrument to the current issuance price, or the reduction may be limited by a floor or on the basis of a formula that results in a price that is at a discount to the original exercise price but above the new issuance price of the shares, or may reduce the strike price to below the current issuance price. A standard antidilution provision is not considered a down round feature.") that has been triggered during the reporting period and for which an entity has recognized the effect in accordance with paragraph [260-10-25-1](https://asc.understandingaccounting.org/asc/260/10/#260-10-25-1), an entity shall disclose the following: 1. a The fact that the feature has been triggered 2. b The value of the effect of the down round feature that has been triggered. #### Securities with Preferences ##### [505-10-50-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:07a05e90c6554df6dbc59ddebc789f3444afbc7067c692d7176fbfc3ec363ef4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that issues [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock.") (or other senior stock) that has a preference in involuntary liquidation considerably in excess of the par or stated value of the shares shall disclose the liquidation preference of the stock (the relationship between the preference in liquidation and the par or stated value of the shares). That disclosure shall be made in the equity section of the statement of financial position in the aggregate, either parenthetically or in short, rather than on a per-share basis or through disclosure in the notes. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)An entity that issues [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock.") (or other senior stock) that has a preference in involuntary liquidation other than par or stated value of the shares shall disclose the liquidation preference of the stock (the relationship between the preference in liquidation and the par or stated value of the shares). That disclosure shall be made in the equity section of the statement of financial position in the aggregate, either parenthetically or in short, rather than on a per-share basis or through disclosure in the notes. ##### [505-10-50-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:d7d76d7d04b17d6f5342a87658eab542bd5c9b9091a5708acc9e562c6fd7ce09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, an entity shall disclose both of the following within its financial statements (either on the face of the statement of financial position or in the notes thereto): 1. a The aggregate or per-share amounts at which preferred stock may be called or is subject to redemption through sinking-fund operations or otherwise 2. b The aggregate and per-share amounts of arrearages in cumulative preferred dividends. ##### [505-10-50-6](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:78a7498f4910d9111294d809d85df7502cb3d27e5e8d319a9baad664116db953 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:235f2a26948dca483c77c906a201d09faf98c9b984014ead572972f282cb8fbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-8](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:d8830cb9254dc64a7b0ff91ea4ceb59f01839ddfa9dd15ab943cbf4876092584 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-9](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:f2f43a6c197f0c0052750fc418c6041bb14fad6a1c78ed4dc1f1a61caed67cb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-10](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:425a9c8d517160fee137ccaa9f2046ffc867f7d5373f1f353f89784f5b054331 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-10A](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-10A) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:7d16dfec0fb04a0273341a9072529814d5264bdc1d48723dc790d672eaf4f740 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). #### Redeemable Securities ##### [505-10-50-11](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:11bef9945b22d595b285503bacb14ab452a863257dd22424668abc6b6ff1a160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that issues redeemable stock shall disclose the amount of redemption requirements, separately by issue or combined, for all issues of capital stock that are redeemable at fixed or determinable prices on fixed or determinable dates in each of the five years following the date of the latest statement of financial position presented. #### Convertible Preferred Stock ##### [505-10-50-12](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:d717d25b2747038a3e8d029d5dbeda9c47ef9279863a7fd436eab52322a833c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the disclosure about convertible preferred stock is to provide users of financial statements with: 1. a Information about the terms and features of convertible preferred stock 2. b An understanding of how those instruments have been reported in an entity's statement of financial position and statement of financial performance 3. c Information about events, conditions, and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. ##### [505-10-50-13](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:bae1ce84446df5c6a79c968d04d40febd94d089d7f9fa9f7ba8b883f3383af98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To comply with the general disclosure requirements of paragraph [505-10-50-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-3), an entity shall explain the pertinent rights and privileges of each outstanding instrument, including, but not limited to, the following information: 1. a Number of shares issued and par value 2. b Dividends 3. c Conversion or exercise prices or rates and number of shares into which the instrument is potentially convertible 4. d Pertinent dates, such as conversion date(s) 5. e Parties that control the conversion rights 6. f Manner of settlement upon conversion and any alternative settlement methods, such as cash, shares, or a combination of cash and shares 7. g Terms that may change conversion or exercise prices, number of shares to be issued, or other conversion rights and the timing of those rights (excluding standard antidilution provisions) 8. h Liquidation preference required by paragraph [505-10-50-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-4) and unusual voting rights 9. i Other material terms and features of the instrument that are not listed above. ##### [505-10-50-14](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:87165e4092c17fe352ad4233f5b3b4683ec6117ca98e40dc2457ae73a6a45d51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall provide the following incremental information for [contingently convertible instruments](https://asc.understandingaccounting.org/glossary/c/#contingently-convertible-instruments "Contingently convertible instruments are instruments that have embedded conversion features that are contingently convertible or exercisable based on either of the following: A market price trigger Multiple contingencies if one of the contingencies is a market price trigger and the instrument can be converted or share settled based on meeting the specified market condition. A market price trigger is a market condition that is based at least in part on the issuer's own share price. Examples of contingently convertible instruments include contingently convertible debt, contingently convertible preferred stock, and the instrument described by paragraph 260-10-45-43, all with embedded market price triggers.") or the instruments that are described in paragraphs [505-10-05-6 through 05-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-6) : 1. a Events or changes in circumstances that would adjust or change the contingency or would cause the contingency to be met 2. b Information on whether the shares that would be issued if the contingently convertible securities were converted are included in the calculation of diluted earnings per share (EPS) and the reasons why or why not 3. c Other information that is helpful in understanding both the nature of the contingencies and the potential impact of conversion. ##### [505-10-50-15](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:a2c98380e6e47c5b662169509eb7978db69798fb8bbf29b914818c7fa303f0fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the amount of dividends declared for each period for which a statement of financial performance is presented, in addition to the disclosures required by paragraph [505-10-50-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-5). ##### [505-10-50-16](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:e3885004235f50b55936d827ee67b1d45562db8b124080ba415a5186f5e23fd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following as of the date of the latest statement of financial position presented: 1. a Changes to conversion or exercise prices that occur during the reporting period other than changes due to standard antidilution provisions 2. b Events or changes in circumstances that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed 3. c The number of shares issued upon conversion, exercise, or satisfaction of required conditions during the reporting period. ##### [505-10-50-17](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:e80e7238e4ea8fe6d073d920f0e6cd8a138cf36c6170ab02b9b79c107f4daed5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a conversion option is accounted for as a derivative in accordance with Subtopic 815-15, an entity shall provide disclosures in accordance with Topic 815 for the conversion option in addition to the disclosures required by the guidance in this Section, if applicable. ##### [505-10-50-18](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:fb155cfa8d76ab2c6c4302a037d29cc9789344e51e635bfde885d4cd6aadd530 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information about derivative transactions entered into in connection with the issuance of convertible preferred stock within the scope of this Subtopic regardless of whether such derivative transactions are accounted for as assets, liabilities, or equity instruments: 1. a The terms of those derivative transactions (including the terms of settlement) 2. b How those derivative transactions relate to the instruments within the scope of this Subtopic 3. c The number of shares underlying the derivative transactions 4. d The reasons for entering into those derivative transactions. Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:bf7dedd046dba0dfbd8aed02b8d82f9e1322ee8937bc31b7f658d5bada26bdca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/505/10/#60-relationships) SEC content: no #### Comprehensive Income ##### [505-10-60-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:ec22c78950a518ad7f4ca9374db91258340bb30f97aed48b576f0ac012ee3734 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the required presentation and disclosure related to other comprehensive income, see paragraphs [220-10-45-1 through 45-17](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-1) . #### Debt ##### [505-10-60-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:53ae8885b1ce9026991d42a6f30a0e8999c7d62bcbec2d127a2916e9199dbfb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-60-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:301e3074135a85bc7a12f4a40508092a0b6e102cd8ee2233049b7fc0d7cde317 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the need to allocate proceeds from the sale of debt with stock purchase warrants to the debt and the warrants, see Subtopic 470-20. #### Distinguishing Liabilities from Equity ##### [505-10-60-3A](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:28c4bd447f7d17fee257e9b62a855f5d1d0e5d166d18453510cf9ea93fd1500a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on whether a specific financial instrument shall be classified as equity or outside of the equity classification, see Topic 480. #### Consolidation ##### [505-10-60-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:6ddabf603fa0487a81bdc8b49c13d3333fe0d057b8a0ce2b4db4300feffb40ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the treatment of shares of a parent held by its subsidiary in the consolidated balance sheet, see paragraph [810-10-45-5](https://asc.understandingaccounting.org/asc/810/10/#810-10-45-5). For guidance on the accounting for the purchase (early extinguishment) of a wholly owned subsidiary's mandatorily redeemable [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock."), see paragraphs [810-10-40-1 through 40-2A](https://asc.understandingaccounting.org/asc/810/10/#810-10-40-1). #### Derivatives and Hedging ##### [505-10-60-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:9541d5bd9767eb2628c687baa851771a3145224fb30f2e4c2a77985b2b942582 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the potential classification of an embedded derivative as an equity instrument, see Topic 815. #### Financial Instruments ##### [505-10-60-6](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:5ccc2455dce288bbbb42b5572288884efbe529d7bb884d6464a21454d5c15a55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the accounting for a [registration payment arrangement](https://asc.understandingaccounting.org/glossary/r/#registration-payment-arrangement "An arrangement with both of the following characteristics: It specifies that the issuer will endeavor to do either of the following: File a registration statement for the resale of specified financial instruments and/or for the resale of equity shares that are issuable upon exercise or conversion of specified financial instruments and for that registration statement to be declared effective by the U.S. Securities and Exchange Commission (SEC) (or other applicable securities regulator if the registration statement will be filed in a foreign jurisdiction) within a specified grace period Maintain the effectiveness of the registration statement for a specified period of time (or in perpetuity). It requires the issuer to transfer consideration to the counterparty if the registration statement for the resale of the financial instrument or instruments subject to the arrangement is not declared effective or if effectiveness of the registration statement is not maintained. That consideration may be payable in a lump sum or it may be payable periodically, and the form of the consideration may vary. For example, the consideration may be in the form of cash, equity instruments, or adjustments to the terms of the financial instrument or instruments that are subject to the registration payment arrangement (such as an increased interest rate on a debt instrument)."), see Subtopic 825-20. ##### [505-10-60-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:e0e669135e58bd7c244b48b1d0273f5b66726cd37ca828e10737f929fd89f48b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the accounting for an equity-classified freestanding [financial instrument](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.") with a [down round feature](https://asc.understandingaccounting.org/glossary/d/#down-round-feature "A feature in a financial instrument that reduces the strike price of an issued financial instrument if the issuer sells shares of its stock for an amount less than the currently stated strike price of the issued financial instrument or issues an equity-linked financial instrument with a strike price below the currently stated strike price of the issued financial instrument. A down round feature may reduce the strike price of a financial instrument to the current issuance price, or the reduction may be limited by a floor or on the basis of a formula that results in a price that is at a discount to the original exercise price but above the new issuance price of the shares, or may reduce the strike price to below the current issuance price. A standard antidilution provision is not considered a down round feature."), see Topic 260 on earnings per share. ##### [505-10-60-8](https://asc.understandingaccounting.org/asc/505/10/#505-10-60-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:57.989Z to 2026-09-10T00:36:57.989Z Record version: sha256:cff47bb5b14f503411573801afd790e2834409bdc221e2a84be02d1a9b744349 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange, see Subtopic 815-40 on contracts in entity's own equity. Source downloaded (UTC): 2026-09-10T00:37:00.517Z to 2026-09-10T00:37:00.517Z Record version: sha256:5313dc60a0eff2274a3768908df5a5afb910719b7f5d613c1c209f53c117120e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/505/10/#65-transition-and-open-effective-date-information) SEC content: no #### Transition Related to Accounting Standards Update No. 2026-01, Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock ##### [505-10-65-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:00.517Z to 2026-09-10T00:37:00.517Z Record version: sha256:ce366001d39c33bb268bc83357b011ec418f0a1a250c8bdd33fa6618256fd924 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Accounting Standards Update 2026-01](https://asc.understandingaccounting.org/updates/asu-2026-01/) 2028-06-13 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 2026-12-16 The following represents the transition and effective date information related to Accounting Standards Update No. 2026-01, _Equity (Topic 505): Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock_: **Effective date and early adoption** 1. a All entities shall apply the pending content that links to this paragraph for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. 2. b Early adoption of the pending content that links to this paragraph is permitted in an interim or annual reporting period in which the financial statements have not yet been issued or made available for issuance. If an entity adopts the pending content that links to this paragraph in an interim reporting period, it shall apply the pending content as of the beginning of the annual reporting period that includes that interim reporting period. **Transition method** 1. c An entity shall apply the pending content that links to this paragraph using either of the following transition methods: 1. 1 On a prospective basis to paid-in-kind dividends recognized on preferred stock on or after the initial application date of the pending content that links to this paragraph. 2. 2 On a modified retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity) as of the beginning of the earliest period presented. Under this transition method, an entity shall apply the pending content that links to this paragraph to paid-in-kind dividends recognized on preferred stock that is outstanding as of the initial application date of the pending content. **Transition disclosures** 1. d An entity that applies the pending content that links to this paragraph prospectively in accordance with (c)(1) shall provide the following transition disclosures in the financial statements of both the interim reporting period (if applicable) and the annual reporting period in which the pending content is applied: 1. 1 The nature of the change in accounting principle, including an explanation of the newly adopted accounting principle 2. 2 The method of applying the change. 2. e An entity that applies the pending content that links to this paragraph on a modified retrospective basis in accordance with (c)(2) shall provide the following transition disclosures in the financial statements of both the interim reporting period (if applicable) and the annual reporting period in which the pending content is applied: 1. 1 The nature of the change in accounting principle, including an explanation of the newly adopted accounting principle 2. 2 The method of applying the change 3. 3 The cumulative effect of the change on retained earnings or other components of equity in the statement of financial position as of the beginning of the earliest period presented 4. 4 The effect of the change on income available to common shareholders, any other affected financial statement line items, and any affected per-share amounts for the current reporting period and any prior reporting periods retrospectively adjusted. Source downloaded (UTC): 2026-09-10T00:37:07.251Z to 2026-09-10T00:37:07.251Z Record version: sha256:ac5e25329d961bcb95661999722e0266b06fbcda6dbac542f2d869b0bc211d64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/10/#sec-00-status) SEC content: yes ##### [505-10-S00-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:07.251Z to 2026-09-10T00:37:07.251Z Record version: sha256:87a259f6e0971f9b082564b497a990ad0c7102be9e4437d0fcb53d05b069cf67 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
505-10-S25-2SupersededAccounting Standards Update No. 2012-0308/27/2012
505-10-S45-10SupersededAccounting Standards Update No. 2012-0308/27/2012
505-10-S50-4SupersededAccounting Standards Update No. 2012-0308/27/2012
505-10-S50-5AmendedAccounting Standards Update No. 2020-0910/22/2020
505-10-S50-6AmendedAccounting Standards Update No. 2020-0910/22/2020
505-10-S50-7 through S50-9
SupersededAccounting Standards Update No. 2020-0910/22/2020
505-10-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
505-10-S99-1AmendedAccounting Standards Update No. 2010-2108/02/2010
505-10-S99-2AmendedAccounting Standards Update No. 2019-0707/26/2019
505-10-S99-6SupersededAccounting Standards Update No. 2010-2208/19/2010
505-10-S99-7AmendedAccounting Standards Update No. 2012-0308/27/2012
Source downloaded (UTC): 2026-09-10T00:37:10.510Z to 2026-09-10T00:37:10.510Z Record version: sha256:46f6428cb54ff7c8e25fd449eb3eaadfe4ff99a277e3f7c9f98109be28d39d2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/10/#sec-25-recognition) SEC content: yes #### Expenses Related to an Equity Offering ##### [505-10-S25-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:10.510Z to 2026-09-10T00:37:10.510Z Record version: sha256:74df090700b36fcd57c536c255a3fe45f49335ef82ae0e36eeb8664478355191 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [340-10-S99-1](https://asc.understandingaccounting.org/asc/340/10/#340-10-S99-1), SAB Topic 5.A, for SEC Staff views on deferral of expenses related to an equity offering. ##### [505-10-S25-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-S25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:10.510Z to 2026-09-10T00:37:10.510Z Record version: sha256:920b749baa10bfefc48b270303fa75cdd26ee29ea8073e917c1b72c6f2eb6995 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2012-03](https://asc.understandingaccounting.org/updates/asu-2012-03/). Source downloaded (UTC): 2026-09-10T00:37:12.273Z to 2026-09-10T00:37:12.273Z Record version: sha256:d7fccf7fc7cc27bd7fc7b152bbc0c540c5d672d94e3b29014917f1b25314703c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-S30: SEC 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/505/10/#sec-30-initial-measurement) SEC content: yes #### Increasing Rate Preferred Stock ##### [505-10-S30-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:12.273Z to 2026-09-10T00:37:12.273Z Record version: sha256:eb737131190c7c2537975f52a009bab10324fd20df79a3e6ac035669d9a1339f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-7), SAB Topic 5.Q., Question 1, for SEC Staff views on increasing rate preferred stock. Source downloaded (UTC): 2026-09-10T00:37:14.860Z to 2026-09-10T00:37:14.860Z Record version: sha256:4df2ded70c4647eb55514c0f2ec3d7c767b764843bfa96751be2e2788dc13c9f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/505/10/#sec-35-subsequent-measurement) SEC content: yes #### Increasing Rate Preferred Stock ##### [505-10-S35-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:14.860Z to 2026-09-10T00:37:14.860Z Record version: sha256:1ad9c696cfa2bb141b0961061a6a52960c2310651c4f1848c14d98bab60c09ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-7), SAB Topic 5.Q, Questions 2 and 3, for SEC Staff views on increasing rate preferred stock. Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:72cd45abe06a1f482eea37e091cac917644f5c0e2aecc01a7dfc69369c09e0da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/505/10/#sec-45-other-presentation-matters) SEC content: yes #### Discounts on and Unamortized Balances of Shares ##### [505-10-S45-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:9b68efc24e805a1e755b6c1aa7b80768108d563608d153e33bb860cb48d86673 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-2), Regulation S-X Rule 4-07, for requirements on presenting discounts on shares and unamortized balances of shares. #### Preferred Stock that Is Not Redeemable or Redeemable Solely at the Option of the Issuer ##### [505-10-S45-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:428eb3edfa9e68ca5a873646ed574201ad802bea07da0d929d66ee9943ee002b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.29, for requirements on presenting preferred stock that is not redeemable or redeemable solely at the option of the issuer. #### Common Stock ##### [505-10-S45-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:c17277330de758e8e55b85f8225bffeb10728b5f8b535b991f57a6904dfa73b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.30, for presentation requirements for common stock. #### Other Stockholders' Equity ##### [505-10-S45-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:758677d8f460248654027ba01abc2e5ec22af307f77dfe5a4e72ae32e0583cf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.31, for presentation requirements for other stockholders' equity. #### Subordinated Debt ##### [505-10-S45-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:d5d9700b86fae618913a3bbc4bea14c58524f0ecf58b83398112a59bc50a1da0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-2), SAB Topic 4.A, for SEC Staff views on prohibiting the presentation of subordinated debt within stockholders' equity. #### Presentation of S Corporation Undistributed Earnings in Financial Statements upon Termination of S Election ##### [505-10-S45-6](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:940cc4b56219a6571d60f5baf9a06ca763ca4f5ed9319d07843d6c6243c05336 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-3), SAB Topic 4.B, for SEC Staff views on presenting S corporation undistributed earnings on the date the S election is terminated. #### Receivables Arising from the Issuance of Capital Stock to Officers and Other Employees ##### [505-10-S45-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:1184a8c0f8efc525021f1d89c223ccdef67b886f2da14d12d93b43fd5c1a8135 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-2), SAB Topic 4.E, for SEC Staff views on presenting receivables arising from sales of capital stock to officers and other employees. #### Presentation of Equity Section in Limited Partnership Financial Statements ##### [505-10-S45-8](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:d8919edc9c7074b45cd9efd98c0452c6cb17bc924cd0abfb3d9de37bf14d40ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-5), SAB Topic 4.F, for SEC Staff views on presenting equity in limited partnership financial statements. #### Presentation of Notes and Other Receivables in a General Partner's Balance Sheet ##### [505-10-S45-9](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:5212ed866a34715f9c92e5413eb999118117aaf79c0747e974614bda12de0ec6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-3), SAB Topic 4.G, for SEC Staff views on presenting certain notes and other receivables in a general partner's balance sheet. ##### [505-10-S45-10](https://asc.understandingaccounting.org/asc/505/10/#505-10-S45-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:17.407Z to 2026-09-10T00:37:17.407Z Record version: sha256:23249fbd2f173804b27f677c932f0bbf38d495e5449a33bdc2eedd7b188528f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2012-03](https://asc.understandingaccounting.org/updates/asu-2012-03/). Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:6fb93939b861fef41b9bdf60f724d3ca225ee3996443595387ddcdde30d39b67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/10/#sec-50-disclosure) SEC content: yes #### Changes in Each Caption of Other Stockholders' Equity ##### [505-10-S50-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:7448024563ef02dc0180f2c6ac45c5594b6371f3ad6b6dc3fd22c5933365eda9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-1), Regulation S-X Rule 3-04, for disclosure requirements for changes in stockholders' equity. #### Preferred Shares ##### [505-10-S50-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:e707b3a951851545a8f0e7bf7f48763c5660ba98b2bc2541ea2d585c6bc02a2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08(d), for disclosure requirements for preferred shares. #### Restrictions that Limit the Payment of Dividends by the Registrant ##### [505-10-S50-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:84482b64553dacf43782b8b280430a1ecfda6ae5964c4eccff20f56d44587737 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08(e), for disclosure requirements for restrictions that limit the payment of dividends by the registrant. ##### [505-10-S50-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:072ba378fec35834b5f307873f575a6a4212e6bd6a230b69647483268fcd208e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2012-03](https://asc.understandingaccounting.org/updates/asu-2012-03/). #### Guarantors and Issuers of Guaranteed Securities Registered or Being Registered ##### [505-10-S50-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:c9ad01361299e343141bb5f7e689bb1e7d411df0dcc3863ca277ca4fea682c6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1), Regulation S-X Rule 3-10, for requirements applicable to financial statements of guarantors and issuers of guaranteed debt or debt-like securities registered or being registered. ##### [505-10-S50-6](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:fceb9f618f96ea8351c7fe88edd0d5dd57bc45dfc742de4dbf872faf1bf62209 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-10-S99-1A](https://asc.understandingaccounting.org/asc/470/10/#470-10-S99-1A), Regulation S-X Rule 13-01, for disclosure requirements about guarantors and issuers of guaranteed debt or debt-like securities registered or being registered. ##### [505-10-S50-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:47fa273f7f998848bbf416921fc1fde6959243c37063716da7ea7133f7bdbd81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-09](https://asc.understandingaccounting.org/updates/asu-2020-09/). ##### [505-10-S50-8](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:efe6f2390a126e785a633f38e7b6b631213adce713abc104acbec75739d5f58f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-09](https://asc.understandingaccounting.org/updates/asu-2020-09/). ##### [505-10-S50-9](https://asc.understandingaccounting.org/asc/505/10/#505-10-S50-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:20.547Z to 2026-09-10T00:37:20.547Z Record version: sha256:db6b2fa5717125c22eb429e822f6217ebb4bc85253db3d88840b89475798da59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-09](https://asc.understandingaccounting.org/updates/asu-2020-09/). Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:7ebfde6f9481f0fd6a05d78326e86a88eebf633e1243724b99f441658ca345d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/505/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [505-10-S99-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:5ec48cb1aaab0956e9f2bd28dee4144b2507991e3e46deae246074b5e8cb5105 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 3-04, Changes in Other Stockholders' Equity and Noncontrolling Interests (17 CFR 210.3-04). - An analysis of the changes in each caption of stockholders' equity and noncontrolling interests presented in the balance sheets shall be given in a note or separate statement. This analysis shall be presented in the form of a reconciliation of the beginning balance to the ending balance for each period for which a statement of comprehensive income is required to be filed with all significant reconciling items described by appropriate captions with contributions from and distributions to owners shown separately. Also, state separately the adjustments to the balance at the beginning of the earliest period presented for items which were retroactively applied to periods prior to that period. With respect to any dividends, state the amount per share and in the aggregate for each class of shares. Provide a separate schedule in the notes to the financial statements that shows the effects of any changes in the registrant's ownership interest in a subsidiary on the equity attributable to the registrant. - \[83 FR 50199, Oct. 4, 2018\] ##### [505-10-S99-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:34252e545c35122d70353fb985f12075499bcb3da4018000e1d9e325231b5784 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 4-07, Discount on Shares (17 CFR 210.4-07). - Discount on shares, or any unamortized balance thereof, shall be shown separately as a deduction from the applicable account(s) as circumstances require. #### SEC Staff Guidance ##### [505-10-S99-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:8dada42eaeca1f51d7b17a38d78b552114b72d5d6914fdae353fd8ebd922b23e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.B, S Corporations. - Facts: An S corporation has undistributed earnings on the date its S election is terminated. - Question: How should such earnings be reflected in the financial statements? - Interpretive Response: Such earnings must be included in the financial statements as additional paid-in capital. This assumes a constructive distribution to the owners followed by a contribution to the capital of the corporation. ##### [505-10-S99-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:d9b9d151528bbe2755b89aafb2c6d807bac2a4cddd88d826fd4c4b2c827b6cf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.C, Changes in Capital Structure. - Facts: A capital structure change to a stock dividend, stock split or reverse split occurs after the date of the latest reported balance sheet but before the release of the financial statements or the effective date of the registration statement, whichever is later. - Question: What effect must be given to such a change? - Interpretive Response: Such changes in the capital structure must be given retroactive effect in the balance sheet. - An appropriately cross-referenced note should disclose the retroactive treatment, explain the change made and state the date the change became effective. ##### [505-10-S99-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:ab3c469dd3c62a3573d3a5b5eac804012d8e753c531737acb1e8689f5c592891 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.F, Limited Partnerships. - Facts: There exist a number of publicly held partnerships having one or more corporate or individual general partners and a relatively larger number of limited partners. There are no specific requirements or guidelines relating to the presentation of the partnership equity accounts in the financial statements. In addition, there are many approaches to the parallel problem of relating the results of operations to the two classes of partnership equity interests. - Question: How should the financial statements of limited partnerships be presented so that the two ownership classes can readily determine their relative participations in both the net assets of the partnership and in the results of its operations? - Interpretive Response: The equity section of a partnership balance sheet should distinguish between amounts ascribed to each ownership class. The equity attributed to the general partners should be stated separately from the equity of the limited partners, and changes in the number of equity units authorized and outstanding should be shown for each ownership class. A statement of changes in partnership equity for each ownership class should be furnished for each period for which an income statement is included. - The income statements of partnerships should be presented in a manner which clearly shows the aggregate amount of net income (loss) allocated to the general partners and the aggregate amount allocated to the limited partners. The statement of income should also state the results of operations on a per unit basis. ##### [505-10-S99-6](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:775a255dfe8b4ee9492352379428e53dcb25b5774fa110a853bed6ff3742fed8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-22](https://asc.understandingaccounting.org/updates/asu-2010-22/). ##### [505-10-S99-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:26.444Z to 2026-09-10T00:37:26.444Z Record version: sha256:36700bb5bb55c59f3c9fe7bbda9be790a90d2d16f59b0e915b346092ae8ea39b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 5.Q, Increasing Rate Preferred Stock. - Facts: A registrant issues Class A and Class B nonredeemable preferred stock FN19 on 1/1/X1. Class A, by its terms, will pay no dividends during the years 20X1 through 20X3. Class B, by its terms, will pay dividends at annual rates of $2, $4 and $6 per share in the years 20X1, 20X2 and 20X3, respectively. Beginning in the year 20X4 and thereafter as long as they remain outstanding, each instrument will pay dividends at an annual rate of $8 per share. In all periods, the scheduled dividends are cumulative. - FN19 "Nonredeemable" preferred stock, as used in this SAB, refers to preferred stocks which are not redeemable or are redeemable only at the option of the issuer. - At the time of issuance, eight percent per annum was considered to be a market rate for dividend yield on Class A, given its characteristics other than scheduled cash dividend entitlements (voting rights, liquidation preference, etc.), as well as the registrant's financial condition and future economic prospects. Thus, the registrant could have expected to receive proceeds of approximately $100 per share for Class A if the dividend rate of $8 per share (the "perpetual dividend") had been in effect at date of issuance. In consideration of the dividend payment terms, however, Class A was issued for proceeds of $79 3/8 per share. The difference, $20 5/8, approximated the value of the absence of $8 per share dividends annually for three years, discounted at 8%. - The issuance price of Class B shares was determined by a similar approach, based on the terms and characteristics of the Class B shares. - Question 1: How should preferred stocks of this general type (referred to as "increasing rate preferred stocks") be reported in the balance sheet? - Interpretive Response: As is normally the case with other types of securities, increasing rate preferred stock should be recorded initially at its fair value on date of issuance. Thereafter, the carrying amount should be increased periodically as discussed in the Interpretive Response to Question 2. - Question 2: Is it acceptable to recognize the dividend costs of increasing rate preferred stocks according to their stated dividend schedules? - Interpretive Response: No. The staff believes that when consideration received for preferred stocks reflects expectations of future dividend streams, as is normally the case with cumulative preferred stocks, any discount due to an absence of dividends (as with Class A) or gradually increasing dividends (as with Class B) for an initial period represents prepaid, unstated dividend cost. FN20 Recognizing the dividend cost of these instruments according to their stated dividend schedules would report Class A as being cost-free, and would report the cost of Class B at less than its effective cost, from the standpoint of common stock interests (i. e., for purposes of computing income applicable to common stock and earnings per common share) during the years 20X1 through 20X3. - FN20 As described in the "Facts" section of this issue, a registrant would receive less in proceeds for a preferred stock, if the stock were to pay less than its perpetual dividend for some initial period(s), than if it were to pay the perpetual dividend from date of issuance. The staff views the discount on increasing rate preferred stock as equivalent to a prepayment of dividends by the issuer, as though the issuer had concurrently (a) issued the stock with the perpetual dividend being payable from date of issuance, and (b) returned to the investor a portion of the proceeds representing the present value of certain future dividend entitlements which the investor agreed to forgo. - Accordingly, the staff believes that discounts on increasing rate preferred stock should be amortized over the period(s) preceding commencement of the perpetual dividend, by charging imputed dividend cost against retained earnings and increasing the carrying amount of the preferred stock by a corresponding amount. The discount at time of issuance should be computed as the present value of the difference between (a) dividends that will be payable, if any, in the period(s) preceding commencement of the perpetual dividend; and (b) the perpetual dividend amount for a corresponding number of periods; discounted at a market rate for dividend yield on preferred stocks that are comparable (other than with respect to dividend payment schedules) from an investment standpoint. The amortization in each period should be the amount which, together with any stated dividend for the period (ignoring fluctuations in stated dividend amounts that might result from variable rates, FN21 results in a constant rate of effective cost vis-a-vis the carrying amount of the preferred stock (the market rate that was used to compute the discount). - FN21 See Question 3 regarding variable increasing rate preferred stocks. - Simplified (ignoring quarterly calculations) application of this accounting to the Class A preferred stock described in the "Facts" section of this bulletin would produce the following results on a per share basis: - ![](https://asc.understandingaccounting.org/asc-img/GUID-96D7FAF0-64E9-48C1-A918-98222C1C0EB7-low.gif) Carrying amount of preferred stock Beginning of Year (BOY) Imputed Dividend (8% of carrying Amount at BOY) "End of year " Year 20X1 $79.38 6.35 85.73 Year 20X2 85.73 6.86 92.59 Year 20X3 92.59 7.41 100.00 - During 20X4 and thereafter, the stated dividend of $8 measured against the carrying amount of $100 FN22 would reflect dividend cost of 8%, the market rate at time of issuance. - FN22 It should be noted that the $100 per share amount used in this issue is for illustrative purposes, and is not intended to imply that application of this issue will necessarily result in the carrying amount of a nonredeemable preferred stock being accreted to its par value, stated value, voluntary redemption value or involuntary liquidation value. - The staff believes that existing authoritative literature, while not explicitly addressing increasing rate preferred stocks, implicitly calls for the accounting described in this bulletin. - The pervasive, fundamental principle of accrual accounting would, in the staff's view, preclude registrants from recognizing the dividend cost on the basis of whatever cash payment schedule might be arranged. Furthermore, recognition of the effective cost of unstated rights and privileges is well-established in accounting, and is specifically called for by FASB ASC Subtopic 835-30, Interest—Imputation of Interest, and Topic 3.C of this codification for unstated interest costs of debt capital and unstated dividend costs of redeemable preferred stock capital, respectively. The staff believes that the requirement to recognize the effective periodic cost of capital applies also to nonredeemable preferred stocks because, for that purpose, the distinction between debt capital and preferred equity capital (whether redeemable FN23 or nonredeemable) is irrelevant from the standpoint of common stock interests. - FN23 Application of the interest method with respect to redeemable preferred stocks pursuant to Topic 3.C results in accounting consistent with the provisions of this bulletin irrespective of whether the redeemable preferred stocks have constant or increasing stated dividend rates. The interest method, as described in FASB ASC Subtopic 835-30, produces a constant effective periodic rate of cost that is comprised of amortization of discount as well as the stated cost in each period. - Question 3: Would the accounting for discounts on increasing rate preferred stock be affected by variable stated dividend rates? - Interpretive Response: No. If stated dividends on an increasing rate preferred stock are variable, computations of initial discount and subsequent amortization should be based on the value of the applicable index at date of issuance and should not be affected by subsequent changes in the index. - For example, assume that a preferred stock issued 1/1/X1 is scheduled to pay dividends at annual rates, applied to the stock's par value, equal to 20% of the actual (fluctuating) market yield on a particular Treasury security in 20X1 and 20X2, and 90% of the fluctuating market yield in 20X3 and thereafter. The discount would be computed as the present value of a two-year dividend stream equal to 70% (90% less 20%) of the 1/1/X1 Treasury security yield, annually, on the stock's par value. The discount would be amortized in years 20X1 and 20X2 so that, together with 20% of the 1/1/X1 Treasury yield on the stock's par value, a constant rate of cost vis-a-vis the stock's carrying amount would result. Changes in the Treasury security yield during 20X1 and 20X2 would, of course, cause the rate of total reported preferred dividend cost (amortization of discount plus cash dividends) in those years to be more or less than the rate indicated by discount amortization plus 20% of the 1/1/X1 Treasury security yield. However, the fluctuations would be due solely to the impact of changes in the index on the stated dividends for those periods. - Question 4: Will the staff expect retroactive changes by registrants to comply with the accounting described in this bulletin? - Interpretive Response: All registrants will be expected to follow the accounting described in this bulletin for increasing rate preferred stocks issued after December 4, 1986. FN24 Registrants that have not followed this accounting for increasing rate preferred stocks issued before that date were encouraged to retroactively change their accounting for those preferred stocks in the financial statements next filed with the Commission. The staff did not object if registrants did not make retroactive changes for those preferred stocks, provided that all presentations of and discussions regarding income applicable to common stock and earnings per share in future filings and shareholders' reports are accompanied by equally prominent supplemental disclosures (on the face of the income statement, in presentations of selected financial data, in MD&A, etc.) of the impact of not changing their accounting and an explanation of such impact (e. g., that dividend cost has been recognized on a cash basis). - FN24 The staff first publicly expressed its view as to the appropriate accounting at the December 3-4, 1986 meeting of the EITF. Source downloaded (UTC): 2026-09-10T00:37:28.663Z to 2026-09-10T00:37:57.398Z Record version: sha256:465807af49f13e9a3fafe17ca94b9afed0747060b489a2cd2cb456f6c70dae56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20: Equity — Stock Dividends and Stock Splits ### Machine-generated study aids ```json { "summary": "ASC 505-20 governs how corporations (issuers) and shareholders (recipients) account for stock dividends and stock splits. The core rule is substance over form: a small issuance (generally less than 20–25% of previously outstanding shares) is a stock dividend requiring capitalization of retained earnings at the fair value of the shares issued, while a larger issuance that materially reduces the unit market price is a stock split in substance, requiring capitalization only to the extent of legal requirements. Recipients recognize no income; they simply reallocate the cost of previously held shares over the larger number of shares.", "key_points": [ "A stock dividend or stock split involves no distribution or severance of corporate assets, so any increase in the fair value of a recipient's holdings is unrealized appreciation and is not income (505-20-05-4).", "The Subtopic applies to all corporations but not to distributions of shares of another corporation held as an investment, shares of a different class, rights to subscribe for additional shares, or same-class shares where each shareholder may elect cash or shares (505-20-15-1 through 15-3A).", "Issuances of additional shares of less than 20 or 25 percent of previously outstanding shares generally call for stock dividend treatment; larger issuances that materially reduce unit market price are stock splits in substance (505-20-25-2 through 25-3).", "For a stock dividend, the issuer transfers from retained earnings to capital stock and additional paid-in capital an amount equal to the fair value of the additional shares issued, which usually exceeds state-law minimum capitalization (par value) requirements (505-20-30-3 through 30-4).", "For a stock split — and for stock dividends of closely held entities where shareholders have intimate knowledge of the entity's affairs — retained earnings need be capitalized only to the extent required by law (505-20-30-5 through 30-6).", "A recipient allocates the cost of shares previously held equitably over the total shares held after the dividend or split, and gain or loss on later disposition is measured using the adjusted cost per share (505-20-30-7).", "When a stock dividend in form is a stock split in substance, the word 'dividend' should be avoided; if legal requirements compel its use, the transaction should be described as a 'stock split effected in the form of a dividend' (505-20-50-1)." ], "categories": [ "Debt and equity", "Recognition", "Initial measurement", "Earnings per share" ], "audience_level": "introductory", "student_note": "Exams love the 20–25% threshold: small issuances are stock dividends measured at fair value with a charge to retained earnings, while large ones are splits requiring only legal-minimum (par) capitalization. The common misunderstanding is that a shareholder recognizes dividend income on receipt — there is no income, only a reallocation of existing basis across more shares.", "related_topics": [ "260-10", "480-10", "505-10", "505-30" ], "key_concepts": [ "stock dividend", "stock split", "capitalization of retained earnings", "substance over form", "fair value of shares issued", "stock split effected in the form of a dividend", "cost allocation to shares held", "closely held entity" ] } ``` Source downloaded (UTC): 2026-09-10T00:37:28.663Z to 2026-09-10T00:37:28.663Z Record version: sha256:cfb3afa81d107a39a917a82f4915503958cc9043dee3aebd25740f9e9fc5a043 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/20/#00-status) SEC content: no ##### [505-20-00-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:28.663Z to 2026-09-10T00:37:28.663Z Record version: sha256:5ebe808a41d88b1338f638b584cdb48c08168781da125fd2b3e4ff47f2200ed5 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
Stock DividendAmendedAccounting Standards Update No. 2010-0101/05/2010
505-20-05-2AmendedAccounting Standards Update No. 2012-0410/01/2012
505-20-05-3SupersededAccounting Standards Update No. 2010-0101/05/2010
505-20-05-4AmendedAccounting Standards Update No. 2012-0410/01/2012
505-20-05-4AmendedAccounting Standards Update No. 2010-0101/05/2010
505-20-15-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-20-15-2AmendedAccounting Standards Update No. 2010-0101/05/2010
505-20-15-3AAddedAccounting Standards Update No. 2010-0101/05/2010
505-20-65-1AddedAccounting Standards Update No. 2010-0101/05/2010
Source downloaded (UTC): 2026-09-10T00:37:32.565Z to 2026-09-10T00:37:32.565Z Record version: sha256:6caa936ac61cc94aec93504198e27c81f357c50474e8afef4b69f442accd03c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/20/#05-overview-and-background) SEC content: no ##### [505-20-05-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:32.565Z to 2026-09-10T00:37:32.565Z Record version: sha256:4a1d790f20ad8e0c5dbdb18f0e5ebc078faa93127c41af21a885ba1345da49a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting for stock dividends and stock splits. It includes guidance for the recipient as well as for the issuer. ##### [505-20-05-2](https://asc.understandingaccounting.org/asc/505/20/#505-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:32.565Z to 2026-09-10T00:37:32.565Z Record version: sha256:dda3bd49c80b023a5ce27f3435460cb5d7bf88fbc58a0b2cefd5ec671e2d7181 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Many recipients of stock dividends look upon them as distributions of corporate earnings, and usually in an amount equivalent to 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 additional shares received. If the issuances of stock dividends are so small in comparison with the shares previously outstanding, such issuances generally do not have any apparent effect on the share market price and, consequently, the fair value of the shares previously held remains substantially unchanged. ##### [505-20-05-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:32.565Z to 2026-09-10T00:37:32.565Z Record version: sha256:f3258f99c171884aed52bdfa6cf5d15dd20a1f62033999b52d2c55399d2e0fd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-01](https://asc.understandingaccounting.org/updates/asu-2010-01/). ##### [505-20-05-4](https://asc.understandingaccounting.org/asc/505/20/#505-20-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:32.565Z to 2026-09-10T00:37:32.565Z Record version: sha256:a46975994de5224c295068247a5541ce18edf21dfa99b7d3f0768b1601554bf8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If there is an increase in the fair value of a recipient's holdings, such unrealized appreciation is not income. In the case of a [stock dividend](https://asc.understandingaccounting.org/glossary/s/#stock-dividend "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.") or [stock split](https://asc.understandingaccounting.org/glossary/s/#stock-split "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."), there is no distribution, division, or severance of corporate assets. Moreover, there is nothing resulting therefrom that the shareholder can realize without parting with some of his or her proportionate interest in the corporation. ##### [505-20-05-5](https://asc.understandingaccounting.org/asc/505/20/#505-20-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:32.565Z to 2026-09-10T00:37:32.565Z Record version: sha256:328b5dcde729279e6356a1a986c2bb1f9d60d20dbd4e1038d9017cc288736a9d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [260-10-55-12](https://asc.understandingaccounting.org/asc/260/10/#260-10-55-12) for earnings per share (EPS) guidance if the number of common shares outstanding increases as a result of a stock dividend or stock split. Source downloaded (UTC): 2026-09-10T00:37:36.423Z to 2026-09-10T00:37:36.423Z Record version: sha256:79a93df328d67082d644c12a5c2eb76c298c6d2675cf59934819c31e4a279841 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/20/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [505-20-15-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:36.423Z to 2026-09-10T00:37:36.423Z Record version: sha256:de59fb5230fee1ac5aba2fa780dbd8cd2d103d37b91802c3c75e36e22d82e04f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities that are corporations. #### Transactions ##### [505-20-15-2](https://asc.understandingaccounting.org/asc/505/20/#505-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:36.423Z to 2026-09-10T00:37:36.423Z Record version: sha256:58158a780d24c03cd9061e625bca93e18d9668580cb2dcfc3fd654eb9b8cabe4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all [stock dividends](https://asc.understandingaccounting.org/glossary/s/#stock-dividend "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.") and stock splits, with specific exceptions noted in paragraphs [505-20-15-3 through 15-3A](https://asc.understandingaccounting.org/asc/505/20/#505-20-15-3). ##### [505-20-15-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:36.423Z to 2026-09-10T00:37:36.423Z Record version: sha256:848ed54d070ab70e87f82d2594ea74bee4ff02deccb6881606bc2fe60591eb66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [505-20-15-3A](https://asc.understandingaccounting.org/asc/505/20/#505-20-15-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:36.423Z to 2026-09-10T00:37:36.423Z Record version: sha256:2631039b2b5aac9854a2f3d0efc659ba8d5d40c57cbd4e2e2a64d053ecfee311 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/480/10/#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](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-45) . Source downloaded (UTC): 2026-09-10T00:37:41.401Z to 2026-09-10T00:37:41.401Z Record version: sha256:3563e088038965838eacb1ca8fe08ce6279c700090479eb93083bb7520f88454 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/20/#25-recognition) SEC content: no #### Criteria for Treatment as Stock Dividend or Stock Split ##### [505-20-25-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:41.401Z to 2026-09-10T00:37:41.401Z Record version: sha256:87b5cfadeea88e9b3fb4a5340a38c868b252c69ae00262ab1dec2d99cabbfd5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance on determining whether stock dividends and stock splits are to be accounted for in accordance with their actual form or whether their substance requires different accounting. #### Stock Dividend in Form ##### [505-20-25-2](https://asc.understandingaccounting.org/asc/505/20/#505-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:41.401Z to 2026-09-10T00:37:41.401Z Record version: sha256:2d5f988eef9daf57b74d834f350a0494121f2d72f7acc05a66e47a44c34c4417 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The number of additional shares issued as a [stock dividend](https://asc.understandingaccounting.org/glossary/s/#stock-dividend "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.") may be so great that it has, or may reasonably be expected to have, the effect of materially reducing the share market value. In such a situation, because the implications and possible shareholder belief discussed in paragraph [505-20-30-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-3) are not likely to exist, the substance of the transaction is clearly that of a [stock split](https://asc.understandingaccounting.org/glossary/s/#stock-split "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."). ##### [505-20-25-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:41.401Z to 2026-09-10T00:37:41.401Z Record version: sha256:710d50c398008f99570fb43ec91f26ddc39e03a820bd85da1d760f08d3899c05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The point at which the relative size of the additional shares issued becomes large enough to materially influence the unit market price of the stock will vary with individual entities and under differing market conditions and, therefore, no single percentage can be established as a standard for determining when capitalization of retained earnings in excess of legal requirements is called for and when it is not. Except for a few instances, the issuance of additional shares of less than 20 or 25 percent of the number of previously outstanding shares would call for treatment as a stock dividend as described in paragraph [505-20-30-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-3). #### Stock Split in Form ##### [505-20-25-4](https://asc.understandingaccounting.org/asc/505/20/#505-20-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:41.401Z to 2026-09-10T00:37:41.401Z Record version: sha256:9c206c0e7f9bee8e42e44fe9bde6d7c97d2cdd187cac7bba85647a15c7599641 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A stock split is confined to transactions involving the issuance of shares, without consideration to the corporation, for the purpose of effecting a reduction in the unit market price of shares of the class issued and, therefore, of obtaining wider distribution and improved marketability of the shares. ##### [505-20-25-5](https://asc.understandingaccounting.org/asc/505/20/#505-20-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:41.401Z to 2026-09-10T00:37:41.401Z Record version: sha256:a396c8b8be8eb24e0feac86b6d4f4cdf2491097c8988e009d37a6ebf940a6752 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Few cases will arise in which the aforementioned purpose can be accomplished through an issuance of shares that is less than 20 or 25 percent of the previously outstanding shares. ##### [505-20-25-6](https://asc.understandingaccounting.org/asc/505/20/#505-20-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:41.401Z to 2026-09-10T00:37:41.401Z Record version: sha256:1cf89b498c36647dc4f9e04d3f12f0779e079a003ae5fade08622282684ee41b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The corporation's representations to its shareholders as to the nature of the issuance is one of the principal considerations in determining whether it shall be recorded as a stock dividend or a stock split. Nevertheless, the issuance of new shares in ratios of less than 20 or 25 percent of the previously outstanding shares, or the frequent recurrence of issuances of shares, would destroy the presumption that transactions represented to be stock splits shall be recorded as stock splits. Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:ccd4ec77614009f2f890f05e53db13cb975dfe1aa18948c59db16737703b809a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/505/20/#30-initial-measurement) SEC content: no ##### [505-20-30-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:14d154e673fef994f5d3191f060a323ecc09c0468ca7d2c1331b90bd740d13b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance for the issuer and recipient of either a [stock dividend](https://asc.understandingaccounting.org/glossary/s/#stock-dividend "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.") or a [stock split](https://asc.understandingaccounting.org/glossary/s/#stock-split "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."). #### Issuer's Accounting for a Stock Dividend or Stock Split ##### [505-20-30-2](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:6cc9d5da2c8c49b55ae027ca7ffb2f9b5ca3a9e59230073cc3d545c3c4647ea8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 505-20-25 provides guidance on determining whether a stock dividend or a stock split shall be accounted for according to its form or whether it shall be accounted for differently. The following guidance addresses the accounting for the substantive nature of the transaction as either a stock dividend or a stock split. ##### [505-20-30-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:3ec1de6bb593171418d4b6e2b240eca0370443335156e4fbe28784f212886b50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accounting for a stock dividend, the corporation shall transfer from retained earnings to the category of capital stock and additional paid-in capital an amount equal to the fair value of the additional shares issued. Unless this is done, the amount of earnings that the shareholder may believe to have been distributed to him or her will be left, except to the extent otherwise dictated by legal requirements, in retained earnings subject to possible further similar stock issuances or cash distributions. ##### [505-20-30-4](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:3e67e4470ea24f2294241bfe6573b5b00ad7dad32add65ae94aa201c2c352f61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting required in the preceding paragraph will likely result in the capitalization of retained earnings in an amount in excess of that called for by the laws of the state of incorporation; such laws generally require the capitalization only of the par value of the shares issued, or, in the case of shares without par value, an amount usually within the discretion of the board of directors. However, these legal requirements are, in effect, minimum requirements and do not prevent the capitalization of a larger amount per share. ##### [505-20-30-5](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:49d3a7ec3826ec4f3ac744004a8f28cba38d766fc3048a247489970a134caa42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In cases of closely held entities, it is presumed that the intimate knowledge of the corporations' affairs possessed by their shareholders would preclude any implications and possible shareholder belief as are referred to in paragraph [505-20-30-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-3). In such cases, there is no need to capitalize retained earnings other than to meet legal requirements. ##### [505-20-30-6](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:f3c7213fcb574bfe1321d87da451cb6810773cbaf866d63511866efa3483a160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the case of a stock split, there is no need to capitalize retained earnings, other than to the extent occasioned by legal requirements. #### Recipient's Accounting for a Stock Dividend or Stock Split ##### [505-20-30-7](https://asc.understandingaccounting.org/asc/505/20/#505-20-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:44.238Z to 2026-09-10T00:37:44.238Z Record version: sha256:f2d90bd3880a3056f2de2edf701ef30e3be2edab779f3ff23b77a37e28545807 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A shareholder's interest in the corporation remains unchanged by a stock dividend or stock split except as to the number of share units constituting such interest. Therefore, the cost of the shares previously held shall be allocated equitably to the total shares held after receipt of the stock dividend or stock split. When any shares are later disposed of, a gain or loss shall be determined on the basis of the adjusted cost per share. Source downloaded (UTC): 2026-09-10T00:37:47.525Z to 2026-09-10T00:37:47.525Z Record version: sha256:9ba683226aaa3c3bc3a864dbaeed51243fa434255ab6e4cff6068bc54acc99f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/20/#50-disclosure) SEC content: no ##### [505-20-50-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:47.525Z to 2026-09-10T00:37:47.525Z Record version: sha256:f0e06327fc9e8e5456ca0bffa22427acb58e74a18f0a5e494d441fb7bc33f9dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [505-20-25-2](https://asc.understandingaccounting.org/asc/505/20/#505-20-25-2) identifies a situation in which a [stock dividend](https://asc.understandingaccounting.org/glossary/s/#stock-dividend "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.") in form is a [stock split](https://asc.understandingaccounting.org/glossary/s/#stock-split "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.") in substance. 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. Source downloaded (UTC): 2026-09-10T00:37:51.385Z to 2026-09-10T00:37:51.385Z Record version: sha256:93e2baa7839273fec5beadf0455aa2f1420e813f3d14d9168796c6105acc4a76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/505/20/#65-transition-and-open-effective-date-information) SEC content: no ##### [505-20-65-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:51.385Z to 2026-09-10T00:37:51.385Z Record version: sha256:d964dedea21c3293b25ab3d15dc79bcd28c96e7f47a7f34efd65847401c5ff43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/01/2010 after the end of the transition period stated in Accounting Standards Update No. 2010-01, _Equity (Topic 505): Accounting for Distributions to Shareholders with Components of Stock and Cash_. Source downloaded (UTC): 2026-09-10T00:37:53.461Z to 2026-09-10T00:37:53.461Z Record version: sha256:78e8b06d01f9bf123ee387ff0039477e2e2266ed8320e916b83ef3e4e1368084 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/20/#sec-25-recognition) SEC content: yes #### Accounting for Dividends Declared by a Subsidiary After Balance Sheet Date ##### [505-20-S25-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-S25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:53.461Z to 2026-09-10T00:37:53.461Z Record version: sha256:0a943227cc7ce62a9d7f1035b3fa23aec17d2bd6bbd755f36334f3af3332a2d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [855-10-S99-1](https://asc.understandingaccounting.org/asc/855/10/#855-10-S99-1), SAB Topic 1.B, Question 3, for SEC Staff views on accounting for dividends declared by a subsidiary after the balance sheet date. #### Capital Structure Change After the Latest Balance Sheet but Before the Release of the Financial Statements ##### [505-20-S25-2](https://asc.understandingaccounting.org/asc/505/20/#505-20-S25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:53.461Z to 2026-09-10T00:37:53.461Z Record version: sha256:7d9d654ddc1f671e0018999eebe4e565392937d0ee1c174c34bcc90dce88271a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-4), SAB Topic 4.C, for SEC Staff views on accounting for a change in capital structure after the latest balance sheet but before the release of the financial statements. #### Issuance of "Free Distributions" By Japanese Companies ##### [505-20-S25-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-S25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:53.461Z to 2026-09-10T00:37:53.461Z Record version: sha256:a4286ef26bd82e143d7ad7d96b0af2026a703f1af507bec86c128b24bb9d1b6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-20-S99-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-S99-1), SAB Topic 1.D.2, for SEC Staff views on accounting for the issuance of "free distributions" of common stock by Japanese companies. Source downloaded (UTC): 2026-09-10T00:37:55.576Z to 2026-09-10T00:37:55.576Z Record version: sha256:945bfc404b77bf0a96a07c521c69df6e829b0415d86f0634613dc63556adf853 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/20/#sec-50-disclosure) SEC content: yes #### Accounting for Dividends Declared After Balance Sheet Date ##### [505-20-S50-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:55.576Z to 2026-09-10T00:37:55.576Z Record version: sha256:b0f612bde43f07326b7af0e8ab5b119f79e2fa984d070ee02c53a3e242c436cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [855-10-S99-1](https://asc.understandingaccounting.org/asc/855/10/#855-10-S99-1), SAB Topic 1.B.3, for SEC Staff views on disclosures pertaining to dividends declared after the balance sheet date. #### Capital Structure Change After the Latest Balance Sheet but Before the Release of the Financial Statements ##### [505-20-S50-2](https://asc.understandingaccounting.org/asc/505/20/#505-20-S50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:55.576Z to 2026-09-10T00:37:55.576Z Record version: sha256:e0885458015cba7e923dc426b4dcb744979b2666aac13f35d326895e507cf0a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-10-S99-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-S99-4), SAB Topic 4.C, for SEC Staff views on disclosures pertaining to a capital structure change after the latest balance sheet but before the release of the financial statements. #### Issuance of "Free Distributions" by Japanese Companies ##### [505-20-S50-3](https://asc.understandingaccounting.org/asc/505/20/#505-20-S50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:55.576Z to 2026-09-10T00:37:55.576Z Record version: sha256:79a10a4622baadd5e80ba96e93be0b0bd76b2d3643e65df03761e595de391264 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-20-S99-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-S99-1), SAB Topic 1.D.2, for SEC Staff views on disclosures pertaining to the issuance of "free distributions" by Japanese companies. Source downloaded (UTC): 2026-09-10T00:37:57.398Z to 2026-09-10T00:37:57.398Z Record version: sha256:6ebb5a45e6a690872a57c06efc6ba32673f737c23a74f95ec2cd2eea4c8ad924 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-20-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/505/20/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [505-20-S99-1](https://asc.understandingaccounting.org/asc/505/20/#505-20-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:37:57.398Z to 2026-09-10T00:37:57.398Z Record version: sha256:310a10abd4e816173c98a50245c8dd40357a6d25894685813569af5e5cf9d23c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 1.D.2, "Free Distributions" by Japanese Companies. - Facts: It is the general practice in Japan for corporations to issue "free distributions" of common stock to existing shareholders in conjunction with offerings of common stock so that such offerings may be made at less than market. These free distributions usually are from 5 to 10 percent of outstanding stock and are accounted for in accordance with provisions of the Commercial Code of Japan by a transfer of the par value of the stock distributed from paid-in capital to the common stock account. Similar distributions are sometimes made at times other than when offering new stock and are also designated "free distributions." U.S. accounting practice would require that the fair value of such shares, if issued by U.S. companies, be transferred from retained earnings to the appropriate capital accounts. - Question: Should the financial statements of Japanese corporations included in Commission filings which are stated to be prepared in accordance with U.S. GAAP be adjusted to account for stock distributions of less than 25 percent of outstanding stock by transferring the fair value of such stock from retained earnings to appropriate capital accounts? - Interpretive Response: If registrants and their independent accountants believe that the institutional and economic environment in Japan with respect to the registrant is sufficiently different that U.S. accounting principles for stock dividends should not apply to free distributions, the staff will not object to such distributions being accounted for at par value in accordance with Japanese practice. - If such financial statements are identified as being prepared in accordance with U.S. GAAP, then there should be footnote disclosure of the method being used which indicates that U.S. companies issuing shares in comparable amounts would be required to account for them as stock dividends, and including in such disclosure the fair value of any such shares issued during the year and the cumulative amount (either in an aggregate figure or a listing of the amounts by year) of the fair value of shares issued over time. 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. Source downloaded (UTC): 2026-09-10T00:38:34.178Z to 2026-09-10T00:39:12.879Z Record version: sha256:6004b228a38093aeab28a0c21130f6fe1a39948de7a420a3359265447ee0d818 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50: Equity — Equity-Based Payments to Non-Employees ### Machine-generated study aids ```json { "summary": "ASC 505-50 formerly governed the accounting for equity instruments (shares, options, warrants) issued to non-employees in exchange for goods or services, including measurement date, performance commitment, and counterparty-performance concepts. Every paragraph in the subtopic has been superseded — chiefly by ASU 2018-07 (Improvements to Nonemployee Share-Based Payment Accounting), with the share-based-payment-as-consideration-payable-to-a-customer paragraphs superseded earlier by ASU 2014-09 (Revenue from Contracts with Customers). As a result, the subtopic contains no operative guidance; nonemployee share-based payment awards are now accounted for under ASC 718.", "key_points": [ "Every paragraph of 505-50 (Sections 05, 10, 15, 25, 30, 35, 45, 50, and 55) has been superseded and carries no operative U.S. GAAP requirements.", "ASU 2018-07 superseded the bulk of the subtopic and moved nonemployee share-based payment awards issued for goods or services into ASC 718, aligning their measurement with employee awards.", "Paragraphs addressing share-based consideration payable to a customer (for example, 505-50-25-5, 30-8, 30-18, 30-19, 30-29, 35-13 through 35-16, 50-2, and 55-25 through 55-27) were superseded by ASU 2014-09 and are now covered by the revenue guidance in ASC 606.", "Under the superseded model, nonemployee awards were generally remeasured until a measurement date (performance completion or a performance commitment); that variable, mark-to-market approach no longer applies after ASU 2018-07.", "Because the guidance is fully superseded, references to 505-50 in older contracts, filings, or textbooks should be redirected to ASC 718 (and ASC 606 for customer consideration), subject to the transition provisions of ASU 2018-07." ], "categories": [ "Stock compensation", "Debt and equity", "Transition and effective dates", "Revenue" ], "audience_level": "intermediate", "student_note": "The only thing to know here is that 505-50 is an empty shell: ASU 2018-07 folded nonemployee share-based payments into ASC 718 and ASU 2014-09 moved share-based consideration payable to a customer into ASC 606. The common error is applying the old measurement-date/remeasurement model from legacy materials instead of ASC 718's grant-date fair value approach.", "related_topics": [ "718", "718-10", "606", "606-10", "505-10", "815-40" ], "key_concepts": [ "nonemployee share-based payment", "equity instruments issued for goods or services", "measurement date", "performance commitment", "superseded guidance", "consideration payable to a customer", "grant-date fair value" ] } ``` Source downloaded (UTC): 2026-09-10T00:38:34.178Z to 2026-09-10T00:38:34.178Z Record version: sha256:b9cd89a18c7363e7dd2b04bba8f0d8c530ed6acb8ce6028f61639e13db83d2fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/50/#00-status) SEC content: no ##### [505-50-00-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:34.178Z to 2026-09-10T00:38:34.178Z Record version: sha256:700692048387f0fbe774e19c97b56640fdae584cef2ca7d8de19ec6babf05931 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
ContractSupersededAccounting Standards Update No. 2018-0706/20/2018
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
Counterparty Performance ConditionsSupersededAccounting Standards Update No. 2018-0706/20/2018
Customer (1st def.)SupersededAccounting Standards Update No. 2018-0706/20/2018
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Employee (2nd def.)SupersededAccounting Standards Update No. 2018-0706/20/2018
Fair Value (1st def.)SupersededAccounting Standards Update No. 2018-0706/20/2018
Issued, Issuance, or Issuing of an Equity InstrumentSupersededAccounting Standards Update No. 2018-0706/20/2018
Issued, Issuance, or Issuing of an Equity InstrumentAddedAccounting Standards Update No. 2016-1912/14/2016
Market ConditionSupersededAccounting Standards Update No. 2018-0706/20/2018
Market ConditionAddedAccounting Standards Update No. 2014-0603/14/2014
Market ConditionsSupersededAccounting Standards Update No. 2014-0603/14/2014
Reload Feature and Reload OptionSupersededAccounting Standards Update No. 2018-0706/20/2018
Share-Based Payment TransactionsSupersededAccounting Standards Update No. 2018-0706/20/2018
Terms of a Share-Based Payment AwardSupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-05-1 through 05-9
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-05-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-05-2AAddedAccounting Standards Update No. 2014-0905/28/2014
505-50-05-3AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-05-4AmendedAccounting Standards Update No. 2014-0603/14/2014
505-50-05-5AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-10-1SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-15-1 through 15-3
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-15-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-15-2AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-25-1 through 25-4
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-25-6 through 25-10
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-25-2AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-25-5SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-30-1 through 30-7
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-30-1AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-30-2AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-30-3AmendedAccounting Standards Update No. 2014-0603/14/2014
505-50-30-8SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-30-9 through 30-17
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-30-9AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-30-10AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-30-18SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-30-19SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-30-20 through 30-28
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-30-22AmendedAccounting Standards Update No. 2014-0603/14/2014
505-50-30-29SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-30-30SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-30-31SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-35-1 through 35-12
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-35-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-35-1AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-35-3AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-35-4AmendedAccounting Standards Update No. 2014-0603/14/2014
505-50-35-13 through 35-16
SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-35-15AmendedAccounting Standards Update No. 2012-0410/01/2012
505-50-45-1SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-45-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-50-1SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-50-2SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-55-1 through 55-24
SupersededAccounting Standards Update No. 2018-0706/20/2018
505-50-55-2AmendedAccounting Standards Update No. 2016-1912/14/2016
505-50-55-11AmendedAccounting Standards Update No. 2014-0603/14/2014
505-50-55-17AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-55-18AmendedAccounting Standards Update No. 2014-0905/28/2014
505-50-55-25 through 55-27
SupersededAccounting Standards Update No. 2014-0905/28/2014
505-50-55-28 through 55-40
SupersededAccounting Standards Update No. 2018-0706/20/2018
Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:6c17b295e052f1adc5b73711e0f061ae614d0eacd497143b484648701b02b170 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/50/#05-overview-and-background) SEC content: no ##### [505-50-05-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:9a1776cccfc62b9c9ca898ef8ce8550a4fd0af4e0d75b559ab5a25b312212f0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:7936ab7239c95a4f08783d9f73c18e84709844dafd8e798b9645a8b461c8304e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-2A](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:e52cc8884dd8f8a85334f2c7532dc78958aefd0c5dd660dd009f1fc3aa6c9a18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-3](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:ea9724087f4268676ea97801b306069c8abf569cdbe3d9c79386f1496753e357 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-4](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:af6b13f41487a0667979175f868c740f2fbf62b2324c28bdb2977b05b8b65990 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-5](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:4f25f393a633c0f74dfb8842bcdd4246d44b489a3a6c7c1076a0a71be077ca72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-6](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:100bf5198c65a44219bdd1bf1716f46347d3dc5205cfd6a2154f52feb0022e88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-7](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:c5e15af0f34206f97ec47dfeb8a9d4817248b30426b56dc0445bad7b4e5d9edf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-8](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:a7195fc1cc8c5ab0993a05d52770da44e862f2e0c8cd2e53e86030ebca4c18d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-05-9](https://asc.understandingaccounting.org/asc/505/50/#505-50-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:37.020Z to 2026-09-10T00:38:37.020Z Record version: sha256:2e1c3a915c3ac492867a37bd9b29132a3f0baf2ee67db0838f38e1b99e2564d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). Source downloaded (UTC): 2026-09-10T00:38:38.857Z to 2026-09-10T00:38:38.857Z Record version: sha256:2005d7bb8fb5f388ec09bf60bd73b46a97645ec762867bf71b3d25097b70a851 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/505/50/#10-objectives) SEC content: no ##### [505-50-10-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:38.857Z to 2026-09-10T00:38:38.857Z Record version: sha256:3dd80aa58533000c8930f470bc4ed7de5a4bb212176efab24c622ead0c18b3ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). Source downloaded (UTC): 2026-09-10T00:38:42.780Z to 2026-09-10T00:38:42.780Z Record version: sha256:121fd1b551cf374a24f60e320d9aeca2d5eb4f446f637da910874a97617162f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/50/#15-scope-and-scope-exceptions) SEC content: no ##### [505-50-15-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:42.780Z to 2026-09-10T00:38:42.780Z Record version: sha256:e17f9f0894675c01dd60c6790d3a1b96c417b46fdf99be115cd25d1702a5b450 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-15-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:42.780Z to 2026-09-10T00:38:42.780Z Record version: sha256:226c04c8ce889cf7b1223cc3d44168d981207ad7681707b6f29d14a607a5dc83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-15-3](https://asc.understandingaccounting.org/asc/505/50/#505-50-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:42.780Z to 2026-09-10T00:38:42.780Z Record version: sha256:a3380f525f25ae18bcf08e90c8140a9dd2c0050c278b9b4e13c9239029929f1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). Source downloaded (UTC): 2026-09-10T00:38:46.123Z to 2026-09-10T00:38:46.123Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/505/50/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:1cb1a5f72003e8077436eba183f0eb7ea046bb9e447e2e7601ed4d6eccf42e85 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/50/#25-recognition) SEC content: no ##### [505-50-25-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:ca4d57b2b05a58c2abdf30f0f9ab298833f8be00fc3d5d2c41ab6706b7b34e79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:5633dc88c11f8e81a6378dcc8eab6af0a13a228ee00c959c94bf9a11cc50527a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-3](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:9da5e1f506e0483e5474604fb9ab94ba28e99b073ec2e09563f0e291ff80218f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-4](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:acfa0b3bd3e9d4cb69192a6236aa30bbfcc6ed72fe0978acdf9feb079fdabc20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-5](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:3ece9e1ee7a004eb2baa8394d72aa1a76980c4031f63bfbf3c51e9d5cb28aaa4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-25-6](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:9a0cebf30510fe6ba4d2e620960a0b070c3c1f22ef02326dfc3e33fb6cc6e855 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-7](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:ae12bfda01c89f2e1ef0bbe41f0463d9e66d462d21ac655358bd154a56d63bb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-8](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:72416a4b72d4de54576abccb5eff127043996f850e9f280755f729e8e7a24c2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-9](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:6e9565c585535ec6c937a6b553b65710e3ae43f88dab88ce2674c9219eb3864d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-25-10](https://asc.understandingaccounting.org/asc/505/50/#505-50-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:49.807Z to 2026-09-10T00:38:49.807Z Record version: sha256:f4674cb75b2feaf153810aec53a9021d1ddc700a5cbdc030eee0dad27de6af58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:2a4752b5e0b7955f0502ffe64e870ef703d1b457d9de892ec95531ff0b80ad2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/505/50/#30-initial-measurement) SEC content: no ##### [505-50-30-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:bd98d26bdac58a4be8d545ec838582c3762117dae1c2ad573233c83f085e7ef2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:067951d30e35f5835a4656b9ab99dca78a647c76485daff950e0e9b61d61d36f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-3](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:7d6819a14481c479a1e88ddd91b5fe7552c9d83927a12cd3f125b6c8096d1feb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-4](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:a23a217cbf13ed7a288e989effca38b3f0895efa1f7dca56c61b6af8f93bac8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-5](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:086e831f59d07c568ed725b60e887d329fbcdb78f45d0162524ab4d235f8e0b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-6](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:c2dbddc830af0a34667986a42487551f432f772bdcb77140ef312af8ddf96258 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-7](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:1c8cd3cb76706dd957fab05824005a6074e4a354fcad5ea4351b309f1ae970d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-8](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:b7d67ca7e79670abac59a9dd06b72108ff119d2bef9ad2176dbbcb700dfd78e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-30-9](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:bdc480841f444abdc02dcd9da4a038546f2a50788488095820067b051fd4c4db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-10](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:4da282283f2e1069707c7b6d9b227a079b01da24ab9a5f4399c96fb639d46a0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-11](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:a2d8ff1499f10f93decd8d9ca15d4ffb6b4f7253aafe2c49c5b3bd00b4bdfe37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-12](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:964474aade33da2f5fcab5b2e830962e5402638f890ef8a75f7ef7bc55923ba6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-13](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:65eaff4baa3f559c0dbe25fbb373a32a41c42bf71c4413bd175356d53cf2aa72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-14](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:680550aee8329eb001666153c6099b7c4ec92f1a2139bb7f3f83b54bf685c86c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-15](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:5ea98325de4de84086808988e951101453f56d4371fd5130ebc6d53b49e10454 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-16](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:c8b3aee69bce906aa06bbcda32c476ae277c4fabfbd0144aff7c4acd8e038e75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-17](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:c6a415615c4286a7c5b10d6dd9f8c60064d75380262a9a8d239964d20939fe79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-18](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:63fd6b2b088d82abd4e2f65feb63e8b22d33314aafd1c50820951c1046a97910 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-30-19](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:f4ac17421b630026dbc1fc0bcaba085242f80e320ede975510cae3d57057359d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-30-20](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:3351081034fe77d5b7be3f6a8da73e6aac73904b0fd53151a82d4a4f3f8e8329 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-21](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:2fb937d01a11a17221638e6ee1ece8c458cdb019ef8ab8199071173a1aba85d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-22](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:15dcf376633c527782d0022652407da5f1e5811d4a22b84180b65a0d50837445 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-23](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:31944d2fd7c11ca6e861e22d0d07f1d29db5c992d924f0a25cf8973d7d2e2bd6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-24](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:97f15fd64ade8f75caa69e48ccd840d7f96ce80c46c3ec51385bc7623335df58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-25](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:3298f768389447b10780fd4afb0fb7d4f08b12df59dd62b6e112fc6af42c0e89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-26](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:2c0f91baf4e878b69cbc07af288e54ae7a39bfc2d4f85905b9050de7ee6663bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-27](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:1a22c266f070e88861a40a58cf3c6e61714d36696dbce778aa17c2d3510db9ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-28](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:430669609370b1ba29a5863f46c4beb2c46d04f927d2e4b67c8b636a10674e93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-29](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:7d3281b3d5e810e72411b8c9c8e7c1d3d218123d72e90afc18c3a7c2133905b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-30-30](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:0b9f92a20aba2b050b5ede3fb809edbac385ae397ab9768cc6790c06b10618cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-30-31](https://asc.understandingaccounting.org/asc/505/50/#505-50-30-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:52.337Z to 2026-09-10T00:38:52.337Z Record version: sha256:42843d7fe597b02ea32959c57e2244ee438a29db3e6ac31714a4e512b41a042c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:7b48a3888481f6a058f6ff55e26b359423fef1a46f0096b21ca505bbb2dc9cfb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/505/50/#35-subsequent-measurement) SEC content: no ##### [505-50-35-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:4ce2b2ab07186021cc6e3c0f90445ced38aa9ee7b1a24a37916c815388fa02d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:6c86d87a0fbd4f4f7bb3fb3cfde8600d9568d01717932f3d8df4c29207afaf18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-3](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:f14e1011fba932ef66aa57ea906a30c2b46031359feabbec08483e11ae6aafe2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-4](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:afd58f869dd78fbe2777d420cbb2a4fea1cf942b5cac4b5930412ab2bb511a63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-5](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:218c980228a1c8c9c6e8b166ad58620963f05e554a8e2cf9688e0f17879241a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-6](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:6f7a0893e287e77736b92749ae904e254b25f2643a8830f75936de55133d414f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-7](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:def958ec6c152afea3b004cabbf188cac4c2ccb6d6c1e0fb406848d77388ed19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-8](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:444d971e32352fbae7eee011df6bfee849047f19ef3d26ae004636adfd2d8ff6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-9](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:2bfdcfd653ab14e1cadf5ef07f9f36c190f5b736d01c5f971f30a4e6baba7c5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-10](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:52616ec55004da2a4aa64811f50d4a7aa92cd7cd2aff5b9e263909a4e19ba273 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-11](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:9b75d42865f33db809c25bfc35f516df82c443967590fd12f8b4fa98916c3ccf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-12](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:1eb8463a444bcbac31c15b3b622e036205c027e51b1422e94fbb54de3aead692 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-35-13](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:7b12e97ce00ebbbf1abf113cb06977a3cf671da53c05f04c85774b6e375887cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-35-14](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:e60a83b2f359b773e33c33b7498ee6853648cacd66a60092d39a1af97857cd24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-35-15](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:c36c35406221e960510b967c5dbaedf15950ee06e7344f61e2e783510964976e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-35-16](https://asc.understandingaccounting.org/asc/505/50/#505-50-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:55.858Z to 2026-09-10T00:38:55.858Z Record version: sha256:d1a09c4b5a8e2dd4db72098bbdc314c3ac6a3e7ca94683868de6f40ce59ab9fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-10T00:38:58.678Z to 2026-09-10T00:38:58.678Z Record version: sha256:272f34b75892085b71ad1397b9f4d7238e3bb5441b266c82570d64a7998c1c06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/505/50/#45-other-presentation-matters) SEC content: no ##### [505-50-45-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:38:58.678Z to 2026-09-10T00:38:58.678Z Record version: sha256:8c53f682424823062f8fdf4267a0188ea8fc81552d1b5ea3a605b585781986c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). Source downloaded (UTC): 2026-09-10T00:39:02.431Z to 2026-09-10T00:39:02.431Z Record version: sha256:1cecaddaf31491b78db6079027d29c87daf1989e60da2ea4f8b295c498b0770a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/50/#50-disclosure) SEC content: no ##### [505-50-50-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:02.431Z to 2026-09-10T00:39:02.431Z Record version: sha256:b67c5c1b91698fa3edd8b89343fc0c29ba0428b85880f829aeab8252024ac383 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-50-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:02.431Z to 2026-09-10T00:39:02.431Z Record version: sha256:a8c2425e1e7f5901b45b1b84ad12fbb872b4aaa9364b04243ee211e27c64c098 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:d187328815f640b1f275dc9d6980f503835d48388f86677695784b83d7ff2096 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/505/50/#55-implementation-guidance-and-illustrations) SEC content: no ##### [505-50-55-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:cf7413b946d391cb730694211e868329f644727123a88cd777f0628bcb919d01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:e74f9cf09108e08d58cafdfd5ba8b7db718b95a6c647fc27e8c9553f19175e65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-3](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:22582fb9000e76e95644c2a707d356d08a2ff0d06cf73d1bd763cb16bd8015a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-4](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:263be10367446b39c02ade124c0a6e0cc069a27f9c5d142915c8ac190cf7a74c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-5](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:b260e85a3e4c976746bfd447a497effe475ec79f01a63a73aac95295a080fbc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-6](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:40d9d8406bafd2ebcd76709ca2af49fc35db3d728cc9f51d9b13e4f81548a004 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-7](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:7d838a2331db2a66d6e49aa41ea5315f80683cf1bbee34a2b702a1017d9cc366 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-8](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:e5d2e02baa9432c9f431e81ae0282fd7616e4d98fa10399c66568c4b7a2cef46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-9](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:33afe65681f29dfdcd7043a6de4c2aa1db17ee921d4188db7c02771021160ad3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-10](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:6949107c497addab605f9cdd1ffef226b167ead0675c6f2bae4a33b3c639e30a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-11](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:8482acd5524f3202122ad51dae12646682b895d316c38e992ef50542bdca1eb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-12](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:446a99f4b4e2e6a73553318801da72de0f26eb79b0b9a22fef1cb4aea0505326 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-13](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:fbfc4b434614e14f62915c4df8876fcf238f19d930ef77265bb4978c4b064941 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-14](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:98f909d0cdaf766ec50ccc3ef76cc190981612766f7e31b5bf9aa95b6e9f8fa0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-15](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:bc545d60ec84c3cb6f07f500da74b489a0f903f14ba4d01a3d1d4ae0065477f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-16](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:8de543c61c4572e172657674929ac5b193a5176fe5ab2ad49ad2703e98414839 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-17](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:3a4d546b51bbba408da0290cda1538a6780c790ffd8378d7f1686815b3c0bc60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-18](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:a8a6a740689c908b700478fc8a921595846e3e4fefeaf52dc26a1c81d8a0a18d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-19](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:62d052bb91b41d462bd3c0f4b7686ef625edae6b12a9f42fcdda4773e52561f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-20](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:704f739c21a8aa6ed738e3c35636185aa1be1b937393c88909d22996b568a7b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-21](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:3202329dfbd23bf017b61015fa17225ae000d92403505dd8456fae6d04c9b445 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-22](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:8c7b232cf71b5664c4d89f152b41a4da8bd92c61d05ef1b713fdf0b4aa6d0c48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-23](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:7de0843a4a9a55dd45c0e4d099a1ed53b295dd9c18b7fbd182a095343d079f5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-24](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:35d021570395f99d445bd6c8f4b785d8911f263a82c655e16feb3b439f93aaaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-25](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:14efd9190bc8874d4eacf0b178f169db092bc95841595db999a1385f5b8f2423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-55-26](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:229cf097bb9f7eb7b54897403b8ed2eab203c33934a4ca5ef485b18efdeb2254 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-55-27](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:f809f383527f70a9b45c24e6031c52adc6b837607a339a51a89d5ab96496399c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [505-50-55-28](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:0b4c994486968911f1f9f79d52245ba9335447d443509896a4fb88026e518564 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-29](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:059ed8a36e7589b10962767ecf7eee738cd8689c24ce16c576576c1b1d2683cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-30](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:4fb1c4808924a8625c7d83c88687c1c5d35c4707df07d6dfc37c87e5baff1487 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-31](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:3aef0a624e77f9c8b914281d05cde470961449a0b7363d8acc20ad4a2b275a97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-32](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:013f5ba7e3ecca06863ba81f44cf8764a22c494881e33e41a876d37713e07c72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-33](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:c67d4ac20a9e308deea1ca9a314690dafffeb5024836f194c73474f67f4ddca7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-34](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:34ad349538e6ea50fcdc4dedc5c251335c4c9407ba07bb800c2ce9ed937cda55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-35](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:d30451198b5b8d623e8fc1ecc74788282127920b9109a5eb268f8920465364ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-36](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:c8b9909f0f584f76a86bbb1654493de945211c634f111cdc72b8866bd48b2c0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-37](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-37) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:3caff119b7e5d0261f81632f92d6fae4f42054dd8bdd88084f5c4163d84aacea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-38](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-38) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:33272eeda14d29468ac4aa4f693c0c93de9817a0873bfc5ee95659170e9eacc3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-39](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-39) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:ee0a04248739c0c8330545d044e2af97f937684d2442621c34d1a5ce56e4276a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). ##### [505-50-55-40](https://asc.understandingaccounting.org/asc/505/50/#505-50-55-40) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:04.335Z to 2026-09-10T00:39:04.335Z Record version: sha256:66ee52cef5b642dc5fa4740ab615e0ccd0759f231f7b7ad048e28374ffb81368 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-07](https://asc.understandingaccounting.org/updates/asu-2018-07/). Source downloaded (UTC): 2026-09-10T00:39:06.586Z to 2026-09-10T00:39:06.586Z Record version: sha256:2e0930db32bfd99349aca024d91de3a49d1728cc77f6081448e0fe8967cb0413 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/50/#sec-00-status) SEC content: yes ##### [505-50-S00-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:06.586Z to 2026-09-10T00:39:06.586Z Record version: sha256:a6c4e8277fcdcb85697b6d0561f85339f9ecdf31180af7821ce9cf16402d7694 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
505-50-S25-1 through S25-3SupersededAccounting Standards Update No. 2023-0307/14/2023
505-50-S25-2AddedAccounting Standards Update No. 2009-0909/17/2009
505-50-S25-3AddedAccounting Standards Update No. 2010-0501/15/2010
505-50-S99-1SupersededAccounting Standards Update No. 2023-0307/14/2023
505-50-S99-1AmendedAccounting Standards Update No. 2010-0401/15/2010
505-50-S99-2SupersededAccounting Standards Update No. 2023-0307/14/2023
505-50-S99-2AddedAccounting Standards Update No. 2009-0909/17/2009
Source downloaded (UTC): 2026-09-10T00:39:08.732Z to 2026-09-10T00:39:08.732Z Record version: sha256:e1ba16fa2b17b5861b2b14d237ef0022df3da40cff8700b5c7073b85bafa8744 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/50/#sec-25-recognition) SEC content: yes ##### [505-50-S25-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-S25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:08.732Z to 2026-09-10T00:39:08.732Z Record version: sha256:75b68f9ca80f998401a7e13a4e795279dd026baa1cf3ac73d4ab0acd1d65a8af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2023-03.](https://asc.understandingaccounting.org/updates/asu-2023-03/) ##### [505-50-S25-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-S25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:08.732Z to 2026-09-10T00:39:08.732Z Record version: sha256:71414285d8b7d9944194892770cc8151c5b7e0abbaa4a11f3677a12042ec046a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2023-03.](https://asc.understandingaccounting.org/updates/asu-2023-03/) ##### [505-50-S25-3](https://asc.understandingaccounting.org/asc/505/50/#505-50-S25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:08.732Z to 2026-09-10T00:39:08.732Z Record version: sha256:db2341ddc40c0255fe169a2c974572710605100d846370a36fa67111d71597a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2023-03.](https://asc.understandingaccounting.org/updates/asu-2023-03/) Source downloaded (UTC): 2026-09-10T00:39:12.879Z to 2026-09-10T00:39:12.879Z Record version: sha256:e762d7575f851c53f26a069ac7215001fa68b3e1b88812f0192939c217975783 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-50-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/505/50/#sec-99-sec-materials) SEC content: yes ##### [505-50-S99-1](https://asc.understandingaccounting.org/asc/505/50/#505-50-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:12.879Z to 2026-09-10T00:39:12.879Z Record version: sha256:ab79622e24db686f57a659aa9aafe697b3d6429fc71a8d78561ce411ff67bbc9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2023-03.](https://asc.understandingaccounting.org/updates/asu-2023-03/) ##### [505-50-S99-2](https://asc.understandingaccounting.org/asc/505/50/#505-50-S99-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:12.879Z to 2026-09-10T00:39:12.879Z Record version: sha256:30c6fc92ef713fec5af5b0b62f57287f0e0cf4d6caebb7683a516baafe2697cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2023-03.](https://asc.understandingaccounting.org/updates/asu-2023-03/) Source downloaded (UTC): 2026-09-10T00:39:16.049Z to 2026-09-10T00:39:50.123Z Record version: sha256:b9e674f0a489e30c17fc3600cb65d4628a8d5940048a3b35c286bcd871313fb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60: Equity — Spinoffs and Reverse Spinoffs ### Machine-generated study aids ```json { "summary": "ASC 505-60 governs the pro rata distribution of nonmonetary assets that constitute a business to an entity's owners (a spinoff). Such distributions are recorded at the carrying (recorded) amount of the distributed business, reduced for any indicated impairment, and are never accounted for as a sale of the spinnee followed by a distribution of proceeds — even if the spun-off operations are sold immediately afterward. When the substance of the transaction differs from its legal form, the legal spinnee is treated as the accounting spinnor (reverse spinoff accounting).", "key_points": [ "The Subtopic applies only to distributions of nonmonetary assets to owners that constitute a business; distributions of nonmonetary assets that do not constitute a business are outside its scope (505-60-15-2 through 15-3).", "Per paragraph 845-10-30-10, as applied in 505-60-25-2, a spinoff of a wholly owned or consolidated subsidiary is recorded at the subsidiary's carrying value (after reduction for any indicated impairment of value), and the transaction is not accounted for as a sale of the accounting spinnee followed by a distribution of proceeds, regardless of an immediate post-spinoff sale.", "In a reverse spinoff, the legal spinnee is treated as the spinnor for accounting purposes (the accounting spinnor) because in substance the legal spinnor disposed of its own operations and continued the legal spinnee's operations (505-60-25-4 through 25-5).", "A presumption exists that a spinoff is accounted for based on its legal form (legal spinnor = accounting spinnor); that presumption may be overcome only by judgment based on all relevant facts and circumstances (505-60-25-7 through 25-8).", "The four indicators of reverse spinoff accounting — relative size (assets, revenues, earnings), relative fair value, retention of senior management, and length of time to be held (a concurrent plan of sale suggests that entity is the accounting spinnee) — are evaluated together, and no single indicator is presumptive or determinative (505-60-25-8(a) through (d)).", "The identification of the accounting spinnee matters for reporting: the accounting spinnee is reported as a discontinued operation by the accounting spinnor if it qualifies and meets the conditions in 205-20-45-1A through 45-1C (505-60-45-1).", "Compensation consequences of exchanging or modifying share options or other equity instruments in connection with an equity restructuring are addressed in Topic 718 (505-60-60-1)." ], "categories": [ "Debt and equity", "Derecognition", "Presentation", "Initial measurement" ], "audience_level": "intermediate", "student_note": "Exam traps: (1) no gain is recognized — the distributed business comes off the books at carrying value, even if the shareholders sell it the next day; and (2) the \"reverse\" label is not optional dressing — if the legal spinnee is bigger, more valuable, keeps senior management, and the legal spinnor is slated for sale, you must flip the accounting so the legal spinnor's operations are shown as disposed (often as a discontinued operation).", "related_topics": [ "845-10", "205-20", "718", "805", "810", "360-10" ], "key_concepts": [ "spinoff", "reverse spinoff", "accounting spinnor and spinnee", "nonmonetary distribution to owners", "carrying value recognition", "substance over legal form", "discontinued operations", "business definition" ] } ``` Source downloaded (UTC): 2026-09-10T00:39:16.049Z to 2026-09-10T00:39:16.049Z Record version: sha256:e00263b2abf7c9ceb3e9ad4921987a6c9f1ceb1927d7cf1539dca20993f24a82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/60/#00-status) SEC content: no ##### [505-60-00-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:16.049Z to 2026-09-10T00:39:16.049Z Record version: sha256:d6694da221629996ebef67c20dc4aeb9ccf1f0c7af632f51069a1baf4d9cbbc6 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
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
505-60-15-1AmendedAccounting Standards Update No. 2016-1912/14/2016
505-60-45-1AmendedAccounting Standards Update No. 2014-0804/10/2014
Source downloaded (UTC): 2026-09-10T00:39:19.800Z to 2026-09-10T00:39:19.800Z Record version: sha256:cfbbe59034d68820c302b215cf8339e358f069514781dc677557ac6db2422601 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/60/#05-overview-and-background) SEC content: no ##### [505-60-05-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:19.800Z to 2026-09-10T00:39:19.800Z Record version: sha256:383fc55bc1627c4d38f912b6946fa5b2d845e6a8487fe63993c8b2ae92063888 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance related to the distribution of nonmonetary assets that constitute a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") to owners of an entity in transactions commonly referred to as spinoffs. This Subtopic also addresses [spinoff](https://asc.understandingaccounting.org/glossary/s/#spinoff "The transfer of assets that constitute a business by an entity (the spinnor) into a new legal spun-off entity (the spinnee), followed by a distribution of the shares of the spinnee to its shareholders, without the surrender by the shareholders of any stock of the spinnor.") transactions in which the substance of the transaction may differ from the legal form, and provides guidance on how to determine such situations and their required accounting and reporting. ##### [505-60-05-2](https://asc.understandingaccounting.org/asc/505/60/#505-60-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:19.800Z to 2026-09-10T00:39:19.800Z Record version: sha256:1346198813ffa536b759a7ebf69344f43cec18f4b1a37ad332c767fb74fdaacb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may desire to reorganize its operations in response to its business needs. For example, an entity (the spinnor) may transfer assets into a new legal spun-off entity (the spinnee) and distribute the shares of the spinnee to its shareholders, without the surrender by the shareholders of any stock of the spinnor. Such a transaction is commonly referred to as a spinoff. An illustration of a spinoff is presented in Example 1 (see paragraph [505-60-55-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-1)). ##### [505-60-05-3](https://asc.understandingaccounting.org/asc/505/60/#505-60-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:19.800Z to 2026-09-10T00:39:19.800Z Record version: sha256:d8aa501658b5508060b406e4d70d6c6aad1eb043d556848331745a60ec984305 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A spinoff allows an entity to be reorganized in a manner that allows it to meet the needs of its owners. However, there may be other benefits as well. If the spinoff qualifies as a nontaxable reorganization, the distribution results in no taxable gain being recognized by either the spinnor or its shareholders. Additionally, if the spinnee is subsequently sold by the shareholders, the double taxation that would have occurred if an entity sold its subsidiary directly and distributed the proceeds to its shareholders is avoided. ##### [505-60-05-4](https://asc.understandingaccounting.org/asc/505/60/#505-60-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:19.800Z to 2026-09-10T00:39:19.800Z Record version: sha256:1af9be9d1e733da01adc4def7136b48e7ddcfbc05c3888c32752550c84b0ad4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In certain cases, the spinoff of a subsidiary to its shareholders is such that the legal form of the transaction does not match its substance. That is, in certain circumstances, the spinnee will be the continuing entity and the transaction will commonly be referred to as a [reverse spinoff](https://asc.understandingaccounting.org/glossary/r/#reverse-spinoff "A spinoff of a subsidiary to an entity's shareholders in which the legal form of the transaction does not match its substance such that the new legal spun-off entity (the spinnee) will be the continuing entity."). An entity needs to determine whether to account for a spinoff as a reverse spinoff based on the substance instead of the legal form of the transaction. An illustration of a reverse spinoff is presented in Example 2 (see paragraph [505-60-55-4](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-4)). Source downloaded (UTC): 2026-09-10T00:39:23.278Z to 2026-09-10T00:39:23.278Z Record version: sha256:e1c208332f099446d1537a5ee36edb2f34e01de8b1ae0a722c3574fd09e8ce84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/60/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [505-60-15-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:23.278Z to 2026-09-10T00:39:23.278Z Record version: sha256:d9b17fbf29ab7d8c4e47190dbecf0e8bca318c1a53df52568e7c694d904cbe60 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 ##### [505-60-15-2](https://asc.understandingaccounting.org/asc/505/60/#505-60-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:23.278Z to 2026-09-10T00:39:23.278Z Record version: sha256:3d7bc94e2867a063d48bc66adaef13fc900a38c6950299f78ebaa9f98699d6d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all transactions involving the distribution of nonmonetary assets that constitute a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") to owners of an entity. ##### [505-60-15-3](https://asc.understandingaccounting.org/asc/505/60/#505-60-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:23.278Z to 2026-09-10T00:39:23.278Z Record version: sha256:39284d628c35f80ca7c2c6c9f3e86bb23970863352cfbfeb24063f645a664755 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to distributions of nonmonetary assets that do not constitute a business. Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:9b9afd3a1d86961f89908bd494298bb522d982b850f949368e73b061ed4bb625 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/505/60/#25-recognition) SEC content: no ##### [505-60-25-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:5659b2ee09d702e213929d8fae9120b2f11d9b41417c3ead24f8abae331ad960 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section identifies the required accounting for a [spinoff](https://asc.understandingaccounting.org/glossary/s/#spinoff "The transfer of assets that constitute a business by an entity (the spinnor) into a new legal spun-off entity (the spinnee), followed by a distribution of the shares of the spinnee to its shareholders, without the surrender by the shareholders of any stock of the spinnor.") transaction. It also provides guidance on when a spinoff shall be treated as a [reverse spinoff](https://asc.understandingaccounting.org/glossary/r/#reverse-spinoff "A spinoff of a subsidiary to an entity's shareholders in which the legal form of the transaction does not match its substance such that the new legal spun-off entity (the spinnee) will be the continuing entity.") and the accounting required by that determination. #### Required Accounting for Spinoffs, Including Reverse Spinoffs ##### [505-60-25-2](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:b1bda9ba18ccaabf8c8b1fba462acfec3473906ca45e4d83e3d99b2b0f90976d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [845-10-30-10](https://asc.understandingaccounting.org/asc/845/10/#845-10-30-10) requires that the accounting for the distribution of nonmonetary assets to owners of an entity in a spinoff be based on the recorded amount (after reduction, if appropriate, for an indicated impairment of value). As specified in Section 505-60-15, a further requirement of the nonmonetary assets being distributed is that they constitute a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business."). Accordingly, an entity's distribution of the shares of a wholly owned or consolidated subsidiary to its shareholders shall be recorded based on the carrying value of the subsidiary. Regardless of whether the spun-off operations will be sold immediately after the spinoff, the transaction shall not be accounted for as a sale of the accounting spinnee followed by a distribution of the proceeds. ##### [505-60-25-3](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:ec3711664f542d7a1c64ad4facedd8926d5a9ce4a7a9405f481e44fe31debc73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1 (paragraph [505-60-55-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-1)) for an illustration of a spinoff transaction. ##### [505-60-25-4](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:521b9f6c733e142f77afe3c237ce8e3dc2f9b920e6b25460dabd90a04d1869e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In a reverse spinoff, the legal spinnee shall be treated as though it were the spinnor for accounting purposes (accounting spinnor). This is referred to as reverse spinoff accounting. ##### [505-60-25-5](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:d98f5fa290555774020754fe3758d98bfb1dca0c07d19a8063c3fdb249414105 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accounting for a reverse spinoff transaction based on its legal form would present the legal spinnor as the accounting spinnor and the legal spinnee as the accounting spinnee. However, in substance, the legal spinnor has disposed of its own operations and continued the operations of the legal spinnee. The legal form of the spinoff may have been driven primarily by tax planning strategies. Accounting for the transaction based on its substance depicts the legal spinnee as the accounting spinnor and the legal spinnor as the accounting spinnee. ##### [505-60-25-6](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:79f4e08172ce5c63ab184d55a8f737e25fe1fecf93b12492e24a6978c7856c86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 2 (paragraph [505-60-55-4](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-4)) for an illustration of a reverse spinoff transaction. ##### [505-60-25-7](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:3b8712231d0a7d9bfdc0c3284b1817cd53f7e52f0888b29944b7a8857db1b42a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Reverse spinoff accounting is appropriate if treatment of the legal spinnee as the accounting spinnor results in the most accurate depiction of the substance of the transaction for shareholders and other users of the financial statements. The determination of whether reverse spinoff accounting is appropriate is a matter of judgment that depends on an evaluation of all relevant facts and circumstances. The following paragraph provides guidance on making the required determination. #### Determining the Accounting Spinnor and Spinnee ##### [505-60-25-8](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:28.173Z to 2026-09-10T00:39:28.173Z Record version: sha256:80407ca229ef601e80c90028850bda6fd53f7e2a460973f6cac206b808b50c55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In order to determine the required accounting and reporting in a spinoff transaction, an entity needs to determine which party is the accounting spinnor and which is the accounting spinnee. In determining whether reverse spinoff accounting is appropriate, a presumption shall exist that a spinoff be accounted for based on its legal form, in other words, that the legal spinnor is also the accounting spinnor. However, that presumption may be overcome. An evaluation of the following indicators shall be considered in that regard. Nevertheless, no one indicator shall be considered presumptive or determinative. The following are indicators that a spinoff should be accounted for as a reverse spinoff: 1. a The size of the legal spinnor and the legal spinnee. All other factors being equal, in a reverse spinoff, the accounting spinnor (legal spinnee) is larger than the accounting spinnee (legal spinnor). The determination of which entity is larger is based on a comparison of the assets, revenues, and earnings of the two entities. There are no established bright lines that shall be used to determine which entity is the larger of the two. 2. b The fair value of the legal spinnor and the legal spinnee. All other factors being equal, in a reverse spinoff, the fair value of the accounting spinnor (legal spinnee) is greater than that of the accounting spinnee (legal spinnor). 3. c Senior management. All other factors being equal, in a reverse spinoff, the accounting spinnor (legal spinnee) retains the senior management of the formerly combined entity. Senior management generally consists of the chairman of the board, chief executive officer, chief operating officer, chief financial officer, and those divisional heads reporting directly to them, or the executive committee if one exists. 4. d Length of time to be held. All other factors being equal, in a reverse spinoff, the accounting spinnor (legal spinnee) is held for a longer period than the accounting spinnee (legal spinnor). A proposed or approved plan of sale for one of the separate entities concurrent with the spinoff may identify that entity as the accounting spinnee. See Examples 3 and 4 (paragraphs [505-60-55-7 through 55-12](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-7) ) for illustrations of the determination of the accounting spinnor and spinnee. Source downloaded (UTC): 2026-09-10T00:39:30.567Z to 2026-09-10T00:39:30.567Z Record version: sha256:573bcf10c376625407dc0419e2e2f21fc3337e89901140709e8fb829264273e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/505/60/#45-other-presentation-matters) SEC content: no ##### [505-60-45-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:30.567Z to 2026-09-10T00:39:30.567Z Record version: sha256:d78a61266d494377c5d0629c2b56ed0737983e4291ce064ec1286e50c63db1ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of the accounting spinnor and spinnee under the requirements of paragraph [505-60-25-8](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-8) may have significant implications with regard to the reporting of discontinued operations in accordance with Subtopic 205-20. That is, the accounting spinnee shall be reported as a discontinued operation by the accounting spinnor if the spinnee is a discontinued operation and meets the conditions for such reporting contained in paragraphs [205-20-45-1A through 45-1C](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1A) . Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:194616d4cba45b830e917e533799068b717efad6917014efdf0762edee919c43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/505/60/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [505-60-55-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:579c3fba49bef4e7c430b76babff77a53881e24deabebf32de2bbfeda026ccf7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example presents an illustration of a [spinoff](https://asc.understandingaccounting.org/glossary/s/#spinoff "The transfer of assets that constitute a business by an entity (the spinnor) into a new legal spun-off entity (the spinnee), followed by a distribution of the shares of the spinnee to its shareholders, without the surrender by the shareholders of any stock of the spinnor."). ##### [505-60-55-2](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:52cf4ef5b3854029e701c9617e956561c233864437db62d17c3470ca61745f4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Big Company owns and operates a mall and a retail store that occupies the anchor store position in that mall. The mall and the store are managed by two separate divisions. The shareholders of Big Company would like to split Big Company into two entities so that each can focus on its own operations. To achieve this, Big Company transfers the mall's assets and operations into a newly created subsidiary, Mall Company, and distributes the shares of Mall Company to its shareholders on a pro rata basis in a spinoff. ##### [505-60-55-3](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:57b77dea75893ca7495648ccf1db904032f6b7af4defb5cbefd8b002bd1d4ca5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [505-60-25-2](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-2) provides guidance on the accounting for a spinoff. ##### [505-60-55-4](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:e90ba16d58184f70b409ce9df82c28f4380d618ff929faeef549fed379b21c6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example presents an illustration of a [reverse spinoff](https://asc.understandingaccounting.org/glossary/r/#reverse-spinoff "A spinoff of a subsidiary to an entity's shareholders in which the legal form of the transaction does not match its substance such that the new legal spun-off entity (the spinnee) will be the continuing entity."). ##### [505-60-55-5](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:faa33c01898f92e4826120e03a1e4be1c9a5dd7910e2572547937821fe4a9316 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Snack Food Company owns two subsidiaries—Ice Cream Subsidiary and Snack Subsidiary. Ice Cream Subsidiary is significantly larger and more profitable than Snack Subsidiary. The shareholders of Snack Food Company would like to continue the ice cream operations and dispose of the snack food operations. To facilitate this, Snack Food Company distributes the shares of Ice Cream Subsidiary to the shareholders thereby creating Ice Cream Company. The shareholders are then able to dispose of the operations of Snack Food Company (now solely comprising Snack Subsidiary operations) by selling the shares directly to a third party and, at the same time, retain ownership of the Ice Cream Company. ##### [505-60-55-6](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:63395f323d0f69865c33f49b13a2d40f4c86501dc2aaeb5a94ba70102c3c70d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [505-60-25-4 through 25-7](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-4) provide guidance on the accounting for a reverse spinoff. ##### [505-60-55-7](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:e73785dcdae31ad048448623024d23a419c9d5a1b40fc6613e7dcc80766ed249 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example demonstrates the application of the requirements in paragraph [505-60-25-8](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-8) to identify the accounting spinnor and spinnee, which may differ from the legal spinnor and spinnee. This Example has the following assumptions: 1. a Retail Company, a retail store chain, has a wholly owned restaurant subsidiary. The retail and restaurant operations are operated independently with a small executive management team overseeing both. Because the two have unrelated operations, the shareholders believe that the two operations should be separated by way of a spinoff. They believe that this will allow those separate entities to pursue opportunities in their respective industries and maximize their individual value. 2. b In order to accomplish the spinoff, Retail Company creates a new legal entity, Restaurant Company, into which the assets and operations of the restaurant subsidiary are transferred. The shares of Restaurant Company are then distributed to the shareholders of Retail Company on a pro rata basis. 3. c The executive management team of Retail Company will be divided between the two entities. A comparison of the two entities is as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-D33BABC8-44AE-4379-83D2-3839497EDAA5-low.gif) (In 000s) Assets Revenues Net Income Fair Value Retail $500 $410 $150 $675 Restaurant $100 $75 $21 $170 ##### [505-60-55-8](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:9108962afcaa3161fb7128d9c105c45e7659f8f2915e3dea0fd29310dcf65dc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Based on an analysis of the indicators contained in paragraph [505-60-25-8](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-8), the spinoff should be accounted for in accordance with its legal form. That is, the transaction should not be accounted for as a reverse spinoff. Retail Company should be designated as the accounting spinnor based on the first two of the following indicators: 1. a Retail Company has substantially larger operations than Restaurant Company. 2. b The fair value of Retail Company is greater than Restaurant Company. 3. c The management team is allocated between the two operations. 4. d There are no planned or likely disposals of either Retail Company or Restaurant Company. ##### [505-60-55-9](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:8825711e9141f248c2d2070d8b5c5c50db00b5dd07d90c052bd4ee1d19c66185 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The designation of Retail Company as the accounting spinnor will provide the most accurate depiction of the transaction to shareholders and other users of the financial statements because, in substance, Retail Company has spun off its Restaurant Company into a separate entity. ##### [505-60-55-10](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:e6a1d78a5d00b252c67152fbb1cdb955143c05d708457f2d13ed125a2d2df52a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example demonstrates the application of the requirements in paragraph [505-60-25-8](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-8) to identify the accounting spinnor and spinnee, which may differ from the legal spinnor and spinnee. This Example has the following assumptions: 1. a Retail Company, a retail store chain, has a wholly owned restaurant subsidiary. The retail and restaurant operations are operated independently, with a small executive management team overseeing both. While the restaurant subsidiary has grown rapidly, the retail operations have deteriorated steadily due to increased competition. The shareholders believe that the two operations should be separated by way of a spinoff. Management intends to dispose of the retail operations. 2. b In order to accomplish the spinoff, Retail Company creates a new legal entity, Restaurant Company, into which the assets and operations of the restaurant subsidiary are transferred. The shares of Restaurant Company are then distributed to the shareholders of Retail Company on a pro rata basis. 3. c The executive management team of the combined entity will be assigned primarily to Restaurant Company, as the intent is to dispose of Retail Company (now solely comprising the retail operations). A comparison of certain statistics of the two entities is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-972753C7-3BE8-473A-8B7D-B1DA5EC25157-low.gif) (In 000s) Assets Revenues Net Income Fair Value Retail $300 $210 $35 $375 Restaurant $600 $450 $150 $700 ##### [505-60-55-11](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:ea88e252089247f990155f7ecb42b53f6159374608b636bf1129e1d70e8d9ba5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Based on an analysis of the indicators contained in paragraph [505-60-25-8](https://asc.understandingaccounting.org/asc/505/60/#505-60-25-8), the spinoff should be accounted for as a reverse spinoff. Restaurant Company, although the legal spinnee, should be designated as the accounting spinnor based on the following: 1. a Restaurant Company has substantially larger operations than Retail Company. 2. b The fair value of Restaurant Company is greater than that of Retail Company. 3. c The management team is primarily assigned to Restaurant Company. 4. d Management intends to dispose of Retail Company upon finalizing the spinoff. ##### [505-60-55-12](https://asc.understandingaccounting.org/asc/505/60/#505-60-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:33.301Z to 2026-09-10T00:39:33.301Z Record version: sha256:e8817c875fbc10d4cff8d9aa3d42ad57a7d6c86547c0f6b0a0d7542c1040e203 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The designation of Restaurant Company as the accounting spinnor will provide the most accurate depiction of the transaction to shareholders and other users of the financial statements, as, in substance, Retail Company has disposed of its retail operations and continued its restaurant operations. Source downloaded (UTC): 2026-09-10T00:39:35.416Z to 2026-09-10T00:39:35.416Z Record version: sha256:80619ecb7a3695377e6d2aea34367cbb74b98804e15f591088866eeab51bdcea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/505/60/#60-relationships) SEC content: no #### Compensation—Stock Compensation ##### [505-60-60-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:35.416Z to 2026-09-10T00:39:35.416Z Record version: sha256:617b2bba43a66f79ceb88ed887c9abde330e659b3df89b5695d0cf94817a3ccf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For compensation-related consequences of exchanges of share options or other equity instruments or changes to their terms in conjunction with an equity restructuring, see Topic 718. Source downloaded (UTC): 2026-09-10T00:39:42.689Z to 2026-09-10T00:39:42.689Z Record version: sha256:d9f139ec199b182bf0ba7aabc47485e935ef8fc28b3fba281b4674024da2f0b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/60/#sec-00-status) SEC content: yes ##### [505-60-S00-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:42.689Z to 2026-09-10T00:39:42.689Z Record version: sha256:b885df9bdc20afde9a7db94effed4bcd79ba5d47403ba7a0a3dde22a4ddb0b16 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
505-60-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
Source downloaded (UTC): 2026-09-10T00:39:46.673Z to 2026-09-10T00:39:46.673Z Record version: sha256:f3d73fc55ced3e1f672570578531814f1c08863c762b68b576794a74ed4cf7f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/505/60/#sec-45-other-presentation-matters) SEC content: yes #### Accounting for the Spinoff of a Subsidiary ##### [505-60-S45-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-S45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:46.673Z to 2026-09-10T00:39:46.673Z Record version: sha256:a3bad03935937a833b38bdee2ef026d9b8fb33303965c3e8f1db2f443adbacbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [505-60-S99-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-S99-1), SAB Topic 5.Z.7, for SEC Staff views on whether a spinoff transaction can be reflected as a change in the reporting entity. Source downloaded (UTC): 2026-09-10T00:39:50.123Z to 2026-09-10T00:39:50.123Z Record version: sha256:de0ec0b79dec54a7866fef3e13c9edd348597fcc0097b4ebce3dd87d2b57599b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-60-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/505/60/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [505-60-S99-1](https://asc.understandingaccounting.org/asc/505/60/#505-60-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:50.123Z to 2026-09-10T00:39:50.123Z Record version: sha256:277f995cb820c191a85a822ed0456796fb3768e4f1400e0bdf4b787dc5075933 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 5.Z.7, Accounting for the Spin-off of a Subsidiary. - Facts: A Company disposes of a business through the distribution of a subsidiary's stock to the Company's shareholders on a pro rata basis in a transaction that is referred to as a spin-off. - Question: May the Company elect to characterize the spin-off transaction as resulting in a change in the reporting entity and restate its historical financial statements as if the Company never had an investment in the subsidiary, in the manner specified by FASB ASC Topic 250, Accounting Changes and Error Corrections? - Interpretive Response: Not ordinarily. If the Company was required to file periodic reports under the Exchange Act within one year prior to the spin-off, the staff believes the Company should reflect the disposition in conformity with FASB ASC Topic 360. This presentation most fairly and completely depicts for investors the effects of the previous and current organization of the Company. However, in limited circumstances involving the initial registration of a company under the Exchange Act or Securities Act, the staff has not objected to financial statements that retroactively reflect the reorganization of the business as a change in the reporting entity if the spin-off transaction occurs prior to effectiveness of the registration statement. This presentation may be acceptable in an initial registration if the Company and the subsidiary are in dissimilar businesses, have been managed and financed historically as if they were autonomous, have no more than incidental common facilities and costs, will be operated and financed autonomously after the spin-off, and will not have material financial commitments, guarantees, or contingent liabilities to each other after the spin-off. This exception to the prohibition against retroactive omission of the subsidiary is intended for companies that have not distributed widely financial statements that include the spun-off subsidiary. Also, dissimilarity contemplates substantially greater differences in the nature of the businesses than those that would ordinarily distinguish reportable segments as defined by FASB ASC paragraph [280-10-50-10](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-10) (Segment Reporting Topic). Source downloaded (UTC): 2026-09-10T00:39:53.653Z to 2026-09-10T00:40:09.039Z Record version: sha256:4bff908f152057941a05e78ad92d2dc643cde0a140f60c7a429c8f58c59849c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-905: Equity — Agriculture ### Machine-generated study aids ```json { "summary": "This Subtopic governs how entities in the agricultural industry — principally agricultural cooperatives — classify and present equity. Its core rule is that cooperative earnings are split between patronage source earnings (from transactions with or for patrons) and nonpatronage earnings, and that allocated equities such as retained patronage allocations and per-unit retains are presented as equity when they have no fixed maturity date and are subordinated to all debt. Unallocated nonpatronage earnings are classified as retained earnings, and allocated equities become current liabilities only when the board formally acts to revolve them.", "key_points": [ "Cooperative earnings are classified as either patronage source earnings (excess of revenues over costs from transactions for or with patrons) or nonpatronage earnings from investments, nonpatronage rentals, and nonpatronage sales or purchases (505-905-45-1).", "Cooperative equity arises from member and nonmember investments and patronage allocations, and may also include unallocated retained earnings from after-tax nonpatronage earnings (505-905-45-2).", "The two most common forms of allocated patronage equities are retained patronage allocations (e.g., qualified or nonqualified written notices of allocation) and per-unit retains withheld from payments to patrons for raw product deliveries without regard to earnings (505-905-45-3).", "Retained patronage allocations and per-unit retains shall be treated as equity if they have no fixed maturity dates and are subordinated to all debt instruments, with disclosure of face value, dividend rate, negotiability, subordination agreements, and any revolving or retirement plan (505-905-45-4).", "Allocated equities that are revolved over time shall not be classified as current liabilities until the board of directors has formally acted to revolve them (505-905-45-5).", "Nonpatronage earnings that are not allocated shall be classified as retained earnings in the equity section; a cooperative may also elect not to allocate patronage earnings or losses (505-905-45-6).", "Cooperatives may issue common stock (often to establish voting rights) and preferred stock to members and nonmembers or as a form of earnings distribution; preferred dividends are tax deductible in limited amounts by exempt cooperatives but not by nonexempt cooperatives (505-905-45-7)." ], "categories": [ "Presentation", "Debt and equity", "Industry-specific", "Disclosure" ], "audience_level": "intermediate", "student_note": "The exam trap is the equity-versus-liability line: patronage allocations and per-unit retains look like amounts owed to patrons, but they stay in equity unless they have fixed maturities or are not subordinated to all debt — and they become current liabilities only upon formal board action to revolve them.", "related_topics": [ "905-10", "505-10", "480-10", "905-705", "905-310" ], "key_concepts": [ "agricultural cooperative", "patronage source earnings", "nonpatronage earnings", "allocated equities", "retained patronage allocations", "per-unit retains", "revolving of equities", "subordination to debt" ] } ``` Source downloaded (UTC): 2026-09-10T00:39:53.653Z to 2026-09-10T00:39:53.653Z Record version: sha256:72f21efd8158fc9fe11fcdb84b9b277a1914b16e0af90e0b02b4ef14105d34e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-905-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/905/#00-status) SEC content: no ##### [505-905-00-1](https://asc.understandingaccounting.org/asc/505/905/#505-905-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:53.653Z to 2026-09-10T00:39:53.653Z Record version: sha256:37e011ce1b59d736233baef4b443a6752d4155e976e7e862e92958155d2d99b6 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
Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
CooperativesSupersededAccounting Standards Update No. 2014-0603/14/2014
Member of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
Nonmember of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
PatronsAmendedAccounting Standards Update No. 2014-0603/14/2014
Written Notice of AllocationAddedAccounting Standards Update No. 2014-0603/14/2014
905-505-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-505-05-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-505-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-505-45-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-505-45-3AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T00:39:56.683Z to 2026-09-10T00:39:56.683Z Record version: sha256:0cb6f7af6f43f3281c15b8178dcb043df72d389b05c2204e6c3f08184b2bf6e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-905-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/905/#05-overview-and-background) SEC content: no ##### [505-905-05-1](https://asc.understandingaccounting.org/asc/505/905/#505-905-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:56.683Z to 2026-09-10T00:39:56.683Z Record version: sha256:d380099016ac22ff87e04c245dfe4e70420596d7760ae72a9185e4c910a951d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses accounting for equity by entities in the agricultural industry. The guidance for accounting for [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.") is presented in the Cooperatives Subsections. ### Cooperatives ##### [505-905-05-2](https://asc.understandingaccounting.org/asc/505/905/#505-905-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:56.683Z to 2026-09-10T00:39:56.683Z Record version: sha256:874082c8e7fafcd12155da9ff07dea1c26f83f1222bb052f9ec0d7516c3d082f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives Subsections address accounting for equity by cooperatives in the agricultural industry. Source downloaded (UTC): 2026-09-10T00:39:59.932Z to 2026-09-10T00:39:59.932Z Record version: sha256:83a4ff8f88328d0098c08ffe112cef11855a63da9473cd5b49e836b02ef93220 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-905-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/905/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [505-905-15-1](https://asc.understandingaccounting.org/asc/505/905/#505-905-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:59.932Z to 2026-09-10T00:39:59.932Z Record version: sha256:1aee87064e40a646cb493e5ea8966eb748bfe7644b2ad4a8c4b62b81a59edccc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. ### Cooperatives ##### [505-905-15-2](https://asc.understandingaccounting.org/asc/505/905/#505-905-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:39:59.932Z to 2026-09-10T00:39:59.932Z Record version: sha256:92a3e0de0c81cf941f27e37aa6dc399bfd38bc5ecd29e7cbd086b3cc9802af9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Cooperatives Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:5a89732c190dc5cbd047b43637afbbeaee30f8911b0bc3413a0e7b07135ca80f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-905-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/505/905/#45-other-presentation-matters) SEC content: no ### Cooperatives ##### [505-905-45-1](https://asc.understandingaccounting.org/asc/505/905/#505-905-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:6a102bc526022b0c25c18da12e4233e2d00262a81fedb44d371adf9e1340929f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally, the earnings of [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.") are classified as either [patronage](https://asc.understandingaccounting.org/glossary/p/#patronage "The amount of business done with a cooperative by one of its patrons. Patronage is measured by either the quantity or value of commodities received from patrons by a marketing cooperative and the quantity or value of the goods and services sold to patrons by a supply cooperative.") or nonpatronage. The excess of revenues over costs resulting from transactions for or with [patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") shall be classified as patronage source earnings. Nonpatronage earnings result from transactions other than those with or for patrons. Examples are nonpatronage income from investments in securities, rental income from nonpatronage activities, and income earned on sales or purchases made on a nonpatronage basis. ##### [505-905-45-2](https://asc.understandingaccounting.org/asc/505/905/#505-905-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:de8fc8c621b9f63ea158f1af89f235f2feb01994ef6dfee72425a588081e1b4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The composition of the equity section of a cooperative's balance sheet distinguishes it from other balance sheets. Generally, its equities arise from investments by members and nonmembers and from patronage allocations. In addition, cooperatives may accumulate unallocated retained earnings arising from after-tax earnings on nonpatronage business. ##### [505-905-45-3](https://asc.understandingaccounting.org/asc/505/905/#505-905-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:5d4f9f802d85eea8008bdbd4a27cca9debc73e27c8d4d39d09528743d5639798 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Various forms of allocated equities arising from patronage are used by cooperatives. Two of the most commonly used forms are the following: 1. a Retained patronage allocations. Retaining [patronage earnings](https://asc.understandingaccounting.org/glossary/p/#patronage-earnings "The excess of a cooperative's revenues over its costs arising from transactions done with or for its patrons. Generally a significant portion of those earnings is allocated to the cooperative's patrons in the form of cash, allocated equities, or both.") through methods such as the issuance of qualified or nonqualified [written notices of allocation](https://asc.understandingaccounting.org/glossary/w/#written-notice-of-allocation "Any capital stock, revolving fund certificate, retain certificate, certificate of indebtedness, letter of advice, or other written notice to the recipient that states the dollar amount allocated to the patron by the cooperative and the portion that constitutes a patronage dividend.") is a major form of financing by cooperatives. 2. b Per-unit [retains](https://asc.understandingaccounting.org/glossary/r/#retains "Amounts determined on a per-unit basis or as a percentage of patronage earnings that are withheld by cooperatives from distributions and allocated to patrons' capital accounts."). Per-unit retains are used in marketing cooperatives in accordance with debt agreements, bylaws, or board of directors' authorizations. These amounts are determined without regard to earnings and may be based on a rate per ton or on a percentage of the dollar amount of raw product delivered. Amounts are withheld from payments to patrons for deliveries of raw products and are credited to the account of each [patron](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative."). ##### [505-905-45-4](https://asc.understandingaccounting.org/asc/505/905/#505-905-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:4bf8ca4b52ff61a26a5c262c73b1bea6505ab55701b1970bf27f531a7780fbee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the retained patronage allocations and per-unit retains have no fixed maturity dates and are subordinated to all debt instruments, they shall be treated as equity with appropriate disclosure of face value, dividend rate, negotiability, subordination agreements, and any revolving or retirement plan. ##### [505-905-45-5](https://asc.understandingaccounting.org/asc/505/905/#505-905-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:30d8c4ed8322c0efc12d67e30ab4a2c2989be9734a305925a266437cfc8bd90c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Allocated equities are usually paid, or revolved, over a number of years. The timing may be specified in the cooperative's bylaws, but it is usually at the discretion of its board of directors. The amounts shall not be classified as current liabilities until the board has formally acted to revolve the equities. ##### [505-905-45-6](https://asc.understandingaccounting.org/asc/505/905/#505-905-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:c9187003d34583ed66389127ed9a69cdf23b59ee4805ecf3f04131f4cada6161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain transactions of cooperatives may result in unallocated equities. For example, cooperatives may derive earnings from nonpatronage business and account for these earnings as other entities do. Nonpatronage earnings are frequently not allocated and shall be classified as retained earnings in the equity section. In addition, a cooperative may elect at times not to allocate patronage earnings or losses. ##### [505-905-45-7](https://asc.understandingaccounting.org/asc/505/905/#505-905-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:06.141Z to 2026-09-10T00:40:06.141Z Record version: sha256:b36431f254e880059cbc891f5d8004377338422ce98aa01361dd9b8a21bfede3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to allocated equities, cooperatives may issue common and preferred stock. Common stock is often issued to establish members' voting rights, whereas preferred stock may be sold to members and nonmembers on a nonpatronage basis. Cooperatives may also issue preferred stock as a form of earnings distribution. Limited amounts of dividends on preferred stock are tax deductible by exempt cooperatives, but they are not tax deductible by nonexempt cooperatives. Source downloaded (UTC): 2026-09-10T00:40:10.981Z to 2026-09-10T00:40:23.477Z Record version: sha256:15b969a8dd03b1723139a54f4352cd927e9c20d6b61d7fa6018ced2fdeb61b8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-942: Equity — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "summary": "This Subtopic prescribes the note disclosures a bank, savings institution, credit union, foreign bank branch, or holding company must make about regulatory capital. At a minimum, the entity must describe the capital adequacy and prompt corrective action requirements, the actual/possible effects of noncompliance, whether it is in compliance (with required and actual capital ratios and amounts for each balance sheet date), and the prompt corrective action category it was assigned at its most recent notification (942-505-50-1). Noncompliance may, with other factors, raise substantial doubt about going concern.", "key_points": [ "An entity must disclose a description of regulatory capital requirements both for capital adequacy purposes and under the prompt corrective action provisions of Section 38 of the Federal Deposit Insurance Act, the actual or possible material effects of noncompliance, and whether it is in compliance (942-505-50-1(a)-(c)).", "Quantitative disclosure includes required and actual regulatory capital ratios and amounts (which may include Common Equity Tier 1, Tier 1 leverage, Tier 1 risk-based, total risk-based, and, for savings institutions, tangible capital) as of each balance sheet date, plus factors that may significantly affect capital adequacy (942-505-50-1(c)).", "The prompt corrective action category as of the most recent notification must be disclosed for each balance sheet date, along with whether management believes subsequent conditions or events have changed that category (942-505-50-1(d)-(e)); state requirements more stringent than or significantly different from federal ones must also be disclosed (942-505-50-1A).", "'Adequately capitalized' or 'undercapitalized' entities must present the minimum amounts and ratios needed to be adequately capitalized, including the effect of any supervisory action, in narrative or tabular form; institution-specific higher capital levels imposed by regulators must be disclosed and are the basis for the compliance assertion (942-505-50-1B).", "If, as of the most recent balance sheet date, the entity is not in compliance with capital adequacy requirements or is less than adequately capitalized, the possible material effects of those conditions on the financial statements must be disclosed (942-505-50-1D through 50-1E); other regulatory limitations that could materially affect economic resources must likewise be disclosed (942-505-50-1F).", "The disclosures apply to all significant subsidiaries of a holding company and to bank holding companies themselves, except the prompt corrective action category disclosure, because bank holding companies are not subject to the prompt corrective action provisions; savings institution holding companies have no separate capital requirements (942-505-50-1G).", "Credit unions and corporate credit unions make parallel disclosures, including whether the institution meets the NCUA definition of a complex credit union and whether events after the balance sheet date but before issuance changed its prompt corrective action category (942-505-50-1H); branches of foreign institutions disclose capital-equivalent deposit and mandated reserve requirements with actual balances (942-505-50-3), and trust-asset-based capital requirements are disclosed under 942-505-50-5." ], "categories": [ "Disclosure", "Industry-specific", "Debt and equity" ], "audience_level": "intermediate", "student_note": "Regulatory capital disclosures are a signature audit and exam issue for financial institutions; note that the requirement is disclosure-only (no recognition or measurement), and students often forget that the classification disclosed is the category from the most recent regulator notification, not a self-assessment as of the balance sheet date.", "related_topics": [ "942-10", "855-10", "205-40", "942-320", "825-10" ], "key_concepts": [ "regulatory capital requirements", "prompt corrective action", "capital adequacy", "risk-based capital ratios", "credit unions", "bank holding company", "going concern doubt", "capital-equivalent deposits" ] } ``` Source downloaded (UTC): 2026-09-10T00:40:10.981Z to 2026-09-10T00:40:10.981Z Record version: sha256:5db171d15b4fd13e01b06a4afbbcbfe26c35368561c6e6629e9476855424526e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/505/942/#00-status) SEC content: no ##### [505-942-00-1](https://asc.understandingaccounting.org/asc/505/942/#505-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:10.981Z to 2026-09-10T00:40:10.981Z Record version: sha256:b8017e9d13448de44146a52f747ef564e22a5ac6da05fdee70265f2df142fec4 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
942-505-50-1AmendedAccounting Standards Update No. 2018-0907/16/2018
942-505-50-1FAmendedMaintenance Update 2016-11 (PDF)06/27/2016
942-505-50-1HAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Source downloaded (UTC): 2026-09-10T00:40:13.683Z to 2026-09-10T00:40:13.683Z Record version: sha256:837872e4df3591b5142defbe89f69e40e0184a76d281a09da95827129e0ad835 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/942/#05-overview-and-background) SEC content: no ##### [505-942-05-1](https://asc.understandingaccounting.org/asc/505/942/#505-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:13.683Z to 2026-09-10T00:40:13.683Z Record version: sha256:3e73491f6e30bf79bf6ace2a17b991aaa90a62da8c20ceaf5217953bbe382483 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides regulatory capital disclosure guidance for credit unions, branches of foreign institutions, trust operations, and post-business-combination entities. Source downloaded (UTC): 2026-09-10T00:40:17.563Z to 2026-09-10T00:40:17.563Z Record version: sha256:48c8c2fb6f9330a813dd007012999347c7c34882e6503bb0ff76441a1fbf9ea9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [505-942-15-1](https://asc.understandingaccounting.org/asc/505/942/#505-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:17.563Z to 2026-09-10T00:40:17.563Z Record version: sha256:7fe3a888fb07cb1be02d06923510d96462ee20c2814b564391e07822cc51f500 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 942-10-15. Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:b8e43afcf6f714269d8ee5e41b2927f16cf73c210544c61f35d0eaf231f6ec45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-942-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/942/#50-disclosure) SEC content: no #### Regulatory Capital Disclosures ##### [505-942-50-1](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:01fffcb4b950c40381294e4debd8fdf05a14d35267c8787b6c3e287dc69ba8d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Noncompliance with regulatory capital requirements could materially affect the economic resources of a bank or savings institution and claims to those resources. Accordingly, at a minimum, an entity shall disclose all of the following in the notes to the financial statements: 1. a A description of regulatory capital requirements for both of the following: 1. 1 Those for capital adequacy purposes 2. 2 Those established by the prompt corrective action provisions of Section 38 of the Federal Deposit Insurance Act. 2. b The actual or possible material effects of noncompliance with such requirements. 3. c Whether the entity is in compliance with the regulatory capital requirements, including, as of each balance sheet date presented, both of the following with respect to quantitative measures: 1. 1 The entity's required and actual ratios and amounts of regulatory capital, which may include Common Equity Tier 1, Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, and (for savings institutions) tangible capital 2. 2 Factors that may significantly affect capital adequacy such as potentially volatile components of capital, qualitative factors, and regulatory mandates. 4. d As of each balance sheet date presented, the prompt corrective action category in which the entity was classified as of its most recent notification. 5. e As of the most recent balance sheet date, whether management believes any conditions or events since notification have changed the institution's category. Noncompliance with regulatory capital requirements may, when considered with other factors, raise substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. ##### [505-942-50-1A](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:0bdeec5152e15423cf9cdaf651f5aa1fa6f9a2be6646cc5e4abacd059fe84713 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosures shall also be presented for any state-imposed capital requirements that are more stringent than or significantly different from federal requirements. ##### [505-942-50-1B](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1B) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:c06ef569b5c4e1593457a521f88e9d31de24dd652ca5cdac38ddda3d9633635e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For "adequately capitalized" or "undercapitalized" entities, the disclosure in paragraph [942-505-50-1(c)](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1) shall present the minimum amounts and ratios the institution must have to be categorized as _adequately capitalized_ under the prompt corrective action framework and shall include the effect of any supervisory action that has been imposed. The amounts disclosed under that paragraph may be presented in either narrative or tabular form. The percentages disclosed shall be those applicable to the entity. Entities with CAMELS ratings of 1 that are not anticipating or experiencing significant growth and have well-diversified risk are required to maintain a minimum leverage ratio of 3.0 percent. An additional 100 to 200 basis points are required for all but these most highly rated entities. Also, if the institution has been advised that it must meet capital adequacy levels that exceed the statutory minimums, those higher levels shall be disclosed. Such institution-specific requirements also shall be the basis for management's assertion in paragraph 942-505-50-1(c) about whether the entity is in compliance. ##### [505-942-50-1C](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1C) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:aa16c2bb14411a1fcf71fc0abea3d7879d0710143c35795dea66cfc5f61eb935 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A bank or savings institution is (under federal regulations) deemed to be within a given capital category as of the most recent date of any of the following: 1. a The date the institution filed a regulatory financial report 2. b The date a final regulatory examination report is delivered to the institution 3. c The date the institution's primary regulator provides written notice of the entity's capital category or that the institution's capital category has changed. ##### [505-942-50-1D](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1D) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:13f84e43aacd23db118f44d0145b5acf961a2432d1cdb43333df8bb8129b59bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If any of the conditions in the following paragraph exist, the possible material effects of such conditions and events on amounts and disclosures in the financial statements shall be disclosed. ##### [505-942-50-1E](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1E) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:4d130ee70310cda71cccd3705eb4fe83087cc7cc955e694a62e18a7849587f4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the preceding paragraph applies if, as of the most recent balance sheet date presented, any of the following conditions exist: 1. a The entity is not in compliance with capital adequacy requirements 2. b The entity is considered less than adequately capitalized under the prompt corrective action provisions. ##### [505-942-50-1F](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1F) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:620f12106f3b1b5ccb7934a79b6b9eaf85f5196f87ce4f23aa53324d0df5f9d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other regulatory limitations may exist despite compliance with minimum regulatory capital requirements. To the extent such limitations could materially affect the economic resources of the institution and claims to those resources, they shall similarly be disclosed in the notes to financial statements. ##### [505-942-50-1G](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1G) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:0b9ef3f54ace2e8623be7c09bc5fe317c866f44440467054ffd54c8b6c5aa414 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures required by paragraphs [942-505-50-1 through 50-1F](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1) shall be presented for all significant subsidiaries of a holding company. Bank holding companies shall also present the disclosures required by paragraphs 942-505-50-1 through 50-1F as they apply to the holding company, except for the prompt corrective action disclosure required by paragraph [942-505-50-1(d)](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1). Savings institution holding companies are not subject to regulatory capital requirements separate from those of their subsidiaries. Bank holding companies are not subject to the prompt corrective action provisions of the Federal Deposit Insurance Act. ##### [505-942-50-1H](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-1H) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:72adf9702f38ebb3218120f618f2de2619248204e4a2496ab2c631339c197116 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Noncompliance with regulatory capital requirements could materially affect the economic resources of a credit union and claims to those resources. Accordingly, at a minimum, a credit union or corporate credit union within the scope of paragraph [942-10-15-2](https://asc.understandingaccounting.org/asc/942/10/#942-10-15-2) shall disclose all of the following in notes to financial statements: 1. a A description of the regulatory requirements for both of the following: 1. 1 Capital adequacy purposes 2. 2 Prompt corrective action. 2. b The actual or possible material effects of noncompliance with those requirements. 3. c Whether the entity is in compliance with the regulatory capital requirements, including, as of each balance sheet date presented, all of the following with respect to quantitative measures: 1. 1 Whether the institution meets the definition of a complex credit union as defined by the National Credit Union Administration 2. 2 The institution's required and actual capital ratios and required and actual capital amounts 3. 3 Factors that may significantly affect capital adequacy, such as potentially volatile components of capital, qualitative factors, or regulatory mandates. 4. d As of each balance sheet date presented, the prompt corrective action category in which the institution was classified. 5. e If, as of the most recent balance-sheet date or date financial statements are issued or are available to be issued (as discussed in Section 855-10-25), the institution is not in compliance with capital adequacy requirements, the possible material effects of such conditions on amounts and disclosures in the financial statements. 6. f Whether after the balance sheet date and before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), management believes any events or changes have occurred to change the institution's prompt corrective action category. Noncompliance with regulatory capital requirements may, when considered with other factors, raise substantial doubt about a credit union's ability to continue as a going concern for a reasonable period of time. ##### [505-942-50-2](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:73b4d4e4e596c3cd7c139f9a6d46323979f2c90d383e856913dc2f7120e79ebe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosures shall also be presented for any state-imposed capital requirements that are more stringent than or significantly different from federal requirements. ##### [505-942-50-3](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:e5d3e06e8323f33dba33a525fb204933117aff9de906017838c71a091c4c64cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Branches of foreign financial institutions, while they do not have regulatory capital requirements, may be required to maintain capital-equivalent deposits and, depending on facts and circumstances, supervisory-mandated reserves. These requirements carry regulatory uncertainty of a nature similar to that posed by the regulatory capital rules in that failure to meet such mandates can result in supervisory action and ultimately going-concern questions. Accordingly, branches shall disclose such requirements. Quantitative disclosure shall be made, highlighting mandated deposit or reserve requirements and actual balances in those reserve or deposit accounts at the balance sheet date(s) reported. ##### [505-942-50-4](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:6989f836a212cf79fcf9251864a48030e935819c48d968b4781818a20648ac70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Further, if an uncertainty exists related to a parent that creates a higher-than-normal risk as to the viability of a branch or subsidiary, then that matter shall be adequately disclosed in the notes to the financial statements of the branch or subsidiary. If factors do not exist that indicate a higher than normal amount of risk or uncertainty regarding parent capital and other regulatory matters, then disclosures of capital and supervisory issues of the parent would not be required. ##### [505-942-50-5](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:e0248517cdef9666ca62b8e4cea7d440e78e0c524fbc42d5648671b2b4686d37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an institution is subject to capital requirements based on trust assets under management, a discussion of the existence of these requirements, ramifications of failure to meet them, and a measurement of the entity's position relative to imposed requirements shall be disclosed in the notes to the financial statements. ##### [505-942-50-6](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:4c5b68a460a67ad01cf7773e0a4b19410cc9c0c597776c137dc80bc32e49866e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [505-942-50-7](https://asc.understandingaccounting.org/asc/505/942/#505-942-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:19.892Z to 2026-09-10T00:40:19.892Z Record version: sha256:34a3dc7622ca6fcd105a0dd17c69b5ed8b583ad0ede8d889b780953e023680ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T00:40:25.190Z to 2026-09-10T00:40:41.119Z Record version: sha256:69223024c1a84a76afc2ed36e6027403efbe6092afa3fcce2f992e1d27771ee5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-944: Equity — Financial Services—Insurance ### Machine-generated study aids ```json { "summary": "This Subtopic sets the equity-related disclosure requirements for insurance entities, focusing on statutory capital and surplus and how statutory accounting practices constrain dividends. Entities must disclose statutory capital and surplus, the amount needed to meet regulatory requirements, and restrictions on retained earnings available for dividends (505-944-50-1). When state-prescribed or permitted statutory accounting practices differ from NAIC statutory accounting practices and produce a significantly different statutory surplus or risk-based capital, the entity must describe the practice and quantify its monetary effect on statutory surplus (505-944-50-2 through 50-3).", "key_points": [ "Insurance entities must disclose the amount of statutory capital and surplus, the amount necessary to satisfy regulatory requirements if significant in relation to statutory capital and surplus, and the nature of statutory dividend restrictions plus retained earnings unavailable for dividends (505-944-50-1).", "The prescribed/permitted practice disclosures apply to annual and complete sets of interim GAAP financial statements, and are triggered only if the practices cause a significant difference in reported statutory surplus or risk-based capital versus NAIC statutory accounting practices AND state-prescribed or permitted practices differ from NAIC (or state-prescribed) practices (505-944-50-2).", "If triggered, the entity discloses at each financial statement date a description of the prescribed or permitted statutory accounting practice and the related monetary effect on statutory surplus (505-944-50-3).", "These disclosures apply to a U.S. insurance entity, a U.S. entity with a U.S. insurance subsidiary, and a foreign entity with a U.S. insurance subsidiary that prepares U.S. GAAP financial statements (505-944-50-4).", "A foreign insurance entity without a U.S. insurance subsidiary that prepares (or is included in a parent's consolidated) U.S. GAAP financial statements must disclose permitted regulatory accounting practices that significantly differ from its regulator's prescribed practices and their monetary effects (505-944-50-5).", "If risk-based capital would have triggered a regulatory event but for a permitted practice, that fact must be disclosed (505-944-50-6).", "Section 55 illustrates compliant note disclosures (e.g., immediate goodwill write-off as a prescribed practice and carrying home office property at fair value as a permitted practice, with quantified surplus effects) (505-944-55-1 through 55-2)." ], "categories": [ "Disclosure", "Industry-specific", "Debt and equity", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "Remember this is a disclosure-only subtopic: statutory accounting (SAP) is not GAAP, but GAAP financial statements of insurers must reveal SAP-based surplus and the dividend limits it imposes. The common misunderstanding is thinking the monetary-effect disclosure adjusts GAAP equity — it only quantifies the effect on statutory surplus, and only when the two-part trigger in 505-944-50-2 is met.", "related_topics": [ "944-20", "944-10", "944-505", "505-10", "235-10", "275-10" ], "key_concepts": [ "statutory capital and surplus", "prescribed statutory accounting practices", "permitted statutory accounting practices", "naic statutory accounting practices", "risk-based capital", "dividend restrictions", "restricted retained earnings", "insurance regulatory disclosure" ] } ``` Source downloaded (UTC): 2026-09-10T00:40:25.190Z to 2026-09-10T00:40:25.190Z Record version: sha256:e08c709905e4cd51a3b971373b7b0d6d21a259a992ea8766728e7c1eae832c05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-944-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/944/#05-overview-and-background) SEC content: no ##### [505-944-05-1](https://asc.understandingaccounting.org/asc/505/944/#505-944-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:25.190Z to 2026-09-10T00:40:25.190Z Record version: sha256:c6f6aeb364a4e3d0a1dd996280a113e2079b96419759b40061160ff552b82f67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to insurance entities on disclosures about equity and related [statutory accounting practices](https://asc.understandingaccounting.org/glossary/s/#statutory-accounting-practices "Accounting principles required by statute, regulation, or rule, or permitted by specific approval, that an insurance entity is required to follow when submitting its financial statements to state insurance departments."). For a background discussion of statutory accounting practices, see Section 944-20-05. Source downloaded (UTC): 2026-09-10T00:40:28.700Z to 2026-09-10T00:40:28.700Z Record version: sha256:6d88c763bc9bdf2836f96e72c5448af213b7a18642e4ab8a69679df6a40d127f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/944/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [505-944-15-1](https://asc.understandingaccounting.org/asc/505/944/#505-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:28.700Z to 2026-09-10T00:40:28.700Z Record version: sha256:f15af20f33c5d10d61a2c53676f8c509f4271be717d1d759fb773703216163b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15. Source downloaded (UTC): 2026-09-10T00:40:34.862Z to 2026-09-10T00:40:34.862Z Record version: sha256:946e410697a6974050f381bb74e10e3045319938ccf862510bc2053708fab199 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-944-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/944/#50-disclosure) SEC content: no ##### [505-944-50-1](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:34.862Z to 2026-09-10T00:40:34.862Z Record version: sha256:4a1b488e10f22a6f39002fb20b7b0c2d69284925f59735a034d9dc050bacf2ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Insurance entities shall disclose in their financial statements all of the following information relating to stockholders' equity, statutory capital and surplus, and the effects of [statutory accounting practices](https://asc.understandingaccounting.org/glossary/s/#statutory-accounting-practices "Accounting principles required by statute, regulation, or rule, or permitted by specific approval, that an insurance entity is required to follow when submitting its financial statements to state insurance departments.") on the entity's ability to pay dividends to stockholders: 1. a The amount of statutory capital and surplus 2. b The amount of statutory capital and surplus necessary to satisfy regulatory requirements (based on the entity's current operations) if significant in relation to the entity's statutory capital and surplus 3. c The nature of statutory restrictions on the payment of dividends and the amount of retained earnings that is not available for the payment of dividends to stockholders. ##### [505-944-50-2](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:34.862Z to 2026-09-10T00:40:34.862Z Record version: sha256:bf4ef9ddf6dfcdb48691dab7761df3de51ab8d80fe3ea5688c40ee2802eded2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirements beginning in the following paragraph apply to annual and complete sets of interim financial statements prepared in conformity with generally accepted accounting principles (GAAP). The disclosures in the following paragraph shall be made if both of the following conditions are met: 1. a The use of prescribed or permitted statutory accounting practices (individually or in the aggregate) results in reported statutory surplus or risk-based capital that is significantly different from the statutory surplus or risk-based capital that would have been reported had National Association of Insurance Commissioners' statutory accounting practices been followed. 2. b Either of the following conditions is met: 1. 1 State-prescribed statutory accounting practices differ from National Association of Insurance Commissioners' statutory accounting practices. 2. 2 Permitted state statutory accounting practices differ from either state-prescribed statutory accounting practices or National Association of Insurance Commissioners' statutory accounting practices. ##### [505-944-50-3](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:34.862Z to 2026-09-10T00:40:34.862Z Record version: sha256:f6fc962ed97c00b078b99bfb577a79d38162efa4bd4ecb13f4373063809acc57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the criteria in the preceding paragraph are met, insurance entities shall disclose both of the following at the date each financial statement is presented: 1. a A description of the prescribed or permitted statutory accounting practice 2. b The related monetary effect on statutory surplus of using an accounting practice that differs from either state-prescribed statutory accounting practices or National Association of Insurance Commissioners' statutory accounting practices. ##### [505-944-50-4](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:34.862Z to 2026-09-10T00:40:34.862Z Record version: sha256:4f6d09e270ad5e0fb98b61881e9db546504a6bf8a2a3a166a39d11bb214cb698 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures in the preceding paragraph shall be applied by all of the following entities if the entity prepares U.S. GAAP financial statements: 1. a A U.S. insurance entity 2. b A U.S. entity with a U.S. insurance subsidiary 3. c A foreign entity with a U.S. insurance subsidiary. ##### [505-944-50-5](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:34.862Z to 2026-09-10T00:40:34.862Z Record version: sha256:4599649d9ac3ef08f5f672420e0402f2f91026b1636d60325f2b82a91861b99e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a foreign insurance entity that does not have a U.S. insurance subsidiary prepares U.S. GAAP financial statements or is included in its parent's consolidated U.S. GAAP financial statements, the notes to financial statements shall disclose permitted regulatory accounting practices that significantly differ from the prescribed regulatory accounting practices of its respective regulatory authority and their monetary effects. ##### [505-944-50-6](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:34.862Z to 2026-09-10T00:40:34.862Z Record version: sha256:2b711b3cf4fb31c511e9687ef1686fa3b27ccc370023a7990da4cdcabc66f12e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an insurance entity's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact shall be disclosed in the financial statements. Source downloaded (UTC): 2026-09-10T00:40:38.943Z to 2026-09-10T00:40:38.943Z Record version: sha256:02cbd0d548f5f17abfd95741dd0a24f17943a3e9b0dd8bc7411e126d114e69a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-944-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/505/944/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [505-944-55-1](https://asc.understandingaccounting.org/asc/505/944/#505-944-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:38.943Z to 2026-09-10T00:40:38.943Z Record version: sha256:a41bde3abab0dc544cf2904dabdbded28bd1b94f97c4e8056e1d06600f6d93b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates disclosures that an insurance entity could make to meet the requirements of paragraphs [944-505-50-2 through 50-6](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-2) . - Note X. Statutory Accounting Practices - The Entity's statutory financial statements are presented on the basis of accounting practices prescribed or permitted by the \[state of domicile\] Insurance Department. \[State of domicile\] has adopted the National Association of Insurance Commissioners' statutory accounting practices as the basis of its statutory accounting practices, except that it has retained the prescribed practice of writing off goodwill immediately to statutory surplus in the year of acquisition. - In addition, the commissioner of \[state of domicile\] Insurance Department has the right to permit other specific practices that may deviate from prescribed practices. The commissioner has permitted the Entity to record its home office property at estimated fair value instead of at depreciated cost, as required by National Association of Insurance Commissioners' statutory accounting practices. This accounting practice increased statutory capital and surplus by $2.5 million and $2.3 million at December 31, 20X2 and 20X1, respectively, over what it would have been had the permitted practice not been allowed. The Entity's statutory capital and surplus, including the effects of the permitted practice, was $30.0 million and $27.9 million at December 31, 20X2 and 20X1, respectively. - Had the Entity amortized its goodwill over 10 years and recorded its home office property at depreciated cost, in accordance with National Association of Insurance Commissioners' statutory accounting practices, the Entity's capital and surplus would have been $29.9 million and $27.7 million at December 31, 20X2, and 20X1, respectively. ##### [505-944-55-2](https://asc.understandingaccounting.org/asc/505/944/#505-944-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:38.943Z to 2026-09-10T00:40:38.943Z Record version: sha256:e46b5b013879003543375db2ce2931cf3f01d8f1f582d7c7d5160d1943008320 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates alternative disclosures that an insurance entity could make to meet the requirements of paragraphs [944-505-50-2 through 50-6](https://asc.understandingaccounting.org/asc/505/944/#505-944-50-2) . - Note X. Statutory Accounting Practices - The Entity's statutory financial statements are presented on the basis of accounting practices prescribed or permitted by the \[state of domicile\] Insurance Department. \[State of domicile\] has adopted the National Association of Insurance Commissioners' statutory accounting practices as the basis of its statutory accounting practices, except that it has retained the prescribed practice of writing off goodwill immediately to statutory surplus in the year of acquisition. - In addition, the commissioner of the \[state of domicile\] Insurance Department has the right to permit other specific practices that may deviate from prescribed practices. The commissioner has permitted the Entity to record its home office property at estimated fair value instead of at depreciated cost, as required by National Association of Insurance Commissioners' statutory accounting practices. - The monetary effect on statutory capital and surplus of using accounting practices prescribed or permitted by the \[state of domicile\] Insurance Department is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-C6E3075C-7E04-4174-B659-ECECD8B4DD3C-low.gif) December 31 20X2 20X1 $m $m Statutory capital and surplus per statutory financial statements $30.0 $27.9 Effect of permitted practice of recording home office property at estimated fair value (2.5) (2.3) Effect of \[state of domicile's\] prescribed practice of immediate write-off of goodwill(a) 2.4 2.1 Statutory capital and surplus in accordance with the NAIC statutory accounting practices $29.9 $27.7 (a) This amount compared to the prior year reflects the net impact of an additional year's amortization and the fact that admitted goodwill is based on the level of statutory capital and surplus and thus can fluctuate. Source downloaded (UTC): 2026-09-10T00:40:45.017Z to 2026-09-10T00:41:01.868Z Record version: sha256:5a6b76e12d4c53dfe80765b52eb605048727904b93e3ee06a8a0fd3799f0d050 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-946: Equity — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "This Subtopic governs equity transactions and reporting for investment companies, focusing on capital share transactions and distributions to shareholders. It requires per-class disclosure of net asset value per share and the components of the net change in net assets from capital share transactions, along with tax-basis components of dividends paid. Return of capital is determined only at the fund level, not per class.", "key_points": [ "Net asset value per share must be disclosed for each class of shares (505-946-50-1).", "The net change in net assets from capital share transactions must be disclosed by class, showing the number and value of shares sold, shares issued in reinvestment of distributions, the number and cost of shares reacquired, and the net change (505-946-50-2).", "Net assets at the beginning and end of the year must be disclosed, and the ending balance must agree with the statement of assets and liabilities or statement of net assets (505-946-50-3).", "For financial reporting, a return of capital is not determined at the class level, and distributable earnings is disclosed only at the fund level (505-946-50-4).", "Notes must disclose the tax-basis components of dividends paid: ordinary income distributions, long-term capital gains distributions, and return of capital distributions (505-946-50-5).", "Notes must explain the primary reasons for any significant difference between GAAP net investment income and net realized gain and actual distributions (505-946-50-6).", "Scope follows the Overall Investment Companies Subtopic scope in Section 946-10-15 (505-946-15-1); Section 55 illustrates the record-share, actual-income-available, and simultaneous-equations methods for calculating distributions from net investment income." ], "categories": [ "Disclosure", "Industry-specific", "Debt and equity", "Financial statement presentation" ], "audience_level": "intermediate", "student_note": "Mutual fund financial statements live or die on the statement of changes in net assets; know that share-transaction detail (sold, reinvested, reacquired, net change) is required class-by-class. A common misunderstanding is assuming return of capital and distributable earnings are computed per class — under 505-946-50-4 they are fund-level determinations only.", "related_topics": [ "946-10", "946-205", "946-505", "946-830", "505-10", "740-10" ], "key_concepts": [ "net asset value per share", "capital share transactions", "multiple classes of shares", "distributions to shareholders", "return of capital", "tax-basis components of dividends", "equalization accounting", "net investment income" ] } ``` Source downloaded (UTC): 2026-09-10T00:40:45.017Z to 2026-09-10T00:40:45.017Z Record version: sha256:0c1a27a32e09f05203d09e8d1bd636dafa63cfcef3bea7673289f92478e81920 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-946-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/505/946/#05-overview-and-background) SEC content: no ##### [505-946-05-1](https://asc.understandingaccounting.org/asc/505/946/#505-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:45.017Z to 2026-09-10T00:40:45.017Z Record version: sha256:63656ed0af331daa5215b77785a590caf6125621472873456c850ff2079a3f3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses equity transactions and reporting for investment companies, including distributions to shareholders. Source downloaded (UTC): 2026-09-10T00:40:48.723Z to 2026-09-10T00:40:48.723Z Record version: sha256:c01fe43410052f86db351056617243d2f8dbee32dae9773ee38daf9ed056315b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/505/946/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [505-946-15-1](https://asc.understandingaccounting.org/asc/505/946/#505-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:48.723Z to 2026-09-10T00:40:48.723Z Record version: sha256:cce0deb7b5ec97ee513367769dfe183ca23431a92d5f866e0fcc9c2585a7a7f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15. Source downloaded (UTC): 2026-09-10T00:40:54.495Z to 2026-09-10T00:40:54.495Z Record version: sha256:ce6abab8379577b284559164a7bbc0fedc3b56ae0bdfc3fd13b9cbedfa262e78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-946-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/946/#50-disclosure) SEC content: no #### Net Asset Value per Share ##### [505-946-50-1](https://asc.understandingaccounting.org/asc/505/946/#505-946-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:54.495Z to 2026-09-10T00:40:54.495Z Record version: sha256:d6d4ac95d927c514503cc784948a979a3596a645724a8ec83896f5c29e54eb1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Net asset value per share](https://asc.understandingaccounting.org/glossary/n/#net-asset-value-per-share "Net asset value per share is the amount of net assets attributable to each share of capital stock (other than senior equity securities, that is, preferred stock) outstanding at the close of the period. It excludes the effects of assuming conversion of outstanding convertible securities, whether or not their conversion would have a diluting effect.") shall be disclosed for each class of shares. #### Capital Share Transactions ##### [505-946-50-2](https://asc.understandingaccounting.org/asc/505/946/#505-946-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:54.495Z to 2026-09-10T00:40:54.495Z Record version: sha256:8fad3660ffc008841902960953144b1b1c0346fe635ef394ecdf835f320bd157 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The net change in net assets (excluding amounts shown separately if equalization accounting is used) arising from capital share transactions shall be disclosed for each class of shares. All of the following components of the change shall be disclosed on the face of the statement or in the notes to financial statements for each class of shares: 1. a The number and value of shares sold 2. b The number and value of shares issued in reinvestment of distributions 3. c The number and cost of shares reacquired 4. d The net change. #### Capital Contributions ##### [505-946-50-3](https://asc.understandingaccounting.org/asc/505/946/#505-946-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:54.495Z to 2026-09-10T00:40:54.495Z Record version: sha256:39802155c0ff9b1caf8ade96d2b0a64046f6fa3b3a5b8783c7d60031a8a8a7f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net assets at the beginning of the year and at the end of the year shall be disclosed. The balance of net assets at the end of the year shall agree with the comparable amount shown in the statement of assets and liabilities or in the statement of net assets. #### Multiple-Class Funds ##### [505-946-50-4](https://asc.understandingaccounting.org/asc/505/946/#505-946-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:54.495Z to 2026-09-10T00:40:54.495Z Record version: sha256:5c7af31300c05a953411618501b8df9b4eb148d3a6b78d503abd58b0bf18951b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For financial reporting purposes, a [return of capital](https://asc.understandingaccounting.org/glossary/r/#return-of-capital "Distributions by investment companies in excess of tax-basis earnings and profits.") is not determined at the class level and distributable earnings is disclosed only at the fund level. #### Dividends Paid ##### [505-946-50-5](https://asc.understandingaccounting.org/asc/505/946/#505-946-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:54.495Z to 2026-09-10T00:40:54.495Z Record version: sha256:1dd3d693ca3178508c6cedb42cc216bf26b738ccd50f1d01f2e5d90b9cf07e79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following tax-basis components of dividends paid shall be disclosed in the notes: 1. a Ordinary income distributions 2. b Long-term capital gains distributions 3. c Return of capital distributions. #### Difference Between Net Investment Income and Net Realized Gain and Actual Distributions ##### [505-946-50-6](https://asc.understandingaccounting.org/asc/505/946/#505-946-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:54.495Z to 2026-09-10T00:40:54.495Z Record version: sha256:8d42c4829b9abede94eb052df8e15346f85ac9d1aaeea7467307bf2dd08ae964 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The primary reasons for any significant difference between total net investment income determined in accordance with generally accepted accounting principles (GAAP) and net realized gain and actual distributions shall be disclosed in the notes to financial statements. Source downloaded (UTC): 2026-09-10T00:40:58.343Z to 2026-09-10T00:40:58.343Z Record version: sha256:6501d7fd0319d0d2a2eae8f84fa0890a080356d07f55329f1033ec5ccccbf937 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-946-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/505/946/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [505-946-55-1](https://asc.understandingaccounting.org/asc/505/946/#505-946-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:40:58.343Z to 2026-09-10T00:40:58.343Z Record version: sha256:e793c96f0beb8178369392332a6ae5df9e086ed3eab76d63d93207ad08bc137f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the [record-share](https://asc.understandingaccounting.org/glossary/r/#record-share-method "A method to calculate distributions to shareholders from net investment income in which the sum of net investment income available for all classes after deducting allocated expenses, but before consideration of class-specific expenses, is divided by the total outstanding shares on the dividend record date for all classes to arrive at a gross dividend rate for all shares. From this gross rate, an amount per share for each class (the amount of incremental expenses accrued during the period divided by the record date shares outstanding for the class) is subtracted. The result is the per-share dividend available for each class."), [actual-income-available](https://asc.understandingaccounting.org/glossary/a/#actual-income-available-method "A method to calculate distributions to shareholders from net investment income in which actual net investment income that has been allocated to each class (as recorded on the books) is divided by the record date shares for each class to derive the dividend payable per share."), and [simultaneous-equations](https://asc.understandingaccounting.org/glossary/s/#simultaneous-equations-method "A method to calculate distributions to shareholders from net investment income that seeks to ensure, by using simultaneous equations, that the distribution rates will differ among the classes by the anticipated differential in expense ratios.") methods generally used to calculate distributions to shareholders from net investment income. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C43E1DB4-278D-421C-8CC3-5C21DEF4B1B7-low.gif) Total Class A Class B Assumptions: Net investment income before class specific expenses " $1,000,000 " Class-specific expenses: Class A " $13,000 " Class B " $59,000 " Record date shares outstanding " 5,000,000 " " 2,000,000 " " 3,000,000 " Record Share Method Net investment income before class specific expenses " $1,000,000 " Total record date shares outstanding " 5,000,000 " Gross dividend rate for all shares $0.2000 $0.2000 $0.2000 Per share class-specific expenses: "Class A ($13,000 ÷ 2,000,000)" (0.0065) "Class B ($59,000 ÷ 3,000,000)" (0.0197) Per share dividend for each class $0.1935 $0.1803 Actual Income Available Method Actual net investment income recorded on books of each class " $928,000 " " $417,600 " " $510,400 " Record date shares outstanding for each class " 2,000,000 " " 3,000,000 " Per share dividend for each class $0.2088 $0.1701 Simultaneous Equations Method "EQUATION #1: A + B = $928,000" Where—A and B represent the total dividend amounts to be paid to each class. "EQUATION #2: (A ÷ 2,000,000) - (B ÷ 3,000,000) = (0.5% x $10.50) ÷ 4" Where "2,000,000 and 3,000,000 represent the record date shares of each class" 0.5% represents the expense differential between Class A and Class B $10.50 represents the average daily net asset value of the fund 4 refers to the fact that the dividend period is a quarter Solving the above simultaneous equations produces the following results: Total Class A Class B Total dividends to be paid " $928,000 " " $386,961 " " $541,039 " Record date shares outstanding for each class " 2,000,000 " " 3,000,000 " Per share dividend for each class $0.1935 $0.1803 Annualized distribution rates to average daily net asset value 7.37% 6.87% Difference in distribution rates 0.50% Source downloaded (UTC): 2026-09-10T00:41:01.868Z to 2026-09-10T00:41:01.868Z Record version: sha256:a3e0ff49ea3b76ca2e1a5d1a0ca2fcaea2bc648df86fec280297458aafa8e1b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-946-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/946/#sec-50-disclosure) SEC content: yes #### Issuance and Repurchase by a Registered Investment Company of Its Own Securities ##### [505-946-S50-1](https://asc.understandingaccounting.org/asc/505/946/#505-946-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:41:01.868Z to 2026-09-10T00:41:01.868Z Record version: sha256:2d22ae08fdc9c4d49ed98b766ca2cdc9c1ad84eddb172a00e3b15f4e9a1545f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-10-S99-3](https://asc.understandingaccounting.org/asc/946/10/#946-10-S99-3), Regulation S-X Rule 6-03(i), for the required disclosures pertaining to the issuance and repurchase by a registered investment company of its own securities.