ASC

ASC 940-10

Overall

940 Financial Services—Brokers and Dealers

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In brief

IntroductoryIndustry-specificFinancial instrumentsFair value

ASC 940-10 is the Overall subtopic of the Financial Services—Brokers and Dealers Topic, which lists the Topic's constituent subtopics (Broker-Dealer Activities, Receivables, Investments, Other Assets and Deferred Costs, Liabilities, Consolidation, and Fair Value Measurements) and sets its scope. The Topic applies to all entities that are brokers and dealers in securities and supplies only incremental industry-specific guidance; broker-dealers must still follow all other applicable GAAP outside the Topic.

Key points (5)
  • The Topic contains Subtopics relating specifically to broker-dealers, including Overall, Broker-Dealer Activities, Receivables, Investments—Debt and Equity Securities, Investments—All Other, Other Assets and Deferred Costs, Liabilities, Consolidation, and Fair Value Measurements (940-10-05-1).
  • One listed subparagraph of the subtopic list was superseded by ASU 2014-09 (revenue recognition) (940-10-05-1(h)).
  • Each Subtopic provides its own background on the guidance it contains (940-10-05-2).
  • The Subtopics provide only incremental industry-specific guidance for entities defined in the Scope Sections; those entities must also comply with applicable guidance not included in the Topic (940-10-15-1).
  • The Topic's scope covers all entities that are brokers and dealers in securities (broker-dealers) (940-10-15-2).

For students. This is a navigational/scope subtopic: the key takeaway is that broker-dealer guidance is layered on top of, not instead of, general GAAP. A common misunderstanding is assuming ASC 940 is a self-contained accounting model for broker-dealers.

broker-dealerindustry-specific guidanceincremental guidancescopesecurities brokers and dealerssubtopic organization

Machine-generated study aid for ASC 940-10. Check the source paragraphs below.

940-10-00Status

Source downloaded: .Record version a48a08c815e2. Effective date must be checked in the source.

940-10-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
940-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014

940-10-05Overview and Background

Source downloaded: .Record version 9b27b989f937. Effective date must be checked in the source.

940-10-05-1
The Financial Services—Brokers and Dealers Topic includes the following Subtopics relating specifically to brokers and dealers in securities (broker-dealers):
  1. a
    Overall
  2. b
    Broker-Dealer Activities
  3. c
    Receivables
  4. d
    Investments—Debt and Equity Securities
  5. e
    Investments—All Other
  6. f
    Other Assets and Deferred Costs
  7. g
    Liabilities
  8. h
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
  9. i
    Consolidation
  10. j
    Fair Value Measurements.
940-10-05-2
Each Subtopic provides background on the guidance provided.

940-10-15Scope and Scope Exceptions

Source downloaded: .Record version 03faa317ef03. Effective date must be checked in the source.

Overall Guidance

940-10-15-1
The Subtopics within the Financial Services—Brokers and Dealers Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.

Entities

940-10-15-2
The Financial Services—Brokers and Dealers Topic provides guidance for all entities that are brokers and dealers in securities (broker-dealers).

Related subtopics