# ASC 310-942-35: Receivables — Financial Services—Depository and Lending — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/942/#35-subsequent-measurement) 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): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:3c34ba98a8cc2a30c3c73c327c20d70ebfcdcff09ffb8fdc0a43c9b5627cf64d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/942/#35-subsequent-measurement) SEC content: no #### Loans to Financially Troubled Countries ##### [310-942-35-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:eb6601c82439b488ba35170a74111dc7640cb737bf21440ffbbf3b76d42a06ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Bank loans to financially troubled countries may meet the conditions in Subtopic 326-20 on financial instruments measured at amortized cost for recording of credit losses. As a result, a bank shall establish loan loss allowances for such loans by charges to income. ##### [310-942-35-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:b05a79ef42a3d1ebcc9c553b4373fa4c94b592382178e1d910fde14e44671e45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If amounts are received on a loan on which the accrual of interest has been suspended, a determination should be made about whether the payment received should be recorded as a reduction of the principal balance or as interest income. If the ultimate collectibility of principal, wholly or partially, is in doubt, any payment received on a loan on which the accrual of interest has been suspended shall be applied to reduce principal to the extent necessary to eliminate such doubt. ##### [310-942-35-3](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:26763ae2bda567dade6560758f13c047dab7b7f6e6d9991c2098312e15bf04f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a country becomes current as to principal and interest payments and has normalized relations with the international financial community including, as appropriate, having in place an understanding with the International Monetary Fund regarding its economic stabilization program, and assuming that the allowance for loan losses is adequate, the creditor may recognize receipt of interest payments as income. ##### [310-942-35-4](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:2dc4b38f4e89cfcabb2d2a4428809960a3f410385ba6d4961f3ed8506e1c43d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although a country has met the conditions described in the preceding paragraph, that fact should not automatically lead to the conclusion that the loans should be returned to accrual status. Some period of payment performance generally is necessary in order to make an assessment of collectibility that would permit returning the loans to accrual status. #### Debt-Equity Swap Programs ##### [310-942-35-5](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:4f031440282d4ec0631db77d9d69587f15c2ae18976a117def6000338eebdf5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of the equity investment or net assets received in a [debt-equity swap](https://asc.understandingaccounting.org/glossary/d/#debt-equity-swap "A debt-equity swap is an exchange transaction of a monetary asset for a nonmonetary asset.") is less than the recorded investment in the loan, a loss shall be recognized and recorded at the date the transaction is agreed to by both parties. Although some portion of the swap loss may result from factors such as a change in the interest rate environment for similar loans, the loss results principally from a concern as to the ultimate collectibility of the loan. Therefore, the swap loss generally shall be charged to the allowance for loan losses and shall include any discounts from the official exchange rate that are imposed as a transaction fee. ##### [310-942-35-6](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:cc2d6814ce1c2e37971526de383c5cea2c3c42c0725cd75e747b3edd91d4c7c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Loss recoveries or even gains might be indicated in a swap transaction as a result of the valuation process. However, due to the subjective nature of the valuation process, such loss recoveries or gains ordinarily should not be recorded until the equity investment or net assets received in the swap transaction are realized in unrestricted cash or cash equivalents. ##### [310-942-35-7](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:6dddb6c75c3b977d67de657dcc326b5af08a24198e1e425efe70df9e0f785af0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Recognition of a debt-equity swap loss shall be among the factors to be considered by management in its periodic assessment of the adequacy of the allowance for loan losses with respect to its remaining portfolio of loans to debtors in financially troubled countries. #### Customers' Liabilities on Acceptances ##### [310-942-35-8](https://asc.understandingaccounting.org/asc/310/942/#310-942-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:15.694Z to 2026-09-09T23:29:15.694Z Record version: sha256:2c62dedd32265172246924e8b4ace0357e1eb10b6e25f27e7908d5b8f2544e00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Provisions for uncollectible amounts for customers' acceptance liabilities should be made, if necessary.