{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/20/#30-initial-measurement","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":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"310-20-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Section addresses the measurement of certain types of lending fees and costs, specifically:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><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> and costs</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Syndication fees</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Purchase of a <a href=\"/glossary/l/#loan\" class=\"term\" title=\"A contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in the creditor's statement of financial position. Examples include but are not limited to accounts receivable (with terms exceeding one year) and notes receivable. This definition encompasses loans accounted for as debt securities.\"><span>loan</span></a> or group of loans.</div></li></ol></div></div>","snippet":"This Section addresses the measurement of certain types of lending fees and costs, specifically:\n(a) Loan origination fees and costs\n(b) Syndication fees\n(c) Purchase of a loan or group of loans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8865c90c78a9e34e0f946042beef70340532b5ae6b0c097c2ae944c1c3f02302","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c526b8c5bf9eedd8b37afe031570a4c4a39baabe7741fe2207a4d58d7b634abe","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}},{"block":null,"heading":"Loan Origination Fees and Costs","paragraphs":[{"citation":"310-20-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_5E95CC7A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Loan origination fees and related <a href=\"/glossary/d/#direct-loan-origination-costs\" class=\"term\" title=\"Direct loan origination costs represent costs associated with originating a loan. Direct loan origination costs of a completed loan shall include only the following: Incremental direct costs of loan origination incurred in transactions with independent third parties for that loan Certain costs directly related to specified activities performed by the lender for that loan. Those activities include all of the following: Evaluating the prospective borrower's financial condition Evaluating and recording guarantees, collateral, and other security arrangements Negotiating loan terms Preparing and processing loan documents Closing the transaction. The costs directly related to those activities shall include only that portion of the employees' total compensation and payroll-related fringe benefits directly related to time spent performing those activities for that loan and other costs related to those activities that would not have been incurred but for that loan. See Section 310-20-55 for examples of items.\"><span>direct loan origination costs</span></a> for a given loan shall be offset and only the net amount shall be deferred. </span></span></div></div>","snippet":"Loan origination fees and related direct loan origination costs for a given loan shall be offset and only the net amount shall be deferred.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92ca7fc9a2d412f544ec73eb60f61e5e77d76a7e816d08a8b2ce7f08115dab06","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}},{"citation":"310-20-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_5E95CD89-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For increasing interest rate loans, the recorded net investment in a loan may exceed the amount by which the borrower could settle the obligation </span></span><span class=\"sfragment\" id=\"sfr_5E95CE6A-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">but only if the excess results from a purchase premium (loans purchased) or loan costs that qualify for deferral in excess of loan fees (loans originated). </span></span></div></div>","snippet":"For increasing interest rate loans, the recorded net investment in a loan may exceed the amount by which the borrower could settle the obligation but only if the excess results from a purchase premium (loans purchased) o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:593edc5cd217ad01f97be9eeeed44685dfb0cd144a912fbea310524eb01f046d","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eecfa6507516ae63f47d5b817aeffb683d47c50c1c2204e455489982aac79def","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}},{"block":null,"heading":"Syndication Fees","paragraphs":[{"citation":"310-20-30-4","para":"30-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_5E95CF96-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/310/20/#310-20-25-19\" class=\"xref\">310-20-25-19</a> explains that, if the yield on the portion of the loan retained by the syndicator is less than the average yield to the other syndication participants after considering the fees passed through by the syndicator, the syndicator shall defer a portion of the syndication fee to produce a yield on the portion of the loan retained that is not less than the average yield on the loans held by the other syndication participants. </span></span></div></div>","snippet":"Paragraph 310-20-25-19 explains that, if the yield on the portion of the loan retained by the syndicator is less than the average yield to the other syndication participants after considering the fees passed through by t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be0ac2b4f122a1fb89657576e7f136be54489506e953f9aaff98d4844e4da613","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3640cd67b9f9e66767ac080518433561efef8b1e956756a428cafdac57d3e3fa","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}},{"block":null,"heading":"Purchase of a Loan or Group of Loans","paragraphs":[{"citation":"310-20-30-5","para":"30-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_5E95D085-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The initial investment in a purchased loan or group of loans shall include the amount paid to the seller plus any fees paid or less any fees received. </span></span><span class=\"sfragment\" id=\"sfr_5E95D183-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In applying the provisions of this Subtopic to loans purchased as a group, the purchaser may allocate the initial investment to the individual loans or may account for the initial investment in the aggregate. </span></span></div></div>","snippet":"The initial investment in a purchased loan or group of loans shall include the amount paid to the seller plus any fees paid or less any fees received. In applying the provisions of this Subtopic to loans purchased as a g…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f4f4cd8576e544b000966f7ff002556eecc88c6c6cc713a0d58a2061a8f46cf","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cdd21a2a0dd0d858bae8260807c4c092e5f1bfb0ddd3635d7055af8a4c73c184","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:709b21fa85ae88809df0614c79d8fa521539527f2d8c6406de0bee94fa72c8cf","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:709b21fa85ae88809df0614c79d8fa521539527f2d8c6406de0bee94fa72c8cf","downloaded_from":"2026-09-09T23:25:57.651Z","last_downloaded_at":"2026-09-09T23:25:57.651Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481682","source_sha256":"8e35d6960486eafcd304833f5b1f52ea0bc487d2b348fd2fd7f735e783f93622"}}