# ASC 310-10: Receivables — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/10/) 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): 2026-09-09T23:24:42.337Z to 2026-09-09T23:25:40.463Z Record version: sha256:64110485b68b026e462918eef4e63be91b3f0b35ff8474f05f8f533521c9c280 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10: Receivables — Overall ### Machine-generated study aids ```json { "summary": "ASC 310-10 is the Overall subtopic for receivables, providing general guidance on recognizing, measuring, presenting, and disclosing loans and trade receivables (including factoring, loan syndications, standby commitments to purchase loans, purchased credit card portfolios, and secured loans), plus a separate set of Subsections on acquisition, development, and construction (ADC) arrangements. Receivables held for the foreseeable future are carried at amortized cost basis (with credit losses under Topic 326), while nonmortgage loans held for sale are carried at the lower of amortized cost basis or fair value through a valuation allowance. The ADC Subsections tell a lender whether an arrangement in which it participates in expected residual profit is a loan, a real estate investment, or a real estate joint venture; most of the old impairment/TDR guidance in this subtopic was superseded by ASU 2016-13 and ASU 2022-02, leaving modification disclosures behind.", "key_points": [ "The General Subsections apply to all entities and to trade accounts receivable, loans, loan syndications, factoring arrangements, standby letters of credit, and financing receivables, but not to mortgage banking activities (Topic 948) or contracts accounted for as derivatives under Subtopic 815-10 (310-10-15-1 through 15-3).", "Trade receivables and nonmortgage loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost basis, with credit losses measured under Subtopic 326-20; nonmortgage loans held for sale are reported at the lower of amortized cost basis or fair value with the excess recorded as a valuation allowance charged to income (310-10-35-47, 35-47A, 35-48).", "On transfer between classifications, an entity reverses in earnings the previously recorded allowance for credit losses (or valuation allowance), transfers the loan at amortized cost basis excluding that allowance, and then establishes the other type of allowance; the reversals and establishments are presented gross in the income statement (310-10-35-48A through 35-48B; 310-10-45-2).", "A standby commitment to purchase loans is treated as part of normal loan production (loans recorded at cost net of the commitment fee on settlement date) if settlement is within a reasonable period and the entity intends and is able to accept delivery without selling assets; otherwise it is accounted for as a written put option, with the liability carried at the greater of the initial standby commitment fee or the fair value of the option (310-10-25-6, 30-7, 35-46).", "Notes receivable are initially measured at present value: cash-only notes at the cash proceeds, notes for property, goods, or services at the present value of the consideration exchanged, with interest imputed under Subtopic 835-30 when interest is absent or clearly unreasonable (310-10-30-2 through 30-6).", "In an ADC arrangement in which the lender participates in expected residual profit, the lender accounts for the arrangement as a real estate investment under Topic 970 if it expects over 50 percent of the expected residual profit; if 50 percent or less, it is a loan only if at least one characteristic in 310-10-25-20(b) through (e) or a qualifying personal guarantee is present, otherwise real estate joint venture accounting applies (310-10-25-27); classification is reassessed periodically and changes are accounted for prospectively (310-10-35-55 through 35-59).", "Creditors must disclose commitments to lend additional funds to debtors experiencing financial difficulty whose receivables were modified, and, by class of financing receivable, the types, financial effect, and 12-month post-modification performance of modifications in the form of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or term extension, plus defaults within 12 months of such modifications (310-10-50-36, 50-42 through 50-45)." ], "categories": [ "Financial instruments", "Subsequent measurement", "Disclosure", "Presentation" ], "audience_level": "intermediate", "student_note": "Know that ASC 310-10 is now largely a residual subtopic: credit-loss and troubled-debt-restructuring measurement moved to Topic 326 (ASU 2016-13) and ASU 2022-02, so the surviving content is classification/measurement of loans and trade receivables, standby commitments, ADC arrangements, and modification disclosures. A common mistake is applying old \"impaired loan\" or TDR measurement rules from superseded 310-10-35 paragraphs instead of the CECL model in 326-20.", "related_topics": [ "310-20", "326-20", "860", "835-30", "970", "948" ], "key_concepts": [ "financing receivable", "amortized cost basis", "lower of amortized cost basis or fair value", "held for sale classification", "standby commitment to purchase loans", "acquisition, development, and construction arrangement", "expected residual profit", "modification to debtor experiencing financial difficulty" ] } ``` Source downloaded (UTC): 2026-09-09T23:24:42.337Z to 2026-09-09T23:24:42.337Z Record version: sha256:721154ac3d58b8d94093a39030b5e6f8089feca652634429c5cfeb424c6939f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/10/#00-status) SEC content: no ##### [310-10-00-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:42.337Z to 2026-09-09T23:24:42.337Z Record version: sha256:d93aebd5914e2450210debcc7a239458ae9bd878097b9b782a4dc700e8af85d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Amortized Cost BasisAddedAccounting Standards Update No. 2016-1306/16/2016
Class of Financing ReceivableAmendedAccounting Standards Update No. 2016-1306/16/2016
Class of Financing ReceivableAddedAccounting Standards Update No. 2010-2007/21/2010
Collateral-Dependent LoanSupersededAccounting Standards Update No. 2016-1306/16/2016
Commencement Date of the Lease (Commencement Date)AddedAccounting Standards Update No. 2016-0202/25/2016
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
Credit Quality IndicatorAmendedAccounting Standards Update No. 2016-1912/14/2016
Credit Quality IndicatorSupersededAccounting Standards Update No. 2016-1306/16/2016
Credit Quality IndicatorAddedAccounting Standards Update No. 2010-2007/21/2010
Direct Financing LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Direct Financing LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateAmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateSupersededAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (2nd def.)AddedAccounting Standards Update No. 2016-1912/14/2016
Financing ReceivableAddedAccounting Standards Update No. 2010-2007/21/2010
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Lease PaymentsAddedAccounting Standards Update No. 2016-0202/25/2016
Lease ReceivableAddedAccounting Standards Update No. 2016-0202/25/2016
Lease TermAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Leveraged LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Portfolio SegmentAmendedAccounting Standards Update No. 2016-1306/16/2016
Portfolio SegmentAddedAccounting Standards Update No. 2010-2007/21/2010
Purchased Financial Assets with Credit DeteriorationAmendedAccounting Standards Update No. 2016-1912/14/2016
Purchased Financial Assets with Credit DeteriorationAddedAccounting Standards Update No. 2016-1306/16/2016
Recorded InvestmentAmendedAccounting Standards Update No. 2015-1006/12/2015
Purchased Seasoned LoansAmendedAccounting Standards Update No. 2025-0811/12/2025
Related PartiesSupersededAccounting Standards Update No. 2016-1306/16/2016
Related PartiesAddedAccounting Standards Update No. 2010-2007/21/2010
Sales-Type LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Sales-Type LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Troubled Debt RestructuringSupersededAccounting Standards Update No. 2022-0203/31/2022
Troubled Debt RestructuringAddedAccounting Standards Update No. 2010-2007/21/2010
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
310-10-05-1AmendedAccounting Standards Update No. 2022-0203/31/2022
310-10-05-1AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-15-2AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-30-4 through 30-6
AmendedAccounting Standards Update No. 2012-0410/01/2012
310-10-35-1 through 35-43
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-35-2AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-4 through 35-7
AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-11AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-35-11AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-35-12 through 35-14
AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-13AmendedAccounting Standards Update No. 2016-0202/25/2016
310-10-35-16AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-20AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-22AmendedAccounting Standards Update No. 2011-0405/12/2011
310-10-35-31 through 35-33
AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-31AAddedAccounting Standards Update No. 2022-0103/28/2022
310-10-35-37AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-44AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-35-45AmendedAccounting Standards Update No. 2009-1612/23/2009
310-10-35-46 through 35-48
AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-35-47AmendedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-47AmendedMaintenance Update 2017-06 (PDF)04/07/2017
310-10-35-47AAddedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-48AmendedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-48AAddedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-48BAddedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-49SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-35-53A through 35-53C
AddedAccounting Standards Update No. 2016-1306/16/2016
310-10-35-53BAmendedAccounting Standards Update No. 2025-0811/12/2025
310-10-40-1AAmendedAccounting Standards Update No. 2022-0203/31/2022
310-10-40-1AAddedAccounting Standards Update No. 2014-1408/08/2014
310-10-40-4AmendedAccounting Standards Update No. 2017-0502/22/2017
310-10-40-4AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-40-5AmendedAccounting Standards Update No. 2016-0202/25/2016
310-10-40-5AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-45-1AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-45-2AmendedAccounting Standards Update No. 2019-0404/25/2019
310-10-45-4SupersededAccounting Standards Update No. 2012-0410/01/2012
310-10-45-4A through 45-6
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-45-4AAddedAccounting Standards Update No. 2012-0410/01/2012
310-10-45-11AmendedAccounting Standards Update No. 2016-0101/05/2016
310-10-45-14AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-50-1AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-1AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-1AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-2AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-2AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-3AmendedMaintenance Update 2015-11 (PDF)06/19/2015
310-10-50-4AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-4AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-4ASupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-4AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-5A through 50-10
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-5AmendedAccounting Standards Update No. 2009-1612/23/2009
310-10-50-5AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-5BAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-5BAmendedAccounting Standards Update No. 2010-2509/28/2010
310-10-50-6AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7BAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7BAmendedAccounting Standards Update No. 2010-2509/28/2010
310-10-50-9AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-10AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-11AmendedAccounting Standards Update No. 2025-1112/08/2025
310-10-50-11AmendedAccounting Standards Update No. 2022-0203/31/2022
310-10-50-11AmendedAccounting Standards Update No. 2014-0401/17/2014
310-10-50-11A through 50-11C
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-11A through 50-11C
AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-12SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-13SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-14 through 50-21
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-14AmendedAccounting Standards Update No. 2012-0410/01/2012
310-10-50-14AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-15AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-17AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-20AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-21AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-22SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-23SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-24SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-25AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-26AmendedAccounting Standards Update No. 2016-0101/05/2016
310-10-50-26AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-27 through 50-30
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-27 through 50-34
AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-31 through 50-34
SupersededAccounting Standards Update No. 2022-0203/31/2022
310-10-50-31 through 50-34
AmendedAccounting Standards Update No. 2011-0101/19/2011
310-10-50-31 through 50-34
AmendedAccounting Standards Update No. 2011-0204/05/2011
310-10-50-32 through 50-34
AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-35AmendedAccounting Standards Update No. 2025-1112/08/2025
310-10-50-35AddedAccounting Standards Update No. 2014-0401/17/2014
310-10-50-36 through 50-48
AddedAccounting Standards Update No. 2022-0203/31/2022
310-10-50-40AmendedAccounting Standards Update No. 2025-1212/17/2025
310-10-50-41 through 50-44
AmendedAccounting Standards Update No. 2025-1112/08/2025
310-10-55-1 through 55-11
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-55-2AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-55-3AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-55-7 through 55-22
AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-55-12SupersededAccounting Standards Update No. 2022-0203/31/2022
310-10-55-12A through 55-12K
AddedAccounting Standards Update No. 2022-0203/31/2022
310-10-55-16 through 55-22
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-55-14AmendedAccounting Standards Update No. 2016-0202/25/2016
310-10-60-4AmendedAccounting Standards Update No. 2016-2012/21/2016
310-10-60-4AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-60-5AmendedAccounting Standards Update No. 2020-1010/29/2020
310-10-65-1AddedAccounting Standards Update No. 2010-1804/29/2010
310-10-65-2AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-65-3AddedAccounting Standards Update No. 2011-0101/19/2011
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. Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:70b77c9a3875f113b2ed992eb0b508f61797f163dad8a847579a5e085003ec03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/10/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [310-10-15-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:4ccad1ae77cb882cc70ee5656ab57450025ce775e30e7843779e6b7d5f4035be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections applies to all entities. #### Transactions ##### [310-10-15-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:4efd9c3c9d1163e25870b2fd1f02e52a7b575d7583228d06275a6cf3262889fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections applies to a variety of instruments and transactions, including the following: 1. a Trade accounts receivable 2. b [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 [Loan syndications](https://asc.understandingaccounting.org/glossary/l/#loan-syndication "A transaction in which several lenders share in lending to a single borrower. Each lender loans a specific amount to the borrower and has the right to repayment from the borrower. It is common for groups of lenders to jointly fund those loans when the amount borrowed is greater than any one lender is willing to lend.") 4. d Factoring arrangements 5. e [Standby letters of credit](https://asc.understandingaccounting.org/glossary/s/#standby-letter-of-credit "A letter of credit (or similar arrangement however named or designated) that represents an obligation to the beneficiary on the part of the issuer for any of the following: To repay money borrowed by or advanced to or for the account of the account party To make payment on account of any evidence of indebtedness undertaken by the account party To make payment on account of any default by the account party in the performance of an obligation. A standby letter of credit would not include the following: Commercial letters of credit and similar instruments where the issuing bank expects the beneficiary to draw upon the issuer and which do not guarantee payment of a money obligation A guarantee or similar obligation issued by a foreign branch in accordance with and subject to the limitations of Regulation M of the Federal Reserve Board.") 6. f [Financing receivables](https://asc.understandingaccounting.org/glossary/f/#financing-receivable "A financing arrangement that has both of the following characteristics: It represents a contractual right to receive money in either of the following ways: On demand On fixed or determinable dates. It is recognized as an asset in the entity's statement of financial position. See paragraphs 310-10-55-13310-10-55-14310-10-55-15 for more information on the definition of financing receivable, including a list of items that are excluded from the definition (for example, debt securities)."). ##### [310-10-15-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:e13dbb8f9a867ceb9d68ec2c792c9a49d737e27127253090c988b45058cc47c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections does not apply to the following transactions and activities: 1. a Mortgage banking activities (as described in paragraph [948-10-05-4](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-4)) 2. b A contract that is required to be accounted for as a derivative instrument under Subtopic 815-10. For example, paragraph [815-10-15-70](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-70) states that commitments to purchase or sell mortgage loans or other types of loans at a future date shall be evaluated under the definition of a derivative instrument to determine whether Subtopic 815-10 applies. ### Acquisition, Development, and Construction Arrangements #### Entities ##### [310-10-15-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:5dac530b8896d8daa703432c62c66a774b545ff0b7f453ded44423631feec374 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in 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 applies to all entities. #### Transactions ##### [310-10-15-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:d13684483e3cc424b8e07062d38a0beb56c8908c6215dd18c60ddc8ae1730085 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Acquisition, Development, and Construction Arrangements Subsections applies only to those acquisition, development, and construction arrangements in which the lender participates 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."), as further described in the [Acquisition, Development, and Construction Subsection](https://asc.understandingaccounting.org/asc/310/10/#25-recognition) of Section 310-10-25. Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:c33b7836df919d1b1feb83a70e7b4f28cfee72a987f638b0207dd5b0044f3681 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/10/#25-recognition) SEC content: no ##### [310-10-25-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:66ce0b98a701e11526ece47290ea59328904ea1ff0cd065475e2436962193727 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide recognition guidance organized as follows: 1. a Recognition of certain types of receivables 2. b Recognition of interest and fees for certain types of receivables. #### Recognition of Certain Types of Receivables ##### [310-10-25-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:bb8a42c1dd13ed8e81d888be8810a69c4f0dc4338954efa218788faa67c34e2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance addresses issues related to recognition of various types of receivables, specifically: 1. a Factoring arrangements 2. b [Loan syndications](https://asc.understandingaccounting.org/glossary/l/#loan-syndication "A transaction in which several lenders share in lending to a single borrower. Each lender loans a specific amount to the borrower and has the right to repayment from the borrower. It is common for groups of lenders to jointly fund those loans when the amount borrowed is greater than any one lender is willing to lend.") and [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.") participations 3. c Standby commitments 4. d Credit card portfolio purchased 5. e Secured loans. Such receivables may be originated by an entity or purchased from a third party. ##### [310-10-25-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:9fcd84fb39c6f626028d77d56aea0c3f01adf09f149aa46e077fd538a30752c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers of receivables under factoring arrangements meeting the sale criteria of paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) shall be accounted for by the factor as purchases of receivables. The acquisition of receivables and accounting for purchase discounts such as factoring commissions shall be recognized in accordance with Subtopic 310-20. Factoring commissions under these arrangements shall be recognized over the period of the loan contract in accordance with that Subtopic. That period begins when a finance company or an entity with financing activities including trade receivables funds a customer's credit and ends when the customer's account is settled. ##### [310-10-25-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:680fdd94f71ec745c6482fbaf16b10feafef466a6046ce9c5bd7a1f9b596f638 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Each lender in a syndication shall account for the amounts it is owed by the borrower. Repayments by the borrower may be made to a lead lender that then distributes the collections to the other lenders of the syndicate. In those circumstances, the lead lender is simply functioning as a servicer and, therefore, shall not recognize the aggregate loan as an asset. ##### [310-10-25-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:6d5fb213b3e62ad0dc9656f43c05e4ab5d29cd2628337a0ce8ef8e9dd569c817 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [860-10-55-61](https://asc.understandingaccounting.org/asc/860/10/#860-10-55-61) for guidance on accounting for loan participations. ##### [310-10-25-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:bdb77ed9ef72da453cb68b988b136ebcfe392b7ffb115400ab230b58daedab0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-10-15-70](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-70) states that commitments to purchase or sell mortgage loans or other types of loans at a future date must be evaluated under the definition of a derivative instrument to determine whether Subtopic 815-10 applies. This paragraph applies only to a standby commitment to purchase loans and only if that commitment is within the scope of this Subtopic. It does not apply to other customary kinds of commitments to purchase loans, nor does it apply to commitments to originate loans. If the settlement date is within a reasonable period, for example, a normal loan commitment period, and the entity has the intent and ability to accept delivery without selling assets, a standby commitment within the scope of this Subtopic shall be viewed as part of the normal production of loans. However, if the settlement date is not within a reasonable period, or the entity does not have the intent and ability to accept delivery without selling assets, the standby commitment shall be accounted for as a written put option. ##### [310-10-25-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:25b68ed46ffefd61522219da4158b73bf9d10ab0761d28e025a567b770b7a316 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 at an amount that exceeds the sum of the amounts due under the credit card receivables, the difference between the amount paid and the sum of the balances of the credit card loans at the date of purchase (the premium) shall be allocated between the cardholder relationships acquired and the loans acquired. The premium relating to the cardholder relationships represents an identifiable intangible asset that shall be accounted for in accordance with Topic 350. ##### [310-10-25-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:39abd9f3d8eef15b378c64f3faf76d482c58e6dcb9e92acb5ebbc1dea8b94d0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers not meeting the sale criteria in paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) shall be accounted for as secured loans, that is, loans collateralized by customer accounts or receivables. Paragraph [860-30-25-5](https://asc.understandingaccounting.org/asc/860/30/#860-30-25-5) provides additional guidance in those situations. #### Recognition of Interest and Fees for Certain Types of Receivables ##### [310-10-25-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:b67769f4f1cf82a96d17882375d4230ffd6ef317ecb9741fdbcffaa7467bb20b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance addresses the recognition of interest income and certain fees for various types of receivables, specifically: 1. a Interest income on receivables 2. b Impact of rebates on accrued interest income 3. c Prepayment fees 4. d Delinquency fees. Such interest or fees may relate to receivables that are originated by the entity or purchased from a third party. ##### [310-10-25-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:e3aa929c39a952fffce090fb5a37f8a26b30f1098ac2bc1ee6aadf5c7e516047 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 835-30 for guidance on the imputation of interest for receivables that represent contractual rights to receive money or contractual obligations to pay money on fixed or determinable dates, whether or not there is any stated provision for interest. ##### [310-10-25-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:1325fa8de20eaaae88dc209cf9770fd8388a6d9fdbe2b235e8052903b3bb53f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accrual of interest income on installment loans or trade receivables shall not be affected by the possibility that rebates may be calculated on a method different from the interest method, except that the possibility of rebates affects the accounting resulting from the application of paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18). Differences between rebate calculations and accrual of interest income merely adjust original estimates of interest income and shall be recognized in income when loans or trade receivables are prepaid or renewed. ##### [310-10-25-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:0aeb358e5ee1173d18e118fcc855c6589e20f84162185f296fc10670a4872df0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prepayment penalties shall not be recognized in income until loans or trade receivables, if applicable, are prepaid, except that the existence of prepayment penalties may affect the accounting resulting from the application of paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18). ##### [310-10-25-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:70bc1751e0c66eecceb0a6a03c2c43059c491fc9bb16ab6739f25f1d5391c35c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Delinquency fees shall be recognized in income when chargeable, assuming collectibility is reasonably assured. ### Acquisition, Development, and Construction Arrangements ##### [310-10-25-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:2f34d2a2d27464065cf5ac9b5247105c4a35b45be5ed7416baa5f876a2f6076c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides recognition guidance for [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."), specifically: 1. a [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 Characteristics implying investment in real estate or joint ventures 3. c Characteristics implying loans 4. d Accounting for an 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 an investment in real estate 5. e Participations in acquisition, development, and construction arrangements. #### Expected Residual Profit ##### [310-10-25-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:dd6349d552bac5b328a3d9684660b5771cd29a75435a3239ce3be6d5f6ee1a4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The extent of participation in expected residual profit and its forms may vary. An example of a simple form might be one in which the contractual interest and fees, if any, on a condominium project are considered to be at fair market rates. The expected sales prices are sufficient to cover at least principal, interest, and fees, and the lender shares in an agreed proportion, for example, 20 percent, 50 percent, or 90 percent, of any profit on sale of the units. ##### [310-10-25-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:5236999f29aff3668cb9a1476fa2364eef8e0ead9aa0b7bdad07e10231961a31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A slightly different form of arrangement may produce approximately the same result. For example, the interest rate and/or fees may be set at a level higher than in the preceding example, and the lender may receive a smaller percentage of any profit on sale of the units. Thus, a greater portion of the expected sales price is required to cover the contractual interest and/or fees, leaving a smaller amount to be allocated between the lender and the borrower. The lender's share of expected residual profit in such an arrangement may be approximately the same as in the preceding example. ##### [310-10-25-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:b03c3e9f769ccc4d3afd82784abbf4acda44d2234cae5603fc7bde437c565c5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A different arrangement may cause the same result if the interest rate and/or fees are set at a sufficiently high level and the lender does not share in any proportion of profit on sale of the units. Another variation in these arrangements is one in which the lender shares in gross rents or net cash flow from a commercial project, for example, an office building or an apartment complex. ##### [310-10-25-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:f27e7b5c75be728894bcb92fdce451f372c372b0dc12a9e3d9e958e1aa364860 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The profit participation agreement may or may not be part of the mortgage loan agreement. #### Characteristics Implying Investment in Real Estate or Joint Ventures ##### [310-10-25-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:5fd1d580d20555058a541f7d9cb869df0ac13e750d7f59463bf4f4db8d85cc9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In an acquisition, development, and construction arrangement in which the lender participates in expected residual profit, in addition to the lender's participation in expected residual profit, the following characteristics suggest that the risks and rewards of the arrangement are similar to those associated with an investment in real estate or joint venture: 1. a The lender agrees to provide all or substantially all necessary funds to acquire, develop, or construct the property. The borrower has title to but little or no equity in the underlying property. 2. b The lender funds the commitment or origination fees or both by including them in the amount of the loan. 3. c The lender funds all or substantially all interest and fees during the term of the loan by adding them to the loan balance. 4. d The lender's only security is the acquisition, development, and construction project. The lender has no [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 other assets of the borrower, and the borrower does not guarantee the debt. 5. e In order for the lender to recover the investment in the project, the property must be sold to independent third parties, the borrower must obtain refinancing from another source, or the property must be placed in service and generate sufficient net cash flow to service debt principal and interest. 6. f The arrangement is structured so that foreclosure during the project's development as a result of delinquency is unlikely because the borrower is not required to make any payments until the project is complete, and, therefore, the loan normally cannot become delinquent. #### Characteristics Implying Loans ##### [310-10-25-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:f05e08ef4fef291593b9ddd868de4f51810770a3587f7b6b1f698ca306899aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even though the lender participates in expected residual profit, the following characteristics suggest that the risks and rewards of an acquisition, development, and construction arrangement are similar to those associated with a loan: 1. a The lender participates in less than a majority of the expected residual profit. 2. b The borrower has an equity investment, substantial to the project, not funded by the lender. The investment may be in the form of cash payments by the borrower or contribution by the borrower of land (without considering value expected to be added by future development or construction) or other assets. The value attributed to the land or other assets should be net of encumbrances. There may be little value to assets with substantial prior liens that make foreclosure to collect less likely. Recently acquired property generally shall be valued at no higher than cost. 3. c The lender has either of the following: 1. 1 Recourse to substantial tangible, saleable assets of the borrower, with a determinable sales value, other than the acquisition, development, and construction project that are not pledged as collateral under other loans 2. 2 An irrevocable letter of credit from a creditworthy, independent third party provided by the borrower to the lender for a substantial amount of the loan over the entire term of the loan. 4. d A take-out commitment for the full amount of the lender's loans has been obtained from a creditworthy, independent third party. Take-out commitments often are conditional. If so, the conditions should be reasonable and their attainment [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur."). 5. e Noncancelable sales contracts or lease commitments from creditworthy, independent third parties are currently in effect that will provide sufficient net cash flow on completion of the project to service normal loan amortization, that is, principal and interest. Any associated conditions should be probable of attainment. ##### [310-10-25-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:413765c97e51be057cd0ca86e2baa7b91f3c9c74b5ab5cab2dd5220dc4503fdd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some acquisition, development, and construction arrangements include personal guarantees of the borrower and/or a third party. The existence of a personal guarantee alone rarely provides a sufficient basis for concluding that an acquisition, development, and construction arrangement should be accounted for as a loan. In instances where the substance of the guarantee and the ability of the guarantor to perform can be reliably measured, and the guarantee covers a substantial amount of the loan, concluding that an acquisition, development, and construction arrangement supported by a personal guarantee should be accounted for as a loan may be justified. ##### [310-10-25-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:c8764549b2de8762cf5de89e395647d4bb7ed7e58c808b0ff7555bb2a5650343 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The substance of a personal guarantee depends on all of the following: 1. a The ability of the guarantor to perform under the guarantee 2. b The practicality of enforcing the guarantee in the applicable jurisdiction 3. c A demonstrated intent to enforce the guarantee. ##### [310-10-25-23](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:be5be0b4116a751988996e659792862cb326f072bff3715b246ba39a42a0ceb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of personal guarantees that have the ability to perform would include those supported by liquid assets placed in escrow, pledged marketable securities, or irrevocable letters of credit from a creditworthy, independent third party in amounts sufficient to provide necessary equity support for an acquisition, development, and construction arrangement to be considered a loan. In the absence of such support for the guarantee, the financial statements and other information of the guarantor may be considered to determine the guarantor's ability to perform. ##### [310-10-25-24](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:054ec50d7230b28495c7f270423386460075443abf56bf76814c512220f8db45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Particular emphasis should be placed on the following factors when considering the financial statements of the guarantor: 1. a Liquidity and net worth of the guarantor. There should be evidence of sufficient liquidity to perform under the guarantee. There may be little substance to a personal guarantee if the guarantor's net worth consists primarily of assets pledged to secure other debt. 2. b Guarantees provided by the guarantor to other projects. If the financial statements do not disclose and quantify such information, inquiries should be made as to other guarantees. Also, it may be appropriate to obtain written representation from the guarantor regarding other contingent liabilities. ##### [310-10-25-25](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:b98018e9d65c87c98472e11fda1bfe810462dfc925208efedce889fd715d5430 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The enforceability of the guarantee in the applicable jurisdiction should also be determined. Even if the guarantee is legally enforceable, business reasons that might preclude the lender from pursuing the guarantee shall be assessed. Those business reasons could include the length of time required to enforce a personal guarantee, whether it is normal business practice in that jurisdiction to enforce guarantees on similar transactions, and whether the lender must choose between pursuing the guarantee or the project's assets, but cannot pursue both. ##### [310-10-25-26](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:14187ed3650248cf6c74c935edbe6bb65e84ce07f76a67f6fb1bcc587109e833 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some acquisition, development, and construction arrangements recognize value, not funded by the lender, for the builder's efforts after inception of the arrangement, sometimes referred to as sweat equity. Sweat equity is not at risk by the borrower at the inception of an acquisition, development, and construction project. Consequently, sweat equity shall not be considered a substantial equity investment on the part of the borrower in determining whether the acquisition, development, and construction arrangement should be treated as a loan. #### Accounting for an Arrangement as a Loan or an Investment in Real Estate ##### [310-10-25-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:838aed5fceeee2b8b28264293ea26063d690ab4c40f844cf41b98cf16acd5393 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquisition, development, and construction arrangement shall be accounted for as follows: 1. a If the lender is expected to receive over 50 percent of the expected residual profit from the project, the lender shall account for income or loss from the arrangement as a real estate investment as specified by Topic 970. 2. b If the lender is expected to receive 50 percent or less of the expected residual profit, the entire arrangement shall be accounted for either as a loan or as a real estate joint venture, depending on the circumstances. At least one of the characteristics identified in paragraph [310-10-25-20(b) through (e)](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-20) or a qualifying personal guarantee shall be present for the arrangement to be accounted for as a loan. Otherwise, real estate joint venture accounting would be appropriate. ##### [310-10-25-28](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:f4fa0ce8cc1b31babb243a7d13cd36a999bb508e42316129c9ee291fdb77d6da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the arrangement is accounted for as a loan, interest and fees shall be recognized as income subject to recoverability. Topic 974 provides guidance that may be relevant in assessing the recoverability of such loan amounts and accrued interest. ##### [310-10-25-29](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:16aeff0f7e468172e9094158d46b65aae52c6fce0b06b989a63d7e1ac7346df9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the arrangement is accounted for as a real estate joint venture, the provisions of Subtopics 970-323 and 835-20 provide guidance for such accounting. In particular, paragraph [970-835-35-1](https://asc.understandingaccounting.org/asc/835/970/#835-970-35-1) provides guidance on the circumstances under which interest income shall not be recognized. #### Participations in Acquisition, Development, and Construction Arrangements ##### [310-10-25-30](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:4f5aa0939227ff23835c90d0507cae3cbe66b9aabedbb5ed4e710b5510eaec2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Many participations in loans or whole loans are bought and sold. The accounting treatment for a purchase that involves acquisition, development, and construction arrangements shall be based on a review of the transaction at the time of purchase in accordance with this guidance. In applying this guidance, a participant would look to its individual percentage of expected residual profit. For example, a participant who will not share in any of the expected residual profit is not subject to this guidance. However, the responsibility to review collectibility and provide allowances applies equally to purchased acquisition, development, and construction arrangements. Any reciprocal transactions between institutions, including multiparty transactions, shall be viewed in their entirety and accounted for in accordance with their combined effects. Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:2e8d970bdfa4f7ebddba88ede009c768c243de31ddae1e0f95a9f7017c2cb0c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/10/#30-initial-measurement) SEC content: no #### Certain Receivables ##### [310-10-30-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:0313672a8395ce1ebed1073f817c6a36749f561f2e7c1f3e66af6c49234181c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [310-10-30-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:a0b4ec56b136692516a4c0dcd6779f4e76e4e863c8b2e742af76c994d00f2a3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-4](https://asc.understandingaccounting.org/asc/835/30/#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](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-6). ##### [310-10-30-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:ecfd47497f0a553882d410b0396139fc85b8aa8cb32e66ccf0f70666b2b324d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-8](https://asc.understandingaccounting.org/asc/835/30/#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. ##### [310-10-30-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:69476dd6d458ccb81f4527ecac11d2dd6fc9b4a390ed063565c318d4e285fee7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-2](https://asc.understandingaccounting.org/asc/835/30/#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. ##### [310-10-30-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:40512cb121a3e8f8411bdbf4483401b5e2cfc5331b0a87da6900aca8ec647e45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-10](https://asc.understandingaccounting.org/asc/835/30/#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](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 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. ##### [310-10-30-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:facd0b3062785fe7384f9f5d135d050f59d61ef63973cc45e73bf8569f3c0e69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [835-30-25-11](https://asc.understandingaccounting.org/asc/835/30/#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](https://asc.understandingaccounting.org/asc/835/30/#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](https://asc.understandingaccounting.org/asc/835/30/#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. #### Standby Commitments to Purchase Loans ##### [310-10-30-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:1debc9e8823417c72f7e3f75d15d8fb3d450c122cc38d651881bec753f8d7a08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a standby commitment to purchase loans is viewed under paragraph [310-10-25-6](https://asc.understandingaccounting.org/asc/310/10/#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](https://asc.understandingaccounting.org/asc/310/10/#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. 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. Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:679d219cb9356ce08a395b2d49fba3738ee89a3798c294df9ba1225241a84fd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/10/#40-derecognition) SEC content: no #### Transfers of Receivables ##### [310-10-40-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:28ab60322e07e1f0f6e2ae204bf1da053ed013199d6bb6c705575f228edd12a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 provides guidance for accounting for transfers of assets, including accounting for transfers of receivables in securitization transactions, transfers of receivables with [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."), and factoring arrangements. #### Classification and Measurement of Certain Government-Guaranteed Mortgage Loans upon Foreclosure ##### [310-10-40-1A](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:62d796dadf50de3b26bf8ecf3c187bd2fee56c26e267a7d2339713250fb8945c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-7) . ### Acquisition, Development, and Construction Arrangements ##### [310-10-40-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:d55387f3dde2612f1bb07e5411eb894c89b9838f00291742520169374c4cf764 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides derecognition guidance related to the sale of a lender's 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."). ##### [310-10-40-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:493b75eb67f0db21d2dae8af057d8d7748d3dac34ea21721addd99084d0448da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [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.") 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. ##### [310-10-40-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:6fed196e75e3ffdc1168e96ea04195a30fece2ac11020cc98d7c65bded29053f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 transfers and servicing. ##### [310-10-40-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:65e5da3f8a930bcfb90fbdacea4f845a6df151167ef96b220a0afd32a5f3c239 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3A) . However, if the sale is part of a sale and leaseback transaction, gain recognition, if any, should be determined by reference to Subtopic 842-40. Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:8b53165041fe94d2402fba2d6829831e7fa8a7aab22cf11afe1f44920138700f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/10/#45-other-presentation-matters) SEC content: no ##### [310-10-45-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:d1ab00fb1fe10f01cc0abff9b4083d6a1d2f268a9f4eedb4c9c17eb8166d9a01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides guidance on presentation matters for receivables, specifically: 1. a [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.") or trade receivables 2. b Foreclosed and repossessed assets 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. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 5. e Discount and premium 6. f Unearned discounts 7. g Receivables classified as current assets 8. h Cash flows 9. i Receivables from officers, employees, or affiliates 10. j Note received as an equity contribution. #### Nonmortgage Loans or Trade Receivables ##### [310-10-45-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:29a60ecb68d124670e5c5ded1492d3c10ef39a9e54ec6696bf7b1c27270280d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nonmortgage loans or trade receivables may be presented on the balance sheet as aggregate amounts. However, such receivables held for sale shall be a separate balance sheet category. Major categories of nonmortgage loans or trade receivables shall be presented separately either in the balance sheet or in the notes to financial statements. An entity shall present the amounts reversed or established for the valuation allowance and the allowance for credit losses, as applicable, related to the transfer of nonmortgage loans (see paragraphs [310-10-35-48A through 35-48B](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48A) ) on a gross basis in the income statement. An entity may present those amounts on the income statement or in the notes to financial statements. #### Foreclosed or Repossessed Assets ##### [310-10-45-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:7771fed42bd5c66f158a02d3129ab23fecdf1d6e4f31a30c433ed2d3be2e82dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Foreclosed and repossessed assets shall be classified as a separate balance sheet amount or included in other assets on the balance sheet with separate disclosures in the notes to financial statements. Certain returned or repossessed assets, such as inventory, shall not be classified separately if the assets subsequently are to be utilized by the entity in operations. ##### [310-10-45-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c2a61116d8c92ef02f9679edf77ff0db594d6379c4156f203e796d182bf34e7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/updates/asu-2012-04/). ##### [310-10-45-4A](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-4A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:3fcb79239d5647fb104d956f0e46eb9c0551245900a8a7b4076496495c0dd0cb 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/). ##### [310-10-45-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c15af8f2073ef35a08f7e7578f5d4466c653c6b7024964f3b998fb0dabb61fb7 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/). ##### [310-10-45-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:d780f0679db683fe1112de154aae59bd2dd592ed313236ea82d1b14d121f403c 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/). #### Discount and Premium ##### [310-10-45-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:5e14e8184e2eefbef9f6804f855f8e4aa8791cbf08963525f4b422dba5ddd3d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [835-30-45-1A through 45-4](https://asc.understandingaccounting.org/asc/835/30/#835-30-45-1A) for guidance on presentation matters related to the discount or premium on a note. #### Unearned Discounts ##### [310-10-45-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:6ab00e6ceaf641006bb2153d9382df2a761c86f4ba055f8e4d06ef32776dd9e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unearned discounts (other than cash or quantity discounts and similar items), finance charges, and interest included in the face amount of receivables shall be shown as a deduction from the related receivables. #### Receivables Classified as Current Assets ##### [310-10-45-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:9ae34a5c63ba4ebe9829551d91d850c04d3b793c1b4913c340e799833ee7c056 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in its definition for accounting purposes, the term [current assets](https://asc.understandingaccounting.org/glossary/c/#current-assets "Current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. See paragraphs 210-10-45-1210-10-45-2210-10-45-3210-10-45-4.") is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. Paragraph [210-10-45-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-1) notes that the term current assets comprehends the following types of receivables: 1. a Trade accounts, notes, and acceptances receivable 2. b Receivables from officers, employees, affiliates, and others, if collectible in the ordinary course of business within a year 3. c Installment or deferred accounts and notes receivable if they conform generally to normal trade practices and terms within the business. See Section 210-10-45 for further guidance on the required presentation of current assets in the balance sheet. #### Cash Flows ##### [310-10-45-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:08e6e79b4fac62e5dcaa5384d8d53017f8bb4cc12aafc39f23cc3f3d6c5c34ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [230-10-45-16](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-16) states that cash receipts from returns on loans, other debt instruments of other entities, and equity securities—interest and dividends shall be classified in the statement of cash flows as cash inflows from operating activities. ##### [310-10-45-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c1fc566884addd255f063c72f4c270bea1ddae430be6513f1436ea4f5d6677fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [230-10-45-11](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-11) states that cash flows from purchases, sales, and maturities of available-for-sale debt securities shall be classified as cash flows from investing activities and reported gross in the statement of cash flows. Paragraph [230-10-45-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21) states that some loans are similar to debt securities in a trading account in that they are originated or purchased specifically for resale and are held for short periods of time. ##### [310-10-45-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:e4fd4d82c552cff1c3219f871af2bd65e4856e5d0587349a6089262691f24a07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Topic 230 for further guidance on the classification of cash flows from receivables in the cash flow statement. #### Receivables from Officers, Employees, or Affiliates ##### [310-10-45-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c663dfa87f6db8b7771b2bac93ce02ef12e5b9fee0d9fc91a0dfe2100c69f7e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [850-10-50-2](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-2), notes or accounts receivable due from officers, employees, or affiliated companies shall be shown separately and not included under a general heading such as notes receivable or accounts receivable. #### Note Received as an Equity Contribution ##### [310-10-45-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:39c9e45d2e37312b93233fe1bfd520a5c2ad16e97203e8cd56ca7fb99c61d8e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on a note received as a contribution to an entity's equity, see paragraph [505-10-45-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-45-2). ### Acquisition, Development, and Construction Arrangements ##### [310-10-45-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:970ca094b85d91a668484d231b5a53991e0e36b70b837ac94da4edc9e5623d0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") accounted for as investments in real estate or joint ventures shall be combined and reported in the balance sheet separately from those acquisition, development, and construction arrangements accounted for as loans. Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ff5243c443e2ac838ca65083ff834ff58e20ec1515762d7dfc73a11d28e5a3d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/10/#50-disclosure) SEC content: no ##### [310-10-50-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:9dcddc91f4fb3e6b1c86bcdc1232c4c1f6aebabc9d7a878015de6ada6366bb23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides the following disclosure guidance for receivables, off-balance-sheet credit exposures, and foreclosed and repossessed assets: 1. a Accounting policies for loans and trade receivables 2. b Assets serving as collateral 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. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 5. e Foreclosed and repossessed assets 6. f [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 7. g [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 8. h [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 9. i Risks and uncertainties 10. j [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.") disclosures 11. k [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 12. l Modifications. #### Accounting Policies for Loans and Trade Receivables ##### [310-10-50-1A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:30f827990bad9e4b604c5b5e79a0e1191489dbe1a632d8eb0a02249e56bdbcfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [310-10-50-2 through 50-4A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-2) applies only to the following [financing receivables](https://asc.understandingaccounting.org/glossary/f/#financing-receivable "A financing arrangement that has both of the following characteristics: It represents a contractual right to receive money in either of the following ways: On demand On fixed or determinable dates. It is recognized as an asset in the entity's statement of financial position. See paragraphs 310-10-55-13310-10-55-14310-10-55-15 for more information on the definition of financing receivable, including a list of items that are excluded from the definition (for example, debt securities)."): 1. a Loans 2. b Trade receivables. ##### [310-10-50-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:a588055c186d282d80da929f0ceabab727075a589be9bbbed9479d890758ca82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The summary of significant accounting policies shall include the following: 1. a The basis for accounting for loans and trade receivables 2. b The method used in determining the lower of [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.") or fair value of nonmortgage loans held for sale (that is, aggregate or individual asset basis) 3. c The classification and method of accounting for interest-only strips, loans, other receivables, or retained interests in securitizations that can be contractually prepaid or otherwise settled in a way that the holder would not recover substantially all of its [recorded investment](https://asc.understandingaccounting.org/glossary/r/#recorded-investment "The amount of the investment in a loan, which is not net of a valuation allowance, but which does reflect any direct write-down of the investment. However, if a loan is a hedged item in a fair value hedge, the amount of that loan's recorded investment should include the unamortized amount of the cumulative fair value hedge adjustments.") 4. d The method for recognizing interest income on [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.") and trade receivables, including a statement about the entity's policy for treatment of related fees and costs, including the method of amortizing net deferred fees or costs. ##### [310-10-50-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:29cffedde43c6a3d02dceeb6e321af181317f6331c380d8b633f6a7da3edabf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If major categories of loans or trade receivables are not presented separately in the balance sheet (see paragraph [310-10-45-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-2)), they shall be disclosed in the notes to the financial statements. ##### [310-10-50-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:488b5424a2bbdf8686b56b22725f10618541c638c7402178d6f7771ba1075da8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The allowance for credit losses and, as applicable, any unearned income, any unamortized premiums and discounts, and any net unamortized deferred fees and costs, shall be disclosed in the financial statements. ##### [310-10-50-4A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-4A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ad5b59f8f1efccf392a419be400f116a239acab6e543f8d5a4d99218e6ebf4a3 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/). #### Assets Serving as Collateral ##### [310-10-50-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:45b5cc61003ae2d192f3e9ba73316e44e900a2b07d286aad5bb71a256592acfd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For required disclosures of the carrying amount of loans, trade receivables, securities and financial instruments that serve as collateral for borrowings, see paragraph [860-30-50-1A](https://asc.understandingaccounting.org/asc/860/30/#860-30-50-1A). ##### [310-10-50-5A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:10d061ee3a7f78e181d505a6105a7f5737824b942653e6ef437bb27be5cbe713 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/). ##### [310-10-50-5B](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-5B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:cb5bb0d73b39d44eb47efc1378c58f61afc7a11519cb99658c0ddf3d85fa6400 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/). ##### [310-10-50-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:e38b4ba7aa7c02fb88da6772e8e16caa6521b48b535b8b99967aca6b8ef7460b 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/). ##### [310-10-50-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ac19b3fc2dd4b3dd160161e9322b23fcf8ffaba8bf8e999c79b091e8f58f7cce 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/). ##### [310-10-50-7A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-7A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:5d792c63f24bee182173ab141d64733b35f97ccdc38c445d9f1144e0a1fcc862 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/). ##### [310-10-50-7B](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-7B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:578244005aab4c096bd436d2a18a760a349652431c5e8cca83f274b2f5811d58 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/). ##### [310-10-50-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8db7325c4b20f50980d83c8002d2a454ea4ac60f9d922503abcaa74dce79925f 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/). ##### [310-10-50-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2e362a264c1bf77d509a0ec2157f1ef64f33f8ea522578e75175a1aba6a92aae 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/). ##### [310-10-50-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:22cf680d7799eebecd8df75be3f081745d52b847fb0bb094c5e51ba609dd2442 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/). #### Foreclosed and Repossessed Assets ##### [310-10-50-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:1bf8e2aacad7a23281266c7f30a6c02ce1a6ec9fb478c4e922979a94a0306695 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [310-10-45-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-3) states that foreclosed and repossessed assets included in other assets on the statement of financial position shall have separate disclosures in the notes to financial statements. An entity shall also disclose the carrying amount of foreclosed residential real estate properties held at the reporting date as a result of obtaining physical possession in accordance with paragraphs [310-20-40-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-6) and [310-20-55-18F](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18F). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Paragraph [310-10-45-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-3) states that foreclosed and repossessed assets included in other assets on the statement of financial position shall have separate disclosures in the notes to financial statements. For interim and annual reporting periods, an entity shall also disclose the carrying amount of foreclosed residential real estate properties held at the reporting date as a result of obtaining physical possession in accordance with paragraphs [310-20-40-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-6) and [310-20-55-18F](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18F). ##### [310-10-50-11A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:44a0818041a99e920fed77a2774b958d98ac73827bc48d0d97543d401bc16813 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/). ##### [310-10-50-11B](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:4e69f903c40b62636da518afe247d49ea2ed768875252b237ff574abecf831ab 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/). ##### [310-10-50-11C](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11C) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:e05e7645e47345ab82732391283f84791e990df860d538149cb47a7c3a203f4b 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/). ##### [310-10-50-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:de908bd4392cef6661d84583f4bab869c4439e0b6333b5652d18174ada0b89a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:7cbda5343a40717f3fd576ae2f0a82a523d650e209be01e3c040cbe06ebe0c4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d6f5af66ce4b931f3c5367302d8808e5e05fbb48ad48c580e0fbea59bc53041a 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/). ##### [310-10-50-14A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-14A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d1d8b1d7ab2593b845ba8361c7134e022320db29a0a73b2d0f38ec7b792be06a 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/). ##### [310-10-50-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:67741437d7870dcd2f7638a656a504cb0d55d7814e2af0c15f43415e032d5e67 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/). ##### [310-10-50-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:f0159a7c007c16865cbc1f81ebee3c9cf02f360c66b17e588dfa7bb45a8241e8 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/). ##### [310-10-50-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d944de1810d6aa47e1aefdf259b1f9c105c8de50181608df274495fb9c73186e 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/). ##### [310-10-50-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:97f1e7f19a103794c4656675e6bb80a77f555fa7ef8da663bed35f3e228c4755 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/). ##### [310-10-50-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:3e11a1011190bf40bf4fc4cd8867ece261751138d7da4ee94df21078d0493120 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/). ##### [310-10-50-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ce8d556efb70d39969a9f7f97797d089890907efb8b1b846e7e23b9a9b898cf5 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/). ##### [310-10-50-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:c91a3ff851d4196a8935f3b3f293bbbbca2620bad59641b473521e09baa4fdc3 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/). ##### [310-10-50-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d9f811cc5bff1395e8a6ee91c03bb67791510863db65de47a5946be2841f13e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-23](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:50698cf8e6f83c1c21c7f3a74cd53a108011aa51f902a10942bad0a22b64d580 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-24](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:abcf348f2d70662c3c62f0366bd961ff8c4626a555349f006e91335fe3c291e2 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/). #### Risks and Uncertainties ##### [310-10-50-25](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:794a93fd9f239b8a995b670f84a2e2ab9992bcf110ec86eede498a4b05c55d7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain loans and trade receivables have contractual terms that expose entities to risks and uncertainties that fall into one or more categories, as discussed in paragraph [275-10-50-1](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-1). See Section 275-10-50 for disclosure guidance related to those products. #### Fair Value Disclosures ##### [310-10-50-26](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8bf3a5842c9fe260f24787b5189c8518a4d9ed87595d7b21607e6984c4bdd4ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 825-10-50 provides guidance on the required disclosure of fair values of certain assets and liabilities. Paragraph [825-10-50-8](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-8) explains that, for trade receivables and payables, no disclosure is required under that Subtopic if the trade receivable or payable is due in one year or less. ##### [310-10-50-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:c3fc0eea9f7885e20e1110323309bff909416d5d5990f1029bf234209cbfe08f 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/). ##### [310-10-50-28](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:85f80a6444efd3348014b7224a2bc0bc827d117b83df5eef7bc5268a42c06e26 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/). ##### [310-10-50-29](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2b7e20ef2940f8071542e6d0e273d9597048d142374d6f01ec208a08ad3b97da 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/). ##### [310-10-50-30](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2656c080e15f4110390f56955197180ecc5468a54643288b25642486c388c8ea 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/). ##### [310-10-50-31](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:251c738ba44a3da427878accc69200e79f97776759014c0cd06af2729debec14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-50-32](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:a9f41807e5b4eed8bbaebc7efcb0facbd235c496f46d3bf6adcda4c7aa359d23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-50-33](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:74bf0e9677c09073e3147b3d2d5853e253945702cf852ea190ea8eb9e9c4e733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-50-34](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:c74ffcc61100eb6c95083a4a9fe5b687939398e85644f83554940d4e7df31478 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). #### Loans in Process of Foreclosure ##### [310-10-50-35](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-35) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:bc1359ac72fc4e08277eb14c71e904d66fc39b1c6c41a0fbbb9195fd0cde0dfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, an entity shall disclose the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. #### Modifications ##### [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:b64b70ca48f4676047c11141b5428043165e1f30bdfb9e27aac1eadb40248d8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As of the date of each balance sheet presented, a creditor shall disclose, either in the body of the financial statements or in the accompanying notes, the amount of commitments, if any, to lend additional funds to debtors experiencing financial difficulty for which the creditor has modified the terms of the receivables in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension in the current reporting period. For purposes of this disclosure, covenant waivers and modifications of contingent acceleration clauses would not be considered term extensions. ##### [310-10-50-37](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:408e448bda193117eaa8017aa869f5d8c524d3c9a0f1d5b867560e53670f7844 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a loan is restructured into two (or more) loan agreements, the restructured loans shall be considered separately when assessing the applicability of the disclosures in Section 326-20-50 in years after the restructuring because they are legally distinct from the original loan. ##### [310-10-50-38](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:3ad28b605cdd9de4ad91b6be3eb538d258428d36ae023dfc61f385d89d60fafd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) is to provide financial statement users with information about the type and magnitude of certain modifications of receivables made to debtors experiencing financial difficulty, the financial effect of those modifications, and the degree of success of the modifications in mitigating potential credit losses. In addition to the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) , an entity shall consider providing information that helps financial statement users understand significant changes in the type or magnitude of modifications, including those modifications that, for example, were caused by a major credit event, even if the modifications otherwise would not require the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . ##### [310-10-50-39](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2a16985d4db7e9e1e0da84653b044bf8980574a2e8ebd5e815809115591c8aed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) shall be provided for modifications of receivables to borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension made within the scope of this Topic. For purposes of those disclosures, covenant waivers and modifications of contingent acceleration clauses would not be considered term extensions. ##### [310-10-50-40](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-40) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:acff6b35ea297f63741b6af126c3e05bde9808412535b958cfcf0884bf9650f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) does not apply to the following financing receivables: 1. a Receivables measured at fair value with changes in fair value reported in earnings 2. b Receivables measured at lower of amortized cost basis or fair value 3. c Except for credit card receivables, trade accounts receivable that have both of the following characteristics: 1. 1 They have a contractual maturity of one year or less. 2. 2 They arose from the sale of goods or services. 4. d Participant loans in defined contribution pension plans. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)The guidance in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) does not apply to the following financing receivables: 1. a Receivables measured at fair value with changes in fair value reported in earnings 2. b Receivables measured at lower of amortized cost basis or fair value 3. c Except for credit card receivables, trade accounts receivable that have both of the following characteristics: 1. 1 They have a contractual maturity of one year or less. 2. 2 They arose from the sale of goods or services. 4. d Participant loans in defined contribution pension plans 5. e Lease receivables arising from sales-type leases or direct financing leases. ##### [310-10-50-41](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-41) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:880bcf48789e5fb1b040f54a949946326399ba926049c7870588ad414c5b960f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures required in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) are applicable regardless of whether a modification of a receivable to a debtor experiencing financial difficulty results in a new loan in accordance with paragraphs [310-20-35-9 through 35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . As a practical expedient, an entity may exclude the accrued interest receivable balance that is included in the amortized cost basis of financing receivables for the purposes of the disclosure requirements in Subtopic 326-20. If an entity has applied that practical expedient, an entity may do the same for the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) and shall disclose the total amount of accrued interest excluded from the disclosed amortized cost basis. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The disclosures required in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) are applicable regardless of whether a modification of a receivable to a debtor experiencing financial difficulty results in a new loan in accordance with paragraphs [310-20-35-9 through 35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . As a practical expedient, an entity may exclude the accrued interest receivable balance that is included in the amortized cost basis of financing receivables for the purposes of the disclosure requirements in Subtopic 326-20. If an entity has applied that practical expedient, an entity may do the same for the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) and shall disclose the total amount of accrued interest excluded from the disclosed amortized cost basis in interim and annual reporting periods. ##### [310-10-50-42](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:30b5772251b45a106512671195bf6276d4b7af5979e69051e6256c1ef081788e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which a statement of income is presented, an entity shall disclose the following information related to modifications of receivables that are in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) made to debtors experiencing financial difficulty during the reporting period: 1. a By class of financing receivable, qualitative and quantitative information about: 1. 1 The types of modifications utilized by an entity, including the total period-end amortized cost basis of the modified receivables and the percentage of modifications of receivables made to debtors experiencing financial difficulty relative to the total period-end amortized cost basis of receivables in the class of financing receivable. 2. 2 The financial effect of the modification by type of modification, which shall provide information about the changes to the contractual terms as a result of the modification and shall include the incremental effect of principal forgiveness on the amortized cost basis of the modified receivables, as applicable, or the reduction in weighted-average interest rates (versus a range) for interest rate reductions. 3. 3 Receivable performance in the 12 months after a modification of a receivable made to a debtor experiencing financial difficulty. 2. b By portfolio segment, qualitative information about how those modifications and the debtors’ subsequent performance are factored into determining the allowance for credit losses. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each interim and annual reporting period for which a statement of income is presented, an entity shall disclose the following information related to modifications of receivables that are in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) made to debtors experiencing financial difficulty during the reporting period: 1. a By class of financing receivable, qualitative and quantitative information about: 1. 1 The types of modifications utilized by an entity, including the total period-end amortized cost basis of the modified receivables and the percentage of modifications of receivables made to debtors experiencing financial difficulty relative to the total period-end amortized cost basis of receivables in the class of financing receivable. 2. 2 The financial effect of the modification by type of modification, which shall provide information about the changes to the contractual terms as a result of the modification and shall include the incremental effect of principal forgiveness on the amortized cost basis of the modified receivables, as applicable, or the reduction in weighted-average interest rates (versus a range) for interest rate reductions. 3. 3 Receivable performance in the 12 months after a modification of a receivable made to a debtor experiencing financial difficulty. 2. b By portfolio segment, qualitative information about how those modifications and the debtors’ subsequent performance are factored into determining the allowance for credit losses. ##### [310-10-50-43](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-43) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8391c97007f5f933979f96a8b47b12fc69f742498b8d47a29ad8012a22a04626 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables may be modified in more than one manner. An entity that modifies the same receivable in more than one manner shall provide disclosures sufficient for users to understand the different types of combinations of modifications provided to borrowers. For example, a receivable may be modified to provide both principal forgiveness and an interest rate reduction. In that case, an entity shall disclose the period-end amortized cost basis of that receivable in a separate category that reflects that a combination of modification types has been granted. If another receivable was modified to provide both an interest rate reduction and a term extension, the period-end amortized cost basis of that receivable shall be presented in a different category. Multiple separate combination categories may be necessary if significant. The same receivable’s period-end amortized cost basis shall not be presented in multiple categories. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Receivables may be modified in more than one manner. An entity that modifies the same receivable in more than one manner shall provide disclosures in interim and annual reporting periods sufficient for users to understand the different types of combinations of modifications provided to borrowers. For example, a receivable may be modified to provide both principal forgiveness and an interest rate reduction. In that case, an entity shall disclose the period-end amortized cost basis of that receivable in a separate category that reflects that a combination of modification types has been granted. If another receivable was modified to provide both an interest rate reduction and a term extension, the period-end amortized cost basis of that receivable shall be presented in a different category. Multiple separate combination categories may be necessary if significant. The same receivable’s period-end amortized cost basis shall not be presented in multiple categories. ##### [310-10-50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-44) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:3a1086a645774871e773f0bef496b618fd44abbf0f65c59ce02cdccf0d2c732c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which a statement of income is presented, an entity shall disclose the following information about financing receivables that had a payment default during the period and had been modified in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) within the previous 12 months preceding the payment default when the debtor was experiencing financial difficulty at the time of the modification: 1. a By class of financing receivable, qualitative and quantitative information about those defaulted financing receivables, including the following: 1. 1 The type of contractual change that the modification provided 2. 2 The amount of financing receivables that defaulted, including the period-end amortized cost basis for financing receivables that defaulted. 2. b By portfolio segment, qualitative information about how those defaults are factored into determining the allowance for credit losses. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each interim and annual reporting period for which a statement of income is presented, an entity shall disclose the following information about financing receivables that had a payment default during the period and had been modified in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) within the previous 12 months preceding the payment default when the debtor was experiencing financial difficulty at the time of the modification: 1. a By class of financing receivable, qualitative and quantitative information about those defaulted financing receivables, including the following: 1. 1 The type of contractual change that the modification provided 2. 2 The amount of financing receivables that defaulted, including the period-end amortized cost basis for financing receivables that defaulted. 2. b By portfolio segment, qualitative information about how those defaults are factored into determining the allowance for credit losses. ##### [310-10-50-45](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-45) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:daed4cc37341692590ea8932c5c40e56adb5520c84cbd8bca2b6c42744fb57cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In evaluating whether the debtor is experiencing financial difficulties for the purpose of the disclosure requirements in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) , a creditor shall consider the following indicators: 1. a The debtor is currently in payment default on any of its debt. In addition, a creditor shall evaluate whether it is probable that the debtor would be in payment default on any of its debt in the foreseeable future without the modification. That is, a creditor may conclude that a debtor is experiencing financial difficulties, even though the debtor is not currently in payment default. 2. b The debtor has declared or is in the process of declaring bankruptcy. 3. c There is substantial doubt as to whether the debtor will continue to be a going concern. 4. d The debtor has securities that have been delisted, are in the process of being delisted, or are under threat of being delisted from an exchange. 5. e On the basis of estimates and projections that only encompass the debtor's current capabilities, the creditor forecasts that the debtor's entity-specific cash flows will be insufficient to service any of its debt (both interest and principal) in accordance with the contractual terms of the existing agreement for the foreseeable future. 6. f Without the current modification, the debtor cannot obtain funds from sources other than the existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a nontroubled debtor. The above list of indicators is not intended to include all indicators of a debtor's financial difficulties. ##### [310-10-50-46](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:312b58e7a775a5f03b82297f179af2f7a353daec40ab5a8f84f8ac0dc3575af3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the case of a restructuring that results in only a delay in payment that is insignificant, an entity is not required to include the modification made to receivables for debtors experiencing financial difficulty in the disclosure requirements in paragraphs [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) and [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . The following factors, when considered together, may indicate that a restructuring results in a delay in payment that is insignificant: 1. a The amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value of the debt and will result in an insignificant shortfall in the contractual amount due. 2. b The delay in timing of the restructured payment period is insignificant relative to any one of the following: 1. 1 The frequency of payments due under the debt 2. 2 The debt's original contractual maturity 3. 3 The debt's original expected duration. ##### [310-10-50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-47) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8311b89b4e3205ae6825499409e2343a1a2d804878d6f3347dce8e6283ca8a12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the debt has been previously restructured, an entity shall consider the cumulative effect of past restructurings made within the 12-month period before the current restructuring when determining whether a delay in payment resulting from the current restructuring is insignificant. ##### [310-10-50-48](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-48) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:a2cf85427b435222e20bedf54e502277d08761dd2120037f176e3542f44723a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples 4, 5, and 6 in paragraphs [310-10-55-12B through 55-12K](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12B) illustrate a creditor's evaluation about whether a delay in payment resulting from a restructuring is insignificant. Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:ecf7099992d40ee46d46518c0f2738deb4af4fecac36f5bca7fc4f9a10bf7c79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/10/#55-implementation-guidance-and-illustrations) SEC content: no ##### [310-10-55-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:1f1d36ddf19ee9acfc689f267db03799968020a65e50fd89d088efa658109b3c 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/). ##### [310-10-55-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:f028bd20a6354e5a7a8beed9799f41a8d145b493ea727f1c70d81e8830c9e1e8 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/). ##### [310-10-55-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:c90e3092d7cf0b9df520cc870c9bd0e8d4590d7ef93ada661c0ebcaf948988b1 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/). ##### [310-10-55-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:845ddeaaa32e9664b35105bd4f9b00b4e1ceb08cc40531d371544024ee4b7b1f 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/). ##### [310-10-55-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:424bfe496666942e67aaf2602345baef7f53a5f9d1d229185fa361f7166e48f8 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/). ##### [310-10-55-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:038d2233da2f65f8d1b44b8b213a275400f4788a6403b58b776d51149757ac56 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/). ##### [310-10-55-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:88a312f774ec3e88aec8887dd73ed1f2f90b485994d1bfddd36dc4096d13a1f0 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/). ##### [310-10-55-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:d055c44f814f601f154a04f10fc1e382212d0cff842200fe4633b11239d2732e 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/). ##### [310-10-55-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:8f42585b1dee2335e23ea31136053df7d38c17c1ce0360f87ab4c3c31ddc7b77 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/). ##### [310-10-55-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:5f8249c2fa7d83048c45cf5f8956d382ab933bfad226586f81e6635e11d59e19 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/). ##### [310-10-55-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:eab947de6dddbd2b40b98669d0cdb4a9264fdd6a904bbed8f4e7ce3bc34ac119 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/). ##### [310-10-55-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:56b9002b21c9d55d667e10a30f03aa8f35194fa52fbe1defd16f236396a837c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02.](https://asc.understandingaccounting.org/updates/asu-2022-02/) #### Illustrations ##### [310-10-55-12A](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:1c129da65fc868ad5619d61f5def4a424cafff69f31ff5bda13563e78312a1f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Example illustrates the disclosures required by paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . For ease of illustration, comparative periods are excluded. - **Entity B** - The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. Entity B uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. - Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, Entity B modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. - In some cases, Entity B will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the real estate loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, and interest rate reduction. - The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted (numbers in thousands): - ![](https://asc.understandingaccounting.org/asc-img/GUID-CE8EBF8B-D75B-4A71-823C-F0F23F578C58-low.gif) Loan Modifications Made to Borrowers Experiencing Financial Difficulty Interest Rate Reduction Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial " $40,000 " 2.0% Real Estate—Residential - 0.0 Consumer " 10,000 " 0.2 Total " $50,000 " Term Extension Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial $- 0.0% Real Estate—Residential - 0.0 Consumer " 22,000 " 0.4 Total " $22,000 " Principal Forgiveness Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial " $20,000 " 1.0% Real Estate—Residential - 0.0 Consumer - 0.0 Total " $20,000 " Combination—Term Extension and Principal Forgiveness Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial $- 0.0% Real Estate—Residential " 5,000 " 0.8 Consumer - 0.0 Total " $5,000 " "Combination—Term Extension and Interest Rate Reduction" Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial $- 0.0% Real Estate—Residential " 5,000 " 0.8 Consumer - 0.0 Total " $5,000 " - The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: - ![](https://asc.understandingaccounting.org/asc-img/GUID-D173EDAE-8F62-425F-B37C-575E9D9C0F1C-low.gif) Interest Rate Reduction Loan Type Financial Effect Real Estate—Commercial Reduced weighted-average contractual interest rate from 6% to 3%. Real Estate—Residential Reduced weighted-average contractual interest rate from 8% to 5%. Consumer Reduced weighted-average contractual interest rate from 4% to 1.5%. Term Extension Loan Type Financial Effect Real Estate—Residential "Added a weighted-average 2.4 years to the life of loans, which reduced monthly payment amounts for the borrowers." Consumer Provided six-month payment deferrals to borrowers through our standard deferral program. The six monthly payments were added to the end of the original loan terms of these borrowers. Principal Forgiveness Loan Type Financial Effect Real Estate—Commercial Reduced the amortized cost basis of the loans by $20 million. Real Estate—Residential Reduced the amortized cost basis of the loans by $5 million. - Upon Entity B’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. - The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty (numbers in thousands): - ![](https://asc.understandingaccounting.org/asc-img/GUID-B617A162-8110-4710-B0A2-B16E4800E07E-low.gif) Financing Receivable That Subsequently Defaulted Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted Interest Rate Reduction Term Extension Principal Forgiveness Combination- Term Extension and Principal Forgiveness Combination- Term Extension and Interest Rate Reduction Loan Type Real Estate—Commercial " $1,500 " $- $- $- $- Real Estate—Residential - - - - - Consumer 500 " 1,000 " - - - Total " $2,000 " " $1,000 " $- $- $- - Entity B closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months (numbers in thousands): - ![](https://asc.understandingaccounting.org/asc-img/GUID-7F7C3A16-6B42-4520-9386-E428F0EE916C-low.gif) Payment Status (Amortized Cost Basis) Current "30–89 Days Past Due" "90+ Days Past Due" Loan Type Real Estate—Commercial " $55,000 " " $3,500 " " $1,500 " Real Estate—Residential " 6,000 " " 4,000 " - Consumer " 29,000 " " 1,500 " " 1,500 " Total " $90,000 " " $9,000 " " $3,000 " ##### [310-10-55-12B](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:f0b46d4cff8dca8418142923db817b5a2fd39bb13b2bb966e1d29017658b3d9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A restructuring that results in only a delay in payment that is insignificant is not required to be disclosed on the basis of the requirements in paragraphs [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) and [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . This Example illustrates the guidance in paragraphs [310-10-50-46 through 50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) for determining whether a delay in payment is insignificant. This Example assumes that the debtor is experiencing financial difficulties and is not intended to illustrate the determination of whether a debtor is experiencing financial difficulties. ##### [310-10-55-12C](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12C) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:c59155c09ea0a2b54f7e6e004aad2223714d16ddbc8f21b5c8f81fde767bc1e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A creditor originates a seven-year loan to a debtor. The debt: 1. a Has a fixed interest rate 2. b Is collateralized by commercial real estate 3. c Requires monthly interest payments 4. d Requires a balloon principal payment at maturity. ##### [310-10-55-12D](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12D) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:04a98bfba91789bd77775965dcca0c9a579fb25152c27752a1397576ff128823 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At origination, the debtor expects to repay the principal by refinancing the debt with the real estate held as collateral. That is, the collateral is the primary source of payment of the debt's principal balance, whether through a refinancing of the debt or a sale of the property. However, before maturity, the fair value of the collateral was less than the principal amount due at maturity, and as a result of market conditions, the debtor is unable to refinance the debt. The debtor plans to sell the property to repay the debt and requests an extension of the debt's maturity date to allow time to liquidate the property. In response to the debtor's financial difficulties, the creditor grants the debtor a three-month extension of the debt maturity date. At the time that this extension was granted, the debtor had not yet identified a buyer for the collateral. ##### [310-10-55-12E](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12E) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:0c557003bd1474b22805578b7e81d78d8493f365a9decb8a4a5759ebcca60d78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The restructuring results in a delay in payment that is not insignificant. Although the delay in timing of payment is insignificant (relative to the frequency of payments due, the debt's original contractual maturity, and the debt's original expected duration), the creditor expects a significant shortfall in cash flows relative to the contractual amount due when the property is sold because the property is the sole source of repayment. ##### [310-10-55-12F](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12F) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:066b88b1fca0cd825e98ff5f86a3751995a34d090c75db00216ae92f718047ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A restructuring that results in only a delay in payment that is insignificant is not required to be disclosed based on the requirements in paragraphs [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) and [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . This Example illustrates the guidance in paragraphs [310-10-50-46 through 50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) for determining whether a delay in payment is insignificant. This Example assumes that the debtor is experiencing financial difficulties and is not intended to illustrate the determination of whether a debtor is experiencing financial difficulties. ##### [310-10-55-12G](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12G) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:56d1f9327206a2373ac3a8222988f531e27b6c4411942728897cf6d92b06496c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A debtor obtains a 30-year mortgage loan that requires monthly principal and interest payments. In year 4, the debtor experiences financial difficulties and misses two payments. On the basis of the debtor's financial hardship, the debtor and the creditor agree on a forbearance arrangement and repayment plan. Under the terms of the forbearance arrangement and repayment plan, the creditor agrees not to take any foreclosure action if the debtor increases its next four monthly payments such that each payment includes one fourth of the delinquent amount plus interest. The agreement does not result in the creditor charging the debtor interest on past due interest. At the end of the forbearance arrangement, the debtor will: 1. a Have repaid all past due amounts 2. b Be considered current in relation to the debt's original terms 3. c Have resumed making monthly payments set out under the debt's original terms. ##### [310-10-55-12H](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12H) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:4d51eceb68761033f04fdd10e54dce69045f336664c228019420dc5e76dc77da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The restructuring results in a delay in payment that is insignificant. At the time of the forbearance arrangement, the creditor expects to collect all amounts due for the periods of delay. Furthermore, the length of delay resulting from the forbearance arrangement is considered insignificant in relation to the frequency of payments due, the debt's original contractual maturity, and the debt's original expected duration. ##### [310-10-55-12I](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12I) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:fbdd2cc5ef49ca94802e97625c3d0ddef53e39015028c67f0cc333a2e92c2a92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A restructuring that results in only a delay in payment that is insignificant is not required to be disclosed on the basis of the requirements in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . This Example illustrates the guidance in paragraphs [310-10-50-46 through 50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) for determining whether a delay in payment is insignificant. This Example assumes that the debtor is experiencing financial difficulties and is not intended to illustrate the determination of whether a debtor is experiencing financial difficulties. ##### [310-10-55-12J](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12J) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:52c60e3129e2b2b584363ecaa4ee7cc3e0a9fd26e1c3b490a1c4804f77f553af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A commercial debtor has a revolving line of credit with a creditor with an original term of five years. The terms of the line of credit require interest payments every 90 days on the average daily balance of the line. As the line of credit nears maturity, the debtor and creditor begin renegotiating the terms of a new line of credit. Because of a temporary cash shortfall due to a delay in collections from two key customers, the debtor is unable to make the final interest payment before the two parties finish renegotiating the terms of the new line of credit. The terms of the renegotiated line of credit are expected to be similar to the current line of credit, which are comparable to terms available to debtors with similar risk characteristics. The creditor expects the debtor to recover quickly from this temporary cash flow shortage. Accordingly, the creditor extends a 3-month payment deferral by adding the missed interest payment to the balance of the line and requiring the debtor to make its first interest payment 90 days after the new line of credit is finalized, or 180 days after the due date of the missed interest payment. ##### [310-10-55-12K](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12K) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:4db84bb0967bd75d9e9605410802e4f456bd1fc4152bf4884c4dab9730903240 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The restructuring results in a delay in payment that is insignificant. Although the debtor is unable to make the contractual payment at the time it is due, thereby resulting in the three-month deferral, the creditor still expects to collect all amounts due, including interest at the contractual rate. Furthermore, the delay in timing of payment represents only one payment cycle under the terms of the line, which is insignificant relative to the frequency of payments due, the debt's original contractual maturity, and the debt's original expected duration. ##### [310-10-55-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:d28da3606a9f4a544902fae88af6dfe98045e3d9d2d215b30bcba7deb577e0ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This implementation guidance addresses the meaning of the term [financing receivable](https://asc.understandingaccounting.org/glossary/f/#financing-receivable "A financing arrangement that has both of the following characteristics: It represents a contractual right to receive money in either of the following ways: On demand On fixed or determinable dates. It is recognized as an asset in the entity's statement of financial position. See paragraphs 310-10-55-13310-10-55-14310-10-55-15 for more information on the definition of financing receivable, including a list of items that are excluded from the definition (for example, debt securities)."). ##### [310-10-55-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:2498b8fc24ff9dec6f3ab5d9ff064272869d2cc1390da548fe2ede92a065f162 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are examples of financing receivables: 1. a Loans 2. b Trade accounts receivable 3. c Notes receivable 4. d Credit cards 5. e Receivables relating to a lessor's right(s) to payment(s) from a [leveraged lease](https://asc.understandingaccounting.org/glossary/l/#leveraged-lease "From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.") that should be recognized as an asset in accordance with paragraphs [842-10-65-1(z)](https://asc.understandingaccounting.org/asc/842/10/#842-10-65-1) 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). 6. f [Lease receivables](https://asc.understandingaccounting.org/glossary/l/#lease-receivable "A lessor's right to receive lease payments arising from a sales-type lease or a direct financing lease plus any amount that a lessor expects to derive from the underlying asset following the end of the lease term to the extent that it is guaranteed by the lessee or any other third party unrelated to the lessor, measured on a discounted basis.") arising from [sales-type leases](https://asc.understandingaccounting.org/glossary/s/#sales-type-lease "From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.") or [direct financing leases](https://asc.understandingaccounting.org/glossary/d/#direct-financing-lease "From the perspective of a lessor, a lease that meets none of the criteria in paragraph 842-10-25-2 but meets the criteria in paragraph 842-10-25-3(b)and is not an operating lease in accordance with paragraph 842-10-25-3A."). ##### [310-10-55-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:2acf1daf182843621d09644aa9dbfd56e91c0c547733f10d7e249726892ef736 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. None of the following meet the definition of financing receivables: 1. a [Debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") within the scope of Topic 320 (see the guidance beginning in paragraph [320-10-15-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-5)) 2. b Unconditional promises to give (for example, contributions receivable) that should be recognized as an asset in accordance with paragraphs [958-605-25-7 through 25-15](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-7) 3. c Both of the following instruments, which are within the scope of Subtopic 325-40: 1. 1 A transferor's interests in securitization transactions that are accounted for as sales under Topic 860 2. 2 Purchased beneficial interests in securitized financial assets. For related guidance, see paragraph 325-40-15. ##### [310-10-55-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:1b866fb88ea4b892eea3f9c35065a8827b7bbe8c176c68e70b66e63a257f8aca 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/). ##### [310-10-55-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:a7c8899a5b83fc85127b31db3960112e06e1f79612652b67c1039876319553ff 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/). ##### [310-10-55-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:dace942835dd47cf69d58fbb82b50073ac4e7373d49401ee55ecaa3db4be9703 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/). ##### [310-10-55-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:166de51dc02d471608006b6139668f2451c5b3538a0b932f5151a079e8a4e29e 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/). ##### [310-10-55-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:fbf2f459ad65e3d63dc266134812235e4a3414bed401fb3de7759673f8f55304 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/). ##### [310-10-55-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:27640bf2514f8078d1ee02a40a7369f26ebd70f1c55d46236d355782712b924b 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/). ##### [310-10-55-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:15154cbf061082448555dfa673cea3a3d03e293984aab7b23a9ef076a6b5de2f 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/). Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:bbe8ea89ea143d4cdf961b32241d0ae31b554cbd908684309f10581c840ca82e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/310/10/#60-relationships) SEC content: no #### Liabilities ##### [310-10-60-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:2496c114db9da2ff3ccbed3953703c39e5f21b3ee548894d1ea149f50dacaa8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For receivables related to recovery of insurance-related assessments, see paragraph [405-30-25-8](https://asc.understandingaccounting.org/asc/405/30/#405-30-25-8). #### Contingencies ##### [310-10-60-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:a1b65bf4ac84fe8905da55e2467a541c5b61ba9b9bbde57d901fa7766ec8e837 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For accounting guidance for loss contingencies, including guidance on accrual of an estimated loss from a loss contingency, see Subtopic 450-20. #### Guarantees ##### [310-10-60-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:77c14a48c85bcd7668052d9415e2687e895182b18dceb5ba59946448b833a0fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance related to the accounting by a guarantor at the inception of a guarantee issued, see Topic 460. ##### [310-10-60-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:75d0d7aa9a05711689e538652685cab8caa96a2063e8ee5816273028f284a4bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on [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.") guarantees, in which an entity (guarantor) lends its creditworthiness to another party (borrower) for a fee, thereby enhancing that other party's ability to borrow funds, see Topic 460 on guarantees. See Topic 815 on derivatives and hedging for guarantees accounted for as a derivative. #### Transfers and Servicing ##### [310-10-60-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:314bb96985ac41b5895e78cf7f0e42d59a8e813fa05ff6f1338703f7f43aa733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting for transfers of financial assets, including receivables, see Subtopic 860-20. ##### [310-10-60-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:321b1a83c262e6f1c422c73bf9290beeb4fb0ec49e5332b10c5f56f212b8a07d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the accounting for servicing assets and liabilities related to loans and other receivables, see Subtopic 860-50. Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:f1f3673f8b9f058aaf8b0ae8aa065ec3c7bc926fe2da3b0e7336a23c862a3ebf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/310/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [310-10-65-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:c51455235fb9f9d785821382a8bab250896888861e2b122354a37752af79f2cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 03/15/2011 after the end of the transition period stated in Accounting Standards Update No. 2010-18, _Receivables (Topic 310): Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single Asset_. ##### [310-10-65-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-65-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:ea44be78af0d85616d82688464286212c19aa6130276ec767567fc1c213f0323 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/18/2012 after the end of the transition period stated in Accounting Standards Update No. 2010-20, _Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses_. ##### [310-10-65-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-65-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:032333f7e2ad0254efa1a16ab0243578366aeefd9a283e3986791551e3a30c80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/18/2012 after the end of the transition period stated in Accounting Standards Update No. 2011-01, _Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20_. Source downloaded (UTC): 2026-09-09T23:25:21.408Z to 2026-09-09T23:25:21.408Z Record version: sha256:b7d8d82dc5e70a4020dea3eec623e16f84d6e126bc875483b98f1e62e89a0807 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-00-status) SEC content: yes ##### [310-10-S00-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:21.408Z to 2026-09-09T23:25:21.408Z Record version: sha256:6a162311e6f0ae30b88b0dd51f9cc557405cfe3b0c770698ee47c9611e7f8163 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
310-10-S50-2AmendedAccounting Standards Update No. 2009-0709/15/2009
310-10-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
310-10-S99-4AmendedAccounting Standards Update No. 2012-0308/27/2012
310-10-S99-4AmendedAccounting Standards Update No. 2009-0308/24/2009
Source downloaded (UTC): 2026-09-09T23:25:23.298Z to 2026-09-09T23:25:23.298Z Record version: sha256:4bd0a232c2c442dc05afd3287dc603643dd1f37bd56b23d0bf14150e6dd79db6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-35-subsequent-measurement) SEC content: yes #### Accounting for Loan Losses by Registrants Engaged in Lending Activities ##### [310-10-S35-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:23.298Z to 2026-09-09T23:25:23.298Z Record version: sha256:91465f5959d61812ea01238d0c35429068641f1255679496607b5f122c82ac31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-4), SAB Topic 6.L., for SEC Staff views on accounting for loan losses by registrants engaged in lending activities. Source downloaded (UTC): 2026-09-09T23:25:27.446Z to 2026-09-09T23:25:27.446Z Record version: sha256:ca18975002a248ccf685c4a67f4551a6638add3f9e397d77e1da9ea28baef647 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-45-other-presentation-matters) SEC content: yes #### Receivables Arising from the Issuance of Capital Stock to Officers or Other Employees ##### [310-10-S45-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:27.446Z to 2026-09-09T23:25:27.446Z Record version: sha256:14ac79c7ffaa71a527048accc558db69d00a8e79ee68f5d65bccd389ef37caac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-2), SAB Topic 4.E, for SEC Staff views on the presentation of receivables for capital stock from officers or other employees. #### Notes or Other Receivables from a Parent or Another Affiliate ##### [310-10-S45-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:27.446Z to 2026-09-09T23:25:27.446Z Record version: sha256:9ce14a8b9e3e1bb93338e14711728c0f21eac62af11de446e3f467095afb33d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-3), SAB Topic 4.G, for SEC Staff views on the presentation of notes or other receivables from a parent or another affiliate. Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:ce956b9129e2930c0a41c810f4c04897571adfbc750ff2332a1afc8faa8f232f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-50-disclosure) SEC content: yes #### Disclosure Requirements for Accounts and Notes Receivable ##### [310-10-S50-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:b0b9e3fca29b3e20b25ee721ab516e0417a18a7db71f286c8f915f2ba286c5cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.3, for disclosure requirements for accounts and notes receivable. ##### [310-10-S50-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:d779972d49facc939208036e7948c7c9273fecd125c09e9ee7b7751dd7cb2f8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-4](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-4), Regulation S-X Rule 12-09, for the required disclosure for the schedule of valuation and qualifying accounts, which would include reserves on receivables. ### Acquisition, Development, and Construction Arrangements #### Disclosures Related to Acquisition, Development, and Construction Arrangements ##### [310-10-S50-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:20022fa1aee83229e0e4fac466fc43ca90c1f4c03c39a0e04a3a30bd8fb98fe1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-1), SAB Topic 1.I, Questions 5, 6 and 7, for SEC Staff views on disclosures related to acquisition, development, and construction arrangements. Source downloaded (UTC): 2026-09-09T23:25:34.792Z to 2026-09-09T23:25:34.792Z Record version: sha256:b4539ebbe0d47124463625e2c85b8a8a7b76849df4cfff604be4af2383b13271 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes ### Acquisition, Development, and Construction Arrangements #### Criteria for Loan Accounting ##### [310-10-S55-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:34.792Z to 2026-09-09T23:25:34.792Z Record version: sha256:a481d5385af0d0be14e4c54286a612e941d70c61f89e5a9da3aa19985437df8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-1), SAB Topic 1.I, Question 3, for SEC Staff views on criteria supporting accounting for a transaction as a mortgage loan. Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:c2a150efc6e8bf4b20fac639bb5eb8dd12f9354ecf1a70aadafa6864096d2fc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [310-10-S99-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:b8eefcc43af9b2d97e0747ea053901737a6f13a2586c240ed9782ab8353f5a3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 1.I, Financial Statements of Properties Securing Mortgage Loans. - Facts: A registrant files a Securities Act registration statement covering a maximum of $100 million of securities. Proceeds of the offering will be used to make mortgage loans on operating residential or commercial property. Proceeds of the offering will be placed in escrow until $1 million of securities are sold at which point escrow may be broken, making the proceeds immediately available for lending, while the selling of securities would continue. - Question 1: Under what circumstances are the financial statements of a property on which the registrant makes or expects to make a loan required to be included in a filing? - Interpretive Response: Rule 3-14 of Regulation S-X specifies the requirements for financial statements when the registrant has acquired one or more properties which in the aggregate are significant, or since the date of the latest balance sheet required has acquired or proposes to acquire one or more properties which in the aggregate are significant. - Included in the category of properties acquired or to be acquired under Rule 3-14 are operating properties underlying certain mortgage loans, which in economic substance represent an investment in real estate or a joint venture rather than a loan. Certain characteristics of a lending arrangement indicate that the "lender" has the same risks and potential rewards as an owner or joint venturer. Those characteristics are set forth in the Acquisition, Development, and Construction Arrangements (ADC Arrangements) Subsections of FASB ASC Subtopic 310-10, Receivables—Overall FN6FN7. In September 1986 the EITF FN8 reached a consensus on this issue FN9 to the effect that, although the guidance in the ADC Arrangements Subsections of FASB ASC Subtopic 310-10 was issued to address the real estate ADC arrangements of financial institutions, preparers and auditors should consider that guidance in accounting for shared appreciation mortgages, loans on operating real estate and real estate ADC arrangements entered into by enterprises other than financial institutions. - FN6 \[Original footnote removed by SAB 114.\] - FN7 \[Original footnote removed by SAB 114.\] - FN8 The Emerging Issues Task Force ("EITF") was formed in 1984 to assist the Financial Accounting Standards Board in the early identification and resolution of emerging accounting issues. Topics to be discussed by the EITF are publicly announced prior to its meetings and minutes of all EITF meetings are available to the public. - FN9 FASB ASC paragraph [310-10-05-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-9). - FASB ASC Topic 815, Derivatives and Hedging—Embedded Derivatives, generally requires that embedded instruments meeting the definition of a derivative and not clearly and closely related to the host contract be accounted for separately from the host instrument. If the embedded expected residual profit component of an ADC arrangement need not be separately accounted for as a derivative under FASB ASC Topic 815, then the disclosure requirements discussed below for ADC loans and similar arrangements should be followed. FN10 - FN10 The equity kicker (the expected residual profit) would typically not be separated from the host contract and accounted for as a derivative because FASB ASC subparagraph [815-15-25-1(c)](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) exempts a hybrid contract from bifurcation if a separate instrument with the same terms as the embedded equity kicker is not a derivative instrument subject to the requirements of FASB ASC Topic 815. - In certain cases the "lender" has virtually the same potential rewards as those of an owner or a joint venturer by virtue of participating in expected residual profit. FN11 In addition, the ADC Arrangements Subsections of FASB ASC Subtopic 310-10 include a number of other characteristics which, when considered individually or in combination, would suggest that the risks of an ADC arrangement are similar to those associated with an investment in real estate or a joint venture or, conversely, that they are similar to those associated with a loan. Among those other characteristics is whether the lender agrees to provide all or substantially all necessary funds to acquire the property, resulting in the borrower having title to, but little or no equity in, the underlying property. The staff believes that the borrower's equity in the property is adequate to support accounting for the transaction as a mortgage loan when the borrower's initial investment meets the criteria in FASB ASC paragraph [360-20-40-18](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-18) (Property, Plant, and Equipment Topic) FN12 and the borrower's payments of principal and interest on the loan are adequate to maintain a continuing investment in the property which meets the criteria in FASB ASC paragraph [360-20-40-19](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-19). FN13 - FN11 Expected residual profit is defined in the ADC Arrangements Subsections of FASB ASC Subtopic 310-10 as 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 the "lender." - FN12 FASB ASC Subtopic 360-20 establishes standards for the recognition of profit on real estate sales transactions. FASB ASC paragraph [360-20-40-18](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-18) states that the buyer's initial investment shall be adequate to demonstrate the buyer's commitment to pay for the property and shall indicate a reasonable likelihood that the seller will collect the receivable. Guidance on minimum initial investments in various types of real estate is provided in FASB ASC paragraphs [360-20-55-1](https://asc.understandingaccounting.org/asc/360/20/#360-20-55-1) and [360-20-55-2](https://asc.understandingaccounting.org/asc/360/20/#360-20-55-2). - FN13 FASB ASC paragraph [360-20-40-19](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-19) states that the buyer's continuing investment in a real estate transaction shall not qualify unless the buyer is contractually required to pay each year on its total debt for the purchase price of the property an amount at least equal to the level annual payment that would be needed to pay that debt and interest on the unpaid balance over not more than (a) 20 years for debt for land and (b) the customary amortization term of a first mortgage loan by an independent established lending institution for other real estate. - The financial statements of properties which will secure mortgage loans made or to be made from the proceeds of the offering which have the characteristics of real estate investments or joint ventures should be included as required by Rule 3-14 in the registration statement when such properties secure loans previously made, or have been identified as security for probable loans prior to effectiveness, and in filings made pursuant to the undertaking in Item 20D of Securities Act Industry Guide 5. - Rule 1-02(w) of Regulation S-X includes the conditions used in determining whether an acquisition is significant. The separate financial statements of an individual property should be provided when a property would meet the requirements for a significant subsidiary under this rule using the amount of the "loan" as a substitute for the "investment in the subsidiary" in computing the specified conditions. The combined financial statements of properties which are not individually significant should also be provided. However, the staff will not object if the combined financial statements of such properties are not included if none of the conditions specified in Rule 1-02(w), with respect to all such properties combined, exceeds 20% in the aggregate. - Under certain circumstances, information may also be required regarding operating properties underlying mortgage loans where the terms do not result in the lender having virtually the same risks and potential rewards as those of owners or joint venturers. Generally, the staff believes that, where investment risks exist due to substantial asset concentration, financial and other information should be included regarding operating properties underlying a mortgage loan that represents a significant amount of the registrant's assets. Such presentation is consistent with Rule 3-13 of Regulation S-X and Rule 408 under the Securities Act of 1933. - Where the amount of a loan exceeds 20% of the amount in good faith expected to be raised in the offering, disclosures would be expected to consist of financial statements for the underlying operating properties for the periods contemplated by Rule 3-14. Further, where loans on related properties are made to a single person or group of affiliated persons which in the aggregate amount to more than 20% of the amount expected to be raised, the staff believes that such lending arrangements result in a sufficient concentration of assets so as to warrant the inclusion of financial and other information regarding the underlying properties. - Question 2: Will the financial statements of the mortgaged properties be required in filings made under the 1934 Act? - Interpretive Response: Rule 3-09 of Regulation S-X specifies the requirement for significant, as defined, investments in operating entities, the operations of which are not included in the registrant's consolidated financial statements. FN14 Accordingly, the staff believes that the financial statements of properties securing significant loans which have the characteristics of real estate investments or joint ventures should be included in subsequent filings as required by Rule 3-09. The materiality threshold for determining whether such an investment is significant is the same as set forth in paragraph (a) of that Rule. FN15 - FN14 Rule 3-14 states that the financial statements of an acquired property should be furnished if the acquisition took place during the period for which the registrant's income statements are required. Paragraph (b) of the Rule states that the information required by the Rule is not required to be included in a filing on Form 10-K. That exception is consistent with Item 8 of Form 10-K which excludes acquired company financial statements, which would otherwise be required by Rule 3-05 of Regulation S-X, from inclusion in filings on that Form. Those exceptions are based, in part, on the fact that acquired properties and acquired companies will generally be included in the registrant's consolidated financial statements from the acquisition date. - FN15 Rule 3-09(a) states, in part, that "\[i\]f any of the conditions set forth in \[Rule\] 1-02(w), substituting 20 percent for 10 percent in the tests used therein to determine significant subsidiary, are met... separate financial statements... shall be filed." - Likewise, the staff believes that filings made under the 1934 Act should include the same financial and other information relating to properties underlying any loans which are significant as discussed in the last paragraph of Question 1, except that in the determination of significance the 20% disclosure threshold should be measured using total assets. The staff believes that this presentation would be consistent with Rule 12b-20 under the Securities Exchange Act of 1934. - Question 3: The interpretive response to question 1 indicates that the staff believes that the borrower's equity in an operating property is adequate to support accounting for the transaction as a mortgage loan when the borrower's initial investment meets the criteria in FASB ASC paragraph [360-20-40-18](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-18) and the borrower's payments of principal and interest on the loan are adequate to maintain a continuing investment in the property which meets the criteria in FASB ASC paragraph [360-20-40-19](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-19). Is it the staff's view that meeting these criteria is the only way the borrower's equity in the property is considered adequate to support accounting for the transaction as a mortgage loan? - Interpretive Response: No. It is the staff's position that the determination of whether loan accounting is appropriate for these arrangements should be made by the registrant and its independent accountants based on the facts and circumstances of the individual arrangements, using the guidance provided in the ADC Arrangements Subsections of FASB ASC Subtopic 310-10. As stated in those Subsections, loan accounting may not be appropriate when the lender participates in expected residual profit and has virtually the same risks as those of an owner, or joint venturer. In assessing the question of whether the lender has virtually the same risks as an owner, or joint venturer, the essential test that needs to be addressed is whether the borrower has and is expected to continue to have a substantial amount at risk in the project. FN16 The criteria described in FASB ASC Subtopic 360-20, Property, Plant, and Equipment—Real Estate Sales, provide a "safe harbor" for determining whether the borrower has a substantial amount at risk in the form of a substantial equity investment. The borrower may have a substantial amount at risk without meeting the criteria described in FASB ASC Subtopic 360-20. - FN16 Regarding the composition of the borrower's investment, FASB ASC paragraph [310-10-25-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-20) indicates that the borrower's investment may include the value of land or other assets contributed by the borrower, net of encumbrances. The staff emphasizes that such paragraph indicates, "...recently acquired property generally should be valued at no higher than cost.. " Thus, for such recently acquired property, appraisals will not be sufficient to justify the use of a value in excess of cost. - Question 4: What financial statements should be included in filings made under the Securities Act regarding investment-type arrangements that individually amount to 10% or more of total assets? - Interpretive Response: In the staff's view, separate audited financial statements should be provided for any investment-type arrangement that constitutes 10% or more of the greater of (i) the amount of minimum proceeds or (ii) the total assets of the registrant, including the amount of proceeds raised, as of the date the filing is required to be made. Of course, the narrative information required by items 14 and 15 of Form S-11 should also be included with respect to these investment-type arrangements. - Question 5: What information must be provided under the Securities Act for investment-type arrangements that individually amount to less than 10%? - Interpretive Response: No specific financial information need be presented for investment-type arrangements that amount to less than 10%. However, where such arrangements aggregate more than 20%, a narrative description of the general character of the properties and arrangements should be included that gives an investor an understanding of the risks and rewards associated with these arrangements. Such information may, for example, include a description of the terms of the arrangements, participation by the registrant in expected residual profits, and property types and locations. - Question 6: What financial statements should be included in annual reports filed under the Exchange Act with respect to investment-type arrangements that constitute 10% or more of the registrant's total assets? - Interpretive Response: In annual reports filed with the Commission, the staff has advised registrants that separate audited financial statements should be provided for each nonconsolidated investment-type arrangement that is 20% or more of the registrant's total assets. While the distribution is on-going, however, the percentage may be calculated using the greater of (i) the amount of the minimum proceeds or (ii) the total assets of the registrant, including the amount of proceeds raised, as of the date the filing is required to be made. In annual reports to shareholders registrants may either include the separate audited financial statements for 20% or more nonconsolidated investment-type arrangements or, if those financial statements are not included, present summarized financial information for those arrangements in the notes to the registrant's financial statements. - The staff has also indicated that separate summarized financial information (as defined in Rule 1-02(bb) of Regulation S-X) should be provided in the footnotes to the registrant's financial statements for each nonconsolidated investment-type arrangement that is 10% or more but less than 20%. Of course, registrants should also make appropriate textural disclosure with respect to material investment-type arrangements in the "business" and "property" sections of their annual reports to the Commission. FN17 - FN17 Registrants are reminded that in filings on Form 8-K that are triggered in connection with an acquisition of an investment-type arrangement, separate audited financial statements are required for any such arrangement that individually constitutes 10% or more. - Question 7: What information should be provided in annual reports filed under the Exchange Act with respect to investment-type arrangements that do not meet the 10% threshold? - Interpretive Response: The staff believes it will not be necessary to provide any financial information (full or summarized) for investment-type arrangements that do not meet the 10% threshold. However, in the staff's view, where such arrangements aggregate more than 20%, a narrative description of the general character of the properties and arrangements would be necessary. The staff believes that information should be included that would give an investor an understanding of the risks and rewards associated with these arrangements. Such information may, for example, include a description of the terms of the arrangements, participation by the registrant in expected residual profits, and property types and locations. Of course, disclosure regarding the operations of such components should be included as part of the Management's Discussion and Analysis where there is a known trend or uncertainty in the operations of such properties, either individually or in the aggregate, which would be reasonably likely to result in a material impact on the registrant's future operations, liquidity or capital resources. ##### [310-10-S99-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:4b9d87b91735b184d28633568dcd5388fbaff7f1bb8c3782a6f4e8d8883eb155 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.E, Receivables from Sale of Stock. - (Replaced by SAB 107) - Facts: Capital stock is sometimes issued to officers or other employees before the cash payment is received. - Question: How should the receivables from the officers or other employees be presented in the balance sheet? - Interpretive Response: The amount recorded as a receivable should be presented in the balance sheet as a deduction from stockholders' equity. This is generally consistent with Rule 5-02.30 of Regulation S-X which states that accounts or notes receivable arising from transactions involving the registrant's capital stock should be presented as deductions from stockholders' equity and not as assets. - It should be noted generally that all amounts receivable from officers and directors resulting from sales of stock or from other transactions (other than expense advances or sales on normal trade terms) should be separately stated in the balance sheet irrespective of whether such amounts may be shown as assets or are required to be reported as deductions from stockholders' equity. - The staff will not suggest that a receivable from an officer or director be deducted from stockholders' equity if the receivable was paid in cash prior to the publication of the financial statements and the payment date is stated in a note to the financial statements. However, the staff would consider the subsequent return of such cash payment to the officer or director to be part of a scheme or plan to evade the registration or reporting requirements of the securities laws. ##### [310-10-S99-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:da23b79af47e90458bbbb8e54abaaebf12918365e36c4d602b0ab5eaa6495dff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.G, Notes and Other Receivables from Affiliates. - Facts: The balance sheet of a corporate general partner is often presented in a registration statement. Frequently, the balance sheet of the general partner discloses that it holds notes or other receivables from a parent or another affiliate. Often the notes or other receivables were created in order to meet the "substantial assets" test which the Internal Revenue Service utilizes in applying its "Safe Harbor" doctrine in the classification of organizations for income tax purposes. - Question: How should such notes and other receivables be reported in the balance sheet of the general partner? - Interpretive Response: While these notes and other receivables evidencing a promise to contribute capital are often legally enforceable, they seldom are actually paid. In substance, these receivables are equivalent to unpaid subscriptions receivable for capital shares which Rule 5-02.30 of Regulation S-X requires to be deducted from the dollar amount of capital shares subscribed. - The balance sheet display of these or similar items is not determined by the quality or actual value of the receivable or other asset "contributed" to the capital of the affiliated general partner, but rather by the relationship of the parties and the control inherent in that relationship. Accordingly, in these situations, the receivable must be treated as a deduction from stockholders' equity in the balance sheet of the corporate general partner. ##### [310-10-S99-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:75033589249314fc5a69e3ca98d6ceccca5f28c874139a0603785a59e7abe99f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 6.L, Financial Reporting Release 28—Accounting for Loan Losses by Registrants Engaged in Lending Activities. - 1\. Accounting for loan losses - General: GAAP for recognition of loan losses is provided by FASB ASC Subtopic 450-20, Contingencies—Loss Contingencies, and FASB ASC Subtopic 310-10, Receivables—Overall. FN6 An estimated loss from a loss contingency, such as the collectibility of receivables, should be accrued when, based on information available prior to the issuance of the financial statements, it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. FN7 FASB ASC Subtopic 310-10 provides more specific guidance on measurement of loan impairment and related disclosures but does not change the fundamental recognition criteria for loan losses provided by FASB ASC 450-20. - FN6 \[Original footnote removed by SAB 114.\] - FN7 FASB ASC paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2). - Further guidance for SEC registrants is provided by FRR 28, which added subsection (b), Procedural Discipline in Determining the Allowance and Provision for Loan Losses to be Reported, of Section 401.09, Accounting for Loan Losses by Registrants Engaged in Lending Activities, to the Codification of Financial Reporting Policies (hereafter referred to as FRR 28). Additionally, public companies are required to comply with the books and records provisions of the Securities Exchange Act of 1934 (Exchange Act). Under Sections 13(b)(2) - (7) of the Exchange Act, registrants must make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the registrant. Registrants also must maintain internal accounting controls that are sufficient to provide reasonable assurances that, among other things, transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP. - This staff interpretation applies to all registrants that are creditors in loan transactions that, individually or in the aggregate, have a material effect on the registrant's financial statements. FN8. - FN8 For purposes of this interpretation, a loan is defined (consistent with the FASB ASC Master Glossary) as 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. For purposes of this interpretation, loans do not include trade accounts receivable or notes receivable with terms less than one year or debt securities subject to the provisions of FASB ASC Topic 320, Investments—Debt and Equity Securities. - 2\. Developing and documenting a systematic methodology - a. Developing a systematic methodology. - Facts: Registrant A, or one of its consolidated subsidiaries, engages in lending activities and is developing or performing a review of its loan loss allowance methodology. - Question: What are some of the factors or elements that the staff normally would expect Registrant A to consider when developing (or subsequently performing an assessment of) its methodology for determining its loan loss allowance under GAAP? - Interpretive Response: The staff normally would expect a registrant that engages in lending activities to develop and document a systematic methodology FN9 to determine its provision for loan losses and allowance for loan losses as of each financial reporting date. It is critical that loan loss allowance methodologies incorporate management's current judgments about the credit quality of the loan portfolio through a disciplined and consistently applied process. A registrant's loan loss allowance methodology is influenced by entity-specific factors, such as an entity's size, organizational structure, business environment and strategy, management style, loan portfolio characteristics, loan administration procedures, and management information systems. - FN9 FRR 28 states that " the Commission's staff normally would expect to find that the books and records of registrants engaged in lending activities include documentation of \[the\]: (a) systematic methodology to be employed each period in determining the amount of the loan losses to be reported, and (b) rationale supporting each period's determination that the amounts reported were adequate." - However, as indicated in the AICPA Audit and Accounting Guide, Depository and Lending Institutions with Conforming Changes as of June 1, 2009 (Audit Guide), while different institutions may use different methods, there are certain common elements that should be included in any \[loan loss allowance\] methodology for it to be effective. FN10 A registrant's loan loss allowance methodology generally should: FN11. - FN10 See paragraph 9.05 of the Audit Guide. - FN11 Ibid. - Include a detailed analysis of the loan portfolio, performed on a regular basis; - Consider all loans (whether on an individual or group basis); - Identify loans to be evaluated for impairment on an individual basis under FASB ASC Subtopic 310-10 and segment the remainder of the portfolio into groups of loans with similar risk characteristics for evaluation and analysis under FASB ASC Subtopic 450-20; - Consider all known relevant internal and external factors that may affect loan collectibility; - Be applied consistently but, when appropriate, be modified for new factors affecting collectibility; - Consider the particular risks inherent in different kinds of lending; - Consider current collateral values (less costs to sell), where applicable; - Require that analyses, estimates, reviews and other loan loss allowance methodology functions be performed by competent and well-trained personnel; - Be based on current and reliable data; - Be well documented, in writing, with clear explanations of the supporting analyses and rationale (see Question 2 below for staff views on documenting a loan loss allowance methodology); and - Include a systematic and logical method to consolidate the loss estimates and ensure the loan loss allowance balance is recorded in accordance with GAAP. - For many entities engaged in lending activities, the allowance and provision for loan losses are significant elements of the financial statements. - Therefore, the staff believes it is appropriate for an entity's management to review, on a periodic basis, its methodology for determining its allowance for loan losses. FN12 Additionally, for registrants that have audit committees, the staff believes that oversight of the financial reporting and auditing of the loan loss allowance by the audit committee can strengthen the registrant's control system and process for determining its allowance for loan losses. FN13 - FN12 For federally insured depository institutions, the December 21, 1993 "Interagency Policy Statement on the Allowance for Loan and Lease Losses (ALLL)" (the 1993 Interagency Policy Statement) indicates that boards of directors and management have certain responsibilities for the ALLL process and amounts reported. For example, as indicated on page 4 of that statement, "the board of directors and management are expected to: Ensure that the institution has an effective loan review system and controls\[;\] Ensure the prompt charge-off of loans, or portions of loans, that available information confirms to be uncollectible\[; and\] Ensure that the institution's process for determining an adequate level for the ALLL is based on a comprehensive, adequately documented, and consistently applied analysis of the institution's loan and lease portfolio." - FN13 SAS 61 (as amended by SAS 90) states, in part: "In connection with each SEC engagement the auditor should discuss with the audit committee the auditor's judgments about the quality, not just the acceptability, of the entity's accounting principles as applied in its financial reporting. The discussion should include items that have a significant impact on the representational faithfulness, verifiability, and neutrality of the accounting information included in the financial statements. \[Footnote omitted.\] Examples of items that may have such an impact are the following: Selection of new or changes to accounting policies. Estimates, judgments, and uncertainties. Unusual transactions. Accounting policies relating to significant financial statement items, including the timing or transactions and the period in which they are recorded." - Selection of new or changes to accounting policies - Estimates, judgments, and uncertainties - Unusual transactions. - Accounting policies relating to significant financial statement items, including the timing or transactions and the period in which they are recorded." - A systematic methodology that is properly designed and implemented should result in a registrant's best estimate of its allowance for loan losses. FN14 Accordingly, the staff normally would expect registrants to adjust their loan loss allowance balance, either upward or downward, in each period for differences between the results of the systematic determination process and the unadjusted loan loss allowance balance in the general ledger. FN15 - FN14 Registrants should also refer to FASB ASC Section 450-20-30, Contingencies—Loss Contingencies—Initial Measurement, which provides accounting and disclosure guidance for situations in which a range of loss can be reasonably estimated but no single amount within the range appears to be a better estimate than any other amount within the range. - FN15 Registrants should refer to the guidance on materiality in SAB Topic 1.M. - b. Documenting a systematic methodology. - Question 1: Assume the same facts as in the previous question in Section 2(a). What would the staff normally expect Registrant A to include in its documentation of its loan loss allowance methodology? - Interpretive Response: In FRR 28, the Commission provided guidance for documentation of loan loss provisions and allowances for registrants engaged in lending activities. The staff believes that appropriate written supporting documentation for the loan loss provision and allowance facilitates review of the loan loss allowance process and reported amounts, builds discipline and consistency into the loan loss allowance determination process, and improves the process for estimating loan losses by helping to ensure that all relevant factors are appropriately considered in the allowance analysis. - The staff, therefore, normally would expect a registrant to document the relationship between the findings of its detailed review of the loan portfolio and the amount of the loan loss allowance and the provision for loan losses reported in each period. FN16 - FN16 FRR 28 states: "The specific rationale upon which the \[loan loss allowance and provision\] amount actually reported is based - i. e., the bridge between the findings of the detailed review \[of the loan portfolio\] and the amount actually reported in each period—would be documented to help ensure the adequacy of the reported amount, to improve auditability, and to serve as a benchmark for exercise of prudent judgment in future periods." - The staff normally would expect to find that registrants maintain written supporting documentation for the following decisions, strategies, and processes: FN17 - FN17 Paragraph 9.64 in the Audit Guide outlines specific aspects of effective internal control related to the allowance for loan losses. These specific aspects include the control environment ("management communication of the need for proper reporting of the allowance"); management reports that summarize loan activity and the institution's procedures and controls ("accumulation of relevant, sufficient, and reliable data on which to base management's estimate of the allowance"); "independent loan review;" review of information and assumptions ("adequate review and approval of the allowance estimates by the individuals specified in management's written policy"); and assessment of the process ("comparison of prior estimates related to the allowance with subsequent results to assess the reliability of the process used to develop the allowance"). - Policies and procedures: - Over the systems and controls that maintain an appropriate loan loss allowance, and - Over the loan loss allowance methodology; - Loan grading system or process; - Summary or consolidation of the loan loss allowance balance; - Validation of the loan loss allowance methodology; and - Periodic adjustments to the loan loss allowance process. - Question 2: The Interpretive Response to Question 2 indicates that the staff normally would expect to find that registrants maintain written supporting documentation for their loan loss allowance policies and procedures. In the staff's view, what aspects of a registrant's loan loss allowance internal accounting control systems and processes would appropriately be addressed in its written policies and procedures? - Interpretive Response: The staff is aware that registrants utilize a wide range of policies, procedures, and control systems in their loan loss allowance processes, and these policies, procedures, and systems are tailored to the size and complexity of the registrant and its loan portfolio. However, the staff believes that, in order for a registrant's loan loss allowance methodology to be effective, the registrant's written policies and procedures for the systems and controls that maintain an appropriate loan loss allowance would likely address the following: - The roles and responsibilities of the registrant's departments and personnel (including the lending function, credit review, financial reporting, internal audit, senior management, audit committee, board of directors, and others, as applicable) who determine or review, as applicable, the loan loss allowance to be reported in the financial statements; FN18 - FN18 Paragraph 9.64 of the Audit Guide discusses "management communication of the need for proper reporting of the allowance." As indicated in that paragraph, the "control environment strongly influences the effectiveness of the system of controls and reflects the overall attitude, awareness, and action of the board of directors and management concerning the importance of control." - The registrant's accounting policies for loans and loan losses, including the policies for charge-offs and recoveries and for estimating the fair value of collateral, where applicable; FN19 - FN19 Paragraph 9.56 of the Audit Guide refers to the documentation, for disclosure purposes, that an entity should include in the notes to the financial statements describing the accounting policies the entity used to estimate its allowance and related provision for loan losses. - The description of the registrant's systematic methodology, which should be consistent with the registrant's accounting policies for determining its loan loss allowance (see Question 4 below for further discussion); FN20 and - FN20 Ibid. As indicated in paragraph 9.56, "\[s\]uch a description should identify the factors that influenced management's judgment (for example, historical losses and existing economic conditions) and may also include discussion of risk elements relevant to particular categories of financial instruments." - The system of internal controls used to ensure that the loan loss allowance process is maintained in accordance with GAAP. FN21 - FN21 See also paragraph 9.64 in the Audit Guide which provides information about specific aspects of effective internal control related to the allowance for loan losses. - The staff normally would expect an internal control system FN22 for the loan loss allowance estimation process to: - - FN22 Ibid. Public companies are required to comply with the books and records provisions of the Exchange Act. Under Sections 13(b)(2) - (7) of the Exchange Act, registrants must make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the registrant. Registrants also must maintain internal accounting controls that are sufficient to provide reasonable assurances that, among other things, transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP. - Include measures to provide assurance regarding the reliability FN23 and integrity of information and compliance with laws, regulations, and internal policies and procedures; FN24 - FN23 Concepts Statement 2, _Qualitative Characteristics of Accounting Information_, provides guidance on "reliability" as a primary quality of accounting information. - FN24 Section 13(b)(2) - (7) of the Exchange Act. - Reasonably assure that the registrant's financial statements are prepared in accordance with GAAP; and - Include a well-defined loan review process. FN25 - FN25 As indicated in paragraph 9.05, item a, in the Audit Guide, a loan loss allowance methodology should "include a detailed and regular analysis of the loan portfolio." Paragraphs 9.06 to 9.13 provide additional information on how creditors traditionally identify and review loans on an individual basis and review or analyze loans on a group or pool basis. - A well-defined loan review process FN26 typically contains: - FN26 Ibid. Additionally, paragraph 9.64 in the Audit Guide provides guidance on the loan review process. As stated in that paragraph, "\[m\]anagement reports summarizing loan activity, renewals, and delinquencies are vital to the timely identification of problem loans." The paragraph further states: "Loan reviews should be conducted by institution personnel who are independent of the underwriting, supervision, and collections functions. The specific lines of reporting depend on the complexity of the institution's organizational structure, but the loan reviewers should report to a high level of management that is independent from the lending process in the institution." - An effective loan grading system that is consistently applied, identifies differing risk characteristics and loan quality problems accurately and in a timely manner, and prompts appropriate administrative actions; FN27 - FN27 Ibid. - Sufficient internal controls to ensure that all relevant loan review information is appropriately considered in estimating losses. This includes maintaining appropriate reports, details of reviews performed, and identification of personnel involved; FN28 and - FN28 Ibid. - Clear formal communication and coordination between a registrant's credit administration function, financial reporting group, management, board of directors, and others who are involved in the loan loss allowance determination or review process, as applicable (e. g., written policies and procedures, management reports, audit programs, and committee minutes). FN29 - FN29 Ibid. - Question 3: The Interpretive Response to Question 3 indicates that the staff normally would expect a registrant's written loan loss allowance policies and procedures to include a description of the registrant's systematic allowance methodology, which should be consistent with its accounting policies for determining its loan loss allowance. What elements of a registrant's loan loss allowance methodology would the staff normally expect to be described in the registrant's written policies and procedures? - Interpretive Response: The staff normally would expect a registrant's written policies and procedures to describe the primary elements of its loan loss allowance methodology, including portfolio segmentation and impairment measurement. The staff normally would expect that, in order for a registrant's loan loss allowance methodology to be effective, the registrant's written policies and procedures would describe the methodology: - For segmenting the portfolio: - How the segmentation process is performed (i. e., by loan type, industry, risk rates, etc.); FN30 - FN30 Paragraph 9.07 in the Audit Guide states that "creditors have traditionally identified loans that are to be evaluated for collectibility by dividing the loan portfolio into different segments. Loans with similar risk characteristics, such as risk classification, past-due status, and type of loan should be grouped together." Paragraph 9.08 provides additional guidance on classifying individual loans and paragraph 9.13 indicates considerations for groups or pools of loans. - When a loan grading system is used to segment the portfolio: - The definitions of each loan grade; - A reconciliation of the internal loan grades to supervisory loan grades, if applicable; and - The delineation of responsibilities for the loan grading system. - For determining and measuring impairment under FASB ASC Subtopic 310-10: FN31 - FN31 See FASB ASC paragraphs [310-10-35-16 through 35-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-16) on recognition of impairment and FASB ASC paragraphs [310-10-35-20 through 35-37](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-20) on measurement of impairment. - The methods used to identify loans to be analyzed individually; - For individually reviewed loans that are impaired, how the amount of any impairment is determined and measured, including: - Procedures describing the impairment measurement techniques available; and - Steps performed to determine which technique is most appropriate in a given situation. - The methods used to determine whether and how loans individually evaluated under FASB ASC Subtopic 310-10, but not considered to be individually impaired, should be grouped with other loans that share common characteristics for impairment evaluation under FASB ASC Subtopic 450-20. FN32 - FN32 See FASB ASC paragraph [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36). - For determining and measuring impairment under FASB ASC Subtopic 450-20: FN33 - - FN33 See FASB ASC paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2) on accrual of loss contingencies and FASB ASC paragraphs [310-10-35-5 through 35-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-5) on collectibility of receivables. - How loans with similar characteristics are grouped to be evaluated for loan collectibility (such as loan type, past-due status, and risk); - How loss rates are determined (e. g., historical loss rates adjusted for environmental factors or migration analysis) and what factors are considered when establishing appropriate time frames over which to evaluate loss experience; and - Descriptions of qualitative factors (e. g., industry, geographical, economic, and political factors) that may affect loss rates or other loss measurements. - 3\. Applying a systematic methodology - measuring and documenting loan losses under FASB ASC Subtopic 310-10 - a. Measuring and documenting loan losses under FASB ASC Subtopic 310-10. - Facts: Approximately one-third of Registrant B's commercial loan portfolio consists of large balance, non-homogeneous loans. Due to their large individual balances, these loans meet the criteria under Registrant B's policies and procedures for individual review for impairment under FASB ASC Subtopic 310-10. - Upon review of the large balance loans, Registrant B determines that certain of the loans are impaired as defined by FASB ASC Subtopic 310-10. FN34 - FN34 FASB ASC paragraph [310-10-35-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-8) provides that a loan is impaired when, based on current information and events, it is probable that all amounts due will not be collected pursuant to the terms of the loan agreement. - Question: For the commercial loans reviewed under FASB ASC Subtopic 310-10 that are individually impaired, how would the staff normally expect Registrant B to measure and document the impairment on those loans? Can it use an impairment measurement method other than the methods allowed by FASB ASC Subtopic 310-10? - Interpretive Response: For those loans that are reviewed individually under FASB ASC Subtopic 310-10 and considered individually impaired, Registrant B must use one of the methods for measuring impairment that is specified by FASB ASC Subtopic 310-10 (that is, the present value of expected future cash flows, the loan's observable market price, or the fair value of collateral). FN35 Accordingly, in the circumstances described above, for the loans considered individually impaired under FASB ASC Subtopic 310-10, it would not be appropriate for Registrant B to choose a measurement method not prescribed by FASB ASC Subtopic 310-10. For example, it would not be appropriate to measure loan impairment by applying a loss rate to each loan based on the average historical loss percentage for all of its commercial loans for the past five years. - FN35 See FASB ASC paragraph [310-10-35-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-22). - The staff normally would expect Registrant B to maintain as sufficient, objective evidence FN36 written documentation to support its measurement of loan impairment under FASB ASC Subtopic 310-10. FN37 If Registrant B uses the present value of expected future cash flows to measure impairment of a loan, it should document the amount and timing of cash flows, the effective interest rate used to discount the cash flows, and the basis for the determination of cash flows, including consideration of current environmental factors FN38 and other information reflecting past events and current conditions. If Registrant B uses the fair value of collateral to measure impairment, the staff normally would expect to find that Registrant B had documented how it determined the fair value, including the use of appraisals, valuation assumptions and calculations, the supporting rationale for adjustments to appraised values, if any, and the determination of costs to sell, if applicable, appraisal quality, and the expertise and independence of the appraiser. FN39 Similarly, the staff normally would expect to find that Registrant B had documented the amount, source, and date of the observable market price of a loan, if that method of measuring loan impairment is used. - FN36 Under GAAS, auditors should obtain "sufficient competent evidential matter" to support its audit opinion. See AU Section 326. The staff normally would expect registrants to maintain such evidential matter for its allowances for loan losses for use by the auditors in conducting their annual audit. - FN37 Paragraph 9.74 in the Audit Guide outlines sources of information, available from management, that the independent accountant should consider in identifying loans that contain high credit risk or other significant exposures and concentrations. These sources of information would also likely include documentation of loan impairment under FASB ASC Subtopic 310-10 or FASB ASC Subtopic 450-20. Additionally, as indicated in paragraphs 9.85 to 9.97 of the Audit Guide, the independent accountant, in conducting an audit, may perform a detailed loan file review for selected loans. A registrant's loan files may contain documentation about borrowers' financial resources and cash flows (see paragraph 9.92) or about the collateral securing the loans, if applicable (see paragraphs 9.94 and 9.95). - FN38 FASB ASC paragraph [310-10-35-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-27) indicates that environmental factors include existing industry, geographical, economic, and political factors. - FN39 See paragraphs 9.94 and 9.95 in the Audit Guide for additional information about documentation of loan collateral. - b. Measuring and documenting loan losses under FASB ASC Subtopic 310-10 for a collateral dependent loan. - Facts: Registrant C has a $10 million loan outstanding to Company X that is secured by real estate, which Registrant C individually evaluates under FASB ASC Subtopic 310-10 due to the loan's size. Company X is delinquent in its loan payments under the terms of the loan agreement. Accordingly, Registrant C determines that its loan to Company X is impaired, as defined by FASB ASC Subtopic 310-10. Because the loan is collateral dependent, Registrant C measures impairment of the loan based on the fair value of the collateral. Registrant C determines that the most recent valuation of the collateral was performed by an appraiser eighteen months ago and, at that time, the estimated value of the collateral (fair value less costs to sell) was $12 million. - Registrant C believes that certain of the assumptions that were used to value the collateral eighteen months ago do not reflect current market conditions and, therefore, the appraiser's valuation does not approximate current fair value of the collateral. - Several buildings, which are comparable to the real estate collateral, were recently completed in the area, increasing vacancy rates, decreasing lease rates, and attracting several tenants away from the borrower. Accordingly, credit review personnel at Registrant C adjust certain of the valuation assumptions to better reflect the current market conditions as they relate to the loan's collateral. FN40 After adjusting the collateral valuation assumptions, the credit review department determines that the current estimated fair value of the collateral, less costs to sell, is $8 million. FN41 Given that the recorded investment in the loan is $10 million, Registrant C concludes that the loan is impaired by $2 million and records an allowance for loan losses of $2 million. - FN40 When reviewing collateral dependent loans, Registrant C may often find it more appropriate to obtain an updated appraisal to estimate the effect of current market conditions on the appraised value instead of internally estimating an adjustment. - FN41 An auditor who uses the work of a specialist, such as an appraiser, in performing an audit in accordance with GAAS should refer to the guidance in SAS 73 (AU Section 336). - Question: What documentation would the staff normally expect Registrant C to maintain to support its determination of the allowance for loan losses of $2 million for the loan to Company X? - Interpretive Response: The staff normally would expect Registrant C to document that it measured impairment of the loan to Company X by using the fair value of the loan's collateral, less costs to sell, which it estimated to be $8 million. FN42 This documentation FN43 should include the registrant's rationale and basis for the $8 million valuation, including the revised valuation assumptions it used, the valuation calculation, and the determination of costs to sell, if applicable. - FN42 See paragraphs 9.94 to 9.95 in the Audit Guide for further information about documentation of loan collateral and associated audit procedures that may be performed by the independent accountant. - FN43 As stated in paragraph 9.14 of the Audit Guide, "\[t\]he approach for determination of the allowance should be well documented." - Because Registrant C arrived at the valuation of $8 million by modifying an earlier appraisal, it should document its rationale and basis for the changes it made to the valuation assumptions that resulted in the collateral value declining from $12 million eighteen months ago to $8 million in the current period. - c. Measuring and documenting loan losses under FASB ASC Subtopic 310-10 - fully collateralized loans. - Question: In the staff's view, what is an example of an acceptable documentation practice for a registrant to adequately support its determination that no allowance for loan losses should be recorded for a group of loans because the loans are fully collateralized? - Interpretive Response: Consider the following fact pattern: Registrant D has $10 million in loans that are fully collateralized by highly rated debt securities with readily determinable market values. The loan agreement for each of these loans requires the borrower to provide qualifying collateral sufficient to maintain a loan-to-value ratio with sufficient margin to absorb volatility in the securities' market prices. Registrant D's collateral department has physical control of the debt securities through safekeeping arrangements. In addition, Registrant D perfected its security interest in the collateral when the funds were originally distributed. On a quarterly basis, Registrant D's credit administration function determines the market value of the collateral for each loan using two independent market quotes and compares the collateral value to the loan carrying value. If there are any collateral deficiencies, Registrant D notifies the borrower and requests that the borrower immediately remedy the deficiency. Due in part to its efficient operation, Registrant D has historically not incurred any material losses on these loans. Registrant D believes these loans are fully-collateralized and therefore does not maintain any loan loss allowance balance for these loans. - Registrant D's management summary of the loan loss allowance includes documentation indicating that, in accordance with its loan loss allowance policy, the collateral protection on these loans has been verified by the registrant, no probable loss has been incurred, and no loan loss allowance is necessary. - Documentation in Registrant D's loan files includes the two independent market quotes obtained each quarter for each loan's collateral amount, the documents evidencing the perfection of the security interest in the collateral, and other relevant supporting documents. Additionally, Registrant D's loan loss allowance policy includes a discussion of how to determine when a loan is considered "fully collateralized" and does not require a loan loss allowance. Registrant D's policy requires the following factors to be considered and its findings concerning these factors to be fully documented: - Volatility of the market value of the collateral; - Recency and reliability of the appraisal or other valuation; - Recency of the registrant's or third party's inspection of the collateral; - Historical losses on similar loans; - Confidence in the registrant's lien or security position including appropriate: - Type of security perfection (e. g., physical possession of collateral or secured filing); - Filing of security perfection (i. e., correct documents and with the appropriate officials); and - Relationship to other liens; and - Other factors as appropriate for the loan type. - In the staff's view, Registrant D's documentation supporting its determination that certain of its loans are fully collateralized, and no loan loss allowance should be recorded for those loans, is acceptable under FRR 28. - 4\. Applying a systematic methodology - measuring and documenting loan losses under FASB ASC Subtopic 450-20 - a. Measuring and documenting loan losses under FASB ASC Subtopic 450-20. - Question 1: In the staff's view, what are some general considerations for a registrant in applying its systematic methodology to measure and document loan losses under FASB ASC Subtopic 450-20? - Interpretive Response: For loans evaluated on a group basis under FASB ASC Subtopic 450-20, the staff believes that a registrant should segment the loan portfolio by identifying risk characteristics that are common to groups of loans. FN44 Registrants typically decide how to segment their loan portfolios based on many factors, which vary with their business strategies as well as their information system capabilities. Regardless of the segmentation method used, the staff normally would expect a registrant to maintain documentation to support its conclusion that the loans in each segment have similar attributes or characteristics. As economic and other business conditions change, registrants often modify their business strategies, which may result in adjustments to the way in which they segment their loan portfolio for purposes of estimating loan losses. The staff normally would expect registrants to maintain documentation to support these segmentation adjustments. FN45 - FN44 Paragraph 9.07 of the Audit Guide indicates that "loans with similar risk characteristics, such as risk classification, past-due status, and type of loan, should be grouped together." - FN45 Segmentation of the loan portfolio is a standard element in a loan loss allowance methodology. As indicated in paragraph 9.05 of the Audit Guide, the loan loss allowance methodology "should be well documented, with clear explanations of the supporting analyses and rationale." - Based on the segmentation of the loan portfolio, a registrant should estimate the FASB ASC Subtopic 450-20 portion of its loan loss allowance. For those segments that require an allowance for loan losses, FN46 the registrant should estimate the loan losses, on at least a quarterly basis, based upon its ongoing loan review process and analysis of loan performance. FN47 The registrant should follow a systematic and consistently applied approach to select the most appropriate loss measurement methods and support its conclusions and rationale with written documentation. FN48 - FN46 An example of a loan segment that does not generally require an allowance for loan losses is a group of loans that are fully secured by deposits maintained at the lending institution. - FN47 FRR 28 refers to a "systematic methodology to be employed each period" in determining provisions and allowances for loan losses. As indicated in FRR 28, the staff normally would expect that the systematic methodology would be documented "to help ensure that all matters affecting loan collectibility will consistently be identified in the detailed \[loan\] review process." - FN48 Ibid. Also, as indicated in paragraph 9.05 of the Audit Guide, the loan loss allowance methodology "should be well documented, with clear explanations of the supporting analyses and rationale." Further, as indicated in paragraph 9.14 of the Audit Guide, "\[t\]he approach for determination of the allowance should be well documented." - Facts: After identifying certain loans for evaluation under FASB ASC Subtopic 310-10, Registrant E segments its remaining loan portfolio into five pools of loans. For three of the pools, it measures loan impairment under FASB ASC Subtopic 450-20 by applying historical loss rates, adjusted for relevant environmental factors, to the pools' aggregate loan balances. For the remaining two pools of loans, Registrant E uses a loss estimation model that is consistent with GAAP to measure loan impairment under FASB ASC Subtopic 450-20. - Question 2: What documentation would the staff normally expect Registrant E to prepare to support its loan loss allowance for its pools of loans under FASB ASC Subtopic 450-20? - Interpretive Response: Regardless of the method used to determine loan loss measurements under FASB ASC 450-20, Registrant E should demonstrate and document that the loss measurement methods used to estimate the loan loss allowance for each segment of its loan portfolio are determined in accordance with GAAP as of the financial statement date. FN49 - FN49 Refer to FASB ASC paragraph [450-20-25-2(b)](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2). Also, as indicated in FASB ASC paragraph [310-10-35-4(c)](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-4), "\[t\]he approach for determination of the allowance shall be well documented and applied consistently from period to period." - As indicated for Registrant E, one method of estimating loan losses for groups of loans is through the application of loss rates to the groups' aggregate loan balances. Such loss rates typically reflect the registrant's historical loan loss experience for each group of loans, adjusted for relevant environmental factors (e. g., industry, geographical, economic, and political factors) over a defined period of time. If a registrant does not have loss experience of its own, it may be appropriate to reference the loss experience of other companies in the same business, provided that the registrant demonstrates that the attributes of the loans in its portfolio segment are similar to those of the loans included in the portfolio of the registrant providing the loss experience. FN50 Registrants should maintain supporting documentation for the technique used to develop their loss rates, including the period of time over which the losses were incurred. If a range of loss is determined, registrants should maintain documentation to support the identified range and the rationale used for determining which estimate is the best estimate within the range of loan losses. FN51 - FN50 Refer to FASB ASC paragraphs [310-10-35-10 through 35-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-10) . - FN51 Registrants should also refer to FASB ASC Subtopic 450-20, which provides guidance for situations in which a range of loss can be reasonably estimated but no single amount within the range appears to be a better estimate than any other amount within the range. Also, paragraph 9.14 of the Audit Guide notes the use of "a method that results in a range of estimates for the allowance," except for impairment measurement under FASB ASC Subtopic 310-10, which is based on a single best estimate and not a range of estimates. Paragraph 9.14 also states that "\[t\]he approach for determination of the allowance should be well documented." - The staff normally would expect that, before employing a loss estimation model, a registrant would evaluate and modify, as needed, the model's assumptions to ensure that the resulting loss estimate is consistent with GAAP. In order to demonstrate consistency with GAAP, registrants that use loss estimation models should typically document the evaluation, the conclusions regarding the appropriateness of estimating loan losses with a model or other loss estimation tool, and the objective support for adjustments to the model or its results. FN52 - FN52 The systematic methodology (including, if applicable, loss estimation models) used to determine loan loss provisions and allowances should be documented in accordance with FRR 28, paragraph 9.05 of the Audit Guide, and FASB ASC Subtopic 310-10. - In developing loss measurements, registrants should consider the impact of current environmental factors and then document which factors were used in the analysis and how those factors affected the loss measurements. Factors that should be considered in developing loss measurements include the following: FN53 - - FN53 Refer to paragraph 9.13 in the Audit Guide. - Levels of and trends in delinquencies and impaired loans; - Levels of and trends in charge-offs and recoveries; - Trends in volume and terms of loans; - Effects of any changes in risk selection and underwriting standards, and other changes in lending policies, procedures, and practices; - Experience, ability, and depth of lending management and other relevant staff; - National and local economic trends and conditions; - Industry conditions; and - Effects of changes in credit concentrations. - For any adjustment of loss measurements for environmental factors, a registrant should maintain sufficient, objective evidence FN54 (a) to support the amount of the adjustment and (b) to explain why the adjustment is necessary to reflect current information, events, circumstances, and conditions in the loss measurements. - FN54 AU 326 describes the "sufficient competent evidential matter" that auditors must consider in accordance with GAAS. - b. Measuring and documenting loan losses under FASB ASC Subtopic 450-20 - adjusting loss rates. - Facts: Registrant F's lending area includes a metropolitan area that is financially dependent upon the profitability of a number of manufacturing businesses. These businesses use highly specialized equipment and significant quantities of rare metals in the manufacturing process. Due to increased low-cost foreign competition, several of the parts suppliers servicing these manufacturing firms declared bankruptcy. The foreign suppliers have subsequently increased prices and the manufacturing firms have suffered from increased equipment maintenance costs and smaller profit margins. - Additionally, the cost of the rare metals used in the manufacturing process increased and has now stabilized at double last year's price. Due to these events, the manufacturing businesses are experiencing financial difficulties and have recently announced downsizing plans. - Although Registrant F has yet to confirm an increase in its loss experience as a result of these events, management knows that it lends to a significant number of businesses and individuals whose repayment ability depends upon the long-term viability of the manufacturing businesses. Registrant F's management has identified particular segments of its commercial and consumer customer bases that include borrowers highly dependent upon sales or salary from the manufacturing businesses. Registrant F's management performs an analysis of the affected portfolio segments to adjust its historical loss rates used to determine the loan loss allowance. In this particular case, Registrant F has experienced similar business and lending conditions in the past that it can compare to current conditions. - Question: How would the staff normally expect Registrant F to document its support for the loss rate adjustments that result from considering these manufacturing firms' financial downturns? FN55 - FN55 This question and response would also apply to other registrant fact patterns in which the registrant adjusts loss rates for environmental factors. - Interpretive Response: The staff normally would expect Registrant F to document its identification of the particular segments of its commercial and consumer loan portfolio for which it is probable that the manufacturing business' financial downturn has resulted in loan losses. In addition, the staff normally would expect Registrant F to document its analysis that resulted in the adjustments to the loss rates for the affected portfolio segments. FN56 The staff normally would expect that, as part of its documentation, Registrant F would maintain copies of the documents supporting the analysis, which may include relevant economic reports, economic data, and information from individual borrowers. - FN56 Paragraph 9.56 of the Audit Guide refers to the documentation, for disclosure purposes, that an entity should include in the notes to the financial statements describing the accounting policies and methodology the entity used to estimate its allowance and related provision for loan losses. As indicated in paragraph 9.56, "\[s\]uch a description should identify the factors that influenced management's judgment (for example, historical losses and existing economic conditions) and may also include discussion of risk elements relevant to particular categories of financial instruments." - Because in this case Registrant F has experienced similar business and lending conditions in the past, it should consider including in its supporting documentation an analysis of how the current conditions compare to its previous loss experiences in similar circumstances. The staff normally would expect that, as part of Registrant F's effective loan loss allowance methodology, it would create a summary of the amount and rationale for the adjustment factor for review by management prior to the issuance of the financial statements. FN57 - FN57 Paragraph 9.64 in the Audit Guide indicates that effective internal control related to the allowance for loan losses should include "accumulation of relevant, sufficient, and reliable data on which to base management's estimate of the allowance." - c. Measuring and documenting loan losses under FASB ASC Subtopic 450-20 estimating losses on loans individually reviewed for impairment but not considered individually impaired. - Facts: Registrant G has outstanding loans of $2 million to Company Y and $1 million to Company Z, both of which are paying as agreed upon in the loan documents. The registrant's loan loss allowance policy specifies that all loans greater than $750,000 must be individually reviewed for impairment under FASB ASC Subtopic 310-10. Company Y's financial statements reflect a strong net worth, good profits, and ongoing ability to meet debt service requirements. In contrast, recent information indicates Company Z's profitability is declining and its cash flow is tight. Accordingly, this loan is rated substandard under the registrant's loan grading system. Despite its concern, management believes Company Z will resolve its problems and determines that neither loan is individually impaired as defined by FASB ASC Subtopic 310-10. - Registrant G segments its loan portfolio to estimate loan losses under FASB ASC Subtopic 450-20. Two of its loan portfolio segments are Segment 1 and Segment 2. The loan to Company Y has risk characteristics similar to the loans included in Segment 1 and the loan to Company Z has risk characteristics similar to the loans included in Segment 2. FN58 - FN58 These groups of loans do not include any loans that have been individually reviewed for impairment under FASB ASC Section 310-10-35, Receivables—Overall—Subsequent Measurement, and determined to be impaired as defined by FASB ASC Section 310-10-35. - In its determination of its loan loss allowance under FASB ASC Subtopic 450-20, Registrant G includes its loans to Company Y and Company Z in the groups of loans with similar characteristics (i. e., Segment 1 for Company Y's loan and Segment 2 for Company Z's loan). FN59 Management's analyses of Segment 1 and Segment 2 indicate that it is probable that each segment includes some losses, even though the losses cannot be identified to one or more specific loans. Management estimates that the use of its historical loss rates for these two segments, with adjustments for changes in environmental factors, provides a reasonable estimate of the registrant's probable loan losses in these segments. - FN59 FASB ASC paragraph [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36) states that if a creditor concludes that an individual loan specifically identified for evaluation is not impaired under FASB ASC Subtopic 310-10, that loan may be included in the assessment of the allowance for loan losses under FASB ASC Subtopic 450-20, but only if specific characteristics of the loan indicate that it is probable that there would be an incurred loss in a group of loans with those characteristics. - Question: How would the staff normally expect Registrant G to adequately document a loan loss allowance under FASB ASC Subtopic 450-20 for these loans that were individually reviewed for impairment but are not considered individually impaired? - Interpretive Response: The staff normally would expect that, as part of Registrant G's effective loan loss allowance methodology, it would document its decision to include its loans to Company Y and Company Z in its determination of its loan loss allowance under FASB ASC Subtopic 450-20. FN60 The staff also normally would expect that Registrant G would document the specific characteristics of the loans that were the basis for grouping these loans with other loans in Segment 1 and Segment 2, respectively. FN61 Additionally, the staff normally would expect Registrant G to maintain documentation to support its method of estimating loan losses for Segment 1 and Segment 2, which typically would include the average loss rate used, the analysis of historical losses by loan type and by internal risk rating, and support for any adjustments to its historical loss rates. FN62 The registrant would typically maintain copies of the economic and other reports that provided source data. - FN60 Paragraph 9.05 in the Audit Guide indicates that an entity's method of estimating credit losses should "include a detailed and regular analysis of the loan portfolio," "consider all loans (whether on an individual or pool-of-loans basis)," "be based on current and reliable data," and "be well documented, with clear explanations of the supporting analyses and rationale." FASB ASC paragraph [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36) provides guidance as to the analysis to be performed when determining whether a loan that is not individually impaired under FASB ASC Subtopic 310-10 should be included in the assessment of the loan loss allowance under FASB ASC Subtopic 450-20. - FN61 Ibid. - FN62 Ibid. - When measuring and documenting loan losses, Registrant G should take steps to prevent layering loan loss allowances. Layering is the inappropriate practice of recording in the allowance more than one amount for the same probable loan loss. Layering can happen when a registrant includes a loan in one segment, determines its best estimate of loss for that loan either individually or on a group basis (after taking into account all appropriate environmental factors, conditions, and events), and then includes the loan in another group, which receives an additional loan loss allowance amount. - 5\. Documenting the results of a systematic methodology - a. Documenting the results of a systematic methodology - general. - Facts: Registrant H has completed its estimation of its loan loss allowance for the current reporting period, in accordance with GAAP, using its established systematic methodology. - Question: What summary documentation would the staff normally expect Registrant H to prepare to support the amount of its loan loss allowance to be reported in its financial statements? - Interpretive Response: The staff normally would expect that, to verify that loan loss allowance balances are presented fairly in accordance with GAAP and are auditable, management would prepare a document that summarizes the amount to be reported in the financial statements for the loan loss allowance. FN63 Common elements that the staff normally would expect to find documented in loan loss allowance summaries include: FN64 - - FN63 FRR 28 states: "\[t\]he specific rationale upon which the \[loan loss allowance and provision\] amount actually reported is based-i. e., the bridge between the findings of the detailed review \[of the loan portfolio\] and the amount actually reported in each period-would be documented to help ensure the adequacy of the reported amount, to improve auditability, and to serve as a benchmark for exercise of prudent judgment in future periods." - FN64 See also paragraph 9.14 of the Audit Guide. - The estimate of the probable loss or range of loss incurred for each category evaluated (e. g., individually evaluated impaired loans, homogeneous pools, and other groups of loans that are collectively evaluated for impairment); - The aggregate probable loss estimated using the registrant's methodology; - A summary of the current loan loss allowance balance; - The amount, if any, by which the loan loss allowance balance is to be adjusted; FN65 and - FN65 Subsequent to adjustments, the staff normally would expect that there would be no material differences between the consolidated loss estimate, as determined by the methodology, and the final loan loss allowance balance reported in the financial statements. Registrants should refer to SAB 99 and SAS 89 and their amendments to AU Section 310. - Depending on the level of detail that supports the loan loss allowance analysis, detailed subschedules of loss estimates that reconcile to the summary schedule. - Generally, a registrant's review and approval process for the loan loss allowance relies upon the data provided in these consolidated summaries. There may be instances in which individuals or committees that review the loan loss allowance methodology and resulting allowance balance identify adjustments that need to be made to the loss estimates to provide a better estimate of loan losses. These changes may be due to information not known at the time of the initial loss estimate (e. g., information that surfaces after determining and adjusting, as necessary, historical loss rates, or a recent decline in the marketability of property after conducting a FASB ASC Subtopic 310-10 valuation based upon the fair value of collateral). It is important that these adjustments are consistent with GAAP and are reviewed and approved by appropriate personnel. FN66 Additionally, it would typically be appropriate for the summary to provide each subsequent reviewer with an understanding of the support behind these adjustments. Therefore, the staff normally would expect management to document the nature of any adjustments and the underlying rationale for making the changes. FN67 - FN66 Paragraph 9.64 in the Audit Guide indicates that effective internal control related to the allowance for loan losses should include "adequate review and approval of the allowance estimates by the individuals specified in management's written policy." - FN67 See the guidance in paragraph 9.14 of the Audit Guide ("\[t\]he approach for determination of the allowance should be well documented") and in FRR 28 ("the specific rationale upon which the amount actually reported in each individual period is based would be documented"). - The staff also normally would expect this documentation to be provided to those among management making the final determination of the loan loss allowance amount. FN68 - FN68 Ibid. - b. Documenting the results of a systematic methodology allowance adjustments. - Facts: Registrant I determines its loan loss allowance using an established systematic process. At the end of each reporting period, the accounting department prepares a summary schedule that includes the amount of each of the components of the loan loss allowance, as well as the total loan loss allowance amount, for review by senior management, including the Credit Committee. Members of senior management meet to discuss the loan loss allowance. During these discussions, they identify changes that are required by GAAP to be made to certain of the loan loss allowance estimates. As a result of the adjustments made by senior management, the total amount of the loan loss allowance changes. However, senior management (or its designee) does not update the loan loss allowance summary schedule to reflect the adjustments or reasons for the adjustments. When performing their audit of the financial statements, the independent accountants are provided with the original loan loss allowance summary schedule reviewed by senior management, as well as a verbal explanation of the changes made by senior management when they met to discuss the loan loss allowance. - Question: In the staff's view, are Registrant I's documentation practices related to the balance of its loan loss allowance in compliance with existing documentation guidance in this area? - Interpretive Response: No. A registrant should maintain supporting documentation for the loan loss allowance amount reported in its financial statements. FN69 As illustrated above, there may be instances in which loan loss allowance reviewers identify adjustments that need to be made to the loan loss estimates. The staff normally would expect the nature of the adjustments, how they were measured or determined, and the underlying rationale for making the changes to the loan loss allowance balance to be documented. FN70 The staff also normally would expect appropriate documentation of the adjustments to be provided to management for review of the final loan loss allowance amount to be reported in the financial statements. This documentation should also be made available to the independent accountants. If changes frequently occur during management or credit committee reviews of the loan loss allowance, management may find it appropriate to analyze the reasons for the frequent changes and to reassess the methodology the registrant uses. FN71 - FN69 Ibid. - FN70 Ibid. - FN71 As outlined in paragraph 9.64 of the Audit Guide, effective internal controls related to the allowance for loan losses should include adequate review and approval of allowance estimates, including review of sources of relevant information, review of development of assumptions, review of reasonableness of assumptions and resulting estimates, and consideration of changes in previously established methods to arrive at the allowance. - 6\. Validating a systematic methodology - Question: What is the staff's guidance to a registrant on validating, and documenting the validation of, its systematic methodology used to estimate loan loss allowances? - Interpretive Response: The staff believes that a registrant's loan loss allowance methodology is considered valid when it accurately estimates the amount of loss contained in the portfolio. Thus, the staff normally would expect the registrant's methodology to include procedures that adjust loan loss estimation methods to reduce differences between estimated losses and actual subsequent charge-offs, as necessary. To verify that the loan loss allowance methodology is valid and conforms to GAAP, the staff believes it is appropriate for management to establish internal control policies, FN72 appropriate for the size of the registrant and the type and complexity of its loan products. These policies may include procedures for a review, by a party who is independent of the allowance for loan losses estimation process, of the allowance for loan losses methodology and its application in order to confirm its effectiveness. - FN72 Ibid. - In practice, registrants employ numerous procedures when validating the reasonableness of their loan loss allowance methodology and determining whether there may be deficiencies in their overall methodology or loan grading process. Examples are: - A review of trends in loan volume, delinquencies, restructurings, and concentrations. - A review of previous charge-off and recovery history, including an evaluation of the timeliness of the entries to record both the charge-offs and the recoveries. - A review by a party that is independent of the loan loss allowance estimation process. This often involves the independent party reviewing, on a test basis, source documents and underlying assumptions to determine that the established methodology develops reasonable loss estimates. - An evaluation of the appraisal process of the underlying collateral. This may be accomplished by periodically comparing the appraised value to the actual sales price on selected properties sold. - It is the staff's understanding that, in practice, management usually supports the validation process with the workpapers from the loan loss allowance review function. Additional documentation often includes the summary findings of the independent reviewer. The staff normally would expect that, if the methodology is changed based upon the findings of the validation process, documentation that describes and supports the changes would be maintained. FN73 - FN73 See paragraph 9.64 of the Audit Guide.