# ASC 946-20-30: Financial Services—Investment Companies — Investment Company Activities — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/946/20/#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): 2026-09-10T02:19:44.628Z to 2026-09-10T02:19:44.628Z Record version: sha256:a1a236d51afa9ace18deb33c899fcabfa1608790cf1585549558acbcc1fc4ada Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 946-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/946/20/#30-initial-measurement) SEC content: no #### Payments by Affiliates ##### [946-20-30-1](https://asc.understandingaccounting.org/asc/946/20/#946-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:44.628Z to 2026-09-10T02:19:44.628Z Record version: sha256:f31975569c94e9d70c9b3f0d8ca164dd468082643b8096a29adfeb727f355366 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Certain Distribution Costs ##### [946-20-30-2](https://asc.understandingaccounting.org/asc/946/20/#946-20-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:44.628Z to 2026-09-10T02:19:44.628Z Record version: sha256:af3ecc67e28855f4c939e45c22fbe2c63fe0faa1fecae9ef6984cd0e57e28743 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [946-20-30-3 through 30-5](https://asc.understandingaccounting.org/asc/946/20/#946-20-30-3) applies to annual and interim financial statements of investment companies that adopt plans that comply with Rule [12b-1](https://asc.understandingaccounting.org/glossary/b/#12b-1 "Rule 12b-1 in Chapter 17 of the Code of Federal Regulations is one of the regulations implementing the Investment Company Act of 1940."). ##### [946-20-30-3](https://asc.understandingaccounting.org/asc/946/20/#946-20-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:44.628Z to 2026-09-10T02:19:44.628Z Record version: sha256:428b696d54a551cf7e9a03139bc2c8fb26a9a251ef8c89e0992cb0636b720c8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The liability and expense recognized under paragraph [946-20-25-3](https://asc.understandingaccounting.org/asc/946/20/#946-20-25-3) shall be measured initially in an amount equal to the cumulative [distribution costs](https://asc.understandingaccounting.org/glossary/d/#distribution-costs "Costs, as defined in a distribution agreement between a distributor and a fund, incurred by a distributor in distributing a fund's shares. Such costs may include commission payments to sales representatives, promotional materials, overhead allocations, and interest.") incurred by the [distributor](https://asc.understandingaccounting.org/glossary/d/#distributor "Usually the principal underwriter that sells the fund's capital shares by acting as an agent (intermediary between the fund and an independent dealer or the public) or as a principal, buying capital shares from the fund at net asset value and selling shares through dealers or to the public (see definition of underwriter in section 2(a)(40) of the Investment Company Act of 1940).") less the sum of all of the following: 1. a Cumulative 12b-1 fees paid 2. b Cumulative [contingent-deferred sales load](https://asc.understandingaccounting.org/glossary/c/#contingent-deferred-sales-load "A sales charge imposed directly on redeeming shareholders based on a percentage of the lesser of the redemption proceeds or original cost. The percentage may decrease or be eliminated based on the duration of share ownership (frequently decreases by 1 percent a year). Also referred to as back-end load.") payments 3. c Future cumulative contingent-deferred sales load payments by [current shareholders](https://asc.understandingaccounting.org/glossary/c/#current-shareholders "Shareholders of a fund, or a class of shares of a fund, at an evaluation or measurement date. Amounts attributable to current shareholders are based on shares outstanding at that date and do not include estimates of future reinvestments or other share purchases."), if reasonably estimable. ##### [946-20-30-4](https://asc.understandingaccounting.org/asc/946/20/#946-20-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:44.628Z to 2026-09-10T02:19:44.628Z Record version: sha256:6939c5af506193f1316fe165bf09771ae88959440077790efaa375df91d50076 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The liability and expense recognized under paragraph [946-20-25-3](https://asc.understandingaccounting.org/asc/946/20/#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. ##### [946-20-30-5](https://asc.understandingaccounting.org/asc/946/20/#946-20-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:44.628Z to 2026-09-10T02:19:44.628Z Record version: sha256:3340f72172cb750b3ed5bd3205385e67563b3bbbb64b45c67b82501886091128 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If these conditions are not met, the liability recognized under paragraph [946-20-25-3](https://asc.understandingaccounting.org/asc/946/20/#946-20-25-3) shall be calculated without discounting to present value.