# ASC 310-10-35: Receivables — Overall — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/10/#35-subsequent-measurement) 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): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f1948a149e0293f24207bc2b1b01d3cd4364253b8ed0c7988964850756806464 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/10/#35-subsequent-measurement) SEC content: no ##### [310-10-35-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:8e83cb99e78cc762eca712abd4ffff7bb7de340e653a537e5cbcff334d203a16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:1745a2992ba7a97343d02f659e1494c4c372ed84b23c4e8dcf776910c900c1e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ca3e8a793c352fa63f564ab868499f0b96a599a0d1f05be920729e78cfe8237c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e3aee3fd9dd0a596d88f2b1b5f97709e34cafc2e9241c97fea3bfc2ad47148d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:5a8a65cd45c550f7320c6334c514596480471d19e8d2b876c224026823c83869 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:149dd780b3924cc3c397d03379e10a33a50a959b9283861a99719c2277847292 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:b8512f43a5772c8399a06bf6d77643272f1c8d88c30be031270c69e6c5d0a3ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:8c574e7efea42670f2b85fa9a5248c2098fe56872e9344752d2960e45fd3a348 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:df13dbdb81d268503209feb8642b2a462cdf9d7caa651fc4b62c77e1c6031e95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:33e2ed88df24bf0b6e6f1309d4ae0feebcb56ff988311e2200ec516c305ebc1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:054db335cf9d31275cbf61f98b2902fbb163333897af89018d15ec5c718ef0f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:26a00110fa9e3f425d074917b47128fae9c5f94a6824774a38a7f8eb4d17b6f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:51cc300f5228e580a6eb1a1360185379ea0fee247a89bb7f1c72e06f558ffe78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:abed3e98ec9b7d321e7d5f9cf7eeb8d401aec89086bffb7aacd894edfade1c58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:557c745c93a5e88865f46ec1926462abad79336683ae9073d2376038dfa21af0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:2811603ff8af7d3040cabbcd962bd1c12397e19ba661659a7f7867a61ae96fcd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:de618b61147fa12001c4b4996c1c887f440ce3337c3179300422e23ea61f8fe0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e8962b37b7d12e613ee3f8b3b274d9b3c6369fc24b03bc75ec3404690e4ca7da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f97bc302eda5d3a0cbe4784fe135d0f0e8bd86a50f376e979cd988fe02c77f74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:9ca61597ab9498a55330f9688ed5f4552fc37cedf0b4a2f0a80064d26336a087 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:45a18f9fd6c3758a987ee4437eb5b1de5b4f0bf55b97996076f19771fcfdb98e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:b5fc40a71b7ebdc7686a0c142f8f76572552bf96358b43e326c0d9fe4c046e2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-23](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:fc42fe33835bae63ef99849e6191b651be3590430ecf95aa9215aa572f2657af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-24](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:c17abf6beb7ed76d26c9d226ad60032f4ef1f631b962ed5e209814de08dc9023 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-25](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:af57a94c0419c774390d757bd253e756117ce427733aac55d28c16e7c4a401c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-26](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:22b68f9ac3447ee0e424b8056eeaaca5eeafa73f14e252b758f73f1abdac5f5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e5d73f9f4e80916f434cb34b904d2e200136b2852134d7a87d650c2e1b597aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-28](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:43f9c73c70057dafe1fbdc370d382ee5ef2b7585a004e54fcddf8c4d8f01dfdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-29](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e6b5c3b38b52ed59a41ba4468ede1413e656ca47759b0cf25c0ccacccd903d01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-30](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:d799c071ca64a28e940d753ef0baacfbbf5f3162b3a21b8fcf84ff89effd083f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-31](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:011627c5956962524c16685c24adc7e3860f32427faca70f8a99da93698da719 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-31A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-31A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:390e7cc905e40e10bd71c10f619ce129ad27f4ec5fcf5f50f24c580271bfc42d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-25-35-11](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-11) also explains that an entity shall not adjust the recorded investment or the discount rate of the individual assets or individual beneficial interest included in the closed portfolio for a basis adjustment that is maintained on the closed portfolio basis in accordance with paragraph [815-25-35-1(c)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1). ##### [310-10-35-32](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:317a5d35e3a9710246c4781ec61b65f249844189cabb55f055a3ae12cb33f79d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-33](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:77b1957fc0bcf29b404e3dc1e4bb8ff7966a9f6dfef1f10ab61c00c0d9d168a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-34](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ee32d6484e179fa92c5ac491793fb1e6e5095bd8f09922f1b8dc764473f160d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-35](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:d6d78090c1de691fc5e5bbf5c43b5439b78e307b85b65a09964e8c9125e77851 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f154ab8ae99fafc2b1b9e6b4c0440d49899a5da8d66bcf2fb07f904748bb74f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-37](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:d189ca72c75f782fae0aa43c449afa060fa5e743f769583d15f8ae25fdd2a4d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-38](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ff9eb5f34ea72f359bbf7887b9cfec2419d0a307487f4eeaf1a028c4485038f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-39](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:5cedee94d7b4cbb95c498d3a53afdd4dec14821f8bd39f5e892bf038356b508b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-40](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:26ed649d23114bb00d48ccd405d433fda669b0999b5b9b50610671f8c2765085 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-41](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f8ef641e060a575788122fd411f1602c6f637c7aa7cc572fe1257b53f2f4bc55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-42](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:307be86cc48d8c784c73d8f1b3a8ef804df4c46fc1d30d4981571e3eb650298f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-43](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-43) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:794311792bf9d2078f283b543effe1f63e173a92e4f80b5261794aae9806541e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Subsequent Measurement of Specific Types of Receivables ##### [310-10-35-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-44) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:54b17496e7a3103d99dfdd6f0743312b88f40b237fc91e764e68c3958c76ebce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following provides guidance on aspects of subsequent measurement for various types of receivables, specifically: 1. a Financial assets subject to prepayment 2. b Standby commitments to purchase [loans](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.") 3. c Loans and trade receivables not held for sale 4. d Nonmortgage loans held for sale 5. e Loans not previously held for sale 6. f Amortization of discount or premium on notes 7. g Premium allocated to loans purchased in a credit card portfolio 8. h Hedged portfolios of loans 9. i Interest income. ##### [310-10-35-45](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-45) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:65f02ab6355514b61abcf3ebea83e7f57fce399c100338ceacf6724906aa69d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) requires that financial assets, except for instruments that are within the scope of Subtopic 815-10, that can contractually be prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment be subsequently measured like investments in debt securities classified as available for sale or trading under Topic 320. ##### [310-10-35-46](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-46) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:47a9c00ae6765b70d274052dbdd8fac687f45021a03d08526d12a354ff8ba5d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This paragraph applies only to standby commitments to purchase loans. It does not apply to other customary kinds of commitments to purchase loans, nor does it apply to commitments to originate loans. If a standby commitment is recorded at the amount of the option as discussed in paragraph [310-10-25-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-6), the liability recorded at the amount of the option premium received (representing the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the standby commitment on the trade date) shall thereafter be accounted for at the greater of the initial standby commitment fee or the fair value of the written put option. Unrealized gains (that is, recoveries of unrealized losses) or losses shall be credited or charged to current operations. However, see Subtopic 815-10 for guidance on accounting for written put options that are within the scope of that Subtopic. ##### [310-10-35-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-47) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:49e2dc82106c868a3ce60230e513e468c173269541e5c14264448d562a79b078 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Trade receivables that management has the intent and ability to hold for the foreseeable future or until maturity or payoff shall be reported in the balance sheet at [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments."). (Discounts offered as a result of the pricing of a sale or a product or service may be termed sales discounts. This Subsection does not address these discounts.) For financial instruments measured at amortized cost basis, see Subtopic 326-20 for additional guidance on credit losses. ##### [310-10-35-47A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-47A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:2e70cf6c66ff950c3be5858dc2940f6156d955afaa46ed52c5556f1d9dd14c03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nonmortgage loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff shall be reported in the balance sheet at their amortized cost bases. See Subtopic 326-20 for guidance on the measurement of credit losses for financial instruments measured at amortized cost basis. See Topic 948 for guidance on mortgage loans classified as held-for-long-term-investment. ##### [310-10-35-48](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:0b2c68b3d17a19b2cdeca492f30d245c619d4619c3cabaa52c0612341589bdbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nonmortgage loans held for sale shall be reported at the lower of amortized cost basis or fair value. The amount by which amortized cost basis exceeds fair value shall be accounted for as a valuation allowance. Changes in the valuation allowance shall be included in the determination of net income of the period in which the change occurs. This paragraph applies only to nonmortgage loans. See Topic 948 for guidance related to mortgage loans classified as held for sale. ##### [310-10-35-48A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:4adca2c04b5426f1d253b588f2f27e7db48a2b3541222124d7f3b64e18256eb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a nonmortgage loan that is transferred into the held-for-sale classification from the nonmortgage loan not-held-for-sale classification, an entity shall reverse in earnings any allowance for credit losses previously recorded on the nonmortgage loan not held for sale at the transfer date. An entity shall then reclassify and transfer the nonmortgage loan into the held-for-sale classification at its amortized cost basis (which is reduced by any previous writeoffs but excludes any allowance for credit losses). An entity shall then determine if a valuation allowance is necessary by following the guidance in Subtopic 310-10. ##### [310-10-35-48B](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ba288359875b0bb9c800ececf73a20a052b56b20127bcca8221c5804c380054c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a nonmortgage loan that is transferred into the not-held-for-sale classification from the nonmortgage loans held-for-sale classification, an entity shall reverse in earnings any valuation allowance previously recorded on the nonmortgage loan held for sale at the transfer date. An entity shall then reclassify and transfer the nonmortgage loan into the not-held-for-sale classification at its amortized cost basis (which is reduced by any previous writeoffs but excludes any valuation allowance). An entity shall then determine if an allowance for credit losses is necessary by following the guidance in Subtopic 326-20. ##### [310-10-35-49](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-49) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:144ed24024bf5a32b4b4924324c90d19bdb6b686630001fdc660f870f8e62cad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-50](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-50) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:3a1542717f064974a2e47d8215cbaebf428f2cc08c518454134645224688e62a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [835-30-35-2](https://asc.understandingaccounting.org/asc/835/30/#835-30-35-2) for guidance related to amortization of discounts or premiums. ##### [310-10-35-51](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-51) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f9f824cbc0c241767af164e7ab2c78c357a18436331dce0e8eed2225099c50e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 835-30 for further guidance on situations in which interest shall be imputed. ##### [310-10-35-52](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-52) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:1b99fa6d1ef4a086729a8babf012647a923ca7720e40613fb28e35f169f53c93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity purchases a credit card portfolio that includes the cardholder relationships as discussed in paragraph [310-10-25-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-7), at an amount that exceeds the sum of the amounts due under the credit card receivables, the premium allocated to the loans shall be amortized over the life of the loans in accordance with Subtopic 310-20. If the credit card agreement provides for a repayment period beyond expiration of the card if the card is not renewed, that period shall be considered in determining the life of the credit card loan. ##### [310-10-35-53](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e9617cb93d462264b465638dbe79ab6d539bdde7883f50b02f429593f87865c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities sometimes wish to hedge risk associated with portfolios of loans or specific loan cash flows. See Section 815-20-55 for implementation guidance in such situations. ##### [310-10-35-53A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:2eb979f11b27977f4d32d8d86db5cd5a46f070bf0508739f4adadcf1f90df3d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as noted in paragraphs [310-10-35-53B through 35-53C](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53B) , this Subsection does not address how a creditor should recognize, measure, or display interest income on a financial asset with a credit loss. Some accounting methods for recognizing income may result in an amortized cost basis of a financial asset that is less than the amount expected to be collected (or, alternatively, the fair value of the collateral). Those accounting methods include recognition of interest income using a cost-recovery method, a cash-basis method, or some combination of those methods. ##### [310-10-35-53B](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53B) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:3372124e7899fafa38f1e2f9e13472e9a04420f20efcb4a62e90fb7338b40e8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When recognizing interest income on [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.") within the scope of Topic 326, an entity shall not recognize as interest income the discount embedded in the purchase price that is attributable to the acquirer's assessment of expected credit losses at the date of acquisition. The entity shall accrete or amortize as interest income the non-credit-related discount or premium of a purchased financial asset with credit deterioration in accordance with existing applicable guidance in Section 310-20-35 or 325-40-35. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [326-10-65-7](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-7)When recognizing interest income on [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.")and [purchased seasoned loans](https://asc.understandingaccounting.org/glossary/p/#purchased-seasoned-loans "(P) December 16, 2026; (N) December 16, 2026 326-10-65-7 Paragraphs 326-20-30-16326-20-30-17326-20-30-18 define the term purchased seasoned loans.") within the scope of Topic 326, an entity shall not recognize as interest income the discount embedded in the purchase price that is attributable to the acquirer's assessment of expected credit losses at the date of acquisition. The entity shall accrete or amortize as interest income the non-credit-related discount or premium of a purchased financial asset with credit deterioration and a purchased seasoned loan in accordance with existing applicable guidance in Section 310-20-35 or 325-40-35. ##### [310-10-35-53C](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53C) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:77015e22b78db7b7a60bf60358fca71dc98b8a2b053bbf58d0d8bf9811b3da02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Recognition of income on purchased financial assets with credit deterioration is dependent on having a reasonable expectation about the amount expected to be collected. Subsequent to purchase, this Subtopic does not prohibit placing financial assets on nonaccrual status, including use of the cost recovery method or cash basis method of income recognition, when appropriate. For example, if the timing of either a sale of the financial asset into the secondary market or a sale of collateral in essentially the same condition as received upon foreclosure is indeterminate, the creditor likely does not have the information necessary to reasonably estimate cash flows expected and shall cease recognizing income on the financial asset. However, the ability to place a financial asset on nonaccrual shall not be used to circumvent recognition of a credit loss. If the financial asset is acquired primarily for the rewards of ownership of the underlying collateral, accrual of income is inappropriate. Such rewards of ownership would include use of the collateral in operations of the entity or improving the collateral for resale. Consistent with paragraph [310-20-35-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18), interest income shall not be recognized to the extent that the net investment in the financial asset would increase to an amount greater than the payoff amount. ### Acquisition, Development, and Construction Arrangements ##### [310-10-35-54](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-54) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:4ec46ac0595683cdbd58ae594db332fd387362ff7735451edabe0bdd8506298f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides the following subsequent measurement guidance: 1. a Lender interest 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.") 2. b Changes in initial determination factors 3. c Other matters. #### Changes in Initial Determination Factors ##### [310-10-35-55](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-55) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:c49683094cefcf2d81f03a87bd4708012fecfb093148b5506a7aa1301f0dc6e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The factors that were evaluated in determining the accounting treatment at inception subsequently change for some acquisition, development, and construction arrangements, for example, as a result of a renegotiation of the terms. Consequently, the accounting treatment for an acquisition, development, and construction arrangement shall be periodically reassessed. ##### [310-10-35-56](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-56) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:3a9797f6f9b45d387d7e06045c096630f66d56e781b48a57b0cb3177709f88ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquisition, development, and construction arrangement originally classified as an investment or joint venture could subsequently be treated 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.") if the risk to the lender diminishes significantly, and the lender will not be receiving over 50 percent of the expected residual profit in the project. The lender shall demonstrate a change in the facts relied upon when initially making the accounting decision, not just the absence of, or reduced participation in, the expected residual profit. For instance, risk may be reduced if a valid take-out commitment from another lender who has the capability to perform under the commitment is obtained and all conditions affecting the take-out commitment have been met, thus assuring the primary lender recovery of its funds. ##### [310-10-35-57](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-57) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:45c05d805c5d5a1d8cf82494d25adb135ca7ae34004e9ba74626e868ffe8a59b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Conversely, if the lender assumes further risks or rewards in an acquisition, development, and construction arrangement by, for example, releasing collateral supporting a guarantee or increasing its percentage of profit participation to over 50 percent, the lender's position may change to that of an investor in real estate. ##### [310-10-35-58](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-58) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:6c005a03d30497e342ecf5ee4702cf09ebfa9ed44d54e2e1fae9d4f8fea90feb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Neither an improvement in the economic prospects for the project or successful, ongoing development of the project nor a deterioration in the economic prospects for the project justifies a change in classification of an acquisition, development, and construction arrangement. ##### [310-10-35-59](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-59) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:034754ba522bd3a1c7572e231e4e218362e7f394e98097f62eaf732342a37c86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A change in classification is expected to occur infrequently and shall be supported by appropriate documentation. The change in factors in an acquisition, development, and construction arrangement shall be evaluated based on the guidance in this Subsection and accounted for prospectively. ##### [310-10-35-60](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-60) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:525a045942b71409c356cc16069274a0cc55c4cd5b18b66775c15a052448fd1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an acquisition, development, and construction arrangement accounted for as a real estate joint venture continues into a permanent phase with the project generating a positive cash flow and paying debt service currently, income shall be recognized in accordance with Topic 970. #### Other Matters ##### [310-10-35-61](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-61) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:bc507f232622b2186cfc2a908297608a9f574cbabaa2b20c70eb476fc3e7fbaf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regardless of the accounting treatment for an acquisition, development, and construction arrangement, management shall on a continuing basis review the collectibility of uncollected principal, accrued interest, and fees and provide for appropriate allowances.