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Scope of this reference
Inspect the standard and the scope used in the teaching material. The verification date describes the stored review.
- Authority
- Financial Accounting Standards Board
- Standard
- ASC Subtopic 610-30
- Version
- Codification content as verified 2026-09-10
- Where it applies
- United States GAAP
- Entities covered
- Entities applying US GAAP; limited here to a nonmonetary long-lived asset converted into monetary assets
- Last source check recorded
- Sep 10, 2026
- Status recorded at review
- current
- Effective from
- Not specified in this record
Inspect the source: FASB ASC Subtopic 610-30, Gains and Losses on Involuntary Conversions
Check the applicable effective dates and later amendments in the source before applying this reference.
Concepts using this reference (1)
Scope used here
A fire destroys a long-lived nonmonetary asset. Its carrying amount is supported, but the claim remains unresolved and unmeasured. The lesson separates the asset event, monetary recovery, collection, and replacement.
Instructional consequence
Paragraphs 610-30-25-2 and 25-3 establish that the involuntary conversion is a monetary transaction and that replacement does not defer its gain or loss. Paragraph 610-30-25-4 directs an unsettled amount to Topic 450. Paragraph 610-30-30-1 keeps the replacement asset's cost tied to its own consideration.
Limitations
This record does not resolve insurance contract terms, collectibility, legal rights, taxes, business-interruption coverage, LIFO inventory, or the old asset's carrying amount. Those questions require their own facts and current guidance.