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ASC 321 — Investments — Equity Securities

ASC 321, Investments — Equity Securities, was added to the FASB Accounting Standards Codification in January 2016 with the issuance of the final standard on the classification and measurement of financial instruments (ASU 2016-01). The amendments made by ASU 2016-01 are effective as follows:

  • Public business entities: fiscal years beginning after December 15, 2017, including interim periods therein.
  • All other entities: fiscal years beginning after December 15, 2018, and interim reporting periods within fiscal years beginning after December 15, 2019.
  • Upon adoption, entities will be required to make a cumulative-effect adjustment to the statement of financial position as of the beginning of the first reporting period in which the guidance is effective.
  • The guidance on equity securities without readily determinable fair value will be applied prospectively to all equity investments that exist as of the date of adoption of the standard.


The full text of ASC 321 can be found in the FASB Accounting Standards Codification (link to the FASB's Web site; registration required). Also, the full text of the Codification and Deloitte-authored Q&As related to the Codification are available in the Deloitte Accounting Research Tool (DART) Web site (subscription required).

ASC 321-10 provides detailed guidance for "investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures, and limited liability companies as if those other ownership interests are equity securities." It also refers to ASC 320 (Investments — Debt and Equity Securities), ASC 323 (Investments — Equity Method and Joint Ventures), and ASC 325 (Investments — Other) for additional guidance on accounting for investments.

Content from the FASB Accounting Standards Codification® included at is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission.

FASB Accounting Standards Updates

    The following ASUs amended the guidance in this Topic:

    Proposed FASB Accounting Standards Updates

    No current proposed ASUs on Topic 321.

    Correction list for hyphenation

    These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.