{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/946/20/#30-initial-measurement","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":"946-20","subtopic_title":"Investment Company Activities","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Payments by Affiliates","paragraphs":[{"citation":"946-20-30-1","para":"30-1","html":"
The amount of the payment from a credit enhancement to maintain the investment's value shall be measured initially by the cost of obtaining a similar enhancement in an arm's-length transaction.
","snippet":"The amount of the payment from a credit enhancement to maintain the investment's value shall be measured initially by the cost of obtaining a similar enhancement in an arm's-length transaction.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f31975569c94e9d70c9b3f0d8ca164dd468082643b8096a29adfeb727f355366","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4830feb1397c5f1dc9d6e3c34e7e63d508a6650c885ef35c07e34b7c48ef2141","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}},{"block":null,"heading":"Certain Distribution Costs","paragraphs":[{"citation":"946-20-30-2","para":"30-2","html":"
The guidance in paragraphs
946-20-30-3 through 30-5
applies to annual and interim financial statements of investment companies that adopt plans that comply with Rule 12b-1.
","snippet":"The guidance in paragraphs 946-20-30-3 through 30-5 applies to annual and interim financial statements of investment companies that adopt plans that comply with Rule 12b-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af3ecc67e28855f4c939e45c22fbe2c63fe0faa1fecae9ef6984cd0e57e28743","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}},{"citation":"946-20-30-3","para":"30-3","html":"
The liability and expense recognized under paragraph 946-20-25-3 shall be measured initially in an amount equal to the cumulative distribution costs incurred by the distributor less the sum of all of the following:
  1. a
    Cumulative 12b-1 fees paid
  2. b
    Cumulative contingent-deferred sales load payments
  3. c
    Future cumulative contingent-deferred sales load payments by current shareholders, if reasonably estimable.
","snippet":"The liability and expense recognized under paragraph 946-20-25-3 shall be measured initially in an amount equal to the cumulative distribution costs incurred by the distributor less the sum of all of the following:\n(a) C…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:428b696d54a551cf7e9a03139bc2c8fb26a9a251ef8c89e0992cb0636b720c8c","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}},{"citation":"946-20-30-4","para":"30-4","html":"
The liability and expense recognized under paragraph 946-20-25-3 shall be measured at its present value, calculated using an appropriate current interest rate, if both of the following criteria are met:
  1. a
    The amount and timing of cash flows are reliably determinable.
  2. b
    The distribution costs are not subject to a reasonable interest charge.
","snippet":"The liability and expense recognized under paragraph 946-20-25-3 shall be measured at its present value, calculated using an appropriate current interest rate, if both of the following criteria are met:\n(a) The amount an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6939c5af506193f1316fe165bf09771ae88959440077790efaa375df91d50076","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}},{"citation":"946-20-30-5","para":"30-5","html":"
If these conditions are not met, the liability recognized under paragraph 946-20-25-3 shall be calculated without discounting to present value.
","snippet":"If these conditions are not met, the liability recognized under paragraph 946-20-25-3 shall be calculated without discounting to present value.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3340f72172cb750b3ed5bd3205385e67563b3bbbb64b45c67b82501886091128","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa8efd0a2b37272cf93921b7d9cea30399f647d001963d41142ea4242836e8c9","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a1a236d51afa9ace18deb33c899fcabfa1608790cf1585549558acbcc1fc4ada","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a1a236d51afa9ace18deb33c899fcabfa1608790cf1585549558acbcc1fc4ada","downloaded_from":"2026-09-10T02:19:44.628Z","last_downloaded_at":"2026-09-10T02:19:44.628Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480154","source_sha256":"c8847d94faa4cd86b339982e5330f8e912dddf679589ca76cacb5e4e84ede4e8"}}