# ASC Topic 825: Financial Instruments Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/825/) 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): 2026-09-10T01:44:11.504Z to 2026-09-10T01:46:07.638Z Record version: sha256:49fad56872b64c6c57672b07051932a535f45677e61bec7ac86088783294d040 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 825 is the "overall" home for financial instruments guidance that does not fit elsewhere, and it does two main things: it permits the irrevocable, instrument-by-instrument fair value option (FVO) for eligible financial assets, financial liabilities, firm commitments, and written loan commitments with changes in earnings, and it requires incremental disclosures about fair value of financial instruments, concentrations of credit risk, and market risk (825-10). Subtopic 825-20 adds a distinct rule that registration payment arrangements are a separate unit of account — the underlying instrument is measured under other GAAP (e.g., 815-10, 815-40, 835-30) ignoring the contingency, while the contingent obligation follows the loss-contingency model of 450-20. The industry Subtopics tailor this framework: depository and lending institutions disclose face/contract amount, nature and terms, and collateral policies for instruments with off-balance-sheet credit risk (825-942); insurance entities record investment contract receipts as liabilities rather than revenue and disclose reinsurance credit-risk concentrations (825-944); and not-for-profit health care entities report FVO unrealized gains and losses within the performance indicator (825-954). The unifying idea is election-based fair value measurement plus transparency about risks (credit, market, off-balance-sheet) that the balance sheet alone does not reveal. Source downloaded (UTC): 2026-09-10T01:44:11.504Z to 2026-09-10T01:44:42.941Z Record version: sha256:b4f4f5714b9de319e179f9b784857e37f3e60d2f3356e6b68bfbf2faf50b42f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10: Financial Instruments — Overall ### Machine-generated study aids ```json { "summary": "ASC 825-10 provides the overall guidance for financial instruments, containing two sets of rules: the fair value option (FVO), which lets any entity irrevocably elect, at specified election dates, to measure eligible financial assets, financial liabilities, firm commitments, and written loan commitments at fair value with changes in earnings; and incremental disclosures about the fair value of financial instruments, concentrations of credit risk, and market risk. The FVO is elected instrument by instrument, only for an entire instrument (not specific risks or cash flows), and is intended to mitigate earnings volatility from measuring related assets and liabilities differently without applying hedge accounting.", "key_points": [ "Eligible items for the fair value option include recognized financial assets and liabilities, firm commitments involving only financial instruments, written loan commitments, certain insurance contracts and warranties settleable by paying a third party, and host financial instruments from bifurcated nonfinancial hybrids (825-10-15-4).", "The fair value option may never be elected for consolidated subsidiaries or consolidated VIE interests, pension/postretirement and other deferred compensation obligations, lease-related financial assets and liabilities, demand deposit liabilities, or instruments classified in shareholders' equity including temporary equity (825-10-15-5).", "The election is instrument by instrument, irrevocable absent a new election date, and must apply to an entire instrument rather than specified risks, cash flows, or portions (825-10-25-2); upfront costs and fees are expensed as incurred (825-10-25-3).", "Election dates are limited to first recognition of the item, entering an eligible firm commitment, loss of specialized fair value accounting, a change to equity method accounting, or an event requiring one-time fair value remeasurement such as a business combination, consolidation/deconsolidation, or significant debt modification (825-10-25-4 through 25-5).", "Exceptions to instrument-by-instrument election require applying the option to the whole loan balance for multiple advances, to all financial interests in an equity-method investee, to all claims and obligations under an insurance/reinsurance contract, and to a base insurance contract's features or riders (825-10-25-7).", "Fair value amounts must be presented separately from similar items measured on another basis, parenthetically or as separate line items (825-10-45-1B through 45-2); business entities report unrealized gains and losses in earnings (825-10-45-4), but the portion of a liability's fair value change from instrument-specific credit risk goes to OCI and is recognized in net income at derecognition (825-10-45-5, 45-6).", "Public business entities must disclose the fair value of financial instruments and their hierarchy level (825-10-50-10), all entities must disclose significant concentrations of credit risk (825-10-50-20 through 50-21), and FVO users must provide the disclosures in 825-10-50-28 through 50-32, including reasons for election, fair value versus unpaid principal balance, and credit-risk-related gains and losses." ], "categories": [ "Financial instruments", "Fair value", "Disclosure", "Presentation" ], "audience_level": "intermediate", "student_note": "Exam questions usually test which items are eligible or ineligible for the fair value option, the limited election dates, and the fact that the election is irrevocable and applies to a whole instrument; the most common mistake is forgetting that for elected financial liabilities the instrument-specific credit risk portion of the fair value change goes to OCI, not net income, until derecognition.", "related_topics": [ "820", "815-15", "825-20", "321", "326", "323" ], "key_concepts": [ "fair value option", "eligible items", "election date", "irrevocable election", "instrument-specific credit risk", "concentrations of credit risk", "fair value hierarchy disclosure", "unpaid principal balance" ] } ``` Source downloaded (UTC): 2026-09-10T01:44:11.504Z to 2026-09-10T01:44:11.504Z Record version: sha256:9d301663753a81ad9dab7b1ba2f95ad7fba689a5a18d7afa656fb66b44c46381 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/825/10/#00-status) SEC content: no ##### [825-10-00-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:11.504Z to 2026-09-10T01:44:11.504Z Record version: sha256:46666051c9cc7947d3b8f4d7f168d9d2424640c17d0b957ce751c9cb3eb2ecb1 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
Conduit Debt SecuritiesSupersededAccounting Standards Update No. 2016-0101/05/2016
Environmental CreditAddedAccounting Standards Update No. 2026-0205/19/2026
Environmental Credit ObligationAddedAccounting Standards Update No. 2026-0205/19/2026
ExchangeAddedAccounting Standards Update No. 2026-0205/19/2026
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (2nd def.)AddedAccounting Standards Update No. 2016-1912/14/2016
Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
Fully Benefit-Responsive Investment ContractAddedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
Income TaxesAddedAccounting Standards Update No. 2026-0205/19/2026
Nonpublic Entity (4th def.)SupersededAccounting Standards Update No. 2016-0101/05/2016
Nonreciprocal Transfer (1st def.)AddedAccounting Standards Update No. 2026-0205/19/2026
Publicly Traded Company (1st def.)SupersededAccounting Standards Update No. 2016-0101/05/2016
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2016-0101/05/2016
Registration Payment ArrangementAddedAccounting Standards Update No. 2016-1912/14/2016
ReinsuranceAddedAccounting Standards Update No. 2016-1912/14/2016
Reinsurance RecoverableAddedAccounting Standards Update No. 2016-1912/14/2016
825-10-05-1AmendedAccounting Standards Update No. 2016-1912/14/2016
825-10-05-2AmendedAccounting Standards Update No. 2016-1306/16/2016
825-10-05-3AmendedAccounting Standards Update No. 2016-1912/14/2016
825-10-05-3AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-15-4AmendedAccounting Standards Update No. 2016-1912/14/2016
825-10-15-5AmendedAccounting Standards Update No. 2026-0205/19/2026
825-10-15-5AmendedAccounting Standards Update No. 2020-0608/05/2020
825-10-15-5AmendedAccounting Standards Update No. 2016-0202/25/2016
825-10-15-7AmendedAccounting Standards Update No. 2025-1212/17/2025
825-10-15-7AmendedAccounting Standards Update No. 2016-1408/18/2016
825-10-25-4AmendedAccounting Standards Update No. 2025-1212/17/2025
825-10-25-4AmendedAccounting Standards Update No. 2016-1306/16/2016
825-10-25-4AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-25-7AmendedAccounting Standards Update No. 2016-1912/14/2016
825-10-25-13AddedAccounting Standards Update No. 2011-0405/12/2011
825-10-35-1 through 35-3
SupersededAccounting Standards Update No. 2016-1306/16/2016
825-10-35-4SupersededAccounting Standards Update No. 2016-0101/05/2016
825-10-45-1SupersededAccounting Standards Update No. 2016-0101/05/2016
825-10-45-1AAmendedAccounting Standards Update No. 2016-1912/14/2016
825-10-45-1AAddedAccounting Standards Update No. 2016-0101/05/2016
825-10-45-1BAddedAccounting Standards Update No. 2016-0101/05/2016
825-10-45-4 through 45-7
AddedAccounting Standards Update No. 2016-0101/05/2016
825-10-45-5AmendedAccounting Standards Update No. 2018-0302/28/2018
825-10-45-5AAddedAccounting Standards Update No. 2018-0302/28/2018
825-10-50-2AAmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-50-3 through 50-7
SupersededAccounting Standards Update No. 2016-0101/05/2016
825-10-50-3AmendedAccounting Standards Update No. 2013-0302/07/2013
825-10-50-3AmendedAccounting Standards Update No. 2012-0410/01/2012
825-10-50-3AmendedAccounting Standards Update No. 2014-0301/16/2014
825-10-50-3AAddedAccounting Standards Update No. 2013-0302/07/2013
825-10-50-8AmendedMaintenance Update 2018-12 (PDF)09/10/2018
825-10-50-8AmendedAccounting Standards Update No. 2016-0403/08/2016
825-10-50-8AmendedAccounting Standards Update No. 2016-0202/25/2016
825-10-50-8AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-50-8AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
825-10-50-8AmendedAccounting Standards Update No. 2014-0301/16/2014
825-10-50-10AmendedAccounting Standards Update No. 2025-1112/08/2025
825-10-50-10AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-50-10AmendedAccounting Standards Update No. 2011-0405/12/2011
825-10-50-11AmendedAccounting Standards Update No. 2025-1112/08/2025
825-10-50-11AAddedAccounting Standards Update No. 2020-0608/05/2020
825-10-50-12AmendedAccounting Standards Update No. 2025-1112/08/2025
825-10-50-14SupersededAccounting Standards Update No. 2016-0101/05/2016
825-10-50-16 through 50-19
SupersededAccounting Standards Update No. 2016-0101/05/2016
825-10-50-20AmendedAccounting Standards Update No. 2025-1112/08/2025
825-10-50-21AmendedAccounting Standards Update No. 2025-1112/08/2025
825-10-50-22AmendedAccounting Standards Update No. 2016-1912/14/2016
825-10-50-23AAmendedAccounting Standards Update No. 2020-0303/09/2020
825-10-50-28AmendedAccounting Standards Update No. 2025-1112/08/2025
825-10-50-30 through 50-32
AmendedAccounting Standards Update No. 2025-1112/08/2025
825-10-50-30AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-50-31AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-55-3 through 55-5
SupersededAccounting Standards Update No. 2016-0101/05/2016
825-10-55-3AmendedAccounting Standards Update No. 2009-0508/26/2009
825-10-55-8AmendedAccounting Standards Update No. 2016-1306/16/2016
825-10-55-8AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-55-10AmendedAccounting Standards Update No. 2016-1306/16/2016
825-10-55-10AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-55-10AmendedAccounting Standards Update No. 2011-0405/12/2011
825-10-55-12AmendedAccounting Standards Update No. 2016-0101/05/2016
825-10-65-2AmendedAccounting Standards Update No. 2018-0302/28/2018
825-10-65-2AddedAccounting Standards Update No. 2016-0101/05/2016
825-10-65-3AddedAccounting Standards Update No. 2018-0302/28/2018
825-10-65-4AddedAccounting Standards Update No. 2018-0907/16/2018
825-10-65-5AmendedAccounting Standards Update No. 2020-0303/09/2020
825-10-65-5AddedAccounting Standards Update No. 2019-0404/25/2019
825-10-65-6AddedAccounting Standards Update No. 2020-0101/16/2020
825-10-65-7AddedAccounting Standards Update No. 2020-0303/09/2020
Source downloaded (UTC): 2026-09-10T01:44:14.996Z to 2026-09-10T01:44:14.996Z Record version: sha256:81dc44b5be077d4006b66f478db02cbb973b4a8e4b08df6d7c6d94126815193c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/825/10/#05-overview-and-background) SEC content: no ##### [825-10-05-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:14.996Z to 2026-09-10T01:44:14.996Z Record version: sha256:5acae71f8fbc9ffccd02326d3687d032e3ac6062bd380c048f7203a6dc2d37e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Financial Instruments Topic provides guidance on matters related broadly to all [financial instruments](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."). This Topic includes the following Subtopics: 1. a Overall 2. b [Registration Payment Arrangements](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)."). ##### [825-10-05-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:14.996Z to 2026-09-10T01:44:14.996Z Record version: sha256:e083139073b3d18194cd618f67634302db1e844f245bd223855b3a32bf021d14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic presents guidance in the following Subsections: 1. a General 2. b Fair Value Option. The General Subsections provide guidance on the fair value option and certain disclosures about financial instruments. ##### [825-10-05-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:14.996Z to 2026-09-10T01:44:14.996Z Record version: sha256:78a6e75c23ea79d838d5725a2d0f40253e371cdbc24e8076cf8d8db3f9162238 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains various Topics, and in some cases individual Subtopics, that provide (but are not necessarily limited to) guidance on accounting for different financial instruments, including [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity."), [financial liabilities](https://asc.understandingaccounting.org/glossary/f/#financial-liability "A contract that imposes on one entity an obligation to do either of the following:Deliver cash or another financial instrument to a second entity Exchange other financial instruments on potentially unfavorable terms with the second entity."), and equity. Those Topics and Subtopics include, among others, all of the following: 1. a Cash and Cash Equivalents 2. b Receivables 3. c Investments—Debt Securities 4. cc Investments—Equity Securities 5. d Investments—Equity Method and Joint Ventures 6. e Liabilities 7. f Commitments 8. g Contingencies 9. h Guarantees 10. i Debt 11. j Distinguishing Liabilities from Equity 12. k Equity 13. l Derivatives and Hedging 14. m Leases 15. n Transfers and Servicing 16. o Each of the Financial Services Industry Topics. ##### [825-10-05-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:14.996Z to 2026-09-10T01:44:14.996Z Record version: sha256:c63ed81a5f24222b797c7b649b314e86bd0ef7e44132b9cfa4c30964a13d1743 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Various Topics in the Codification provide guidance that applies without regard to whether the instrument is, or transaction involves, a financial instrument. ### Fair Value Option ##### [825-10-05-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:14.996Z to 2026-09-10T01:44:14.996Z Record version: sha256:5a9e37aa3810402a73438e87e933ae77482eb17286e010e61e050c4e12217be1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Fair Value Option Subsections of this Subtopic address both of the following: 1. a Circumstances in which entities may choose, at specified election dates, to measure eligible items 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.") (the fair value option) 2. b Presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. ##### [825-10-05-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:14.996Z to 2026-09-10T01:44:14.996Z Record version: sha256:de6248d86d5e21cf69af950799e962d5624c96fa43af4ffadcd68983fe186a1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Topic 820 for guidance on fair value measurements. Source downloaded (UTC): 2026-09-10T01:44:16.715Z to 2026-09-10T01:44:16.715Z Record version: sha256:fecd3176e843b3d01d2e2a6852362b707d3b7d84061d2f16dbfd4796cbbd1195 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/825/10/#10-objectives) SEC content: no ### Fair Value Option ##### [825-10-10-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:16.715Z to 2026-09-10T01:44:16.715Z Record version: sha256:1fb3f60f394f1067fe54bc20ad3d42478234f6c02c8fe3126d344caf3e3a49ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the guidance in the Fair Value Option Subsections of this Subtopic is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:8067e2a6be50cff614c7092561180325344bb962848ed71b4d534b40397e938a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/825/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [825-10-15-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:74e94537b99c383f23bcf892e14f9c9f5ecd70e813f9a5217153294d1fb7d2e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope for this Subtopic, with specific exceptions noted in the other Subsections of this Section. #### Entities ##### [825-10-15-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:6ce100d86a104d9c2ea45106f0c8e0f3f7a5a2b03f2c5da9f780ef3f04ab5f57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. ### Fair Value Option #### Overall Guidance ##### [825-10-15-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:e124690ebef30a2293a6e721e43d192236730c8465700d4560a9cd43a95a4ca6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Fair Value Option Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, with specific qualifications and exceptions noted below. #### Instruments ##### [825-10-15-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:62ea12e62503eece4380a0929b0c6f2508efded1203cb6afec110739eed0917e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All entities may elect 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.") option for any of the following eligible items: 1. a A recognized [financial asset](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") and [financial liability](https://asc.understandingaccounting.org/glossary/f/#financial-liability "A contract that imposes on one entity an obligation to do either of the following:Deliver cash or another financial instrument to a second entity Exchange other financial instruments on potentially unfavorable terms with the second entity."), except any listed in the following paragraph 2. b A [firm commitment](https://asc.understandingaccounting.org/glossary/f/#firm-commitment "An agreement with an unrelated party, binding on both parties and usually legally enforceable, with the following characteristics:The agreement specifies all significant terms, including the quantity to be exchanged, the fixed price, and the timing of the transaction. The fixed price may be expressed as a specified amount of an entity's functional currency or of a foreign currency. It may also be expressed as a specified interest rate or specified effective yield. The binding provisions of an agreement are regarded to include those legal rights and obligations codified in the laws to which such an agreement is subject. A price that varies with the market price of the item that is the subject of the firm commitment cannot qualify as a fixed price. For example, a price that is specified in terms of ounces of gold would not be a fixed price if the market price of the item to be purchased or sold under the firm commitment varied with the price of gold. The agreement includes a disincentive for nonperformance that is sufficiently large to make performance probable. In the legal jurisdiction that governs the agreement, the existence of statutory rights to pursue remedies for default equivalent to the damages suffered by the nondefaulting party, in and of itself, represents a sufficiently large disincentive for nonperformance to make performance probable for purposes of applying the definition of a firm commitment.") that would otherwise not be recognized at inception and that involves only financial instruments (for example, a forward purchase contract for a loan that is not readily convertible to cash—that commitment involves only financial instruments—a loan and cash—and would not otherwise be recognized because it is not a derivative instrument) 3. c A written loan commitment 4. d The rights and obligations under an insurance contract that has both of the following characteristics: 1. 1 The insurance contract is not 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.") (because it requires or permits the insurer to provide goods or services rather than a cash settlement). 2. 2 The insurance contract's terms permit the insurer to settle by paying a third party to provide those goods or services. 5. e The rights and obligations under a warranty that has both of the following characteristics: 1. 1 The warranty is not a financial instrument (because it requires or permits the warrantor to provide goods or services rather than a cash settlement). 2. 2 The warranty's terms permit the warrantor to settle by paying a third party to provide those goods or services. 6. f A host financial instrument resulting from the separation of an embedded nonfinancial derivative from a nonfinancial hybrid instrument under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1), subject to the scope exceptions in the following paragraph (for example, an instrument in which the value of the bifurcated embedded derivative is payable in cash, services, or merchandise but the debt host is payable only in cash). ##### [825-10-15-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-5) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:94dc51ee3fbefeb9cf6dc0a064ed07eb71fe4d642329d74233a02d092305334d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No entity may elect the fair value option for any of the following financial assets and financial liabilities: 1. a An investment in a subsidiary that the entity is required to consolidate. 2. b An interest in a variable interest entity (VIE) that the entity is required to consolidate. 3. c Employers' and plans' obligations (or assets representing net overfunded positions) for pension benefits, other postretirement benefits (including health care and life insurance benefits), postemployment benefits, employee stock option and stock purchase plans, and other forms of deferred compensation arrangements, as defined in Topics 420; 710; 712; 715; 718; and 960. 4. d Financial assets and financial liabilities recognized under leases as defined in Subtopic 842-10. (This exception does not apply to a guarantee of a third-party lease obligation or a contingent obligation arising from a cancelled lease.) 5. e Deposit liabilities, withdrawable on demand, of banks, savings and loan associations, credit unions, and other similar depository institutions. 6. f Financial instruments that are, in whole or in part, classified by the issuer as a component of shareholders' equity (including temporary equity). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [818-10-65-1](https://asc.understandingaccounting.org/asc/818/10/#818-10-65-1)No entity may elect the fair value option for any of the following financial assets and financial liabilities: 1. a An investment in a subsidiary that the entity is required to consolidate. 2. b An interest in a variable interest entity (VIE) that the entity is required to consolidate. 3. c Employers' and plans' obligations (or assets representing net overfunded positions) for pension benefits, other postretirement benefits (including health care and life insurance benefits), postemployment benefits, employee stock option and stock purchase plans, and other forms of deferred compensation arrangements, as defined in Topics 420; 710; 712; 715; 718; and 960. 4. d Financial assets and financial liabilities recognized under leases as defined in Subtopic 842-10. (This exception does not apply to a guarantee of a third-party lease obligation or a contingent obligation arising from a cancelled lease.) 5. e Deposit liabilities, withdrawable on demand, of banks, savings and loan associations, credit unions, and other similar depository institutions. 6. f Financial instruments that are, in whole or in part, classified by the issuer as a component of shareholders' equity (including temporary equity). 7. g [Environmental credit obligation](https://asc.understandingaccounting.org/glossary/e/#environmental-credit-obligation "(P) December 16, 2027; (N) December 16, 2028818-10-65-1A regulatory compliance obligation arising from existing or enacted laws, statutes, or ordinances represented to prevent, control, reduce, or remove emissions or other pollution that may be settled with environmental credits. Obligations within the scope of Subtopic 410-30 are not environmental credit obligations.") liabilities that can be settled in cash that are accounted for in accordance with Topic 818. #### Other Considerations ##### [825-10-15-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:4bcf5856cbaee543b2ca3d8ea827a0aa38b450f9148b6c8a0f9b21d44a6fd368 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Fair Value Option Subsections: 1. a Do not affect any existing accounting literature that requires certain assets and liabilities to be carried at fair value 2. b Do not establish requirements for recognizing and measuring dividend income, interest income, or interest expense 3. c Do not eliminate disclosure requirements included in other Subtopics, including requirements for disclosures about fair value measurements included in Topic 820. ##### [825-10-15-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-7) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:19.031Z to 2026-09-10T01:44:19.031Z Record version: sha256:a2b8fc332647580b756ddc5a99fe32a68450126a657f742ffbbf1359df202cdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-profit entities (NFPs) shall apply the provisions of the Fair Value Option Subsections with the following modifications: 1. a References to an income statement shall be replaced with references to a statement of activities, statement of changes in net assets, or statement of operations. 2. b References to earnings shall be replaced with references to changes in net assets, except as indicated in (c). 3. c Paragraph [954-825-45-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-45-1) explains that health care entities subject to Topic 954 shall report unrealized gains and losses on items for which the fair value option has been elected within the performance indicator or as a part of discontinued operations, as appropriate. Unlike other NFPs, health care entities subject to that Topic present performance indicators analogous to income from continuing operations. Consistent with the provisions of Subtopic 958-10, NFPs may present such gains and losses either within or outside of other intermediate measures of operations unless such gains or losses are part of discontinued operations. This includes intermediate measures of operations presented by NFPs other than health care entities and any additional intermediate measures of operations presented within the performance indicator by not-for-profit health care entities. 4. d The disclosure requirements in paragraph [825-10-50-30](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-30) shall apply not only with respect to the effect on performance indicators or other intermediate measures of operations, if presented, but also with respect to the effect on the change in each of the net asset classes (without donor restrictions or with donor restrictions), as applicable. 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)Not-for-profit entities (NFPs) shall apply the provisions of the Fair Value Option Subsections with the following modifications: 1. a References to an income statement shall be replaced with references to a statement of activities, statement of changes in net assets, or statement of operations. 2. b References to earnings shall be replaced with references to changes in net assets, except as indicated in (c). 3. c Paragraph [954-825-45-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-45-1) explains that health care entities subject to Topic 954 shall report unrealized gains and losses on items for which the fair value option has been elected within the performance indicator or as a part of discontinued operations, as appropriate. Unlike other NFPs, health care entities subject to that Topic present performance indicators analogous to income from continuing operations. Consistent with the provisions of paragraphs [958-220-45-9 through 45-12](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-9) , NFPs may present such gains and losses either within or outside of other intermediate measures of operations unless such gains or losses are part of discontinued operations. This includes intermediate measures of operations presented by NFPs other than health care entities and any additional intermediate measures of operations presented within the performance indicator by not-for-profit health care entities. 4. d The disclosure requirements in paragraph [825-10-50-30](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-30) shall apply not only with respect to the effect on performance indicators or other intermediate measures of operations, if presented, but also with respect to the effect on the change in each of the net asset classes (without donor restrictions or with donor restrictions), as applicable. Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:504372e91eba993f32d5716926cb97175db55a7186f2d66eda0c44a8e5182a56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/825/10/#25-recognition) SEC content: no ### Fair Value Option #### Overall Guidance ##### [825-10-25-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:fb8f0a1ad0329e75864a1108c8dafd4a1d6b09d278a11e5af24abfcb7f946aa0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic permits all entities to choose, at specified election dates, to measure eligible items 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.") (the fair value option). ##### [825-10-25-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:e259f72601f8a9348dfe8c2ea1a5036591eddc6a05ed75dace3c1e1b9d131ca6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The decision about whether to elect the fair value option: 1. a Shall be applied instrument by instrument, except as discussed in paragraph [825-10-25-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-7) 2. b Shall be irrevocable (unless a new election date occurs, as discussed in paragraph [825-10-25-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-4)) 3. c Shall be applied only to an entire instrument and not to only specified risks, specific cash flows, or portions of that instrument. An entity may decide whether to elect the fair value option for each eligible item on its election date. Alternatively, an entity may elect the fair value option according to a preexisting policy for specified types of eligible items. ##### [825-10-25-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:84badb888b737fa1a806c75555b70b9bd91ba503b09491dca9deb0e14b2e07b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upfront costs and fees related to items for which the fair value option is elected shall be recognized in earnings as incurred and not deferred. ##### [825-10-25-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-4) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:bbe6e390d04abdd9dc3bf120359413bd6b7e8d3d4b22e4340c4d12a868129753 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may choose to elect the fair value option for an eligible item only on the date that one of the following occurs: 1. a The entity first recognizes the eligible item. 2. b The entity enters into an eligible [firm commitment](https://asc.understandingaccounting.org/glossary/f/#firm-commitment "An agreement with an unrelated party, binding on both parties and usually legally enforceable, with the following characteristics:The agreement specifies all significant terms, including the quantity to be exchanged, the fixed price, and the timing of the transaction. The fixed price may be expressed as a specified amount of an entity's functional currency or of a foreign currency. It may also be expressed as a specified interest rate or specified effective yield. The binding provisions of an agreement are regarded to include those legal rights and obligations codified in the laws to which such an agreement is subject. A price that varies with the market price of the item that is the subject of the firm commitment cannot qualify as a fixed price. For example, a price that is specified in terms of ounces of gold would not be a fixed price if the market price of the item to be purchased or sold under the firm commitment varied with the price of gold. The agreement includes a disincentive for nonperformance that is sufficiently large to make performance probable. In the legal jurisdiction that governs the agreement, the existence of statutory rights to pursue remedies for default equivalent to the damages suffered by the nondefaulting party, in and of itself, represents a sufficiently large disincentive for nonperformance to make performance probable for purposes of applying the definition of a firm commitment."). 3. c Financial assets that have been reported at fair value with unrealized gains and losses included in earnings because of specialized accounting principles cease to qualify for that specialized accounting (for example, a transfer of assets from a subsidiary subject to Subtopic 946-10 to another entity within the consolidated reporting entity not subject to that Subtopic). 4. d The accounting treatment for an investment in another entity changes because the investment becomes subject to the equity method of accounting. 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 5. e An event that requires an eligible item to be measured at fair value at the time of the event but does not require fair value measurement at each reporting date after that, excluding the recognition of impairment under lower-of-cost-or-market accounting or accounting for securities in accordance with either Topic 321 on investments—equity securities or Topic 326 on measurement of credit losses. 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)An entity may choose to elect the fair value option for an eligible item only on the date that one of the following occurs: 1. a The entity first recognizes the eligible item. 2. b The entity enters into an eligible [firm commitment](https://asc.understandingaccounting.org/glossary/f/#firm-commitment "An agreement with an unrelated party, binding on both parties and usually legally enforceable, with the following characteristics:The agreement specifies all significant terms, including the quantity to be exchanged, the fixed price, and the timing of the transaction. The fixed price may be expressed as a specified amount of an entity's functional currency or of a foreign currency. It may also be expressed as a specified interest rate or specified effective yield. The binding provisions of an agreement are regarded to include those legal rights and obligations codified in the laws to which such an agreement is subject. A price that varies with the market price of the item that is the subject of the firm commitment cannot qualify as a fixed price. For example, a price that is specified in terms of ounces of gold would not be a fixed price if the market price of the item to be purchased or sold under the firm commitment varied with the price of gold. The agreement includes a disincentive for nonperformance that is sufficiently large to make performance probable. In the legal jurisdiction that governs the agreement, the existence of statutory rights to pursue remedies for default equivalent to the damages suffered by the nondefaulting party, in and of itself, represents a sufficiently large disincentive for nonperformance to make performance probable for purposes of applying the definition of a firm commitment."). 3. c Financial assets that have been reported at fair value with unrealized gains and losses included in earnings because of specialized accounting principles cease to qualify for that specialized accounting (for example, a transfer of assets from a subsidiary subject to Subtopic 946-10 to another entity within the consolidated reporting entity not subject to that Subtopic). 4. d The accounting treatment for an investment in another entity changes because the investment becomes subject to the equity method of accounting. 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 5. e An event that requires an eligible item to be measured at fair value at the time of the event but does not require fair value measurement at each reporting date after that, excluding the recognition of impairment under lower-of-cost-or-market accounting, the recognition of other-than-temporary impairment for equity method investments in accordance with Topic 323 on investments—equity method and joint ventures, or accounting for securities in accordance with either Topic 321 on investments—equity securities or Topic 326 on measurement of credit losses. ##### [825-10-25-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:0aa624ae3bfa607773359dfaf3b0371c98ab9d958dd2dded1ad3511f90527616 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some of the events that require remeasurement of eligible items at fair value, initial recognition of eligible items, or both, and thereby create an election date for the fair value option as discussed in paragraph [825-10-25-4(e)](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-4) are: 1. a Business combinations, as defined in Subtopic 805-10 2. b Consolidation or deconsolidation of a subsidiary or VIE 3. c Significant modifications of debt, as defined in Subtopic 470-50. ##### [825-10-25-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:400b0bf8416805cf8bd87fed996871558ac1c6777ec8437818e004aba545adae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquirer, parent, or primary beneficiary decides whether to apply the fair value option to eligible items of an acquiree, subsidiary, or consolidated VIE, but that decision applies only in the consolidated financial statements. Fair value option choices made by an acquired entity, subsidiary, or VIE continue to apply in separate financial statements of those entities if they issue separate financial statements. ##### [825-10-25-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:624007f95fb99dc76c2a02add3c64ce32ca14a15b747202aca798504dff9f2bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value option may be elected for a single eligible item without electing it for other identical items with the following four exceptions: 1. a If multiple advances are made to one borrower pursuant to a single contract (such as a line of credit or a construction loan) and the individual advances lose their identity and become part of a larger loan balance, the fair value option shall be applied only to the larger balance and not to each advance individually. 2. b If the fair value option is applied to an investment that would otherwise be accounted for under the equity method of accounting, it shall be applied to all of the investor's financial interests in the same entity (equity and debt, including guarantees) that are eligible items. 3. c If the fair value option is applied to an eligible insurance or [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contract, it shall be applied to all claims and obligations under the contract. 4. d If the fair value option is elected for an insurance contract (base contract) for which integrated or nonintegrated contract features or coverages (some of which are called riders) are issued either concurrently or subsequently, the fair value option also must be applied to those features or coverages. The fair value option cannot be elected for only the nonintegrated contract features or coverages, even though those features or coverages are accounted for separately under Subtopic 944-30. Paragraph [944-30-35-30](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-30) defines a nonintegrated contract feature in an insurance contract. For purposes of applying this Subtopic, neither an integrated contract feature or coverage nor a nonintegrated contract feature or coverage qualifies as a separate instrument. ##### [825-10-25-8](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:173d601a2f9648f82fb127defcb0f5e10e7141e6902866a05659253a46720fa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [825-10-25-9](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:01e34a58fe2896da53f3e7841e50e54a231e5fe279d491978a43ae1d983e7733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [825-10-25-10](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:ae4247d512f39152330bd02deade6a69a0c7062173b0690dc951c3292993d1db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value option need not be applied to all instruments issued or acquired in a single transaction (except as required by paragraph [825-10-25-7(a) through (b)](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-7)). For example, investors in shares of stock and registered bonds might apply the fair value option to only some of the shares or bonds issued or acquired in a single transaction. For this purpose, an individual bond is considered to be the minimum denomination of that debt security. ##### [825-10-25-11](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:654eb0abceff4c1d56d843046b274d1c2537dfcdf82d545ce25f9d190b2a21c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.") that is legally a single contract may not be separated into parts for purposes of applying the fair value option. In contrast, a loan syndication arrangement may result in multiple loans to the same borrower by different lenders. Each of those loans is a separate instrument, and the fair value option may be elected for some of those loans but not others. ##### [825-10-25-12](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:93a7f5e9e4dd3c7bb5a6bcc70787170c30df555c3b75e7d798e99ff7b995bc5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investor in an equity security may elect the fair value option for its entire investment in that equity security, including any fractional shares issued by the investee (for example, fractional shares that are acquired in a dividend reinvestment program). ##### [825-10-25-13](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:23.791Z to 2026-09-10T01:44:23.791Z Record version: sha256:4f84e9f04e59f74ca11b3a47fefe86497bf478ec140b385fa1d41149579e49f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the issuer of a [liability issued with an inseparable third-party credit enhancement](https://asc.understandingaccounting.org/glossary/l/#liability-issued-with-an-inseparable-third-party-credit-enhancement "A liability that is issued with a credit enhancement obtained from a third party, such as debt that is issued with a financial guarantee from a third party that guarantees the issuer's payment obligation.") (for example, debt that is issued with a contractual third-party guarantee), the unit of accounting for the liability measured or disclosed at fair value does not include the third-party credit enhancement. This paragraph does not apply to the holder of the issuer's credit-enhanced liability or to any of the following financial instruments or transactions: 1. a A credit enhancement granted to the issuer of the liability (for example, deposit insurance provided by a government or government agency) 2. b A credit enhancement provided between reporting entities within a consolidated or combined group (for example, between a parent and its subsidiary or between entities under common control). Source downloaded (UTC): 2026-09-10T01:44:26.774Z to 2026-09-10T01:44:26.774Z Record version: sha256:9432cbeae33604d40b8cdd7bf78189d7315a04288b7b42dbf6b711790322c5ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/825/10/#35-subsequent-measurement) SEC content: no ##### [825-10-35-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:26.774Z to 2026-09-10T01:44:26.774Z Record version: sha256:b7f9433d650e1049a2fd4c700c108d0392a99c5725047f2f999943f6b19df40e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [825-10-35-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:26.774Z to 2026-09-10T01:44:26.774Z Record version: sha256:5180f248d3dfa284f1b2ea8ce58b324a2c869b9fa850f70c08fe871088da1bad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [825-10-35-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:26.774Z to 2026-09-10T01:44:26.774Z Record version: sha256:119b3f60bb6c25cb91d899fefd390ebe122a8d388df69ece31fbe5624b6b6a4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ### Fair Value Option ##### [825-10-35-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:26.774Z to 2026-09-10T01:44:26.774Z Record version: sha256:d8a0cadd98e43043dc39871ab9df82fd5054c991086d747b6b5f6d5833e2e5bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:445e4330bc37b752148c2a8f5f92fe2325cf45ea5be58c13ddcb7b20f2d0cbf3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/825/10/#45-other-presentation-matters) SEC content: no #### Statement of Financial Position ##### [825-10-45-1A](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-1A) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:cefff563db1f849b734582b63ee2381378ab71d729e50141bf7a7da37ba61469 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall separately present [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") and [financial liabilities](https://asc.understandingaccounting.org/glossary/f/#financial-liability "A contract that imposes on one entity an obligation to do either of the following:Deliver cash or another financial instrument to a second entity Exchange other financial instruments on potentially unfavorable terms with the second entity.") by measurement category and form of financial asset (that is, securities or loans and receivables) in the statement of financial position or the accompanying notes to the financial statements. ### Fair Value Option ##### [825-10-45-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:7fb3864fefbf37de7c571bdebf95fc2926ae68e07bb0c017d55514f8189f0085 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-45-1B](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-1B) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:f5bc89b8de4512807ba7a4a9ca8d424ca27d78a0b718fc47784a3280179942b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities shall report assets and liabilities that are 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.") pursuant to the fair value option in this Subtopic in a manner that separates those reported fair values from the carrying amounts of similar assets and liabilities measured using another measurement attribute. ##### [825-10-45-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:f760a2f81886724b3786dbff99afd3fb2601a8e3f902c6d61c0281297465a0e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To accomplish that, an entity shall either: 1. a Present the aggregate of fair value and non-fair-value amounts in the same line item in the statement of financial position and parenthetically disclose the amount measured at fair value included in the aggregate amount 2. b Present two separate line items to display the fair value and non-fair-value carrying amounts. #### Statement of Cash Flows ##### [825-10-45-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:9b5e49ab458107cb745e7f14916d14b7a0bfd26939f8abd8dd94544cafe5783d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities shall classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose as required by Topic 230. #### Statement of Comprehensive Income ##### [825-10-45-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:7181d6348a1533f4cb57462b67e4d69162079ac880de0990199ecaa312421a1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A business entity shall report unrealized gains and losses on items for which 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.") option has been elected in earnings (or another performance indicator if the business entity does not report earnings) at each subsequent reporting date. ##### [825-10-45-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:3b311c9545063fa047288ca816201844aa2137ce1150db020e52275b9aa9e014 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity has designated a financial liability under the fair value option in accordance with this Subtopic or Subtopic 815-15 on embedded derivatives, the entity shall measure the financial liability at fair value with qualifying changes in fair value recognized in net income. The entity shall present separately in other comprehensive income the portion of the total change in the fair value of the liability that results from a change in the instrument-specific credit risk. The entity may consider the portion of the total change in fair value that excludes the amount resulting from a change in a base market risk, such as a risk-free rate or a benchmark interest rate, to be the result of a change in instrument-specific credit risk. Alternatively, an entity may use another method that it considers to faithfully represent the portion of the total change in fair value resulting from a change in instrument-specific credit risk. The entity shall apply the method consistently to each financial liability from period to period. ##### [825-10-45-5A](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-5A) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:ff9e7d563ffe99a24461cc0e4157e487f1ce5df37c79fdfcf0df9b54d43f10af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When changes in instrument-specific credit risk are presented separately from other changes in fair value of a liability denominated in a currency other than an entity's functional currency, the component of the change in fair value of the liability resulting from changes in instrument-specific credit risk shall first be measured in the liability's currency of denomination, and then the cumulative amount shall be adjusted to reflect the current exchange rate in accordance with paragraph [830-20-35-2](https://asc.understandingaccounting.org/asc/830/20/#830-20-35-2). The remeasurement of the component of the change in fair value of the liability resulting from the cumulative changes in instrument-specific credit risk shall be presented in accumulated other comprehensive income. ##### [825-10-45-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:1f59baa1d418de6d20a66b5cde4062b17e9626b81bfea7dc23a4f3b752539bb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon derecognition of a financial liability designated under the fair value option in accordance with this Subtopic, an entity shall include in net income the cumulative amount of the gain or loss on the financial liability that resulted from changes in instrument-specific credit risk. ##### [825-10-45-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:28.896Z to 2026-09-10T01:44:28.896Z Record version: sha256:2e0d6ab10dac4fa8ec85488df4a7ef91f6dfbf83907e0d3571ee5d6357202583 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraph [825-10-45-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-45-5) does not apply to financial liabilities of a consolidated collateralized financing entity measured using the measurement alternative in paragraphs [810-10-30-10 through 30-15](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-10) and [810-10-35-6 through 35-8](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-6) . Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:dd65139eb4ac50abe9d2fdc59a2473da646e4e3bfd865e1c881d1f2145e78674 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) SEC content: no ##### [825-10-50-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:969b23529359218981e519bd9cbcf4e0620bf7c3e7d66908649242647e4a6871 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [825-10-05-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-05-3) identifies various Topics within the Codification that address financial instruments matters. Those and other Topics in the Codification require disclosures about specific financial instruments. This Subsection addresses incremental disclosures about all of the following: 1. a [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 financial instruments 2. b Concentrations of credit risk of all financial instruments 3. c Market risk of all financial instruments. #### Applicability of This Subsection ##### [825-10-50-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:d4414d75e5d8bbf92e3f116fe3313957a3766b4d172dfa8b60db23aaf9cdebe0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance discusses the applicability of the disclosure requirements in this Subsection to entities and transactions. ##### [825-10-50-2A](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-2A) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:c696c675324f3bd0d0ea7e6bab04c1fa2c8a71a3b9c2cbaa73e7135f5fc6da18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure guidance in this Subsection applies to [public business entities](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."), except for the disclosure guidance in paragraphs [825-10-50-20 through 50-23](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-20) , which applies to all entities. For interim reporting periods, the disclosure guidance in paragraphs [825-10-50-20 through 50-23](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-20) is optional for those entities that do not meet the definition of a public business entity. ##### [825-10-50-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:15e30788fc2e41c0e17019bfe303f41fb5f759b69c444cd335242f7c88ab956c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-3A](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-3A) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:edc97013677081ba9340293f52bd07f8d41b5c4b0479f979595b2cd4af1e5a22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:05a5170e6070b4edd9902feb3ad6b80cd5bc531c6f062bb8d73a2596d00f32a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:419edc8eee7194a399aa8cdfd8bf569ff8eefa6dad7756a106daca5b52b801d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:04b794a134aa3ff8d8f22b04704880a4000f64a61541440185f9a5ebde45301d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:430de4588504bc66c0de68f3daa279987a798e8868f89b4757d5f7731bff898c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-8](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:24eda38a0facf211c2f4397dead22a1d5e47599019ebf74618876828818d248f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In part, this Subsection requires disclosures about fair value for all financial instruments, whether recognized or not recognized in the statement of financial position, except that the disclosures about fair value prescribed in paragraphs [825-10-50-10 through 50-13](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-10) and [825-10-50-15](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-15) are not required for any of the following: 1. a Employers' and plans' obligations for pension benefits, other postretirement benefits including health care and life insurance benefits, postemployment benefits, employee stock option and stock purchase plans, and other forms of deferred compensation arrangements (see Topics 710, 712, 715, 718, and 960) 2. b Substantively extinguished debt subject to the disclosure requirements of Subtopic 405-20 3. c Insurance contracts, other than financial guarantees (including financial guarantee insurance contracts within the scope of Topic 944) and investment contracts, as discussed in Subtopic 944-20 4. d Lease contracts as defined in Topic 842 (a contingent obligation arising out of a cancelled lease and a guarantee of a third-party lease obligation are not lease contracts and are subject to the disclosure requirements in this Subsection) 5. e Warranty obligations (see Topic 450 and the Product Warranties Subsections of Topic 460) 6. f Unconditional purchase obligations as defined in paragraph [440-10-50-2](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-2) 7. g Investments accounted for under the equity method in accordance with the requirements of Topic 323 8. h Noncontrolling interests and equity investments in consolidated subsidiaries (see Topic 810) 9. i Equity instruments issued by the entity and classified in stockholders' equity in the statement of financial position (see Topic 505) 10. j Receive-variable, pay-fixed interest rate swaps for which the simplified hedge accounting approach is applied (see Topic 815) 11. k [Fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness.") held by an employee benefit plan. 12. l Investments in equity securities accounted for under the measurement guidance for equity securities without readily determinable fair values (see Topic 321) 13. m Trade receivables and payables due in one year or less 14. n Deposit liabilities with no defined or contractual maturities. 15. o Liabilities resulting from the sale of prepaid stored-value products within the scope of paragraph [405-20-40-3](https://asc.understandingaccounting.org/asc/405/20/#405-20-40-3). ##### [825-10-50-9](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:2e43e6b3d44aad028d458b2ca21a1de716f090cbb4f0545eb044b5fcd3347028 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally accepted accounting principles (GAAP) require disclosure of or subsequent measurement at fair value for many classes of financial instruments. Those requirements are not superseded or modified by this Subsection. #### Fair Value of Financial Instruments ##### [825-10-50-10](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-10) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:f345a0d2cfdfd24646372f8a5e3547d4f439dbc2ee35cec98d20d90485b06cac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity shall disclose either in the body of the financial statements or in the accompanying notes, the fair value of financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3). 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). For financial instruments recognized at fair value in the statement of financial position, the disclosure requirements of Topic 820 also apply. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, a reporting entity shall disclose either in the body of the financial statements or in the accompanying notes, the fair value of financial instruments and the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3). 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). For financial instruments recognized at fair value in the statement of financial position, the disclosure requirements of Topic 820 also apply. ##### [825-10-50-11](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-11) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:be647cd07d7188869eb8f72de336f2e7a92baf916fc4a4e857bee6b440c1a708 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fair value disclosed in the notes shall be presented together with the related carrying amount in a form that clarifies both of the following: 1. a Whether the fair value and carrying amount represent assets or liabilities 2. b How the carrying amounts relate to what is reported in the statement of financial position. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, fair value disclosed in the notes shall be presented together with the related carrying amount in a form that clarifies both of the following: 1. a Whether the fair value and carrying amount represent assets or liabilities 2. b How the carrying amounts relate to what is reported in the statement of financial position. ##### [825-10-50-11A](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-11A) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:898ca7498378bf9a0a609e49ebca0d562293cdc2752c909ac75984fd84f1fc8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [470-20-50-1D](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1D) for additional guidance on disclosures about fair value of convertible debt instruments. ##### [825-10-50-12](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-12) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:1be613943ef38035832f871850f4e7485eacd40541add562b582a987e353f6f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of financial instruments is disclosed in more than a single note, one of the notes shall include a summary table. The summary table shall contain the fair value and related carrying amounts and cross-references to the location(s) of the remaining disclosures required by this Section. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If the fair value of financial instruments is disclosed in more than a single note, one of the notes shall include a summary table in interim and annual reporting periods. The summary table shall contain the fair value and related carrying amounts and cross-references to the location(s) of the remaining disclosures required by this Section. ##### [825-10-50-13](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:f41b437a7ad3afb6a506a98e0488a845607ff019e2285484e7932df820a1296e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not prohibit an entity from disclosing separately the estimated fair value of any of its nonfinancial intangible and tangible assets and nonfinancial liabilities. ##### [825-10-50-14](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:eb42018790f075a5898f11a45c5436023474b5365b5b66d736f068e950e342f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-15](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:b65fba0c28e968cd8c4d9f2bf2a2f08ddde0fe15b669bf9a0e9703439971e470 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In disclosing the fair value of 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."), an entity shall not net that fair value with the fair value of other financial instruments—even if those financial instruments are of the same class or are otherwise considered to be related (for example, by a risk management strategy)—except to the extent that the offsetting of carrying amounts in the statement of financial position is permitted under either of the following: 1. a The general principle in paragraph [210-20-45-1](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-1) 2. b The exceptions for master netting arrangements in paragraph [815-10-45-5](https://asc.understandingaccounting.org/asc/815/10/#815-10-45-5) and for amounts related to certain repurchase and reverse repurchase agreements in paragraphs [210-20-45-11 through 45-17](https://asc.understandingaccounting.org/asc/210/20/#210-20-45-11) . ##### [825-10-50-16](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:3998c48e19fb813131904215364ca7d42e0e431c170c5ac23121c077c8a7acba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-17](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:37dcaafe092b3a14c64d248c9ba82c56c5e975462ad6547fb6ce00624230437d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-18](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:b5fcde1c9b07eb3a48ba511582defae15dbd97924efed970d8cd94eac788ee50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-50-19](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:7f38a37ec0b4cea8057383f1837821978f50e72891e917feb042cbf7fa6b2dff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Concentrations of Credit Risk of All Financial Instruments ##### [825-10-50-20](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-20) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:b1cc3c31437be7dcc832e3c2e586345506c2e322a5bf5139a87e20eb58699c10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as indicated in paragraph [825-10-50-22](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-22), an entity shall disclose all significant concentrations of credit risk arising from all financial instruments, whether from an individual counterparty or groups of counterparties. Throughout paragraphs [825-10-50-20 through 50-21](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-20), the term _financial instruments_ includes derivative instruments accounted for under Topic 815. Group concentrations of credit risk exist if a number of counterparties are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, except as indicated in paragraph [825-10-50-22](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-22), an entity shall disclose all significant concentrations of credit risk arising from all financial instruments, whether from an individual counterparty or groups of counterparties. Throughout paragraphs [825-10-50-20 through 50-21](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-20), the term _financial instruments_ includes derivative instruments accounted for under Topic 815. Group concentrations of credit risk exist if a number of counterparties are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. ##### [825-10-50-21](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-21) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:fd4b40334e8c68a941bb238e25d383cbc5c07d1e4068f04e2d7dd9c7ba8f4ffb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as indicated in paragraph [825-10-50-22](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-22), all of the following shall be disclosed about each significant concentration: 1. a Information about the (shared) activity, region, or economic characteristic that identifies the concentration 2. b The maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity 3. c With respect to collateral, all of the following: 1. 1 The entity's policy of requiring collateral or other security to support financial instruments subject to credit risk 2. 2 Information about the entity's access to that collateral or other security 3. 3 The nature and a brief description of the collateral or other security supporting those financial instruments. 4. d With respect to master netting arrangements, all of the following: 1. 1 The entity's policy of entering into master netting arrangements to mitigate the credit risk of financial instruments 2. 2 Information about the arrangements for which the entity is a party 3. 3 A brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, except as indicated in paragraph [825-10-50-22](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-22), all of the following shall be disclosed about each significant concentration: 1. a Information about the (shared) activity, region, or economic characteristic that identifies the concentration 2. b The maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity 3. c With respect to collateral, all of the following: 1. 1 The entity's policy of requiring collateral or other security to support financial instruments subject to credit risk 2. 2 Information about the entity's access to that collateral or other security 3. 3 The nature and a brief description of the collateral or other security supporting those financial instruments. 4. d With respect to master netting arrangements, all of the following: 1. 1 The entity's policy of entering into master netting arrangements to mitigate the credit risk of financial instruments 2. 2 Information about the arrangements for which the entity is a party 3. 3 A brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk. ##### [825-10-50-22](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-22) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:0cba865c4bc440cb0ac85b40c51005b1b1dc8f13f636d75a125f1e9e46bc0665 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The requirements of paragraph [825-10-50-21](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-21) do not apply to the following financial instruments, whether written or held: 1. a The financial instruments described in paragraph [825-10-50-8(a); (c); (e); and (f)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-8), except for [reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits.") and prepaid [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") premiums 2. b Financial instruments of a pension plan, including plan assets, if subject to the accounting and reporting requirements of Topic 715. Financial instruments of a pension plan, other than the obligations for pension benefits, if subject to the accounting and reporting requirements of Topic 960, are subject to the requirements of paragraphs [825-10-50-20 through 50-21](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-20) . #### Market Risk of All Financial Instruments ##### [825-10-50-23](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-23) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:227d03f7b3dad9df1848b105ab0d52023df843e12fd7fb5c968608e28c2a0c7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity is encouraged, but not required, to disclose quantitative information about the market risks of financial instruments that is consistent with the way it manages or adjusts those risks. Appropriate ways of reporting that quantitative information will differ for different entities and will likely evolve over time as management approaches and measurement techniques evolve. Possibilities include disclosing any of the following: 1. a More details about current positions and perhaps activity during the period 2. b The hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices 3. c A gap analysis of interest rate repricing or maturity dates 4. d The duration of the financial instruments 5. e The entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year. This list is not exhaustive, and an entity is encouraged to develop other ways of reporting quantitative information. ### Fair Value Option #### Applicability of This Subsection ##### [825-10-50-23A](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-23A) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:8e7c6f71dd8f86c72d8156d276f93d8633c211c0098f8ef1d703dc206e9a2aff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance discusses the applicability of the disclosure requirements in this Subsection to all entities that have elected the fair value option. ##### [825-10-50-24](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-24) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:36cab4855ed572507f39e0305717fc766252ed2f02c7bb4410140c36376825ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The principal objectives of the disclosures required by paragraphs [825-10-50-28 through 50-32](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) are to facilitate both of the following comparisons: 1. a Comparisons between entities that choose different measurement attributes for similar assets and liabilities 2. b Comparisons between assets and liabilities in the financial statements of an entity that selects different measurement attributes for similar assets and liabilities. ##### [825-10-50-25](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-25) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:1792006518309ca15a6fab867cba9b3721898e60fc562fed11a7a28424a5147a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those disclosure requirements are expected to result in the following: 1. a Information to enable users of its financial statements to understand management's reasons for electing or partially electing 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.") option 2. b Information to enable users to understand how changes in fair values affect earnings for the period 3. c The same information about certain items (such as equity investments and nonperforming loans) that would have been disclosed if the fair value option had not been elected 4. d Information to enable users to understand the differences between fair values and contractual cash flows for certain items. To meet those objectives, the disclosures described in paragraphs [825-10-50-28 through 50-32](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) are required for items measured at fair value under the option in this Subtopic and the option in paragraph [815-15-25-4](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-4). Those disclosures are not required for securities classified as trading securities under Topic 320, life settlement contracts measured at fair value pursuant to Subtopic 325-30, or servicing rights measured at fair value pursuant to Subtopic 860-50. Those Subtopics include disclosure requirements not affected by this Subtopic. ##### [825-10-50-26](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-26) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:4df850ee099e31ebad8f61242c35006a69251116dd579b585cf6fe3ba5a93196 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities shall provide the disclosures required by paragraphs [825-10-50-28 through 50-32](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) in both interim and annual financial statements. ##### [825-10-50-27](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-27) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:743ca1c1fc3985eb0358e0202afcc61874564338256d97df03865aa12e0b82b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirements in paragraphs [825-10-50-28 through 50-30](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) do not eliminate disclosure requirements included in other Subtopics, including other disclosure requirements relating to fair value measurement. Entities are encouraged but are not required to present the disclosures required by this Subtopic in combination with related fair value information required to be disclosed by other Subtopics (for example, the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of this Section and Topic 820). #### Required Disclosures as of Each Date for Which an Interim or Annual Statement of Financial Position Is Presented ##### [825-10-50-28](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:cdc488fdeb2c5e7b861e831a81088aa9e7cc2a4085d825d6a70758ccfaea7cdb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As of each date for which a statement of financial position is presented, entities shall disclose all of the following: 1. a Management's reasons for electing a fair value option for each eligible item or group of similar eligible items 2. b If the fair value option is elected for some but not all eligible items within a group of similar eligible items, both of the following: 1. 1 A description of those similar items and the reasons for partial election 2. 2 Information to enable users to understand how the group of similar items relates to individual line items on the statement of financial position. 3. c For each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, both of the following: 1. 1 Information to enable users to understand how each line item in the statement of financial position relates to major classes of assets and liabilities presented in accordance with the fair value disclosure requirements of Topic 820. (Paragraph [825-10-50-11](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-11) also requires an entity to relate carrying amounts that are disclosed in accordance with that paragraph to what is reported in the statement of financial position.) 2. 2 The aggregate carrying amount of items included in each line item in the statement of financial position that are not eligible for the fair value option, if any. 4. d The difference between the aggregate fair value and the aggregate unpaid principal balance of each of the following: 1. 1 Loans and long-term receivables (other than securities subject to Topic 320) that have contractual principal amounts and for which the fair value option has been elected 2. 2 Long-term debt instruments that have contractual principal amounts and for which the fair value option has been elected. 5. e For loans held as assets for which the fair value option has been elected, all of the following: 1. 1 The aggregate fair value of loans that are 90 days or more past due 2. 2 If the entity's policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status 3. 3 The difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both. 6. f For investments that would have been accounted for under the equity method if the entity had not chosen to apply the fair value option, the information required by paragraph [323-10-50-3](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3) (excluding the disclosures in paragraph [323-10-50-3(a)(3); (b); and (d)](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3)). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)As of each date for which an interim or annual statement of financial position is presented, entities shall disclose all of the following: 1. a Management's reasons for electing a fair value option for each eligible item or group of similar eligible items 2. b If the fair value option is elected for some but not all eligible items within a group of similar eligible items, both of the following: 1. 1 A description of those similar items and the reasons for partial election 2. 2 Information to enable users to understand how the group of similar items relates to individual line items on the statement of financial position. 3. c For each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, both of the following: 1. 1 Information to enable users to understand how each line item in the statement of financial position relates to major classes of assets and liabilities presented in accordance with the fair value disclosure requirements of Topic 820. (Paragraph [825-10-50-11](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-11) also requires an entity to relate carrying amounts that are disclosed in accordance with that paragraph to what is reported in the statement of financial position.) 2. 2 The aggregate carrying amount of items included in each line item in the statement of financial position that are not eligible for the fair value option, if any. 4. d The difference between the aggregate fair value and the aggregate unpaid principal balance of each of the following: 1. 1 Loans and long-term receivables (other than securities subject to Topic 320) that have contractual principal amounts and for which the fair value option has been elected 2. 2 Long-term debt instruments that have contractual principal amounts and for which the fair value option has been elected. 5. e For loans held as assets for which the fair value option has been elected, all of the following: 1. 1 The aggregate fair value of loans that are 90 days or more past due 2. 2 If the entity's policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status 3. 3 The difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both. 6. f For investments that would have been accounted for under the equity method if the entity had not chosen to apply the fair value option, the information required by paragraph [323-10-50-3](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3) (excluding the disclosures in paragraph [323-10-50-3(a)(3); (b); and (d)](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3)). ##### [825-10-50-29](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-29) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:4c94382c4464bff89851dceb5289a4e49d04e660b38ac07bdfda296975814ce9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure in paragraph [825-10-50-28(f)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) applies to investments in common stock, investments in in-substance common stock, and other investments (for example, partnerships and certain limited liability corporations) that both: 1. a Would otherwise be required to be accounted for under the equity method under other generally accepted accounting principles (GAAP) 2. b Would be required to satisfy the disclosure requirements of paragraph [323-10-50-3](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3). When applying paragraph [825-10-50-28(f)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28), an entity shall apply the guidance from paragraphs [323-10-50-2](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-2) and [323-10-50-3(a) and (c)](https://asc.understandingaccounting.org/asc/323/10/#323-10-50-3). #### Required Disclosures for Each Period for Which an Interim or Annual Income Statement Is Presented ##### [825-10-50-30](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-30) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:afd7b577f04df2ed6ed6e33c5f0c5be71848f939f2543e86097d43a9f12f4324 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which an income statement is presented, entities shall disclose all of the following about items for which the fair value option has been elected: 1. a For each line item in the statement of financial position, the amounts of gains and losses from fair value changes included in earnings during the period and in which line in the income statement those gains and losses are reported. This Subtopic does not preclude an entity from meeting this requirement by disclosing amounts of gains and losses that include amounts of gains and losses for other items measured at fair value, such as items required to be measured at fair value. 2. b A description of how interest and dividends are measured and where they are reported in the income statement. This Subtopic does not address the methods used for recognizing and measuring the amount of dividend income, interest income, and interest expense for items for which the fair value option has been elected. 3. c For loans and other receivables held as assets, both of the following: 1. 1 The estimated amount of gains or losses included in earnings during the period attributable to changes in instrument-specific credit risk 2. 2 How the gains or losses attributable to changes in instrument-specific credit risk were determined. 4. d For liabilities, all of the following about the effects of the instrument-specific credit risk and changes in it: 1. 1 The amount of change, during the period and cumulatively, of the fair value of the liability that is attributable to changes in the instrument-specific credit risk 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. 3 How the gains and losses attributable to changes in instrument-specific credit risk were determined. 4. 4 If a liability is settled during the period, the amount, if any, recognized in other comprehensive income that was recognized in net income at settlement. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each interim or annual period for which an income statement is presented, entities shall disclose all of the following about items for which the fair value option has been elected: 1. a For each line item in the statement of financial position, the amounts of gains and losses from fair value changes included in earnings during the period and in which line in the income statement those gains and losses are reported. This Subtopic does not preclude an entity from meeting this requirement by disclosing amounts of gains and losses that include amounts of gains and losses for other items measured at fair value, such as items required to be measured at fair value. 2. b A description of how interest and dividends are measured and where they are reported in the income statement. This Subtopic does not address the methods used for recognizing and measuring the amount of dividend income, interest income, and interest expense for items for which the fair value option has been elected. 3. c For loans and other receivables held as assets, both of the following: 1. 1 The estimated amount of gains or losses included in earnings during the period attributable to changes in instrument-specific credit risk 2. 2 How the gains or losses attributable to changes in instrument-specific credit risk were determined. 4. d For liabilities, all of the following about the effects of the instrument-specific credit risk and changes in it: 1. 1 The amount of change, during the period and cumulatively, of the fair value of the liability that is attributable to changes in the instrument-specific credit risk 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). 3. 3 How the gains and losses attributable to changes in instrument-specific credit risk were determined. 4. 4 If a liability is settled during the period, the amount, if any, recognized in other comprehensive income that was recognized in net income at settlement. #### Other Required Disclosures ##### [825-10-50-31](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-31) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:1512077896d9a5ecdd321d3639619e3e8d33b021e60d0dc871349fd518b54134 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In annual periods only, an entity shall disclose the methods and significant assumptions used to estimate the fair value of items for which the fair value option has been elected. For required disclosures about the method(s) and significant assumptions used to estimate the fair value of financial instruments, see paragraph [820-10-50-2(bbb)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) except that an entity is not required to provide the quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by that paragraph. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)In interim and annual periods, an entity shall disclose the methods and significant assumptions used to estimate the fair value of items for which the fair value option has been elected. For required disclosures about the method(s) and significant assumptions used to estimate the fair value of financial instruments, see paragraph [820-10-50-2(bbb)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2) except that an entity is not required to provide the quantitative disclosures about significant unobservable inputs used in fair value measurements categorized within Level 3 of the fair value hierarchy required by that paragraph. ##### [825-10-50-32](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-32) Pending content: yes Source downloaded (UTC): 2026-09-10T01:44:31.419Z to 2026-09-10T01:44:31.419Z Record version: sha256:071c960f20177ba067225df9f4dd007a3e664e315773b8fa4ee3e57478ee8242 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity elects the fair value option at the time one of the events in paragraph [825-10-25-4(d) through (e)](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-4) occurs, the entity shall disclose both of the following in financial statements for the period of the election: 1. a Qualitative information about the nature of the event 2. b Quantitative information by line item in the statement of financial position indicating which line items in the income statement include the effect on earnings of initially electing the fair value option for an item. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If an entity elects the fair value option at the time one of the events in paragraph [825-10-25-4(d) through (e)](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-4) occurs, the entity shall disclose both of the following in interim and annual financial statements for the period of the election: 1. a Qualitative information about the nature of the event 2. b Quantitative information by line item in the statement of financial position indicating which line items in the income statement include the effect on earnings of initially electing the fair value option for an item. Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:9e6588212da049bf0aabe3616370250c8d54675a66437f76c91253c2dbd8fab4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/825/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [825-10-55-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:c20fd652c973af2552edd1f8bd25964d55fd8eaeca452eb2974f840da37d32ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The terms of certain loan products may increase a reporting entity's exposure to credit risk and thereby may result in a concentration of credit risk as that term is used in this Subtopic, either as an individual product type or as a group of products with similar features. Possible shared characteristics on which significant concentrations may be determined include, but are not limited to, the following: 1. a Borrowers subject to significant payment increases 2. b Loans with terms that permit negative amortization 3. c Loans with high loan-to-value ratios. ##### [825-10-55-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:3d094c8880debe6c0fd36a2770a0ee1f75a047abb4b071fcf4971323a7c5fc6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Judgment is required to determine whether loan products have terms that give rise to a concentration of credit risk. Furthermore, an entity may disclose how underwriting procedures are designed to control the credit risk that may arise from future payment increases. ##### [825-10-55-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:01c3df7ef39d7770c815f77b723a30ca2975bb35b608bbd90434503e1f0e6543 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-55-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:80ae74a446ff8df654763725e4f1469da2b277127b3f9b391e84c6bcf1701e84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ##### [825-10-55-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:7e07ba821ef062fafa0608bd1593a8b5ca2b7e41a8526f28510f16236d7ce6da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). ### Fair Value Option #### Illustrations ##### [825-10-55-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:6d7031f168f87e4424f0eeffaed9c433548fa82d1992993d4725368b792104d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate selected disclosure requirements for items reported 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.") under this Subtopic: 1. a The [Fair Value Option Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures with voluntary integration of the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures (Case A) 2. b The [Fair Value Option Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures without voluntary integration of the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50 disclosures (Case B). ##### [825-10-55-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:a7dc84e22382c78a957a5367b479a293fd6e25dc576dace7e1244305837dc199 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A and B represent suggested forms for presenting disclosure information. While the suggested forms of presentation illustrate selected required disclosures, the suggested forms of presentation are not mandated by this Subtopic. Aggregation of related fair value disclosures is encouraged but not required. ##### [825-10-55-8](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:79141296d740b59e1997870ff42924ea4f41afa20ff73e0aac66eafaa24c68b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of financial position for Entity XYZ as of December 31, 20X1, is provided to assist in understanding the illustrative fair value disclosures in Cases A and B. - ![](https://asc.understandingaccounting.org/asc-img/GUID-A9646151-DBF5-4ECF-B2B0-C0068BF139C3-low.gif) ($ in 000s) Description "At December 31, 20X1" Assets Cash and due from banks $38 Deposits with banks 22 Fed funds sold and securities purchased under resale agreements 134 Securities borrowed 75 Trading debt securities 115 Debt securities available-for-sale (net of allowance for credit losses of $3) 75 Debt securities held-to-maturity $34 Allowance for credit losses on held-to-maturity debt securities (2) "Debt securities held-to-maturity, net of allowance for credit losses" 32 Loans and lease receivables ($150 at fair value) $560 Allowance for credit losses on loan and lease receivables (10) "Loans and lease receivables, net of allowance for credit losses" 550 Derivatives 60 Equity investments 125 Premises and equipment 10 Other assets 20 Total assets " $1,256 " Liabilities Non-interest-bearing deposits $143 Interest-bearing deposits 412 Fed funds purchased and securities sold under repurchase agreements 130 Accounts payable 110 Short-term borrowings 128 Long-term debt ($60 at fair value) 200 Total liabilities " 1,123 " Shareholders' equity "Common stock (authorized 5,000,000 shares; issued 3,550,000 shares)" 4 Capital surplus 88 Retained earnings 42 Accumulated other comprehensive income (loss) (1) Total shareholders' equity 133 Total liabilities and shareholders' equity " $1,256 " ##### [825-10-55-9](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:f811bcda34e0baa65a716179f8949062ceec7ae7735c29755500de1e875d0b82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective is to provide information about all of the following: 1. a Assets and liabilities measured at fair value on a recurring basis (as required by Subtopic 820-10) 2. b Changes in fair values of assets and liabilities for which the fair value option has been elected in a manner that relates to the statement of financial position (as required by this Subtopic) 3. c Fair value estimates and corresponding carrying amounts for major categories of assets and liabilities that include items measured at fair value on a recurring basis (in accordance with the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50). ##### [825-10-55-10](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:e6cc45dd144734f1491a8b1adfa61e9b49af6bf648ae144aa6a5a8fad81a715b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table represents the fair value tabular disclosure required by paragraph [820-10-50-2(b)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2), supplemented to do both of the following: 1. a Provide information about where in the income statement changes in fair values of assets and liabilities reported at fair value are included in earnings 2. b Voluntarily integrate selected disclosures required annually by the [General Subsection](https://asc.understandingaccounting.org/asc/825/10/#50-disclosure) of 825-10-50. Disclosures required by paragraphs [825-10-50-28(c)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) and [825-10-50-30(a)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-30) are illustrated in the narrative disclosure that follows the table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-C05AF468-3E0A-48BD-AEF2-CA7CC0E98E54-low.gif) ($ in 000s) "Fair Value Measurements at December 31, 20X1, Using" "Changes in Fair Values for the 12-Month Period Ended December 31, 20X1, for Items Measured at Fair Value Pursuant to Election of the Fair Value Option" Description Total Carrying Amount in Statement of Financial Position 12/31/X1 (a) Fair Value Estimate 12/31/X1 (b) Assets or Liabilites Measured at Fair Value 12/31/X1 Quoted Prices in Active Markets for Identical Assets (Level 1) "Significant Other Observable Inputs (Level 2)" "Significant Unobservable Inputs (Level 3)" Trading Gains and Losses Other Gains and Losses Interest lncome on Loans Interest Expense on Long-Term Debt Total Changes in Fair Values Included in Current-Period Earnings Total Changes in Fair Values Included in Other Comprehensive Income Trading debt securities $115 $115 $115 $105 $10 $10 (c) $10 Available-for-sale debt securities, net 75 75 75 75 "Loans, net" 400 412 150 - 100 $50 $(3) $10 7 Derivatives 60 60 60 25 15 20 5 (c) 5 Equity investments 125 125 125 \* 50 25 50 (18) (18) Long-term debt (200) (206) (60) (40) (20) 13 $(4) 5 4 (\*) Includes investments that would otherwise be accounted for under the equity method of accounting. "Loans are included in loans and lease receivables in the statement of financial position. As of December 31, 20X1, approximately $160,000 of lease receivables are included in loans and lease receivables in the statement of financial position and are not eligible for the fair value option." (a) This column discloses carrying amount information required annually by this Subtopic only for major categories of assets and liabilities that include items measured at fair value. (b) "This column discloses fair value estimates required annually by this Subtopic only for major categories of assets and liabilities that include items measured at fair value. This Subtopic requires an entity to disclose fair value estimates and related carrying amounts for all financial instruments within the scope of this Subtopic. Paragraph 825-10-50-12 requires that if an entity discloses the fair value of financial instruments in more than a single note, one of the notes include a summary table (not presented in this Example)." (c) This Subtopic does not require disclosure of the amounts in the Trading Gains and Losses column nor does it preclude disclosure of these amounts. These amounts are shown for completeness. ##### [825-10-55-11](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:8b642a69920c782043a1b257ffafa6a0b5948f08f960c8fc5c6ea3e58e707245 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity might provide either of the following additional disclosures required by paragraph [825-10-50-28(a) through (b)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) after the following table: 1. a Management's reasons for electing a fair value option for each eligible item or group of similar eligible items 2. b If the fair value option is elected for some but not all eligible items within a group of similar eligible items, both of the following: 1. 1 A description of those similar items and the reasons for partial election 2. 2 Information to enable users to understand how the group of similar items relates to individual line items on the statement of financial position. ##### [825-10-55-12](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:389c8865c025c7c86dc2887c65995520a4de5f67dacdb428837ca6234abad0b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates an alternative presentation that does not integrate disclosures required annually by this Subtopic or the additional gain and loss amounts voluntarily displayed in the table in Case A. The following table represents the fair value hierarchy table set forth in Topic 820, supplemented to provide information about where in the income statement changes in fair values of assets and liabilities for which the fair value option has been elected are included in earnings. Disclosures required by paragraphs [825-10-50-28(c)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) and [825-10-50-30(a)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-30) are illustrated in the narrative disclosure that follows the table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-8196356D-EAD3-49C0-A61F-F946DD7EA76E-low.gif) ($ in 000s) "Fair Value Measurements at December 31, 20X1, Using" "Changes in Fair Values for the 12-Month Period Ended December 31, 20X1, for Items Measured at Fair Value Pursuant to Election of the Fair Value Option" Description Fair Value Measure-ments 12/31/X1 "Quoted Prices in Active Markets for Identical Assets (Level 1)" "Significant Other Observable Inputs (Level 2)" "Significant Unobservable Inputs (Level 3)" Other Gains and Losses Interest Income on Loans Interest Expense on Long-Term Debt Total Changes in Fair Values Included in Current- Period Earnings Total Changes in Fair Values Included in Other Comprehensive Income Trading debt securities $115 $105 $10 Available-for-sale debt securities 75 75 Loans 150 - 100 $50 $3 $10 $7 Derivatives 60 25 15 20 Equity investments\* 125 50 25 50 (18) (18) Long-term debt (60) (40) (20) 13 $(4) 5 4 (\*) Represents investments that would otherwise be accounted for under the equity method of accounting. "Loans are included in loans and lease receivables in the statement of financial position. As of December 31, 20X1, approximately $160,000 of lease receivables are included in loans and lease receivables in the statement of financial position and are not eligible for the fair value option." ##### [825-10-55-13](https://asc.understandingaccounting.org/asc/825/10/#825-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:34.825Z to 2026-09-10T01:44:34.825Z Record version: sha256:ce94524aab1dbd19f90b965bf1a53d24dcfc4cb5dd54d830cb8d6937c58a4768 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity might provide either of the following additional disclosures required by paragraph [825-10-50-28(a) through (b)](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) after the table: 1. a Management's reasons for electing a fair value option for each eligible item or group of similar eligible items 2. b If the fair value option is elected for some but not all eligible items within a group of similar eligible items, both of the following: 1. 1 A description of those similar items and the reasons for partial election 2. 2 Information to enable users to understand how the group of similar items relates to individual line items on the statement of financial position. Source downloaded (UTC): 2026-09-10T01:44:37.369Z to 2026-09-10T01:44:37.369Z Record version: sha256:d1c60ee2d0661a61dee2eb3b5a01e1b9122a056655a8a2c0164664b1de439d20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/825/10/#60-relationships) SEC content: no #### Financial Services—Depository and Lending ##### [825-10-60-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:37.369Z to 2026-09-10T01:44:37.369Z Record version: sha256:64f548028c4ff6624be8e790ccc7c700ed25b3969b505fffec3533b66f9e2a0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on estimating 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 deposit liabilities, see paragraph [942-470-50-1](https://asc.understandingaccounting.org/asc/470/942/#470-942-50-1). Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:3cbca4d81c88a632d659b0a628e2ab3248f39a4b3bcab74eb175ea4a1a2540b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/825/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [825-10-65-1](https://asc.understandingaccounting.org/asc/825/10/#825-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:dc8904cbd82514a30af316cbd52b918d9186cc5ce38257a7a9eee9a019a16a78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 04/13/2010 after the end of the transition period stated in FSP FAS 107-1 and APB 28-1, _Interim Disclosures about Fair Value of Financial Instruments_. ##### [825-10-65-2](https://asc.understandingaccounting.org/asc/825/10/#825-10-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:f42d4bca5156c26bffc33d1748d31c0e9a68920f773bf35b9c8f2aa4d3b7b209 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 08/19/2021 after the end of the transition period stated in Accounting Standards Update No. 2016-01, _Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities_. ##### [825-10-65-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-65-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:a6eb5db60068e1b202d105c2bc53bc1dc58d82deb4dbca2498c9c6c9b4cff689 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 8/12/2020 after the end of the transition period stated in Accounting Standards Update No. 2018-03, _Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities._ ##### [825-10-65-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-65-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:d1850732c927a38eded233c7c68a309bea0c724b30c9965936fd1e92a0ede7af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 8/12/2020 after the end of the transition period stated in Accounting Standards Update No. 2018-09, _Codification Improvements._ ##### [825-10-65-5](https://asc.understandingaccounting.org/asc/825/10/#825-10-65-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:3ec0036c832cba27ab0c63fd5229ecbc7095eb840d392c0c4b5e544ef9061db4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 08/19/2021 after the end of the transition period stated in Accounting Standards Updates No. 2019-04, _Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, and No. 2020-03, Codification Improvements to Financial Instruments_. ##### [825-10-65-6](https://asc.understandingaccounting.org/asc/825/10/#825-10-65-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:bfefb8b7f3dabb3f17bad1ae7c1425c11513d69427c21f21f21d2a8123a6c528 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/10/2023 after the end of the transition period stated in Accounting Standards Update No. 2020-01, _Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815_. ##### [825-10-65-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-65-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:41.124Z to 2026-09-10T01:44:41.124Z Record version: sha256:b7cc2891dfe89b58bb448724320408c6c9bd9abd39933de42ea42f9cb1a6c06a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/10/2023 after the end of the transition period stated in Accounting Standards Update No. 2020-03, _Codification Improvements to Financial Instruments_. Source downloaded (UTC): 2026-09-10T01:44:46.252Z to 2026-09-10T01:45:09.668Z Record version: sha256:cf882d46ec1e24e27f0f3291c3aa81857412fad9ba4d3584da69e626ebe71c65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20: Financial Instruments — Registration Payment Arrangements ### Machine-generated study aids ```json { "summary": "ASC 825-20 governs registration payment arrangements — agreements in which an issuer must file/obtain effectiveness of a registration statement (or obtain/maintain a stock exchange listing) for financial instruments and must transfer cash or shares to the counterparty if it fails. The core rule is that the arrangement is a separate unit of account: the underlying financial instruments are recognized and measured under other GAAP (e.g., 815-10, 815-40, 835-30) ignoring the contingent obligation, while the contingent obligation itself is recognized and measured under the loss-contingency model in Subtopic 450-20. Extensive disclosures are required even if payment is remote.", "key_points": [ "A registration payment arrangement is recognized and measured as a separate unit of account from the financial instrument(s) subject to it (825-20-25-1; 825-20-30-1).", "The underlying financial instruments are accounted for under other applicable GAAP (for example, Subtopics 815-10, 815-40, 835-30) without regard to the contingent obligation, so the arrangement does not affect equity-versus-liability classification of warrants (825-20-25-2; 825-20-30-2; 825-20-55-5).", "The contingent obligation to pay cash or transfer consideration is recognized and measured under Subtopic 450-20 (probable and reasonably estimable), and when a range exists with no better estimate, the minimum of the range is accrued (825-20-25-3; 825-20-30-3; 825-20-55-5).", "If transfer of consideration is probable and reasonably estimable at inception, the contingent liability is included in the allocation of financing proceeds, with remaining proceeds allocated to the instruments issued under other GAAP — possibly creating a discount (825-20-30-4; 825-20-55-8).", "Where shares must be delivered, transfer is probable, and the number of shares can be reasonably estimated, the issuer's share price at the reporting date is used to measure the liability (825-20-30-5).", "Initial recognition after inception, and subsequent increases or decreases in the previously recognized contingent liability, are recognized in earnings (825-20-35-1).", "Required disclosures include the nature and term of the arrangement, settlement alternatives and who controls them, maximum undiscounted potential consideration (or that there is no limit), carrying amount of the liability, and income statement classification of related gains or losses — even if payment is remote (825-20-50-1; 825-20-50-2)." ], "categories": [ "Recognition", "Initial measurement", "Subsequent measurement", "Disclosure" ], "audience_level": "intermediate", "student_note": "The exam trap is thinking that a registration payment penalty taints the classification of the related warrants or shares — it does not; the arrangement is bifurcated as its own unit of account and accounted for as an ASC 450-20 loss contingency. Also remember the scope exclusions (conversion-ratio adjustments, non-stock market/index-referenced consideration, and instruments settled when consideration is transferred) and that disclosure is required even when payment is remote.", "related_topics": [ "450-20", "815-40", "815-15", "470-20", "505-10", "835-30" ], "key_concepts": [ "registration payment arrangement", "separate unit of account", "contingent liability", "loss contingency accrual", "liquidated damages", "allocation of proceeds", "warrant classification", "effective registration statement" ] } ``` Source downloaded (UTC): 2026-09-10T01:44:46.252Z to 2026-09-10T01:44:46.252Z Record version: sha256:ae280a9d6e9bc11e8df5ff7e6491fa16c200914ae82b22cf3be62fc626c6ef63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/825/20/#00-status) SEC content: no ##### [825-20-00-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:46.252Z to 2026-09-10T01:44:46.252Z Record version: sha256:8b576157f962e78ae526b67508d83627c9e96782610693f289e3f75350ada249 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
Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
Registration Payment ArrangementAddedAccounting Standards Update No. 2016-1912/14/2016
825-20-05-1AmendedAccounting Standards Update No. 2016-1912/14/2016
825-20-15-1AmendedAccounting Standards Update No. 2016-1912/14/2016
825-20-15-2AmendedAccounting Standards Update No. 2016-1912/14/2016
825-20-15-3SupersededAccounting Standards Update No. 2016-1912/14/2016
825-20-15-4AmendedAccounting Standards Update No. 2020-0608/05/2020
825-20-30-1AmendedAccounting Standards Update No. 2016-1912/14/2016
825-20-35-1AmendedAccounting Standards Update No. 2016-1912/14/2016
825-20-50-1AmendedAccounting Standards Update No. 2016-1912/14/2016
825-20-55-1AmendedAccounting Standards Update No. 2016-1912/14/2016
Source downloaded (UTC): 2026-09-10T01:44:49.567Z to 2026-09-10T01:44:49.567Z Record version: sha256:1c5f719a4db909186ff5ce3b173603d78dec3fb3fa41b9c6a29bf83cd1c32c91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/825/20/#05-overview-and-background) SEC content: no ##### [825-20-05-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:49.567Z to 2026-09-10T01:44:49.567Z Record version: sha256:bccfe87036db5050a3ce7d4de9dca0b6247912dd73307a2bf15de5ac97a9adc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may issue financial instruments (for example, equity shares, warrants, or debt instruments) that are subject to 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)."). This Subtopic provides guidance related to such arrangements. Source downloaded (UTC): 2026-09-10T01:44:52.569Z to 2026-09-10T01:44:52.569Z Record version: sha256:23fef164d6f7fdec0d971c0d61f27e8e0b7e5afa93354474fae10285b6ab01ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/825/20/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [825-20-15-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:52.569Z to 2026-09-10T01:44:52.569Z Record version: sha256:c53f4e397a2998dcedb21c8f08dc403f1b995639a015a97e16b0f86f9771fd3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities that issue 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)."). #### Transactions ##### [825-20-15-2](https://asc.understandingaccounting.org/asc/825/20/#825-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:52.569Z to 2026-09-10T01:44:52.569Z Record version: sha256:c091335348ab33e0f3d8a26688aea0222f50522f3a3f6a8d656b805e17c7b55a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to the following transactions and activities: 1. a 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).") regardless of whether it is issued as a separate agreement or included as a provision of 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.") or other agreement. An arrangement that requires the issuer to obtain and/or maintain a listing on a stock exchange, instead of, or in addition to, obtaining and/or maintaining an effective registration statement, is within the scope of this Subtopic if the remaining characteristics of the definition of the term _registration payment arrangement_ are met. ##### [825-20-15-3](https://asc.understandingaccounting.org/asc/825/20/#825-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:52.569Z to 2026-09-10T01:44:52.569Z Record version: sha256:c107857f87cec9fcd445099241144635ff07b8da88c28117453865b3cb359af1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-19](https://asc.understandingaccounting.org/updates/asu-2016-19/). ##### [825-20-15-4](https://asc.understandingaccounting.org/asc/825/20/#825-20-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:52.569Z to 2026-09-10T01:44:52.569Z Record version: sha256:bb03f0519b9590ec3b2f2fae104426fa3848000ac3dc4f38d9a65ba228466e34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to any of the following: 1. a Arrangements that require registration or listing of convertible debt instruments or convertible preferred stock if the form of consideration that would be transferred to the counterparty is an adjustment to the conversion ratio. See Subtopic 470-20 on debt with conversion and other options or Subtopic 505-10 on equity for related guidance. 2. b Arrangements in which the amount of consideration transferred is determined by reference to either of the following: 1. 1 An observable market other than the market for the issuer's stock 2. 2 An observable index. For example, if the consideration to be transferred if the issuer is unable to obtain an effective registration statement is determined by reference to the price of a commodity. See Subtopic 815-15 for related guidance. 3. c Arrangements in which the financial instrument or instruments subject to the arrangement are settled when the consideration is transferred (for example, a warrant that is contingently puttable if an effective registration statement for the resale of the equity shares that are issuable upon exercise of the warrant is not declared effective by the SEC within a specified grace period). ##### [825-20-15-5](https://asc.understandingaccounting.org/asc/825/20/#825-20-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:52.569Z to 2026-09-10T01:44:52.569Z Record version: sha256:eb2379bb09d9dcb46da8c62f0dbecf55886f8709fe659abe1ceb2fee054059bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic shall not be applied by analogy to the accounting for contracts that are not registration payment arrangements meeting the criteria in paragraphs [825-20-15-2 through 15-3](https://asc.understandingaccounting.org/asc/825/20/#825-20-15-2) . For example, a building contract that includes a provision requiring the contractor to obtain a certificate of occupancy by a certain date or pay a penalty every month until the certificate of occupancy is obtained is not addressed by this Subtopic. Source downloaded (UTC): 2026-09-10T01:44:57.618Z to 2026-09-10T01:44:57.618Z Record version: sha256:fabf832c9e40bd4744e9eb3582c8da003d38591d32570489b2650fc503d2679d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/825/20/#25-recognition) SEC content: no ##### [825-20-25-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:57.618Z to 2026-09-10T01:44:57.618Z Record version: sha256:c71e94bfe57c9e4c3b93ef5483cd83294c2ed7633792207fad5ad1af72207ae6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall recognize a registration payment arrangement as a separate unit of account from the [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.")(s) subject to that arrangement. ##### [825-20-25-2](https://asc.understandingaccounting.org/asc/825/20/#825-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:57.618Z to 2026-09-10T01:44:57.618Z Record version: sha256:430d7afb4fd95d91e580d8b4638fded82d2cea1b6ee646fd80d66a1f02e1aca1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial instrument(s) subject to the registration payment arrangement shall be recognized in accordance with other applicable generally accepted accounting principles (GAAP) (for example, Subtopics 815-10; 815-40; and 835-30) without regard to the contingent obligation to transfer consideration pursuant to the registration payment arrangement. ##### [825-20-25-3](https://asc.understandingaccounting.org/asc/825/20/#825-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:44:57.618Z to 2026-09-10T01:44:57.618Z Record version: sha256:c8de590e9fe521416a1196eb55c17ed1b455804b0389370ef4f0d092ea5f5913 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The contingent obligation to make future payments or otherwise transfer consideration under a registration payment arrangement shall be recognized separately in accordance with Subtopic 450-20. Source downloaded (UTC): 2026-09-10T01:45:00.078Z to 2026-09-10T01:45:00.078Z Record version: sha256:b4ad0d8d61b9cb993d68fadf94984b48ce8fc43e8521b4f238fcc37376c8a826 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/825/20/#30-initial-measurement) SEC content: no ##### [825-20-30-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:00.078Z to 2026-09-10T01:45:00.078Z Record version: sha256:e4bda7752989c388fead0b01f29e025f479cbe1628210706086fab6cae503f39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall measure 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).") as a separate unit of account from the [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.")(s) subject to that arrangement. ##### [825-20-30-2](https://asc.understandingaccounting.org/asc/825/20/#825-20-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:00.078Z to 2026-09-10T01:45:00.078Z Record version: sha256:ad022386daf90435bd51edf2fb4360397c3c98a79681b325a201c1246001d329 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial instrument(s) subject to the registration payment arrangement shall be measured in accordance with other applicable generally accepted accounting principles (GAAP) (for example, Subtopics 815-10; 815-40; and 835-30) without regard to the contingent obligation to transfer consideration pursuant to the registration payment arrangement. ##### [825-20-30-3](https://asc.understandingaccounting.org/asc/825/20/#825-20-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:00.078Z to 2026-09-10T01:45:00.078Z Record version: sha256:7a244b0d49f0bbd4e230251e15d7f9e21fb1927228a5ece65de23c391f95382c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The contingent obligation to make future payments or otherwise transfer consideration under a registration payment arrangement shall be measured separately in accordance with Subtopic 450-20. ##### [825-20-30-4](https://asc.understandingaccounting.org/asc/825/20/#825-20-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:00.078Z to 2026-09-10T01:45:00.078Z Record version: sha256:c71595e5ea3cee172c45068d80e43a197c6de71b5bc0ca0d39d67049e2516b1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the transfer of consideration under a registration payment arrangement is probable and can be reasonably estimated at inception, the contingent liability under the registration payment arrangement shall be included in the allocation of proceeds from the related financing transaction using the measurement guidance in Subtopic 450-20. The remaining proceeds shall be allocated to the financial instrument(s) issued in conjunction with the registration payment arrangement based on the provisions of other applicable GAAP. A financial instrument issued concurrently with a registration payment arrangement might be initially measured at a discount to its principal amount under this allocation methodology. For example, if the financial instruments issued concurrently with the registration payment arrangement are a debt instrument and an equity-classified warrant, the remaining proceeds after recognizing and measuring a liability for the registration payment arrangement under that Subtopic would be allocated on a relative [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.") basis between the debt and the warrant pursuant to paragraph [470-20-25-3](https://asc.understandingaccounting.org/asc/470/20/#470-20-25-3). ##### [825-20-30-5](https://asc.understandingaccounting.org/asc/825/20/#825-20-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:00.078Z to 2026-09-10T01:45:00.078Z Record version: sha256:b588f4e480ed100fb200db6323b99022c839ebcdb40fea1254b692174d6e3e80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If all of the following criteria are met, the issuer's share price at the reporting date shall be used to measure the contingent liability under Subtopic 450-20: 1. a An entity would be required to deliver shares under a registration payment arrangement. 2. b The transfer of that consideration is probable. 3. c The number of shares to be delivered can be reasonably estimated. Source downloaded (UTC): 2026-09-10T01:45:02.283Z to 2026-09-10T01:45:02.283Z Record version: sha256:003b0ae9305a9e49a87404455b9bd2615ef10352784da10eed477c85f7a469ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/825/20/#35-subsequent-measurement) SEC content: no ##### [825-20-35-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:02.283Z to 2026-09-10T01:45:02.283Z Record version: sha256:7164d869010447c5553afe47ca22e0640c717e20c3ce1b18992a38758ea949e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the transfer of consideration under 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).") becomes probable and can be reasonably estimated after the inception of the arrangement or if the measurement of a previously recognized contingent liability increases or decreases in a subsequent period, the initial recognition of the contingent liability or the change in the measurement of the previously recognized contingent liability (in accordance with Subtopic 450-20) shall be recognized in earnings. Source downloaded (UTC): 2026-09-10T01:45:04.272Z to 2026-09-10T01:45:04.272Z Record version: sha256:87222b945a66e90a4136588246bb31d54d2d98c9a4751ac996ae6a2f3e10df6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/825/20/#50-disclosure) SEC content: no ##### [825-20-50-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:04.272Z to 2026-09-10T01:45:04.272Z Record version: sha256:c0ab62a2ba7d0e4c3313f1178658991b764aa9cf4deec970601a217a08b2ee99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The issuer of 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).") shall disclose all of the following information about each registration payment arrangement or each group of similar arrangements: 1. a The nature of the registration payment arrangement, including all of the following: 1. 1 The approximate term of the arrangement 2. 2 The [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.")(s) subject to the arrangement 3. 3 The events or circumstances that would require the issuer to transfer consideration under the arrangement. 2. b Any settlement alternatives contained in the terms of the registration payment arrangement, including the party that controls the settlement alternatives 3. c The maximum potential amount of consideration, undiscounted, that the issuer could be required to transfer under the registration payment arrangement (including the maximum number of shares that may be required to be issued) 4. d If the terms of the arrangement provide for no limitation to the maximum potential consideration (including shares) to be transferred, that fact shall be disclosed 5. e The current carrying amount of the liability representing the issuer's obligations under the registration payment arrangement 6. f The income statement classification of any gains or losses resulting from changes in the carrying amount of the liability representing the issuer's obligations under the registration payment arrangement. ##### [825-20-50-2](https://asc.understandingaccounting.org/asc/825/20/#825-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:04.272Z to 2026-09-10T01:45:04.272Z Record version: sha256:ecad028ef397fbcc0eeef841275b110d36376b2623810878fb1cc02fd03f8715 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. These disclosures are incremental to the disclosures that may be required under other applicable generally accepted accounting principles (GAAP) and are required even if the likelihood of the issuer having to make any payments under the arrangement is remote. Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:1b867e44b40ba45eb343c1081cbf32bb3a3da0f738c651a7acc8fe63e245fb05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/825/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [825-20-55-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:6058296fccffe760dc11bd4a0449408b323eec3cb12c8350de1a47e9b4ca8bfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the application of this Subtopic to 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).") within the scope of this Subtopic: 1. a Transfer of consideration is not probable at inception (Case A). 2. b Transfer of consideration is probable at inception (Case B). ##### [825-20-55-2](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:117929bd5aaff8cd5d0d2b75d493773f44e83646d5a71ba599a23c06b12d34b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A and B share all of the following assumptions: 1. a Entity A issues 10 million shares of common stock and 2 million freestanding warrants to purchase additional shares of common stock for total proceeds of $100 million in a private placement transaction. 2. b In connection with the offering, Entity A enters into a registration payment arrangement that requires Entity A to use its best efforts to do both of the following: 1. 1 File a registration statement with the Securities and Exchange Commission (SEC) for the resale of 12 million shares of common stock. That registration statement must be declared effective within 180 days of the offering's closing date 2. 2 Once the registration statement is effective, maintain its effectiveness for three years. 3. c If the registration statement is not declared effective within 180 days, or if it ceases to be effective during the 3-year period in which Entity A is required to maintain its effectiveness, the investors are entitled to liquidated damages in the form of monthly cash payments computed as 1.5 percent per month of the $100 million total offering proceeds. ##### [825-20-55-3](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:b64b96926b641ac52e5d0ca3e8b7b12de78c7f3a0ea9dbd0dd7b9237a948dcae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At closing, Entity A concludes that it is not probable that it will be required to remit any payments to the investors for failing to obtain an effective registration statement or failing to maintain its effectiveness. ##### [825-20-55-4](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:29187fb13c3421329917e846a4d66c988f22f7cd2f4cf2a2bb5e059b9c00c29d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A files a registration statement for the resale of the shares that is declared effective within the 180-day grace period. One year after the effective date of the registration statement, circumstances have changed such that Entity A concludes that it is probable that the effectiveness of the registration statement will not be maintained for some portion of the remaining two-year period. Although Entity A is unable to estimate the exact amount of time that the registration statement will cease to be effective, its reasonable estimate at the reporting date is a period of time ranging between 9 and 18 months. Accordingly, the range of loss is between $13.5 million ($100 million × 1.5 percent × 9 months) and $27 million ($100 million × 1.5 percent × 18 months). At the reporting date, no amount within that range appears to be a better estimate than any other amount. ##### [825-20-55-5](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:5171081b6dfc53cb76583721eacdfe550cdb75c1c6100d35686142b1bda97b58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The common stock and warrants subject to the registration payment arrangement must be recognized and measured in accordance with other applicable generally accepted accounting principles (GAAP) without regard to the contingent obligation to make payments pursuant to the registration payment arrangement. Therefore, that contingent obligation does not affect Entity A's analysis of whether the warrants are classified as liabilities or equity instruments under Subtopic 815-40, regardless of whether the transfer of consideration under the registration payment arrangement is probable. In the period in which it became probable that Entity A will be required to remit payments to the investors for failing to maintain an effective registration statement and a range of payments can be reasonably estimated, a contingent liability should be accrued by a charge to earnings. Because no amount within the range of payments is a better estimate than any other amount, the $13.5 million minimum amount in the range should be accrued. ##### [825-20-55-6](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:4621d3c4d3e463428f1655b8af00d7f4d9ce768ee83ad7a42c700a7dfa66d006 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Case, at closing, Entity A concludes that it is probable that it will be required to remit payments to the investors for failing to obtain an effective registration statement within the 180-day grace period. ##### [825-20-55-7](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:3f1ecad9a81a1a7783440f6e527cc9e23aa1faadf11fc89d9d31599fc4dbe011 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Based on the relevant facts and circumstances, Entity A can reasonably estimate both of the following: 1. a The registration statement will become effective six months after the grace period expires. 2. b Once effective, registration will be maintained for the three-year required period of effectiveness. ##### [825-20-55-8](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:a6e02da1c21b7f382503c0e36b1751220f164a0d4f971384e136ad755c97b775 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The common stock and warrants subject to the registration payment arrangement must be recognized and measured in accordance with other applicable GAAP without regard to the contingent obligation to make payments pursuant to the registration payment arrangement. Therefore, that contingent obligation does not affect Entity A's analysis of whether the warrants are classified as liabilities or equity instruments under Subtopic 815-40, regardless of whether the transfer of consideration under the registration payment arrangement is probable. Because a transfer of consideration under the registration payment arrangement is probable and can be reasonably estimated at inception, the $9 million ($100 million × 1.5 percent × 6 months) contingent liability under the registration payment arrangement must be included in the allocation of proceeds from the offering. The $91 million of remaining proceeds should be allocated between the common stock and warrants based on the guidance in other applicable GAAP. ##### [825-20-55-9](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:83f63336dd2493c1ea704a147038812fadcfd647b6e13bb17292314ca9bd6913 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the application of this Subtopic to debt issued subject to a registration payment arrangement within the scope of this Subtopic. ##### [825-20-55-10](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:2d7550c54aa64f064eabde491b26eb83b22867973134468145c71b7a24f01a78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A issues notes with an aggregate principal amount of $100 million in a private placement transaction. The notes were issued at par, bear interest at 8 percent per annum, and are not convertible into equity shares of the issuer. ##### [825-20-55-11](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:dc59fcd2d0bfdb313cfa4b3a17208cc41b8d444a34924121dca56630235f6bb2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In connection with the offering, Entity A enters into a registration payment arrangement that requires Entity A to use its best efforts to do both of the following: 1. a File a registration statement with the SEC for the resale of the notes. That registration statement must be declared effective within 180 days of the offering's closing date 2. b Once the registration statement is effective, maintain its effectiveness for two years. ##### [825-20-55-12](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:8f7648afee499907be74f8166d0947a09bf96d42c1eadc16474800eeecf822f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the registration statement is not declared effective within 180 days, or if it ceases to be effective during the 2-year period in which Entity A is required to maintain its effectiveness, the investors are entitled to liquidated damages in the form of an increase to the interest coupon of 50 basis points per month. At closing, Entity A concludes that it is not probable that it will be required to remit any payments to the investors for failing to obtain an effective registration statement or failing to maintain its effectiveness. ##### [825-20-55-13](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:5fddf7354946242b6699a5b2a2406f77c7f9dd64af2b09d44a5a6b72c376bc40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A files a registration statement for the resale of the notes that is declared effective within the 180-day grace period. One year after the effective date of the registration statement, circumstances have changed such that Entity A concludes that it is probable that the effectiveness of the registration statement will not be maintained for some portion of the remaining one-year period. Although Entity A is unable to estimate the exact amount of time that the registration statement will cease to be effective, its reasonable estimate at the reporting date is a period of time ranging between three and six months. Accordingly, the range of loss is between $1.5 million ($100 million × 0.5 percent × 3 months) and $3 million ($100 million × 0.5 percent × 6 months). At the reporting date, no amount within that range appears to be a better estimate than any other amount. ##### [825-20-55-14](https://asc.understandingaccounting.org/asc/825/20/#825-20-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:06.511Z to 2026-09-10T01:45:06.511Z Record version: sha256:cb1d3045ed7eacad965147442bb7b0cb78e3df9ab9505e7efdd6a7e70453ab7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the period in which it became probable that Entity A will be required to remit payments to the investors for failing to maintain an effective registration statement and a range of payments can be reasonably estimated, a contingent liability should be accrued by a charge to earnings. Because no amount within the range of payments is a better estimate than any other amount, the $1.5 million minimum amount in the range should be accrued. Source downloaded (UTC): 2026-09-10T01:45:12.222Z to 2026-09-10T01:45:24.858Z Record version: sha256:e3782542bc6479e4f03b32d87a79a402188e3f1d7ca2845e1317c371ace549cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942: Financial Instruments — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "summary": "This Subtopic sets the disclosure requirements for depository and lending institutions that hold financial instruments with off-balance-sheet credit risk — loan commitments, standby letters of credit, financial guarantees, loans sold with recourse, and similar instruments. For each such instrument an entity must disclose the face or contract amount, the nature and terms (including credit and market risk, cash requirements, and related accounting policy), and its collateral policies. Instruments within the scope of Topic 815 (derivatives) are excluded.", "key_points": [ "The Subtopic addresses financial institution disclosure for financial instruments with off-balance-sheet credit risk (825-942-05-1).", "Scope follows Section 942-10-15, but the guidance does not apply to financial instruments within the scope of Topic 815 (825-942-15-1 through 15-2).", "Off-balance-sheet credit risk covers off-balance-sheet loan commitments, standby letters of credit, financial guarantees, and similar instruments, excluding Topic 815 instruments (825-942-50-1).", "Required disclosures are the face or contract amount and the nature and terms, including at a minimum the credit and market risk, the cash requirements, and the related accounting policy under Subtopic 235-10 (825-942-50-1(a)-(b)).", "The entity must also disclose its policy for requiring collateral or other security, its access to that collateral, and a brief description of the collateral supporting those instruments (825-942-50-1(c)).", "Examples include loans sold with recourse, fixed- and variable-rate loan commitments, financial guarantees, floating-rate note issuance facilities, and letters of credit; a loan guarantee typically involves an initial fee and a continuing annual fee (825-942-50-2).", "A guarantor may also have to disclose and account for a financial guarantee under Topic 460, or under Topic 815 if the guarantee is accounted for as a derivative (825-942-50-2)." ], "categories": [ "Disclosure", "Financial instruments", "Contingencies and guarantees", "Industry-specific" ], "audience_level": "intermediate", "student_note": "This is a pure disclosure subtopic — it does not tell you whether to recognize or measure anything, only what a bank must tell readers about credit exposures that never hit the balance sheet. The common mistake is applying it to derivatives; anything in Topic 815's scope is carved out, and guarantees may instead fall under Topic 460.", "related_topics": [ "815", "460", "942-10", "235-10", "825-10", "326" ], "key_concepts": [ "off-balance-sheet credit risk", "loan commitments", "standby letters of credit", "financial guarantees", "loans sold with recourse", "face or contract amount", "collateral policy", "depository and lending institutions" ] } ``` Source downloaded (UTC): 2026-09-10T01:45:12.222Z to 2026-09-10T01:45:12.222Z Record version: sha256:87e2b26ccd704bb95379ff234dd8ed714e05aebf3617a2f36454744170dc809b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/825/942/#00-status) SEC content: no ##### [825-942-00-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:12.222Z to 2026-09-10T01:45:12.222Z Record version: sha256:967eb82109a82dd41ab3aef22020392f9715ba5ffa029b743609c0b866936efd 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
942-825-50-2AmendedMaintenance Update 2021-02 (PDF)01/19/2021
942-825-50-2AmendedAccounting Standards Update No. 2016-2012/21/2016
942-825-50-2AmendedAccounting Standards Update No. 2016-0101/05/2016
942-825-50-2AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T01:45:15.772Z to 2026-09-10T01:45:15.772Z Record version: sha256:68e57736985254caf6edb11133c24bc6619182d4ec9afb2e6358917442ed8b13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/825/942/#05-overview-and-background) SEC content: no ##### [825-942-05-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:15.772Z to 2026-09-10T01:45:15.772Z Record version: sha256:967349531436179c184ceb8f42ea1ec87737ce9d6374b6d322ce1f5dcddefd8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses financial institution disclosure matters for financial instruments with off-balance-sheet credit risk. Source downloaded (UTC): 2026-09-10T01:45:17.919Z to 2026-09-10T01:45:17.919Z Record version: sha256:c8a71b7343111fb3da2eee2d155f9d432e4888439c70095769ea97dbe24b9117 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/825/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [825-942-15-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:17.919Z to 2026-09-10T01:45:17.919Z Record version: sha256:47844efd079ab1f5be6eb11f3366d9a620f086c597a8707400dd0cf16b363436 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, with specific instrument exceptions noted below. #### Instruments ##### [825-942-15-2](https://asc.understandingaccounting.org/asc/825/942/#825-942-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:17.919Z to 2026-09-10T01:45:17.919Z Record version: sha256:7ee294f307ee8bd5ad8f66dd85f7b5def8fb65f9f2b31121d18d92d959dc986b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following instruments: 1. a Financial instruments within the scope of Topic 815. Source downloaded (UTC): 2026-09-10T01:45:21.330Z to 2026-09-10T01:45:21.330Z Record version: sha256:cdda969a73d8cf3c9fedf6de1389eaac33eec9da6c6410ccda11623299111d98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/825/942/#50-disclosure) SEC content: no #### Off-Balance-Sheet Credit Risk ##### [825-942-50-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:21.330Z to 2026-09-10T01:45:21.330Z Record version: sha256:7a21bfdb061321f9a155170c1fedf4a62e0531b6d6a78159990300ac51934539 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Off-balance-sheet credit risk refers to credit risk on off-balance-sheet loan commitments, standby letters of credit, financial guarantees, and other similar instruments, except for instruments within the scope of Topic 815. For financial instruments with off-balance-sheet credit risk, except for those instruments within the scope of that Topic, an entity shall disclose all of the following information: 1. a The face or contract amount 2. b The nature and terms, including, at a minimum, a discussion of the: 1. 1 Credit and market risk of those instruments 2. 2 Cash requirements of those instruments 3. 3 Related accounting policy pursuant to Subtopic 235-10. 3. c The entity's policy for requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments. ##### [825-942-50-2](https://asc.understandingaccounting.org/asc/825/942/#825-942-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:21.330Z to 2026-09-10T01:45:21.330Z Record version: sha256:c2c40e53960c9d181becd4c1a0699fe898d2fca36a30331875320a243905475d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of activities and financial instruments with off-balance-sheet credit risk include obligations for loans sold with recourse (with or without a floating-interest-rate provision), fixed-rate and variable-rate loan commitments, financial guarantees, note issuance facilities at floating rates, and letters of credit. An entity (guarantor) may "lend" its creditworthiness to another party (borrower) for a fee, thereby enhancing that other party's ability to borrow funds. The guarantor may provide a general guarantee of repayment of the borrower's obligation or may pledge specific assets that may be claimed by the creditor in the event of the borrower's default. A loan guarantee typically involves two sets of fees: an initial fee due at the consummation of the transaction and a continuing (annual) fee due over the term of the guarantee. A guarantor may be required to disclose and account for a financial guarantee under Topic 460 on guarantees. See Topic 815 on derivatives and hedging for guarantees accounted for as a derivative. Source downloaded (UTC): 2026-09-10T01:45:26.659Z to 2026-09-10T01:45:54.729Z Record version: sha256:a31fb058f592e2e29a0b5f347e2305db248eade916c7368f7ac352e90f1b6ae9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944: Financial Instruments — Financial Services—Insurance ### Machine-generated study aids ```json { "summary": "This subtopic applies the financial instruments guidance to insurance entities, covering investment contracts and disclosures about concentrations of credit risk arising from reinsurance contracts. Amounts received under investment contracts are not revenue; they are recorded as liabilities and accounted for like interest-bearing or other financial instruments, with related deferred acquisition costs reported as an asset. Ceding entities must disclose credit risk concentrations for reinsurance recoverables and prepaid reinsurance premiums, and must disclose the carrying amount of securities deposited with state regulatory authorities.", "key_points": [ "Amounts received as payments for an investment contract shall not be reported as revenues (825-944-25-1).", "Payments received from an investment contract are reported as liabilities and accounted for consistently with interest-bearing or other financial instruments (825-944-25-2).", "Deferred acquisition costs related to investment contracts are reported as an asset, consistent with Subtopic 944-30 (825-944-45-1).", "An entity shall disclose the carrying amount of securities deposited by insurance subsidiaries with state regulatory authorities (825-944-50-1A).", "Under Section 825-10-50, a ceding entity discloses concentrations of credit risk for both reinsurance recoverables and prepaid reinsurance premiums (825-944-50-1B).", "Concentration of credit risk disclosures may be required even absent a significant concentration with a single reinsurer (825-944-50-2).", "Retrocession of reinsured risks to a diverse group of retrocessionaires does not change the ceding entity's concentration of credit risk with the assuming entity, so disclosure is still required (825-944-50-3)." ], "categories": [ "Financial instruments", "Disclosure", "Industry-specific", "Revenue" ], "audience_level": "intermediate", "student_note": "The classic trap is treating investment-contract deposits as premium revenue: because these contracts lack significant insurance risk, the receipts are deposit liabilities, not revenue. Also remember that a ceding entity cannot look through to retrocessionaires to reduce its disclosed credit risk concentration with the assuming reinsurer.", "related_topics": [ "825-10", "944-20", "944-30", "944-10", "944-40", "944-605" ], "key_concepts": [ "investment contracts", "reinsurance contracts", "concentrations of credit risk", "reinsurance recoverables", "prepaid reinsurance premiums", "deferred acquisition costs", "ceding entity", "retrocession" ] } ``` Source downloaded (UTC): 2026-09-10T01:45:26.659Z to 2026-09-10T01:45:26.659Z Record version: sha256:c499d6fcd1a33c7a6e47049a2c33daa96e1e9824cb95f501bb71fde41c8739a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/825/944/#00-status) SEC content: no ##### [825-944-00-1](https://asc.understandingaccounting.org/asc/825/944/#825-944-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:26.659Z to 2026-09-10T01:45:26.659Z Record version: sha256:fc57fb403a8dbcecf6610821ab817cec3c3313ebe94288f12928da2dcedaeb69 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
Acquisition CostsAmendedAccounting Standards Update No. 2010-2610/13/2010
Reinsurance RecoverableAddedAccounting Standards Update No. 2016-1912/14/2016
944-825-45-1AmendedAccounting Standards Update No. 2018-1208/15/2018
944-825-50-1AmendedAccounting Standards Update No. 2016-1912/14/2016
944-825-50-1SupersededAccounting Standards Update No. 2016-0101/05/2016
944-825-50-1AAddedAccounting Standards Update No. 2016-0101/05/2016
944-825-50-1BAmendedAccounting Standards Update No. 2016-1912/14/2016
944-825-50-1BAddedAccounting Standards Update No. 2016-0101/05/2016
944-825-50-1 through 50-3
AddedAccounting Standards Update No. 2012-0410/01/2012
944-825-55-1 through 55-3SupersededAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-10T01:45:30.017Z to 2026-09-10T01:45:30.017Z Record version: sha256:6f7c0403e48a2f5032f988ffb828f9e392b26b829846a2eea217af3a9358e4c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/825/944/#05-overview-and-background) SEC content: no ##### [825-944-05-1](https://asc.understandingaccounting.org/asc/825/944/#825-944-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:30.017Z to 2026-09-10T01:45:30.017Z Record version: sha256:3befa05a3f706fa92d1204bb478a38f770ec43de4433b3ee59e8c88c24262df5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to insurance entities on accounting for and financial reporting of financial instruments, including guidance on [investment contracts](https://asc.understandingaccounting.org/glossary/i/#investment-contracts "Long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity.") and implementation guidance on disclosures about concentrations of credit risk of [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contracts. The guidance in this Subtopic is provided in the following two Subsections: 1. a General 2. b Reinsurance contracts. ### Reinsurance Contracts ##### [825-944-05-2](https://asc.understandingaccounting.org/asc/825/944/#825-944-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:30.017Z to 2026-09-10T01:45:30.017Z Record version: sha256:36246bc22500972622739e786d48380e7e5b3d4322855e532a8aa153bebba010 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Reinsurance Contracts Subsections of this Subtopic provide guidance to insurance entities on disclosures about concentrations of credit risk of [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contracts. Source downloaded (UTC): 2026-09-10T01:45:34.039Z to 2026-09-10T01:45:34.039Z Record version: sha256:e5c729efaab89aa4340e89f32dd2ee4e12c3516887ba229c8f216ce62453053c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/825/944/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [825-944-15-1](https://asc.understandingaccounting.org/asc/825/944/#825-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:34.039Z to 2026-09-10T01:45:34.039Z Record version: sha256:df3bd2c7aca48937766d42ab761fd7cc3211327153ab018777ce8272dafdb03f 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, with specific instrument qualifications noted below. #### Instruments ##### [825-944-15-2](https://asc.understandingaccounting.org/asc/825/944/#825-944-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:34.039Z to 2026-09-10T01:45:34.039Z Record version: sha256:8f062b097fc830a574806e3fc07d4b73571b3e9cbcf3ad1c25397f35c39adc1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all financial instruments, including [investment contracts](https://asc.understandingaccounting.org/glossary/i/#investment-contracts "Long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity."). For a guidance on identifying investment contracts, see the discussion beginning in paragraph [944-20-15-16](https://asc.understandingaccounting.org/asc/944/20/#944-20-15-16). ##### [825-944-15-3](https://asc.understandingaccounting.org/asc/825/944/#825-944-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:34.039Z to 2026-09-10T01:45:34.039Z Record version: sha256:a657c990e7388dbfb492248682c5e82553097daa9c0a1cd0ea85a11ac380ea8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ### Reinsurance Contracts #### Overall Guidance ##### [825-944-15-4](https://asc.understandingaccounting.org/asc/825/944/#825-944-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:34.039Z to 2026-09-10T01:45:34.039Z Record version: sha256:123b690c183c6e8954c3d6441398dfe6f8421393d763074a05d04cf15daa63ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the [General Subsection](https://asc.understandingaccounting.org/updates/page-2147479495/) of this Section, with specific instrument qualifications noted below. #### Instruments ##### [825-944-15-5](https://asc.understandingaccounting.org/asc/825/944/#825-944-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:34.039Z to 2026-09-10T01:45:34.039Z Record version: sha256:43b751b4101c396f1568f94166fca54fdd00fac984ed8a4bca97e6932cf642d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contracts. For guidance on identifying a reinsurance contract, see the [Reinsurance Contracts Subsection](https://asc.understandingaccounting.org/asc/944/20/#15-scope-and-scope-exceptions) of Section 944-20-15. Source downloaded (UTC): 2026-09-10T01:45:41.655Z to 2026-09-10T01:45:41.655Z Record version: sha256:7af562731ece9805ff0845363c34af215b2e75a0d9cef9bea73030e6a775ad22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/825/944/#25-recognition) SEC content: no #### Investment Contracts ##### [825-944-25-1](https://asc.understandingaccounting.org/asc/825/944/#825-944-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:41.655Z to 2026-09-10T01:45:41.655Z Record version: sha256:9178245612deb547ce39c92e8e9b96d55aade0e3d98a8c2b237e237ccf26651b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts received as payments for an [investment contract](https://asc.understandingaccounting.org/glossary/i/#investment-contracts "Long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity.") shall not be reported as revenues. ##### [825-944-25-2](https://asc.understandingaccounting.org/asc/825/944/#825-944-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:41.655Z to 2026-09-10T01:45:41.655Z Record version: sha256:eb097ea01101da4ff1d9597658f6d13cc8c39f184d920d694e4c43b57e26cc87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payments received by the insurance entity from an investment contract shall be reported as liabilities and accounted for in a manner consistent with the accounting for interest-bearing or other financial instruments. ##### [825-944-25-3](https://asc.understandingaccounting.org/asc/825/944/#825-944-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:41.655Z to 2026-09-10T01:45:41.655Z Record version: sha256:0dd8022c6fc8c40cca7ee1cd9da2cb0c7d0aa71f5f31f2ace18f01217fca038e 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): 2026-09-10T01:45:44.024Z to 2026-09-10T01:45:44.024Z Record version: sha256:b2315dd9c4dad1cf9e3f38c8118688ffa1ae48f32e9fec92e0c94ef06520bdba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/825/944/#45-other-presentation-matters) SEC content: no #### Investment Contracts ##### [825-944-45-1](https://asc.understandingaccounting.org/asc/825/944/#825-944-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:44.024Z to 2026-09-10T01:45:44.024Z Record version: sha256:177897567eef6f50a6684b4f79bca6329cd75a48782de22336eb7cdd9dff3931 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Deferred [acquisition costs](https://asc.understandingaccounting.org/glossary/a/#acquisition-costs "Costs that are related directly to the successful acquisition of new or renewal insurance contracts.") related to [investment contracts](https://asc.understandingaccounting.org/glossary/i/#investment-contracts "Long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity.") shall be reported as an asset to be consistent with the guidance in Subtopic 944-30. Source downloaded (UTC): 2026-09-10T01:45:48.092Z to 2026-09-10T01:45:48.092Z Record version: sha256:da4a8ea509dd4780334c234539b73dba993b511ff05ce2fc99cf9425bac7c5ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/825/944/#50-disclosure) SEC content: no #### Securities on Deposit ##### [825-944-50-1A](https://asc.understandingaccounting.org/asc/825/944/#825-944-50-1A) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:48.092Z to 2026-09-10T01:45:48.092Z Record version: sha256:4d6199f72e538f9d9becfd976fa38633fb3623267b31a6374e74967ebe0546ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the [carrying amount](https://asc.understandingaccounting.org/glossary/c/#carrying-amount "The amount of an item as displayed in the financial statements.") of securities deposited by insurance subsidiaries with state regulatory authorities. ### Reinsurance Contracts ##### [825-944-50-1](https://asc.understandingaccounting.org/asc/825/944/#825-944-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:48.092Z to 2026-09-10T01:45:48.092Z Record version: sha256:ec1e49a0543ed8fac32731ac0f10d67fe840a23cde57ab2d3ab9f3bcde373212 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-01](https://asc.understandingaccounting.org/updates/asu-2016-01/). #### Disclosures about Concentrations of Credit Risk ##### [825-944-50-1B](https://asc.understandingaccounting.org/asc/825/944/#825-944-50-1B) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:48.092Z to 2026-09-10T01:45:48.092Z Record version: sha256:abe1b681a376b63a4b0e0255814180d643655e66841335b5520095d3a75b389b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the provisions of Section 825-10-50, a [ceding entity](https://asc.understandingaccounting.org/glossary/c/#ceding-entity "The party that pays a reinsurance premium in a reinsurance transaction. The ceding entity receives the right to reimbursement from the assuming entity under the terms of the reinsurance contract.") should disclose concentrations of credit risk associated with both of the following: 1. a [Reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits.") 2. b [Prepaid reinsurance premiums](https://asc.understandingaccounting.org/glossary/p/#prepaid-reinsurance-premiums "Amounts paid to the reinsurer relating to the unexpired portion of reinsured contracts."). ##### [825-944-50-2](https://asc.understandingaccounting.org/asc/825/944/#825-944-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:48.092Z to 2026-09-10T01:45:48.092Z Record version: sha256:49a029a35e98cae9e64a20055c572bc1503a1f19f7015eaf7f25f913cccc19ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even if a ceding entity does not have a significant concentration of credit risk with a single [reinsurer](https://asc.understandingaccounting.org/glossary/r/#reinsurer "The assuming entity in a reinsurance transaction."), concentration of credit risk disclosures may be required under the provisions of Section 825-10-50. ##### [825-944-50-3](https://asc.understandingaccounting.org/asc/825/944/#825-944-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:48.092Z to 2026-09-10T01:45:48.092Z Record version: sha256:65fc1abaecb23ecb5f2e308db30ee6fc30638270a10ce28d013707f757fd368b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a ceding entity is aware that reinsured risks have been retroceded to a diverse group of retrocessionaires, disclosures about concentrations of credit risk still shall be made under Section 825-10-50 because the assuming entity's rights under the retrocessions generally are not available to the ceding entity to mitigate its credit risk. That is, the ceding entity's concentration of credit risk from the assuming entity is unchanged. Source downloaded (UTC): 2026-09-10T01:45:52.114Z to 2026-09-10T01:45:52.114Z Record version: sha256:73cb61c783f7dddd98f19ba65098074976e08ae130c84b49f1184b5316b5b7a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-944-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/825/944/#55-implementation-guidance-and-illustrations) SEC content: no ### Reinsurance Contracts ##### [825-944-55-1](https://asc.understandingaccounting.org/asc/825/944/#825-944-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:52.114Z to 2026-09-10T01:45:52.114Z Record version: sha256:36d655a8e3639f5eab7ca883e26ea8fba7668e0c4c46cff6aeb2b554242cd1f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 944-825-55-1 through 55-3 superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/asc/825/944/#825-944-55-1). Source downloaded (UTC): 2026-09-10T01:45:58.162Z to 2026-09-10T01:46:07.638Z Record version: sha256:ac294f7be4a6a61984a96a4e41b982b12092f4fc8779f36b848afd2f7b9b352a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-954: Financial Instruments — Health Care Entities ### Machine-generated study aids ```json { "summary": "This subtopic gives industry-specific guidance on financial instruments for not-for-profit, business-oriented health care entities. Its single substantive rule is a presentation rule: when such an entity elects the fair value option, the resulting unrealized gains and losses must be reported inside the performance indicator (or within discontinued operations, as appropriate) rather than outside it.", "key_points": [ "The Subtopic applies only to not-for-profit, business-oriented health care entities (825-954-15-2), and otherwise follows the scope in Section 954-10-15 (825-954-15-1).", "Unrealized gains and losses on items for which the fair value option has been elected are reported within the performance indicator, or as part of discontinued operations if appropriate (825-954-45-1).", "Paragraph 825-10-15-7 is cross-referenced for further guidance on eligible items for the fair value option (825-954-45-1).", "The guidance is presentation-only; it does not change whether or how the fair value option may be elected under Subtopic 825-10." ], "categories": [ "Financial instruments", "Presentation", "Industry-specific", "Not-for-profit" ], "audience_level": "intermediate", "student_note": "The performance indicator is the health care equivalent of income from continuing operations, and this rule keeps fair value option gains and losses inside it; a common mistake is assuming NFP health care entities can push these amounts below the performance indicator like other changes in net assets without donor restrictions.", "related_topics": [ "825-10", "954-10", "954-225", "820", "958-320" ], "key_concepts": [ "fair value option", "performance indicator", "unrealized gains and losses", "not-for-profit business-oriented health care entity", "discontinued operations", "income statement presentation" ] } ``` Source downloaded (UTC): 2026-09-10T01:45:58.162Z to 2026-09-10T01:45:58.162Z Record version: sha256:ef604b937dc3da9022410a22af2b2123db197005805e4c8c91163d911cb10278 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/825/954/#05-overview-and-background) SEC content: no ##### [825-954-05-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:58.162Z to 2026-09-10T01:45:58.162Z Record version: sha256:42b2290ff0c068cfcf37cb4563269176f894420035b0ba42f86652329dbbfd9f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on financial instruments for not-for-profit, business-oriented health care entities. Source downloaded (UTC): 2026-09-10T01:46:01.626Z to 2026-09-10T01:46:01.626Z Record version: sha256:d2d0f92f5793d626f06193a77a8623e02265f996c528d6940b8aca4c65c4c6a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/825/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [825-954-15-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:01.626Z to 2026-09-10T01:46:01.626Z Record version: sha256:ebfa0d1100182e0ccf5b71cfd5381e8b09b0cc787a644f920cd1feff759c2482 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 954-10-15, with specific entity qualifications noted below. #### Entities ##### [825-954-15-2](https://asc.understandingaccounting.org/asc/825/954/#825-954-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:01.626Z to 2026-09-10T01:46:01.626Z Record version: sha256:7d3eb9c0b09e4f99c1a448600e82a2d63fa090cf3745c911385cc98f10589ae1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies only to not-for-profit, business-oriented health care entities. Source downloaded (UTC): 2026-09-10T01:46:07.638Z to 2026-09-10T01:46:07.638Z Record version: sha256:8885399f76b1183e6b86626276499ba452f73b7d04c293368c8c335dd97b25aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/825/954/#45-other-presentation-matters) SEC content: no ##### [825-954-45-1](https://asc.understandingaccounting.org/asc/825/954/#825-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:46:07.638Z to 2026-09-10T01:46:07.638Z Record version: sha256:551051777d3b95a323007f578f4c781b6ddd9439fb48516982cd45306a73e246 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-profit, business-oriented health care entities shall report unrealized gains and losses on items for which the fair value option has been elected within the [performance indicator](https://asc.understandingaccounting.org/glossary/p/#performance-indicator "A performance indicator reports results of operations. A performance indicator and the income from continuing operations reported by for-profit health care entities generally are consistent, except for transactions that clearly are not applicable to one kind of entity (for example, for-profit health care entities typically would not receive contributions, and not-for-profit health care entities would not award stock compensation). That is, a performance indicator is analogous to income from continuing operations of a for-profit entity.") or as a part of discontinued operations, as appropriate. See paragraph [825-10-15-7](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-7) for further guidance.