{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/20/#40-derecognition","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":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Commitment Fees","paragraphs":[{"citation":"310-20-40-1","para":"40-1","html":"
Except as set forth in paragraph 310-20-35-3(a) through (b), fees received for a commitment to originate or purchase a loan or group of loans shall be, if the commitment expires unexercised, recognized in income upon expiration of the commitment.
","snippet":"Except as set forth in paragraph 310-20-35-3(a) through (b), fees received for a commitment to originate or purchase a loan or group of loans shall be, if the commitment expires unexercised, recognized in income upon exp…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70e77048b5bd1e5a431c5a126ec9546f92ce4a8fd96f676078b0599d5db6ac88","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:869e8bd77c91c929e1dfe904eacc4355244c31893e528f0c9c56927ef479a749","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"block":null,"heading":"Receipt of Assets in Full Satisfaction of a Receivable","paragraphs":[{"citation":"310-20-40-2","para":"40-2","html":"
A creditor that receives from a debtor in full satisfaction of a receivable either or both of the following shall account for those assets (including an equity interest) at their fair value at the time of the restructuring:
  1. a
    Receivables from third parties, real estate, or other assets
  2. b
    Shares of stock or other evidence of an equity interest in the debtor.
","snippet":"A creditor that receives from a debtor in full satisfaction of a receivable either or both of the following shall account for those assets (including an equity interest) at their fair value at the time of the restructuri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51c991165b97e568569c4dddeb87564c2e0665f7af9f05a9c4ed3303cb29a399","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"citation":"310-20-40-3","para":"40-3","html":"
A creditor that receives long-lived assets that will be sold from a debtor in full satisfaction of a receivable shall account for those assets at their fair value less cost to sell, as that term is used in paragraph 360-10-35-43. The excess of the amortized cost basis satisfied over the fair value of assets received (less cost to sell, if required above) is a loss that shall be recognized. For purposes of this paragraph, losses, to the extent they are not offset against allowances for uncollectible amounts or other valuation accounts, shall be included in measuring net income for the period. The amortized cost basis is used in paragraphs
310-40-25-1 through 25-2
; 310-40-35-7;
310-40-40-2 through 40-8
; and 310-40-50-1 instead of carrying amount of the receivable because the latter is net of an allowance for estimated uncollectible amounts or other valuation account, if any, while the former is not.
","snippet":"A creditor that receives long-lived assets that will be sold from a debtor in full satisfaction of a receivable shall account for those assets at their fair value less cost to sell, as that term is used in paragraph 360-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f54e9cc03a4c36c36f160ebd2d704dcd04b860788b5ad342d097dca4eea7d10","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"citation":"310-20-40-4","para":"40-4","html":"
That guidance is not intended to preclude using the fair value of the receivable satisfied if more clearly evident than the fair value of the assets received in full satisfaction of a receivable.
","snippet":"That guidance is not intended to preclude using the fair value of the receivable satisfied if more clearly evident than the fair value of the assets received in full satisfaction of a receivable.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64d9501b996c588c2bf5c6f9f4eebe252570bc713109bd311ba9c1b3272444e8","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"citation":"310-20-40-5","para":"40-5","html":"
A creditor shall account for assets received in satisfaction of a receivable the same as if the assets had been acquired for cash.
","snippet":"A creditor shall account for assets received in satisfaction of a receivable the same as if the assets had been acquired for cash.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b8b07b3cc215c94e8cfb3a763322216b1e6fd13a1826b425a54bbb9dc00851d","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8e7b41d37d9bde5df5bb2838abeb2aecd6390ef147b8c8ac6f7ca7a418133238","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"block":null,"heading":"Foreclosure","paragraphs":[{"citation":"310-20-40-6","para":"40-6","html":"
A restructuring that is in substance a repossession or foreclosure by the creditor, that is, the creditor receives physical possession of the debtor's assets regardless of whether formal foreclosure proceedings take place, or in which the creditor otherwise obtains one or more of the debtor's assets in place of all or part of the receivable, shall be accounted for according to the provisions of paragraphs 310-20-35-12C,
310-20-40-2 through 40-4
, and, if appropriate, 310-20-40-9. See paragraphs
310-20-40-7 through 40-8
for the classification and measurement of certain government-guaranteed mortgage loans. For guidance on when a creditor shall be considered to have received physical possession (resulting from an in substance repossession or foreclosure) of residential real estate property collateralizing a consumer mortgage loan, see paragraph 310-20-55-18F.
","snippet":"A restructuring that is in substance a repossession or foreclosure by the creditor, that is, the creditor receives physical possession of the debtor's assets regardless of whether formal foreclosure proceedings take plac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:adf6c1da9a8491db15eba9522d5fa372391ddd64375521e837395af55e57137d","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:509a3f61c980e358c72be5747a373599bd6f04729422aed5580e7a2d3c1b0d71","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"block":null,"heading":"Classification and Measurement of Certain Government-Guaranteed Mortgage Loans upon Foreclosure","paragraphs":[{"citation":"310-20-40-7","para":"40-7","html":"
A guaranteed mortgage loan receivable shall be derecognized and a separate other receivable shall be recognized upon foreclosure (that is, when a creditor receives physical possession of real estate property collateralizing a mortgage loan in accordance with the guidance in paragraph 310-20-40-6) if the following conditions are met:
  1. a
    The loan has a government guarantee that is not separable from the loan before foreclosure.
  2. b
    At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim. A creditor would be considered to have the ability to recover under the guarantee at the time of foreclosure if the creditor determines that it has maintained compliance with the conditions and procedures required by the guarantee program.
  3. c
    At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed.
","snippet":"A guaranteed mortgage loan receivable shall be derecognized and a separate other receivable shall be recognized upon foreclosure (that is, when a creditor receives physical possession of real estate property collateraliz…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a6e785b401e8411e5266e7e46f817316c6601c260843d5e6d8787f4ee3254b1","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"citation":"310-20-40-8","para":"40-8","html":"
Upon foreclosure, the separate other receivable shall be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor.
","snippet":"Upon foreclosure, the separate other receivable shall be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36acc163c2a7609e987b12db76677b37de3a71d634f113df3e0df9a293bb4b1f","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0db9b9f98d933d367825decc6cb88a4ba1c4437ebf747a02feeae1fe685fb89a","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"block":null,"heading":"Sale of Assets from a Loan Refinancing or Restructuring","paragraphs":[{"citation":"310-20-40-9","para":"40-9","html":"
In the case of a loan refinancing or restructuring deemed to be a new loan in accordance with paragraphs
310-20-35-9 through 35-11
, a receivable from the sale of assets previously obtained in a loan refinancing or restructuring shall be accounted for according to Subtopic 835-30 regardless of whether the assets were obtained in satisfaction (full or partial) of a receivable to which that Topic was not intended to apply. A difference, if any, between the amount of the new receivable and the carrying amount of the assets sold is a gain or loss on sale of assets.
","snippet":"In the case of a loan refinancing or restructuring deemed to be a new loan in accordance with paragraphs 310-20-35-9 through 35-11, a receivable from the sale of assets previously obtained in a loan refinancing or restru…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed44aca4648692d7d20f54aac3c7e25680223721a8bdbd533cccc3c8c5b3d3df","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64728c433a19fe376168b99acb993900c07b7a7e401e4814ceb2c9f7b67c300a","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"block":null,"heading":"Cost Basis of Debt Security Received in a Restructuring","paragraphs":[{"citation":"310-20-40-10","para":"40-10","html":"
The initial cost basis of a debt security of the original debtor received as part of a debt restructuring shall be the security's fair value at the date of the restructuring. Any excess of the fair value of the security received over the net carrying amount of the loan shall be recorded as a recovery on the loan. Any excess of the net carrying amount of the loan over the fair value of the security received shall be recorded as a charge-off to the allowance for credit losses. Subsequent to the restructuring, the security received shall be accounted for according to the provisions of Topic 320.
","snippet":"The initial cost basis of a debt security of the original debtor received as part of a debt restructuring shall be the security's fair value at the date of the restructuring. Any excess of the fair value of the security …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ff8a36b4a5859876c053bf55f9e6ecc9bd5791f550ea617bdbd15d51d3aad0f","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"citation":"310-20-40-11","para":"40-11","html":"
A security received in a restructuring in settlement of a claim for only the past-due interest on a loan shall be measured at the security's fair value at the date of the restructuring and accounted for in a manner consistent with the entity's policy for recognizing cash received for past-due interest. Subsequent to the restructuring, the security received shall be accounted for according to the provisions of Topic 320.
","snippet":"A security received in a restructuring in settlement of a claim for only the past-due interest on a loan shall be measured at the security's fair value at the date of the restructuring and accounted for in a manner consi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:208b40e0d211acb61187a2989789a1a201e871043e58e8dd9e18c601e7e63e6b","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e2ef95246218f9a97f2328a4a8c7a8525606cf62b56d4bb65dee56b86620be02","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},{"block":null,"heading":"Cost Basis of a Long-Lived Asset Received in Full Satisfaction of a Receivable","paragraphs":[{"citation":"310-20-40-12","para":"40-12","html":"
A valuation allowance for a loan collateralized by a long-lived asset shall not be carried over as a separate element of the cost basis for purposes of accounting for the long-lived asset under Topic 360 after foreclosure.
","snippet":"A valuation allowance for a loan collateralized by a long-lived asset shall not be carried over as a separate element of the cost basis for purposes of accounting for the long-lived asset under Topic 360 after foreclosur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7d880bc0769a6c6d497a511ddd4ac831c3d83a0199db3f7b6f9dd6219a31c339","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e382b8fe716ee09abdc8fd5b6f626c41c95449f48f5204178784f3a5d6956d5c","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:efd5110e844754f68a8c4374b1077db8d41fcbf36e6dff96c41632eeccfa099f","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:efd5110e844754f68a8c4374b1077db8d41fcbf36e6dff96c41632eeccfa099f","downloaded_from":"2026-09-09T23:26:02.921Z","last_downloaded_at":"2026-09-09T23:26:02.921Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481628","source_sha256":"7f07711a9c62ca1f15063c4bc04f3537488aded7fb5ff6e6e8e5358396e28cb5"}}