{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/946/10/#15-scope-and-scope-exceptions","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"946","topic_title":"Financial Services—Investment Companies","subtopic":"946-10","subtopic_title":"Overall","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"946-10-15-1","para":"15-1","html":"
The Financial Services—Investment Companies Topic only provides incremental industry-specific guidance for the entities that meet the assessment of investment company status described in this Scope Section, with the exception of Subtopic 946-605, which has its own discrete scope. Entities within the scope of this Topic also shall comply with the applicable guidance not included in this Topic. The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Financial Services—Investment Companies Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Financial Services—Investment Companies Topic, with the exception of Subtopic 946-605.
","snippet":"The Financial Services—Investment Companies Topic only provides incremental industry-specific guidance for the entities that meet the assessment of investment company status described in this Scope Section, with the exce…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:186fdd05d3d030d1a11e4c308684f686020fcbbe16175ed99ee51177df6eba4f","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:820b4d7a88b8061a01f5e4091d88696a4cc82e48f30f29e71d441b08367a016b","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"946-10-15-2","para":"15-2","html":"
The accounting principles discussed in this Topic apply to all investment companies. An investment company as discussed in this Topic is an entity that meets the assessment described in paragraphs
946-10-15-4 through 15-9
.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2013-08.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2013-08.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2013-08.
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2013-08.
","snippet":"The accounting principles discussed in this Topic apply to all investment companies. An investment company as discussed in this Topic is an entity that meets the assessment described in paragraphs 946-10-15-4 through 15-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85da428719cbf8f531850a7c3ff20be96d53926e62d0e4f808605e57cbca4990","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"citation":"946-10-15-3","para":"15-3","html":"
The guidance in this Topic does not apply to real estate investment trusts.
","snippet":"The guidance in this Topic does not apply to real estate investment trusts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b56c958f54fc8741c6410ea9696f4d098d874fd8b2f466aef3fd6862ba431b8","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"citation":"946-10-15-4","para":"15-4","html":"
An entity regulated under the Investment Company Act of 1940 is an investment company under this Topic.
","snippet":"An entity regulated under the Investment Company Act of 1940 is an investment company under this Topic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7cdc19aceb80d2e6458f9e553be88acbf16b472fcfb2ded0f5f0b346bbf6fe2a","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"citation":"946-10-15-5","para":"15-5","html":"
An entity that is not regulated under the Investment Company Act of 1940 shall assess all the characteristics of an investment company in paragraphs
946-10-15-6 through 15-7
to determine whether it is an investment company. The entity shall consider its purpose and design when making that assessment.
","snippet":"An entity that is not regulated under the Investment Company Act of 1940 shall assess all the characteristics of an investment company in paragraphs 946-10-15-6 through 15-7 to determine whether it is an investment compa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2b1cd322ac329714e343bf55db530ee32c7e26eca220a07c800f4260fefaee0","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"citation":"946-10-15-6","para":"15-6","html":"
An investment company has the following fundamental characteristics:
  1. a
    It is an entity that does both of the following:
    1. 1
      Obtains funds from one or more investors and provides the investor(s) with investment management services
    2. 2
      Commits to its investor(s) that its business purpose and only substantive activities are investing the funds solely for returns from capital appreciation, investment income, or both.
  2. b
    The entity or its affiliates do not obtain or have the objective of obtaining returns or benefits from an investee or its affiliates that are not normally attributable to ownership interests or that are other than capital appreciation or investment income.
","snippet":"An investment company has the following fundamental characteristics:\n(a) It is an entity that does both of the following:\n(1) Obtains funds from one or more investors and provides the investor(s) with investment manageme…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae423181411eec9cd35d8d585ff318eb667d2b7edb8bfa409d549d48fbe9f777","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"citation":"946-10-15-7","para":"15-7","html":"
An investment company also has the following typical characteristics:
  1. a
    It has more than one investment.
  2. b
    It has more than one investor.
  3. c
    It has investors that are not related parties of the parent (if there is a parent) or the investment manager.
  4. d
    It has ownership interests in the form of equity or partnership interests.
  5. e
    It manages substantially all of its investments on a fair value basis.
","snippet":"An investment company also has the following typical characteristics:\n(a) It has more than one investment.\n(b) It has more than one investor.\n(c) It has investors that are not related parties of the parent (if there is a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:729fe5100cc8d1e1d16008a7b6e2944085a766b14a215285caa08287f929700e","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"citation":"946-10-15-8","para":"15-8","html":"
To be an investment company, an entity shall possess the fundamental characteristics in paragraph 946-10-15-6. Typically, an investment company also has all of the characteristics in paragraph 946-10-15-7. However, the absence of one or more of those typical characteristics does not necessarily preclude an entity from being an investment company. If an entity does not possess one or more of the typical characteristics, it shall apply judgment and determine, considering all facts and circumstances, how its activities continue to be consistent (or are not consistent) with those of an investment company.
","snippet":"To be an investment company, an entity shall possess the fundamental characteristics in paragraph 946-10-15-6. Typically, an investment company also has all of the characteristics in paragraph 946-10-15-7. However, the a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2e9b3dd69501e9237f1aced50feb18d05e944c7f97010105fdc33f92468acbb","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},{"citation":"946-10-15-9","para":"15-9","html":"
The implementation guidance in Section 946-10-55 is an integral part of assessing investment company status and provides additional guidance for that assessment.
","snippet":"The implementation guidance in Section 946-10-55 is an integral part of assessing investment company status and provides additional guidance for that assessment.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3a1111e7309e67e60950e0740a030e9998f90e95f6e08ad621525fb78ff27686","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5574f23d5acf2753f00f329d21227c01b8be34ac8d83fa6060135c85dbdee487","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce4d3c5f28b6859abc67b1edae48dfc38107a199ea3a37dae8737fa10a1b3250","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce4d3c5f28b6859abc67b1edae48dfc38107a199ea3a37dae8737fa10a1b3250","downloaded_from":"2026-09-10T02:18:51.337Z","last_downloaded_at":"2026-09-10T02:18:51.337Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480509","source_sha256":"9ad5375bc076453f233b8d5b5d1fb5901306704d7fc9a1a9a5b82795c66270a7"}}