# ASC 310-20-15: Receivables — Nonrefundable Fees and Other Costs — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/20/#15-scope-and-scope-exceptions) 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): 2026-09-09T23:25:50.283Z to 2026-09-09T23:25:50.283Z Record version: sha256:0ef121ca62319e37ca2d965479e0fcaa99869726bd30a95760fed272235d833e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/20/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [310-20-15-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:50.283Z to 2026-09-09T23:25:50.283Z Record version: sha256:143322d503c0870e9bdba76cb792f0b3ef67073e3c88ece7d91877f7da9c1bf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to entities as follows: 1. a All paragraphs apply to both lenders and purchasers. 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). #### Transactions ##### [310-20-15-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:50.283Z to 2026-09-09T23:25:50.283Z Record version: sha256:1b743f15218edb90cf6063e1ab75eb864ed237a4aa2a6939b5e3f4973d991001 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic explicitly includes the following transactions: 1. a The recognition and the balance sheet classification of nonrefundable fees and 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.") 2. b The accounting for discounts, premiums, and [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.") associated with the purchase of [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. This definition encompasses loans accounted for as debt securities.") and other debt securities such as corporate bonds, Treasury notes and bonds, groups of loans, and loan-backed securities (such as pass-through certificates, collateralized mortgage obligations, and other so-called securitized loans) 3. c Loans designated as a hedged item in a [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.") hedge under Topic 815 (see paragraphs [815-25-35-10 through 35-11](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-10) ). ##### [310-20-15-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:50.283Z to 2026-09-09T23:25:50.283Z Record version: sha256:9ecf5641f7ada00c23cd94239b19f005f6b36f4ac3144a9eaaa59adbcdaa5129 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following transactions: 1. a Loan origination or commitment fees that are refundable; however, the guidance in this Subtopic does apply when such fees subsequently become nonrefundable. 2. b Costs that are incurred by the lender in transactions with independent third parties if the lender bills those costs directly to the borrower. 3. c Nonrefundable fees and costs associated with originating or acquiring loans that are carried at fair value if the changes in fair value are included in earnings of a business entity or change in net assets of a not-for-profit entity (NFP). The exclusion provided in this paragraph and the preceding paragraph applies to nonrefundable fees and costs associated with originating loans that are reported at fair value and premiums or discounts associated with acquiring loans that are reported at fair value. Loans that are reported at amortized cost basis or the lower of amortized cost basis or fair value, loans or debt securities reported at fair value with changes in fair value reported in other comprehensive income (includes financial assets subject to prepayment as defined in paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2), and debt securities classified as available-for-sale under Topic 320), and loans that have a market interest rate, or adjust to a market interest rate, are not considered to be loans carried at fair value. 4. d Fees and costs related to a commitment to originate, sell, or purchase loans that is accounted for as a derivative instrument under Subtopic 815-10. 5. e Fees and costs related to a standby commitment to purchase loans if the settlement date of that commitment is not within a reasonable period or the entity does not have the intent and ability to accept delivery without selling assets. For guidance on fees and costs related to such a commitment, see paragraph [310-10-30-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-7). #### Instruments ##### [310-20-15-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:50.283Z to 2026-09-09T23:25:50.283Z Record version: sha256:efcbf4beed50545109679df3bed0770d69cab022b1e1245075d5790e06ff1d9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table outlines the applicability of this Subtopic to various types of assets. - ![](https://asc.understandingaccounting.org/asc-img/GUID-14B5F62D-172B-4678-8FCB-CB9437C1BBE3-low.gif) Types of Assets Basis of Accounting Applicability of This Subtopic Loans or debt securities held in an investment portfolio Historical or amortized cost basis(b) Yes Loans held for sale Lower of amortized cost basis or fair value(b) Yes Loans or debt securities held in trading accounts by certain financial institutions "Fair value, changes in value are included in earnings" No "Loans or debt securities, available-for-sale(a)" "Fair value, changes in value reported in other comprehensive income" Yes (a) This includes financial assets subject to prepayment as defined in paragraph 310-10-35-45 and debt securities classified as available for sale under Topic 320. (b) "Entities may choose, at specified election dates, to measure eligible items at fair value (the fair value option). See Section 825-10-15 for guidance on the scope of the Fair Value Option Subsections of the Financial Instruments Topic." #### Other Considerations ##### [310-20-15-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:50.283Z to 2026-09-09T23:25:50.283Z Record version: sha256:f2ce4caddd86bb5fc1a2468e2507533fe21817ca21df30869ae489c7b788b593 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance in this Subtopic shall be applied to individual loan contracts. Aggregation of similar loans for purposes of recognizing net fees or costs and purchase premiums or discounts is permitted if the provisions of paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26) are met or if the resulting recognition does not differ materially from the amount that would have been recognized on an individual loan-by-loan basis.