# ASC 810-946: Consolidation — Financial Services—Investment Companies Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/810/946/) 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): 2026-09-10T01:32:06.472Z to 2026-09-10T01:32:24.826Z Record version: sha256:c2f5550289eca59edc135d5d87e1b355aeb328afe0c7fe09fce3766b6eb66cd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946: Consolidation — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "This Subtopic tells an investment company (as defined in Topic 946) when consolidation applies. The general rule: an investment company does not consolidate an investee that is not itself an investment company, even if it holds a controlling financial interest; instead that interest is measured at fair value under Subtopic 946-320. The one exception is a controlling financial interest in an operating entity that provides services to the investment company (e.g., an investment adviser or transfer agent), which must be consolidated.", "key_points": [ "Consolidation by an investment company of an investee that is not an investment company is not appropriate; the controlling financial interest is instead measured at fair value under Subtopic 946-320 (810-946-45-2).", "Investments in debt and equity securities held by an investment company are subsequently measured at fair value rather than consolidated (810-946-45-2).", "Exception: if an investment company holds a controlling financial interest in an operating entity that provides services to it (investment adviser, transfer agent), it must consolidate that investee rather than carry it at fair value (810-946-45-3; see 946-10-55-5).", "The rationale for the exception is that the purpose of such an investment is to obtain services, not to realize a gain on sale of the investment (810-946-45-3).", "Scope follows the Overall Subtopic scope for investment companies in Section 946-10-15 (810-946-15-1).", "Much of the former guidance (presentation paragraphs 45-4 through 45-24, disclosures 50-1 through 50-4, and implementation guidance 55-1 through 55-12) was superseded by ASU 2013-08." ], "categories": [ "Consolidation", "Fair value", "Industry-specific", "Subsequent measurement" ], "audience_level": "intermediate", "student_note": "Exam trap: control normally forces consolidation, but investment companies are the classic carve-out — a majority-owned portfolio company stays at fair value. Remember the flip side: a controlled service provider (adviser, transfer agent) IS consolidated because the investment exists to provide services, not investment returns.", "related_topics": [ "946-10", "946-320", "810-10", "820" ], "key_concepts": [ "investment company", "controlling financial interest", "consolidation exception", "fair value measurement of investments", "operating entity providing services", "investment adviser", "transfer agent" ] } ``` Source downloaded (UTC): 2026-09-10T01:32:06.472Z to 2026-09-10T01:32:06.472Z Record version: sha256:edf01741f48f378f788659f7b7e7da0feafccca5c30ee7bdec065393d0a8d3ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/810/946/#00-status) SEC content: no ##### [810-946-00-1](https://asc.understandingaccounting.org/asc/810/946/#810-946-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:06.472Z to 2026-09-10T01:32:06.472Z Record version: sha256:4fcb39626ee51efdb30f6941350ee289ee4459424eba42aa58b3f6146d0cc0f5 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
Investment CompanySupersededAccounting Standards Update No. 2013-0806/07/2013
Related PartiesSupersededAccounting Standards Update No. 2013-0806/07/2013
946-810-05-1AmendedAccounting Standards Update No. 2013-0806/07/2013
946-810-15-1AmendedAccounting Standards Update No. 2013-0806/07/2013
946-810-15-2SupersededAccounting Standards Update No. 2013-0806/07/2013
946-810-45-1SupersededAccounting Standards Update No. 2013-0806/07/2013
946-810-45-2AmendedAccounting Standards Update No. 2013-0806/07/2013
946-810-45-3AmendedAccounting Standards Update No. 2013-0806/07/2013
946-810-45-4 through 45-24SupersededAccounting Standards Update No. 2013-0806/07/2013
946-810-50-1 through 50-4SupersededAccounting Standards Update No. 2013-0806/07/2013
946-810-55-1 through 55-12SupersededAccounting Standards Update No. 2013-0806/07/2013
Source downloaded (UTC): 2026-09-10T01:32:09.466Z to 2026-09-10T01:32:09.466Z Record version: sha256:8ab9c8429c4afc2fc2694e55efb4556035611f5eac88ff34775bbe39aa2de952 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/810/946/#05-overview-and-background) SEC content: no ##### [810-946-05-1](https://asc.understandingaccounting.org/asc/810/946/#810-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:09.466Z to 2026-09-10T01:32:09.466Z Record version: sha256:0ab2bdadd14fb157b27735615fb5003d56b0e547132c4c3566b268c670decd12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the application of consolidation guidance in Topic 810 by an investment company. Source downloaded (UTC): 2026-09-10T01:32:13.047Z to 2026-09-10T01:32:13.047Z Record version: sha256:c17ca11ea3aacbb41f467634ca30a69a085806bf73334803cff4ff7fbdc8876d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/810/946/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [810-946-15-1](https://asc.understandingaccounting.org/asc/810/946/#810-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:13.047Z to 2026-09-10T01:32:13.047Z Record version: sha256:7b3d954b8ed08bec7bf315cadd1a114c8da2787ac8c024b35e083c900fdaecac 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. ##### [810-946-15-2](https://asc.understandingaccounting.org/asc/810/946/#810-946-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:13.047Z to 2026-09-10T01:32:13.047Z Record version: sha256:0a82a69a0e0c4f0e7f83d2c2ec7b1088db1a9988efdcefe663a1297a0fb22cac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2013-08](https://asc.understandingaccounting.org/updates/asu-2013-08/). Source downloaded (UTC): 2026-09-10T01:32:18.622Z to 2026-09-10T01:32:18.622Z Record version: sha256:a5b29e0b4f71b3fe9f1d8e2f203833e2ca8b0e379b3fbffa6d5504fddc61dfaf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/810/946/#45-other-presentation-matters) SEC content: no ##### [810-946-45-1](https://asc.understandingaccounting.org/asc/810/946/#810-946-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:18.622Z to 2026-09-10T01:32:18.622Z Record version: sha256:1e2fc1cfba716dc53f470247a42753ece2df257ffda1f59de46052040055ce66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2013-08](https://asc.understandingaccounting.org/updates/asu-2013-08/). #### Application of Consolidation Guidance ##### [810-946-45-2](https://asc.understandingaccounting.org/asc/810/946/#810-946-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:18.622Z to 2026-09-10T01:32:18.622Z Record version: sha256:cadf75c66adc45484ec60c1470908c813239c014c43563cd1fa2040aa04d437e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 investment company shall be measured in accordance with guidance in Subtopic 946-320, which requires investments in debt and equity securities to be subsequently measured at [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."). ##### [810-946-45-3](https://asc.understandingaccounting.org/asc/810/946/#810-946-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:18.622Z to 2026-09-10T01:32:18.622Z Record version: sha256:153261b8495941de82d37eab3ef91b4fe65f852632ee245da0de94f88d68af1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [946-10-55-5](https://asc.understandingaccounting.org/asc/946/10/#946-10-55-5)). 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. If an investment company holds a controlling financial interest in such an operating entity, the investment company should consolidate that investee, rather than measuring the investment at fair value. ##### [810-946-45-4](https://asc.understandingaccounting.org/asc/810/946/#810-946-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:18.622Z to 2026-09-10T01:32:18.622Z Record version: sha256:566e1b13289b52f37916faaf50e3e673b0dfa802bd4838c827153bde43a3b5df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 946-810-45-4 through 45-24 superseded by Accounting Standards Update No. 2013-08](https://asc.understandingaccounting.org/asc/810/946/#810-946-45-4). Source downloaded (UTC): 2026-09-10T01:32:20.462Z to 2026-09-10T01:32:20.462Z Record version: sha256:b437f0be9fba44a400f03c607ea9be4170df77fefe498fbe4097b38602e540ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/810/946/#50-disclosure) SEC content: no ##### [810-946-50-1](https://asc.understandingaccounting.org/asc/810/946/#810-946-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:20.462Z to 2026-09-10T01:32:20.462Z Record version: sha256:55163a4d87bcf6e1d9d236db36fc128214db93b777413fc2fd7a0f3e269044d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 946-810-50-1 through 50-4 superseded by Accounting Standards Update No. 2013-08](https://asc.understandingaccounting.org/asc/810/946/#810-946-50-1). Source downloaded (UTC): 2026-09-10T01:32:22.214Z to 2026-09-10T01:32:22.214Z Record version: sha256:e3d96b0984c2756fe1e327fa5bd89637cfcb264c99aef9b16f887bce665e7e1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/810/946/#55-implementation-guidance-and-illustrations) SEC content: no ##### [810-946-55-1](https://asc.understandingaccounting.org/asc/810/946/#810-946-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:22.214Z to 2026-09-10T01:32:22.214Z Record version: sha256:a1d4dfc30d3ed490d3a5adff27097639991205a77db49f27642f49744f8155b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 946-810-55-1 through 55-12 superseded by Accounting Standards Update No. 2013-08](https://asc.understandingaccounting.org/asc/810/946/#810-946-55-1). Source downloaded (UTC): 2026-09-10T01:32:24.826Z to 2026-09-10T01:32:24.826Z Record version: sha256:bae2ba2b8c3382cad5d653c0981b2387f2d35e932507d96f887569bd53a9eb73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-946-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/810/946/#65-transition-and-open-effective-date-information) SEC content: no ##### [810-946-65-1](https://asc.understandingaccounting.org/asc/810/946/#810-946-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:32:24.826Z to 2026-09-10T01:32:24.826Z Record version: sha256:fbe5903d11eb48cb4881a363d3ed388b495074eb5fa19d1bce8761cc7012df32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).