Wiley GAAP 2019

21ASC 325 INVESTMENTS—OTHER

PERSPECTIVE AND ISSUES

Technical Alert

This topic is affected by ASU 2016-13. For more information about the ASU, see the chapter on ASC 326.

Investment Topics

The Codification contains several topics dealing with investments, including:

• ASC 320, Investments—Debt and Equity Securities
• ASC 323, Investments—Equity Method and Joint Ventures
• ASC 325, Investments—Other

ASU 2016-01 adds a new topic related to investments: ASC 321, Investments—Equity Securities. It also changes the name of ASC 320 to Investments—Debt Securities. See the chapter on ASC 321 for more information.

ASC 2016-13 also adds a new topic related to investments: ASC 326, Financial Instruments— Credit Losses. See the chapter on ASC 326 for more information.

Subtopics

ASC 325 contains four subtopics:

• ASC 325-10, Overall, which merely identifies the other three topics
• ASC 325-20, Cost Method Investments, which offers guidance on stocks of entities not accounted for under the fair value method (ASC 320) or the equity method (ASC 323) This entire subtopic is superseded upon implementation of ASU 2016-01. See the chapter on ASC 321 for more information on ASU 2016-01.
• ASC 325-30, Investments in Insurance Contracts, which provides guidance on investments, life insurance contracts in general, and life settlement contracts
• ASC 325-40, Beneficial Interests in Securitized Financial Assets, which provides guidance on accounting for a transferor’s interest in securitized transaction accounted ...