# ASC 946-20-35: Financial Services—Investment Companies — Investment Company Activities — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/946/20/#35-subsequent-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): 2026-09-10T02:19:47.616Z to 2026-09-10T02:19:47.616Z Record version: sha256:16f2d63b70483f34f11389c3b31be102076a684845279210f32506b0c942a644 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 946-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/946/20/#35-subsequent-measurement) SEC content: no #### Payments by Affiliates ##### [946-20-35-1](https://asc.understandingaccounting.org/asc/946/20/#946-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:47.616Z to 2026-09-10T02:19:47.616Z Record version: sha256:022540897ec038c7885bbd403651338cbb1cc36bdc69590e65c92ba5432916ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any subsequent change in the value of a credit enhancement to maintain the investment's value shall be accounted for as unrealized appreciation or depreciation. #### Certain Distribution Costs ##### [946-20-35-2](https://asc.understandingaccounting.org/asc/946/20/#946-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:47.616Z to 2026-09-10T02:19:47.616Z Record version: sha256:163acb9778cdd105b6acdc1d4ac5f35c5941f9d83cfb934cbd7d492dcc7b09bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the following paragraph and paragraph [946-20-35-4](https://asc.understandingaccounting.org/asc/946/20/#946-20-35-4) 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."). ##### [946-20-35-3](https://asc.understandingaccounting.org/asc/946/20/#946-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:47.616Z to 2026-09-10T02:19:47.616Z Record version: sha256:b4609feb39ab6514c8e4ddee3fb48101b6f74cd03118d7501cf6a68b05ca329a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The liability recognized under paragraph [946-20-25-3](https://asc.understandingaccounting.org/asc/946/20/#946-20-25-3) shall be subsequently measured using the guidance in paragraphs [946-20-30-4 through 30-5](https://asc.understandingaccounting.org/asc/946/20/#946-20-30-4) . Changes in the liability shall be recognized in the statement of operations as an expense or reduction in expense. ##### [946-20-35-4](https://asc.understandingaccounting.org/asc/946/20/#946-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:47.616Z to 2026-09-10T02:19:47.616Z Record version: sha256:b6d9887e82c0c183c0a6283287dbe243f8dc1b9339284c42a4530c17986f652c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any future 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 shall be based on all of the following: 1. a Current [net asset value per share](https://asc.understandingaccounting.org/glossary/n/#net-asset-value-per-share "Net asset value per share is the amount of net assets attributable to each share of capital stock (other than senior equity securities, that is, preferred stock) outstanding at the close of the period. It excludes the effects of assuming conversion of outstanding convertible securities, whether or not their conversion would have a diluting effect.") 2. b The number of shares currently outstanding and the number of years that they have been outstanding 3. c Estimated shareholder [persistency](https://asc.understandingaccounting.org/glossary/p/#persistency "The length of time a shareholder owns shares of a particular fund or class of shares of a fund before redemption.") based on historical fund data or, if historical fund data are not available, group or industry data for a similar class of shares. #### Offering Costs ##### [946-20-35-5](https://asc.understandingaccounting.org/asc/946/20/#946-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:47.616Z to 2026-09-10T02:19:47.616Z Record version: sha256:904ea2500fe82090411a3fe99054ce026097aa4d8f1f554103e6c0d0c54b7675 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Offering costs](https://asc.understandingaccounting.org/glossary/o/#offering-costs "Offering costs include all of the following: Legal fees pertaining to the investment company's shares offered for sale Securities and Exchange Commission (SEC)and state registration fees Underwriting and other similar costs Costs of printing prospectuses for sales purposes Initial fees paid to be listed on an exchange Tax opinion costs related to offering of shares Initial agency fees of securing the rating for bonds or preferred stock issued by closed-end funds.") recognized as a deferred charge under paragraph [946-20-25-6](https://asc.understandingaccounting.org/asc/946/20/#946-20-25-6) shall be amortized to expense over 12 months on a straight-line basis when operations begin. ##### [946-20-35-6](https://asc.understandingaccounting.org/asc/946/20/#946-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:47.616Z to 2026-09-10T02:19:47.616Z Record version: sha256:b150f175cde32ff10e93ff1a9e2fc8bf830f77c4945bfff4c216c045501e44e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Offering costs of unit investment trusts shall be charged to paid-in capital on a pro rata basis as the units or shares are issued or sold by the trust (when the units are purchased by the underwriters). Units sold to underwriters on a firm basis are considered sold by the trust, and the offering costs associated with those units shall be charged to paid-in capital when the units are purchased by the underwriters. Offering costs that remain unamortized at the end of the year shall be reviewed for impairment. (For guidance concerning organization and offering costs, see Subtopic 720-15.)