{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/946/10/#25-recognition","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":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Reassessment of Investment Company Status","paragraphs":[{"citation":"946-10-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0C7B59C9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The initial determination of whether an entity is an investment company within the scope of this Topic shall be made upon formation of the entity. An entity shall reassess whether it meets (or does not meet) the assessment of investment company status in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/946/10/#946-10-15-4\" class=\"xref\">946-10-15-4 through 15-9</a></div> only if there is a subsequent change in the purpose and design of the entity or if the entity is no longer regulated under the Investment Company Act of 1940.</span></span> </div> </div>","snippet":"The initial determination of whether an entity is an investment company within the scope of this Topic shall be made upon formation of the entity. An entity shall reassess whether it meets (or does not meet) the assessme…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4e0e3bfdcc9f445f3041ae51c33bf08cd8c769a693b6ad2a3e96236fadd3ae5","downloaded_from":"2026-09-10T02:18:56.377Z","last_downloaded_at":"2026-09-10T02:18:56.377Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480448","source_sha256":"2014d07eea5aad3703c1ba2987efa2fe19315b6fd1d0d362c5c1d44ff694a35a"}},{"citation":"946-10-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0C7B5B61-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity that is no longer an investment company under this Topic as a result of the reassessment of status shall discontinue applying the guidance in this Topic and shall account for the change in its status prospectively by accounting for its investments in accordance with other Topics as of the date of the change in status. The <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"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.\"><span>fair value</span></a> of an investment at the date of the change in status shall be the investment's initial carrying amount.</span></span> </div> </div>","snippet":"An entity that is no longer an investment company under this Topic as a result of the reassessment of status shall discontinue applying the guidance in this Topic and shall account for the change in its status prospectiv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b706408678806f40acfa0208056f61bc6bcb80ac3f9e7c0d45af762398c94925","downloaded_from":"2026-09-10T02:18:56.377Z","last_downloaded_at":"2026-09-10T02:18:56.377Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480448","source_sha256":"2014d07eea5aad3703c1ba2987efa2fe19315b6fd1d0d362c5c1d44ff694a35a"}},{"citation":"946-10-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0C7B5CA8-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity that subsequently is an investment company under this Topic as result of the reassessment of status shall account for the effect of the change in status from the date of the change in status. The effect of applying this Topic shall be recognized as a cumulative-effect adjustment to net assets at the date of the change in status. The cumulative-effect adjustment shall be included in the net asset value at the beginning of the period in the per-share information included in the financial highlights. The adjustment to net assets represents both of the following:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_0C7B5DD2-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The difference between the fair value and the carrying amount of the entity's investees (or <a href=\"/glossary/p/#parent\" class=\"term\" title=\"An entity that has a controlling financial interest in one or more subsidiaries. (Also, an entity that is the primary beneficiary of a variable interest entity.)\"><span>parent</span></a>'s portion of the assets minus liabilities for consolidated investments) at the date of the change in status</span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_0C7B5EF9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Any amounts previously recognized in accumulated other comprehensive income.</span></span> </div> </li> </ol> </div> </div>","snippet":"An entity that subsequently is an investment company under this Topic as result of the reassessment of status shall account for the effect of the change in status from the date of the change in status. The effect of appl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd38ef822bbabc2f349e94a53734663e95213eb3d5bc74a6bee88937661e491a","downloaded_from":"2026-09-10T02:18:56.377Z","last_downloaded_at":"2026-09-10T02:18:56.377Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480448","source_sha256":"2014d07eea5aad3703c1ba2987efa2fe19315b6fd1d0d362c5c1d44ff694a35a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b33a43680ccbd0c252da4bbc5fdc10ec375b88e852025e4121188959d87917c","downloaded_from":"2026-09-10T02:18:56.377Z","last_downloaded_at":"2026-09-10T02:18:56.377Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480448","source_sha256":"2014d07eea5aad3703c1ba2987efa2fe19315b6fd1d0d362c5c1d44ff694a35a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e60fcec6f7ec5e4eb87288602178aeb734cae715ff7d69e8ad1b5b6dffa2368","downloaded_from":"2026-09-10T02:18:56.377Z","last_downloaded_at":"2026-09-10T02:18:56.377Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480448","source_sha256":"2014d07eea5aad3703c1ba2987efa2fe19315b6fd1d0d362c5c1d44ff694a35a"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e60fcec6f7ec5e4eb87288602178aeb734cae715ff7d69e8ad1b5b6dffa2368","downloaded_from":"2026-09-10T02:18:56.377Z","last_downloaded_at":"2026-09-10T02:18:56.377Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480448","source_sha256":"2014d07eea5aad3703c1ba2987efa2fe19315b6fd1d0d362c5c1d44ff694a35a"}}