# ASC 310-10-05: Receivables — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/10/#05-overview-and-background) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:78246292e0fc2ecad07ce4da6cecee6ce97c84b80abc31f3b73fcbdb5affdd33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/10/#05-overview-and-background) SEC content: no ##### [310-10-05-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:774c050720d8b039e8ba7e5b16d4b59f5fbe251f386caeb1cbeb12c2bc7da99d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Receivables Topic includes the following Subtopics: 1. a Overall 2. b Nonrefundable Fees and Other Costs 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-05-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:2dc0f85b493f22c3b726c8d705fbe173134d535a35c731d06ffac3d5400ac942 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic establishes general guidance for receivables. The guidance is presented in the following two Subsections: 1. a General 2. b [Acquisition, Development, and Construction Arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property."). ##### [310-10-05-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:aae9dadb1eff6ee33b686d215ba1361ce7cdc823cd48d2c636d75f2d8109faad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance on a variety of accounting issues related to receivables. The following paragraphs provide background information on types of receivables addressed in the General Subsections. #### Receivables in General ##### [310-10-05-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:323d551ae193820b9c65db3b670a30955cd5712af66a64bc587a61fda645f3be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables may arise from credit sales, loans, or other transactions. Receivables may be in the form of loans, notes, and other types of financial instruments and may be originated by an entity or purchased from another entity. #### Standby Commitments to Purchase Loans ##### [310-10-05-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:528844f1341267656d026722a34d167f267fb702eb01638ea7c88354da7d7df2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities sometimes enter into forward standby commitments to purchase loans at a stated price in return for a standby commitment fee. In such an arrangement, settlement of the standby commitment is at the option of the seller of the loans and would result in delivery to the entity only if the contract price equals or exceeds the market price of the underlying [loan](https://asc.understandingaccounting.org/glossary/l/#loan "A contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in the creditor's statement of financial position. Examples include but are not limited to accounts receivable (with terms exceeding one year) and notes receivable.") or security on the settlement date. A standby commitment differs from a mandatory commitment in that the entity assumes all the market risks of ownership but shares in none of the rewards. A standby commitment is, in substance, a written put option that will be exercised only if the value of the loans is less than or equal to the strike price. #### Factoring Arrangements ##### [310-10-05-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:634cb7c2154fd63caaa4fb76481896567318a0ad28047d82d30d68a0e60c877b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Factoring arrangements are a means of discounting accounts receivable on a nonrecourse, notification basis. Accounts receivable are sold outright, usually to a transferee (the factor) that assumes the full risk of collection, without [recourse](https://asc.understandingaccounting.org/glossary/r/#recourse "The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: Failure of debtors to pay when due The effects of prepayments Adjustments resulting from defects in the eligibility of the transferred receivables.") to the transferor in the event of a loss. Debtors are directed to send payments to the transferee. #### Rebates ##### [310-10-05-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:e3883a862564668cd27078805101485c264d2af4b334d0c409ef4548f11a804f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Rebates represent refunds of portions of the precomputed finance charges on installment loans or trade receivables, if applicable, that occur when payments are made ahead of schedule. Rebate calculations generally are governed by state laws and may differ from unamortized finance charges on installment loans or trade receivables because many states require rebate calculations to be based on the Rule of 78s or other methods instead of the interest method. ### Acquisition, Development, and Construction Arrangements ##### [310-10-05-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:dc1e566fa462466f014f33e9dd68f6342a8a44e1ba65e31ae00cf484fdb6b9d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [Acquisition, Development, and Construction Arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property.") Subsections provide guidance for determining whether a lender should account for an acquisition, development, and construction arrangement as a [loan](https://asc.understandingaccounting.org/glossary/l/#loan "A contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in the creditor's statement of financial position. Examples include but are not limited to accounts receivable (with terms exceeding one year) and notes receivable.") or as an investment in real estate or a joint venture. ##### [310-10-05-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:f85a64393f87088835e535fb46f71908ba2f5e09d19dc6dad6521e1bc136117a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Lenders may enter into acquisition, development, and construction arrangements in which they have virtually the same risks and potential rewards as those of owners or joint venturers. Loans granted to acquire operating properties sometimes grant the lender a right to participate in [expected residual profit](https://asc.understandingaccounting.org/glossary/e/#expected-residual-profit "The amount of profit, whether called interest or another name, such as equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender.") from the sale or refinancing of the property. The expected residual profit may take the form of a percentage of the appreciation of the property determined at the maturity of the loan.