ASC 825-10-45-1A requires reporting entities to present financial assets and financial liabilities separately by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or in the footnotes.

In addition to the requirements for specific line items, reporting entities subject to Article 5 of SEC Regulation S-X (i.e., commercial and industrial companies) are required to present all amounts in excess of 5% of total assets separately on the face of the balance sheet or in a note in accordance with Regulation S-X Rule 5-02(17).

A reporting entity should present assets that are measured at fair value separate from similar assets that are measured at amortized cost basis on the face of the balance sheet in accordance with ASC 320-10-45-1, ASC 825-10-45-1A, and Regulation S-X Rule 5-02. To accomplish this, a reporting entity should present either:

While Regulation S-X Rule 5-02 requires a separate line item for "marketable securities," it refers to the disclosure requirements for current marketable equity securities prescribed by GAAP. Those requirements are detailed in ASC 321. For marketable securities other than equity securities, S-X 5-02 requires reporting entities to state parenthetically on the balance sheet or in the notes the basis for determining the aggregate amount presented on the balance sheet. Amortized cost basis is required to be disclosed if the securities are presented at fair value and, likewise, fair value is required to be disclosed if the securities are presented at amortized cost basis.

We believe complying with ASC 320 and ASC 321 satisfies the requirements of S-X 5-02 in that investments in debt and equity securities will be presented separate from other assets. We do not believe the term "marketable securities" is required on the face of the balance sheet.

See FSP 5.9.4 for information on the presentation of a subsidiary's investment in its parent's stock.

Example FSP 9-1 illustrates how a reporting entity may present debt securities on the balance sheet.

EXAMPLE FSP 9-1
Presentation of marketable debt securities

FSP Corp has marketable debt securities at December 31, 20X7 consisting of securities classified as held-to-maturity with an amortized cost basis of $150 and a fair value of $160 and securities classified as available-for-sale with an amortized cost basis of $90 and a fair value of $100.

How should FSP Corp present these marketable debt securities on the balance sheet as of December 31, 20X7?

FSP Corp may present these marketable securities on the balance sheet as follows:

Reporting entities subject to industry-specific guidance under Regulation S-X, such as bank holding companies and insurers, have different reporting requirements with regard to balance sheet captions. For example, insurers are required to present fixed-maturity securities separate from equity securities on the face of the balance sheet. This chapter does not address industry-specific presentations. See LI 12.11 and LI 12.12 for additional considerations for insurance and banking entities subject to Article 7 or Article 9 of Regulation S-X, respectively.