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This chapter outlines the presentation and disclosure of investments in debt and equity securities and includes examples of the required disclosures.
This chapter does not address investments in consolidated entities (FSP 18), equity method investments (FSP 10), hedging of investments (DH 6), or subsidiary investments in parent company common stock in the subsidiary's standalone financial statements (FSP 5.9.4).
New guidance
In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. The ASU also provides updated guidance for the impairment of available-for-sale debt securities and includes additional disclosure requirements. Subsequent to the issuance of this standard, the FASB issued additional Accounting Standards Updates amending and clarifying the guidance based on feedback from constituents and discussions of the Transition Resource Group. 
The new presentation and disclosure guidance in ASU 2016-13 has not been reflected in this chapter, but is included in LI 12.
In June 2022, the FASB issued ASU 2022-03, Fair Value Measurements of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarified that a contractual restriction on the sale of an equity security (for example, an underwriter lock-up agreement) is not considered part of the unit of account of an equity security. As a result, such restriction is not considered in measuring fair value of the equity security. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities, the guidance is effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance.
The guidance in ASU 2022-03 has not been reflected in this chapter, but is included in LI 12.

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