{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/20/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"310","topic_title":"Receivables","subtopic":"310-20","subtopic_title":"Nonrefundable Fees and Other Costs","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"310-20-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance on the recognition, measurement, derecognition, and disclosure of nonrefundable fees, origination costs, and acquisition costs associated with <a href=\"/glossary/l/#lending-activities\" class=\"term\" title=\"Lending, committing to lend, refinancing or restructuring loans, arranging standby letters of credit, syndicating loans, and leasing activities are lending activities.\"><span>lending activities</span></a> and <a href=\"/glossary/l/#loan\" class=\"term\" title=\"A contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in the creditor's statement of financial position. Examples include but are not limited to accounts receivable (with terms exceeding one year) and notes receivable. This definition encompasses loans accounted for as debt securities.\"><span>loan</span></a> purchases.</div></div>","snippet":"This Subtopic provides guidance on the recognition, measurement, derecognition, and disclosure of nonrefundable fees, origination costs, and acquisition costs associated with lending activities and loan purchases.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3dadbf37c781947446bb9df0d38d8e6913fe6193f213c736842ff57337b53c2e","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50a31dd7546d9647608b43a1a058d6d30479c215bf43ecc6744092052ffb9429","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}},{"block":null,"heading":"Nonrefundable Fees and Costs","paragraphs":[{"citation":"310-20-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_5E4251C6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity may acquire a loan by lending (originating the loan) or by purchasing (acquiring a loan from a party other than the borrower). </span></span><span class=\"sfragment\" id=\"sfr_5E42532E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic establishes standards of financial accounting and reporting for nonrefundable fees and costs associated with lending activities and loan purchases. </span></span><span class=\"sfragment\" id=\"sfr_5E42545B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The lender's activities that precede the disbursement of funds can generally be distinguished between the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_5E425574-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Efforts to identify and attract potential borrowers </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_5E425690-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Efforts necessary to originate a loan or loan commitment after a potential borrower requests a loan or loan commitment. </span></span></div></li></ol><span class=\"sfragment\" id=\"sfr_5E4257BD-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Nonrefundable fees have many different names in practice, such as origination fees, points, placement fees, <a href=\"/glossary/c/#commitment-fees\" class=\"term\" title=\"Fees charged for entering into an agreement that obligates the entity to make or acquire a loan or to satisfy an obligation of the other party under a specified condition. Commitment fees include fees for letters of credit and obligations to purchase a loan or group of loans and pass-through certificates.\"><span>commitment fees</span></a>, application fees, management fees, restructuring fees, and syndication fees, but, for purposes of this Subtopic, they are referred to as <a href=\"/glossary/l/#loan-origination-fees\" class=\"term\" title=\"Origination fees consist of all of the following: Fees that are being charged to the borrower as prepaid interest or to reduce the loan's nominal interest rate, such as interest buy-downs (explicit yield adjustments) Fees to reimburse the lender for origination activities Other fees charged to the borrower that relate directly to making the loan (for example, fees that are paid to the lender as compensation for granting a complex loan or agreeing to lend quickly) Fees that are not conditional on a loan being granted by the lender that receives the fee but are, in substance, implicit yield adjustments because a loan is granted at rates or terms that would not have otherwise been considered absent the fee (for example, certain syndication fees addressed in paragraph 310-20-25-19) Fees charged to the borrower in connection with the process of originating, refinancing, or restructuring a loan. This term includes, but is not limited to, points, management, arrangement, placement, application, underwriting, and other fees pursuant to a lending or leasing transaction and also includes syndication and participation fees to the extent they are associated with the portion of the loan retained by the lender.\"><span>loan origination fees</span></a>, commitment fees, or syndication fees. </span></span></div></div>","snippet":"An entity may acquire a loan by lending (originating the loan) or by purchasing (acquiring a loan from a party other than the borrower). This Subtopic establishes standards of financial accounting and reporting for nonre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:780649a3f15def2b2479abf5cdd73e2f4881432d0dcb506b6e7a3ad2f3b3319e","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:61247817b027aa56bfeaf4156b351b7266d6eca3677e7651c3ce86f864b0913c","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}},{"block":null,"heading":"Credit Card Arrangements","paragraphs":[{"citation":"310-20-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_5E425931-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Available lines of credit under credit card and similar charge card arrangements are loan commitments, and fees collected in connection with such cards (<a href=\"/glossary/c/#credit-card-fees\" class=\"term\" title=\"The periodic uniform fees that entitle cardholders to use credit cards. The amount of such fees generally is not dependent upon the level of credit available or frequency of usage. Typically the use of credit cards facilitates the cardholder's payment for the purchase of goods and services on a periodic, as-billed basis (usually monthly), involves the extension of credit, and, if payment is not made when billed, involves imposition of interest or finance charges. Credit card fees include fees received in similar arrangements, such as charge card and cash card fees.\"><span>credit card fees</span></a>) are viewed in part as being loan commitment fees. </span></span><span class=\"sfragment\" id=\"sfr_5E425A56-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Entities issue credit cards, debit cards, bank charge cards, and other similar cards (collectively, credit cards) with a variety of terms. An issuer may charge an origination fee in connection with the issuance of a credit card and periodic renewal fees for the continued extension of credit card privileges. As part of a promotion to attract new cardholders or retain existing cardholders, some of those issuers may waive the payment of credit card fees for the initial use period or in some cases for a longer period. Other entities issue credit cards that do not require the payment of any fees for the use of the credit card. </span></span></div></div>","snippet":"Available lines of credit under credit card and similar charge card arrangements are loan commitments, and fees collected in connection with such cards (credit card fees) are viewed in part as being loan commitment fees.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50a2478c0d8810751fa3c463e11c64527579cfe6b5461598bc11438602ae650b","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}},{"citation":"310-20-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_5E425B67-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity (credit card issuer) may acquire credit card accounts by paying an amount to a third party. </span></span><span class=\"sfragment\" id=\"sfr_5E425C7F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The credit card accounts typically have no outstanding receivable balances at the time acquired. </span></span><span class=\"sfragment\" id=\"sfr_5E425D8C-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The credit card accounts are acquired individually (one at a time) by paying an amount for each approved credit card agreement. </span></span><span class=\"sfragment\" id=\"sfr_5E425E9F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> The third party may be any of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_5E425FFF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A direct marketing specialist </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_5E42611A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An affinity group (a professional, cultural, or other organization) </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_5E426229-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A cobrander (an airline entity, automobile manufacturing entity, hotel entity, or other commercial or retailing entity). </span></span><span class=\"sfragment\" id=\"sfr_5E426330-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Under a cobranding arrangement, the third party's name is included on the credit card, and the third party has a continuing obligation to provide goods or services, such as product discounts, to cardholders for an extended period that directly or indirectly benefits the credit card issuer. </span></span></div></li></ol></div></div>","snippet":"An entity (credit card issuer) may acquire credit card accounts by paying an amount to a third party. The credit card accounts typically have no outstanding receivable balances at the time acquired. The credit card accou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c21163f9f025692c8ced20623fe0d6850a8dab6211f6e0aea3310433b7913d4","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1af0f75603bf54e4b5cdec2415ba2ebea5545c0ce2aaf7c1a3de6cc9913bc886","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de4ea32cf4a086b4bd506797e9414decf53f9d2a48b32801f77b351985eeb19a","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de4ea32cf4a086b4bd506797e9414decf53f9d2a48b32801f77b351985eeb19a","downloaded_from":"2026-09-09T23:25:47.432Z","last_downloaded_at":"2026-09-09T23:25:47.432Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481787","source_sha256":"cf3258e7467634ecb1afb441fcd71029c107a97d00f534b2852e462af2f8c4de"}}