{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/10/#40-derecognition","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":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Transfers of Receivables","paragraphs":[{"citation":"310-10-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">See Topic <a altsource=\"GUID-E53370AF-0D20-4F9A-BBE9-2A4A9016D32F.ditamap\" class=\"ditamap\">860</a> for guidance on a transferor's accounting for transfers of receivables. Subtopic <a altsource=\"GUID-2083F382-3063-4262-8657-7F27F701112A.ditamap\" class=\"ditamap\">860-10</a> establishes criteria that are required to be satisfied for derecognition of a transferred asset. Subtopic <a altsource=\"GUID-C58C4968-8EDC-4185-8F6E-2E1DD0A45754.ditamap\" class=\"ditamap\">860-20</a> provides guidance for accounting for transfers of assets, including accounting for transfers of receivables in securitization transactions, transfers of receivables with <a href=\"/glossary/r/#recourse\" class=\"term\" title=\"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.\"><span>recourse</span></a>, and factoring arrangements.</div></div>","snippet":"See Topic 860 for guidance on a transferor's accounting for transfers of receivables. Subtopic 860-10 establishes criteria that are required to be satisfied for derecognition of a transferred asset. Subtopic 860-20 provi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28ab60322e07e1f0f6e2ae204bf1da053ed013199d6bb6c705575f228edd12a0","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b4c69f72706b1cef3e471506f4de6f98b9827ad400c859f1c90b3255b88dd69","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}},{"block":null,"heading":"Classification and Measurement of Certain Government-Guaranteed Mortgage Loans upon Foreclosure","paragraphs":[{"citation":"310-10-40-1A","para":"40-1A","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfragment_rwf_v4v_ytb\"><span class=\"sfragment-source\">For guidance on the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure by a creditor, see paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/310/20/#310-20-40-7\" class=\"xref\">310-20-40-7 through 40-8</a></div>.</span></span></div></div></div>","snippet":"For guidance on the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure by a creditor, see paragraphs 310-20-40-7 through 40-8.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62d796dadf50de3b26bf8ecf3c187bd2fee56c26e267a7d2339713250fb8945c","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4eab48ab753b8687b9eacc2f88144f866f43d489566f3075a83512b951b3bcf","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}},{"block":"Acquisition, Development, and Construction Arrangements","heading":null,"paragraphs":[{"citation":"310-10-40-2","para":"40-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subsection provides derecognition guidance related to the sale of a lender's interest in <a href=\"/glossary/e/#expected-residual-profit\" class=\"term\" title=\"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.\"><span>expected residual profit</span></a>.</div> </div>","snippet":"This Subsection provides derecognition guidance related to the sale of a lender's interest in expected residual profit.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d55387f3dde2612f1bb07e5411eb894c89b9838f00291742520169374c4cf764","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}},{"citation":"310-10-40-3","para":"40-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_5BC5726B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The lender's share of the expected residual profit in a project may be sold to the borrower or a third party for cash or other consideration. If the expected residual profit in an acquisition, development, and construction arrangement accounted for as a <a href=\"/glossary/l/#loan\" class=\"term\" title=\"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.\"><span>loan</span></a> is sold, the proceeds from the sale shall be recognized prospectively as additional interest over the remaining term of the loan. The expected residual profit is considered additional compensation to the lender, and the sale results in a quantification of the profit. </span></span> </div> </div>","snippet":"The lender's share of the expected residual profit in a project may be sold to the borrower or a third party for cash or other consideration. If the expected residual profit in an acquisition, development, and constructi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:493b75eb67f0db21d2dae8af057d8d7748d3dac34ea21721addd99084d0448da","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}},{"citation":"310-10-40-4","para":"40-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_5BC57427-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If an acquisition, development, and construction arrangement is accounted for as an investment in real estate or joint venture and the expected residual profit is sold, </span></span> <span class=\"sfragment\" id=\"sfr_5BC57582-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">the entity shall apply the guidance in Topic <a altsource=\"GUID-E53370AF-0D20-4F9A-BBE9-2A4A9016D32F.ditamap\" class=\"ditamap\">860</a> on transfers and servicing.</span></span> </div> </div>","snippet":"If an acquisition, development, and construction arrangement is accounted for as an investment in real estate or joint venture and the expected residual profit is sold, the entity shall apply the guidance in Topic 860 on…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6fed196e75e3ffdc1168e96ea04195a30fece2ac11020cc98d7c65bded29053f","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}},{"citation":"310-10-40-5","para":"40-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_5BC579ED-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a financial institution was the seller of the property at the initiation of the project, </span></span> <span class=\"sfragment\" id=\"sfr_5BC57AA9-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">the entity shall apply the guidance in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/360/10/#360-10-40-3A\" class=\"xref\">360-10-40-3A through 40-3B</a></div>. However, if the sale is part of a sale and leaseback transaction, </span></span> <span class=\"sfragment\" id=\"sfr_5BC57B6D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">gain recognition, if any, should be determined by reference to Subtopic <a altsource=\"GUID-DEB4A805-0F16-411F-92EA-6269206682D5.ditamap\" class=\"ditamap\">842-40</a>. </span></span> </div> </div>","snippet":"If a financial institution was the seller of the property at the initiation of the project, the entity shall apply the guidance in paragraphs 360-10-40-3A through 40-3B. However, if the sale is part of a sale and leaseba…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65e5da3f8a930bcfb90fbdacea4f845a6df151167ef96b220a0afd32a5f3c239","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83d34b6203eeba10391c9b8e0a1073e413b9b9c9d463a6195b1d39f9211d351f","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:679d219cb9356ce08a395b2d49fba3738ee89a3798c294df9ba1225241a84fd9","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:679d219cb9356ce08a395b2d49fba3738ee89a3798c294df9ba1225241a84fd9","downloaded_from":"2026-09-09T23:25:03.641Z","last_downloaded_at":"2026-09-09T23:25:03.641Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481561","source_sha256":"2df0cc2543ca95c96345bbb58d74d9d300137fe1403a3e72b137c1d38573cd7d"}}