Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 21ASC 325 INVESTMENTS—OTHER

PERSPECTIVE AND ISSUES

   Topics

   Subtopics

   Scope

   Overview

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

   Cost Method Investments

   ASC 325-30, Investments in Insurance Contracts

   ASC 325-40, Beneficial Interests in Securitized Financial Assets

PERSPECTIVE AND ISSUES

Topics

The Codification contains several Topics on the various forms of investments:

• ASC 320, Investments – Debt and Equity Securities
• ASC 323, Investments – Equity Method and Joint Venures
• ASC 325, Investments – Other.

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)
• 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 for as sales and purchased beneficial interests.

Scope

ASC 325-40 “applies to a transferor's interests in securitization transactions that are accounted for as sales under Topic 860 and purchased beneficial interests in securitized financial assets.” (ASC 325-40-15-2)

According to ASC 325-15-40-3, the guidance applies to beneficial interests ...