ASC 320, Investments—Debt Securities and ASC 321, Investments—Equity Securities, establish requirements for the presentation and disclosure of investments in debt and equity securities and investments in certain limited partnerships and limited liability companies that do not qualify for the equity method. For simplicity, throughout this chapter, the terms "investments" or "investment securities" are used to pertain to all investments within the scope of ASC 320 or ASC 321. As discussed in ASC 320-10-15-2 through ASC 320-10-15-3 and ASC 321-10-15-2 through ASC 320-10-15-3, the guidance applies to all reporting entities, other than reporting entities in specialized industries that account for substantially all investments in debt and equity securities at fair value with changes in fair value recognized through net income. These include broker-dealers, investment companies, defined benefit pension plans, and other postretirement plans.

Once a reporting entity determines that an investment meets the definition of a security, it should then determine whether that security meets the definition of a debt or equity security (see LI 2.2.2 for details on this assessment). This determination impacts classification and measurement, as well as the presentation and disclosure requirements.

ASC 325, Investments—Other, provides guidance for the presentation and disclosure of investments not within the scope of other authoritative guidance, including investments in insurance contracts and beneficial interests in securitized financial assets.

Other relevant guidance for SEC registrants in this chapter includes S-X 5-02. Regulation S-X also includes industry-specific guidance, which is not addressed in this chapter.