ASC 740-995
U.S. Steamship Entities
740 Income Taxes
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ASC 740-995 formerly provided industry-specific income tax guidance for U.S. steamship entities, which had been permitted to leave unrecognized deferred taxes on statutory reserve deposits that arose in fiscal years beginning before December 15, 1992. Accounting Standards Update No. 2017-15 superseded every paragraph in the subtopic (05-1, 15-1, 25-1, 25-2, 50-1, 50-2), so no guidance remains. Steamship entities now account for income taxes under the general requirements of Topic 740.
Key points (6)
- Every paragraph of Subtopic 740-995 — including 740-995-05-1, 740-995-15-1, 740-995-25-1, 740-995-25-2, 740-995-50-1, and 740-995-50-2 — was superseded by Accounting Standards Update No. 2017-15.
- The subtopic is now an empty shell: it contains no recognition, measurement, or disclosure requirements that can be applied.
- Because the industry-specific exception is gone, U.S. steamship entities apply the general asset and liability approach of Topic 740 to all temporary differences, including those relating to statutory reserve deposits.
- The grandfathered relief that ASU 2017-15 eliminated applied only to unrecognized deferred taxes originating in fiscal years beginning on or before December 15, 1992.
- Any entity that had relied on the superseded guidance must follow the transition and effective-date provisions in ASU 2017-15 rather than the deleted paragraphs.
- Citing 740-995 as live authority in research or on an exam is an error; the Codification retains the numbering only as a placeholder.
For students. This subtopic is a good reminder that the Codification keeps empty placeholders after guidance is withdrawn — the practical takeaway is that steamship entities get no special income tax treatment and fall under general Topic 740. The common mistake is quoting a superseded paragraph as if it were still authoritative because the section headings remain in the Codification.
Machine-generated study aid for ASC 740-995. Check the source paragraphs below.
740-995-00Status
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| Paragraph | Action | Accounting Standards Update | Date |
| Deferred Tax Liability | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| Taxable Temporary Difference | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| Temporary Difference | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| Temporary Difference | Amended | Accounting Standards Update No. 2016-16 | 10/24/2016 |
| 995-740-05-1 | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| 995-740-15-1 | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| 995-740-25-1 | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| 995-740-25-2 | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| 995-740-50-1 | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
| 995-740-50-2 | Superseded | Accounting Standards Update No. 2017-15 | 12/05/2017 |
740-995-05Overview and Background
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740-995-15Scope and Scope Exceptions
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740-995-20Glossary
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740-995-25Recognition
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740-995-50Disclosure
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