# ASC 946-20-50: Financial Services—Investment Companies — Investment Company Activities — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/946/20/#50-disclosure) 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): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:3be31c489c21068c024df5b1c101b241106ede245cc04a421ec1db2638cbfb1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 946-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/946/20/#50-disclosure) SEC content: no ##### [946-20-50-1](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:c4ecf7ed0527deecb2ec7b56daef40d82908626ebfac3f63df47f9de510a1d39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2013-08](https://asc.understandingaccounting.org/updates/asu-2013-08/). #### Payments by Affiliates ##### [946-20-50-2](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:21e729d6e532f03034f7b7c776646146e308aedcbdfeb7966c33a9481228991b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts and circumstances of payments by affiliates to reimburse the fund for losses on investment transactions shall be described in the notes to financial statements. The gains and losses on investments not meeting investment guidelines of the fund shall also be disclosed in the notes to financial statements. In addition, the effect on total return of the payments, as well as any gains or losses on investments not meeting investment guidelines of the fund, shall be quantified and disclosed in the financial highlights in a manner similar to disclosure of the effect of voluntary waivers of fees and expenses on expense ratios. (See Subtopic 850-10.) Total return shall be presented in the financial highlights. #### Certain Distribution Costs ##### [946-20-50-3](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:5d3f780bd690deb6e03da348b25068c8f769a71cc7609cef4a1e1f8915b965ed 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."). For both [board-contingent plans](https://asc.understandingaccounting.org/glossary/b/#board-contingent-plan "A reimbursement 12b-1 plan that provides that, on the plan's termination, a fund's board of directors has the option, but not the requirement, to pay the distributor for any excess costs incurred by the distributor.") and [enhanced 12b-1 plans](https://asc.understandingaccounting.org/glossary/e/#enhanced-12b-1-plan "A reimbursement 12b-1 plan that provides that, on termination of the plan, the fund is required to continue paying the 12b-1 fee to the extent the distributor has excess costs."), funds shall disclose in their financial statements the principal terms of such plans and any plan provisions permitting or requiring payments of [excess costs](https://asc.understandingaccounting.org/glossary/e/#excess-costs "The cumulative distribution costs incurred by the distributor less the sum of cumulative 12b-1 fees paid, cumulative contingent-deferred sales load payments, and future cumulative contingent-deferred sales load payments by current shareholders, if reasonably estimable.") after plan termination. For board-contingent and enhanced plans, the aggregate amount of [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.") subject to recovery through future payments by the fund pursuant to the plan and through future [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 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.") shall be disclosed. For enhanced plans, funds shall disclose the methodology used to estimate future contingent-deferred sales load payments by current shareholders. ##### [946-20-50-4](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:6b52de203e332dab9409b7613032c10409b6a55b85efedbfa60870cc9d352fbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a 12b-1 distribution [reimbursement plan](https://asc.understandingaccounting.org/glossary/r/#reimbursement-plan "A plan that provides for a 12b-1 fee, payable by the fund, that may not exceed the lesser of an annual percentage of the fund's average net assets or actual costs incurred by the distributor net of contingent-deferred sales load received by the distributor.") provides for the carryover of unreimbursed costs to subsequent periods, the terms of reimbursement and the unreimbursed amount shall be disclosed. #### General Partner Advisory Services ##### [946-20-50-5](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:16d8f11311b653a6dd1c8575d2b6736e9eec8c600421e6da687ba9957d7afcef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The method of computing payments or allocations for advisory services from the general partner shall be described in the notes to financial statements. #### Expense Limitation Agreements ##### [946-20-50-6](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:f4d6cfa537f2bfddfce952e998ef580edf68a6a6c88768505a6442a5df905f36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The existence of reimbursement agreements and the carryover of excess expenses potentially reimbursable to the adviser but not recorded as a liability shall be disclosed in the notes to financial statements. #### Fee Waivers ##### [946-20-50-7](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:f5d61d0a787837b7eaf7613f639d64b4781515f864cc6639e536b002ac47e138 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All voluntary and involuntary fee waivers shall be disclosed on the face of the statement of operations as a reduction of total expenses. The expense ratio in the financial highlights shall be shown net of voluntary and involuntary waivers. The effect of only voluntary waivers on the expense ratio shall be disclosed (either as the basis point effect on the ratio or as the gross expense ratio) in a note to, or as part of, the financial highlights. In addition, the terms of all voluntary and involuntary waivers shall be disclosed in the notes to financial statements. #### Dividends ##### [946-20-50-8](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:37e7975a0b4bdcb052177db8e371d29ae0105bebb29c0c8cdd7441bdaf6d44e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Dividends paid to investors shall be disclosed as a single line item in the statement of changes in net assets, except tax [return of capital](https://asc.understandingaccounting.org/glossary/r/#return-of-capital "Distributions by investment companies in excess of tax-basis earnings and profits.") distributions, which shall be disclosed separately. The notes shall disclose the tax basis components of the dividends paid (that is, either from ordinary income, capital gains, or tax return of capital). Disclosing dividends on a tax basis is consistent with how dividends are reported to shareholders during and at the end of the calendar year. The financial highlights table would disclose per-share information that is consistent with the statement of changes in net assets. ##### [946-20-50-9](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:f2eb3fbc10dc88f4e8ca688bc3b8b214f3a04f725909f9b3af1514f226c6cedf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Dividends from affiliates and controlled companies shall be disclosed. ##### [946-20-50-10](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:6cf39a5b88f808ec50b0f491932ff84b0af911fdd6458b4f0d99fc9ce858a265 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If management of a fund determines that a tax return of capital is likely to occur for the fund's fiscal year, although the exact amount may not be estimable, that fact shall be disclosed in a note to the interim financial statements. #### Components of Capital and Distributable Earnings ##### [946-20-50-11](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-11) Pending content: yes Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:0244bed059099e67dd2bc79d12b91acd0a8b4b1190699cfd478500592e652ce6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance requires all investment companies to disclose only two components of capital on the balance sheet: shareholder capital and distributable earnings. The components of distributable earnings, on a tax basis, shall be disclosed in a note to financial statements. This information enables investors to determine the amount of accumulated and undistributed earnings they potentially could receive in the future and on which they could be taxed. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7) This guidance requires all investment companies to disclose two components of capital on the balance sheet: shareholder capital and distributable earnings. The components of distributable earnings, on a tax basis, shall be disclosed in a note to financial statements. This information enables investors to determine the amount of accumulated and undistributed earnings they potentially could receive in the future and on which they could be taxed. ##### [946-20-50-12](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:97be99dd2591194b251d034e04bdc8cd156d38641ff6f234113bacd564ea3173 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The notes shall disclose all of the following tax-basis components of distributable earnings as of the most recent tax year end: 1. a Undistributed ordinary income 2. b Undistributed long-term capital gains 3. c Capital loss carryforwards 4. d Unrealized appreciation (depreciation). ##### [946-20-50-13](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:c086608370405ec5e3d42ddc7fd6f541012e657974209f1c0e11270d8dafc8c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [946-740-35-1](https://asc.understandingaccounting.org/asc/740/946/#740-946-35-1) and [946-740-50-1](https://asc.understandingaccounting.org/asc/740/946/#740-946-50-1) require that, if a provision for deferred income taxes on unrealized appreciation exists, it be charged against the unrealized gains account and disclosed as such in the statement of operations. Explanations shall be provided for the differences between the total of these amounts and distributable earnings (accumulated losses). ##### [946-20-50-14](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:36d1ba60223e8f529eafefade241e5458970d29622057624f48f5e78331ef611 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment partnerships and other pass-through entities shall aggregate all elements of equity into partners' capital, because the results from operations are deemed distributed to each partner. #### Financial Support to Investees ##### [946-20-50-15](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:4d323528b1c973cadc6013a5f88cd46a902b250b56c12fa075fab400f39a85a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, during the periods presented, an investment company provides financial support to an investee, it shall disclose information about both of the following items, disaggregated by financial support that it was contractually required to provide and financial support that it was not previously contractually required to provide: 1. a The type and amount of financial support provided, including situations in which the investment company assisted the investee in obtaining financial support 2. b The primary reasons for providing the financial support. ##### [946-20-50-16](https://asc.understandingaccounting.org/asc/946/20/#946-20-50-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:19:56.221Z to 2026-09-10T02:19:56.221Z Record version: sha256:ca9ee18f429628f405c06d6d4d0a5d4a3aabf253f440cac1624841e273072913 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An investment company also shall separately disclose both of the following items about financial support that it is contractually required to provide to any of its investees but has not yet provided: 1. a The type and amount of financial support to be provided, including situations in which the investment company must assist the investee in obtaining financial support 2. b The primary reasons for the contractual requirement to provide the financial support.