other-than-temporary impairment

Assets3

1. 323-10Overall323 Investments—Equity Method and Joint Ventures

   ASC 323-10 governs the equity method of accounting for investments in common stock (and in-substance common stock) of corporate joint ventures and other investees over which the investor can exercise significant influence but does not control. An investment of 20% or more of the voting stock creates a rebuttable presumption of significant influence (323-10-15-8); under the method, the investment is initially recorded at cost (323-10-30-2) and then adjusted for the investor's share of investee earnings/losses, dividends, OCI, intra-entity profit eliminations, and basis-difference amortization, and reported as a single line on both the balance sheet and income statement (323-10-45-1). Losses are recognized only down to zero (plus other investments and committed support), and other-than-temporary declines in value must be recognized (323-10-35-32).

2. 325-20Cost Method Investments325 Investments—Other

   ASC 325-20 formerly governed the cost method of accounting for equity securities without a readily determinable fair value (cost-method investments), including their initial measurement, impairment assessment, and disclosure. Every substantive paragraph in the subtopic was superseded by ASU 2016-01, so the subtopic is now an empty shell with no operative guidance. Equity investments previously accounted for under the cost method are now within the scope of ASC 321, Investments—Equity Securities.

3. 360-944Financial Services—Insurance360 Property, Plant, and Equipment

   This subtopic tells insurance entities how to account for and report real estate. Real estate is classified by predominant use as either a real estate investment or real estate used in the business, and real estate acquired in settling mortgage guaranty and title insurance claims is a third, separately reported category measured initially at fair value (investments are measured at cost, then cost less accumulated depreciation). Depreciation and impairment charges follow the balance sheet classification — investment income/realized gains and losses for investments, and adjustments to claim costs incurred for real estate acquired in settling claims.