# ASC 946-20-45: Financial Services—Investment Companies — Investment Company Activities — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/946/20/#45-other-presentation-matters) 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): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:c21df030be9b562c2ee44c343d8398e112ab208ce42d3d59d28a7855e2648910 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 946-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/946/20/#45-other-presentation-matters) SEC content: no #### Payments by Affiliates ##### [946-20-45-1](https://asc.understandingaccounting.org/asc/946/20/#946-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:7d9b10c7bdfef47591d448a88708fe1559e3a8aa9ec78b005f9341c911b210c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payments made by affiliates for the two reasons in paragraph [946-20-05-2](https://asc.understandingaccounting.org/asc/946/20/#946-20-05-2) shall be combined and reported as a separate line item entitled net increase from payments by affiliates and net gains (losses) realized on the disposal of investments in violation of restrictions in the statement of operations as part of net realized and unrealized gains (losses) from investments and foreign currency. That separate line item would comprise amounts related to all of the following: 1. a Voluntary reimbursements by the affiliate for investment transaction losses 2. b Realized and unrealized losses on investments not meeting the investment guidelines of the fund 3. c Reimbursements from the affiliate for losses on investments not meeting the investment guidelines of the fund 4. d Realized and unrealized gains on investments not meeting the investment guidelines of the fund. #### Certain Distribution Costs ##### [946-20-45-2](https://asc.understandingaccounting.org/asc/946/20/#946-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:e25eaa8d782bf57f7b3c90a88dd6c810fd9dcab24fbd476a34aab1445dc6c88a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this paragraph 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."). An excess of cumulative 12b-1 fees and [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 to date and future 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.") over the cumulative costs 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).") shall not be reported as an asset. #### Brokerage Service Arrangements ##### [946-20-45-3](https://asc.understandingaccounting.org/asc/946/20/#946-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:82e13bdccf41215ffac67c357fb9868c1cd7b8174632a1d73d4c075b05ce86a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The relevant expense caption on the statement of operations and the expense ratio in the financial highlights shall include the amount that would have been incurred by the investment company for brokerage services had it paid for the services directly in an arm's-length transaction. Such amounts shall also be shown as a corresponding reduction in total expenses, captioned as fees paid indirectly. #### General Partner Advisory Services ##### [946-20-45-4](https://asc.understandingaccounting.org/asc/946/20/#946-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:446d686ac7b2328401736ddcbe45da8698e3bc1c57f8b2f7844992c92d4aa342 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts of any payments or allocations for advisory services from the general partner shall be presented in either the statement of operations or the statement of changes in partners' capital. #### Expense Offset Arrangements ##### [946-20-45-5](https://asc.understandingaccounting.org/asc/946/20/#946-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:e198f12c716d5804666c8211af4e26e2508be22b2f369ca7f4374d713703d87b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expense offset arrangements, under which a third party explicitly reduces its fees by a specified or readily ascertainable amount for services provided to the investment company in exchange for use of the investment company's assets, shall be presented in the statement of operations, the expense ratio in the financial highlights, and notes to financial statements in the same manner as brokerage service arrangements. #### Small Business Investment Companies ##### [946-20-45-6](https://asc.understandingaccounting.org/asc/946/20/#946-20-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:37fa9f232e581d2c98e331101685b36ee19342d31015b577a4e9cdf29d2bd6b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The unique features (primarily the existence of significant debt) of small business investment companies often make it desirable that their financial statements be presented in a conventional balance sheet format. #### Venture Capital Investment Companies ##### [946-20-45-7](https://asc.understandingaccounting.org/asc/946/20/#946-20-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:52.764Z to 2026-09-10T02:19:52.764Z Record version: sha256:0bed636300465a1e36ce05b622120455bec862a05800e84574d3d153a50a0551 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Though all venture capital investment companies shall prepare their financial statements in conformity with generally accepted accounting principles (GAAP), the statement presentation of some venture capital investment companies may need to be tailored to present the information in a manner most meaningful to their particular group of investors. For example, if debt is a significant item, a balance sheet might be more appropriate than a statement of net assets.