# ASC 852-20-30: Reorganizations — Quasi-Reorganizations — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/852/20/#30-initial-measurement)

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): 2026-09-10T02:03:39.791Z to 2026-09-10T02:03:39.791Z

Record version: sha256:e503954611a8431df461ada9cfaea297bf5f392cef18356c34e7ffcffe1b9389

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 852-20-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/852/20/#30-initial-measurement)

SEC content: no

##### [852-20-30-1](https://asc.understandingaccounting.org/asc/852/20/#852-20-30-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:03:39.791Z to 2026-09-10T02:03:39.791Z

Record version: sha256:ee275d74c2869e1c042a72f5f0bc15c9a4273bd5a62512cf746894cfc82a1a6c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Section provides guidance on the adjustment of accounts required by paragraph [852-20-25-3](https://asc.understandingaccounting.org/asc/852/20/#852-20-25-3) as of the readjustment date in connection with the readjustments addressed by this Subtopic.

##### [852-20-30-2](https://asc.understandingaccounting.org/asc/852/20/#852-20-30-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:03:39.791Z to 2026-09-10T02:03:39.791Z

Record version: sha256:a61349c101d1bcd9de729a33e1deff0fb627ea1f1e02ab60e618625857a13a24

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A write-down of assets below amounts that are likely to be subsequently realized, though it may result in conservatism in the balance sheet at the readjustment date, may also result in overstatement of earnings or of retained earnings when the assets are subsequently realized. Therefore, in general, assets shall be carried forward as of the date of readjustment at fair and not unduly conservative amounts, determined with due regard for the accounting to be subsequently employed by the entity.

##### [852-20-30-3](https://asc.understandingaccounting.org/asc/852/20/#852-20-30-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:03:39.791Z to 2026-09-10T02:03:39.791Z

Record version: sha256:2a249c18d2f220178b63ae7811ca33604ba5175ecc97f7dca862926755e1175a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


If the fair value of any asset is not readily determinable a conservative estimate may be made, but in that case the amount shall be described as an estimate. Paragraph [852-20-35-2](https://asc.understandingaccounting.org/asc/852/20/#852-20-35-2) describes the subsequent accounting for any material difference arising through realization or otherwise and not attributable to events occurring or circumstances arising after that date.

##### [852-20-30-4](https://asc.understandingaccounting.org/asc/852/20/#852-20-30-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:03:39.791Z to 2026-09-10T02:03:39.791Z

Record version: sha256:b60027953b643d5508fdb5e0b87d8699ed9e35890602505edf66de608c401278

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Similarly, if potential losses or charges are known to have arisen before the date of readjustment but such amounts are then indeterminate, provision may properly be made to cover the maximum probable losses or charges.