{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/810/946/#45-other-presentation-matters","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"810","topic_title":"Consolidation","subtopic":"810-946","subtopic_title":"Financial Services—Investment Companies","section":{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"810-946-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2013-08/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2013-08</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2013-08.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e2fc1cfba716dc53f470247a42753ece2df257ffda1f59de46052040055ce66","downloaded_from":"2026-09-10T01:32:18.622Z","last_downloaded_at":"2026-09-10T01:32:18.622Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478135","source_sha256":"6a348a955c931b06974d41a049439f441cff47f3a4c681484c2f45cf41483810"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e9605c8a904d2782085453d33cd5bcf41439b3420f30829cabf0ce9bb4ddfbc1","downloaded_from":"2026-09-10T01:32:18.622Z","last_downloaded_at":"2026-09-10T01:32:18.622Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478135","source_sha256":"6a348a955c931b06974d41a049439f441cff47f3a4c681484c2f45cf41483810"}},{"block":null,"heading":"Application of Consolidation Guidance","paragraphs":[{"citation":"810-946-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_15A180C0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Except as discussed in the following paragraph, consolidation by an investment company of an investee that is not an investment company is not appropriate. </span></span><span class=\"sfragment\" id=\"sfr_15A181B9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Rather, those controlling financial interests held by an investment company shall be measured in accordance with guidance in Subtopic <a altsource=\"GUID-A6090D92-4639-4944-A915-CF0B845423C2.ditamap\" class=\"ditamap\">946-320</a>, which requires investments in debt and equity securities to be subsequently measured at <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"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.\"><span>fair value</span></a>.</span></span></div></div>","snippet":"Except as discussed in the following paragraph, consolidation by an investment company of an investee that is not an investment company is not appropriate. Rather, those controlling financial interests held by an investm…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cadf75c66adc45484ec60c1470908c813239c014c43563cd1fa2040aa04d437e","downloaded_from":"2026-09-10T01:32:18.622Z","last_downloaded_at":"2026-09-10T01:32:18.622Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478135","source_sha256":"6a348a955c931b06974d41a049439f441cff47f3a4c681484c2f45cf41483810"}},{"citation":"810-946-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_15A1829E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An exception to the general principle in the preceding paragraph occurs if the investment company has an investment in an operating entity that provides services to the investment company, for example, an investment adviser or transfer agent (see paragraph <a href=\"/asc/946/10/#946-10-55-5\" class=\"xref\">946-10-55-5</a>). </span></span><span class=\"sfragment\" id=\"sfr_15A1837B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In those cases, the purpose of the investment is to provide services to the investment company rather than to realize a gain on the sale of the investment. </span></span><span class=\"sfragment\" id=\"sfr_15A1844A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If an investment company holds a controlling financial interest in such an operating entity, </span></span><span class=\"sfragment\" id=\"sfr_15A18500-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">the investment company should consolidate that investee, rather than measuring the investment at fair value.</span></span></div></div>","snippet":"An exception to the general principle in the preceding paragraph occurs if the investment company has an investment in an operating entity that provides services to the investment company, for example, an investment advi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:153261b8495941de82d37eab3ef91b4fe65f852632ee245da0de94f88d68af1d","downloaded_from":"2026-09-10T01:32:18.622Z","last_downloaded_at":"2026-09-10T01:32:18.622Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478135","source_sha256":"6a348a955c931b06974d41a049439f441cff47f3a4c681484c2f45cf41483810"}},{"citation":"810-946-45-4","para":"45-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/asc/810/946/#810-946-45-4\" class=\"xref\">Paragraphs 946-810-45-4 through 45-24 superseded by Accounting Standards Update No. 2013-08</a>.</div></div>","snippet":"Paragraphs 946-810-45-4 through 45-24 superseded by Accounting Standards Update No. 2013-08.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:566e1b13289b52f37916faaf50e3e673b0dfa802bd4838c827153bde43a3b5df","downloaded_from":"2026-09-10T01:32:18.622Z","last_downloaded_at":"2026-09-10T01:32:18.622Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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