# ASC 310-944-35: Receivables — Financial Services—Insurance — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/944/#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): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a2d68f3c454feb0a9a34141275f6d4f113f8aa0b04cf24d4389ba086ad47a79a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/944/#35-subsequent-measurement) SEC content: no #### Mortgage Loans ##### [310-944-35-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a3aec0f78db4c93978becfae49a5891be7556ce4767c6abfc0681af35fea071d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mortgage loans recognized under paragraph [944-310-25-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-1) shall be measured subsequently at outstanding principal balances if acquired at par value, or at amortized cost if purchased at a discount or premium, with an allowance for estimated uncollectible amounts, if any. ##### [310-944-35-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:3e207a5361ece1af5e6eb944e2498b7b606715a11a831560179868a4a3a4b564 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-310-45-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-3) states that amortization and other related charges or credits shall be charged or credited to investment income. ##### [310-944-35-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:63a65aba02b1d3873bd8c137737e8659cac515354a2efb582f1e453f89b6aee0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-310-45-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-4) states that changes in the allowance for credit losses relating to mortgage loans shall be included in income as prescribed in Subtopic 326-20 on financial instruments measured at amortized cost. ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-35-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:7a5f57f7f801947b93821ab8e21fbe60145830d74392f5114624c7b5b37ed498 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the valuation of [reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits.") depends on the terms of the [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contract and on estimates used in measuring the liabilities relating to the reinsured contracts, this Subtopic does not stipulate a specific valuation method. An entity shall measure contingent losses relating to disputed amounts in accordance with Subtopic 450-20 on loss contingencies. However, the [ceding entity](https://asc.understandingaccounting.org/glossary/c/#ceding-entity "The party that pays a reinsurance premium in a reinsurance transaction. The ceding entity receives the right to reimbursement from the assuming entity under the terms of the reinsurance contract.") shall measure expected credit losses relating to reinsurance recoverables in accordance with Subtopic 326-20 on financial instruments measured at amortized cost. ### Financial Guarantee Insurance Contracts #### Unearned Premium Revenue ##### [310-944-35-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a5fcc608604d54f9ba063d67a6e9e355100efa943a8c075e0396ac1f10f1e772 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an expected period is used as the period of the financial guarantee insurance contract to measure the unearned premium revenue, an insurance entity shall adjust the prepayment assumptions when those assumptions change. The adjustment to the unearned premium revenue shall equal the adjustment to the premium receivable with no effect on earnings at the time of the adjustment. The discount rate shall be updated to a current risk-free rate only when prepayment assumptions change. Example 1 (see paragraph [944-310-55-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-1)) illustrates the accounting when prepayment assumptions change. ##### [310-944-35-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a52b42e058d0496a7b9f223241e1039af321bf6ccda1bdfabd2593fdff5a2a5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An insurance entity shall measure expected credit losses relating to the premium receivable in accordance with Subtopic 326-20 on financial instruments measured at amortized cost with a corresponding adjustment to earnings. The insurance entity shall consider as part of its assessment of recognition and measurement of the claim liability (see the Financial Guarantee Insurance Contracts Subsections in Subtopic 944-40) whether the premiums expected to be collected (the premium receivable) are fully collectible. ##### [310-944-35-7](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:2b915839b3960b2b59e4832e97328b2ad53d139242ed77e0706fb5d8aba00bc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-605-35-16](https://asc.understandingaccounting.org/asc/605/944/#605-944-35-16) states that in instances where a contract period is used as the period of the financial guarantee insurance contract to measure the unearned premium revenue, an insurance entity shall adjust the unearned premium revenue to reflect early principal payments as they occur. That paragraph states also that the adjustment to the unearned premium revenue shall equal the adjustment to the premium receivable.