# ASC 610-30: Other Income — Gains and Losses on Involuntary Conversions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/610/30/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:55:17.173Z to 2026-09-10T00:55:35.874Z Record version: sha256:efbab0028e5e3f613caf30a6d23937bd2a94c170e01178c08c60a8ff9a9243cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30: Other Income — Gains and Losses on Involuntary Conversions ### Machine-generated study aids ```json { "summary": "ASC 610-30 governs the accounting when a nonmonetary asset (property, equipment, inventory) is involuntarily converted into monetary assets — e.g., insurance proceeds from destruction or theft, or condemnation awards in eminent domain. Because the conversion is a monetary transaction rather than a nonmonetary exchange, any difference between the asset's cost (or carrying amount) and the monetary assets received is a realized gain or loss that must be recognized, even if the proceeds are reinvested or the entity is obligated to reinvest them in replacement assets (610-30-25-2; 610-30-25-3).", "key_points": [ "The Subtopic applies to all entities and to events in which nonmonetary assets are involuntarily converted (destruction, theft, seizure, condemnation) into monetary assets that are then reinvested in other nonmonetary assets (610-30-15-1; 610-30-15-2(a)).", "'Cost' means the cost of the nonmonetary asset or its carrying amount, if different, and gain or loss equals the difference between that amount and the monetary assets received (610-30-25-1; 610-30-25-2).", "Conversion of a nonmonetary asset to monetary assets is a monetary transaction — not an exchange of nonmonetary assets — so gain or loss must be recognized even though the proceeds are or must be reinvested in replacement assets (610-30-25-2; 610-30-25-3).", "Exception: gain recognition is not required for an involuntary conversion of LIFO inventory when replacement is intended but not made by year-end and no gain is recognized for income tax purposes; the interim exception in 270-10-45-6(b) applies if replacement is expected by year-end (610-30-25-3).", "If the asset is destroyed or damaged in one period but the amount of monetary assets to be received is not determinable until a later period, gain or loss is recognized in accordance with Topic 450 (610-30-25-4).", "The cost of nonmonetary assets acquired subsequently is measured by the consideration paid and is not affected by the previous conversion transaction — no basis carryover (610-30-30-1).", "Gain or loss from the involuntary conversion is classified in accordance with Subtopic 220-20 (unusual or infrequently occurring items) (610-30-45-1); temporary differences are addressed in 740-10-55-66 (610-30-60-1)." ], "categories": [ "Recognition", "Derecognition", "Presentation", "Inventory and PP&E" ], "audience_level": "intermediate", "student_note": "The classic trap is assuming that reinvesting insurance or condemnation proceeds in a replacement asset defers the gain (as it can for tax purposes under IRC §1033) — under GAAP the gain is recognized immediately and the replacement asset is recorded at the consideration paid, with no basis reduction. Watch for the narrow LIFO inventory exception and the Topic 450 contingency treatment when the recovery amount is undetermined at period-end.", "related_topics": [ "845", "450", "220-20", "740-10", "270-10", "610-20" ], "key_concepts": [ "involuntary conversion", "nonmonetary asset", "monetary asset", "insurance proceeds", "condemnation / eminent domain", "gain or loss recognition", "lifo inventory replacement", "reinvestment in replacement assets" ] } ``` Source downloaded (UTC): 2026-09-10T00:55:17.173Z to 2026-09-10T00:55:17.173Z Record version: sha256:d69f7226ead4de7bd8627f7032719ccb9a0e3108e4315e416529892b766afd5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/610/30/#00-status) SEC content: no ##### [610-30-00-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:17.173Z to 2026-09-10T00:55:17.173Z Record version: sha256:dc6a89999be671d46595822281a8835e7e461c699f1c6b54f3f47d59c145a622 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
610-30-05-1 through 05-3
AddedAccounting Standards Update No. 2014-0905/28/2014
610-30-15-1AddedAccounting Standards Update No. 2014-0905/28/2014
610-30-15-2AddedAccounting Standards Update No. 2014-0905/28/2014
610-30-25-1 through 25-4
AddedAccounting Standards Update No. 2014-0905/28/2014
610-30-30-1AddedAccounting Standards Update No. 2014-0905/28/2014
610-30-45-1AmendedMaintenance Update 2017-19 (PDF)11/15/2017
610-30-45-1AddedAccounting Standards Update No. 2014-0905/28/2014
610-30-60-1AddedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:55:19.665Z to 2026-09-10T00:55:19.665Z Record version: sha256:f8b607bf929f0c99c7cc177f4d5684c62fcaf686952a12b90a60f04a06b41a0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/610/30/#05-overview-and-background) SEC content: no ##### [610-30-05-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:19.665Z to 2026-09-10T00:55:19.665Z Record version: sha256:83a8e0f289a95a7a2518aed089db97be8da8680142fcbc52a7211fab931da3a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic clarifies the accounting for involuntary conversions of nonmonetary assets (such as property or equipment) to monetary assets (such as insurance proceeds). Examples of such conversions are total or partial destruction or theft of insured nonmonetary assets and the condemnation of property in eminent domain proceedings. ##### [610-30-05-2](https://asc.understandingaccounting.org/asc/610/30/#610-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:19.665Z to 2026-09-10T00:55:19.665Z Record version: sha256:17a75438fe595c2d79deb72e51ee5821377d6ffa375c60194a39d64d44e20ac4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms _nonmonetary_ and _monetary_ as used in this Subtopic have the same meaning as those terms have in Topic 845. ##### [610-30-05-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:19.665Z to 2026-09-10T00:55:19.665Z Record version: sha256:e4e02cb034d1d1d95e912bb672a7e248c2662d0344917e598aab74639ea8362a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although this Subtopic provides specific guidance for gains and losses resulting from involuntary conversions, the majority of other guidance for gains and losses is included in the Derecognition Section of the relevant asset or liability Topic. Source downloaded (UTC): 2026-09-10T00:55:23.121Z to 2026-09-10T00:55:23.121Z Record version: sha256:fc7d949276d62a8ffa50b01173f36c3054a6bbe77f945b68eef60be5919c0a2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/610/30/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [610-30-15-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:23.121Z to 2026-09-10T00:55:23.121Z Record version: sha256:d94acc5f7e853d7cd7f4b7537500d3a3cd33cc55defe62a55a74bbe16f215d4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Transactions ##### [610-30-15-2](https://asc.understandingaccounting.org/asc/610/30/#610-30-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:23.121Z to 2026-09-10T00:55:23.121Z Record version: sha256:a8d4ff55b9160f892b8f6e51f4744cce587668062b7d9370d715076f3fb53ffe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the following events and transactions: 1. a Those in which nonmonetary assets are involuntarily converted (for example, as a result of total or partial destruction, theft, seizure, or condemnation) to monetary assets that are then reinvested in other nonmonetary assets. Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z Record version: sha256:ac72185eebb8df537c85e89b8a8bc2f31166586a36623e5b4702bdbe07b8f803 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/610/30/#25-recognition) SEC content: no ##### [610-30-25-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z Record version: sha256:c39757dfa3fbb57b18a03a0763314e5ce4224c872a14c393600c9fbc6bc04bec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As used in this Subtopic, the term _cost_ refers to the cost of a nonmonetary asset or to its carrying amount, if different. ##### [610-30-25-2](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z Record version: sha256:cd75760cf073cf153922ff7f6d0219f419fc4aac5a33d2dd2cebb86156184af9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An involuntary conversion of a nonmonetary asset to monetary assets and the subsequent reinvestment of the monetary assets is not equivalent to an exchange transaction between an entity and another entity. The conversion of a nonmonetary asset to monetary assets is a monetary transaction, whether the conversion is voluntary or involuntary, and such a conversion differs from exchange transactions that involve only nonmonetary assets. To the extent the cost of a nonmonetary asset differs from the amount of monetary assets received, the transaction results in the realization of a gain or loss that shall be recognized. ##### [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z Record version: sha256:d47ab5e6962143a786b465d060ae928fe8f8c67d910e79b0bee1c127003b9773 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Involuntary conversions of nonmonetary assets to monetary assets are monetary transactions for which gain or loss shall be recognized even though an entity reinvests or is obligated to reinvest the monetary assets in replacement nonmonetary assets. However, the requirement of this Subtopic with respect to gain recognition does not apply to an involuntary conversion of a last-in, first-out (LIFO) inventory for which replacement is intended but not made by year-end and the taxpayer does not recognize gain for income tax reporting purposes. Paragraph [270-10-45-6(b)](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-6) provides an exception for the liquidation of a LIFO inventory at an interim date if replacement is expected by year-end. Accordingly, that exception applies to an involuntary conversion of a LIFO inventory if replacement is expected by year-end. ##### [610-30-25-4](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:26.349Z to 2026-09-10T00:55:26.349Z Record version: sha256:4a9d1ebf89d91e3bd74262a93efae30d715a7dc473c952a4413e02ac6be8b7e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, a nonmonetary asset may be destroyed or damaged in one accounting period, and the amount of monetary assets to be received is not determinable until a subsequent accounting period. In those cases, gain or loss shall be recognized in accordance with Topic 450. Source downloaded (UTC): 2026-09-10T00:55:28.842Z to 2026-09-10T00:55:28.842Z Record version: sha256:038b58af7952a122ed9968ff6feacc368850e0211894ab8a8e8ff5297762f234 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/610/30/#30-initial-measurement) SEC content: no ##### [610-30-30-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:28.842Z to 2026-09-10T00:55:28.842Z Record version: sha256:1f8776e6939a3f693f657533aea1cfdca9a4cf144f3a6358a91b1bf852c220c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The cost of subsequently acquired nonmonetary assets shall be measured by the consideration paid and not be affected by a previous transaction. Source downloaded (UTC): 2026-09-10T00:55:32.708Z to 2026-09-10T00:55:32.708Z Record version: sha256:cd70c6efb37b5e914dcf4d72f557b278a66a18df0211c5ad6a149fd147cebe88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/610/30/#45-other-presentation-matters) SEC content: no ##### [610-30-45-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:32.708Z to 2026-09-10T00:55:32.708Z Record version: sha256:f1dfd4938d5b3adc1ebfc753155788a41bf7d6efa523cc0044925ed8269b8510 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gain or loss resulting from an involuntary conversion of a nonmonetary asset to monetary assets shall be classified in accordance with the provisions of Subtopic 220-20. Source downloaded (UTC): 2026-09-10T00:55:35.874Z to 2026-09-10T00:55:35.874Z Record version: sha256:dd4d65b88270abf30ba870be35f390864748af90e9ee8017e899484b11c3cc16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 610-30-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/610/30/#60-relationships) SEC content: no #### Income Taxes ##### [610-30-60-1](https://asc.understandingaccounting.org/asc/610/30/#610-30-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:55:35.874Z to 2026-09-10T00:55:35.874Z Record version: sha256:1416c42b9c0f6362442726e9875ab45c57f4bf258dd43a85de81326762e40621 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on temporary differences resulting from involuntary conversions, see paragraph [740-10-55-66](https://asc.understandingaccounting.org/asc/740/10/#740-10-55-66).