# ASC 310-20-05: Receivables — Nonrefundable Fees and Other Costs — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/20/#05-overview-and-background) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:de4ea32cf4a086b4bd506797e9414decf53f9d2a48b32801f77b351985eeb19a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/20/#05-overview-and-background) SEC content: no ##### [310-20-05-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:3dadbf37c781947446bb9df0d38d8e6913fe6193f213c736842ff57337b53c2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the recognition, measurement, derecognition, and disclosure of nonrefundable fees, origination costs, and acquisition costs associated with [lending activities](https://asc.understandingaccounting.org/glossary/l/#lending-activities "Lending, committing to lend, refinancing or restructuring loans, arranging standby letters of credit, syndicating loans, and leasing activities are lending activities.") 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. This definition encompasses loans accounted for as debt securities.") purchases. #### Nonrefundable Fees and Costs ##### [310-20-05-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:780649a3f15def2b2479abf5cdd73e2f4881432d0dcb506b6e7a3ad2f3b3319e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 nonrefundable fees and costs associated with lending activities and loan purchases. The lender's activities that precede the disbursement of funds can generally be distinguished between the following: 1. a Efforts to identify and attract potential borrowers 2. b Efforts necessary to originate a loan or loan commitment after a potential borrower requests a loan or loan commitment. Nonrefundable fees have many different names in practice, such as origination fees, points, placement fees, [commitment fees](https://asc.understandingaccounting.org/glossary/c/#commitment-fees "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."), application fees, management fees, restructuring fees, and syndication fees, but, for purposes of this Subtopic, they are referred to as [loan origination fees](https://asc.understandingaccounting.org/glossary/l/#loan-origination-fees "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."), commitment fees, or syndication fees. #### Credit Card Arrangements ##### [310-20-05-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:50a2478c0d8810751fa3c463e11c64527579cfe6b5461598bc11438602ae650b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/c/#credit-card-fees "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.")) are viewed in part as being loan commitment fees. 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. ##### [310-20-05-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:7c21163f9f025692c8ced20623fe0d6850a8dab6211f6e0aea3310433b7913d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 accounts are acquired individually (one at a time) by paying an amount for each approved credit card agreement. The third party may be any of the following: 1. a A direct marketing specialist 2. b An affinity group (a professional, cultural, or other organization) 3. c A cobrander (an airline entity, automobile manufacturing entity, hotel entity, or other commercial or retailing entity). 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.