{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/10/#30-initial-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"310","topic_title":"Receivables","subtopic":"310-10","subtopic_title":"Overall","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Certain Receivables","paragraphs":[{"citation":"310-10-30-1","para":"30-1","html":"
The following provides initial measurement guidance for certain notes receivable, specifically those exchanged for cash and those exchanged for property, goods, or services. Such notes may be originated by an entity or purchased from a third party.
","snippet":"The following provides initial measurement guidance for certain notes receivable, specifically those exchanged for cash and those exchanged for property, goods, or services. Such notes may be originated by an entity or p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0313672a8395ce1ebed1073f817c6a36749f561f2e7c1f3e66af6c49234181c5","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}},{"citation":"310-10-30-2","para":"30-2","html":"
As indicated in paragraph 835-30-25-4, when a note is received solely for cash and no other right or privilege is exchanged, it is presumed to have a present value at issuance measured by the cash proceeds exchanged. If cash and some other rights or privileges are exchanged for a note, the value of the rights or privileges shall be given accounting recognition as described in paragraph 835-30-25-6.
","snippet":"As indicated in paragraph 835-30-25-4, when a note is received solely for cash and no other right or privilege is exchanged, it is presumed to have a present value at issuance measured by the cash proceeds exchanged. If …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0b4ec56b136692516a4c0dcd6779f4e76e4e863c8b2e742af76c994d00f2a3c","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}},{"citation":"310-10-30-3","para":"30-3","html":"
As indicated in paragraph 835-30-25-8, notes exchanged for property, goods, or services are valued and accounted for at the present value of the consideration exchanged between the contracting parties at the date of the transaction in a manner similar to that followed for a cash transaction.
","snippet":"As indicated in paragraph 835-30-25-8, notes exchanged for property, goods, or services are valued and accounted for at the present value of the consideration exchanged between the contracting parties at the date of the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ecfd47497f0a553882d410b0396139fc85b8aa8cb32e66ccf0f70666b2b324d9","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}},{"citation":"310-10-30-4","para":"30-4","html":"
As indicated in paragraph 835-30-25-2, if determinable, the established exchange price (which, presumably, is the same as the price for a cash sale) of property, goods, or services acquired or sold in consideration for a note may be used to establish the present value of the note. That paragraph explains that, when notes are traded in an open market, the market rate of interest and quoted prices of the notes provide the evidence of the present value. That paragraph notes that these methods are preferable means of establishing the present value of the note.
","snippet":"As indicated in paragraph 835-30-25-2, if determinable, the established exchange price (which, presumably, is the same as the price for a cash sale) of property, goods, or services acquired or sold in consideration for a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69476dd6d458ccb81f4527ecac11d2dd6fc9b4a390ed063565c318d4e285fee7","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}},{"citation":"310-10-30-5","para":"30-5","html":"
As indicated in paragraph 835-30-25-10, in circumstances where interest is not stated, the stated amount is unreasonable, or the stated face amount of the note is materially different from the current cash sales price for the same or similar items or from the fair value of the note at the date of the transaction, the note, the sales price, and the cost of the property, goods, or services exchanged for the note shall be recorded at the fair value of the property, goods, or services or at an amount that reasonably approximates the fair value of the note, whichever is the more clearly determinable.
","snippet":"As indicated in paragraph 835-30-25-10, in circumstances where interest is not stated, the stated amount is unreasonable, or the stated face amount of the note is materially different from the current cash sales price fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40512cb121a3e8f8411bdbf4483401b5e2cfc5331b0a87da6900aca8ec647e45","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}},{"citation":"310-10-30-6","para":"30-6","html":"
Paragraph 835-30-25-11 explains that, in the absence of established exchange prices for the related property, goods, or services or evidence of the fair value of the note (as described in paragraph 835-30-25-2), the present value of a note that stipulates either no interest or a rate of interest that is clearly unreasonable shall be determined by discounting all future payments on the notes using an imputed rate of interest as described in Subtopic 835-30. Paragraph 835-30-25-11 explains that this determination shall be made at the time the note is acquired; any subsequent changes in prevailing interest rates shall be ignored.
","snippet":"Paragraph 835-30-25-11 explains that, in the absence of established exchange prices for the related property, goods, or services or evidence of the fair value of the note (as described in paragraph 835-30-25-2), the pres…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:facd0b3062785fe7384f9f5d135d050f59d61ef63973cc45e73bf8569f3c0e69","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:951e69b471598b3f16221c5e9e4ff2e1f1f33c1138b57e7431fbffac2a8e34c9","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}},{"block":null,"heading":"Standby Commitments to Purchase Loans","paragraphs":[{"citation":"310-10-30-7","para":"30-7","html":"
If a standby commitment to purchase loans is viewed under paragraph 310-10-25-6 as part of the normal production of loans, an entity shall record loans purchased under the standby commitment at cost on the settlement date, net of the standby commitment fee received, in conformity with Subtopic 310-20. If a standby commitment is accounted for as a written option as discussed in paragraph 310-10-25-6, the option premium received (standby commitment fee) shall be recorded as a liability representing the fair value of the standby commitment on the trade date.
","snippet":"If a standby commitment to purchase loans is viewed under paragraph 310-10-25-6 as part of the normal production of loans, an entity shall record loans purchased under the standby commitment at cost on the settlement dat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1debc9e8823417c72f7e3f75d15d8fb3d450c122cc38d651881bec753f8d7a08","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb97a0c6a637e79d250ffcdfad3ea3b21b044d1b41306fb3bc5a5f98932af749","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e8d970bdfa4f7ebddba88ede009c768c243de31ddae1e0f95a9f7017c2cb0c5","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e8d970bdfa4f7ebddba88ede009c768c243de31ddae1e0f95a9f7017c2cb0c5","downloaded_from":"2026-09-09T23:24:57.951Z","last_downloaded_at":"2026-09-09T23:24:57.951Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481621","source_sha256":"74fed17ffbafde653141dbfaddd25269645b3eed24f2cc748610249699f89a5f"}}