A.25 ASC 940, Financial Services — Brokers and Dealers
ASC 940-320
Income Statement
45-4 The
changes in the fair value of fixed-income securities owned that
were purchased at a discount or premium is composed of accreted
interest income or changes in the fair value of the securities
or both. Consideration should be given to reporting these
components separately as interest income and trading gains and
losses, respectively.
ASC 940-820
50-1 Notes
to the financial statements shall disclose all of the following
if financial instruments’ fair values are measured at lower than
quoted prices (see Example in paragraph 820-10-55-52):
- Description of the financial instrument
- The quoted price of the financial instrument
- Fair value reported in the statement of financial condition
- Methods and significant assumptions used to value the instrument at lower than the quoted price.