# ASC Topic 310: Receivables Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/) 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): 2026-09-09T23:24:42.337Z to 2026-09-09T23:34:36.034Z Record version: sha256:cd635f4f4d6ae37b70994b44ce2bfc20f2f3932ab7172987cd639c3686d9bd2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 310 covers receivables — trade accounts, notes, and loans — from initial recognition through subsequent measurement, derecognition, presentation, and disclosure. The Overall subtopic (310-10) sets the base model: receivables management intends and is able to hold for the foreseeable future are carried at amortized cost basis with credit losses under Topic 326, while nonmortgage loans held for sale are carried at the lower of amortized cost basis or fair value through a valuation allowance; notes receivable are initially measured at present value with interest imputed under Subtopic 835-30. ASC 310-20 supplies the pervasive yield rule that nonrefundable loan origination fees and direct origination costs are deferred, netted, and amortized over the life of the loan as an interest-yield adjustment under the interest method, with all other lending costs expensed as incurred. Several legacy subtopics (310-30 purchased credit-impaired loans, 310-40 troubled debt restructurings, 310-910, 310-920) are now empty shells superseded by ASU 2016-13 (CECL), ASU 2022-02, and ASU 2014-09, leaving a set of industry-specific subtopics (mortgage banking, health care, insurance, benefit plans, not-for-profit promises to give, government contracts, time-sharing, retail land sales) that tailor recognition and presentation to particular receivable types. Source downloaded (UTC): 2026-09-09T23:24:42.337Z to 2026-09-09T23:25:40.463Z Record version: sha256:64110485b68b026e462918eef4e63be91b3f0b35ff8474f05f8f533521c9c280 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10: Receivables — Overall ### Machine-generated study aids ```json { "summary": "ASC 310-10 is the Overall subtopic for receivables, providing general guidance on recognizing, measuring, presenting, and disclosing loans and trade receivables (including factoring, loan syndications, standby commitments to purchase loans, purchased credit card portfolios, and secured loans), plus a separate set of Subsections on acquisition, development, and construction (ADC) arrangements. Receivables held for the foreseeable future are carried at amortized cost basis (with credit losses under Topic 326), while nonmortgage loans held for sale are carried at the lower of amortized cost basis or fair value through a valuation allowance. The ADC Subsections tell a lender whether an arrangement in which it participates in expected residual profit is a loan, a real estate investment, or a real estate joint venture; most of the old impairment/TDR guidance in this subtopic was superseded by ASU 2016-13 and ASU 2022-02, leaving modification disclosures behind.", "key_points": [ "The General Subsections apply to all entities and to trade accounts receivable, loans, loan syndications, factoring arrangements, standby letters of credit, and financing receivables, but not to mortgage banking activities (Topic 948) or contracts accounted for as derivatives under Subtopic 815-10 (310-10-15-1 through 15-3).", "Trade receivables and nonmortgage loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost basis, with credit losses measured under Subtopic 326-20; nonmortgage loans held for sale are reported at the lower of amortized cost basis or fair value with the excess recorded as a valuation allowance charged to income (310-10-35-47, 35-47A, 35-48).", "On transfer between classifications, an entity reverses in earnings the previously recorded allowance for credit losses (or valuation allowance), transfers the loan at amortized cost basis excluding that allowance, and then establishes the other type of allowance; the reversals and establishments are presented gross in the income statement (310-10-35-48A through 35-48B; 310-10-45-2).", "A standby commitment to purchase loans is treated as part of normal loan production (loans recorded at cost net of the commitment fee on settlement date) if settlement is within a reasonable period and the entity intends and is able to accept delivery without selling assets; otherwise it is accounted for as a written put option, with the liability carried at the greater of the initial standby commitment fee or the fair value of the option (310-10-25-6, 30-7, 35-46).", "Notes receivable are initially measured at present value: cash-only notes at the cash proceeds, notes for property, goods, or services at the present value of the consideration exchanged, with interest imputed under Subtopic 835-30 when interest is absent or clearly unreasonable (310-10-30-2 through 30-6).", "In an ADC arrangement in which the lender participates in expected residual profit, the lender accounts for the arrangement as a real estate investment under Topic 970 if it expects over 50 percent of the expected residual profit; if 50 percent or less, it is a loan only if at least one characteristic in 310-10-25-20(b) through (e) or a qualifying personal guarantee is present, otherwise real estate joint venture accounting applies (310-10-25-27); classification is reassessed periodically and changes are accounted for prospectively (310-10-35-55 through 35-59).", "Creditors must disclose commitments to lend additional funds to debtors experiencing financial difficulty whose receivables were modified, and, by class of financing receivable, the types, financial effect, and 12-month post-modification performance of modifications in the form of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, or term extension, plus defaults within 12 months of such modifications (310-10-50-36, 50-42 through 50-45)." ], "categories": [ "Financial instruments", "Subsequent measurement", "Disclosure", "Presentation" ], "audience_level": "intermediate", "student_note": "Know that ASC 310-10 is now largely a residual subtopic: credit-loss and troubled-debt-restructuring measurement moved to Topic 326 (ASU 2016-13) and ASU 2022-02, so the surviving content is classification/measurement of loans and trade receivables, standby commitments, ADC arrangements, and modification disclosures. A common mistake is applying old \"impaired loan\" or TDR measurement rules from superseded 310-10-35 paragraphs instead of the CECL model in 326-20.", "related_topics": [ "310-20", "326-20", "860", "835-30", "970", "948" ], "key_concepts": [ "financing receivable", "amortized cost basis", "lower of amortized cost basis or fair value", "held for sale classification", "standby commitment to purchase loans", "acquisition, development, and construction arrangement", "expected residual profit", "modification to debtor experiencing financial difficulty" ] } ``` Source downloaded (UTC): 2026-09-09T23:24:42.337Z to 2026-09-09T23:24:42.337Z Record version: sha256:721154ac3d58b8d94093a39030b5e6f8089feca652634429c5cfeb424c6939f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/10/#00-status) SEC content: no ##### [310-10-00-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:42.337Z to 2026-09-09T23:24:42.337Z Record version: sha256:d93aebd5914e2450210debcc7a239458ae9bd878097b9b782a4dc700e8af85d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Amortized Cost BasisAddedAccounting Standards Update No. 2016-1306/16/2016
Class of Financing ReceivableAmendedAccounting Standards Update No. 2016-1306/16/2016
Class of Financing ReceivableAddedAccounting Standards Update No. 2010-2007/21/2010
Collateral-Dependent LoanSupersededAccounting Standards Update No. 2016-1306/16/2016
Commencement Date of the Lease (Commencement Date)AddedAccounting Standards Update No. 2016-0202/25/2016
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
Credit Quality IndicatorAmendedAccounting Standards Update No. 2016-1912/14/2016
Credit Quality IndicatorSupersededAccounting Standards Update No. 2016-1306/16/2016
Credit Quality IndicatorAddedAccounting Standards Update No. 2010-2007/21/2010
Direct Financing LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Direct Financing LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateAmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateSupersededAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (2nd def.)AddedAccounting Standards Update No. 2016-1912/14/2016
Financing ReceivableAddedAccounting Standards Update No. 2010-2007/21/2010
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Lease PaymentsAddedAccounting Standards Update No. 2016-0202/25/2016
Lease ReceivableAddedAccounting Standards Update No. 2016-0202/25/2016
Lease TermAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Leveraged LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Portfolio SegmentAmendedAccounting Standards Update No. 2016-1306/16/2016
Portfolio SegmentAddedAccounting Standards Update No. 2010-2007/21/2010
Purchased Financial Assets with Credit DeteriorationAmendedAccounting Standards Update No. 2016-1912/14/2016
Purchased Financial Assets with Credit DeteriorationAddedAccounting Standards Update No. 2016-1306/16/2016
Recorded InvestmentAmendedAccounting Standards Update No. 2015-1006/12/2015
Purchased Seasoned LoansAmendedAccounting Standards Update No. 2025-0811/12/2025
Related PartiesSupersededAccounting Standards Update No. 2016-1306/16/2016
Related PartiesAddedAccounting Standards Update No. 2010-2007/21/2010
Sales-Type LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Sales-Type LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Troubled Debt RestructuringSupersededAccounting Standards Update No. 2022-0203/31/2022
Troubled Debt RestructuringAddedAccounting Standards Update No. 2010-2007/21/2010
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
310-10-05-1AmendedAccounting Standards Update No. 2022-0203/31/2022
310-10-05-1AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-15-2AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-30-4 through 30-6
AmendedAccounting Standards Update No. 2012-0410/01/2012
310-10-35-1 through 35-43
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-35-2AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-4 through 35-7
AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-11AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-35-11AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-35-12 through 35-14
AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-13AmendedAccounting Standards Update No. 2016-0202/25/2016
310-10-35-16AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-20AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-22AmendedAccounting Standards Update No. 2011-0405/12/2011
310-10-35-31 through 35-33
AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-31AAddedAccounting Standards Update No. 2022-0103/28/2022
310-10-35-37AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-35-44AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-35-45AmendedAccounting Standards Update No. 2009-1612/23/2009
310-10-35-46 through 35-48
AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-35-47AmendedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-47AmendedMaintenance Update 2017-06 (PDF)04/07/2017
310-10-35-47AAddedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-48AmendedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-48AAddedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-48BAddedAccounting Standards Update No. 2019-0404/25/2019
310-10-35-49SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-35-53A through 35-53C
AddedAccounting Standards Update No. 2016-1306/16/2016
310-10-35-53BAmendedAccounting Standards Update No. 2025-0811/12/2025
310-10-40-1AAmendedAccounting Standards Update No. 2022-0203/31/2022
310-10-40-1AAddedAccounting Standards Update No. 2014-1408/08/2014
310-10-40-4AmendedAccounting Standards Update No. 2017-0502/22/2017
310-10-40-4AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-40-5AmendedAccounting Standards Update No. 2016-0202/25/2016
310-10-40-5AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-45-1AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-45-2AmendedAccounting Standards Update No. 2019-0404/25/2019
310-10-45-4SupersededAccounting Standards Update No. 2012-0410/01/2012
310-10-45-4A through 45-6
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-45-4AAddedAccounting Standards Update No. 2012-0410/01/2012
310-10-45-11AmendedAccounting Standards Update No. 2016-0101/05/2016
310-10-45-14AmendedAccounting Standards Update No. 2015-1006/12/2015
310-10-50-1AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-1AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-1AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-2AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-2AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-3AmendedMaintenance Update 2015-11 (PDF)06/19/2015
310-10-50-4AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-4AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-4ASupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-4AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-5A through 50-10
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-5AmendedAccounting Standards Update No. 2009-1612/23/2009
310-10-50-5AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-5BAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-5BAmendedAccounting Standards Update No. 2010-2509/28/2010
310-10-50-6AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7BAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-7BAmendedAccounting Standards Update No. 2010-2509/28/2010
310-10-50-9AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-10AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-11AmendedAccounting Standards Update No. 2025-1112/08/2025
310-10-50-11AmendedAccounting Standards Update No. 2022-0203/31/2022
310-10-50-11AmendedAccounting Standards Update No. 2014-0401/17/2014
310-10-50-11A through 50-11C
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-11A through 50-11C
AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-12SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-13SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-14 through 50-21
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-14AmendedAccounting Standards Update No. 2012-0410/01/2012
310-10-50-14AAddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-15AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-17AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-20AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-21AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-22SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-23SupersededAccounting Standards Update No. 2010-2007/21/2010
310-10-50-24SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-25AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-26AmendedAccounting Standards Update No. 2016-0101/05/2016
310-10-50-26AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-27 through 50-30
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-50-27 through 50-34
AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-50-31 through 50-34
SupersededAccounting Standards Update No. 2022-0203/31/2022
310-10-50-31 through 50-34
AmendedAccounting Standards Update No. 2011-0101/19/2011
310-10-50-31 through 50-34
AmendedAccounting Standards Update No. 2011-0204/05/2011
310-10-50-32 through 50-34
AmendedAccounting Standards Update No. 2016-1306/16/2016
310-10-50-35AmendedAccounting Standards Update No. 2025-1112/08/2025
310-10-50-35AddedAccounting Standards Update No. 2014-0401/17/2014
310-10-50-36 through 50-48
AddedAccounting Standards Update No. 2022-0203/31/2022
310-10-50-40AmendedAccounting Standards Update No. 2025-1212/17/2025
310-10-50-41 through 50-44
AmendedAccounting Standards Update No. 2025-1112/08/2025
310-10-55-1 through 55-11
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-55-2AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-55-3AmendedAccounting Standards Update No. 2010-2007/21/2010
310-10-55-7 through 55-22
AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-55-12SupersededAccounting Standards Update No. 2022-0203/31/2022
310-10-55-12A through 55-12K
AddedAccounting Standards Update No. 2022-0203/31/2022
310-10-55-16 through 55-22
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-55-14AmendedAccounting Standards Update No. 2016-0202/25/2016
310-10-60-4AmendedAccounting Standards Update No. 2016-2012/21/2016
310-10-60-4AmendedAccounting Standards Update No. 2014-0905/28/2014
310-10-60-5AmendedAccounting Standards Update No. 2020-1010/29/2020
310-10-65-1AddedAccounting Standards Update No. 2010-1804/29/2010
310-10-65-2AddedAccounting Standards Update No. 2010-2007/21/2010
310-10-65-3AddedAccounting Standards Update No. 2011-0101/19/2011
Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:78246292e0fc2ecad07ce4da6cecee6ce97c84b80abc31f3b73fcbdb5affdd33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/10/#05-overview-and-background) SEC content: no ##### [310-10-05-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:774c050720d8b039e8ba7e5b16d4b59f5fbe251f386caeb1cbeb12c2bc7da99d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Receivables Topic includes the following Subtopics: 1. a Overall 2. b Nonrefundable Fees and Other Costs 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-05-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:2dc0f85b493f22c3b726c8d705fbe173134d535a35c731d06ffac3d5400ac942 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic establishes general guidance for receivables. The guidance is presented in the following two Subsections: 1. a General 2. b [Acquisition, Development, and Construction Arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property."). ##### [310-10-05-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:aae9dadb1eff6ee33b686d215ba1361ce7cdc823cd48d2c636d75f2d8109faad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance on a variety of accounting issues related to receivables. The following paragraphs provide background information on types of receivables addressed in the General Subsections. #### Receivables in General ##### [310-10-05-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:323d551ae193820b9c65db3b670a30955cd5712af66a64bc587a61fda645f3be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables may arise from credit sales, loans, or other transactions. Receivables may be in the form of loans, notes, and other types of financial instruments and may be originated by an entity or purchased from another entity. #### Standby Commitments to Purchase Loans ##### [310-10-05-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:528844f1341267656d026722a34d167f267fb702eb01638ea7c88354da7d7df2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities sometimes enter into forward standby commitments to purchase loans at a stated price in return for a standby commitment fee. In such an arrangement, settlement of the standby commitment is at the option of the seller of the loans and would result in delivery to the entity only if the contract price equals or exceeds the market price of the underlying [loan](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.") or security on the settlement date. A standby commitment differs from a mandatory commitment in that the entity assumes all the market risks of ownership but shares in none of the rewards. A standby commitment is, in substance, a written put option that will be exercised only if the value of the loans is less than or equal to the strike price. #### Factoring Arrangements ##### [310-10-05-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:634cb7c2154fd63caaa4fb76481896567318a0ad28047d82d30d68a0e60c877b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Factoring arrangements are a means of discounting accounts receivable on a nonrecourse, notification basis. Accounts receivable are sold outright, usually to a transferee (the factor) that assumes the full risk of collection, without [recourse](https://asc.understandingaccounting.org/glossary/r/#recourse "The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: Failure of debtors to pay when due The effects of prepayments Adjustments resulting from defects in the eligibility of the transferred receivables.") to the transferor in the event of a loss. Debtors are directed to send payments to the transferee. #### Rebates ##### [310-10-05-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:e3883a862564668cd27078805101485c264d2af4b334d0c409ef4548f11a804f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Rebates represent refunds of portions of the precomputed finance charges on installment loans or trade receivables, if applicable, that occur when payments are made ahead of schedule. Rebate calculations generally are governed by state laws and may differ from unamortized finance charges on installment loans or trade receivables because many states require rebate calculations to be based on the Rule of 78s or other methods instead of the interest method. ### Acquisition, Development, and Construction Arrangements ##### [310-10-05-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:dc1e566fa462466f014f33e9dd68f6342a8a44e1ba65e31ae00cf484fdb6b9d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [Acquisition, Development, and Construction Arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property.") Subsections provide guidance for determining whether a lender should account for an acquisition, development, and construction arrangement as a [loan](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.") or as an investment in real estate or a joint venture. ##### [310-10-05-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:46.214Z to 2026-09-09T23:24:46.214Z Record version: sha256:f85a64393f87088835e535fb46f71908ba2f5e09d19dc6dad6521e1bc136117a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Lenders may enter into acquisition, development, and construction arrangements in which they have virtually the same risks and potential rewards as those of owners or joint venturers. Loans granted to acquire operating properties sometimes grant the lender a right to participate in [expected residual profit](https://asc.understandingaccounting.org/glossary/e/#expected-residual-profit "The amount of profit, whether called interest or another name, such as equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender.") from the sale or refinancing of the property. The expected residual profit may take the form of a percentage of the appreciation of the property determined at the maturity of the loan. Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:70b77c9a3875f113b2ed992eb0b508f61797f163dad8a847579a5e085003ec03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/10/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [310-10-15-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:4ccad1ae77cb882cc70ee5656ab57450025ce775e30e7843779e6b7d5f4035be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections applies to all entities. #### Transactions ##### [310-10-15-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:4efd9c3c9d1163e25870b2fd1f02e52a7b575d7583228d06275a6cf3262889fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections applies to a variety of instruments and transactions, including the following: 1. a Trade accounts receivable 2. b [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.") 3. c [Loan syndications](https://asc.understandingaccounting.org/glossary/l/#loan-syndication "A transaction in which several lenders share in lending to a single borrower. Each lender loans a specific amount to the borrower and has the right to repayment from the borrower. It is common for groups of lenders to jointly fund those loans when the amount borrowed is greater than any one lender is willing to lend.") 4. d Factoring arrangements 5. e [Standby letters of credit](https://asc.understandingaccounting.org/glossary/s/#standby-letter-of-credit "A letter of credit (or similar arrangement however named or designated) that represents an obligation to the beneficiary on the part of the issuer for any of the following: To repay money borrowed by or advanced to or for the account of the account party To make payment on account of any evidence of indebtedness undertaken by the account party To make payment on account of any default by the account party in the performance of an obligation. A standby letter of credit would not include the following: Commercial letters of credit and similar instruments where the issuing bank expects the beneficiary to draw upon the issuer and which do not guarantee payment of a money obligation A guarantee or similar obligation issued by a foreign branch in accordance with and subject to the limitations of Regulation M of the Federal Reserve Board.") 6. f [Financing receivables](https://asc.understandingaccounting.org/glossary/f/#financing-receivable "A financing arrangement that has both of the following characteristics: It represents a contractual right to receive money in either of the following ways: On demand On fixed or determinable dates. It is recognized as an asset in the entity's statement of financial position. See paragraphs 310-10-55-13310-10-55-14310-10-55-15 for more information on the definition of financing receivable, including a list of items that are excluded from the definition (for example, debt securities)."). ##### [310-10-15-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:e13dbb8f9a867ceb9d68ec2c792c9a49d737e27127253090c988b45058cc47c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections does not apply to the following transactions and activities: 1. a Mortgage banking activities (as described in paragraph [948-10-05-4](https://asc.understandingaccounting.org/asc/948/10/#948-10-05-4)) 2. b A contract that is required to be accounted for as a derivative instrument under Subtopic 815-10. For example, paragraph [815-10-15-70](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-70) states that commitments to purchase or sell mortgage loans or other types of loans at a future date shall be evaluated under the definition of a derivative instrument to determine whether Subtopic 815-10 applies. ### Acquisition, Development, and Construction Arrangements #### Entities ##### [310-10-15-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:5dac530b8896d8daa703432c62c66a774b545ff0b7f453ded44423631feec374 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the [Acquisition, Development, and Construction Arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property.") Subsections applies to all entities. #### Transactions ##### [310-10-15-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:48.693Z to 2026-09-09T23:24:48.693Z Record version: sha256:d13684483e3cc424b8e07062d38a0beb56c8908c6215dd18c60ddc8ae1730085 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Acquisition, Development, and Construction Arrangements Subsections applies only to those acquisition, development, and construction arrangements in which the lender participates in [expected residual profit](https://asc.understandingaccounting.org/glossary/e/#expected-residual-profit "The amount of profit, whether called interest or another name, such as equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender."), as further described in the [Acquisition, Development, and Construction Subsection](https://asc.understandingaccounting.org/asc/310/10/#25-recognition) of Section 310-10-25. Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:c33b7836df919d1b1feb83a70e7b4f28cfee72a987f638b0207dd5b0044f3681 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/10/#25-recognition) SEC content: no ##### [310-10-25-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:66ce0b98a701e11526ece47290ea59328904ea1ff0cd065475e2436962193727 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide recognition guidance organized as follows: 1. a Recognition of certain types of receivables 2. b Recognition of interest and fees for certain types of receivables. #### Recognition of Certain Types of Receivables ##### [310-10-25-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:bb8a42c1dd13ed8e81d888be8810a69c4f0dc4338954efa218788faa67c34e2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance addresses issues related to recognition of various types of receivables, specifically: 1. a Factoring arrangements 2. b [Loan syndications](https://asc.understandingaccounting.org/glossary/l/#loan-syndication "A transaction in which several lenders share in lending to a single borrower. Each lender loans a specific amount to the borrower and has the right to repayment from the borrower. It is common for groups of lenders to jointly fund those loans when the amount borrowed is greater than any one lender is willing to lend.") and [loan](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.") participations 3. c Standby commitments 4. d Credit card portfolio purchased 5. e Secured loans. Such receivables may be originated by an entity or purchased from a third party. ##### [310-10-25-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:9fcd84fb39c6f626028d77d56aea0c3f01adf09f149aa46e077fd538a30752c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers of receivables under factoring arrangements meeting the sale criteria of paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) shall be accounted for by the factor as purchases of receivables. The acquisition of receivables and accounting for purchase discounts such as factoring commissions shall be recognized in accordance with Subtopic 310-20. Factoring commissions under these arrangements shall be recognized over the period of the loan contract in accordance with that Subtopic. That period begins when a finance company or an entity with financing activities including trade receivables funds a customer's credit and ends when the customer's account is settled. ##### [310-10-25-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:680fdd94f71ec745c6482fbaf16b10feafef466a6046ce9c5bd7a1f9b596f638 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Each lender in a syndication shall account for the amounts it is owed by the borrower. Repayments by the borrower may be made to a lead lender that then distributes the collections to the other lenders of the syndicate. In those circumstances, the lead lender is simply functioning as a servicer and, therefore, shall not recognize the aggregate loan as an asset. ##### [310-10-25-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:6d5fb213b3e62ad0dc9656f43c05e4ab5d29cd2628337a0ce8ef8e9dd569c817 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [860-10-55-61](https://asc.understandingaccounting.org/asc/860/10/#860-10-55-61) for guidance on accounting for loan participations. ##### [310-10-25-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:bdb77ed9ef72da453cb68b988b136ebcfe392b7ffb115400ab230b58daedab0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-10-15-70](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-70) states that commitments to purchase or sell mortgage loans or other types of loans at a future date must be evaluated under the definition of a derivative instrument to determine whether Subtopic 815-10 applies. This paragraph applies only to a standby commitment to purchase loans and only if that commitment is within the scope of this Subtopic. It does not apply to other customary kinds of commitments to purchase loans, nor does it apply to commitments to originate loans. If the settlement date is within a reasonable period, for example, a normal loan commitment period, and the entity has the intent and ability to accept delivery without selling assets, a standby commitment within the scope of this Subtopic shall be viewed as part of the normal production of loans. However, if the settlement date is not within a reasonable period, or the entity does not have the intent and ability to accept delivery without selling assets, the standby commitment shall be accounted for as a written put option. ##### [310-10-25-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:25b68ed46ffefd61522219da4158b73bf9d10ab0761d28e025a567b770b7a316 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity purchases a credit card portfolio that includes the cardholder relationships at an amount that exceeds the sum of the amounts due under the credit card receivables, the difference between the amount paid and the sum of the balances of the credit card loans at the date of purchase (the premium) shall be allocated between the cardholder relationships acquired and the loans acquired. The premium relating to the cardholder relationships represents an identifiable intangible asset that shall be accounted for in accordance with Topic 350. ##### [310-10-25-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:39abd9f3d8eef15b378c64f3faf76d482c58e6dcb9e92acb5ebbc1dea8b94d0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transfers not meeting the sale criteria in paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) shall be accounted for as secured loans, that is, loans collateralized by customer accounts or receivables. Paragraph [860-30-25-5](https://asc.understandingaccounting.org/asc/860/30/#860-30-25-5) provides additional guidance in those situations. #### Recognition of Interest and Fees for Certain Types of Receivables ##### [310-10-25-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:b67769f4f1cf82a96d17882375d4230ffd6ef317ecb9741fdbcffaa7467bb20b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance addresses the recognition of interest income and certain fees for various types of receivables, specifically: 1. a Interest income on receivables 2. b Impact of rebates on accrued interest income 3. c Prepayment fees 4. d Delinquency fees. Such interest or fees may relate to receivables that are originated by the entity or purchased from a third party. ##### [310-10-25-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:e3aa929c39a952fffce090fb5a37f8a26b30f1098ac2bc1ee6aadf5c7e516047 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 835-30 for guidance on the imputation of interest for receivables that represent contractual rights to receive money or contractual obligations to pay money on fixed or determinable dates, whether or not there is any stated provision for interest. ##### [310-10-25-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:1325fa8de20eaaae88dc209cf9770fd8388a6d9fdbe2b235e8052903b3bb53f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accrual of interest income on installment loans or trade receivables shall not be affected by the possibility that rebates may be calculated on a method different from the interest method, except that the possibility of rebates affects the accounting resulting from the application of paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18). Differences between rebate calculations and accrual of interest income merely adjust original estimates of interest income and shall be recognized in income when loans or trade receivables are prepaid or renewed. ##### [310-10-25-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:0aeb358e5ee1173d18e118fcc855c6589e20f84162185f296fc10670a4872df0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Prepayment penalties shall not be recognized in income until loans or trade receivables, if applicable, are prepaid, except that the existence of prepayment penalties may affect the accounting resulting from the application of paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18). ##### [310-10-25-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:70bc1751e0c66eecceb0a6a03c2c43059c491fc9bb16ab6739f25f1d5391c35c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Delinquency fees shall be recognized in income when chargeable, assuming collectibility is reasonably assured. ### Acquisition, Development, and Construction Arrangements ##### [310-10-25-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:2f34d2a2d27464065cf5ac9b5247105c4a35b45be5ed7416baa5f876a2f6076c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides recognition guidance for [acquisition, development, and construction arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property."), specifically: 1. a [Expected residual profit](https://asc.understandingaccounting.org/glossary/e/#expected-residual-profit "The amount of profit, whether called interest or another name, such as equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender.") 2. b Characteristics implying investment in real estate or joint ventures 3. c Characteristics implying loans 4. d Accounting for an arrangement as a [loan](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.") or an investment in real estate 5. e Participations in acquisition, development, and construction arrangements. #### Expected Residual Profit ##### [310-10-25-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:dd6349d552bac5b328a3d9684660b5771cd29a75435a3239ce3be6d5f6ee1a4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The extent of participation in expected residual profit and its forms may vary. An example of a simple form might be one in which the contractual interest and fees, if any, on a condominium project are considered to be at fair market rates. The expected sales prices are sufficient to cover at least principal, interest, and fees, and the lender shares in an agreed proportion, for example, 20 percent, 50 percent, or 90 percent, of any profit on sale of the units. ##### [310-10-25-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:5236999f29aff3668cb9a1476fa2364eef8e0ead9aa0b7bdad07e10231961a31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A slightly different form of arrangement may produce approximately the same result. For example, the interest rate and/or fees may be set at a level higher than in the preceding example, and the lender may receive a smaller percentage of any profit on sale of the units. Thus, a greater portion of the expected sales price is required to cover the contractual interest and/or fees, leaving a smaller amount to be allocated between the lender and the borrower. The lender's share of expected residual profit in such an arrangement may be approximately the same as in the preceding example. ##### [310-10-25-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:b03c3e9f769ccc4d3afd82784abbf4acda44d2234cae5603fc7bde437c565c5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A different arrangement may cause the same result if the interest rate and/or fees are set at a sufficiently high level and the lender does not share in any proportion of profit on sale of the units. Another variation in these arrangements is one in which the lender shares in gross rents or net cash flow from a commercial project, for example, an office building or an apartment complex. ##### [310-10-25-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:f27e7b5c75be728894bcb92fdce451f372c372b0dc12a9e3d9e958e1aa364860 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The profit participation agreement may or may not be part of the mortgage loan agreement. #### Characteristics Implying Investment in Real Estate or Joint Ventures ##### [310-10-25-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:5fd1d580d20555058a541f7d9cb869df0ac13e750d7f59463bf4f4db8d85cc9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In an acquisition, development, and construction arrangement in which the lender participates in expected residual profit, in addition to the lender's participation in expected residual profit, the following characteristics suggest that the risks and rewards of the arrangement are similar to those associated with an investment in real estate or joint venture: 1. a The lender agrees to provide all or substantially all necessary funds to acquire, develop, or construct the property. The borrower has title to but little or no equity in the underlying property. 2. b The lender funds the commitment or origination fees or both by including them in the amount of the loan. 3. c The lender funds all or substantially all interest and fees during the term of the loan by adding them to the loan balance. 4. d The lender's only security is the acquisition, development, and construction project. The lender has no [recourse](https://asc.understandingaccounting.org/glossary/r/#recourse "The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: Failure of debtors to pay when due The effects of prepayments Adjustments resulting from defects in the eligibility of the transferred receivables.") to other assets of the borrower, and the borrower does not guarantee the debt. 5. e In order for the lender to recover the investment in the project, the property must be sold to independent third parties, the borrower must obtain refinancing from another source, or the property must be placed in service and generate sufficient net cash flow to service debt principal and interest. 6. f The arrangement is structured so that foreclosure during the project's development as a result of delinquency is unlikely because the borrower is not required to make any payments until the project is complete, and, therefore, the loan normally cannot become delinquent. #### Characteristics Implying Loans ##### [310-10-25-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:f05e08ef4fef291593b9ddd868de4f51810770a3587f7b6b1f698ca306899aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even though the lender participates in expected residual profit, the following characteristics suggest that the risks and rewards of an acquisition, development, and construction arrangement are similar to those associated with a loan: 1. a The lender participates in less than a majority of the expected residual profit. 2. b The borrower has an equity investment, substantial to the project, not funded by the lender. The investment may be in the form of cash payments by the borrower or contribution by the borrower of land (without considering value expected to be added by future development or construction) or other assets. The value attributed to the land or other assets should be net of encumbrances. There may be little value to assets with substantial prior liens that make foreclosure to collect less likely. Recently acquired property generally shall be valued at no higher than cost. 3. c The lender has either of the following: 1. 1 Recourse to substantial tangible, saleable assets of the borrower, with a determinable sales value, other than the acquisition, development, and construction project that are not pledged as collateral under other loans 2. 2 An irrevocable letter of credit from a creditworthy, independent third party provided by the borrower to the lender for a substantial amount of the loan over the entire term of the loan. 4. d A take-out commitment for the full amount of the lender's loans has been obtained from a creditworthy, independent third party. Take-out commitments often are conditional. If so, the conditions should be reasonable and their attainment [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur."). 5. e Noncancelable sales contracts or lease commitments from creditworthy, independent third parties are currently in effect that will provide sufficient net cash flow on completion of the project to service normal loan amortization, that is, principal and interest. Any associated conditions should be probable of attainment. ##### [310-10-25-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:413765c97e51be057cd0ca86e2baa7b91f3c9c74b5ab5cab2dd5220dc4503fdd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some acquisition, development, and construction arrangements include personal guarantees of the borrower and/or a third party. The existence of a personal guarantee alone rarely provides a sufficient basis for concluding that an acquisition, development, and construction arrangement should be accounted for as a loan. In instances where the substance of the guarantee and the ability of the guarantor to perform can be reliably measured, and the guarantee covers a substantial amount of the loan, concluding that an acquisition, development, and construction arrangement supported by a personal guarantee should be accounted for as a loan may be justified. ##### [310-10-25-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:c8764549b2de8762cf5de89e395647d4bb7ed7e58c808b0ff7555bb2a5650343 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The substance of a personal guarantee depends on all of the following: 1. a The ability of the guarantor to perform under the guarantee 2. b The practicality of enforcing the guarantee in the applicable jurisdiction 3. c A demonstrated intent to enforce the guarantee. ##### [310-10-25-23](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:be5be0b4116a751988996e659792862cb326f072bff3715b246ba39a42a0ceb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of personal guarantees that have the ability to perform would include those supported by liquid assets placed in escrow, pledged marketable securities, or irrevocable letters of credit from a creditworthy, independent third party in amounts sufficient to provide necessary equity support for an acquisition, development, and construction arrangement to be considered a loan. In the absence of such support for the guarantee, the financial statements and other information of the guarantor may be considered to determine the guarantor's ability to perform. ##### [310-10-25-24](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:054ec50d7230b28495c7f270423386460075443abf56bf76814c512220f8db45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Particular emphasis should be placed on the following factors when considering the financial statements of the guarantor: 1. a Liquidity and net worth of the guarantor. There should be evidence of sufficient liquidity to perform under the guarantee. There may be little substance to a personal guarantee if the guarantor's net worth consists primarily of assets pledged to secure other debt. 2. b Guarantees provided by the guarantor to other projects. If the financial statements do not disclose and quantify such information, inquiries should be made as to other guarantees. Also, it may be appropriate to obtain written representation from the guarantor regarding other contingent liabilities. ##### [310-10-25-25](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:b98018e9d65c87c98472e11fda1bfe810462dfc925208efedce889fd715d5430 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The enforceability of the guarantee in the applicable jurisdiction should also be determined. Even if the guarantee is legally enforceable, business reasons that might preclude the lender from pursuing the guarantee shall be assessed. Those business reasons could include the length of time required to enforce a personal guarantee, whether it is normal business practice in that jurisdiction to enforce guarantees on similar transactions, and whether the lender must choose between pursuing the guarantee or the project's assets, but cannot pursue both. ##### [310-10-25-26](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:14187ed3650248cf6c74c935edbe6bb65e84ce07f76a67f6fb1bcc587109e833 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some acquisition, development, and construction arrangements recognize value, not funded by the lender, for the builder's efforts after inception of the arrangement, sometimes referred to as sweat equity. Sweat equity is not at risk by the borrower at the inception of an acquisition, development, and construction project. Consequently, sweat equity shall not be considered a substantial equity investment on the part of the borrower in determining whether the acquisition, development, and construction arrangement should be treated as a loan. #### Accounting for an Arrangement as a Loan or an Investment in Real Estate ##### [310-10-25-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:838aed5fceeee2b8b28264293ea26063d690ab4c40f844cf41b98cf16acd5393 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquisition, development, and construction arrangement shall be accounted for as follows: 1. a If the lender is expected to receive over 50 percent of the expected residual profit from the project, the lender shall account for income or loss from the arrangement as a real estate investment as specified by Topic 970. 2. b If the lender is expected to receive 50 percent or less of the expected residual profit, the entire arrangement shall be accounted for either as a loan or as a real estate joint venture, depending on the circumstances. At least one of the characteristics identified in paragraph [310-10-25-20(b) through (e)](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-20) or a qualifying personal guarantee shall be present for the arrangement to be accounted for as a loan. Otherwise, real estate joint venture accounting would be appropriate. ##### [310-10-25-28](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:f4fa0ce8cc1b31babb243a7d13cd36a999bb508e42316129c9ee291fdb77d6da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the arrangement is accounted for as a loan, interest and fees shall be recognized as income subject to recoverability. Topic 974 provides guidance that may be relevant in assessing the recoverability of such loan amounts and accrued interest. ##### [310-10-25-29](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:16aeff0f7e468172e9094158d46b65aae52c6fce0b06b989a63d7e1ac7346df9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the arrangement is accounted for as a real estate joint venture, the provisions of Subtopics 970-323 and 835-20 provide guidance for such accounting. In particular, paragraph [970-835-35-1](https://asc.understandingaccounting.org/asc/835/970/#835-970-35-1) provides guidance on the circumstances under which interest income shall not be recognized. #### Participations in Acquisition, Development, and Construction Arrangements ##### [310-10-25-30](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:54.968Z to 2026-09-09T23:24:54.968Z Record version: sha256:4f5aa0939227ff23835c90d0507cae3cbe66b9aabedbb5ed4e710b5510eaec2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Many participations in loans or whole loans are bought and sold. The accounting treatment for a purchase that involves acquisition, development, and construction arrangements shall be based on a review of the transaction at the time of purchase in accordance with this guidance. In applying this guidance, a participant would look to its individual percentage of expected residual profit. For example, a participant who will not share in any of the expected residual profit is not subject to this guidance. However, the responsibility to review collectibility and provide allowances applies equally to purchased acquisition, development, and construction arrangements. Any reciprocal transactions between institutions, including multiparty transactions, shall be viewed in their entirety and accounted for in accordance with their combined effects. Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:2e8d970bdfa4f7ebddba88ede009c768c243de31ddae1e0f95a9f7017c2cb0c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/10/#30-initial-measurement) SEC content: no #### Certain Receivables ##### [310-10-30-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:0313672a8395ce1ebed1073f817c6a36749f561f2e7c1f3e66af6c49234181c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following provides initial measurement guidance for certain notes receivable, specifically those exchanged for cash and those exchanged for property, goods, or services. Such notes may be originated by an entity or purchased from a third party. ##### [310-10-30-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:a0b4ec56b136692516a4c0dcd6779f4e76e4e863c8b2e742af76c994d00f2a3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-4](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-4), when a note is received solely for cash and no other right or privilege is exchanged, it is presumed to have a present value at issuance measured by the cash proceeds exchanged. If cash and some other rights or privileges are exchanged for a note, the value of the rights or privileges shall be given accounting recognition as described in paragraph [835-30-25-6](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-6). ##### [310-10-30-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:ecfd47497f0a553882d410b0396139fc85b8aa8cb32e66ccf0f70666b2b324d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-8](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-8), notes exchanged for property, goods, or services are valued and accounted for at the present value of the consideration exchanged between the contracting parties at the date of the transaction in a manner similar to that followed for a cash transaction. ##### [310-10-30-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:69476dd6d458ccb81f4527ecac11d2dd6fc9b4a390ed063565c318d4e285fee7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-2](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-2), if determinable, the established exchange price (which, presumably, is the same as the price for a cash sale) of property, goods, or services acquired or sold in consideration for a note may be used to establish the present value of the note. That paragraph explains that, when notes are traded in an open market, the market rate of interest and quoted prices of the notes provide the evidence of the present value. That paragraph notes that these methods are preferable means of establishing the present value of the note. ##### [310-10-30-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:40512cb121a3e8f8411bdbf4483401b5e2cfc5331b0a87da6900aca8ec647e45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [835-30-25-10](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-10), in circumstances where interest is not stated, the stated amount is unreasonable, or the stated face amount of the note is materially different from the current cash sales price for the same or similar items or from the [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.") of the note at the date of the transaction, the note, the sales price, and the cost of the property, goods, or services exchanged for the note shall be recorded at the fair value of the property, goods, or services or at an amount that reasonably approximates the fair value of the note, whichever is the more clearly determinable. ##### [310-10-30-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:facd0b3062785fe7384f9f5d135d050f59d61ef63973cc45e73bf8569f3c0e69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [835-30-25-11](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-11) explains that, in the absence of established exchange prices for the related property, goods, or services or evidence of the fair value of the note (as described in paragraph [835-30-25-2](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-2)), the present value of a note that stipulates either no interest or a rate of interest that is clearly unreasonable shall be determined by discounting all future payments on the notes using an imputed rate of interest as described in Subtopic 835-30. Paragraph [835-30-25-11](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-11) explains that this determination shall be made at the time the note is acquired; any subsequent changes in prevailing interest rates shall be ignored. #### Standby Commitments to Purchase Loans ##### [310-10-30-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-30-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:24:57.951Z to 2026-09-09T23:24:57.951Z Record version: sha256:1debc9e8823417c72f7e3f75d15d8fb3d450c122cc38d651881bec753f8d7a08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a standby commitment to purchase loans is viewed under paragraph [310-10-25-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-6) as part of the normal production of loans, an entity shall record loans purchased under the standby commitment at cost on the settlement date, net of the standby commitment fee received, in conformity with Subtopic 310-20. If a standby commitment is accounted for as a written option as discussed in paragraph [310-10-25-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-6), the option premium received (standby commitment fee) shall be recorded as a liability representing the fair value of the standby commitment on the trade date. Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f1948a149e0293f24207bc2b1b01d3cd4364253b8ed0c7988964850756806464 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/10/#35-subsequent-measurement) SEC content: no ##### [310-10-35-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:8e83cb99e78cc762eca712abd4ffff7bb7de340e653a537e5cbcff334d203a16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:1745a2992ba7a97343d02f659e1494c4c372ed84b23c4e8dcf776910c900c1e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ca3e8a793c352fa63f564ab868499f0b96a599a0d1f05be920729e78cfe8237c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e3aee3fd9dd0a596d88f2b1b5f97709e34cafc2e9241c97fea3bfc2ad47148d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:5a8a65cd45c550f7320c6334c514596480471d19e8d2b876c224026823c83869 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:149dd780b3924cc3c397d03379e10a33a50a959b9283861a99719c2277847292 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:b8512f43a5772c8399a06bf6d77643272f1c8d88c30be031270c69e6c5d0a3ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:8c574e7efea42670f2b85fa9a5248c2098fe56872e9344752d2960e45fd3a348 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:df13dbdb81d268503209feb8642b2a462cdf9d7caa651fc4b62c77e1c6031e95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:33e2ed88df24bf0b6e6f1309d4ae0feebcb56ff988311e2200ec516c305ebc1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:054db335cf9d31275cbf61f98b2902fbb163333897af89018d15ec5c718ef0f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:26a00110fa9e3f425d074917b47128fae9c5f94a6824774a38a7f8eb4d17b6f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:51cc300f5228e580a6eb1a1360185379ea0fee247a89bb7f1c72e06f558ffe78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:abed3e98ec9b7d321e7d5f9cf7eeb8d401aec89086bffb7aacd894edfade1c58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:557c745c93a5e88865f46ec1926462abad79336683ae9073d2376038dfa21af0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:2811603ff8af7d3040cabbcd962bd1c12397e19ba661659a7f7867a61ae96fcd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:de618b61147fa12001c4b4996c1c887f440ce3337c3179300422e23ea61f8fe0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e8962b37b7d12e613ee3f8b3b274d9b3c6369fc24b03bc75ec3404690e4ca7da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f97bc302eda5d3a0cbe4784fe135d0f0e8bd86a50f376e979cd988fe02c77f74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:9ca61597ab9498a55330f9688ed5f4552fc37cedf0b4a2f0a80064d26336a087 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:45a18f9fd6c3758a987ee4437eb5b1de5b4f0bf55b97996076f19771fcfdb98e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:b5fc40a71b7ebdc7686a0c142f8f76572552bf96358b43e326c0d9fe4c046e2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-23](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:fc42fe33835bae63ef99849e6191b651be3590430ecf95aa9215aa572f2657af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-24](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:c17abf6beb7ed76d26c9d226ad60032f4ef1f631b962ed5e209814de08dc9023 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-25](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:af57a94c0419c774390d757bd253e756117ce427733aac55d28c16e7c4a401c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-26](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:22b68f9ac3447ee0e424b8056eeaaca5eeafa73f14e252b758f73f1abdac5f5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e5d73f9f4e80916f434cb34b904d2e200136b2852134d7a87d650c2e1b597aa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-28](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:43f9c73c70057dafe1fbdc370d382ee5ef2b7585a004e54fcddf8c4d8f01dfdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-29](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e6b5c3b38b52ed59a41ba4468ede1413e656ca47759b0cf25c0ccacccd903d01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-30](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:d799c071ca64a28e940d753ef0baacfbbf5f3162b3a21b8fcf84ff89effd083f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-31](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:011627c5956962524c16685c24adc7e3860f32427faca70f8a99da93698da719 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-31A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-31A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:390e7cc905e40e10bd71c10f619ce129ad27f4ec5fcf5f50f24c580271bfc42d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-25-35-11](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-11) also explains that an entity shall not adjust the recorded investment or the discount rate of the individual assets or individual beneficial interest included in the closed portfolio for a basis adjustment that is maintained on the closed portfolio basis in accordance with paragraph [815-25-35-1(c)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1). ##### [310-10-35-32](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:317a5d35e3a9710246c4781ec61b65f249844189cabb55f055a3ae12cb33f79d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-33](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:77b1957fc0bcf29b404e3dc1e4bb8ff7966a9f6dfef1f10ab61c00c0d9d168a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-34](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ee32d6484e179fa92c5ac491793fb1e6e5095bd8f09922f1b8dc764473f160d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-35](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:d6d78090c1de691fc5e5bbf5c43b5439b78e307b85b65a09964e8c9125e77851 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f154ab8ae99fafc2b1b9e6b4c0440d49899a5da8d66bcf2fb07f904748bb74f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-37](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:d189ca72c75f782fae0aa43c449afa060fa5e743f769583d15f8ae25fdd2a4d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-38](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ff9eb5f34ea72f359bbf7887b9cfec2419d0a307487f4eeaf1a028c4485038f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-39](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:5cedee94d7b4cbb95c498d3a53afdd4dec14821f8bd39f5e892bf038356b508b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-40](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:26ed649d23114bb00d48ccd405d433fda669b0999b5b9b50610671f8c2765085 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-41](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f8ef641e060a575788122fd411f1602c6f637c7aa7cc572fe1257b53f2f4bc55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-42](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:307be86cc48d8c784c73d8f1b3a8ef804df4c46fc1d30d4981571e3eb650298f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-43](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-43) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:794311792bf9d2078f283b543effe1f63e173a92e4f80b5261794aae9806541e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Subsequent Measurement of Specific Types of Receivables ##### [310-10-35-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-44) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:54b17496e7a3103d99dfdd6f0743312b88f40b237fc91e764e68c3958c76ebce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following provides guidance on aspects of subsequent measurement for various types of receivables, specifically: 1. a Financial assets subject to prepayment 2. b Standby commitments to purchase [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.") 3. c Loans and trade receivables not held for sale 4. d Nonmortgage loans held for sale 5. e Loans not previously held for sale 6. f Amortization of discount or premium on notes 7. g Premium allocated to loans purchased in a credit card portfolio 8. h Hedged portfolios of loans 9. i Interest income. ##### [310-10-35-45](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-45) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:65f02ab6355514b61abcf3ebea83e7f57fce399c100338ceacf6724906aa69d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) requires that financial assets, except for instruments that are within the scope of Subtopic 815-10, that can contractually be prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment be subsequently measured like investments in debt securities classified as available for sale or trading under Topic 320. ##### [310-10-35-46](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-46) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:47a9c00ae6765b70d274052dbdd8fac687f45021a03d08526d12a354ff8ba5d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This paragraph applies only to standby commitments to purchase loans. It does not apply to other customary kinds of commitments to purchase loans, nor does it apply to commitments to originate loans. If a standby commitment is recorded at the amount of the option as discussed in paragraph [310-10-25-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-6), the liability recorded at the amount of the option premium received (representing the [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.") of the standby commitment on the trade date) shall thereafter be accounted for at the greater of the initial standby commitment fee or the fair value of the written put option. Unrealized gains (that is, recoveries of unrealized losses) or losses shall be credited or charged to current operations. However, see Subtopic 815-10 for guidance on accounting for written put options that are within the scope of that Subtopic. ##### [310-10-35-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-47) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:49e2dc82106c868a3ce60230e513e468c173269541e5c14264448d562a79b078 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Trade receivables that management has the intent and ability to hold for the foreseeable future or until maturity or payoff shall be reported in the balance sheet at [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments."). (Discounts offered as a result of the pricing of a sale or a product or service may be termed sales discounts. This Subsection does not address these discounts.) For financial instruments measured at amortized cost basis, see Subtopic 326-20 for additional guidance on credit losses. ##### [310-10-35-47A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-47A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:2e70cf6c66ff950c3be5858dc2940f6156d955afaa46ed52c5556f1d9dd14c03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nonmortgage loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff shall be reported in the balance sheet at their amortized cost bases. See Subtopic 326-20 for guidance on the measurement of credit losses for financial instruments measured at amortized cost basis. See Topic 948 for guidance on mortgage loans classified as held-for-long-term-investment. ##### [310-10-35-48](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:0b2c68b3d17a19b2cdeca492f30d245c619d4619c3cabaa52c0612341589bdbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nonmortgage loans held for sale shall be reported at the lower of amortized cost basis or fair value. The amount by which amortized cost basis exceeds fair value shall be accounted for as a valuation allowance. Changes in the valuation allowance shall be included in the determination of net income of the period in which the change occurs. This paragraph applies only to nonmortgage loans. See Topic 948 for guidance related to mortgage loans classified as held for sale. ##### [310-10-35-48A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:4adca2c04b5426f1d253b588f2f27e7db48a2b3541222124d7f3b64e18256eb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a nonmortgage loan that is transferred into the held-for-sale classification from the nonmortgage loan not-held-for-sale classification, an entity shall reverse in earnings any allowance for credit losses previously recorded on the nonmortgage loan not held for sale at the transfer date. An entity shall then reclassify and transfer the nonmortgage loan into the held-for-sale classification at its amortized cost basis (which is reduced by any previous writeoffs but excludes any allowance for credit losses). An entity shall then determine if a valuation allowance is necessary by following the guidance in Subtopic 310-10. ##### [310-10-35-48B](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:ba288359875b0bb9c800ececf73a20a052b56b20127bcca8221c5804c380054c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a nonmortgage loan that is transferred into the not-held-for-sale classification from the nonmortgage loans held-for-sale classification, an entity shall reverse in earnings any valuation allowance previously recorded on the nonmortgage loan held for sale at the transfer date. An entity shall then reclassify and transfer the nonmortgage loan into the not-held-for-sale classification at its amortized cost basis (which is reduced by any previous writeoffs but excludes any valuation allowance). An entity shall then determine if an allowance for credit losses is necessary by following the guidance in Subtopic 326-20. ##### [310-10-35-49](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-49) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:144ed24024bf5a32b4b4924324c90d19bdb6b686630001fdc660f870f8e62cad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-35-50](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-50) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:3a1542717f064974a2e47d8215cbaebf428f2cc08c518454134645224688e62a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [835-30-35-2](https://asc.understandingaccounting.org/asc/835/30/#835-30-35-2) for guidance related to amortization of discounts or premiums. ##### [310-10-35-51](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-51) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:f9f824cbc0c241767af164e7ab2c78c357a18436331dce0e8eed2225099c50e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 835-30 for further guidance on situations in which interest shall be imputed. ##### [310-10-35-52](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-52) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:1b99fa6d1ef4a086729a8babf012647a923ca7720e40613fb28e35f169f53c93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an entity purchases a credit card portfolio that includes the cardholder relationships as discussed in paragraph [310-10-25-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-7), at an amount that exceeds the sum of the amounts due under the credit card receivables, the premium allocated to the loans shall be amortized over the life of the loans in accordance with Subtopic 310-20. If the credit card agreement provides for a repayment period beyond expiration of the card if the card is not renewed, that period shall be considered in determining the life of the credit card loan. ##### [310-10-35-53](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:e9617cb93d462264b465638dbe79ab6d539bdde7883f50b02f429593f87865c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities sometimes wish to hedge risk associated with portfolios of loans or specific loan cash flows. See Section 815-20-55 for implementation guidance in such situations. ##### [310-10-35-53A](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:2eb979f11b27977f4d32d8d86db5cd5a46f070bf0508739f4adadcf1f90df3d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as noted in paragraphs [310-10-35-53B through 35-53C](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53B) , this Subsection does not address how a creditor should recognize, measure, or display interest income on a financial asset with a credit loss. Some accounting methods for recognizing income may result in an amortized cost basis of a financial asset that is less than the amount expected to be collected (or, alternatively, the fair value of the collateral). Those accounting methods include recognition of interest income using a cost-recovery method, a cash-basis method, or some combination of those methods. ##### [310-10-35-53B](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53B) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:3372124e7899fafa38f1e2f9e13472e9a04420f20efcb4a62e90fb7338b40e8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When recognizing interest income on [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.") within the scope of Topic 326, an entity shall not recognize as interest income the discount embedded in the purchase price that is attributable to the acquirer's assessment of expected credit losses at the date of acquisition. The entity shall accrete or amortize as interest income the non-credit-related discount or premium of a purchased financial asset with credit deterioration in accordance with existing applicable guidance in Section 310-20-35 or 325-40-35. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [326-10-65-7](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-7)When recognizing interest income on [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.")and [purchased seasoned loans](https://asc.understandingaccounting.org/glossary/p/#purchased-seasoned-loans "(P) December 16, 2026; (N) December 16, 2026 326-10-65-7 Paragraphs 326-20-30-16326-20-30-17326-20-30-18 define the term purchased seasoned loans.") within the scope of Topic 326, an entity shall not recognize as interest income the discount embedded in the purchase price that is attributable to the acquirer's assessment of expected credit losses at the date of acquisition. The entity shall accrete or amortize as interest income the non-credit-related discount or premium of a purchased financial asset with credit deterioration and a purchased seasoned loan in accordance with existing applicable guidance in Section 310-20-35 or 325-40-35. ##### [310-10-35-53C](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-53C) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:77015e22b78db7b7a60bf60358fca71dc98b8a2b053bbf58d0d8bf9811b3da02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Recognition of income on purchased financial assets with credit deterioration is dependent on having a reasonable expectation about the amount expected to be collected. Subsequent to purchase, this Subtopic does not prohibit placing financial assets on nonaccrual status, including use of the cost recovery method or cash basis method of income recognition, when appropriate. For example, if the timing of either a sale of the financial asset into the secondary market or a sale of collateral in essentially the same condition as received upon foreclosure is indeterminate, the creditor likely does not have the information necessary to reasonably estimate cash flows expected and shall cease recognizing income on the financial asset. However, the ability to place a financial asset on nonaccrual shall not be used to circumvent recognition of a credit loss. If the financial asset is acquired primarily for the rewards of ownership of the underlying collateral, accrual of income is inappropriate. Such rewards of ownership would include use of the collateral in operations of the entity or improving the collateral for resale. Consistent with paragraph [310-20-35-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18), interest income shall not be recognized to the extent that the net investment in the financial asset would increase to an amount greater than the payoff amount. ### Acquisition, Development, and Construction Arrangements ##### [310-10-35-54](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-54) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:4ec46ac0595683cdbd58ae594db332fd387362ff7735451edabe0bdd8506298f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides the following subsequent measurement guidance: 1. a Lender interest in [expected residual profit](https://asc.understandingaccounting.org/glossary/e/#expected-residual-profit "The amount of profit, whether called interest or another name, such as equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender.") 2. b Changes in initial determination factors 3. c Other matters. #### Changes in Initial Determination Factors ##### [310-10-35-55](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-55) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:c49683094cefcf2d81f03a87bd4708012fecfb093148b5506a7aa1301f0dc6e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The factors that were evaluated in determining the accounting treatment at inception subsequently change for some acquisition, development, and construction arrangements, for example, as a result of a renegotiation of the terms. Consequently, the accounting treatment for an acquisition, development, and construction arrangement shall be periodically reassessed. ##### [310-10-35-56](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-56) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:3a9797f6f9b45d387d7e06045c096630f66d56e781b48a57b0cb3177709f88ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquisition, development, and construction arrangement originally classified as an investment or joint venture could subsequently be treated as a [loan](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.") if the risk to the lender diminishes significantly, and the lender will not be receiving over 50 percent of the expected residual profit in the project. The lender shall demonstrate a change in the facts relied upon when initially making the accounting decision, not just the absence of, or reduced participation in, the expected residual profit. For instance, risk may be reduced if a valid take-out commitment from another lender who has the capability to perform under the commitment is obtained and all conditions affecting the take-out commitment have been met, thus assuring the primary lender recovery of its funds. ##### [310-10-35-57](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-57) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:45c05d805c5d5a1d8cf82494d25adb135ca7ae34004e9ba74626e868ffe8a59b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Conversely, if the lender assumes further risks or rewards in an acquisition, development, and construction arrangement by, for example, releasing collateral supporting a guarantee or increasing its percentage of profit participation to over 50 percent, the lender's position may change to that of an investor in real estate. ##### [310-10-35-58](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-58) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:6c005a03d30497e342ecf5ee4702cf09ebfa9ed44d54e2e1fae9d4f8fea90feb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Neither an improvement in the economic prospects for the project or successful, ongoing development of the project nor a deterioration in the economic prospects for the project justifies a change in classification of an acquisition, development, and construction arrangement. ##### [310-10-35-59](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-59) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:034754ba522bd3a1c7572e231e4e218362e7f394e98097f62eaf732342a37c86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A change in classification is expected to occur infrequently and shall be supported by appropriate documentation. The change in factors in an acquisition, development, and construction arrangement shall be evaluated based on the guidance in this Subsection and accounted for prospectively. ##### [310-10-35-60](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-60) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:525a045942b71409c356cc16069274a0cc55c4cd5b18b66775c15a052448fd1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an acquisition, development, and construction arrangement accounted for as a real estate joint venture continues into a permanent phase with the project generating a positive cash flow and paying debt service currently, income shall be recognized in accordance with Topic 970. #### Other Matters ##### [310-10-35-61](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-61) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:01.440Z to 2026-09-09T23:25:01.440Z Record version: sha256:bc507f232622b2186cfc2a908297608a9f574cbabaa2b20c70eb476fc3e7fbaf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Regardless of the accounting treatment for an acquisition, development, and construction arrangement, management shall on a continuing basis review the collectibility of uncollected principal, accrued interest, and fees and provide for appropriate allowances. Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:679d219cb9356ce08a395b2d49fba3738ee89a3798c294df9ba1225241a84fd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/10/#40-derecognition) SEC content: no #### Transfers of Receivables ##### [310-10-40-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:28ab60322e07e1f0f6e2ae204bf1da053ed013199d6bb6c705575f228edd12a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Topic 860 for guidance on a transferor's accounting for transfers of receivables. Subtopic 860-10 establishes criteria that are required to be satisfied for derecognition of a transferred asset. Subtopic 860-20 provides guidance for accounting for transfers of assets, including accounting for transfers of receivables in securitization transactions, transfers of receivables with [recourse](https://asc.understandingaccounting.org/glossary/r/#recourse "The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: Failure of debtors to pay when due The effects of prepayments Adjustments resulting from defects in the eligibility of the transferred receivables."), and factoring arrangements. #### Classification and Measurement of Certain Government-Guaranteed Mortgage Loans upon Foreclosure ##### [310-10-40-1A](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:62d796dadf50de3b26bf8ecf3c187bd2fee56c26e267a7d2339713250fb8945c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the classification and measurement of certain government-guaranteed mortgage loans upon foreclosure by a creditor, see paragraphs [310-20-40-7 through 40-8](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-7) . ### Acquisition, Development, and Construction Arrangements ##### [310-10-40-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:d55387f3dde2612f1bb07e5411eb894c89b9838f00291742520169374c4cf764 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides derecognition guidance related to the sale of a lender's interest in [expected residual profit](https://asc.understandingaccounting.org/glossary/e/#expected-residual-profit "The amount of profit, whether called interest or another name, such as equity kicker, above a reasonable amount of interest and fees expected to be earned by a lender."). ##### [310-10-40-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:493b75eb67f0db21d2dae8af057d8d7748d3dac34ea21721addd99084d0448da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The lender's share of the expected residual profit in a project may be sold to the borrower or a third party for cash or other consideration. If the expected residual profit in an acquisition, development, and construction arrangement accounted for as a [loan](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.") is sold, the proceeds from the sale shall be recognized prospectively as additional interest over the remaining term of the loan. The expected residual profit is considered additional compensation to the lender, and the sale results in a quantification of the profit. ##### [310-10-40-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:6fed196e75e3ffdc1168e96ea04195a30fece2ac11020cc98d7c65bded29053f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an acquisition, development, and construction arrangement is accounted for as an investment in real estate or joint venture and the expected residual profit is sold, the entity shall apply the guidance in Topic 860 on transfers and servicing. ##### [310-10-40-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-40-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:03.641Z to 2026-09-09T23:25:03.641Z Record version: sha256:65e5da3f8a930bcfb90fbdacea4f845a6df151167ef96b220a0afd32a5f3c239 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a financial institution was the seller of the property at the initiation of the project, the entity shall apply the guidance in paragraphs [360-10-40-3A through 40-3B](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3A) . However, if the sale is part of a sale and leaseback transaction, gain recognition, if any, should be determined by reference to Subtopic 842-40. Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:8b53165041fe94d2402fba2d6829831e7fa8a7aab22cf11afe1f44920138700f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/10/#45-other-presentation-matters) SEC content: no ##### [310-10-45-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:d1ab00fb1fe10f01cc0abff9b4083d6a1d2f268a9f4eedb4c9c17eb8166d9a01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides guidance on presentation matters for receivables, specifically: 1. a [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.") or trade receivables 2. b Foreclosed and repossessed assets 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 5. e Discount and premium 6. f Unearned discounts 7. g Receivables classified as current assets 8. h Cash flows 9. i Receivables from officers, employees, or affiliates 10. j Note received as an equity contribution. #### Nonmortgage Loans or Trade Receivables ##### [310-10-45-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:29a60ecb68d124670e5c5ded1492d3c10ef39a9e54ec6696bf7b1c27270280d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nonmortgage loans or trade receivables may be presented on the balance sheet as aggregate amounts. However, such receivables held for sale shall be a separate balance sheet category. Major categories of nonmortgage loans or trade receivables shall be presented separately either in the balance sheet or in the notes to financial statements. An entity shall present the amounts reversed or established for the valuation allowance and the allowance for credit losses, as applicable, related to the transfer of nonmortgage loans (see paragraphs [310-10-35-48A through 35-48B](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-48A) ) on a gross basis in the income statement. An entity may present those amounts on the income statement or in the notes to financial statements. #### Foreclosed or Repossessed Assets ##### [310-10-45-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:7771fed42bd5c66f158a02d3129ab23fecdf1d6e4f31a30c433ed2d3be2e82dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Foreclosed and repossessed assets shall be classified as a separate balance sheet amount or included in other assets on the balance sheet with separate disclosures in the notes to financial statements. Certain returned or repossessed assets, such as inventory, shall not be classified separately if the assets subsequently are to be utilized by the entity in operations. ##### [310-10-45-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c2a61116d8c92ef02f9679edf77ff0db594d6379c4156f203e796d182bf34e7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/updates/asu-2012-04/). ##### [310-10-45-4A](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-4A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:3fcb79239d5647fb104d956f0e46eb9c0551245900a8a7b4076496495c0dd0cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-45-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c15af8f2073ef35a08f7e7578f5d4466c653c6b7024964f3b998fb0dabb61fb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-45-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:d780f0679db683fe1112de154aae59bd2dd592ed313236ea82d1b14d121f403c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Discount and Premium ##### [310-10-45-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:5e14e8184e2eefbef9f6804f855f8e4aa8791cbf08963525f4b422dba5ddd3d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [835-30-45-1A through 45-4](https://asc.understandingaccounting.org/asc/835/30/#835-30-45-1A) for guidance on presentation matters related to the discount or premium on a note. #### Unearned Discounts ##### [310-10-45-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:6ab00e6ceaf641006bb2153d9382df2a761c86f4ba055f8e4d06ef32776dd9e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unearned discounts (other than cash or quantity discounts and similar items), finance charges, and interest included in the face amount of receivables shall be shown as a deduction from the related receivables. #### Receivables Classified as Current Assets ##### [310-10-45-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:9ae34a5c63ba4ebe9829551d91d850c04d3b793c1b4913c340e799833ee7c056 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in its definition for accounting purposes, the term [current assets](https://asc.understandingaccounting.org/glossary/c/#current-assets "Current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. See paragraphs 210-10-45-1210-10-45-2210-10-45-3210-10-45-4.") is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. Paragraph [210-10-45-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-45-1) notes that the term current assets comprehends the following types of receivables: 1. a Trade accounts, notes, and acceptances receivable 2. b Receivables from officers, employees, affiliates, and others, if collectible in the ordinary course of business within a year 3. c Installment or deferred accounts and notes receivable if they conform generally to normal trade practices and terms within the business. See Section 210-10-45 for further guidance on the required presentation of current assets in the balance sheet. #### Cash Flows ##### [310-10-45-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:08e6e79b4fac62e5dcaa5384d8d53017f8bb4cc12aafc39f23cc3f3d6c5c34ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [230-10-45-16](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-16) states that cash receipts from returns on loans, other debt instruments of other entities, and equity securities—interest and dividends shall be classified in the statement of cash flows as cash inflows from operating activities. ##### [310-10-45-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c1fc566884addd255f063c72f4c270bea1ddae430be6513f1436ea4f5d6677fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [230-10-45-11](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-11) states that cash flows from purchases, sales, and maturities of available-for-sale debt securities shall be classified as cash flows from investing activities and reported gross in the statement of cash flows. Paragraph [230-10-45-21](https://asc.understandingaccounting.org/asc/230/10/#230-10-45-21) states that some loans are similar to debt securities in a trading account in that they are originated or purchased specifically for resale and are held for short periods of time. ##### [310-10-45-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:e4fd4d82c552cff1c3219f871af2bd65e4856e5d0587349a6089262691f24a07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Topic 230 for further guidance on the classification of cash flows from receivables in the cash flow statement. #### Receivables from Officers, Employees, or Affiliates ##### [310-10-45-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:c663dfa87f6db8b7771b2bac93ce02ef12e5b9fee0d9fc91a0dfe2100c69f7e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [850-10-50-2](https://asc.understandingaccounting.org/asc/850/10/#850-10-50-2), notes or accounts receivable due from officers, employees, or affiliated companies shall be shown separately and not included under a general heading such as notes receivable or accounts receivable. #### Note Received as an Equity Contribution ##### [310-10-45-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:39c9e45d2e37312b93233fe1bfd520a5c2ad16e97203e8cd56ca7fb99c61d8e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on a note received as a contribution to an entity's equity, see paragraph [505-10-45-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-45-2). ### Acquisition, Development, and Construction Arrangements ##### [310-10-45-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:06.148Z to 2026-09-09T23:25:06.148Z Record version: sha256:970ca094b85d91a668484d231b5a53991e0e36b70b837ac94da4edc9e5623d0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Acquisition, development, and construction arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property.") accounted for as investments in real estate or joint ventures shall be combined and reported in the balance sheet separately from those acquisition, development, and construction arrangements accounted for as loans. Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ff5243c443e2ac838ca65083ff834ff58e20ec1515762d7dfc73a11d28e5a3d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/10/#50-disclosure) SEC content: no ##### [310-10-50-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:9dcddc91f4fb3e6b1c86bcdc1232c4c1f6aebabc9d7a878015de6ada6366bb23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides the following disclosure guidance for receivables, off-balance-sheet credit exposures, and foreclosed and repossessed assets: 1. a Accounting policies for loans and trade receivables 2. b Assets serving as collateral 3. c [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 5. e Foreclosed and repossessed assets 6. f [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 7. g [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 8. h [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 9. i Risks and uncertainties 10. j [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.") disclosures 11. k [Subparagraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). 12. l Modifications. #### Accounting Policies for Loans and Trade Receivables ##### [310-10-50-1A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:30f827990bad9e4b604c5b5e79a0e1191489dbe1a632d8eb0a02249e56bdbcfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [310-10-50-2 through 50-4A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-2) applies only to the following [financing receivables](https://asc.understandingaccounting.org/glossary/f/#financing-receivable "A financing arrangement that has both of the following characteristics: It represents a contractual right to receive money in either of the following ways: On demand On fixed or determinable dates. It is recognized as an asset in the entity's statement of financial position. See paragraphs 310-10-55-13310-10-55-14310-10-55-15 for more information on the definition of financing receivable, including a list of items that are excluded from the definition (for example, debt securities)."): 1. a Loans 2. b Trade receivables. ##### [310-10-50-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:a588055c186d282d80da929f0ceabab727075a589be9bbbed9479d890758ca82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The summary of significant accounting policies shall include the following: 1. a The basis for accounting for loans and trade receivables 2. b The method used in determining the lower of [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") or fair value of nonmortgage loans held for sale (that is, aggregate or individual asset basis) 3. c The classification and method of accounting for interest-only strips, loans, other receivables, or retained interests in securitizations that can be contractually prepaid or otherwise settled in a way that the holder would not recover substantially all of its [recorded investment](https://asc.understandingaccounting.org/glossary/r/#recorded-investment "The amount of the investment in a loan, which is not net of a valuation allowance, but which does reflect any direct write-down of the investment. However, if a loan is a hedged item in a fair value hedge, the amount of that loan's recorded investment should include the unamortized amount of the cumulative fair value hedge adjustments.") 4. d The method for recognizing interest income on [loan](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.") and trade receivables, including a statement about the entity's policy for treatment of related fees and costs, including the method of amortizing net deferred fees or costs. ##### [310-10-50-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:29cffedde43c6a3d02dceeb6e321af181317f6331c380d8b633f6a7da3edabf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If major categories of loans or trade receivables are not presented separately in the balance sheet (see paragraph [310-10-45-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-2)), they shall be disclosed in the notes to the financial statements. ##### [310-10-50-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:488b5424a2bbdf8686b56b22725f10618541c638c7402178d6f7771ba1075da8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The allowance for credit losses and, as applicable, any unearned income, any unamortized premiums and discounts, and any net unamortized deferred fees and costs, shall be disclosed in the financial statements. ##### [310-10-50-4A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-4A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ad5b59f8f1efccf392a419be400f116a239acab6e543f8d5a4d99218e6ebf4a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Assets Serving as Collateral ##### [310-10-50-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:45b5cc61003ae2d192f3e9ba73316e44e900a2b07d286aad5bb71a256592acfd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For required disclosures of the carrying amount of loans, trade receivables, securities and financial instruments that serve as collateral for borrowings, see paragraph [860-30-50-1A](https://asc.understandingaccounting.org/asc/860/30/#860-30-50-1A). ##### [310-10-50-5A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:10d061ee3a7f78e181d505a6105a7f5737824b942653e6ef437bb27be5cbe713 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-5B](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-5B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:cb5bb0d73b39d44eb47efc1378c58f61afc7a11519cb99658c0ddf3d85fa6400 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:e38b4ba7aa7c02fb88da6772e8e16caa6521b48b535b8b99967aca6b8ef7460b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ac19b3fc2dd4b3dd160161e9322b23fcf8ffaba8bf8e999c79b091e8f58f7cce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-7A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-7A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:5d792c63f24bee182173ab141d64733b35f97ccdc38c445d9f1144e0a1fcc862 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-7B](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-7B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:578244005aab4c096bd436d2a18a760a349652431c5e8cca83f274b2f5811d58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8db7325c4b20f50980d83c8002d2a454ea4ac60f9d922503abcaa74dce79925f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2e362a264c1bf77d509a0ec2157f1ef64f33f8ea522578e75175a1aba6a92aae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:22cf680d7799eebecd8df75be3f081745d52b847fb0bb094c5e51ba609dd2442 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Foreclosed and Repossessed Assets ##### [310-10-50-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:1bf8e2aacad7a23281266c7f30a6c02ce1a6ec9fb478c4e922979a94a0306695 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [310-10-45-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-3) states that foreclosed and repossessed assets included in other assets on the statement of financial position shall have separate disclosures in the notes to financial statements. An entity shall also disclose the carrying amount of foreclosed residential real estate properties held at the reporting date as a result of obtaining physical possession in accordance with paragraphs [310-20-40-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-6) and [310-20-55-18F](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18F). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Paragraph [310-10-45-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-45-3) states that foreclosed and repossessed assets included in other assets on the statement of financial position shall have separate disclosures in the notes to financial statements. For interim and annual reporting periods, an entity shall also disclose the carrying amount of foreclosed residential real estate properties held at the reporting date as a result of obtaining physical possession in accordance with paragraphs [310-20-40-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-6) and [310-20-55-18F](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18F). ##### [310-10-50-11A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:44a0818041a99e920fed77a2774b958d98ac73827bc48d0d97543d401bc16813 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-11B](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:4e69f903c40b62636da518afe247d49ea2ed768875252b237ff574abecf831ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-11C](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-11C) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:e05e7645e47345ab82732391283f84791e990df860d538149cb47a7c3a203f4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:de908bd4392cef6661d84583f4bab869c4439e0b6333b5652d18174ada0b89a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:7cbda5343a40717f3fd576ae2f0a82a523d650e209be01e3c040cbe06ebe0c4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d6f5af66ce4b931f3c5367302d8808e5e05fbb48ad48c580e0fbea59bc53041a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-14A](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-14A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d1d8b1d7ab2593b845ba8361c7134e022320db29a0a73b2d0f38ec7b792be06a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:67741437d7870dcd2f7638a656a504cb0d55d7814e2af0c15f43415e032d5e67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:f0159a7c007c16865cbc1f81ebee3c9cf02f360c66b17e588dfa7bb45a8241e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d944de1810d6aa47e1aefdf259b1f9c105c8de50181608df274495fb9c73186e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:97f1e7f19a103794c4656675e6bb80a77f555fa7ef8da663bed35f3e228c4755 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:3e11a1011190bf40bf4fc4cd8867ece261751138d7da4ee94df21078d0493120 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:ce8d556efb70d39969a9f7f97797d089890907efb8b1b846e7e23b9a9b898cf5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:c91a3ff851d4196a8935f3b3f293bbbbca2620bad59641b473521e09baa4fdc3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:d9f811cc5bff1395e8a6ee91c03bb67791510863db65de47a5946be2841f13e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-23](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:50698cf8e6f83c1c21c7f3a74cd53a108011aa51f902a10942bad0a22b64d580 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-20](https://asc.understandingaccounting.org/updates/asu-2010-20/). ##### [310-10-50-24](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:abcf348f2d70662c3c62f0366bd961ff8c4626a555349f006e91335fe3c291e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Risks and Uncertainties ##### [310-10-50-25](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:794a93fd9f239b8a995b670f84a2e2ab9992bcf110ec86eede498a4b05c55d7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain loans and trade receivables have contractual terms that expose entities to risks and uncertainties that fall into one or more categories, as discussed in paragraph [275-10-50-1](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-1). See Section 275-10-50 for disclosure guidance related to those products. #### Fair Value Disclosures ##### [310-10-50-26](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8bf3a5842c9fe260f24787b5189c8518a4d9ed87595d7b21607e6984c4bdd4ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 825-10-50 provides guidance on the required disclosure of fair values of certain assets and liabilities. Paragraph [825-10-50-8](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-8) explains that, for trade receivables and payables, no disclosure is required under that Subtopic if the trade receivable or payable is due in one year or less. ##### [310-10-50-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:c3fc0eea9f7885e20e1110323309bff909416d5d5990f1029bf234209cbfe08f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-28](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:85f80a6444efd3348014b7224a2bc0bc827d117b83df5eef7bc5268a42c06e26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-29](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2b7e20ef2940f8071542e6d0e273d9597048d142374d6f01ec208a08ad3b97da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-30](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2656c080e15f4110390f56955197180ecc5468a54643288b25642486c388c8ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-50-31](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:251c738ba44a3da427878accc69200e79f97776759014c0cd06af2729debec14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-50-32](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:a9f41807e5b4eed8bbaebc7efcb0facbd235c496f46d3bf6adcda4c7aa359d23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-50-33](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:74bf0e9677c09073e3147b3d2d5853e253945702cf852ea190ea8eb9e9c4e733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-10-50-34](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:c74ffcc61100eb6c95083a4a9fe5b687939398e85644f83554940d4e7df31478 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). #### Loans in Process of Foreclosure ##### [310-10-50-35](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-35) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:bc1359ac72fc4e08277eb14c71e904d66fc39b1c6c41a0fbbb9195fd0cde0dfa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, an entity shall disclose the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. #### Modifications ##### [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:b64b70ca48f4676047c11141b5428043165e1f30bdfb9e27aac1eadb40248d8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As of the date of each balance sheet presented, a creditor shall disclose, either in the body of the financial statements or in the accompanying notes, the amount of commitments, if any, to lend additional funds to debtors experiencing financial difficulty for which the creditor has modified the terms of the receivables in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension in the current reporting period. For purposes of this disclosure, covenant waivers and modifications of contingent acceleration clauses would not be considered term extensions. ##### [310-10-50-37](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:408e448bda193117eaa8017aa869f5d8c524d3c9a0f1d5b867560e53670f7844 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a loan is restructured into two (or more) loan agreements, the restructured loans shall be considered separately when assessing the applicability of the disclosures in Section 326-20-50 in years after the restructuring because they are legally distinct from the original loan. ##### [310-10-50-38](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:3ad28b605cdd9de4ad91b6be3eb538d258428d36ae023dfc61f385d89d60fafd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) is to provide financial statement users with information about the type and magnitude of certain modifications of receivables made to debtors experiencing financial difficulty, the financial effect of those modifications, and the degree of success of the modifications in mitigating potential credit losses. In addition to the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) , an entity shall consider providing information that helps financial statement users understand significant changes in the type or magnitude of modifications, including those modifications that, for example, were caused by a major credit event, even if the modifications otherwise would not require the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . ##### [310-10-50-39](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:2a16985d4db7e9e1e0da84653b044bf8980574a2e8ebd5e815809115591c8aed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) shall be provided for modifications of receivables to borrowers experiencing financial difficulty in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension made within the scope of this Topic. For purposes of those disclosures, covenant waivers and modifications of contingent acceleration clauses would not be considered term extensions. ##### [310-10-50-40](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-40) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:acff6b35ea297f63741b6af126c3e05bde9808412535b958cfcf0884bf9650f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) does not apply to the following financing receivables: 1. a Receivables measured at fair value with changes in fair value reported in earnings 2. b Receivables measured at lower of amortized cost basis or fair value 3. c Except for credit card receivables, trade accounts receivable that have both of the following characteristics: 1. 1 They have a contractual maturity of one year or less. 2. 2 They arose from the sale of goods or services. 4. d Participant loans in defined contribution pension plans. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)The guidance in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) does not apply to the following financing receivables: 1. a Receivables measured at fair value with changes in fair value reported in earnings 2. b Receivables measured at lower of amortized cost basis or fair value 3. c Except for credit card receivables, trade accounts receivable that have both of the following characteristics: 1. 1 They have a contractual maturity of one year or less. 2. 2 They arose from the sale of goods or services. 4. d Participant loans in defined contribution pension plans 5. e Lease receivables arising from sales-type leases or direct financing leases. ##### [310-10-50-41](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-41) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:880bcf48789e5fb1b040f54a949946326399ba926049c7870588ad414c5b960f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures required in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) are applicable regardless of whether a modification of a receivable to a debtor experiencing financial difficulty results in a new loan in accordance with paragraphs [310-20-35-9 through 35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . As a practical expedient, an entity may exclude the accrued interest receivable balance that is included in the amortized cost basis of financing receivables for the purposes of the disclosure requirements in Subtopic 326-20. If an entity has applied that practical expedient, an entity may do the same for the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) and shall disclose the total amount of accrued interest excluded from the disclosed amortized cost basis. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The disclosures required in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) are applicable regardless of whether a modification of a receivable to a debtor experiencing financial difficulty results in a new loan in accordance with paragraphs [310-20-35-9 through 35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . As a practical expedient, an entity may exclude the accrued interest receivable balance that is included in the amortized cost basis of financing receivables for the purposes of the disclosure requirements in Subtopic 326-20. If an entity has applied that practical expedient, an entity may do the same for the disclosures in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) and shall disclose the total amount of accrued interest excluded from the disclosed amortized cost basis in interim and annual reporting periods. ##### [310-10-50-42](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:30b5772251b45a106512671195bf6276d4b7af5979e69051e6256c1ef081788e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which a statement of income is presented, an entity shall disclose the following information related to modifications of receivables that are in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) made to debtors experiencing financial difficulty during the reporting period: 1. a By class of financing receivable, qualitative and quantitative information about: 1. 1 The types of modifications utilized by an entity, including the total period-end amortized cost basis of the modified receivables and the percentage of modifications of receivables made to debtors experiencing financial difficulty relative to the total period-end amortized cost basis of receivables in the class of financing receivable. 2. 2 The financial effect of the modification by type of modification, which shall provide information about the changes to the contractual terms as a result of the modification and shall include the incremental effect of principal forgiveness on the amortized cost basis of the modified receivables, as applicable, or the reduction in weighted-average interest rates (versus a range) for interest rate reductions. 3. 3 Receivable performance in the 12 months after a modification of a receivable made to a debtor experiencing financial difficulty. 2. b By portfolio segment, qualitative information about how those modifications and the debtors’ subsequent performance are factored into determining the allowance for credit losses. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each interim and annual reporting period for which a statement of income is presented, an entity shall disclose the following information related to modifications of receivables that are in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) made to debtors experiencing financial difficulty during the reporting period: 1. a By class of financing receivable, qualitative and quantitative information about: 1. 1 The types of modifications utilized by an entity, including the total period-end amortized cost basis of the modified receivables and the percentage of modifications of receivables made to debtors experiencing financial difficulty relative to the total period-end amortized cost basis of receivables in the class of financing receivable. 2. 2 The financial effect of the modification by type of modification, which shall provide information about the changes to the contractual terms as a result of the modification and shall include the incremental effect of principal forgiveness on the amortized cost basis of the modified receivables, as applicable, or the reduction in weighted-average interest rates (versus a range) for interest rate reductions. 3. 3 Receivable performance in the 12 months after a modification of a receivable made to a debtor experiencing financial difficulty. 2. b By portfolio segment, qualitative information about how those modifications and the debtors’ subsequent performance are factored into determining the allowance for credit losses. ##### [310-10-50-43](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-43) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8391c97007f5f933979f96a8b47b12fc69f742498b8d47a29ad8012a22a04626 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables may be modified in more than one manner. An entity that modifies the same receivable in more than one manner shall provide disclosures sufficient for users to understand the different types of combinations of modifications provided to borrowers. For example, a receivable may be modified to provide both principal forgiveness and an interest rate reduction. In that case, an entity shall disclose the period-end amortized cost basis of that receivable in a separate category that reflects that a combination of modification types has been granted. If another receivable was modified to provide both an interest rate reduction and a term extension, the period-end amortized cost basis of that receivable shall be presented in a different category. Multiple separate combination categories may be necessary if significant. The same receivable’s period-end amortized cost basis shall not be presented in multiple categories. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Receivables may be modified in more than one manner. An entity that modifies the same receivable in more than one manner shall provide disclosures in interim and annual reporting periods sufficient for users to understand the different types of combinations of modifications provided to borrowers. For example, a receivable may be modified to provide both principal forgiveness and an interest rate reduction. In that case, an entity shall disclose the period-end amortized cost basis of that receivable in a separate category that reflects that a combination of modification types has been granted. If another receivable was modified to provide both an interest rate reduction and a term extension, the period-end amortized cost basis of that receivable shall be presented in a different category. Multiple separate combination categories may be necessary if significant. The same receivable’s period-end amortized cost basis shall not be presented in multiple categories. ##### [310-10-50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-44) Pending content: yes Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:3a1086a645774871e773f0bef496b618fd44abbf0f65c59ce02cdccf0d2c732c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which a statement of income is presented, an entity shall disclose the following information about financing receivables that had a payment default during the period and had been modified in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) within the previous 12 months preceding the payment default when the debtor was experiencing financial difficulty at the time of the modification: 1. a By class of financing receivable, qualitative and quantitative information about those defaulted financing receivables, including the following: 1. 1 The type of contractual change that the modification provided 2. 2 The amount of financing receivables that defaulted, including the period-end amortized cost basis for financing receivables that defaulted. 2. b By portfolio segment, qualitative information about how those defaults are factored into determining the allowance for credit losses. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each interim and annual reporting period for which a statement of income is presented, an entity shall disclose the following information about financing receivables that had a payment default during the period and had been modified in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension (or a combination thereof) within the previous 12 months preceding the payment default when the debtor was experiencing financial difficulty at the time of the modification: 1. a By class of financing receivable, qualitative and quantitative information about those defaulted financing receivables, including the following: 1. 1 The type of contractual change that the modification provided 2. 2 The amount of financing receivables that defaulted, including the period-end amortized cost basis for financing receivables that defaulted. 2. b By portfolio segment, qualitative information about how those defaults are factored into determining the allowance for credit losses. ##### [310-10-50-45](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-45) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:daed4cc37341692590ea8932c5c40e56adb5520c84cbd8bca2b6c42744fb57cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In evaluating whether the debtor is experiencing financial difficulties for the purpose of the disclosure requirements in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) , a creditor shall consider the following indicators: 1. a The debtor is currently in payment default on any of its debt. In addition, a creditor shall evaluate whether it is probable that the debtor would be in payment default on any of its debt in the foreseeable future without the modification. That is, a creditor may conclude that a debtor is experiencing financial difficulties, even though the debtor is not currently in payment default. 2. b The debtor has declared or is in the process of declaring bankruptcy. 3. c There is substantial doubt as to whether the debtor will continue to be a going concern. 4. d The debtor has securities that have been delisted, are in the process of being delisted, or are under threat of being delisted from an exchange. 5. e On the basis of estimates and projections that only encompass the debtor's current capabilities, the creditor forecasts that the debtor's entity-specific cash flows will be insufficient to service any of its debt (both interest and principal) in accordance with the contractual terms of the existing agreement for the foreseeable future. 6. f Without the current modification, the debtor cannot obtain funds from sources other than the existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a nontroubled debtor. The above list of indicators is not intended to include all indicators of a debtor's financial difficulties. ##### [310-10-50-46](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:312b58e7a775a5f03b82297f179af2f7a353daec40ab5a8f84f8ac0dc3575af3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the case of a restructuring that results in only a delay in payment that is insignificant, an entity is not required to include the modification made to receivables for debtors experiencing financial difficulty in the disclosure requirements in paragraphs [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) and [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . The following factors, when considered together, may indicate that a restructuring results in a delay in payment that is insignificant: 1. a The amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value of the debt and will result in an insignificant shortfall in the contractual amount due. 2. b The delay in timing of the restructured payment period is insignificant relative to any one of the following: 1. 1 The frequency of payments due under the debt 2. 2 The debt's original contractual maturity 3. 3 The debt's original expected duration. ##### [310-10-50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-47) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:8311b89b4e3205ae6825499409e2343a1a2d804878d6f3347dce8e6283ca8a12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the debt has been previously restructured, an entity shall consider the cumulative effect of past restructurings made within the 12-month period before the current restructuring when determining whether a delay in payment resulting from the current restructuring is insignificant. ##### [310-10-50-48](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-48) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:09.925Z to 2026-09-09T23:25:09.925Z Record version: sha256:a2cf85427b435222e20bedf54e502277d08761dd2120037f176e3542f44723a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples 4, 5, and 6 in paragraphs [310-10-55-12B through 55-12K](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12B) illustrate a creditor's evaluation about whether a delay in payment resulting from a restructuring is insignificant. Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:ecf7099992d40ee46d46518c0f2738deb4af4fecac36f5bca7fc4f9a10bf7c79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/10/#55-implementation-guidance-and-illustrations) SEC content: no ##### [310-10-55-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:1f1d36ddf19ee9acfc689f267db03799968020a65e50fd89d088efa658109b3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:f028bd20a6354e5a7a8beed9799f41a8d145b493ea727f1c70d81e8830c9e1e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:c90e3092d7cf0b9df520cc870c9bd0e8d4590d7ef93ada661c0ebcaf948988b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:845ddeaaa32e9664b35105bd4f9b00b4e1ceb08cc40531d371544024ee4b7b1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:424bfe496666942e67aaf2602345baef7f53a5f9d1d229185fa361f7166e48f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:038d2233da2f65f8d1b44b8b213a275400f4788a6403b58b776d51149757ac56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-7](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:88a312f774ec3e88aec8887dd73ed1f2f90b485994d1bfddd36dc4096d13a1f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:d055c44f814f601f154a04f10fc1e382212d0cff842200fe4633b11239d2732e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:8f42585b1dee2335e23ea31136053df7d38c17c1ce0360f87ab4c3c31ddc7b77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-10](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:5f8249c2fa7d83048c45cf5f8956d382ab933bfad226586f81e6635e11d59e19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:eab947de6dddbd2b40b98669d0cdb4a9264fdd6a904bbed8f4e7ce3bc34ac119 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-12](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:56b9002b21c9d55d667e10a30f03aa8f35194fa52fbe1defd16f236396a837c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02.](https://asc.understandingaccounting.org/updates/asu-2022-02/) #### Illustrations ##### [310-10-55-12A](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12A) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:1c129da65fc868ad5619d61f5def4a424cafff69f31ff5bda13563e78312a1f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Example illustrates the disclosures required by paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . For ease of illustration, comparative periods are excluded. - **Entity B** - The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. Entity B uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. - Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, Entity B modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. - In some cases, Entity B will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the real estate loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, and interest rate reduction. - The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted (numbers in thousands): - ![](https://asc.understandingaccounting.org/asc-img/GUID-CE8EBF8B-D75B-4A71-823C-F0F23F578C58-low.gif) Loan Modifications Made to Borrowers Experiencing Financial Difficulty Interest Rate Reduction Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial " $40,000 " 2.0% Real Estate—Residential - 0.0 Consumer " 10,000 " 0.2 Total " $50,000 " Term Extension Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial $- 0.0% Real Estate—Residential - 0.0 Consumer " 22,000 " 0.4 Total " $22,000 " Principal Forgiveness Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial " $20,000 " 1.0% Real Estate—Residential - 0.0 Consumer - 0.0 Total " $20,000 " Combination—Term Extension and Principal Forgiveness Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial $- 0.0% Real Estate—Residential " 5,000 " 0.8 Consumer - 0.0 Total " $5,000 " "Combination—Term Extension and Interest Rate Reduction" Amortized Cost Basis at 12/31/20X1 % of Total Class of Financing Receivable Loan Type Real Estate—Commercial $- 0.0% Real Estate—Residential " 5,000 " 0.8 Consumer - 0.0 Total " $5,000 " - The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: - ![](https://asc.understandingaccounting.org/asc-img/GUID-D173EDAE-8F62-425F-B37C-575E9D9C0F1C-low.gif) Interest Rate Reduction Loan Type Financial Effect Real Estate—Commercial Reduced weighted-average contractual interest rate from 6% to 3%. Real Estate—Residential Reduced weighted-average contractual interest rate from 8% to 5%. Consumer Reduced weighted-average contractual interest rate from 4% to 1.5%. Term Extension Loan Type Financial Effect Real Estate—Residential "Added a weighted-average 2.4 years to the life of loans, which reduced monthly payment amounts for the borrowers." Consumer Provided six-month payment deferrals to borrowers through our standard deferral program. The six monthly payments were added to the end of the original loan terms of these borrowers. Principal Forgiveness Loan Type Financial Effect Real Estate—Commercial Reduced the amortized cost basis of the loans by $20 million. Real Estate—Residential Reduced the amortized cost basis of the loans by $5 million. - Upon Entity B’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. - The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty (numbers in thousands): - ![](https://asc.understandingaccounting.org/asc-img/GUID-B617A162-8110-4710-B0A2-B16E4800E07E-low.gif) Financing Receivable That Subsequently Defaulted Amortized Cost Basis of Modified Financing Receivables That Subsequently Defaulted Interest Rate Reduction Term Extension Principal Forgiveness Combination- Term Extension and Principal Forgiveness Combination- Term Extension and Interest Rate Reduction Loan Type Real Estate—Commercial " $1,500 " $- $- $- $- Real Estate—Residential - - - - - Consumer 500 " 1,000 " - - - Total " $2,000 " " $1,000 " $- $- $- - Entity B closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months (numbers in thousands): - ![](https://asc.understandingaccounting.org/asc-img/GUID-7F7C3A16-6B42-4520-9386-E428F0EE916C-low.gif) Payment Status (Amortized Cost Basis) Current "30–89 Days Past Due" "90+ Days Past Due" Loan Type Real Estate—Commercial " $55,000 " " $3,500 " " $1,500 " Real Estate—Residential " 6,000 " " 4,000 " - Consumer " 29,000 " " 1,500 " " 1,500 " Total " $90,000 " " $9,000 " " $3,000 " ##### [310-10-55-12B](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12B) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:f0b46d4cff8dca8418142923db817b5a2fd39bb13b2bb966e1d29017658b3d9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A restructuring that results in only a delay in payment that is insignificant is not required to be disclosed on the basis of the requirements in paragraphs [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) and [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . This Example illustrates the guidance in paragraphs [310-10-50-46 through 50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) for determining whether a delay in payment is insignificant. This Example assumes that the debtor is experiencing financial difficulties and is not intended to illustrate the determination of whether a debtor is experiencing financial difficulties. ##### [310-10-55-12C](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12C) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:c59155c09ea0a2b54f7e6e004aad2223714d16ddbc8f21b5c8f81fde767bc1e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A creditor originates a seven-year loan to a debtor. The debt: 1. a Has a fixed interest rate 2. b Is collateralized by commercial real estate 3. c Requires monthly interest payments 4. d Requires a balloon principal payment at maturity. ##### [310-10-55-12D](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12D) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:04a98bfba91789bd77775965dcca0c9a579fb25152c27752a1397576ff128823 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At origination, the debtor expects to repay the principal by refinancing the debt with the real estate held as collateral. That is, the collateral is the primary source of payment of the debt's principal balance, whether through a refinancing of the debt or a sale of the property. However, before maturity, the fair value of the collateral was less than the principal amount due at maturity, and as a result of market conditions, the debtor is unable to refinance the debt. The debtor plans to sell the property to repay the debt and requests an extension of the debt's maturity date to allow time to liquidate the property. In response to the debtor's financial difficulties, the creditor grants the debtor a three-month extension of the debt maturity date. At the time that this extension was granted, the debtor had not yet identified a buyer for the collateral. ##### [310-10-55-12E](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12E) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:0c557003bd1474b22805578b7e81d78d8493f365a9decb8a4a5759ebcca60d78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The restructuring results in a delay in payment that is not insignificant. Although the delay in timing of payment is insignificant (relative to the frequency of payments due, the debt's original contractual maturity, and the debt's original expected duration), the creditor expects a significant shortfall in cash flows relative to the contractual amount due when the property is sold because the property is the sole source of repayment. ##### [310-10-55-12F](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12F) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:066b88b1fca0cd825e98ff5f86a3751995a34d090c75db00216ae92f718047ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A restructuring that results in only a delay in payment that is insignificant is not required to be disclosed based on the requirements in paragraphs [310-10-50-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-36) and [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . This Example illustrates the guidance in paragraphs [310-10-50-46 through 50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) for determining whether a delay in payment is insignificant. This Example assumes that the debtor is experiencing financial difficulties and is not intended to illustrate the determination of whether a debtor is experiencing financial difficulties. ##### [310-10-55-12G](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12G) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:56d1f9327206a2373ac3a8222988f531e27b6c4411942728897cf6d92b06496c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A debtor obtains a 30-year mortgage loan that requires monthly principal and interest payments. In year 4, the debtor experiences financial difficulties and misses two payments. On the basis of the debtor's financial hardship, the debtor and the creditor agree on a forbearance arrangement and repayment plan. Under the terms of the forbearance arrangement and repayment plan, the creditor agrees not to take any foreclosure action if the debtor increases its next four monthly payments such that each payment includes one fourth of the delinquent amount plus interest. The agreement does not result in the creditor charging the debtor interest on past due interest. At the end of the forbearance arrangement, the debtor will: 1. a Have repaid all past due amounts 2. b Be considered current in relation to the debt's original terms 3. c Have resumed making monthly payments set out under the debt's original terms. ##### [310-10-55-12H](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12H) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:4d51eceb68761033f04fdd10e54dce69045f336664c228019420dc5e76dc77da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The restructuring results in a delay in payment that is insignificant. At the time of the forbearance arrangement, the creditor expects to collect all amounts due for the periods of delay. Furthermore, the length of delay resulting from the forbearance arrangement is considered insignificant in relation to the frequency of payments due, the debt's original contractual maturity, and the debt's original expected duration. ##### [310-10-55-12I](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12I) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:fbdd2cc5ef49ca94802e97625c3d0ddef53e39015028c67f0cc333a2e92c2a92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A restructuring that results in only a delay in payment that is insignificant is not required to be disclosed on the basis of the requirements in paragraphs [310-10-50-42 through 50-44](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-42) . This Example illustrates the guidance in paragraphs [310-10-50-46 through 50-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-46) for determining whether a delay in payment is insignificant. This Example assumes that the debtor is experiencing financial difficulties and is not intended to illustrate the determination of whether a debtor is experiencing financial difficulties. ##### [310-10-55-12J](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12J) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:52c60e3129e2b2b584363ecaa4ee7cc3e0a9fd26e1c3b490a1c4804f77f553af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A commercial debtor has a revolving line of credit with a creditor with an original term of five years. The terms of the line of credit require interest payments every 90 days on the average daily balance of the line. As the line of credit nears maturity, the debtor and creditor begin renegotiating the terms of a new line of credit. Because of a temporary cash shortfall due to a delay in collections from two key customers, the debtor is unable to make the final interest payment before the two parties finish renegotiating the terms of the new line of credit. The terms of the renegotiated line of credit are expected to be similar to the current line of credit, which are comparable to terms available to debtors with similar risk characteristics. The creditor expects the debtor to recover quickly from this temporary cash flow shortage. Accordingly, the creditor extends a 3-month payment deferral by adding the missed interest payment to the balance of the line and requiring the debtor to make its first interest payment 90 days after the new line of credit is finalized, or 180 days after the due date of the missed interest payment. ##### [310-10-55-12K](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-12K) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:4db84bb0967bd75d9e9605410802e4f456bd1fc4152bf4884c4dab9730903240 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The restructuring results in a delay in payment that is insignificant. Although the debtor is unable to make the contractual payment at the time it is due, thereby resulting in the three-month deferral, the creditor still expects to collect all amounts due, including interest at the contractual rate. Furthermore, the delay in timing of payment represents only one payment cycle under the terms of the line, which is insignificant relative to the frequency of payments due, the debt's original contractual maturity, and the debt's original expected duration. ##### [310-10-55-13](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:d28da3606a9f4a544902fae88af6dfe98045e3d9d2d215b30bcba7deb577e0ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This implementation guidance addresses the meaning of the term [financing receivable](https://asc.understandingaccounting.org/glossary/f/#financing-receivable "A financing arrangement that has both of the following characteristics: It represents a contractual right to receive money in either of the following ways: On demand On fixed or determinable dates. It is recognized as an asset in the entity's statement of financial position. See paragraphs 310-10-55-13310-10-55-14310-10-55-15 for more information on the definition of financing receivable, including a list of items that are excluded from the definition (for example, debt securities)."). ##### [310-10-55-14](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:2498b8fc24ff9dec6f3ab5d9ff064272869d2cc1390da548fe2ede92a065f162 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following are examples of financing receivables: 1. a Loans 2. b Trade accounts receivable 3. c Notes receivable 4. d Credit cards 5. e Receivables relating to a lessor's right(s) to payment(s) from a [leveraged lease](https://asc.understandingaccounting.org/glossary/l/#leveraged-lease "From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.") that should be recognized as an asset in accordance with paragraphs [842-10-65-1(z)](https://asc.understandingaccounting.org/asc/842/10/#842-10-65-1) 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2016-02](https://asc.understandingaccounting.org/updates/asu-2016-02/). 6. f [Lease receivables](https://asc.understandingaccounting.org/glossary/l/#lease-receivable "A lessor's right to receive lease payments arising from a sales-type lease or a direct financing lease plus any amount that a lessor expects to derive from the underlying asset following the end of the lease term to the extent that it is guaranteed by the lessee or any other third party unrelated to the lessor, measured on a discounted basis.") arising from [sales-type leases](https://asc.understandingaccounting.org/glossary/s/#sales-type-lease "From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.") or [direct financing leases](https://asc.understandingaccounting.org/glossary/d/#direct-financing-lease "From the perspective of a lessor, a lease that meets none of the criteria in paragraph 842-10-25-2 but meets the criteria in paragraph 842-10-25-3(b)and is not an operating lease in accordance with paragraph 842-10-25-3A."). ##### [310-10-55-15](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:2acf1daf182843621d09644aa9dbfd56e91c0c547733f10d7e249726892ef736 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. None of the following meet the definition of financing receivables: 1. a [Debt securities](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") within the scope of Topic 320 (see the guidance beginning in paragraph [320-10-15-5](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-5)) 2. b Unconditional promises to give (for example, contributions receivable) that should be recognized as an asset in accordance with paragraphs [958-605-25-7 through 25-15](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-7) 3. c Both of the following instruments, which are within the scope of Subtopic 325-40: 1. 1 A transferor's interests in securitization transactions that are accounted for as sales under Topic 860 2. 2 Purchased beneficial interests in securitized financial assets. For related guidance, see paragraph 325-40-15. ##### [310-10-55-16](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:1b866fb88ea4b892eea3f9c35065a8827b7bbe8c176c68e70b66e63a257f8aca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-17](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:a7c8899a5b83fc85127b31db3960112e06e1f79612652b67c1039876319553ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-18](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:dace942835dd47cf69d58fbb82b50073ac4e7373d49401ee55ecaa3db4be9703 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:166de51dc02d471608006b6139668f2451c5b3538a0b932f5151a079e8a4e29e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:fbf2f459ad65e3d63dc266134812235e4a3414bed401fb3de7759673f8f55304 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-21](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:27640bf2514f8078d1ee02a40a7369f26ebd70f1c55d46236d355782712b924b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-10-55-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:12.540Z to 2026-09-09T23:25:12.540Z Record version: sha256:15154cbf061082448555dfa673cea3a3d03e293984aab7b23a9ef076a6b5de2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:bbe8ea89ea143d4cdf961b32241d0ae31b554cbd908684309f10581c840ca82e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/310/10/#60-relationships) SEC content: no #### Liabilities ##### [310-10-60-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:2496c114db9da2ff3ccbed3953703c39e5f21b3ee548894d1ea149f50dacaa8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For receivables related to recovery of insurance-related assessments, see paragraph [405-30-25-8](https://asc.understandingaccounting.org/asc/405/30/#405-30-25-8). #### Contingencies ##### [310-10-60-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:a1b65bf4ac84fe8905da55e2467a541c5b61ba9b9bbde57d901fa7766ec8e837 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For accounting guidance for loss contingencies, including guidance on accrual of an estimated loss from a loss contingency, see Subtopic 450-20. #### Guarantees ##### [310-10-60-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:77c14a48c85bcd7668052d9415e2687e895182b18dceb5ba59946448b833a0fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance related to the accounting by a guarantor at the inception of a guarantee issued, see Topic 460. ##### [310-10-60-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:75d0d7aa9a05711689e538652685cab8caa96a2063e8ee5816273028f284a4bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on [loan](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.") guarantees, in which an entity (guarantor) lends its creditworthiness to another party (borrower) for a fee, thereby enhancing that other party's ability to borrow funds, see Topic 460 on guarantees. See Topic 815 on derivatives and hedging for guarantees accounted for as a derivative. #### Transfers and Servicing ##### [310-10-60-5](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:314bb96985ac41b5895e78cf7f0e42d59a8e813fa05ff6f1338703f7f43aa733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting for transfers of financial assets, including receivables, see Subtopic 860-20. ##### [310-10-60-6](https://asc.understandingaccounting.org/asc/310/10/#310-10-60-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:14.565Z to 2026-09-09T23:25:14.565Z Record version: sha256:321b1a83c262e6f1c422c73bf9290beeb4fb0ec49e5332b10c5f56f212b8a07d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the accounting for servicing assets and liabilities related to loans and other receivables, see Subtopic 860-50. Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:f1f3673f8b9f058aaf8b0ae8aa065ec3c7bc926fe2da3b0e7336a23c862a3ebf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/310/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [310-10-65-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:c51455235fb9f9d785821382a8bab250896888861e2b122354a37752af79f2cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 03/15/2011 after the end of the transition period stated in Accounting Standards Update No. 2010-18, _Receivables (Topic 310): Effect of a Loan Modification When the Loan Is Part of a Pool That Is Accounted for as a Single Asset_. ##### [310-10-65-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-65-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:ea44be78af0d85616d82688464286212c19aa6130276ec767567fc1c213f0323 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/18/2012 after the end of the transition period stated in Accounting Standards Update No. 2010-20, _Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses_. ##### [310-10-65-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-65-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:16.636Z to 2026-09-09T23:25:16.636Z Record version: sha256:032333f7e2ad0254efa1a16ab0243578366aeefd9a283e3986791551e3a30c80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/18/2012 after the end of the transition period stated in Accounting Standards Update No. 2011-01, _Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in Update No. 2010-20_. Source downloaded (UTC): 2026-09-09T23:25:21.408Z to 2026-09-09T23:25:21.408Z Record version: sha256:b7d8d82dc5e70a4020dea3eec623e16f84d6e126bc875483b98f1e62e89a0807 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-00-status) SEC content: yes ##### [310-10-S00-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:21.408Z to 2026-09-09T23:25:21.408Z Record version: sha256:6a162311e6f0ae30b88b0dd51f9cc557405cfe3b0c770698ee47c9611e7f8163 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
310-10-S50-2AmendedAccounting Standards Update No. 2009-0709/15/2009
310-10-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
310-10-S99-4AmendedAccounting Standards Update No. 2012-0308/27/2012
310-10-S99-4AmendedAccounting Standards Update No. 2009-0308/24/2009
Source downloaded (UTC): 2026-09-09T23:25:23.298Z to 2026-09-09T23:25:23.298Z Record version: sha256:4bd0a232c2c442dc05afd3287dc603643dd1f37bd56b23d0bf14150e6dd79db6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-35-subsequent-measurement) SEC content: yes #### Accounting for Loan Losses by Registrants Engaged in Lending Activities ##### [310-10-S35-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:23.298Z to 2026-09-09T23:25:23.298Z Record version: sha256:91465f5959d61812ea01238d0c35429068641f1255679496607b5f122c82ac31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-4), SAB Topic 6.L., for SEC Staff views on accounting for loan losses by registrants engaged in lending activities. Source downloaded (UTC): 2026-09-09T23:25:27.446Z to 2026-09-09T23:25:27.446Z Record version: sha256:ca18975002a248ccf685c4a67f4551a6638add3f9e397d77e1da9ea28baef647 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-45-other-presentation-matters) SEC content: yes #### Receivables Arising from the Issuance of Capital Stock to Officers or Other Employees ##### [310-10-S45-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:27.446Z to 2026-09-09T23:25:27.446Z Record version: sha256:14ac79c7ffaa71a527048accc558db69d00a8e79ee68f5d65bccd389ef37caac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-2), SAB Topic 4.E, for SEC Staff views on the presentation of receivables for capital stock from officers or other employees. #### Notes or Other Receivables from a Parent or Another Affiliate ##### [310-10-S45-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:27.446Z to 2026-09-09T23:25:27.446Z Record version: sha256:9ce14a8b9e3e1bb93338e14711728c0f21eac62af11de446e3f467095afb33d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-3), SAB Topic 4.G, for SEC Staff views on the presentation of notes or other receivables from a parent or another affiliate. Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:ce956b9129e2930c0a41c810f4c04897571adfbc750ff2332a1afc8faa8f232f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-50-disclosure) SEC content: yes #### Disclosure Requirements for Accounts and Notes Receivable ##### [310-10-S50-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:b0b9e3fca29b3e20b25ee721ab516e0417a18a7db71f286c8f915f2ba286c5cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [210-10-S99-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-S99-1), Regulation S-X Rule 5-02.3, for disclosure requirements for accounts and notes receivable. ##### [310-10-S50-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:d779972d49facc939208036e7948c7c9273fecd125c09e9ee7b7751dd7cb2f8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-4](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-4), Regulation S-X Rule 12-09, for the required disclosure for the schedule of valuation and qualifying accounts, which would include reserves on receivables. ### Acquisition, Development, and Construction Arrangements #### Disclosures Related to Acquisition, Development, and Construction Arrangements ##### [310-10-S50-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:30.636Z to 2026-09-09T23:25:30.636Z Record version: sha256:20022fa1aee83229e0e4fac466fc43ca90c1f4c03c39a0e04a3a30bd8fb98fe1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-1), SAB Topic 1.I, Questions 5, 6 and 7, for SEC Staff views on disclosures related to acquisition, development, and construction arrangements. Source downloaded (UTC): 2026-09-09T23:25:34.792Z to 2026-09-09T23:25:34.792Z Record version: sha256:b4539ebbe0d47124463625e2c85b8a8a7b76849df4cfff604be4af2383b13271 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-55-implementation-guidance-and-illustrations) SEC content: yes ### Acquisition, Development, and Construction Arrangements #### Criteria for Loan Accounting ##### [310-10-S55-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:34.792Z to 2026-09-09T23:25:34.792Z Record version: sha256:a481d5385af0d0be14e4c54286a612e941d70c61f89e5a9da3aa19985437df8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-10-S99-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-1), SAB Topic 1.I, Question 3, for SEC Staff views on criteria supporting accounting for a transaction as a mortgage loan. Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:c2a150efc6e8bf4b20fac639bb5eb8dd12f9354ecf1a70aadafa6864096d2fc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/310/10/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [310-10-S99-1](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:b8eefcc43af9b2d97e0747ea053901737a6f13a2586c240ed9782ab8353f5a3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 1.I, Financial Statements of Properties Securing Mortgage Loans. - Facts: A registrant files a Securities Act registration statement covering a maximum of $100 million of securities. Proceeds of the offering will be used to make mortgage loans on operating residential or commercial property. Proceeds of the offering will be placed in escrow until $1 million of securities are sold at which point escrow may be broken, making the proceeds immediately available for lending, while the selling of securities would continue. - Question 1: Under what circumstances are the financial statements of a property on which the registrant makes or expects to make a loan required to be included in a filing? - Interpretive Response: Rule 3-14 of Regulation S-X specifies the requirements for financial statements when the registrant has acquired one or more properties which in the aggregate are significant, or since the date of the latest balance sheet required has acquired or proposes to acquire one or more properties which in the aggregate are significant. - Included in the category of properties acquired or to be acquired under Rule 3-14 are operating properties underlying certain mortgage loans, which in economic substance represent an investment in real estate or a joint venture rather than a loan. Certain characteristics of a lending arrangement indicate that the "lender" has the same risks and potential rewards as an owner or joint venturer. Those characteristics are set forth in the Acquisition, Development, and Construction Arrangements (ADC Arrangements) Subsections of FASB ASC Subtopic 310-10, Receivables—Overall FN6FN7. In September 1986 the EITF FN8 reached a consensus on this issue FN9 to the effect that, although the guidance in the ADC Arrangements Subsections of FASB ASC Subtopic 310-10 was issued to address the real estate ADC arrangements of financial institutions, preparers and auditors should consider that guidance in accounting for shared appreciation mortgages, loans on operating real estate and real estate ADC arrangements entered into by enterprises other than financial institutions. - FN6 \[Original footnote removed by SAB 114.\] - FN7 \[Original footnote removed by SAB 114.\] - FN8 The Emerging Issues Task Force ("EITF") was formed in 1984 to assist the Financial Accounting Standards Board in the early identification and resolution of emerging accounting issues. Topics to be discussed by the EITF are publicly announced prior to its meetings and minutes of all EITF meetings are available to the public. - FN9 FASB ASC paragraph [310-10-05-9](https://asc.understandingaccounting.org/asc/310/10/#310-10-05-9). - FASB ASC Topic 815, Derivatives and Hedging—Embedded Derivatives, generally requires that embedded instruments meeting the definition of a derivative and not clearly and closely related to the host contract be accounted for separately from the host instrument. If the embedded expected residual profit component of an ADC arrangement need not be separately accounted for as a derivative under FASB ASC Topic 815, then the disclosure requirements discussed below for ADC loans and similar arrangements should be followed. FN10 - FN10 The equity kicker (the expected residual profit) would typically not be separated from the host contract and accounted for as a derivative because FASB ASC subparagraph [815-15-25-1(c)](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) exempts a hybrid contract from bifurcation if a separate instrument with the same terms as the embedded equity kicker is not a derivative instrument subject to the requirements of FASB ASC Topic 815. - In certain cases the "lender" has virtually the same potential rewards as those of an owner or a joint venturer by virtue of participating in expected residual profit. FN11 In addition, the ADC Arrangements Subsections of FASB ASC Subtopic 310-10 include a number of other characteristics which, when considered individually or in combination, would suggest that the risks of an ADC arrangement are similar to those associated with an investment in real estate or a joint venture or, conversely, that they are similar to those associated with a loan. Among those other characteristics is whether the lender agrees to provide all or substantially all necessary funds to acquire the property, resulting in the borrower having title to, but little or no equity in, the underlying property. The staff believes that the borrower's equity in the property is adequate to support accounting for the transaction as a mortgage loan when the borrower's initial investment meets the criteria in FASB ASC paragraph [360-20-40-18](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-18) (Property, Plant, and Equipment Topic) FN12 and the borrower's payments of principal and interest on the loan are adequate to maintain a continuing investment in the property which meets the criteria in FASB ASC paragraph [360-20-40-19](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-19). FN13 - FN11 Expected residual profit is defined in the ADC Arrangements Subsections of FASB ASC Subtopic 310-10 as the amount of profit, whether called interest or another name, such as equity kicker, above a reasonable amount of interest and fees expected to be earned by the "lender." - FN12 FASB ASC Subtopic 360-20 establishes standards for the recognition of profit on real estate sales transactions. FASB ASC paragraph [360-20-40-18](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-18) states that the buyer's initial investment shall be adequate to demonstrate the buyer's commitment to pay for the property and shall indicate a reasonable likelihood that the seller will collect the receivable. Guidance on minimum initial investments in various types of real estate is provided in FASB ASC paragraphs [360-20-55-1](https://asc.understandingaccounting.org/asc/360/20/#360-20-55-1) and [360-20-55-2](https://asc.understandingaccounting.org/asc/360/20/#360-20-55-2). - FN13 FASB ASC paragraph [360-20-40-19](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-19) states that the buyer's continuing investment in a real estate transaction shall not qualify unless the buyer is contractually required to pay each year on its total debt for the purchase price of the property an amount at least equal to the level annual payment that would be needed to pay that debt and interest on the unpaid balance over not more than (a) 20 years for debt for land and (b) the customary amortization term of a first mortgage loan by an independent established lending institution for other real estate. - The financial statements of properties which will secure mortgage loans made or to be made from the proceeds of the offering which have the characteristics of real estate investments or joint ventures should be included as required by Rule 3-14 in the registration statement when such properties secure loans previously made, or have been identified as security for probable loans prior to effectiveness, and in filings made pursuant to the undertaking in Item 20D of Securities Act Industry Guide 5. - Rule 1-02(w) of Regulation S-X includes the conditions used in determining whether an acquisition is significant. The separate financial statements of an individual property should be provided when a property would meet the requirements for a significant subsidiary under this rule using the amount of the "loan" as a substitute for the "investment in the subsidiary" in computing the specified conditions. The combined financial statements of properties which are not individually significant should also be provided. However, the staff will not object if the combined financial statements of such properties are not included if none of the conditions specified in Rule 1-02(w), with respect to all such properties combined, exceeds 20% in the aggregate. - Under certain circumstances, information may also be required regarding operating properties underlying mortgage loans where the terms do not result in the lender having virtually the same risks and potential rewards as those of owners or joint venturers. Generally, the staff believes that, where investment risks exist due to substantial asset concentration, financial and other information should be included regarding operating properties underlying a mortgage loan that represents a significant amount of the registrant's assets. Such presentation is consistent with Rule 3-13 of Regulation S-X and Rule 408 under the Securities Act of 1933. - Where the amount of a loan exceeds 20% of the amount in good faith expected to be raised in the offering, disclosures would be expected to consist of financial statements for the underlying operating properties for the periods contemplated by Rule 3-14. Further, where loans on related properties are made to a single person or group of affiliated persons which in the aggregate amount to more than 20% of the amount expected to be raised, the staff believes that such lending arrangements result in a sufficient concentration of assets so as to warrant the inclusion of financial and other information regarding the underlying properties. - Question 2: Will the financial statements of the mortgaged properties be required in filings made under the 1934 Act? - Interpretive Response: Rule 3-09 of Regulation S-X specifies the requirement for significant, as defined, investments in operating entities, the operations of which are not included in the registrant's consolidated financial statements. FN14 Accordingly, the staff believes that the financial statements of properties securing significant loans which have the characteristics of real estate investments or joint ventures should be included in subsequent filings as required by Rule 3-09. The materiality threshold for determining whether such an investment is significant is the same as set forth in paragraph (a) of that Rule. FN15 - FN14 Rule 3-14 states that the financial statements of an acquired property should be furnished if the acquisition took place during the period for which the registrant's income statements are required. Paragraph (b) of the Rule states that the information required by the Rule is not required to be included in a filing on Form 10-K. That exception is consistent with Item 8 of Form 10-K which excludes acquired company financial statements, which would otherwise be required by Rule 3-05 of Regulation S-X, from inclusion in filings on that Form. Those exceptions are based, in part, on the fact that acquired properties and acquired companies will generally be included in the registrant's consolidated financial statements from the acquisition date. - FN15 Rule 3-09(a) states, in part, that "\[i\]f any of the conditions set forth in \[Rule\] 1-02(w), substituting 20 percent for 10 percent in the tests used therein to determine significant subsidiary, are met... separate financial statements... shall be filed." - Likewise, the staff believes that filings made under the 1934 Act should include the same financial and other information relating to properties underlying any loans which are significant as discussed in the last paragraph of Question 1, except that in the determination of significance the 20% disclosure threshold should be measured using total assets. The staff believes that this presentation would be consistent with Rule 12b-20 under the Securities Exchange Act of 1934. - Question 3: The interpretive response to question 1 indicates that the staff believes that the borrower's equity in an operating property is adequate to support accounting for the transaction as a mortgage loan when the borrower's initial investment meets the criteria in FASB ASC paragraph [360-20-40-18](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-18) and the borrower's payments of principal and interest on the loan are adequate to maintain a continuing investment in the property which meets the criteria in FASB ASC paragraph [360-20-40-19](https://asc.understandingaccounting.org/asc/360/20/#360-20-40-19). Is it the staff's view that meeting these criteria is the only way the borrower's equity in the property is considered adequate to support accounting for the transaction as a mortgage loan? - Interpretive Response: No. It is the staff's position that the determination of whether loan accounting is appropriate for these arrangements should be made by the registrant and its independent accountants based on the facts and circumstances of the individual arrangements, using the guidance provided in the ADC Arrangements Subsections of FASB ASC Subtopic 310-10. As stated in those Subsections, loan accounting may not be appropriate when the lender participates in expected residual profit and has virtually the same risks as those of an owner, or joint venturer. In assessing the question of whether the lender has virtually the same risks as an owner, or joint venturer, the essential test that needs to be addressed is whether the borrower has and is expected to continue to have a substantial amount at risk in the project. FN16 The criteria described in FASB ASC Subtopic 360-20, Property, Plant, and Equipment—Real Estate Sales, provide a "safe harbor" for determining whether the borrower has a substantial amount at risk in the form of a substantial equity investment. The borrower may have a substantial amount at risk without meeting the criteria described in FASB ASC Subtopic 360-20. - FN16 Regarding the composition of the borrower's investment, FASB ASC paragraph [310-10-25-20](https://asc.understandingaccounting.org/asc/310/10/#310-10-25-20) indicates that the borrower's investment may include the value of land or other assets contributed by the borrower, net of encumbrances. The staff emphasizes that such paragraph indicates, "...recently acquired property generally should be valued at no higher than cost.. " Thus, for such recently acquired property, appraisals will not be sufficient to justify the use of a value in excess of cost. - Question 4: What financial statements should be included in filings made under the Securities Act regarding investment-type arrangements that individually amount to 10% or more of total assets? - Interpretive Response: In the staff's view, separate audited financial statements should be provided for any investment-type arrangement that constitutes 10% or more of the greater of (i) the amount of minimum proceeds or (ii) the total assets of the registrant, including the amount of proceeds raised, as of the date the filing is required to be made. Of course, the narrative information required by items 14 and 15 of Form S-11 should also be included with respect to these investment-type arrangements. - Question 5: What information must be provided under the Securities Act for investment-type arrangements that individually amount to less than 10%? - Interpretive Response: No specific financial information need be presented for investment-type arrangements that amount to less than 10%. However, where such arrangements aggregate more than 20%, a narrative description of the general character of the properties and arrangements should be included that gives an investor an understanding of the risks and rewards associated with these arrangements. Such information may, for example, include a description of the terms of the arrangements, participation by the registrant in expected residual profits, and property types and locations. - Question 6: What financial statements should be included in annual reports filed under the Exchange Act with respect to investment-type arrangements that constitute 10% or more of the registrant's total assets? - Interpretive Response: In annual reports filed with the Commission, the staff has advised registrants that separate audited financial statements should be provided for each nonconsolidated investment-type arrangement that is 20% or more of the registrant's total assets. While the distribution is on-going, however, the percentage may be calculated using the greater of (i) the amount of the minimum proceeds or (ii) the total assets of the registrant, including the amount of proceeds raised, as of the date the filing is required to be made. In annual reports to shareholders registrants may either include the separate audited financial statements for 20% or more nonconsolidated investment-type arrangements or, if those financial statements are not included, present summarized financial information for those arrangements in the notes to the registrant's financial statements. - The staff has also indicated that separate summarized financial information (as defined in Rule 1-02(bb) of Regulation S-X) should be provided in the footnotes to the registrant's financial statements for each nonconsolidated investment-type arrangement that is 10% or more but less than 20%. Of course, registrants should also make appropriate textural disclosure with respect to material investment-type arrangements in the "business" and "property" sections of their annual reports to the Commission. FN17 - FN17 Registrants are reminded that in filings on Form 8-K that are triggered in connection with an acquisition of an investment-type arrangement, separate audited financial statements are required for any such arrangement that individually constitutes 10% or more. - Question 7: What information should be provided in annual reports filed under the Exchange Act with respect to investment-type arrangements that do not meet the 10% threshold? - Interpretive Response: The staff believes it will not be necessary to provide any financial information (full or summarized) for investment-type arrangements that do not meet the 10% threshold. However, in the staff's view, where such arrangements aggregate more than 20%, a narrative description of the general character of the properties and arrangements would be necessary. The staff believes that information should be included that would give an investor an understanding of the risks and rewards associated with these arrangements. Such information may, for example, include a description of the terms of the arrangements, participation by the registrant in expected residual profits, and property types and locations. Of course, disclosure regarding the operations of such components should be included as part of the Management's Discussion and Analysis where there is a known trend or uncertainty in the operations of such properties, either individually or in the aggregate, which would be reasonably likely to result in a material impact on the registrant's future operations, liquidity or capital resources. ##### [310-10-S99-2](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:4b9d87b91735b184d28633568dcd5388fbaff7f1bb8c3782a6f4e8d8883eb155 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.E, Receivables from Sale of Stock. - (Replaced by SAB 107) - Facts: Capital stock is sometimes issued to officers or other employees before the cash payment is received. - Question: How should the receivables from the officers or other employees be presented in the balance sheet? - Interpretive Response: The amount recorded as a receivable should be presented in the balance sheet as a deduction from stockholders' equity. This is generally consistent with Rule 5-02.30 of Regulation S-X which states that accounts or notes receivable arising from transactions involving the registrant's capital stock should be presented as deductions from stockholders' equity and not as assets. - It should be noted generally that all amounts receivable from officers and directors resulting from sales of stock or from other transactions (other than expense advances or sales on normal trade terms) should be separately stated in the balance sheet irrespective of whether such amounts may be shown as assets or are required to be reported as deductions from stockholders' equity. - The staff will not suggest that a receivable from an officer or director be deducted from stockholders' equity if the receivable was paid in cash prior to the publication of the financial statements and the payment date is stated in a note to the financial statements. However, the staff would consider the subsequent return of such cash payment to the officer or director to be part of a scheme or plan to evade the registration or reporting requirements of the securities laws. ##### [310-10-S99-3](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:da23b79af47e90458bbbb8e54abaaebf12918365e36c4d602b0ab5eaa6495dff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 4.G, Notes and Other Receivables from Affiliates. - Facts: The balance sheet of a corporate general partner is often presented in a registration statement. Frequently, the balance sheet of the general partner discloses that it holds notes or other receivables from a parent or another affiliate. Often the notes or other receivables were created in order to meet the "substantial assets" test which the Internal Revenue Service utilizes in applying its "Safe Harbor" doctrine in the classification of organizations for income tax purposes. - Question: How should such notes and other receivables be reported in the balance sheet of the general partner? - Interpretive Response: While these notes and other receivables evidencing a promise to contribute capital are often legally enforceable, they seldom are actually paid. In substance, these receivables are equivalent to unpaid subscriptions receivable for capital shares which Rule 5-02.30 of Regulation S-X requires to be deducted from the dollar amount of capital shares subscribed. - The balance sheet display of these or similar items is not determined by the quality or actual value of the receivable or other asset "contributed" to the capital of the affiliated general partner, but rather by the relationship of the parties and the control inherent in that relationship. Accordingly, in these situations, the receivable must be treated as a deduction from stockholders' equity in the balance sheet of the corporate general partner. ##### [310-10-S99-4](https://asc.understandingaccounting.org/asc/310/10/#310-10-S99-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:40.463Z to 2026-09-09T23:25:40.463Z Record version: sha256:75033589249314fc5a69e3ca98d6ceccca5f28c874139a0603785a59e7abe99f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 6.L, Financial Reporting Release 28—Accounting for Loan Losses by Registrants Engaged in Lending Activities. - 1\. Accounting for loan losses - General: GAAP for recognition of loan losses is provided by FASB ASC Subtopic 450-20, Contingencies—Loss Contingencies, and FASB ASC Subtopic 310-10, Receivables—Overall. FN6 An estimated loss from a loss contingency, such as the collectibility of receivables, should be accrued when, based on information available prior to the issuance of the financial statements, it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. FN7 FASB ASC Subtopic 310-10 provides more specific guidance on measurement of loan impairment and related disclosures but does not change the fundamental recognition criteria for loan losses provided by FASB ASC 450-20. - FN6 \[Original footnote removed by SAB 114.\] - FN7 FASB ASC paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2). - Further guidance for SEC registrants is provided by FRR 28, which added subsection (b), Procedural Discipline in Determining the Allowance and Provision for Loan Losses to be Reported, of Section 401.09, Accounting for Loan Losses by Registrants Engaged in Lending Activities, to the Codification of Financial Reporting Policies (hereafter referred to as FRR 28). Additionally, public companies are required to comply with the books and records provisions of the Securities Exchange Act of 1934 (Exchange Act). Under Sections 13(b)(2) - (7) of the Exchange Act, registrants must make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the registrant. Registrants also must maintain internal accounting controls that are sufficient to provide reasonable assurances that, among other things, transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP. - This staff interpretation applies to all registrants that are creditors in loan transactions that, individually or in the aggregate, have a material effect on the registrant's financial statements. FN8. - FN8 For purposes of this interpretation, a loan is defined (consistent with the FASB ASC Master Glossary) as 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. For purposes of this interpretation, loans do not include trade accounts receivable or notes receivable with terms less than one year or debt securities subject to the provisions of FASB ASC Topic 320, Investments—Debt and Equity Securities. - 2\. Developing and documenting a systematic methodology - a. Developing a systematic methodology. - Facts: Registrant A, or one of its consolidated subsidiaries, engages in lending activities and is developing or performing a review of its loan loss allowance methodology. - Question: What are some of the factors or elements that the staff normally would expect Registrant A to consider when developing (or subsequently performing an assessment of) its methodology for determining its loan loss allowance under GAAP? - Interpretive Response: The staff normally would expect a registrant that engages in lending activities to develop and document a systematic methodology FN9 to determine its provision for loan losses and allowance for loan losses as of each financial reporting date. It is critical that loan loss allowance methodologies incorporate management's current judgments about the credit quality of the loan portfolio through a disciplined and consistently applied process. A registrant's loan loss allowance methodology is influenced by entity-specific factors, such as an entity's size, organizational structure, business environment and strategy, management style, loan portfolio characteristics, loan administration procedures, and management information systems. - FN9 FRR 28 states that " the Commission's staff normally would expect to find that the books and records of registrants engaged in lending activities include documentation of \[the\]: (a) systematic methodology to be employed each period in determining the amount of the loan losses to be reported, and (b) rationale supporting each period's determination that the amounts reported were adequate." - However, as indicated in the AICPA Audit and Accounting Guide, Depository and Lending Institutions with Conforming Changes as of June 1, 2009 (Audit Guide), while different institutions may use different methods, there are certain common elements that should be included in any \[loan loss allowance\] methodology for it to be effective. FN10 A registrant's loan loss allowance methodology generally should: FN11. - FN10 See paragraph 9.05 of the Audit Guide. - FN11 Ibid. - Include a detailed analysis of the loan portfolio, performed on a regular basis; - Consider all loans (whether on an individual or group basis); - Identify loans to be evaluated for impairment on an individual basis under FASB ASC Subtopic 310-10 and segment the remainder of the portfolio into groups of loans with similar risk characteristics for evaluation and analysis under FASB ASC Subtopic 450-20; - Consider all known relevant internal and external factors that may affect loan collectibility; - Be applied consistently but, when appropriate, be modified for new factors affecting collectibility; - Consider the particular risks inherent in different kinds of lending; - Consider current collateral values (less costs to sell), where applicable; - Require that analyses, estimates, reviews and other loan loss allowance methodology functions be performed by competent and well-trained personnel; - Be based on current and reliable data; - Be well documented, in writing, with clear explanations of the supporting analyses and rationale (see Question 2 below for staff views on documenting a loan loss allowance methodology); and - Include a systematic and logical method to consolidate the loss estimates and ensure the loan loss allowance balance is recorded in accordance with GAAP. - For many entities engaged in lending activities, the allowance and provision for loan losses are significant elements of the financial statements. - Therefore, the staff believes it is appropriate for an entity's management to review, on a periodic basis, its methodology for determining its allowance for loan losses. FN12 Additionally, for registrants that have audit committees, the staff believes that oversight of the financial reporting and auditing of the loan loss allowance by the audit committee can strengthen the registrant's control system and process for determining its allowance for loan losses. FN13 - FN12 For federally insured depository institutions, the December 21, 1993 "Interagency Policy Statement on the Allowance for Loan and Lease Losses (ALLL)" (the 1993 Interagency Policy Statement) indicates that boards of directors and management have certain responsibilities for the ALLL process and amounts reported. For example, as indicated on page 4 of that statement, "the board of directors and management are expected to: Ensure that the institution has an effective loan review system and controls\[;\] Ensure the prompt charge-off of loans, or portions of loans, that available information confirms to be uncollectible\[; and\] Ensure that the institution's process for determining an adequate level for the ALLL is based on a comprehensive, adequately documented, and consistently applied analysis of the institution's loan and lease portfolio." - FN13 SAS 61 (as amended by SAS 90) states, in part: "In connection with each SEC engagement the auditor should discuss with the audit committee the auditor's judgments about the quality, not just the acceptability, of the entity's accounting principles as applied in its financial reporting. The discussion should include items that have a significant impact on the representational faithfulness, verifiability, and neutrality of the accounting information included in the financial statements. \[Footnote omitted.\] Examples of items that may have such an impact are the following: Selection of new or changes to accounting policies. Estimates, judgments, and uncertainties. Unusual transactions. Accounting policies relating to significant financial statement items, including the timing or transactions and the period in which they are recorded." - Selection of new or changes to accounting policies - Estimates, judgments, and uncertainties - Unusual transactions. - Accounting policies relating to significant financial statement items, including the timing or transactions and the period in which they are recorded." - A systematic methodology that is properly designed and implemented should result in a registrant's best estimate of its allowance for loan losses. FN14 Accordingly, the staff normally would expect registrants to adjust their loan loss allowance balance, either upward or downward, in each period for differences between the results of the systematic determination process and the unadjusted loan loss allowance balance in the general ledger. FN15 - FN14 Registrants should also refer to FASB ASC Section 450-20-30, Contingencies—Loss Contingencies—Initial Measurement, which provides accounting and disclosure guidance for situations in which a range of loss can be reasonably estimated but no single amount within the range appears to be a better estimate than any other amount within the range. - FN15 Registrants should refer to the guidance on materiality in SAB Topic 1.M. - b. Documenting a systematic methodology. - Question 1: Assume the same facts as in the previous question in Section 2(a). What would the staff normally expect Registrant A to include in its documentation of its loan loss allowance methodology? - Interpretive Response: In FRR 28, the Commission provided guidance for documentation of loan loss provisions and allowances for registrants engaged in lending activities. The staff believes that appropriate written supporting documentation for the loan loss provision and allowance facilitates review of the loan loss allowance process and reported amounts, builds discipline and consistency into the loan loss allowance determination process, and improves the process for estimating loan losses by helping to ensure that all relevant factors are appropriately considered in the allowance analysis. - The staff, therefore, normally would expect a registrant to document the relationship between the findings of its detailed review of the loan portfolio and the amount of the loan loss allowance and the provision for loan losses reported in each period. FN16 - FN16 FRR 28 states: "The specific rationale upon which the \[loan loss allowance and provision\] amount actually reported is based - i. e., the bridge between the findings of the detailed review \[of the loan portfolio\] and the amount actually reported in each period—would be documented to help ensure the adequacy of the reported amount, to improve auditability, and to serve as a benchmark for exercise of prudent judgment in future periods." - The staff normally would expect to find that registrants maintain written supporting documentation for the following decisions, strategies, and processes: FN17 - FN17 Paragraph 9.64 in the Audit Guide outlines specific aspects of effective internal control related to the allowance for loan losses. These specific aspects include the control environment ("management communication of the need for proper reporting of the allowance"); management reports that summarize loan activity and the institution's procedures and controls ("accumulation of relevant, sufficient, and reliable data on which to base management's estimate of the allowance"); "independent loan review;" review of information and assumptions ("adequate review and approval of the allowance estimates by the individuals specified in management's written policy"); and assessment of the process ("comparison of prior estimates related to the allowance with subsequent results to assess the reliability of the process used to develop the allowance"). - Policies and procedures: - Over the systems and controls that maintain an appropriate loan loss allowance, and - Over the loan loss allowance methodology; - Loan grading system or process; - Summary or consolidation of the loan loss allowance balance; - Validation of the loan loss allowance methodology; and - Periodic adjustments to the loan loss allowance process. - Question 2: The Interpretive Response to Question 2 indicates that the staff normally would expect to find that registrants maintain written supporting documentation for their loan loss allowance policies and procedures. In the staff's view, what aspects of a registrant's loan loss allowance internal accounting control systems and processes would appropriately be addressed in its written policies and procedures? - Interpretive Response: The staff is aware that registrants utilize a wide range of policies, procedures, and control systems in their loan loss allowance processes, and these policies, procedures, and systems are tailored to the size and complexity of the registrant and its loan portfolio. However, the staff believes that, in order for a registrant's loan loss allowance methodology to be effective, the registrant's written policies and procedures for the systems and controls that maintain an appropriate loan loss allowance would likely address the following: - The roles and responsibilities of the registrant's departments and personnel (including the lending function, credit review, financial reporting, internal audit, senior management, audit committee, board of directors, and others, as applicable) who determine or review, as applicable, the loan loss allowance to be reported in the financial statements; FN18 - FN18 Paragraph 9.64 of the Audit Guide discusses "management communication of the need for proper reporting of the allowance." As indicated in that paragraph, the "control environment strongly influences the effectiveness of the system of controls and reflects the overall attitude, awareness, and action of the board of directors and management concerning the importance of control." - The registrant's accounting policies for loans and loan losses, including the policies for charge-offs and recoveries and for estimating the fair value of collateral, where applicable; FN19 - FN19 Paragraph 9.56 of the Audit Guide refers to the documentation, for disclosure purposes, that an entity should include in the notes to the financial statements describing the accounting policies the entity used to estimate its allowance and related provision for loan losses. - The description of the registrant's systematic methodology, which should be consistent with the registrant's accounting policies for determining its loan loss allowance (see Question 4 below for further discussion); FN20 and - FN20 Ibid. As indicated in paragraph 9.56, "\[s\]uch a description should identify the factors that influenced management's judgment (for example, historical losses and existing economic conditions) and may also include discussion of risk elements relevant to particular categories of financial instruments." - The system of internal controls used to ensure that the loan loss allowance process is maintained in accordance with GAAP. FN21 - FN21 See also paragraph 9.64 in the Audit Guide which provides information about specific aspects of effective internal control related to the allowance for loan losses. - The staff normally would expect an internal control system FN22 for the loan loss allowance estimation process to: - - FN22 Ibid. Public companies are required to comply with the books and records provisions of the Exchange Act. Under Sections 13(b)(2) - (7) of the Exchange Act, registrants must make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the registrant. Registrants also must maintain internal accounting controls that are sufficient to provide reasonable assurances that, among other things, transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP. - Include measures to provide assurance regarding the reliability FN23 and integrity of information and compliance with laws, regulations, and internal policies and procedures; FN24 - FN23 Concepts Statement 2, _Qualitative Characteristics of Accounting Information_, provides guidance on "reliability" as a primary quality of accounting information. - FN24 Section 13(b)(2) - (7) of the Exchange Act. - Reasonably assure that the registrant's financial statements are prepared in accordance with GAAP; and - Include a well-defined loan review process. FN25 - FN25 As indicated in paragraph 9.05, item a, in the Audit Guide, a loan loss allowance methodology should "include a detailed and regular analysis of the loan portfolio." Paragraphs 9.06 to 9.13 provide additional information on how creditors traditionally identify and review loans on an individual basis and review or analyze loans on a group or pool basis. - A well-defined loan review process FN26 typically contains: - FN26 Ibid. Additionally, paragraph 9.64 in the Audit Guide provides guidance on the loan review process. As stated in that paragraph, "\[m\]anagement reports summarizing loan activity, renewals, and delinquencies are vital to the timely identification of problem loans." The paragraph further states: "Loan reviews should be conducted by institution personnel who are independent of the underwriting, supervision, and collections functions. The specific lines of reporting depend on the complexity of the institution's organizational structure, but the loan reviewers should report to a high level of management that is independent from the lending process in the institution." - An effective loan grading system that is consistently applied, identifies differing risk characteristics and loan quality problems accurately and in a timely manner, and prompts appropriate administrative actions; FN27 - FN27 Ibid. - Sufficient internal controls to ensure that all relevant loan review information is appropriately considered in estimating losses. This includes maintaining appropriate reports, details of reviews performed, and identification of personnel involved; FN28 and - FN28 Ibid. - Clear formal communication and coordination between a registrant's credit administration function, financial reporting group, management, board of directors, and others who are involved in the loan loss allowance determination or review process, as applicable (e. g., written policies and procedures, management reports, audit programs, and committee minutes). FN29 - FN29 Ibid. - Question 3: The Interpretive Response to Question 3 indicates that the staff normally would expect a registrant's written loan loss allowance policies and procedures to include a description of the registrant's systematic allowance methodology, which should be consistent with its accounting policies for determining its loan loss allowance. What elements of a registrant's loan loss allowance methodology would the staff normally expect to be described in the registrant's written policies and procedures? - Interpretive Response: The staff normally would expect a registrant's written policies and procedures to describe the primary elements of its loan loss allowance methodology, including portfolio segmentation and impairment measurement. The staff normally would expect that, in order for a registrant's loan loss allowance methodology to be effective, the registrant's written policies and procedures would describe the methodology: - For segmenting the portfolio: - How the segmentation process is performed (i. e., by loan type, industry, risk rates, etc.); FN30 - FN30 Paragraph 9.07 in the Audit Guide states that "creditors have traditionally identified loans that are to be evaluated for collectibility by dividing the loan portfolio into different segments. Loans with similar risk characteristics, such as risk classification, past-due status, and type of loan should be grouped together." Paragraph 9.08 provides additional guidance on classifying individual loans and paragraph 9.13 indicates considerations for groups or pools of loans. - When a loan grading system is used to segment the portfolio: - The definitions of each loan grade; - A reconciliation of the internal loan grades to supervisory loan grades, if applicable; and - The delineation of responsibilities for the loan grading system. - For determining and measuring impairment under FASB ASC Subtopic 310-10: FN31 - FN31 See FASB ASC paragraphs [310-10-35-16 through 35-19](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-16) on recognition of impairment and FASB ASC paragraphs [310-10-35-20 through 35-37](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-20) on measurement of impairment. - The methods used to identify loans to be analyzed individually; - For individually reviewed loans that are impaired, how the amount of any impairment is determined and measured, including: - Procedures describing the impairment measurement techniques available; and - Steps performed to determine which technique is most appropriate in a given situation. - The methods used to determine whether and how loans individually evaluated under FASB ASC Subtopic 310-10, but not considered to be individually impaired, should be grouped with other loans that share common characteristics for impairment evaluation under FASB ASC Subtopic 450-20. FN32 - FN32 See FASB ASC paragraph [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36). - For determining and measuring impairment under FASB ASC Subtopic 450-20: FN33 - - FN33 See FASB ASC paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2) on accrual of loss contingencies and FASB ASC paragraphs [310-10-35-5 through 35-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-5) on collectibility of receivables. - How loans with similar characteristics are grouped to be evaluated for loan collectibility (such as loan type, past-due status, and risk); - How loss rates are determined (e. g., historical loss rates adjusted for environmental factors or migration analysis) and what factors are considered when establishing appropriate time frames over which to evaluate loss experience; and - Descriptions of qualitative factors (e. g., industry, geographical, economic, and political factors) that may affect loss rates or other loss measurements. - 3\. Applying a systematic methodology - measuring and documenting loan losses under FASB ASC Subtopic 310-10 - a. Measuring and documenting loan losses under FASB ASC Subtopic 310-10. - Facts: Approximately one-third of Registrant B's commercial loan portfolio consists of large balance, non-homogeneous loans. Due to their large individual balances, these loans meet the criteria under Registrant B's policies and procedures for individual review for impairment under FASB ASC Subtopic 310-10. - Upon review of the large balance loans, Registrant B determines that certain of the loans are impaired as defined by FASB ASC Subtopic 310-10. FN34 - FN34 FASB ASC paragraph [310-10-35-8](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-8) provides that a loan is impaired when, based on current information and events, it is probable that all amounts due will not be collected pursuant to the terms of the loan agreement. - Question: For the commercial loans reviewed under FASB ASC Subtopic 310-10 that are individually impaired, how would the staff normally expect Registrant B to measure and document the impairment on those loans? Can it use an impairment measurement method other than the methods allowed by FASB ASC Subtopic 310-10? - Interpretive Response: For those loans that are reviewed individually under FASB ASC Subtopic 310-10 and considered individually impaired, Registrant B must use one of the methods for measuring impairment that is specified by FASB ASC Subtopic 310-10 (that is, the present value of expected future cash flows, the loan's observable market price, or the fair value of collateral). FN35 Accordingly, in the circumstances described above, for the loans considered individually impaired under FASB ASC Subtopic 310-10, it would not be appropriate for Registrant B to choose a measurement method not prescribed by FASB ASC Subtopic 310-10. For example, it would not be appropriate to measure loan impairment by applying a loss rate to each loan based on the average historical loss percentage for all of its commercial loans for the past five years. - FN35 See FASB ASC paragraph [310-10-35-22](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-22). - The staff normally would expect Registrant B to maintain as sufficient, objective evidence FN36 written documentation to support its measurement of loan impairment under FASB ASC Subtopic 310-10. FN37 If Registrant B uses the present value of expected future cash flows to measure impairment of a loan, it should document the amount and timing of cash flows, the effective interest rate used to discount the cash flows, and the basis for the determination of cash flows, including consideration of current environmental factors FN38 and other information reflecting past events and current conditions. If Registrant B uses the fair value of collateral to measure impairment, the staff normally would expect to find that Registrant B had documented how it determined the fair value, including the use of appraisals, valuation assumptions and calculations, the supporting rationale for adjustments to appraised values, if any, and the determination of costs to sell, if applicable, appraisal quality, and the expertise and independence of the appraiser. FN39 Similarly, the staff normally would expect to find that Registrant B had documented the amount, source, and date of the observable market price of a loan, if that method of measuring loan impairment is used. - FN36 Under GAAS, auditors should obtain "sufficient competent evidential matter" to support its audit opinion. See AU Section 326. The staff normally would expect registrants to maintain such evidential matter for its allowances for loan losses for use by the auditors in conducting their annual audit. - FN37 Paragraph 9.74 in the Audit Guide outlines sources of information, available from management, that the independent accountant should consider in identifying loans that contain high credit risk or other significant exposures and concentrations. These sources of information would also likely include documentation of loan impairment under FASB ASC Subtopic 310-10 or FASB ASC Subtopic 450-20. Additionally, as indicated in paragraphs 9.85 to 9.97 of the Audit Guide, the independent accountant, in conducting an audit, may perform a detailed loan file review for selected loans. A registrant's loan files may contain documentation about borrowers' financial resources and cash flows (see paragraph 9.92) or about the collateral securing the loans, if applicable (see paragraphs 9.94 and 9.95). - FN38 FASB ASC paragraph [310-10-35-27](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-27) indicates that environmental factors include existing industry, geographical, economic, and political factors. - FN39 See paragraphs 9.94 and 9.95 in the Audit Guide for additional information about documentation of loan collateral. - b. Measuring and documenting loan losses under FASB ASC Subtopic 310-10 for a collateral dependent loan. - Facts: Registrant C has a $10 million loan outstanding to Company X that is secured by real estate, which Registrant C individually evaluates under FASB ASC Subtopic 310-10 due to the loan's size. Company X is delinquent in its loan payments under the terms of the loan agreement. Accordingly, Registrant C determines that its loan to Company X is impaired, as defined by FASB ASC Subtopic 310-10. Because the loan is collateral dependent, Registrant C measures impairment of the loan based on the fair value of the collateral. Registrant C determines that the most recent valuation of the collateral was performed by an appraiser eighteen months ago and, at that time, the estimated value of the collateral (fair value less costs to sell) was $12 million. - Registrant C believes that certain of the assumptions that were used to value the collateral eighteen months ago do not reflect current market conditions and, therefore, the appraiser's valuation does not approximate current fair value of the collateral. - Several buildings, which are comparable to the real estate collateral, were recently completed in the area, increasing vacancy rates, decreasing lease rates, and attracting several tenants away from the borrower. Accordingly, credit review personnel at Registrant C adjust certain of the valuation assumptions to better reflect the current market conditions as they relate to the loan's collateral. FN40 After adjusting the collateral valuation assumptions, the credit review department determines that the current estimated fair value of the collateral, less costs to sell, is $8 million. FN41 Given that the recorded investment in the loan is $10 million, Registrant C concludes that the loan is impaired by $2 million and records an allowance for loan losses of $2 million. - FN40 When reviewing collateral dependent loans, Registrant C may often find it more appropriate to obtain an updated appraisal to estimate the effect of current market conditions on the appraised value instead of internally estimating an adjustment. - FN41 An auditor who uses the work of a specialist, such as an appraiser, in performing an audit in accordance with GAAS should refer to the guidance in SAS 73 (AU Section 336). - Question: What documentation would the staff normally expect Registrant C to maintain to support its determination of the allowance for loan losses of $2 million for the loan to Company X? - Interpretive Response: The staff normally would expect Registrant C to document that it measured impairment of the loan to Company X by using the fair value of the loan's collateral, less costs to sell, which it estimated to be $8 million. FN42 This documentation FN43 should include the registrant's rationale and basis for the $8 million valuation, including the revised valuation assumptions it used, the valuation calculation, and the determination of costs to sell, if applicable. - FN42 See paragraphs 9.94 to 9.95 in the Audit Guide for further information about documentation of loan collateral and associated audit procedures that may be performed by the independent accountant. - FN43 As stated in paragraph 9.14 of the Audit Guide, "\[t\]he approach for determination of the allowance should be well documented." - Because Registrant C arrived at the valuation of $8 million by modifying an earlier appraisal, it should document its rationale and basis for the changes it made to the valuation assumptions that resulted in the collateral value declining from $12 million eighteen months ago to $8 million in the current period. - c. Measuring and documenting loan losses under FASB ASC Subtopic 310-10 - fully collateralized loans. - Question: In the staff's view, what is an example of an acceptable documentation practice for a registrant to adequately support its determination that no allowance for loan losses should be recorded for a group of loans because the loans are fully collateralized? - Interpretive Response: Consider the following fact pattern: Registrant D has $10 million in loans that are fully collateralized by highly rated debt securities with readily determinable market values. The loan agreement for each of these loans requires the borrower to provide qualifying collateral sufficient to maintain a loan-to-value ratio with sufficient margin to absorb volatility in the securities' market prices. Registrant D's collateral department has physical control of the debt securities through safekeeping arrangements. In addition, Registrant D perfected its security interest in the collateral when the funds were originally distributed. On a quarterly basis, Registrant D's credit administration function determines the market value of the collateral for each loan using two independent market quotes and compares the collateral value to the loan carrying value. If there are any collateral deficiencies, Registrant D notifies the borrower and requests that the borrower immediately remedy the deficiency. Due in part to its efficient operation, Registrant D has historically not incurred any material losses on these loans. Registrant D believes these loans are fully-collateralized and therefore does not maintain any loan loss allowance balance for these loans. - Registrant D's management summary of the loan loss allowance includes documentation indicating that, in accordance with its loan loss allowance policy, the collateral protection on these loans has been verified by the registrant, no probable loss has been incurred, and no loan loss allowance is necessary. - Documentation in Registrant D's loan files includes the two independent market quotes obtained each quarter for each loan's collateral amount, the documents evidencing the perfection of the security interest in the collateral, and other relevant supporting documents. Additionally, Registrant D's loan loss allowance policy includes a discussion of how to determine when a loan is considered "fully collateralized" and does not require a loan loss allowance. Registrant D's policy requires the following factors to be considered and its findings concerning these factors to be fully documented: - Volatility of the market value of the collateral; - Recency and reliability of the appraisal or other valuation; - Recency of the registrant's or third party's inspection of the collateral; - Historical losses on similar loans; - Confidence in the registrant's lien or security position including appropriate: - Type of security perfection (e. g., physical possession of collateral or secured filing); - Filing of security perfection (i. e., correct documents and with the appropriate officials); and - Relationship to other liens; and - Other factors as appropriate for the loan type. - In the staff's view, Registrant D's documentation supporting its determination that certain of its loans are fully collateralized, and no loan loss allowance should be recorded for those loans, is acceptable under FRR 28. - 4\. Applying a systematic methodology - measuring and documenting loan losses under FASB ASC Subtopic 450-20 - a. Measuring and documenting loan losses under FASB ASC Subtopic 450-20. - Question 1: In the staff's view, what are some general considerations for a registrant in applying its systematic methodology to measure and document loan losses under FASB ASC Subtopic 450-20? - Interpretive Response: For loans evaluated on a group basis under FASB ASC Subtopic 450-20, the staff believes that a registrant should segment the loan portfolio by identifying risk characteristics that are common to groups of loans. FN44 Registrants typically decide how to segment their loan portfolios based on many factors, which vary with their business strategies as well as their information system capabilities. Regardless of the segmentation method used, the staff normally would expect a registrant to maintain documentation to support its conclusion that the loans in each segment have similar attributes or characteristics. As economic and other business conditions change, registrants often modify their business strategies, which may result in adjustments to the way in which they segment their loan portfolio for purposes of estimating loan losses. The staff normally would expect registrants to maintain documentation to support these segmentation adjustments. FN45 - FN44 Paragraph 9.07 of the Audit Guide indicates that "loans with similar risk characteristics, such as risk classification, past-due status, and type of loan, should be grouped together." - FN45 Segmentation of the loan portfolio is a standard element in a loan loss allowance methodology. As indicated in paragraph 9.05 of the Audit Guide, the loan loss allowance methodology "should be well documented, with clear explanations of the supporting analyses and rationale." - Based on the segmentation of the loan portfolio, a registrant should estimate the FASB ASC Subtopic 450-20 portion of its loan loss allowance. For those segments that require an allowance for loan losses, FN46 the registrant should estimate the loan losses, on at least a quarterly basis, based upon its ongoing loan review process and analysis of loan performance. FN47 The registrant should follow a systematic and consistently applied approach to select the most appropriate loss measurement methods and support its conclusions and rationale with written documentation. FN48 - FN46 An example of a loan segment that does not generally require an allowance for loan losses is a group of loans that are fully secured by deposits maintained at the lending institution. - FN47 FRR 28 refers to a "systematic methodology to be employed each period" in determining provisions and allowances for loan losses. As indicated in FRR 28, the staff normally would expect that the systematic methodology would be documented "to help ensure that all matters affecting loan collectibility will consistently be identified in the detailed \[loan\] review process." - FN48 Ibid. Also, as indicated in paragraph 9.05 of the Audit Guide, the loan loss allowance methodology "should be well documented, with clear explanations of the supporting analyses and rationale." Further, as indicated in paragraph 9.14 of the Audit Guide, "\[t\]he approach for determination of the allowance should be well documented." - Facts: After identifying certain loans for evaluation under FASB ASC Subtopic 310-10, Registrant E segments its remaining loan portfolio into five pools of loans. For three of the pools, it measures loan impairment under FASB ASC Subtopic 450-20 by applying historical loss rates, adjusted for relevant environmental factors, to the pools' aggregate loan balances. For the remaining two pools of loans, Registrant E uses a loss estimation model that is consistent with GAAP to measure loan impairment under FASB ASC Subtopic 450-20. - Question 2: What documentation would the staff normally expect Registrant E to prepare to support its loan loss allowance for its pools of loans under FASB ASC Subtopic 450-20? - Interpretive Response: Regardless of the method used to determine loan loss measurements under FASB ASC 450-20, Registrant E should demonstrate and document that the loss measurement methods used to estimate the loan loss allowance for each segment of its loan portfolio are determined in accordance with GAAP as of the financial statement date. FN49 - FN49 Refer to FASB ASC paragraph [450-20-25-2(b)](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2). Also, as indicated in FASB ASC paragraph [310-10-35-4(c)](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-4), "\[t\]he approach for determination of the allowance shall be well documented and applied consistently from period to period." - As indicated for Registrant E, one method of estimating loan losses for groups of loans is through the application of loss rates to the groups' aggregate loan balances. Such loss rates typically reflect the registrant's historical loan loss experience for each group of loans, adjusted for relevant environmental factors (e. g., industry, geographical, economic, and political factors) over a defined period of time. If a registrant does not have loss experience of its own, it may be appropriate to reference the loss experience of other companies in the same business, provided that the registrant demonstrates that the attributes of the loans in its portfolio segment are similar to those of the loans included in the portfolio of the registrant providing the loss experience. FN50 Registrants should maintain supporting documentation for the technique used to develop their loss rates, including the period of time over which the losses were incurred. If a range of loss is determined, registrants should maintain documentation to support the identified range and the rationale used for determining which estimate is the best estimate within the range of loan losses. FN51 - FN50 Refer to FASB ASC paragraphs [310-10-35-10 through 35-11](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-10) . - FN51 Registrants should also refer to FASB ASC Subtopic 450-20, which provides guidance for situations in which a range of loss can be reasonably estimated but no single amount within the range appears to be a better estimate than any other amount within the range. Also, paragraph 9.14 of the Audit Guide notes the use of "a method that results in a range of estimates for the allowance," except for impairment measurement under FASB ASC Subtopic 310-10, which is based on a single best estimate and not a range of estimates. Paragraph 9.14 also states that "\[t\]he approach for determination of the allowance should be well documented." - The staff normally would expect that, before employing a loss estimation model, a registrant would evaluate and modify, as needed, the model's assumptions to ensure that the resulting loss estimate is consistent with GAAP. In order to demonstrate consistency with GAAP, registrants that use loss estimation models should typically document the evaluation, the conclusions regarding the appropriateness of estimating loan losses with a model or other loss estimation tool, and the objective support for adjustments to the model or its results. FN52 - FN52 The systematic methodology (including, if applicable, loss estimation models) used to determine loan loss provisions and allowances should be documented in accordance with FRR 28, paragraph 9.05 of the Audit Guide, and FASB ASC Subtopic 310-10. - In developing loss measurements, registrants should consider the impact of current environmental factors and then document which factors were used in the analysis and how those factors affected the loss measurements. Factors that should be considered in developing loss measurements include the following: FN53 - - FN53 Refer to paragraph 9.13 in the Audit Guide. - Levels of and trends in delinquencies and impaired loans; - Levels of and trends in charge-offs and recoveries; - Trends in volume and terms of loans; - Effects of any changes in risk selection and underwriting standards, and other changes in lending policies, procedures, and practices; - Experience, ability, and depth of lending management and other relevant staff; - National and local economic trends and conditions; - Industry conditions; and - Effects of changes in credit concentrations. - For any adjustment of loss measurements for environmental factors, a registrant should maintain sufficient, objective evidence FN54 (a) to support the amount of the adjustment and (b) to explain why the adjustment is necessary to reflect current information, events, circumstances, and conditions in the loss measurements. - FN54 AU 326 describes the "sufficient competent evidential matter" that auditors must consider in accordance with GAAS. - b. Measuring and documenting loan losses under FASB ASC Subtopic 450-20 - adjusting loss rates. - Facts: Registrant F's lending area includes a metropolitan area that is financially dependent upon the profitability of a number of manufacturing businesses. These businesses use highly specialized equipment and significant quantities of rare metals in the manufacturing process. Due to increased low-cost foreign competition, several of the parts suppliers servicing these manufacturing firms declared bankruptcy. The foreign suppliers have subsequently increased prices and the manufacturing firms have suffered from increased equipment maintenance costs and smaller profit margins. - Additionally, the cost of the rare metals used in the manufacturing process increased and has now stabilized at double last year's price. Due to these events, the manufacturing businesses are experiencing financial difficulties and have recently announced downsizing plans. - Although Registrant F has yet to confirm an increase in its loss experience as a result of these events, management knows that it lends to a significant number of businesses and individuals whose repayment ability depends upon the long-term viability of the manufacturing businesses. Registrant F's management has identified particular segments of its commercial and consumer customer bases that include borrowers highly dependent upon sales or salary from the manufacturing businesses. Registrant F's management performs an analysis of the affected portfolio segments to adjust its historical loss rates used to determine the loan loss allowance. In this particular case, Registrant F has experienced similar business and lending conditions in the past that it can compare to current conditions. - Question: How would the staff normally expect Registrant F to document its support for the loss rate adjustments that result from considering these manufacturing firms' financial downturns? FN55 - FN55 This question and response would also apply to other registrant fact patterns in which the registrant adjusts loss rates for environmental factors. - Interpretive Response: The staff normally would expect Registrant F to document its identification of the particular segments of its commercial and consumer loan portfolio for which it is probable that the manufacturing business' financial downturn has resulted in loan losses. In addition, the staff normally would expect Registrant F to document its analysis that resulted in the adjustments to the loss rates for the affected portfolio segments. FN56 The staff normally would expect that, as part of its documentation, Registrant F would maintain copies of the documents supporting the analysis, which may include relevant economic reports, economic data, and information from individual borrowers. - FN56 Paragraph 9.56 of the Audit Guide refers to the documentation, for disclosure purposes, that an entity should include in the notes to the financial statements describing the accounting policies and methodology the entity used to estimate its allowance and related provision for loan losses. As indicated in paragraph 9.56, "\[s\]uch a description should identify the factors that influenced management's judgment (for example, historical losses and existing economic conditions) and may also include discussion of risk elements relevant to particular categories of financial instruments." - Because in this case Registrant F has experienced similar business and lending conditions in the past, it should consider including in its supporting documentation an analysis of how the current conditions compare to its previous loss experiences in similar circumstances. The staff normally would expect that, as part of Registrant F's effective loan loss allowance methodology, it would create a summary of the amount and rationale for the adjustment factor for review by management prior to the issuance of the financial statements. FN57 - FN57 Paragraph 9.64 in the Audit Guide indicates that effective internal control related to the allowance for loan losses should include "accumulation of relevant, sufficient, and reliable data on which to base management's estimate of the allowance." - c. Measuring and documenting loan losses under FASB ASC Subtopic 450-20 estimating losses on loans individually reviewed for impairment but not considered individually impaired. - Facts: Registrant G has outstanding loans of $2 million to Company Y and $1 million to Company Z, both of which are paying as agreed upon in the loan documents. The registrant's loan loss allowance policy specifies that all loans greater than $750,000 must be individually reviewed for impairment under FASB ASC Subtopic 310-10. Company Y's financial statements reflect a strong net worth, good profits, and ongoing ability to meet debt service requirements. In contrast, recent information indicates Company Z's profitability is declining and its cash flow is tight. Accordingly, this loan is rated substandard under the registrant's loan grading system. Despite its concern, management believes Company Z will resolve its problems and determines that neither loan is individually impaired as defined by FASB ASC Subtopic 310-10. - Registrant G segments its loan portfolio to estimate loan losses under FASB ASC Subtopic 450-20. Two of its loan portfolio segments are Segment 1 and Segment 2. The loan to Company Y has risk characteristics similar to the loans included in Segment 1 and the loan to Company Z has risk characteristics similar to the loans included in Segment 2. FN58 - FN58 These groups of loans do not include any loans that have been individually reviewed for impairment under FASB ASC Section 310-10-35, Receivables—Overall—Subsequent Measurement, and determined to be impaired as defined by FASB ASC Section 310-10-35. - In its determination of its loan loss allowance under FASB ASC Subtopic 450-20, Registrant G includes its loans to Company Y and Company Z in the groups of loans with similar characteristics (i. e., Segment 1 for Company Y's loan and Segment 2 for Company Z's loan). FN59 Management's analyses of Segment 1 and Segment 2 indicate that it is probable that each segment includes some losses, even though the losses cannot be identified to one or more specific loans. Management estimates that the use of its historical loss rates for these two segments, with adjustments for changes in environmental factors, provides a reasonable estimate of the registrant's probable loan losses in these segments. - FN59 FASB ASC paragraph [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36) states that if a creditor concludes that an individual loan specifically identified for evaluation is not impaired under FASB ASC Subtopic 310-10, that loan may be included in the assessment of the allowance for loan losses under FASB ASC Subtopic 450-20, but only if specific characteristics of the loan indicate that it is probable that there would be an incurred loss in a group of loans with those characteristics. - Question: How would the staff normally expect Registrant G to adequately document a loan loss allowance under FASB ASC Subtopic 450-20 for these loans that were individually reviewed for impairment but are not considered individually impaired? - Interpretive Response: The staff normally would expect that, as part of Registrant G's effective loan loss allowance methodology, it would document its decision to include its loans to Company Y and Company Z in its determination of its loan loss allowance under FASB ASC Subtopic 450-20. FN60 The staff also normally would expect that Registrant G would document the specific characteristics of the loans that were the basis for grouping these loans with other loans in Segment 1 and Segment 2, respectively. FN61 Additionally, the staff normally would expect Registrant G to maintain documentation to support its method of estimating loan losses for Segment 1 and Segment 2, which typically would include the average loss rate used, the analysis of historical losses by loan type and by internal risk rating, and support for any adjustments to its historical loss rates. FN62 The registrant would typically maintain copies of the economic and other reports that provided source data. - FN60 Paragraph 9.05 in the Audit Guide indicates that an entity's method of estimating credit losses should "include a detailed and regular analysis of the loan portfolio," "consider all loans (whether on an individual or pool-of-loans basis)," "be based on current and reliable data," and "be well documented, with clear explanations of the supporting analyses and rationale." FASB ASC paragraph [310-10-35-36](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-36) provides guidance as to the analysis to be performed when determining whether a loan that is not individually impaired under FASB ASC Subtopic 310-10 should be included in the assessment of the loan loss allowance under FASB ASC Subtopic 450-20. - FN61 Ibid. - FN62 Ibid. - When measuring and documenting loan losses, Registrant G should take steps to prevent layering loan loss allowances. Layering is the inappropriate practice of recording in the allowance more than one amount for the same probable loan loss. Layering can happen when a registrant includes a loan in one segment, determines its best estimate of loss for that loan either individually or on a group basis (after taking into account all appropriate environmental factors, conditions, and events), and then includes the loan in another group, which receives an additional loan loss allowance amount. - 5\. Documenting the results of a systematic methodology - a. Documenting the results of a systematic methodology - general. - Facts: Registrant H has completed its estimation of its loan loss allowance for the current reporting period, in accordance with GAAP, using its established systematic methodology. - Question: What summary documentation would the staff normally expect Registrant H to prepare to support the amount of its loan loss allowance to be reported in its financial statements? - Interpretive Response: The staff normally would expect that, to verify that loan loss allowance balances are presented fairly in accordance with GAAP and are auditable, management would prepare a document that summarizes the amount to be reported in the financial statements for the loan loss allowance. FN63 Common elements that the staff normally would expect to find documented in loan loss allowance summaries include: FN64 - - FN63 FRR 28 states: "\[t\]he specific rationale upon which the \[loan loss allowance and provision\] amount actually reported is based-i. e., the bridge between the findings of the detailed review \[of the loan portfolio\] and the amount actually reported in each period-would be documented to help ensure the adequacy of the reported amount, to improve auditability, and to serve as a benchmark for exercise of prudent judgment in future periods." - FN64 See also paragraph 9.14 of the Audit Guide. - The estimate of the probable loss or range of loss incurred for each category evaluated (e. g., individually evaluated impaired loans, homogeneous pools, and other groups of loans that are collectively evaluated for impairment); - The aggregate probable loss estimated using the registrant's methodology; - A summary of the current loan loss allowance balance; - The amount, if any, by which the loan loss allowance balance is to be adjusted; FN65 and - FN65 Subsequent to adjustments, the staff normally would expect that there would be no material differences between the consolidated loss estimate, as determined by the methodology, and the final loan loss allowance balance reported in the financial statements. Registrants should refer to SAB 99 and SAS 89 and their amendments to AU Section 310. - Depending on the level of detail that supports the loan loss allowance analysis, detailed subschedules of loss estimates that reconcile to the summary schedule. - Generally, a registrant's review and approval process for the loan loss allowance relies upon the data provided in these consolidated summaries. There may be instances in which individuals or committees that review the loan loss allowance methodology and resulting allowance balance identify adjustments that need to be made to the loss estimates to provide a better estimate of loan losses. These changes may be due to information not known at the time of the initial loss estimate (e. g., information that surfaces after determining and adjusting, as necessary, historical loss rates, or a recent decline in the marketability of property after conducting a FASB ASC Subtopic 310-10 valuation based upon the fair value of collateral). It is important that these adjustments are consistent with GAAP and are reviewed and approved by appropriate personnel. FN66 Additionally, it would typically be appropriate for the summary to provide each subsequent reviewer with an understanding of the support behind these adjustments. Therefore, the staff normally would expect management to document the nature of any adjustments and the underlying rationale for making the changes. FN67 - FN66 Paragraph 9.64 in the Audit Guide indicates that effective internal control related to the allowance for loan losses should include "adequate review and approval of the allowance estimates by the individuals specified in management's written policy." - FN67 See the guidance in paragraph 9.14 of the Audit Guide ("\[t\]he approach for determination of the allowance should be well documented") and in FRR 28 ("the specific rationale upon which the amount actually reported in each individual period is based would be documented"). - The staff also normally would expect this documentation to be provided to those among management making the final determination of the loan loss allowance amount. FN68 - FN68 Ibid. - b. Documenting the results of a systematic methodology allowance adjustments. - Facts: Registrant I determines its loan loss allowance using an established systematic process. At the end of each reporting period, the accounting department prepares a summary schedule that includes the amount of each of the components of the loan loss allowance, as well as the total loan loss allowance amount, for review by senior management, including the Credit Committee. Members of senior management meet to discuss the loan loss allowance. During these discussions, they identify changes that are required by GAAP to be made to certain of the loan loss allowance estimates. As a result of the adjustments made by senior management, the total amount of the loan loss allowance changes. However, senior management (or its designee) does not update the loan loss allowance summary schedule to reflect the adjustments or reasons for the adjustments. When performing their audit of the financial statements, the independent accountants are provided with the original loan loss allowance summary schedule reviewed by senior management, as well as a verbal explanation of the changes made by senior management when they met to discuss the loan loss allowance. - Question: In the staff's view, are Registrant I's documentation practices related to the balance of its loan loss allowance in compliance with existing documentation guidance in this area? - Interpretive Response: No. A registrant should maintain supporting documentation for the loan loss allowance amount reported in its financial statements. FN69 As illustrated above, there may be instances in which loan loss allowance reviewers identify adjustments that need to be made to the loan loss estimates. The staff normally would expect the nature of the adjustments, how they were measured or determined, and the underlying rationale for making the changes to the loan loss allowance balance to be documented. FN70 The staff also normally would expect appropriate documentation of the adjustments to be provided to management for review of the final loan loss allowance amount to be reported in the financial statements. This documentation should also be made available to the independent accountants. If changes frequently occur during management or credit committee reviews of the loan loss allowance, management may find it appropriate to analyze the reasons for the frequent changes and to reassess the methodology the registrant uses. FN71 - FN69 Ibid. - FN70 Ibid. - FN71 As outlined in paragraph 9.64 of the Audit Guide, effective internal controls related to the allowance for loan losses should include adequate review and approval of allowance estimates, including review of sources of relevant information, review of development of assumptions, review of reasonableness of assumptions and resulting estimates, and consideration of changes in previously established methods to arrive at the allowance. - 6\. Validating a systematic methodology - Question: What is the staff's guidance to a registrant on validating, and documenting the validation of, its systematic methodology used to estimate loan loss allowances? - Interpretive Response: The staff believes that a registrant's loan loss allowance methodology is considered valid when it accurately estimates the amount of loss contained in the portfolio. Thus, the staff normally would expect the registrant's methodology to include procedures that adjust loan loss estimation methods to reduce differences between estimated losses and actual subsequent charge-offs, as necessary. To verify that the loan loss allowance methodology is valid and conforms to GAAP, the staff believes it is appropriate for management to establish internal control policies, FN72 appropriate for the size of the registrant and the type and complexity of its loan products. These policies may include procedures for a review, by a party who is independent of the allowance for loan losses estimation process, of the allowance for loan losses methodology and its application in order to confirm its effectiveness. - FN72 Ibid. - In practice, registrants employ numerous procedures when validating the reasonableness of their loan loss allowance methodology and determining whether there may be deficiencies in their overall methodology or loan grading process. Examples are: - A review of trends in loan volume, delinquencies, restructurings, and concentrations. - A review of previous charge-off and recovery history, including an evaluation of the timeliness of the entries to record both the charge-offs and the recoveries. - A review by a party that is independent of the loan loss allowance estimation process. This often involves the independent party reviewing, on a test basis, source documents and underlying assumptions to determine that the established methodology develops reasonable loss estimates. - An evaluation of the appraisal process of the underlying collateral. This may be accomplished by periodically comparing the appraised value to the actual sales price on selected properties sold. - It is the staff's understanding that, in practice, management usually supports the validation process with the workpapers from the loan loss allowance review function. Additional documentation often includes the summary findings of the independent reviewer. The staff normally would expect that, if the methodology is changed based upon the findings of the validation process, documentation that describes and supports the changes would be maintained. FN73 - FN73 See paragraph 9.64 of the Audit Guide. Source downloaded (UTC): 2026-09-09T23:25:44.299Z to 2026-09-09T23:26:21.150Z Record version: sha256:dad86a8f062f0655c04f38dd14d590dfd543d6cb4b27c8bb0db6ec8f23d60a8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20: Receivables — Nonrefundable Fees and Other Costs ### Machine-generated study aids ```json { "summary": "ASC 310-20 governs how lenders and loan purchasers account for nonrefundable fees, origination costs, commitment fees, syndication fees, credit card fees, and purchase premiums/discounts. The core rule is that loan origination fees and direct loan origination costs are deferred, offset, and recognized only as a net amount over the life of the loan as a yield (interest income) adjustment using the interest method; all other lending-related costs (advertising, solicitation, servicing, unsuccessful efforts, occupancy, equipment) are expensed as incurred. It also prescribes when a refinancing/restructuring is treated as a new loan versus a carryover of unamortized net fees and costs.", "key_points": [ "Loan origination fees and direct loan origination costs shall be deferred (310-20-25-2), offset against each other with only the net amount deferred (310-20-30-2), and recognized over the life of the loan as an adjustment of yield (310-20-35-2).", "All other lending-related costs — advertising, soliciting borrowers, servicing, credit policy administration, unsuccessful loan efforts, idle time, and indirect costs such as rent, depreciation, and occupancy — shall be charged to expense as incurred (310-20-25-3); origination software and service-bureau processing fees are not deferrable (310-20-25-4 through 25-5), while bonuses/commissions are deferrable only to the extent allocable to time spent on qualifying activities for completed loans (310-20-25-6 through 25-7).", "Commitment fees are deferred and, if the commitment is exercised, recognized over the life of the loan as a yield adjustment or, if it expires unexercised, recognized in income upon expiration (310-20-35-3, 310-20-40-1); if exercise is remote the fee is amortized straight-line as service fee income, and if net costs exceed fees with remote exercise those costs are expensed immediately (310-20-35-3(a), 310-20-25-13).", "Credit card fees are deferred and recognized straight-line over the period the fee entitles the cardholder to use the card; credit card origination costs (including amounts paid to third parties for individually acquired accounts) are netted against the fee and amortized straight-line over the privilege period, which is one year if there is no significant fee (310-20-25-15 through 25-18, 310-20-35-5 through 35-8).", "A refinanced or restructured loan is accounted for as a new loan — with unamortized net fees, costs, and prepayment penalties recognized in interest income — only if the new loan's terms are at least as favorable as terms for comparable new borrowers and modifications are more than minor (a 10 percent cash flow present value difference test) (310-20-35-9 through 35-11); otherwise those amounts carry forward into the net investment in the new loan (310-20-35-10).", "The purchaser's initial investment includes amounts paid to the seller plus fees paid less fees received, with the difference from principal recognized as a yield adjustment over the loan's life; all other acquisition costs are expensed as incurred (310-20-30-5, 310-20-25-22 through 25-23, 310-20-35-15).", "Net fees or costs are amortized by the interest method using contractual payment terms without anticipating prepayments, unless the entity holds a large number of similar loans with probable, reasonably estimable prepayments (310-20-35-18, 310-20-35-26); demand loans and revolving lines of credit use straight-line recognition (310-20-35-22 through 35-25), and no amortization occurs while interest income is not being recognized due to collectibility concerns (310-20-35-17)." ], "categories": [ "Recognition", "Initial measurement", "Subsequent measurement", "Financial instruments" ], "audience_level": "intermediate", "student_note": "This is the classic \"points and fees\" subtopic: fees are never revenue up front — they ride the loan as a yield adjustment, while marketing and unsuccessful-effort costs hit expense immediately. The most common mistake is deferring all internal loan department costs; only incremental direct costs of specified activities on completed loans (and only the allocable portion of compensation) qualify.", "related_topics": [ "310-10", "310-40", "326-20", "815-25", "835-30", "860-20" ], "key_concepts": [ "nonrefundable loan origination fees", "direct loan origination costs", "commitment fees", "credit card fees and privilege period", "interest method yield adjustment", "loan refinancing or restructuring", "purchase premium and discount", "anticipated prepayments" ] } ``` Source downloaded (UTC): 2026-09-09T23:25:44.299Z to 2026-09-09T23:25:44.299Z Record version: sha256:52d4c80f4f6098b01e613677d061aba057ce3b4fe2137a5e165ab57889b8d98f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/20/#00-status) SEC content: no ##### [310-20-00-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:44.299Z to 2026-09-09T23:25:44.299Z Record version: sha256:69bd0020b4be73a49407d456fe42ce2eeba80e9c37914a3deecb73e92c97dedf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateAmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateAmendedAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (2nd def.)AddedAccounting Standards Update No. 2016-1912/14/2016
Public Business EntityAddedAccounting Standards Update No. 2017-0803/30/2017
Purchased Financial Assets with Credit DeteriorationAmendedAccounting Standards Update No. 2016-1912/14/2016
Purchased Financial Assets with Credit DeteriorationAddedAccounting Standards Update No. 2016-1306/16/2016
Recorded InvestmentSupersededAccounting Standards Update No. 2022-0203/31/2022
Recorded InvestmentAmendedAccounting Standards Update No. 2015-1006/12/2015
310-20-15-1AmendedAccounting Standards Update No. 2016-0202/25/2016
310-20-15-3AmendedAccounting Standards Update No. 2016-1306/16/2016
310-20-15-3AmendedAccounting Standards Update No. 2012-0410/01/2012
310-20-15-4AmendedAccounting Standards Update No. 2016-1306/16/2016
310-20-15-4AmendedAccounting Standards Update No. 2012-0410/01/2012
310-20-35-2AmendedAccounting Standards Update No. 2022-0203/31/2022
310-20-35-6AmendedAccounting Standards Update No. 2015-1006/12/2015
310-20-35-9AmendedAccounting Standards Update No. 2022-0203/31/2022
310-20-35-9AmendedAccounting Standards Update No. 2016-1306/16/2016
310-20-35-9AmendedAccounting Standards Update No. 2012-0410/01/2012
310-20-35-10AmendedAccounting Standards Update No. 2022-0203/31/2022
310-20-35-12SupersededAccounting Standards Update No. 2022-0203/31/2022
310-20-35-12A through 35-12D
AddedAccounting Standards Update No. 2022-0203/31/2022
310-20-35-33AmendedAccounting Standards Update No. 2020-0810/15/2020
310-20-35-33AmendedAccounting Standards Update No. 2017-0803/30/2017
310-20-40-2 through 40-12
AddedAccounting Standards Update No. 2022-0203/31/2022
310-20-50-3AmendedMaintenance Update 2016-11 (PDF)06/27/2016
310-20-50-4AmendedAccounting Standards Update No. 2015-1006/12/2015
310-20-55-18A through 55-18F
AddedAccounting Standards Update No. 2022-0203/31/2022
310-20-55-51 through 55-56
AddedAccounting Standards Update No. 2022-0203/31/2022
310-20-60-1SupersededAccounting Standards Update No. 2016-1306/16/2016
310-20-60-2AmendedAccounting Standards Update No. 2016-1306/16/2016
310-20-65-1AddedAccounting Standards Update No. 2017-0803/30/2017
310-20-65-2AddedAccounting Standards Update No. 2020-0810/15/2020
Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:de4ea32cf4a086b4bd506797e9414decf53f9d2a48b32801f77b351985eeb19a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/20/#05-overview-and-background) SEC content: no ##### [310-20-05-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:3dadbf37c781947446bb9df0d38d8e6913fe6193f213c736842ff57337b53c2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on the recognition, measurement, derecognition, and disclosure of nonrefundable fees, origination costs, and acquisition 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.") and [loan](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.") purchases. #### Nonrefundable Fees and Costs ##### [310-20-05-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:780649a3f15def2b2479abf5cdd73e2f4881432d0dcb506b6e7a3ad2f3b3319e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may acquire a loan by lending (originating the loan) or by purchasing (acquiring a loan from a party other than the borrower). This Subtopic establishes standards of financial accounting and reporting for nonrefundable fees and costs associated with lending activities and loan purchases. The lender's activities that precede the disbursement of funds can generally be distinguished between the following: 1. a Efforts to identify and attract potential borrowers 2. b Efforts necessary to originate a loan or loan commitment after a potential borrower requests a loan or loan commitment. Nonrefundable fees have many different names in practice, such as origination fees, points, placement fees, [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."), application fees, management fees, restructuring fees, and syndication fees, but, for purposes of this Subtopic, they are referred to as [loan origination fees](https://asc.understandingaccounting.org/glossary/l/#loan-origination-fees "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."), commitment fees, or syndication fees. #### Credit Card Arrangements ##### [310-20-05-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:50a2478c0d8810751fa3c463e11c64527579cfe6b5461598bc11438602ae650b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Available lines of credit under credit card and similar charge card arrangements are loan commitments, and fees collected in connection with such cards ([credit card fees](https://asc.understandingaccounting.org/glossary/c/#credit-card-fees "The periodic uniform fees that entitle cardholders to use credit cards. The amount of such fees generally is not dependent upon the level of credit available or frequency of usage. Typically the use of credit cards facilitates the cardholder's payment for the purchase of goods and services on a periodic, as-billed basis (usually monthly), involves the extension of credit, and, if payment is not made when billed, involves imposition of interest or finance charges. Credit card fees include fees received in similar arrangements, such as charge card and cash card fees.")) are viewed in part as being loan commitment fees. Entities issue credit cards, debit cards, bank charge cards, and other similar cards (collectively, credit cards) with a variety of terms. An issuer may charge an origination fee in connection with the issuance of a credit card and periodic renewal fees for the continued extension of credit card privileges. As part of a promotion to attract new cardholders or retain existing cardholders, some of those issuers may waive the payment of credit card fees for the initial use period or in some cases for a longer period. Other entities issue credit cards that do not require the payment of any fees for the use of the credit card. ##### [310-20-05-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:47.432Z to 2026-09-09T23:25:47.432Z Record version: sha256:7c21163f9f025692c8ced20623fe0d6850a8dab6211f6e0aea3310433b7913d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity (credit card issuer) may acquire credit card accounts by paying an amount to a third party. The credit card accounts typically have no outstanding receivable balances at the time acquired. The credit card accounts are acquired individually (one at a time) by paying an amount for each approved credit card agreement. The third party may be any of the following: 1. a A direct marketing specialist 2. b An affinity group (a professional, cultural, or other organization) 3. c A cobrander (an airline entity, automobile manufacturing entity, hotel entity, or other commercial or retailing entity). Under a cobranding arrangement, the third party's name is included on the credit card, and the third party has a continuing obligation to provide goods or services, such as product discounts, to cardholders for an extended period that directly or indirectly benefits the credit card issuer. 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. Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:81848d29a765817b3d55f96d7b0080587a6a774444696c80b83d2075c9f5d6e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/20/#25-recognition) SEC content: no ##### [310-20-25-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:f9bed3fb1a53277ca3979e43034168677704f5ed5d4a8d0b255dd8d1a61e5ceb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section addresses the recognition of certain lending fees and costs, specifically: 1. a [Loan origination fees](https://asc.understandingaccounting.org/glossary/l/#loan-origination-fees "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.") and [direct loan origination costs](https://asc.understandingaccounting.org/glossary/d/#direct-loan-origination-costs "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.") 2. b Other lending-related costs 3. c Cost determination 4. d [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.") 5. e [Credit card fees](https://asc.understandingaccounting.org/glossary/c/#credit-card-fees "The periodic uniform fees that entitle cardholders to use credit cards. The amount of such fees generally is not dependent upon the level of credit available or frequency of usage. Typically the use of credit cards facilitates the cardholder's payment for the purchase of goods and services on a periodic, as-billed basis (usually monthly), involves the extension of credit, and, if payment is not made when billed, involves imposition of interest or finance charges. Credit card fees include fees received in similar arrangements, such as charge card and cash card fees.") and costs 6. f [Loan syndication](https://asc.understandingaccounting.org/glossary/l/#loan-syndication "A transaction in which several lenders share in lending to a single borrower. Each lender loans a specific amount to the borrower and has the right to repayment from the borrower. It is common for groups of lenders to jointly fund those loans when the amount borrowed is greater than any one lender is willing to lend.") fees 7. g Purchase of a [loan](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.") or group of loans 8. h Independent third parties. #### Loan Origination Fees and Direct Loan Origination Costs ##### [310-20-25-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:25084c4d242444aaae990044062ba6629e4b373fc7d711053524d718d95f4a27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Loan origination fees shall be deferred. Likewise, direct loan origination costs shall be deferred. #### Other Lending-Related Costs ##### [310-20-25-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:17b5d6788081cd58adf8db1e0a734af58307e6601b748712b200279e9e2d2896 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All other lending-related costs, including costs related to activities performed by the lender for advertising, soliciting potential borrowers, servicing existing loans, and other ancillary activities related to establishing and monitoring credit policies, supervision, and administration, shall be charged to expense as incurred. Employees' compensation and fringe benefits related to those activities, unsuccessful loan origination efforts, and [idle time](https://asc.understandingaccounting.org/glossary/i/#idle-time "Idle time represents the time that a lender's employees are not actively involved in performing origination activities for specific loans. Idle time can be caused by many factors, including lack of work, delays in work flow, and equipment failure. Idle time can be measured through the establishment of standard costs, time studies, ratios of productive and nonproductive time, and other methods.") shall be charged to expense as incurred. Administrative costs, rent, depreciation, and all other occupancy and equipment costs are considered indirect costs and shall be charged to expense as incurred. ##### [310-20-25-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:e1608437ee7a86edc07f50b703635ed11ee8dcb2adac717fa446a32d173f4371 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs for software dedicated to loan processing and origination are not eligible for deferral as direct loan origination costs under the definition of that term. Such costs are not other costs related to those activities that would not have been incurred but for that loan as contemplated in the definition of the term. ##### [310-20-25-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:4f5cfd5deba471075bc81ce3380f93f21a7deb91162492fedad8978d0552ef28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees paid to a service bureau for loan processing are not eligible for deferral as direct loan origination costs under the definition of that term because the services were performed after the loan has already been made; the costs are not origination costs. ##### [310-20-25-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:55cfa30bbba0861d892ab82400c3c328432fa228aed642e2f2d07be67acdfb7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Bonuses based on successful production of loans that are paid to employees involved in loan origination activities are partially deferrable as direct loan origination costs under the definition of that term. Bonuses are part of an employee's total compensation. The portion of the employee's total compensation that may be deferred as direct loan origination costs is the portion that is directly related to time spent on the activities contemplated in the definition of that term and results in the origination of a loan. ##### [310-20-25-7](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:fe8704c9daa7c51f6ff552e89f19c9ff13471c1e17314aec9fa578c605ced137 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If compensation for an employee traditionally paid by salary or hourly wage is switched wholly or partially to commissions on successful loan production, such costs would be partially deferrable as direct loan origination costs under the definition of that term. As specified in the preceding paragraph, only the portion of the employee's total compensation directly related to time spent on activities contemplated in the definition of that term for completed loans would be deferred. Commission-based compensation arrangements between a lender and its employees may be similar to arrangements a lender may have with independent third parties such as loan brokers. However, when origination activities are performed by the lender's employees, the lender must allocate compensation costs applicable to the activities contemplated in the definition of direct loan acquisition costs based on the portion of time spent by employees. An allocation of the employees' total compensation between origination and other activities is made so that only those costs associated with those [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.") contemplated in the definition of that term are deferred for completed loans, even if commissions are 100 percent of such compensation and are based solely on completed loan transactions. #### Cost Determination ##### [310-20-25-8](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:da75c4be7e9037104b92277ff17ac2e257b5580a05e00bc6fa67176127e3ebdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not specify how costs are to be determined but rather what costs must be deferred. In many instances, standard costing may be used to estimate the costs to be deferred in accordance with the provisions of this Subtopic. For certain loans, the cost of origination may be similar and standard costing may be appropriate for those loans, while other loans may be of such a nature that costs must be identified separately. Lenders may use any one or a combination of methods that will provide adequate information to report financial results in accordance with this Subtopic. Development of a standard costing system will require periodic analysis of variances and, if necessary, adjustment of standard costing estimates. Possible standard cost methods that may be used to measure costs applicable to transactions that have occurred include standard costs, actual costs, job process (for example, homogeneous loans), or job order (for example, specific loans). ##### [310-20-25-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:924f47271df2cf81ba1a0cf0aaf5b564f74b53056a148fde71c8abad334afc1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The successful-efforts accounting notion utilized at an entity-wide level may result in a standard cost system that does not accurately reflect the amount of costs that may be deferred and amortized under the provisions of this Subtopic. Successful loan efforts can be determined as a percentage of each function (for example, application, verification, underwriting, appraisal, closing) and may be based on the percentage, adjusted for idle time and time spent on activities for which the related costs cannot be deferred, of successful and unsuccessful efforts determined for each function. ##### [310-20-25-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:44f9086703957e20924c71629ae9ee648f54f15f078c513b5ec63de6f53c14eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accounting for costs associated with loan originations on loans that have not yet been closed, judgment is required to estimate the number of loans in process that will result in a successful loan origination. Origination costs on a loan in process may be deferred until the loan is either closed or considered an unsuccessful effort. If a loan in process is determined to be unsuccessful after the balance sheet date but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), costs that have been deferred through the balance sheet date shall be charged to expense in the period ending with the balance sheet date. #### Commitment Fees ##### [310-20-25-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:c188977099c38c31ba93e0d5731c47098946e27f1c19561ba7315b251155d0cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as set forth in paragraph [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3), fees received for a commitment to originate or purchase a loan or group of loans shall be deferred. ##### [310-20-25-12](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:3da40cdef9ffced06bee5b21365db576f14bd34fdc3cf1c4009126cf6fbbcf5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Direct loan origination costs incurred to make a commitment to originate a loan shall be offset against any related commitment fee and the net amount recognized as set forth in paragraph [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3). ##### [310-20-25-13](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:02a2a73df03198efb22cbbed87ca5509c565973579f9d19fa97b9aec705079fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If qualifying costs associated with commitments exceed commitment fees received (or if no fee is charged), whether or not the resulting net cost may be deferred depends on the likelihood of the commitment being exercised. This Subtopic applies to both nonrefundable fees and costs, and paragraphs [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3) and [310-20-25-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-1) may require that the net of such items be deferred. However, if the likelihood that the commitment will be exercised is remote, any net costs shall be charged to expense immediately rather than deferred and amortized on a straight-line basis over the commitment period. ##### [310-20-25-14](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:1638e48b2691b15e16750d00c4d323c7bc71d4c2e7faf40a04e4ea4e357df41f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees received for providing commercial letters of credit are covered by this Subtopic. Such fees are considered commitment fees, and the accounting is specified in paragraph [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3). #### Credit Card Fees and Costs ##### [310-20-25-15](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:34ead07363426c550f7212790af1301e724f61bf37af813c96f7d93f4af46825 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Credit card fees generally cover many services to cardholders. Accordingly, fees that are periodically charged to cardholders shall be deferred. This accounting shall also apply to other similar card arrangements that involve an extension of credit by the card issuer. ##### [310-20-25-16](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:ee4a2ac3b445ba0c9c5070c0e31a82fa4c334a3ab786971a0f6980415cd941b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Only the costs of origination that qualify as direct loan origination costs under the definition of that term are eligible for deferral. All other costs shall be charged to expense as incurred. Therefore, costs eligible for deferral would likely exceed fees only when a credit card is first issued. ##### [310-20-25-17](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:303d6e835348e6586590fa7e3aeeae29d46702bb380088ab80301a1741bfa009 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Credit card origination costs shall be netted against the related credit card fee, if any. In situations where a significant fee is charged, the privilege period is the period that the fee entitles the cardholder to use the credit card. If there is no significant fee, the privilege period shall be one year. Significance for this purpose shall be evaluated based on the amount of the fee relative to the related costs. ##### [310-20-25-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:b64aaf9f0a532ee719568da70aa559e0b9d1a7a8ec0224b469ee292628fbc204 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Credit card accounts acquired individually shall be accounted for as originations under this Subtopic. Amounts paid to a third party to acquire individual credit card accounts shall be deferred and netted against the related credit card fee, if any. #### Loan Syndication Fees ##### [310-20-25-19](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:4e7b31c5293750e79481fd8f92d9987aeff054c4aa71f9160c700f169d35e6fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The entity managing a loan syndication (the syndicator) shall recognize loan syndication fees when the syndication is complete unless a portion of the syndication loan is retained. 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. ##### [310-20-25-20](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:e33e9b3a70f182b792cb6dd9dfc1cab65ba3643002e6a88f9e5885b1f0ed60bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All transactions that are structured legally as loan syndications shall be accounted for as loan syndications in accordance with the provisions of this Subtopic. ##### [310-20-25-21](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:04e05a266a3964861a3d3918cd8239798ac794a5c405569f6418b506a7ad3f2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Purchase of a Loan or Group of Loans ##### [310-20-25-22](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:05767b0ad7c6484621b2e9b127bc3555e207d8aa0b6e4ff4b9728d2986cc8d95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [310-20-30-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-5) explains that 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. The initial investment frequently differs from the related loan's principal amount at the date of purchase. All other costs incurred in connection with acquiring purchased loans or committing to purchase loans shall be charged to expense as incurred. ##### [310-20-25-23](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:c5fd6f9d1d8311144b0c07641fa21e6336d0f3be6049ed09f279329725e65fb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Designation of a fee or cost as an origination fee or cost for a loan that is purchased is inappropriate because a purchased loan has already been originated by another party. Costs incurred in connection with acquiring loans or committing to purchase loans, including a participation, shall be charged to expense in accordance with paragraph [310-20-35-15](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-15). ##### [310-20-25-24](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:9240e38ab6fa0bce6139bcf0c62ab1dc6dfc10452dd0722fd1c407e345740327 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the originating lender, net fees and costs associated with a [loan participation](https://asc.understandingaccounting.org/glossary/l/#loan-participation "A transaction in which a single lender makes a large loan to a borrower and subsequently transfers undivided interests in the loan to groups of banks or other entities.") would become a component of the net loan investment balance to be used in calculating the gain or loss on a subsequent sale as described in paragraph [310-20-35-16](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-16). #### Independent Third Parties ##### [310-20-25-25](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:af7a0bfb10855f6b0ef4ea4024bd5451e1abb2de05213351df22be7836e0ed28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity utilizes a third party for loan originations and the third party is not considered an independent third party for several reasons but also is not an employee of the entity, the entity shall defer those costs directly related to specified activities that can be determined to meet the criteria for direct loan origination costs under the definition of that term as long as those costs would not have been incurred but for that loan. ##### [310-20-25-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:10d7da744ac63e8740471e7cfa052f1ff190f4c859a664c3960975b9baafe988 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees paid to independent third parties for advisory services regarding loan origination activities, even if those same activities are performed internally, are not considered to be incurred for the specified activities set forth in the definition of the direct loan acquisition costs term and shall be charged to expense as incurred whether paid to independent third parties or performed internally. ##### [310-20-25-27](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:55.932Z to 2026-09-09T23:25:55.932Z Record version: sha256:1c971a8c1370c04cc987b0e22caec52911381b0478ca8086a698947a8e7037dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees paid to an independent third party, or incurred internally, for portfolio management or investment consultation are considered other costs incurred in connection with acquiring purchased loans or committing to purchase loans because they constitute investment advisory costs, not loan origination costs. Therefore, such costs shall be charged to expense in accordance with paragraph [310-20-35-15](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-15) whether the costs are paid to independent third parties or incurred internally. In some circumstances judgment may be necessary to determine if a third party is independent. Source downloaded (UTC): 2026-09-09T23:25:57.651Z to 2026-09-09T23:25:57.651Z Record version: sha256:709b21fa85ae88809df0614c79d8fa521539527f2d8c6406de0bee94fa72c8cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/20/#30-initial-measurement) SEC content: no ##### [310-20-30-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:57.651Z to 2026-09-09T23:25:57.651Z Record version: sha256:8865c90c78a9e34e0f946042beef70340532b5ae6b0c097c2ae944c1c3f02302 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section addresses the measurement of certain types of lending fees and costs, specifically: 1. a [Loan origination fees](https://asc.understandingaccounting.org/glossary/l/#loan-origination-fees "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.") and costs 2. b Syndication fees 3. c Purchase of a [loan](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.") or group of loans. #### Loan Origination Fees and Costs ##### [310-20-30-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:57.651Z to 2026-09-09T23:25:57.651Z Record version: sha256:92ca7fc9a2d412f544ec73eb60f61e5e77d76a7e816d08a8b2ce7f08115dab06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Loan origination fees and related [direct loan origination costs](https://asc.understandingaccounting.org/glossary/d/#direct-loan-origination-costs "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.") for a given loan shall be offset and only the net amount shall be deferred. ##### [310-20-30-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:57.651Z to 2026-09-09T23:25:57.651Z Record version: sha256:593edc5cd217ad01f97be9eeeed44685dfb0cd144a912fbea310524eb01f046d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) or loan costs that qualify for deferral in excess of loan fees (loans originated). #### Syndication Fees ##### [310-20-30-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:57.651Z to 2026-09-09T23:25:57.651Z Record version: sha256:be0ac2b4f122a1fb89657576e7f136be54489506e953f9aaff98d4844e4da613 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [310-20-25-19](https://asc.understandingaccounting.org/asc/310/20/#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 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. #### Purchase of a Loan or Group of Loans ##### [310-20-30-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:25:57.651Z to 2026-09-09T23:25:57.651Z Record version: sha256:7f4f4cd8576e544b000966f7ff002556eecc88c6c6cc713a0d58a2061a8f46cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 group, the purchaser may allocate the initial investment to the individual loans or may account for the initial investment in the aggregate. Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:809240746aa5960e76d6543a31949c703c3752c7c479ca3e382394967919e01b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/20/#35-subsequent-measurement) SEC content: no ##### [310-20-35-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:15a400201692c44b5b73114ea406ce989492431a99e86f3ecbc05b9fb704f2ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section addresses measurement issues for certain fees and costs related to various forms of lending, specifically: 1. a [Loan origination fees](https://asc.understandingaccounting.org/glossary/l/#loan-origination-fees "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.") and costs 2. b [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.") and costs 3. c [Credit card fees](https://asc.understandingaccounting.org/glossary/c/#credit-card-fees "The periodic uniform fees that entitle cardholders to use credit cards. The amount of such fees generally is not dependent upon the level of credit available or frequency of usage. Typically the use of credit cards facilitates the cardholder's payment for the purchase of goods and services on a periodic, as-billed basis (usually monthly), involves the extension of credit, and, if payment is not made when billed, involves imposition of interest or finance charges. Credit card fees include fees received in similar arrangements, such as charge card and cash card fees.") and costs 4. d [Loan](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.") refinancing or restructuring 5. e Purchase of a loan or group of loans 6. f Interest method and other amortization matters 7. g Estimating principal prepayments 8. h Lending transactions unrelated to the origination of loans 9. i [Blended-rate loans](https://asc.understandingaccounting.org/glossary/b/#blended-rate-loans "Blended-rate loans involve lending new funds at market interest rates combined with existing loans at rates currently lower than market rates. (Those funds are not advanced under a line of credit.)"). #### Loan Origination Fees and Costs ##### [310-20-35-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:4c07c1da6e20854aa3c41dab1c2d0c99b03914c1a356b2205db04c93f33951f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Loan origination fees deferred in accordance with paragraph [310-20-25-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-2) shall be recognized over the life of the loan as an adjustment of yield (interest income). Likewise, [direct loan origination costs](https://asc.understandingaccounting.org/glossary/d/#direct-loan-origination-costs "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.") deferred in accordance with that paragraph shall be recognized as a reduction in the yield of the loan. Paragraph [310-20-30-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-2) explains that loan origination fees and related direct loan origination costs for a given loan shall be offset and only the net amount shall be amortized. For loans that are refinanced or restructured, see paragraphs [310-20-35-9 through 35-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . #### Commitment Fees and Costs ##### [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:2750fc6596b9d28bbeaed84bbf0465c7749b6321eb6261f802b3cf4da9e0090a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as set forth in this paragraph, fees received for a commitment to originate or purchase a loan or group of loans shall be, if the commitment is exercised, recognized over the life of the loan as an adjustment of yield or, if the commitment expires unexercised, recognized in income upon expiration of the commitment: 1. a If the entity's experience with similar arrangements indicates that the likelihood that the commitment will be exercised is remote, the commitment fee shall be recognized over the commitment period on a straight-line basis as service fee income. If the commitment is subsequently exercised during the commitment period, the remaining unamortized commitment fee at the time of exercise shall be recognized over the life of the loan as an adjustment of yield. The term _remote_ is used here, consistent with its use in Topic 450, to mean that the likelihood is slight that a loan commitment will be exercised before its expiration. 2. b If the amount of the commitment fee is determined retrospectively as a percentage of the line of credit available but unused in a previous period, if that percentage is nominal in relation to the stated interest rate on any related borrowing, and if that borrowing will bear a market interest rate at the date the loan is made, the commitment fee shall be recognized as service fee income as of the determination date. #### Credit Card Fees and Costs ##### [310-20-35-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:3f9aaa3a5e42439e7ffc167e39ed5b13b98b52090e38297d93cc3c8dabb566a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following guidance addresses the amortization of deferred origination costs of credit cards with fees, without fees, or when the fees have been waived for a limited period of time. ##### [310-20-35-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:b89d43887b0bb1d3e333606051065ad0c734c3757c7cd8ef79df264f9d76aac3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees deferred in accordance with paragraph [310-20-25-15](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-15) shall be recognized on a straight-line basis over the period the fee entitles the cardholder to use the card. This accounting shall also apply to other similar card arrangements that involve an extension of credit by the card issuer. ##### [310-20-35-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:d81dad1c39bc091ffc918bc1623b86203c4ef369f551337a35c37619396822e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In connection with the issuance of a credit card that is not a [private label credit card](https://asc.understandingaccounting.org/glossary/p/#private-label-credit-cards "Private label credit cards are those credit cards that are issued by, or on behalf of, a merchandising entity for the purchase of goods or services that are sold at that entity's place(s) of business."), an issuer may incur certain credit card origination costs that qualify as direct loan origination costs pursuant to this Topic. Paragraph [310-20-25-16](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-16) explains that only the costs of origination that qualify as direct loan origination costs under the definition of that term are eligible for deferral. That definition explains that all other costs shall be charged to expense as incurred. That definition explains that, therefore, costs eligible for deferral would likely exceed fees only when a credit card is first issued. ##### [310-20-35-7](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:31a421424f578242ac414b3598a1cf0121d226f15d68030357eb0102ff3e7c54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The net amount of credit card origination costs netted against the related credit card fee, if any, and recognized in accordance with paragraph [310-20-25-17](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-17) shall be amortized on a straight-line basis over the privilege period. That paragraph states that significance for this purpose shall be evaluated based on the amount of the fee relative to the related costs and provides related guidance. ##### [310-20-35-8](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:213cd75c8922ef3c78f996d24e63af64e671fb8630c350ca5fad14e3a9cc572b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any net amount deferred in accordance with paragraph [310-20-25-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-18) shall be amortized on a straight-line basis over the privilege period. #### Loan Refinancing or Restructuring ##### [310-20-35-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:591685273a903bfe1b0b2922b3e16794729e9cbfdfde4527090a3d8af94c6c64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the terms of the new loan resulting from a loan refinancing or restructuring are at least as favorable to the lender as the terms for comparable loans to other customers with similar collection risks who are not refinancing or restructuring a loan with the lender, the refinanced loan shall be accounted for as a new loan. This condition would be met if the new loan's effective yield is at least equal to the effective yield for such loans and modifications of the original debt instrument are more than minor. Any unamortized net fees or costs and any prepayment penalties from the original loan shall be recognized in interest income when the new loan is granted. The effective yield comparison considers the level of nominal interest rate, commitment and origination fees, and direct loan origination costs and would also consider comparison of other factors where appropriate, such as compensating balance arrangements. ##### [310-20-35-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:b92049e7bb269e0324891a0bdfa05e8ae1a8dd26e39349f09bee146c8b6f2ec7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the refinancing or restructuring does not meet the condition set forth in paragraph [310-20-35-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) or if only minor modifications are made to the original loan contract, the unamortized net fees or costs from the original loan and any prepayment penalties shall be carried forward as a part of the net investment in the new loan. In this case, the investment in the new loan shall consist of the remaining [net investment in the original loan](https://asc.understandingaccounting.org/glossary/n/#net-investment-in-an-original-loan "The net investment in an original loan includes the unpaid loan principal, any remaining unamortized net fees or costs, any remaining unamortized purchase premium or discount, and any accrued interest receivable."), any additional funds advanced to the borrower, any fees received, and direct loan origination costs associated with the refinancing or restructuring. ##### [310-20-35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:4fe8acf6caeb498bc99a7f552e663eb83df1ed6143c87b2ca57707b84dd56ed2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A modification of a debt instrument shall be considered more than minor under paragraph [310-20-35-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-10) if the present value of the cash flows under the terms of the new debt instrument is at least 10 percent different from the present value of the remaining cash flows under the terms of the original instrument. If the difference between the present value of the cash flows under the terms of the new debt instrument and the present value of the remaining cash flows under the terms of the original debt instrument is less than 10 percent, a creditor shall evaluate whether the modification is more than minor based on the specific facts and circumstances (and other relevant considerations) surrounding the modification. The guidance in Topic 470 shall be used to calculate the present value of the cash flows for purposes of applying the 10 percent test. ##### [310-20-35-12](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:7d716ad74f5e46462cb6b1d2f049aea581324198ea6ec89e6ba315ee7d32bd2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-20-35-12A](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12A) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:446efae56be6a4a21749592cb11139542f1701ff2bcd7b6d0a877fac3228c63d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A loan refinancing or restructuring may involve substituting debt of another business entity, individual, or government entity for that of the debtor or adding another debtor (for example, as a joint debtor). Government entities include, but are not limited to, states, counties, townships, municipalities, school districts, authorities, and commissions. That kind of restructuring should be accounted for according to its substance. For example, a restructuring in which, after the restructuring, the substitute or additional debtor controls, is controlled by (as defined in paragraphs [810-10-15-8 through 15-8A](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-8)), or is under common control with the original debtor is an example of one that shall be accounted for by the creditor as a loan refinancing or restructuring as prescribed in paragraphs [310-20-35-9 through 35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . Similarly, a restructuring in which the substitute or additional debtor and original debtor are related after the restructuring by an agency, trust, or other relationship that in substance earmarks certain of the original debtor's funds or funds flows for the creditor although payments to the creditor may be made by the substitute or additional debtor should be accounted for by the creditor as a loan refinancing or restructuring as prescribed in paragraphs [310-20-35-9 through 35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . In contrast, a restructuring in which the substitute or additional debtor and the original debtor do not have any of the relationships described above after the restructuring shall be accounted for by the creditor according to the provisions of paragraphs [310-20-40-2 through 40-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-2) . ##### [310-20-35-12B](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12B) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:c1faf7171bbf3dc2c33fabd2a7225a985f6f3d1ccba86be0fd6c18824ae293b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In a partial satisfaction of a receivable (see paragraph [310-20-35-12C](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12C)), the fair value of the assets received shall be used in all cases to avoid the need to allocate the fair value of the receivable between the part satisfied and the part still outstanding. ##### [310-20-35-12C](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12C) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:b7d2c58780767731e7329fb1b6fee53eb81e83036338dcfe2808af94b884be20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A loan refinancing or restructuring may involve receipt of assets (including an equity interest in the debtor) in partial satisfaction of a receivable and a modification of terms of the remaining receivable. Even if the stated terms of the remaining receivable, for example, the stated interest rate and the maturity date or dates, are not changed in connection with the receipt of assets (including an equity interest in the debtor), the restructuring shall be accounted for as prescribed by this paragraph. A creditor shall account for a loan refinancing or restructuring involving a partial satisfaction and modification of terms as prescribed in paragraphs [310-20-35-9 through 35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) except that, first, the assets received shall be accounted for as prescribed in paragraphs [310-20-40-2 through 40-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-2) and the [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") shall be reduced by the fair value less cost to sell of the assets received. If cash is received in a partial satisfaction of a receivable, the amortized cost basis shall be reduced by the amount of cash received. ##### [310-20-35-12D](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12D) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:47f1d0177f7fce0cda24edbf7bc6270a3b8196ec15ef15c458c99dfa4bc59b9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 do not allow the lender to look-back to credit losses measured and recorded under Topic 326 for purposes of measuring the cumulative loss previously recognized in determining the gain to be recognized on the increase in fair value less cost to sell of a foreclosed property under paragraph [360-10-35-40](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-40). ##### [310-20-35-13](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:eb861874e6ae58f463bbc4339b04fb41dc37606cb69cb4db0709c0d32b513d76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The borrower and lender may enter into an agreement whereby the borrower increases his mortgage payments for a specified period, at the conclusion of which the lender forgives a portion of the remaining principal on the loan. The borrower may terminate the arrangement at any time but receives no principal reduction if he makes less than 12 consecutive increased payments. The guidance in paragraph [310-20-35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-11) shall first be used to determine whether the modification is considered more than minor under paragraph [310-20-35-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-10). If not, and assuming it is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that the borrower will continue to make the increased payments for the specified period, the expense relating to the partial forgiveness shall be accrued over the period of increased payments. ##### [310-20-35-14](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:b5fd7ce5ccf0cc276a81c5512a504680b0bf57a85be4b95648afdf0ef39f91a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because of a decline in general interest rates, a lender may reduce the interest rate on an existing loan and collect a loan fee. Because the interest rate modification does not require another loan closing, the borrower is not charged many of the standard closing costs. The effective yield on the new loan shall be compared with the effective yield of comparable loans to the lender's other new customers to determine whether the yield on the new loan is at least as favorable as the effective yield for such loans. If so, the guidance in paragraph [310-20-35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-11) shall be used to determine whether the modification is considered more than minor under paragraph [310-20-35-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-10). If not, the unamortized net fees and costs from the original loan and any prepayment penalties shall be carried forward as part of the net investment in the new loan. However, if the interest rate modification is provided for in the original loan contract, the change in the interest rate shall be accounted for in accordance with paragraph [310-20-35-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) and not considered a refinancing for purposes of paragraphs [310-20-35-9 through 35-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) . #### Purchase of a Loan or Group of Loans ##### [310-20-35-15](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:67161fda7d2593a338e69da41a1179a6bf28f9de9ca911e4c7cd605971ee1b4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [310-20-30-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-5) explains that 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. Paragraph [310-20-25-22](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-22) explains that the initial investment frequently differs from the related loan's principal amount at the date of purchase. This difference shall be recognized as an adjustment of yield over the life of the loan. ##### [310-20-35-16](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:a7b429d4ab91cd22a643ed4201b9eeddceeefa66f334c482c6fd7a8ac446326b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [310-20-30-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-30-5) explains that, 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. The cash flows provided by the underlying loan contracts shall be used to apply the interest method, except as set forth in paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26). If prepayments are not anticipated pursuant to that paragraph and prepayments occur or a portion of the purchased loans is sold, a proportionate amount of the related deferred fees and purchase premium or discount shall be recognized in income so that the [effective interest rate](https://asc.understandingaccounting.org/glossary/e/#effective-interest-rate "The rate of return implicit in the financial asset, that is, the contractual interest rate adjusted for any net deferred fees or costs, premium, or discount existing at the origination or acquisition of the financial asset. For purchased financial assets with credit deterioration, however, to decouple interest income from credit loss recognition, the premium or discount at acquisition excludes the discount embedded in the purchase price that is attributable to the acquirer's assessment of credit losses at the date of acquisition.") on the remaining portion of loans continues unchanged. #### Interest Method and Other Amortization Matters ##### [310-20-35-17](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:5f19afcc773026e366444651a8e4731d2a602e2798f980828be3dee4621d18a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Deferred net fees or costs shall not be amortized during periods in which interest income on a loan is not being recognized because of concerns about the realization of loan principal or interest. ##### [310-20-35-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:99a42064285dde189ff659ca66e09da72d831ce5de39ef88f5750a052fc689b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Net fees or costs that are required to be recognized as yield adjustments over the life of the related loan(s) shall be recognized by the interest method except as set forth in paragraphs [310-20-35-21 through 35-24](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-21) . The objective of the interest method is to arrive at periodic interest income (including recognition of fees and costs) at a constant effective yield on the net investment in the receivable (that is, the principal amount of the receivable adjusted by unamortized fees or costs and purchase premium or discount). The difference between the periodic interest income so determined and the stated interest on the outstanding principal amount of the receivable is the amount of periodic amortization. See paragraphs [835-30-35-2 through 35-5](https://asc.understandingaccounting.org/asc/835/30/#835-30-35-2) for guidance concerning the interest method. Under the provisions of this Subtopic, the interest method shall be applied as follows when the stated interest rate is not constant throughout the term of the loan: 1. a If the loan's stated interest rate increases during the term of the loan (so that interest accrued under the interest method in early periods would exceed interest at the stated rate), interest income shall not be recognized to the extent that the net investment in the loan would increase to an amount greater than the amount at which the borrower could settle the obligation. Prepayment penalties shall be considered in determining the amount at which the borrower could settle the obligation only to the extent that such penalties are imposed throughout the loan term. (See Section 310-20-55.) Accordingly, a limit is imposed on the amount of periodic amortization that can be recognized. However, that limitation does not apply to the capitalization of costs incurred (such as direct loan origination costs and purchase premiums) that cause the investment in the loan to be in excess of the amount at which the borrower could settle the obligation. The capitalization of costs incurred is different from increasing the net investment in a loan through accrual of interest income that is only contingently receivable. 2. b If the loan's stated interest rate decreases during the term of the loan, the stated periodic interest received early in the term of the loan would exceed the periodic interest income that is calculated under the interest method. In that circumstance, the excess shall be deferred and recognized in those future periods when the constant effective yield under the interest method exceeds the stated interest rate. (See Section 310-20-55.) 3. c If the loan's stated interest rate varies based on future changes in an independent factor, such as an index or rate (for example, the prime rate, the London Interbank Offered Rate \[LIBOR\], or the U.S. Treasury bill weekly average rate), the calculation of the constant effective yield necessary to recognize fees and costs shall be based either on the factor (the index or rate) that is in effect at the inception of the loan or on the factor as it changes over the life of the loan. (See Section 310-20-55.) A variable rate loan whose initial rate differs from the rate its base factor would produce is also subject to the provisions of (a) and (b). ##### [310-20-35-19](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:e1d96f5f777cb071ec460489d9f2333793a1d67525e732687c5325501fb8deaf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The preceding paragraph provides that when a loan's stated interest rate varies based on future changes in an independent factor, the lender shall calculate a constant effective yield by using the independent factor in effect at the inception of the loan or the factor as it changes over the life of the loan. In applying the guidance in (c) in the preceding paragraph, the lender may not change from one alternative to the other during the life of the loan. The lender must select one of the two alternatives and apply the method consistently throughout the life of the loan. ##### [310-20-35-20](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:8d48691d63dc55604ece7ee4f2e48e5d27547b1991a2ac770b9ce4dff8a90d76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In a period in which the independent factor on a variable rate loan changes, the constant effective yield is recalculated not from the inception of the loan but from the time of the change. See Example 9 (paragraph [310-20-55-43](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-43)) for an illustration. ##### [310-20-35-21](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:9f396aef1ea73e94c9efa154fa73ae984533fa470215ebeae5060b4a56c32dba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain loan agreements provide no scheduled payment terms (demand loans); others provide the borrower with the option to make multiple borrowings up to a specified maximum amount, to repay portions of previous borrowings, and then reborrow under the same contract (revolving lines of credit). ##### [310-20-35-22](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:3776001c0f2905a0dd3c462e7a60c39ce2f8bc7ddb5d5f60f7964c1eee533a71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a loan that is payable at the lender's demand, any net fees or costs may be recognized as an adjustment of yield on a straight-line basis over a period that is consistent with any of the following: 1. a The understanding between the borrower and lender 2. b If no understanding exists, the lender's estimate of the period of time over which the loan will remain outstanding; any unamortized amount shall be recognized when the loan is paid in full. Such estimates should be monitored regularly and revised as appropriate. If, contrary to expectation, a loan remains outstanding beyond the anticipated payment date, no adjustment is required. ##### [310-20-35-23](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:dca9db4b8b704ca38a99241eec814b3368945fbbb0fd93ec72909e8472e649d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For revolving lines of credit (or similar loan arrangements), the net fees or costs shall be recognized in income on a straight-line basis over the period the revolving line of credit is active, assuming that borrowings are outstanding for the maximum term provided in the loan contract. If the borrower pays all borrowings and cannot reborrow under the contract, any unamortized net fees or costs shall be recognized in income upon payment. The interest method shall be applied to recognize net unamortized fees or costs when the loan agreement provides a schedule for payment and no additional borrowings are provided for under the agreement. ##### [310-20-35-24](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:1861135aafa478cc71e2afda2e97e819349f6f1af8ae2faabe84d9643ad980dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if the loan agreement provides the borrower with the option to convert a one-year revolving line of credit to a five-year term loan, during the term of the revolving line of credit the lender would recognize the net fees or costs as income on a straight-line basis using the combined life of the revolving line of credit and term loan. If the borrower elects to convert the line of credit to a term loan, the lender would recognize the unamortized net fees or costs as an adjustment of yield using the interest method. If the revolving line of credit expires and borrowings are extinguished, the unamortized net fees or costs would be recognized in income upon payment. ##### [310-20-35-25](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:5fe56ae0432e7c6983010c0378b7a5dc3ab6752b4685a2f31b8b632019bbcd96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the borrower continues to have a contractual right to borrow under the revolving line of credit, net fees and costs associated with revolving lines of credit shall be amortized over the term of the revolver even if the revolver is unused for a period of time. #### Estimating Principal Prepayments ##### [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:abe17e0ceb4a2bb8db41cdb08bd474a1e5c16f53dcf30a999d5298713cebf096 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as stated in the following sentence, the calculation of the constant effective yield necessary to apply the interest method shall use the payment terms required by the loan contract, and prepayments of principal shall not be anticipated to shorten the loan term. If the entity holds a large number of similar loans for which prepayments are probable and the timing and amount of prepayments can be reasonably estimated, the entity may consider estimates of future principal prepayments in the calculation of the constant effective yield necessary to apply the interest method. If the entity anticipates prepayments in applying the interest method and a difference arises between the prepayments anticipated and actual prepayments received, the entity shall recalculate the effective yield to reflect actual payments to date and anticipated future payments. The net investment in the loans shall be adjusted to the amount that would have existed had the new effective yield been applied since the acquisition of the loans. The investment in the loans shall be adjusted to the new balance with a corresponding charge or credit to interest income. ##### [310-20-35-27](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:c45dfaecd51f71e42603b142aa56a088209fb4ac66c1bb5e19207ba631dddc11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Loans grouped together shall have sufficiently similar characteristics that prepayment experience of the loans can be expected to be similar in a variety of interest rate environments. Loans that are grouped together for purposes of applying the preceding paragraph shall have sufficiently similar levels of net fees or costs so that, in the event that an individual loan is sold, recalculation of that loan's carrying amount will be practicable. ##### [310-20-35-28](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:fc427f0b52f9ba16df0c7e69117326b37c4b9319e2b0fb7cbc3fa2b14e420d75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For loans that do qualify under paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26), a lender may use either method for different loans and select the most appropriate method for a group of loans based on the characteristics of those loans. (For example, homogeneous mortgage loans might be aggregated while construction loans are accounted for separately.) However, once a lender has selected the appropriate method of accounting for a loan or a group of loans, a lender must continue to use the method throughout the life of the loan or group of loans. ##### [310-20-35-29](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:fce22e2becb327bad84e337970eeb8e3e7e327392e68ce8f7c93687a28a8e906 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If loan-by-loan accounting is used, net fees and costs shall be amortized over the contract life and adjusted based on actual prepayments. ##### [310-20-35-30](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:0fcbc59cbb238f070eb1a1387040b1b948332bf88c47857801654d8b875d5d27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. There are a number of characteristics to be considered in determining whether the lender holds a large number of similar loans for purposes of estimating prepayments in accordance with paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26). The objective is to evaluate all characteristics that would affect the ability of the lender to estimate the behavior of a group of loans. The following are examples of some characteristics that shall be considered when aggregating loans: 1. a Loan type 2. b Loan size 3. c Nature and location of collateral 4. d Coupon interest rate 5. e Maturity 6. f Period of origination 7. g Prepayment history of the loans (if seasoned) 8. h Level of net fees or costs 9. i Prepayment penalties 10. j Interest rate type (fixed or variable) 11. k Expected prepayment performance in varying interest rate scenarios. ##### [310-20-35-31](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:ea941dcd8fd2e5d2116350359502e652fc48acf2598373b1e82e7dca85e10699 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a lender meets the requirements of paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26) for considering principal prepayments in calculating constant effective yield, several factors shall be considered in estimating those principal prepayments. The lender shall consider historical prepayment data in making its estimate of future prepayments. Also, the lender shall consider external information, including existing and forecasted interest rates and economic conditions and published mortality and prepayment tables for similar loans. If periodic changes in estimates occur or actual prepayments are different from estimated prepayments, an adjustment will be necessary. ##### [310-20-35-32](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:48cbaa48b633cd9efffe6fd2c2276f5dc41ff054f287c65b3e0e326b7e263fe4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a lender aggregates loans for purposes of estimating prepayments and subsequently sells some of the loans, generally, the loans that are aggregated have lost their individual distinction. A pro rata calculation of net fees and costs based on the ratio of the outstanding principal balances of the loans sold would be appropriate in the gain or loss calculation. If the lender has sufficiently detailed accounting records for the aggregated loans, specific identification may be used in the gain or loss calculation. ##### [310-20-35-33](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:926f4544a2faf535437b447dee6dabc399f752635087c958d8874eff8eaba23d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each reporting period, to the extent that the amortized cost basis of an individual callable [debt security](https://asc.understandingaccounting.org/glossary/d/#debt-security "Any security representing a creditor relationship with an entity. The term debt security also includes all of the following: Preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor A collateralized mortgage obligation (or other instrument) that is issued in equity form but is required to be accounted for as a nonequity instrument regardless of how that instrument is classified (that is, whether equity or debt) in the issuer's statement of financial position U.S. Treasury securities U.S. government agency securities Municipal securities Corporate bonds Convertible debt Commercial paper All securitized debt instruments, such as collateralized mortgage obligations and real estate mortgage investment conduits Interest-only and principal-only strips. The term debt security excludes all of the following: Option contracts Financial futures contracts Forward contracts Lease contracts Receivables that do not meet the definition of security and, so, are not debt securities, for example: Trade accounts receivable arising from sales on credit by industrial or commercial entities Loans receivable arising from consumer, commercial, and real estate lending activities of financial institutions.") exceeds the amount repayable by the issuer at the next call date, the excess (that is, the premium) shall be amortized to the next call date, unless the guidance in paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26) is applied to consider estimated prepayments. For purposes of this guidance, the next call date is the first date when a call option at a specified price becomes exercisable. Once that date has passed, the next call date is when the next call option at a specified price becomes exercisable, if applicable. If there is no remaining premium or if there are no further call dates, the entity shall reset the effective yield using the payment terms of the debt security. Securities within the scope of this paragraph are those that have explicit, noncontingent call options that are callable at fixed prices and on preset dates at prices less than the amortized cost basis of the security. Whether a security is subject to this paragraph may change depending on the amortized cost basis of the security and the terms of the next call option. #### Lending Transactions Unrelated to the Origination of Loans ##### [310-20-35-34](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:d63af1aeca40bf66af4aabd1e36757567033fa36be89138fdaff01a9d29ed82e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A lender may receive fees for lending transactions unrelated to the origination of loans. For example, a borrower may pay a fee to the lender for extending the contractual maturity of an existing loan, for converting an adjustable-rate mortgage to a fixed-rate loan, or for the assumption of an existing loan by a new borrower. The fees shall be recognized over the remaining life of the loan as an adjustment of yield. In each situation, the lender has made some form of concession to the initial or underlying borrower by altering the original terms of the initial underwriting; thus, any fees received shall be recognized as an adjustment of yield over the remaining life of the loan. #### Blended-Rate Loans ##### [310-20-35-35](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:00.817Z to 2026-09-09T23:26:00.817Z Record version: sha256:9de0c65a959b64f11b955da7326f8a2f57dd6af8b07dd085316b0dd8a50e54a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A blended-rate loan yields an interest rate between the existing loan rate and the market rate. The resulting loan is subject to the same underwriting standards as all other new loans. This arrangement is considered a refinancing but it does not meet the yield criteria prescribed in paragraph [310-20-35-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9). Thus, the unamortized net fees and costs on the existing loan as well as the net fees and costs relating to the refinancing shall carry over to the new loan because the blended rate is below the market rate of loans with similar collection risks made to the lender's other customers. Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:efd5110e844754f68a8c4374b1077db8d41fcbf36e6dff96c41632eeccfa099f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/20/#40-derecognition) SEC content: no #### Commitment Fees ##### [310-20-40-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:70e77048b5bd1e5a431c5a126ec9546f92ce4a8fd96f676078b0599d5db6ac88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Except as set forth in paragraph [310-20-35-3(a) through (b)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3), fees received for a commitment to originate or purchase a [loan](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.") or group of loans shall be, if the commitment expires unexercised, recognized in income upon expiration of the commitment. #### Receipt of Assets in Full Satisfaction of a Receivable ##### [310-20-40-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:51c991165b97e568569c4dddeb87564c2e0665f7af9f05a9c4ed3303cb29a399 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/t/#time-of-restructuring "Troubled debt restructurings may occur before, at, or after the stated maturity of debt, and time may elapse between the agreement, court order, and so forth, and the transfer of assets or equity interest, the effective date of new terms, or the occurrence of another event that constitutes consummation of the restructuring. The date of consummation is 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. ##### [310-20-40-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:8f54e9cc03a4c36c36f160ebd2d704dcd04b860788b5ad342d097dca4eea7d10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-43). The excess of the [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") 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](https://asc.understandingaccounting.org/asc/310/40/#310-40-25-1) ; [310-40-35-7](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-7); [310-40-40-2 through 40-8](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-2) ; and [310-40-50-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-1) instead of [carrying amount](https://asc.understandingaccounting.org/glossary/c/#carrying-amount "For a receivable, the face amount increased or decreased by applicable accrued interest and applicable unamortized premium, discount, finance charges, or issue costs and also an allowance for uncollectible amounts and other valuation accounts.For a payable, the face amount increased or decreased by applicable accrued interest and applicable unamortized premium, discount, finance charges, or issue costs") 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. ##### [310-20-40-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:64d9501b996c588c2bf5c6f9f4eebe252570bc713109bd311ba9c1b3272444e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [310-20-40-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:3b8b07b3cc215c94e8cfb3a763322216b1e6fd13a1826b425a54bbb9dc00851d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A creditor shall account for assets received in satisfaction of a receivable the same as if the assets had been acquired for cash. #### Foreclosure ##### [310-20-40-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:adf6c1da9a8491db15eba9522d5fa372391ddd64375521e837395af55e57137d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-12C), [310-20-40-2 through 40-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-2) , and, if appropriate, [310-20-40-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-9). See paragraphs [310-20-40-7 through 40-8](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-7) 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](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18F). #### Classification and Measurement of Certain Government-Guaranteed Mortgage Loans upon Foreclosure ##### [310-20-40-7](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:7a6e785b401e8411e5266e7e46f817316c6601c260843d5e6d8787f4ee3254b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/310/20/#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. ##### [310-20-40-8](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:36acc163c2a7609e987b12db76677b37de3a71d634f113df3e0df9a293bb4b1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Sale of Assets from a Loan Refinancing or Restructuring ##### [310-20-40-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:ed44aca4648692d7d20f54aac3c7e25680223721a8bdbd533cccc3c8c5b3d3df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) , 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. #### Cost Basis of Debt Security Received in a Restructuring ##### [310-20-40-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:7ff8a36b4a5859876c053bf55f9e6ecc9bd5791f550ea617bdbd15d51d3aad0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [310-20-40-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:208b40e0d211acb61187a2989789a1a201e871043e58e8dd9e18c601e7e63e6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Cost Basis of a Long-Lived Asset Received in Full Satisfaction of a Receivable ##### [310-20-40-12](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:02.921Z to 2026-09-09T23:26:02.921Z Record version: sha256:7d880bc0769a6c6d497a511ddd4ac831c3d83a0199db3f7b6f9dd6219a31c339 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-09T23:26:04.605Z to 2026-09-09T23:26:04.605Z Record version: sha256:6bfbbd7f2e5249a17d7a05aec379369bd2083897109c5a1307d72927c151f5eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/20/#45-other-presentation-matters) SEC content: no #### Balance Sheet Classification ##### [310-20-45-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:04.605Z to 2026-09-09T23:26:04.605Z Record version: sha256:9291ece1e8fbb479a41b39596298512d8877f6a5150b042e3e404137f5eb256e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The unamortized balance of [loan](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.") origination, commitment, and other fees and costs and purchase premiums and discounts that is being recognized as an adjustment of yield pursuant to this Subtopic shall be reported on the entity's balance sheet as part of the loan balance to which it relates. ##### [310-20-45-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:04.605Z to 2026-09-09T23:26:04.605Z Record version: sha256:09cf02d8f241578bcd8eb44c16325a1d5187cbbf80cb056b96ea74b888c05286 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") that meet the criteria of paragraph [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3) shall be classified as deferred income in the financial statements. #### Income Statement Classification ##### [310-20-45-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:04.605Z to 2026-09-09T23:26:04.605Z Record version: sha256:c37397e5202872faf2308e0d5554d2e55416f78afe7fc091766afa2b7b9cd649 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts of loan origination, commitment, and other fees and costs recognized as an adjustment of yield shall be reported as part of interest income. Amortization of other fees, such as commitment fees that are being amortized on a straight-line basis over the commitment period or included in income when the commitment expires, shall be reported as service fee income. Source downloaded (UTC): 2026-09-09T23:26:07.819Z to 2026-09-09T23:26:07.819Z Record version: sha256:cceb2dba0c57799db9203afb589ad46c001bcb76120bba77b8cbe07d6fe89433 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/20/#50-disclosure) SEC content: no #### Net Fees and Costs ##### [310-20-50-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:07.819Z to 2026-09-09T23:26:07.819Z Record version: sha256:46d6dde25c73583cf4602a3eac067314a56691cd532a7e7d37330e19c351ef82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This paragraph requires that the summary of significant accounting policies shall include the method for recognizing interest income on [loan](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 trade receivables, including a statement about the entity's policy for treatment of related fees and costs, including the method of amortizing net deferred fees or costs. ##### [310-20-50-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:07.819Z to 2026-09-09T23:26:07.819Z Record version: sha256:ef5deb8a6e0dde69f3d24b497644bf6775cc5be3a1d008e06ee1923483ec2814 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entities that anticipate prepayments in applying the interest method shall disclose that policy and the significant assumptions underlying the prepayment estimates. ##### [310-20-50-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:07.819Z to 2026-09-09T23:26:07.819Z Record version: sha256:d9c58b6157fd1dbe143faac0dad1034972126f9c6e53f20cc1d9b71dac860711 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The unamortized net fees and costs shall be reported as a part of each loan category. Additional disclosures such as unamortized net fees and costs may be included in the notes to financial statements if the lender believes that such information is useful to the users of financial statements. ##### [310-20-50-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:07.819Z to 2026-09-09T23:26:07.819Z Record version: sha256:8879f5afd99e16e876c32016dc5a684ea1f0c287e1c9846b5466acc878259f55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. With respect to [credit card fees](https://asc.understandingaccounting.org/glossary/c/#credit-card-fees "The periodic uniform fees that entitle cardholders to use credit cards. The amount of such fees generally is not dependent upon the level of credit available or frequency of usage. Typically the use of credit cards facilitates the cardholder's payment for the purchase of goods and services on a periodic, as-billed basis (usually monthly), involves the extension of credit, and, if payment is not made when billed, involves imposition of interest or finance charges. Credit card fees include fees received in similar arrangements, such as charge card and cash card fees.") and costs for both purchased and originated credit cards that are not [private label credit cards](https://asc.understandingaccounting.org/glossary/p/#private-label-credit-cards "Private label credit cards are those credit cards that are issued by, or on behalf of, a merchandising entity for the purchase of goods or services that are sold at that entity's place(s) of business."), an entity shall disclose its accounting policy, the net amount capitalized at the balance sheet date, and the amortization period(s). Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:912f11e26011e8c45338a6b9787d1cf503320b028c2fc70ae3f7a95693777d59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [310-20-55-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:fc893dcb871d6f60660f9517bd549762f76494b6bed107740c78702cd5952958 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance concerning certain fees and costs related to various forms of lending. ##### [310-20-55-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:5448a18920c83f8566b0f1baf03d509bad2dae26f2cf2042da4a19ae1d6895dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In automotive lending, it is common practice for a lending institution to pay a fee to an auto dealer for introducing a customer that requires financing for a completed auto sale. Generally, the lender pays the dealer up front an amount equal to the present value of the interest rate differential between the lender's standard [loan](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.") rate and the rate charged to the auto dealer's customer with the expectation of recovering this amount from the borrower over time. Although this origination cost is recoverable from the borrower, it is not excluded from the scope of this Topic. This Topic does not apply to costs that are incurred by a lender in transactions with independent third parties if the lender bills those costs directly to the borrower. In this case, however, the payments to the auto dealer are not billed directly to the borrower. Instead, they are recovered from the borrower through the interest rate charged to the borrower, as are the lender's other costs. (See the definition of the term for what constitutes [incremental direct costs](https://asc.understandingaccounting.org/glossary/i/#incremental-direct-costs "Costs to originate a loan that have both of the following characteristics: Result directly from and are essential to the lending transaction Would not have been incurred by the lender had that lending transaction not occurred.").) ##### [310-20-55-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:1fc091d25f53d40ac9399e048f488e9abe2955dd755bd322ee85f5f862b932c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that the amount of a commitment fee for a line of credit or credit facility is determined retrospectively as a percentage of the line of credit or commitment available but unused in a previous period. Also assume that the fee is paid periodically during the life of the facility or commitment, but the costs are incurred when the lender establishes the facility or commitment. How a lender should account for those costs depends on several factors. Costs that meet the criteria for [direct loan origination costs](https://asc.understandingaccounting.org/glossary/d/#direct-loan-origination-costs "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.") under the definition of that term shall be deferred and amortized based on the terms of the line of credit or commitment facility. If the commitment agreement is a revolving line of credit, the qualifying costs shall be recognized in income on a straight-line basis over the period that the revolving line of credit is active. If the loan agreement provides the borrower with the option to convert the revolving line of credit to a term loan, the lender shall recognize the costs on a straight-line basis over the combined life of the revolving line of credit and term loan. If the line of credit or commitment facility is not a revolving line of credit, the costs shall be deferred and amortized on a straight-line basis over the commitment period unless the likelihood that the commitment will be exercised is remote, in which case any net costs shall be charged to expense immediately. ##### [310-20-55-4](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:2f0ff8826cf6c7fead6f9aa1798765081a5fcca0c1af7a6952e8d3a196e978c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some lenders offer loan commitments known as multioption facilities. Those facilities contain several credit structures that borrowers may use in any combination. The lenders may receive a variety of fees in connection with that type of facility. Some fees may be yield related (for example, fees for providing back-up facilities or revolvers), while others may be labeled as compensation for services rendered (for example, management fees or note placement fees). Generally all fees, in accordance with paragraph [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3) should be deferred. For amortization purposes, fees received for a multioption facility shall be allocated to each product in the facility because the amortization of certain fees must be reported as service fee income while the amortization of other fees must be reported as interest income. If a portion of the fee is for a line of credit product, the fee allocated shall be recognized in income on a straight-line basis over the period the revolving line of credit is active. If the likelihood that a commitment provided under a multioption facility will be exercised is remote, paragraph [310-20-35-3(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3) requires that the fee be recognized over the commitment period on a straight-line basis as service fee income. ##### [310-20-55-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:ccd890ae9312a8c14213c6d310c02abbc0e1adfd626b745fd1a71fc448df80da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In a typical credit card solicitation effort, an issuer engages an independent third party to solicit and obtain new customers. For a fee, the solicitor prepares and mails the promotional offer to a group of preselected consumers (for example, 1 million consumers). The expected response rate for new cardholders is generally 1 to 2 percent. Although only a small percentage of the total solicitation effort is expected to be successful, the portion of the solicitation performed by an independent third party that is allocable to successful efforts should not be deferred as direct loan origination costs under the definition of that term. Incremental direct costs to originate a loan are costs that the lender would not have incurred if that lending transaction had not occurred. In this example, the lender would have incurred all of the solicitation costs regardless of the number of credit cards issued. Accordingly, all costs in this example should be charged to expense. ##### [310-20-55-6](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:1a06b757a5e3d003d6f604558431877de5cc635b52d3fc6d42ed54c879b6601c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Loans may be offered for some initial period at an interest rate below the current market rate with the interest rate scheduled to adjust to a market rate after the initial discount period. Amortization of net loan fees and costs is based on the interest method over the life of the loan and limited by the provisions of paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) and [310-20-35-18(c)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) during the discount period. Thereafter, the provisions of paragraph [310-20-35-18(c)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) are applicable. See Examples 5 and 6 (paragraphs [310-20-55-33 through 55-37](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-33) ) for illustrations. ##### [310-20-55-7](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:32f0ac46f780d263dbb18897d4a08f4c71aa8aef579a3e530f01bfd4d051d008 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that an institution originates adjustable rate mortgages that have a below-market interest rate in the first year that subsequently will be adjusted to a market rate in the second year. Also assume that the adjustable rate mortgages are sold to an independent third party at a discount reflecting the below-market interest rate in Year 1. Paragraph [310-20-35-15](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-15) provides that the initial investment frequently differs from the related loan's principal amount at the date of purchase. This difference shall be recognized as an adjustment of yield over the life of the loan. The buyer should recognize the discount as an adjustment of yield over the life of the loan in accordance with paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) and [310-20-35-18(c)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18). The purchase discount should be amortized to create a constant effective yield; thus, the majority of the discount would be recognized as interest income in the first year. ##### [310-20-55-8](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:f6ac825a4b1dc2922b7304e75663871197dcea1f36846a934c3759f698f79b18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following amortization methods shall be applied to the associated types of loan arrangements: 1. a Negative amortization loans: interest method 2. b Biweekly mortgages: interest method 3. c Line of credit loans or arrangements with similar characteristics: straight-line method 4. d Overdraft protection loans: straight-line method 5. e Home equity loans: generally the interest method, but the straight-line method may be used if the arrangement has the characteristics of a revolving line of credit 6. f Acquisition, development, and construction arrangements accounted for as loans before completion of funding, as follows: 1. 1 Single project: interest method (For loan contracts in which the timing and amount of payments are not specified, estimates must be made to apply the interest method.) 2. 2 Multiple projects with partial drawdowns and payments: generally the interest method, but the straight-line method may be used if the arrangement has the characteristics of a revolving line of credit. ##### [310-20-55-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:c6e3c9a840326be11712c4047a368ee5249031230a4fc4971c84a52f91bd409a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Independent third parties generally possess the following characteristics: 1. a They are not employees of the lender. 2. b They are not receiving employee benefits of the lender. 3. c The party is not under the [control](https://asc.understandingaccounting.org/glossary/c/#control "The possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity through ownership, by contract, or otherwise.") of the lender. 4. d Generally, the party also would provide similar services to other entities unrelated to the lender and there would not be an agreement between the lender and the party that precludes the party from providing similar services to other entities. ##### [310-20-55-10](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:8da7274d9f1c5d8bc4c6871f4ba235445c74fd11b07061130a4c89fbab95c8e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining if an entity that provided loan origination-related services on behalf of the lender could be considered an independent third party if the lender has an ownership or equity interest in the entity, such ownership interest shall be evaluated based on the level of ownership and influence that could be imposed. Generally, the existence of an ownership interest indicates a relationship that would not qualify as an independent third party. A nominal passive investment from the standpoint of both the lender and the provider of service probably would not affect the provider's independence. ##### [310-20-55-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:b0aecb8348472c560bee48558e62b6a7e9610980eec010c62882f6f0aac7f864 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of other direct loan origination costs that may be deferred as such under the definition of that term for loans that are granted include all of the following: 1. a Reimbursement of costs for air travel, hotel accommodations, automobile mileage, and similar costs incurred by personnel relating to the specified activities 2. b Costs of itemized long-distance telephone calls related to loan underwriting 3. c Reimbursement for mileage and tolls to personnel involved in on-site reviews of collateral before the loan is granted. ##### [310-20-55-12](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:e25119f8afe6ea63e9872621e19578ac1c140e37a8cd1e96cec20d5ad3355b94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payroll-related fringe benefits include any costs incurred for employees as part of the total compensation and benefits program. Examples of such benefits include all of the following: 1. a Payroll taxes 2. b Dental and medical insurance 3. c Group life insurance 4. d Retirement plans 5. e 401(k) plans 6. f Stock compensation plans, such as stock options and stock appreciation rights 7. g Overtime meal allowances. ##### [310-20-55-13](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:0c8f5517feb4bfd9bdde39b9920f749220500cb5af254c21ca2af4777ad81f5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of total compensation of executive employees that relates directly to the time spent approving successful loans prior to funding may be deferred as direct loan origination costs under the definition of that term. For example, the amount of compensation allocable to time spent by members of a loan approval committee is a component of direct loan origination costs. ##### [310-20-55-14](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:50cef69e765e69bf1e8863e1b7ca0becbad8b4ded4cd66b0fff8846531a41761 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [310-20-25-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-25-3) specifies that equipment costs (for example, a lender's data processing equipment dedicated to originating loans), depreciation, and maintenance must be charged to expense as incurred. Those costs do not meet the criteria for deferral as direct loan origination costs under the definition of that term as they would have been incurred whether or not a loan was originated. ##### [310-20-55-15](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:1c553d27df2d9153c81c1d66a26134afd6f64aba68bbab8a952a53cc4d0733b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of specified activities contemplated as direct loan origination costs under the definition of that term: 1. a Loan counseling, such as discussing alternative borrowing arrangements with borrowers, and negotiating terms 2. b Application processing 3. c Appraisal 4. d Initial credit analysis 5. e Initial credit investigation 6. f Quality control review performed during the underwriting period 7. g Direct approval processing 8. h Loan evaluation and approval committees (all activities involved in origination decisions) 9. i Loan closing. ##### [310-20-55-16](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:947d00e3f79c76d45f28d360b061ce7794395f502a439140b342242a34cdd098 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a lender has fees and costs on a construction loan (assuming the arrangement does not have the characteristics of a revolving line of credit) when the lender also has made a commitment for the permanent financing that the lender believes has more than a remote probability of being exercised, the fees and costs should be accounted for in the following manner. For loan contracts in which the timing and amount of payments are not specified, estimates must be made by the lender to apply the interest method. The net amount of fees received and costs that qualify as direct loan origination costs under the definition of that term should be deferred and recognized as an adjustment of yield over the combined life of the construction and permanent loans. If the commitment to provide permanent financing expires unused, any unamortized fees and costs should be recognized as income at that time. ##### [310-20-55-17](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:cddea100b768627d63400bc70e3ffadab71b8e5c1a6c6bca424eb7f05cbff928 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that a lender grants a loan that matures in 90 days and collects a nonrefundable fee that approximates market. Assume also that any future extension of credit would be evaluated at maturity of the original loan and would include an extension fee at that time. Based on experience, the lender anticipates that the credit will be extended an additional 90 days, however; the lender is not committed to provide an extension. The fee, net of qualifying origination costs, should be deferred and amortized over the original 90-day loan contract. ##### [310-20-55-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:55b78da98bc64f3ba32d06fb60896750478590377135804557a50a9d2c2278ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a lender originates a 10-year loan with a callable feature after 3 years, the fees should be amortized over the 10-year contract life. ##### [310-20-55-18A](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18A) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:71c8e43c3d01842d9e22a8b9145c81cc27ba3cde728641a955e34776af74b652 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This implementation guidance addresses the following circumstance: In connection with a loan refinancing or restructuring, a debtor, with the creditor's approval, sells the collateral, which has a fair value less than the creditor's net investment in the related loan, and invests the proceeds in a series of zero coupon bonds that are received and held by the creditor as collateral for the newly restructured loan. The bonds will mature at a value equal to each year's debt service requirement under the newly restructured terms. Specifically, the issue is whether the sale of collateral, the purchase of the zero coupon bonds, and their receipt by the creditor as collateral require the creditor to recognize a loss equal to the amount by which the net investment in the loan exceeds the fair value of the zero coupon bonds. ##### [310-20-55-18B](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18B) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:dc870ce94e434168e15a7e89cbcc216bb72b74cfcefe76e9293c3664cf4dacae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The excess of the [amortized cost basis](https://asc.understandingaccounting.org/glossary/a/#amortized-cost-basis "The amortized cost basis is the amount at which a financing receivable or investment is originated or acquired, adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments.") satisfied over the fair value less cost to sell (as that term is used in paragraph [360-10-35-43](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-43)) of assets received is a loss to be recognized. ##### [310-20-55-18C](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18C) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:e8002c1631487333313003ed29abb45114ea59e9c2fae5fd6dc686467fedd564 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Such losses, to the extent they are not offset against allowances for uncollectible accounts or other valuation accounts, shall be included in measuring net income for the period. ##### [310-20-55-18D](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18D) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:c1f4ffdc97f6840e3aa4bba0efc212055845e179483957f8316b8ddf616784f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, if the creditor has the right to sell or pledge the collateral: 1. a Paragraph [860-30-45-1](https://asc.understandingaccounting.org/asc/860/30/#860-30-45-1) requires that the debtor reclassify the collateral and report it in its statement of financial position separately from other assets not so encumbered. 2. b Paragraph [860-30-50-1A](https://asc.understandingaccounting.org/asc/860/30/#860-30-50-1A) requires, in part, that the creditor disclose the fair value of that collateral and of the portion that it has sold or repledged. ##### [310-20-55-18E](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18E) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:d1fb0c4141d25728adb04466eead3087774d50a5ccc9bb22e2a2722118c5b1f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the creditor does not have the right to sell or pledge the collateral, paragraph [860-30-50-1A](https://asc.understandingaccounting.org/asc/860/30/#860-30-50-1A) requires that the debtor disclose information about that collateral. ##### [310-20-55-18F](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-18F) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:1f598ec50a2b5cf69b804270557426378acac8da9db1c674edf8efc7859425d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A creditor is considered to have received physical possession (resulting from an in substance repossession or foreclosure) of residential real estate property collateralizing a consumer mortgage loan only upon the occurrence of either of the following: 1. a The creditor obtains legal title to the residential real estate property upon completion of a foreclosure. A creditor may obtain legal title to the residential real estate property even if the borrower has redemption rights that provide the borrower with a legal right for a period of time after a foreclosure to reclaim the real estate property by paying certain amounts specified by law. 2. b The borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The deed in lieu of foreclosure or similar legal agreement is completed when agreed-upon terms and conditions have been satisfied by both the borrower and the creditor. #### Illustrations ##### [310-20-55-19](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:1dffbba0a5f24cab2d775c29ac2720bce27ad553816e8f1e84abff3105f5a53d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Examples and estimates are illustrative only and are not intended to modify or limit in any way the provisions of this Subtopic. All Examples assume that principal and interest payments are made on the last day of the year. ##### [310-20-55-20](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:d1091884e2b313e8684eec99ac08bbd14ad281b6f303581e9b0ff4b742a89aed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [310-20-35-17 through 35-24](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-17) , displaying amortization under the interest method using the contractual payment terms and assuming no prepayments. This Example has the following assumptions. ##### [310-20-55-21](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:d3e469561669f62c39957c750c0c9f70c4d750fe2ad457d05a1b80403e8f2356 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 19X7, Entity A originates a 10-year $100,000 loan with a 10 percent stated interest rate. The contract specifies equal annual payments of $16,275 through December 31, 19Y6. The contract also specifies that no penalty will be charged for prepayments of the loan. Entity A charges a 3 percent ($3,000) nonrefundable fee to the borrower and incurs $1,000 in direct loan origination costs (attorney fees, appraisal, title insurance, wages and payroll-related fringe benefits of employees performing origination activities, outside broker's fee). The carrying amount of the loan is computed as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-56904730-3B9C-40A4-A241-1896F5787F4B-low.gif) Loan principal " $100,000 " Origination fees " (3,000)" Direct loan origination costs " 1,000 " Carrying amount of loan " $98,000 " ##### [310-20-55-22](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:6541eb62ac5618e401b1ebd6b2c8057389cdc2539f24ee0867a5e069d99a9d25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity A accounts for this loan using contractual payments to apply the interest method of amortization. In calculating the effective rate to apply the interest method, the discount rate necessary to equate 10 annual payments of $16,275 to the initial carrying amount of $98,000 is approximately 10.4736 percent. The amortization if no prepayment occurs is shown in the following table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-76580A8C-6F52-454C-932E-D0337E08517A-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(98,000)" " $100,000 " " $98,000 " 1 " 16,275 " " $10,000 " $264 " $10,264 " " 93,725 " " $1,736 " " 91,989 " 2 " 16,275 " " 9,373 " 262 " 9,635 " " 86,823 " " 1,474 " " 85,349 " 3 " 16,275 " " 8,682 " 257 " 8,939 " " 79,230 " " 1,217 " " 78,013 " 4 " 16,275 " " 7,923 " 248 " 8,171 " " 70,878 " 969 " 69,909 " 5 " 16,275 " " 7,088 " 234 " 7,322 " " 61,691 " 735 " 60,956 " 6 " 16,275 " " 6,169 " 215 " 6,384 " " 51,585 " 520 " 51,065 " 7 " 16,275 " " 5,159 " 189 " 5,348 " " 40,469 " 331 " 40,138 " 8 " 16,275 " " 4,047 " 157 " 4,204 " " 28,241 " 174 " 28,067 " 9 " 16,275 " " 2,824 " 116 " 2,940 " " 14,790 " 58 " 14,732 " 10 " 16,275 " " 1,485 " (a) 58 " 1,543 " - - - Total amortization " $2,000 " Computations: Column (1)—Contractual payments Column (2)—Column (5) for prior year × the loan's stated interest rate (10%) Column (3)—Column (4) - Column (2) Column (4)—Column (7) for prior year × the effective interest rate (10.4736%) (b) Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) (a) $6 rounding adjustment. (b) "The effective interest rate is the discount rate that equates the present value of the future cash inflows to the initial net cash outflow of $98,000." ##### [310-20-55-23](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:499074f9c906093c25a015fa13473b6718115a642589c3c9a8339e6d3f7a152f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [310-20-35-17 through 35-24](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-17) , displaying amortization under the interest method using contractual payment terms with full prepayment in the third year. This Example has the following assumptions. ##### [310-20-55-24](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:20bf02b3784859d9ab5785ea35ee9263a051301b42158a291eeae889af4c529a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 19X7, Entity B originates a 10-year $100,000 loan with a 10 percent stated interest rate. The contract specifies equal annual payments of $16,275 through December 31, 19Y6. The contract also specifies that no penalty will be charged for prepayments of the loan. Entity B charges a 3 percent ($3,000) nonrefundable fee to the borrower and incurs $1,000 in direct loan origination costs. ##### [310-20-55-25](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:6da3daa44d5e072222970370b0848e3f2b93b7398dd5b37c5b9f5c74ffec4a00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity B accounts for this loan using contractual payments to apply the interest method of amortization. The amortization if the borrower prepays the remaining principal at the end of Year 3 is shown in the following table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-F63C2128-A7C7-4383-952F-2B5C0C7DC159-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(98,000)" " $100,000 " " $98,000 " 1 " 16,275 " " $10,000 " $264 " $10,264 " " 93,725 " " $1,736 " " 91,989 " 2 " 16,275 " " 9,373 " 262 " 9,635 " " 86,823 " " 1,474 " " 85,349 " 3 " 95,505 " " 8,682 " " 1,474 " " 10,156 " - - - Total amortization " $2,000 " Computations: Column (1)—Contractual payments + prepayments Column (2)—Column (5) for prior year × the loan's stated interest rate (10%) Column (3)—Column (4) - Column (2) "Column (4)—Column (7) for prior year × the effective interest rate (10.4736%) plus in year 3 an adjustment of $1,217 representing the unamortized net fees recognized when the loan is paid in full." Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) ##### [310-20-55-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:ff0fee60e01b8cdcc42b1e0766685eae7373c9b569a7ecfa806ee6351d97d498 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26), displaying amortization under the interest method using the anticipated prepayment patterns for a large number of loans. This Example has the following assumptions. ##### [310-20-55-27](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:303b0eb21e12aba42fa6cd46da916640b162cc060c98b1f023835fa268edd2d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 19X7, Entity C originates 1,000 10-year $10,000 loans with 10 percent stated interest rates. Each contract specifies equal annual payments through December 31, 19Y6. The contracts also specify that no penalty will be charged for prepayments. Entity C charges each borrower a 3 percent ($300) fee and incurs $100 in direct origination costs for each loan. The carrying amount of the loans is computed as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-853AEE6D-ADF2-42ED-B6C4-2E9B8E88E13A-low.gif) Loan principal amounts " $10,000,000 " Origination fees " (300,000)" Direct loan origination costs " 100,000 " Carrying amount of loans " $9,800,000 " ##### [310-20-55-28](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:be348d742d2e66567ad8ed9b51fd7bbf36fb0a1cfb70af6f32fe7d5cdb474614 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity C chooses to account for this large number of loans using anticipated prepayment patterns to apply the interest method of amortization. Entity C estimates a constant prepayment rate of 6 percent per year, which is consistent with Entity C's prior experience with similar loans and Entity C's expectation of ongoing experience. The amortization when prepayments occur as anticipated is shown in the following table. - ![](https://asc.understandingaccounting.org/asc-img/GUID-F3514511-AC9C-4FC1-9F00-BD87EBD4BACD-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(9,800,000)" " $10,000,000 " " $9,800,000 " 1 " 2,227,454 " " $1,000,000 " " $35,141 " " $1,035,141 " " 8,772,546 " " $164,859 " " 8,607,687 " 2 " 2,049,623 " " 877,255 " " 31,946 " " 909,201 " " 7,600,178 " " 132,913 " " 7,467,265 " 3 " 1,880,619 " " 760,018 " " 28,724 " " 788,742 " " 6,479,577 " " 104,189 " " 6,375,388 " 4 " 1,719,716 " " 647,958 " " 25,453 " " 673,411 " " 5,407,819 " " 78,736 " " 5,329,083 " 5 " 1,566,144 " " 540,782 " " 22,111 " " 562,893 " " 4,382,457 " " 56,625 " " 4,325,832 " 6 " 1,419,028 " " 438,246 " " 18,677 " " 456,923 " " 3,401,675 " " 37,948 " " 3,363,727 " 7 " 1,277,230 " " 340,168 " " 15,131 " " 355,299 " " 2,464,613 " " 22,817 " " 2,441,796 " 8 " 1,138,934 " " 246,461 " " 11,458 " " 257,919 " " 1,572,140 " " 11,359 " " 1,560,781 " 9 " 1,000,180 " " 157,214 " " 7,646 " " 164,860 " " 729,174 " " 3,713 " " 725,461 " 10 " 802,091 " " 72,917 " " 3,713 " " 76,630 " - - - Total amortization " $200,000 " Computations: Column (1)—Contractual payments + 6% of Column (5) for the prior year (except in year 10) Column (2)—Column (5) for prior year × the loan's stated interest rate (10%) Column (3)—Column (4) - Column (2) Column (4)—Column (7) for the prior year × the effective interest rate (10.5627%) Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) ##### [310-20-55-29](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:5f5c06c976257a35b74ed32332596eac1225a46a4249ae3d9945d869fe98eeeb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26), displaying amortization under the interest method using anticipated prepayment patterns with actual prepayment experience that differs from the anticipated amounts. This Example has the following assumptions. ##### [310-20-55-30](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:2e02a8362975775cd3a3a3c3efc1c195964aad49ae3626032a71314e849487ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 19X7, Entity D originates 1,000 10-year $10,000 loans with 10 percent stated interest rates. Each contract specifies equal annual payments through December 31, 19Y6. The contracts also specify that no penalty will be charged for prepayments. Entity D charges each borrower a 3 percent ($300) fee and incurs $100 in direct origination costs for each loan. ##### [310-20-55-31](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:64e89b9162dfa35928dbc9614ec26a681848fe3dcfd5794acaad212c277750ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity D chooses to account for this portfolio of loans using anticipated prepayment patterns to apply the interest method of amortization. Entity D estimates a constant prepayment rate of 6 percent per year, which is consistent with Entity D's prior experience with similar loans and Entity D's expectation of ongoing experience. ##### [310-20-55-32](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:7954e150b0024250cfa34aa16661c87cb1d13534b8e2aedbca9151ff507e4b59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the adjustment required by paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26) of this Subtopic when an entity's actual prepayment experience differs from the amounts anticipated. The loans have actually prepaid at a rate of 6 percent in Years 1 and 2 and 20 percent in Year 3, and based on the new information at the end of Year 3, Entity D revises its estimate of prepayment experience to anticipate that 10 percent of the loans will prepay in Year 4 and 6 percent of the loans will prepay in remaining years. The carrying amount of the loans at the end of Year 3 is adjusted to the amount that would have existed had the new effective yield been applied since January 1, 19X7. Included in amortization in Year 3 is an adjustment for the difference in the prior effective yield and the new effective yield applied to amounts outstanding in Years 1 and 2. Amortization in Years 4-10 assumes the new estimates of prepayment experience occur as anticipated. - ![](https://asc.understandingaccounting.org/asc-img/GUID-E126EECA-1DEF-4B94-95CF-60816F591255-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(9,800,000)" " $10,000,000 " " $9,800,000 " 1 " 2,227,454 " " $1,000,000 " " $35,141 " " $1,035,141 " " 8,772,546 " " $164,859 " " 8,607,687 " 2 " 2,049,623 " " 877,255 " " 31,946 " " 909,201 " " 7,600,178 " " 132,913 " " 7,467,265 " 3 " 2,944,644 " " 760,018 " " 41,951 " " 801,969 " " 5,415,552 " " 90,962 " " 5,324,590 " 4 " 1,653,939 " " 541,555 " " 23,294 " " 564,849 " " 4,303,168 " " 67,668 " " 4,235,500 " 5 " 1,246,229 " " 430,317 " " 18,998 " " 449,315 " " 3,487,256 " " 48,670 " " 3,438,586 " 6 " 1,129,164 " " 348,726 " " 16,050 " " 364,776 " " 2,706,818 " " 32,620 " " 2,674,198 " 7 " 1,016,331 " " 270,682 " " 13,005 " " 283,687 " " 1,961,169 " " 19,615 " " 1,941,554 " 8 " 906,285 " " 196,117 " " 9,849 " " 205,966 " " 1,251,001 " " 9,766 " " 1,241,235 " 9 " 795,875 " " 125,100 " " 6,574 " " 131,674 " " 580,226 " " 3,192 " " 577,034 " 10 " 638,249 " " 58,023 " " 3,192 " " 61,215 " - - - Total amortization " $200,000 " Computations: Column (1)—Contractual payments + prepayments Column (2)—Column (5) for prior year × the loan's stated interest rate (10%) Column (3)—Column (4) - Column (2) "Column (4)—Column (7) for the prior year × the effective rate (10.5627% for years 1 and 2, and 10.6083% for years 3-10, + an adjustment of $8,876 in year 3 representing the cumulative effect (a) applicable to years 1 and 2 of changing the estimated effective rate)" Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) (a) An adjustment would also be required if the level of prepayments realized was less than anticipated. ##### [310-20-55-33](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:5de6363203f7d1cc714c85e163114dd2bdbb07c432d91d8579d40727dad3fe91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18), displaying amortization under the interest method. The effective yield is used to recognize an amount in excess of net fees for the loan with an increasing stated rate. The excess recognized is permissible only to the extent that the loan agreement provides for a prepayment penalty that is effective through the loan term. This Example has the following assumptions. ##### [310-20-55-34](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:f5c57561b574254200b690caa11394173495f4c71ef2d51ad3854662b426431b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity E grants a 10-year $100,000 loan with an 8 percent stated interest rate in Year 1 and 10 percent in Years 2-10. Entity E receives net fees of $1,000 related to this loan. The contract specifies that the borrower must pay a penalty equal to 1 percent of any principal prepaid. Application of the effective yield to recognize an amount in excess of net fees is appropriate for a loan with an increasing stated interest rate only to the extent that the loan agreement provides for a prepayment penalty that is effective throughout the loan term. The loan would be accounted for as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-7E1489B8-55D0-48DD-9429-92AB5DEBD79B-low.gif) (1) (2) (3) (4) (5) (6) (7) (8) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees (a) Carrying Amount Settlement Amount " $(99,000)" " $100,000 " " $99,000 " 1 " 14,903 " " $8,000 " " $1,710 " " $9,710 " " 93,097 " $(710) " 93,807 " " $94,028 " 2 " 16,165 " " 9,310 " (108) " 9,202 " " 86,242 " (602) " 86,844 " " 87,104 " 3 " 16,165 " " 8,624 " (106) " 8,518 " " 78,701 " (496) " 79,197 " " 79,488 " 4 " 16,165 " " 7,870 " (102) " 7,768 " " 70,406 " (394) " 70,800 " " 71,110 " 5 " 16,165 " " 7,041 " (97) " 6,944 " " 61,282 " (297) " 61,579 " " 61,895 " 6 " 16,165 " " 6,128 " (88) " 6,040 " " 51,245 " (209) " 51,454 " " 51,757 " 7 " 16,165 " " 5,124 " (78) " 5,046 " " 40,204 " (131) " 40,335 " " 40,606 " 8 " 16,165 " " 4,021 " (65) " 3,956 " " 28,060 " (66) " 28,126 " " 28,340 " 9 " 16,165 " " 2,806 " (47) " 2,759 " " 14,701 " (19) " 14,720 " " 14,848 " 10 " 16,165 " " 1,464 " (b) (19) " 1,445 " - - - - Total amortization " $1,000 " Computations: Column (1)—Contractual payments "Column (2)—Column (5) for prior year × the loan's stated interest rate (8% in year 1, 10% in years 2-10)" Column (3)—Column (4) - Column (2) Column (4)—Column (7) for the prior year × the effective interest rate (9.8085%) Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) Column (8)—Column (5) × 1.01 (to calculate the settlement amount including prepayment penalty) (a) Unamortized net fee and accrued interest. (b) $6 rounding adjustment. ##### [310-20-55-35](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:b8431ee63c07af9359324a96e5d188f590f0efccd1b09bdc8ea24985dd68ef3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) for the application of the interest method of amortization with an increasing rate loan and with no penalty charged for prepayment of principal. This Example has the following assumptions. ##### [310-20-55-36](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:e22c67d85d79c3749712d3d77fd0060e95c0c0c999ad8a6b3b88bfec623cdaa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity F grants a 10-year $100,000 loan. The contract provides for 8 percent interest in Year 1 and 10 percent interest in Years 2-10. Entity F receives net fees of $1,000 related to this loan. The contract specifies that no penalty will be charged for prepayment of principal. ##### [310-20-55-37](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:7c35c27f96ad1cff5b6fc30f262dd9b013473e0a67e2383f5a799408f9d63cd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The discount factor that equates the present value of the cash inflows in Column 1 with the initial cash outflow of $99,000 is 9.8085 percent. In Year 1, recognition of interest income on the investment of $99,000 at a rate of 9.8085 percent would cause the investment to be $93,807, or $710 greater than the amount at which the borrower could settle the obligation. Because the condition set forth in paragraph [310-20-35-18(a)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) is not met, recognition of an amount greater than the net fee is not permitted. The loan would be accounted for as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-12B04ACC-39D0-4AE0-9885-5F45376ECEE8-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(99,000)" " $100,000 " " $99,000 " 1 " 14,903 " " $8,000 " " $1,000 " " $9,000 " " 93,097 " $- " 93,097 " 2 " 16,165 " " 9,310 " - " 9,310 " " 86,242 " - " 86,242 " 3 " 16,165 " " 8,624 " - " 8,624 " " 78,701 " - " 78,701 " 4 " 16,165 " " 7,870 " - " 7,870 " " 70,406 " - " 70,406 " 5 " 16,165 " " 7,041 " - " 7,041 " " 61,282 " - " 61,282 " 6 " 16,165 " " 6,128 " - " 6,128 " " 51,245 " - " 51,245 " 7 " 16,165 " " 5,124 " - " 5,124 " " 40,204 " - " 40,204 " 8 " 16,165 " " 4,021 " - " 4,021 " " 28,060 " - " 28,060 " 9 " 16,165 " " 2,806 " - " 2,806 " " 14,701 " - " 14,701 " 10 " 16,165 " " 1,464 " (a) - " 1,464 " - - - Total amortization " $1,000 " Computations: Column (1)—Contractual payments "Column (2)—Column (5) for prior year × the loan's stated interest rate (8% in year 1, 10% in Years 2-10)" Column (3)—Column (4) - Column (2) "Column (4)—Column (7) for the prior year × the effective interest rate (9.8085%) as limited by paragraph 310-20-35-18(a)" Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) (a) $6 rounding adjustment. ##### [310-20-55-38](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:49f914a1652dadb47a4e9ee615f715b032093bc297cfeac64ccdc99f3fa9e74d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-18(b)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) for the application of the interest method for a loan with a decreasing interest rate. This Example has the following assumptions. ##### [310-20-55-39](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:ae22b41279412b67ff590a9cb5400437fde04397c8766532aabc03438c966694 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity G grants a 10-year $100,000 mortgage. Entity G receives net fees of $1,000 related to this loan. The contract provides for an interest rate of 12 percent in Year 1, 11 percent in Year 2, and 10 percent thereafter. The loan would be accounted for as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-4911906B-B848-4BBA-9B6E-D5F95768E5EA-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees (a) Carrying Amount " $(99,000)" " $100,000 " " $99,000 " 1 " 17,698 " " $12,000 " " $(1,259)" " $10,741 " " 94,302 " " $2,259 " " 92,043 " 2 " 17,031 " " 10,373 " (388) " 9,985 " " 87,644 " " 2,647 " " 84,997 " 3 " 16,428 " " 8,764 " 458 " 9,222 " " 79,980 " " 2,189 " " 77,791 " 4 " 16,428 " " 7,998 " 441 " 8,439 " " 71,550 " " 1,748 " " 69,802 " 5 " 16,428 " " 7,155 " 418 " 7,573 " " 62,277 " " 1,330 " " 60,947 " 6 " 16,428 " " 6,228 " 385 " 6,613 " " 52,077 " 945 " 51,132 " 7 " 16,428 " " 5,208 " 339 " 5,547 " " 40,857 " 606 " 40,251 " 8 " 16,428 " " 4,086 " 281 " 4,367 " " 28,515 " 325 " 28,190 " 9 " 16,428 " " 2,852 " 206 " 3,058 " " 14,939 " 119 " 14,820 " 10 " 16,428 " " 1,489 " (b) 119 " 1,608 " - - - Total amortization " $1,000 " Computations: Column (1)—Contractual payments "Column (2)—Column (5) for prior year × the loan's stated interest rate (12% in year 1, 11%for Year 2, and 10% in Years 3-10)" Column (3)—Column (4) - Column (2) Column (4)—Column (7) for the prior year × effective interest rate (10.8491%) Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) (a) Unamortized net fee and deferred interest. (b) $5 rounding adjustment. ##### [310-20-55-40](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:825e5af69542ec01080ef3404dee5ffbccbf63769aa4e768d1f8f60c9edc9e23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-18(c)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) for the application of the interest rate method for a variable rate loan with the amortization based on the index at the date the loan is granted ignoring subsequent changes in the factor. This Example has the following assumptions. ##### [310-20-55-41](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:624b79621774225279476121154d80f7cc6cee3a3abf045212d16589fd5fb05a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity H grants a 10-year variable rate mortgage. The loan's interest rate and payment are adjusted annually based on the weekly Treasury bill index plus 1 percent. At the date the loan is granted, this index is 7 percent and does not change until the end of Year 3. The first year loan interest rate is 8 percent (equal to the Treasury bill index plus 1 percent). Entity H receives net fees of $3,000. At the end of Year 3 the index changes to 9 percent and does not change again. Therefore, the loan's stated interest rate is 8 percent for Years 1-3 and 10 percent for Years 4-10. Entity H chooses to determine the amortization based on the index at the date the loan is granted and to ignore subsequent changes in the factor. The loan would be accounted for as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-EC1E786F-08BF-4839-B6A9-3729DFFE47EA-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(97,000)" " $100,000 " " $97,000 " 1 " 14,903 " " $8,000 " $420 " $8,420 " " 93,097 " " $2,580 " " 90,517 " 2 " 14,903 " " 7,448 " 410 " 7,858 " " 85,642 " " 2,170 " " 83,472 " 3 " 14,903 " " 6,851 " 395 " 7,246 " " 77,590 " " 1,775 " " 75,815 " 4 " 15,937 " " 7,759 " 375 " 8,134 " " 69,412 " " 1,400 " " 68,012 " 5 " 15,937 " " 6,941 " 347 " 7,288 " " 60,416 " " 1,053 " " 59,363 " 6 " 15,937 " " 6,042 " 314 " 6,356 " " 50,521 " 739 " 49,782 " 7 " 15,937 " " 5,052 " 272 " 5,324 " " 39,636 " 467 " 39,169 " 8 " 15,937 " " 3,964 " 221 " 4,185 " " 27,663 " 246 " 27,417 " 9 " 15,937 " " 2,766 " 160 " 2,926 " " 14,492 " 86 " 14,406 " 10 " 15,937 " " 1,445 " (a) 86 " 1,531 " - - - Total amortization " $3,000 " Computations: Column (1)—Contractual payments "Column (2)—Column (5) for prior year × the loan's stated interest rate (8% in years 1-3, and 10% in years 4-10)" "Column (3)—Calculated as if the index did not change—that is, the amount that would have been recognized for an 8%, 10-year $100,000 mortgage with no prepayments and a $3,000 net fee" Column (4)—Column (2) + Column (3) Column (5)—Column (5) for prior year - (Column (1) - Column (2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) (a) $4 rounding adjustment. ##### [310-20-55-42](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:a9787574a9086accc7e6d5e79141143127642ec3334c1fe08bf213619b128c2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-18(c)](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18) for the application of the interest method to a variable rate loan with amortization recalculated for subsequent changes in loan's index. This Example has the following assumptions. ##### [310-20-55-43](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-43) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:2e75f625637c9c7d79a4de43b79d689db68e0f9e199c29f733d2225c5807012e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity I grants a 10-year variable rate mortgage. The loan's interest rate and payment are adjusted annually based on the weekly Treasury bill index plus 1 percent. At the date the loan is granted, this index is 7 percent and does not change until the end of Year 3. The first year loan interest rate is 8 percent (equal to the Treasury bill index plus 1 percent). Entity I receives net fees of $3,000. At the end of Year 3 the index changes to 9 percent and does not change again. Therefore, the loan's stated interest rate is 8 percent for Years 1-3 and 10 percent for Years 4-10. Entity I chooses to recalculate a new amortization schedule each time the loan's index changes. The loan would be accounted for as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D1A3A9D0-53E2-4A0A-A9CF-3B53AB2A9E7C-low.gif) (1) (2) (3) (4) (5) (6) (7) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(97,000)" " $100,000 " " $97,000 " 1 " 14,903 " " $8,000 " $420 " $8,420 " " 93,097 " " $2,580 " " 90,517 " 2 " 14,903 " " 7,448 " 410 " 7,858 " " 85,642 " " 2,170 " " 83,472 " 3 " 14,903 " " 6,851 " 395 " 7,246 " " 77,590 " " 1,775 " " 75,815 " 4 " 15,937 " " 7,759 " 358 " 8,117 " " 69,412 " " 1,417 " " 67,995 " 5 " 15,937 " " 6,941 " 340 " 7,281 " " 60,416 " " 1,077 " " 59,339 " 6 " 15,937 " " 6,042 " 311 " 6,353 " " 50,521 " 766 " 49,755 " 7 " 15,937 " " 5,052 " 275 " 5,327 " " 39,636 " 491 " 39,145 " 8 " 15,937 " " 3,964 " 227 " 4,191 " " 27,663 " 264 " 27,399 " 9 " 15,937 " " 2,766 " 168 " 2,934 " " 14,492 " 96 " 14,396 " 10 " 15,937 " " 1,445 " (a) 96 " 1,541 " - - - Total amortization " $3,000 " Computations: Column (1)—Contractual payments "Column (2)—Column (5) for prior year × the loan's stated interest rate (8% in Year 1-3, and 10% in Years 4-10)" Column (3)—Column (4) - Column (2) Column (4)—Column (7) for the prior year × the effective interest rate (8.6809%) for years 1-3 and Column (7) for the prior year × the effective interest rate (10.7068%) for Years 4-10 Column (5)—Column (5) for prior year - (Column \[1\] - Column \[2\]) Column (6)—Initial net fees - amortization to date Column (7)—Column (5) - Column (6) (a) $4 rounding adjustment. ##### [310-20-55-44](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-44) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:32892019275ad78104e08d609a57637638010ee3c30fd89d04b8aa8b591314a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the guidance in paragraph [310-20-35-16](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-16) for the application of the interest method of amortization using the contract life with a partial prepayment in Year 3. ##### [310-20-55-45](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-45) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:c6d8ceabe43309443f4670c51094a9925c7ae6242388bc9b02d2fec07fc460ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 2 (paragraph [310-20-55-23](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-23)) illustrates the application of the guidance in paragraphs [310-20-35-17 through 35-24](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-17) by a lender that is using contract life to amortize net deferred fees and costs for a group of loans with a full prepayment in Year 3. If the lender receives a partial prepayment in Year 3 rather than a full prepayment, the lender has two options to calculate the adjustment to unamortized net fees as required in paragraph [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26), which states that a lender using contract life to amortize net fees and costs must adjust the unamortized amount if, and when, loan prepayments occur. Such prepayments should not result in a change in the [effective interest rate](https://asc.understandingaccounting.org/glossary/e/#effective-interest-rate "The rate of return implicit in the financial asset, that is, the contractual interest rate adjusted for any net deferred fees or costs, premium, or discount existing at the origination or acquisition of the financial asset. For purchased financial assets with credit deterioration, however, to decouple interest income from credit loss recognition, the premium or discount at acquisition excludes the discount embedded in the purchase price that is attributable to the acquirer's assessment of credit losses at the date of acquisition.") of the loan. The lender should calculate the adjustment to unamortized net fees under either of the following Cases depending on the terms of the loan contract: 1. a The lender will determine a new annual payment assuming the borrower will continue to make the payments through the original term of the loan contract (Case A). 2. b The borrower will continue to make the original annual payment, however, over a shorter period than the term specified in the loan contract (Case B). ##### [310-20-55-46](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-46) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:227b5be62df06c1f978e07e53d5569785bb94a7b760d56bbc959233f69d706c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following tables illustrate how the lender should calculate the adjustment to unamortized net fees assuming the borrower will continue to make the payments through the original term of the loan contract. - ![](https://asc.understandingaccounting.org/asc-img/GUID-A0DAF8D9-AB0D-4900-8B12-421DBB0755D8-low.gif) Year Cash(Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(98,000)" " $100,000 " " $98,000 " 1 " 16,275 " " $10,000 " $264 " $10,264 " " 93,725 " " $1,736 " " 91,989 " 2 " 16,275 " " 9,373 " 262 " 9,635 " " 86,823 " " 1,474 " " 85,349 " 3 " 26,275 " " 8,682 " 407 (4) " 9,089 " " 69,230 " " 1,067 " (3) " 68,163 " (2) 4 " 14,220 " (1) " 6,923 " 216 " 7,139 " " 61,933 " 851 " 61,082 " 5 " 14,220 " " 6,193 " 204 " 6,397 " " 53,906 " 647 " 53,259 " 6 " 14,220 " " 5,391 " 187 " 5,578 " " 45,077 " 460 " 44,617 " 7 " 14,220 " " 4,508 " 165 " 4,673 " " 35,365 " 295 " 35,070 " 8 " 14,200 " " 3,537 " 136 " 3,673 " " 24,682 " 159 " 24,523 " 9 " 14,220 " " 2,469 " (a) 99 " 2,568 " " 12,931 " 60 " 12,871 " 10 " 14,220 " " 1,289 " (b) 60 " 1,349 " (a) - - - " $2,000 " Step Calculation 1. Determine new annual payment Remaining periods = 7 "Remaining principal = $69,230" Stated rate = 10% "Calculated payment = $14,220" 2. Determine new carrying amount "Calculated payment (Step 1) = $14,220" Remaining periods = 7 Original effective interest rate = 10.4736% "Calculated carrying amount = $68,163" 3. Determine the remaining Remaining principal balance (Step 1) " $69,230 " balance of unamortized net fees Less carrying amount (Step 2) " 68,163 " " $1,067 " 4. Determine the adjustment to Prior year balance of unamortized net fees " $1,474 " unamortized net fees Less calculated unamortized net fees (Step 3) " 1,067 " $407 (a) $1.00 rounding adjustment (b) $4.00 rounding adjustment ##### [310-20-55-47](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-47) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:33577bc33f0d8de847b9596ea41133dd10206b3d0d92e51954ce338bb57e3cf2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following tables illustrate how the lender should calculate the adjustment to unamortized net fees assuming the borrower will continue to make the original annual payment, however, over a shorter period than the term specified in the loan contract. - ![](https://asc.understandingaccounting.org/asc-img/GUID-F3CFB779-35E1-4C5D-BC3E-514C2B748968-low.gif) Year Cash (Out) Inflow Stated Interest Amortization Interest Income Remaining Principal Unamortized Net Fees Carrying Amount " $(98,000)" " $100,000 " " $98,000 " 1 " 16,275 " " $10,000 " $264 " $10,264 " " 93,725 " " $1,736 " " 91,989 " 2 " 16,275 " " 9,373 " 262 " 9,635 " " 86,823 " " 1,474 " " 85,349 " 3 " 26,275 " " 8,682 " 546 (4) " 9,228 " " 69,230 " 928 (3) " 68,302 " (2) 4 " 16,275 " (1) " 6,923 " 231 " 7,154 " " 59,878 " 697 " 59,181 " 5 " 16,275 " " 5,988 " 210 " 6,198 " " 49,591 " 487 " 49,104 " 6 " 16,275 " " 4,959 " 184 " 5,143 " " 38,275 " 303 " 37,972 " 7 " 16,275 " " 3,828 " 149 " 3,977 " " 25,828 " 154 " 25,674 " 8 " 16,275 " " 2,583 " 106 " 2,689 " " 12,136 " 48 " 12,088 " 9 " 13,349 " " 1,214 " 48 " 1,262 " (a) - (b) - - 10 - - - - - - - " $2,000 " Step Calculation 1. Determine new payment period "Remaining principal = $69,230" Stated rate = 10% "Annual payment = $16,275" Calculated payment period = 5.813 2. Determine new carrying amount "Annual payment = $16,275" Calculated payment period (Step 1) = 5.813 Original effective interest rate = 10.4736% "Calculated carrying amount = $68,302" 3. Determine the remaining balance Remaining principal balance (Step 1) " $69,230 " of unamortized net fees Less carrying amount (Step 2) " 68,302 " $928 4. Determine the adjustment Prior year balance of unamortized net fees " $1,474 " to unamortized net fees Less calculated unamortized net fees (Step 3) 928 Adjustment $546 (a) $4.00 rounding adjustment (b) $1.00 rounding adjustment ##### [310-20-55-48](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-48) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:13d756ad484ccbee7670f41c244040c85737bb3ad6086b76bf953fdacfc69278 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [310-20-55-49 through 55-50](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-49) . ##### [310-20-55-49](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-49) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:e938298b1a71a67cb92505d75c23541acc743a794c97ef5fb118e95f7368614e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that a credit facility provides for the extension of multiple, unscheduled drawdowns (or loans) with varying maturities. Also assume that the facility does not have the characteristics of a revolving line of credit (for example, repayments of amounts borrowed are not available for reborrowing) and drawdowns are anticipated. The commitment fee shall be deferred until the facility is exercised and a drawdown is made. Given the multiple, unscheduled drawdowns intended under the facility, a pro rata portion of the commitment fee (equal to the percentage of the loan drawn down to the total facility) shall be recognized over the life of the applicable drawdown as an adjustment of its yield. ##### [310-20-55-50](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-50) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:b9f10651601b2d1fc5eb9c394be18a2adf3bd664ca80c86d7689bf1fb43f15cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, assume that a commitment fee net of deferrable costs of $100,000 is received at the inception of a 2-year facility of $10,000,000 that permits the borrower to make multiple, unscheduled drawdowns of varying maturities during the 2-year commitment period. Assume then that the borrower draws down a $1,000,000 loan due in 3 years in the fourth month of the 2-year commitment period. Assume further that the borrower draws down another $2,000,000 loan due in 5 years in the sixth month of the commitment period. The remainder of the facility expires unused. The commitment fee would be recognized as follows: 1. a At inception of the facility. Qualifying costs to establish the credit facility would be deferred, and no fee income would be recognized because the entire fee is deferred until a drawdown occurs. 2. b Months 1-3. No net fee income would be recognized because no drawdowns have occurred. 3. c Month 4. A pro rata portion of the net commitment fee equal to the ratio of the drawdown to the total facility would be recognized over the life of the drawdown as an adjustment of yield. In this example: Current drawdown/Total facility x Net commitment fee = Amount to be recognized over the life of the drawdown as a yield adjustment. For example: $ 1,000,000/$10,000,000 x $100,000 = $10,000 4. d Month 6. Similar to the month 4 illustration, a pro rata portion of the deferred net fee equal to the ratio of the current drawdown to the total facility would be recognized over the life of the drawdown as an adjustment of yield. In this example: $ 2,000,000/$10,000,000 x $100,000 = $20,000 5. e Months 7-23. No additional net fee income other than amortization of net [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.") recognized as yield adjustments would be recognized because no further drawdowns have occurred; thus, the remaining $70,000 net commitment fee would continue to be deferred. 6. f Month 24. The remaining deferred net commitment fee of $70,000 would be recognized in income upon expiration of the facility because additional drawdowns are not possible. ##### [310-20-55-51](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-51) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:f083e103d129da37fa268289397cac2d4d2397267080276787c1b3a34e99473c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in Subtopic 310-20. The Example has the following assumptions: 1. a At December 31, 20X2, a lender's net real estate loan receivable was $90,000. The net receivable was comprised of (a) $100,000 principal balance and (b) $10,000 allowance for credit losses due to the deterioration of the borrower's credit worthiness; the allowance was based on the underlying value of the real estate since the loan is collateral dependent. 2. b Between December 31, 20X2 and March 31, 20X3, the borrower did not make principal payments. On March 31, 20X3, the real estate's estimated fair value was $75,000. The estimated costs to sell were $4,000. 3. c On May 1, 20X3, the lender foreclosed on the real estate; the real estate's estimated fair value and costs to sell remained unchanged from March 31, 20X3. The real estate was classified as held for sale under Topic 360, subsequent to foreclosure. 4. d At September 30, 20X3, the fair value of the property was $65,000. The estimated costs to sell were $3,000. 5. e At March 31, 20X4, the fair value of the property was $80,000. The estimated costs to sell were $5,000. ##### [310-20-55-52](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-52) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:5e9c67e49ea7573a4a588333ec2117ddeb715fc9f8bc8eaf8bdd90ddd6524b35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On March 31, 20X3, the lender estimates expected credit losses using the fair value of the collateral in accordance with paragraphs [326-20-35-4 through 35-5](https://asc.understandingaccounting.org/asc/326/20/#326-20-35-4) . Accordingly, the lender should record an allowance for credit losses in the cumulative amount of $29,000 ($19,000 incremental amount plus $10,000 recorded previously) measured as the difference between the amortized cost basis ($100,000) and the fair value less cost to sell ($71,000). Upon foreclosure on May 1, 20X3, the application of paragraph [310-20-40-5](https://asc.understandingaccounting.org/asc/310/20/#310-20-40-5) results in the measurement of a new cost basis (also $71,000) for long-lived assets received in full satisfaction of a receivable. ##### [310-20-55-53](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-53) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:793f507032de04529d6ed2a7bbcaea76bf3d0ee7987c398c7d6dc70514cb5226 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value less cost to sell decrease to $62,000 as of September 30, 20X3, requires the lender to recognize an impairment of $9,000 ($71,000 - $62,000) under Topic 360. While the long-lived asset's fair value less cost to sell increased $13,000 ($75,000 - $62,000) as of March 31, 20X4, the lender's gain recognition is limited to the cumulative losses recognized and measured under Topic 360, or $9,000. The $29,000 of credit losses recognized previously under Subtopic 326-20 on financial instruments measured at amortized cost are excluded from the measurement of cumulative losses under Topic 360. ##### [310-20-55-54](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-54) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:a01a7d7f94152965a43d2df8da4e2fb3991847e8f425a4ff265649f1b97ff2de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [310-20-35-9](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-9) to determine whether the terms of a modified loan are at least as favorable to the lender as the terms for comparable loans to other customers with similar collection risks who are not refinancing or restructuring a loan with the lender. This Example has the following assumptions. ##### [310-20-55-55](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-55) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:696b3d6e0aa8c454eb0d455028908c1fac1b1b990719f982499362f52f751b61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 20X1, Entity J originates a 10-year $100,000 consumer loan to an individual with a FICO score of 710. The loan’s stated interest rate is 7 percent. On June 30, 20X3, Entity J modifies the loan to reduce the effective interest rate to 3 percent. At the time of the modification, the borrower’s credit score is 650. Between the loan’s origination date and modification date, interest rates have decreased and the at-market interest rate for a borrower with a credit score of 650 is 5 percent at the date of the modification. ##### [310-20-55-56](https://asc.understandingaccounting.org/asc/310/20/#310-20-55-56) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:11.164Z to 2026-09-09T23:26:11.164Z Record version: sha256:6053f6898dfd96d8059a53a226f0994a271bb09c52f377d7aa2d097cfb3c90a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On the date of the modification, Entity J compares the effective interest rate on the modified loan with the effective interest rate that it has negotiated for new loans with similar characteristics originated to borrowers with a credit score that approximates 650. Entity J concludes that the effective interest rate on the modified loan (3 percent) is lower than the effective interest rate on a similar new loan (5 percent), and, therefore, Entity J does not have to assess whether the modification is more than minor in accordance with paragraph [310-20-35-11](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-11). Instead, the modification would be accounted for as a continuation of the existing loan. Source downloaded (UTC): 2026-09-09T23:26:15.174Z to 2026-09-09T23:26:15.174Z Record version: sha256:33e4ae0cc1e7f808113aebde0415b7fc1e68d5c2686eea29b8a27a116c193027 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/310/20/#60-relationships) SEC content: no ##### [310-20-60-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:15.174Z to 2026-09-09T23:26:15.174Z Record version: sha256:9a0cfbcd289501aac0d5e192da1ba7e7c6ed5f80f8e940c1a391b266dbee9a3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Investments—Beneficial Interests in Securitized Financial Assets ##### [310-20-60-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:15.174Z to 2026-09-09T23:26:15.174Z Record version: sha256:3b04e0b22df4448855cf92046943623fa0eeba733af587a77a1103a7edef1b77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the determination of whether a credit loss on beneficial interests exists and on interest income recognition on beneficial interests, see Section 325-40-15. Source downloaded (UTC): 2026-09-09T23:26:17.858Z to 2026-09-09T23:26:17.858Z Record version: sha256:c177213f1976b6d0c3b731e2bd180c92335ab8e42169c533b572fa02674b61e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-20-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/310/20/#65-transition-and-open-effective-date-information) SEC content: no ##### [310-20-65-1](https://asc.understandingaccounting.org/asc/310/20/#310-20-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:17.858Z to 2026-09-09T23:26:17.858Z Record version: sha256:38409e8e5958f752ee99bcb259e92e9752a56638d1ce16fc4679205fd2deb58d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 08/19/2021 after the end of the transition period stated in Accounting Standards Update No. 2017-08, _Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities._ ##### [310-20-65-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-65-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:17.858Z to 2026-09-09T23:26:17.858Z Record version: sha256:e0143eafb299e93fadb5480a4f834b34b759e4ac387e14268c9584eb99733608 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 07/10/2023 after the end of the transition period stated in Accounting Standards Update No. 2020-08, _Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs_. Source downloaded (UTC): 2026-09-09T23:26:22.927Z to 2026-09-09T23:26:57.952Z Record version: sha256:3cebd9ebc7124d674e0df8d46f5be81d4fd36e200da01e7add292a891fac8d91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30: Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality ### Machine-generated study aids ```json { "summary": "ASC 310-30 formerly governed loans and debt securities acquired with evidence of deteriorated credit quality (so-called purchased credit-impaired assets), where it was probable at acquisition that the investor would not collect all contractually required payments receivable; it required accreting the excess of expected cash flows over the initial investment into interest income as accretable yield and prohibited carrying over or creating a valuation allowance at acquisition. Every substantive paragraph of this subtopic has been superseded by Accounting Standards Update No. 2016-13 (CECL). Purchased financial assets with credit deterioration are now accounted for under Subtopics 326-20 and 326-30.", "key_points": [ "All paragraphs in Sections 05, 15, 25, 30, 35, 40, 45, 50, 55, and 60 of 310-30 were superseded by Accounting Standards Update No. 2016-13, so the subtopic contains no operative guidance for entities that have adopted that Update.", "Paragraphs 310-30-25-2 and 310-30-35-4 are marked 'Paragraph not used,' confirming the shell structure that remains.", "The superseded scope (310-30-15) covered loans and debt securities acquired by completion of a transfer, including purchases and business combinations, with evidence of credit deterioration since origination where it was probable the acquirer would not collect all contractually required payments.", "The superseded measurement model (310-30-30 and 310-30-35) recognized the excess of the investor's estimate of undiscounted expected cash flows over the initial investment as accretable yield over the asset's life, with the nonaccretable difference not recognized as an allowance at acquisition.", "Under the superseded model, decreases in expected cash flows after acquisition were recognized as impairment, while increases were recognized prospectively as a yield adjustment (former 310-30-35 guidance).", "Entities may still need this superseded text for pre-adoption comparative periods; current accounting for purchased financial assets with credit deterioration is in Subtopics 326-20 (amortized cost) and 326-30 (available-for-sale debt securities).", "Effective-date and transition requirements for moving off 310-30 are found in the transition guidance of ASU 2016-13 and Subtopic 326-10." ], "categories": [ "Financial instruments", "Impairment", "Transition and effective dates", "Subsequent measurement" ], "audience_level": "intermediate", "student_note": "Treat 310-30 as legacy history: the PCI accretable-yield model is fully superseded by the PCD \"gross-up\" approach in ASC 326-20/326-30. The common error is citing 310-30 as live GAAP or assuming no allowance is recorded at acquisition, when under CECL an allowance is added to the purchase price on day one.", "related_topics": [ "326-20", "326-30", "326-10", "310-10", "805-20", "320-10" ], "key_concepts": [ "purchased credit-impaired assets", "purchased financial assets with credit deterioration", "accretable yield", "nonaccretable difference", "expected cash flows", "superseded guidance", "allowance for credit losses", "contractually required payments receivable" ] } ``` Source downloaded (UTC): 2026-09-09T23:26:22.927Z to 2026-09-09T23:26:22.927Z Record version: sha256:c034ae2de1a5e4e7fb9fb9c52f5ff1570596a8fb709ee009038a41b5f95508b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/30/#00-status) SEC content: no ##### [310-30-00-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:22.927Z to 2026-09-09T23:26:22.927Z Record version: sha256:074a628d6112671e87db56fe8d978a41475e8dcf1c6f347ebf8b6e5711aa3654 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Accretable YieldSupersededAccounting Standards Update No. 2016-1306/16/2016
Cash Flows Expected at AcquisitionSupersededAccounting Standards Update No. 2016-1306/16/2016
Cash Flows Expected at AcquisitionAmendedAccounting Standards Update No. 2012-0410/01/2012
Common Risk CharacteristicsSupersededAccounting Standards Update No. 2016-1306/16/2016
Completion of a TransferSupersededAccounting Standards Update No. 2016-1306/16/2016
Contractually Required Payments ReceivableSupersededAccounting Standards Update No. 2016-1306/16/2016
Debt Security (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Debt SecuritySupersededAccounting Standards Update No. 2016-1306/16/2016
Effective Interest RateAmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateSupersededAccounting Standards Update No. 2016-1306/16/2016
Fair ValueSupersededAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (2nd def.)AddedAccounting Standards Update No. 2016-1912/14/2016
Initial InvestmentSupersededAccounting Standards Update No. 2016-1306/16/2016
Loan (1st def.)SupersededAccounting Standards Update No. 2016-1306/16/2016
Loan (2nd def.)SupersededAccounting Standards Update No. 2016-1306/16/2016
Market ParticipantsSupersededAccounting Standards Update No. 2016-1306/16/2016
Nonaccretable DifferenceSupersededAccounting Standards Update No. 2016-1306/16/2016
Orderly TransactionSupersededAccounting Standards Update No. 2016-1306/16/2016
ProbableSupersededAccounting Standards Update No. 2016-1306/16/2016
Purchased Financial Assets with Credit DeteriorationAmendedAccounting Standards Update No. 2016-1912/14/2016
Related PartiesSupersededAccounting Standards Update No. 2016-1306/16/2016
Revolving PrivilegesSupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-05-1 through 05-3
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-15-1 through 15-10
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-15-2AmendedAccounting Standards Update No. 2016-0202/25/2016
310-30-15-2AmendedAccounting Standards Update No. 2009-1612/23/2009
310-30-15-6AmendedAccounting Standards Update No. 2010-1804/29/2010
310-30-15-9AmendedAccounting Standards Update No. 2009-1612/23/2009
310-30-25-1SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-30-1SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-30-2SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-35-1 through 35-3
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-10-35-5 through 35-15
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-35-10AmendedAccounting Standards Update No. 2015-1006/12/2015
310-30-35-13AmendedAccounting Standards Update No. 2010-1804/29/2010
310-30-40-1SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-40-1AmendedAccounting Standards Update No. 2010-1804/29/2010
310-30-40-2SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-40-2AddedAccounting Standards Update No. 2010-1804/29/2010
310-30-45-1SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-50-1 through 50-3
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-55-1 through 55-29
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-60-1 through 60-3
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-30-60-1AmendedAccounting Standards Update No. 2009-1612/23/2009
310-30-60-2AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T23:26:25.419Z to 2026-09-09T23:26:25.419Z Record version: sha256:085abeaaf70abe1152c348172afcc33f65ddf4576fa08d7340a857820aed4aa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/30/#05-overview-and-background) SEC content: no ##### [310-30-05-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:25.419Z to 2026-09-09T23:26:25.419Z Record version: sha256:416445143416c63818c283ad099b4588076b191b072b4fd2ffaa38b0f956ce8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-05-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:25.419Z to 2026-09-09T23:26:25.419Z Record version: sha256:fb15ce008b407f1f58a0af203694cf4dc15221724859377d9b3ef0ac6dbc91a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-05-3](https://asc.understandingaccounting.org/asc/310/30/#310-30-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:25.419Z to 2026-09-09T23:26:25.419Z Record version: sha256:c280910d0cae887c223f7c70726399c81722c50af4490f868825391b82215f4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:8e56c041a4e17f6ae361646d1d8fdac0504baaf3f6e0be901acdb85f307c8377 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/30/#15-scope-and-scope-exceptions) SEC content: no ##### [310-30-15-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:677d4bab47f84c6f784f07fbc2f0da92f45eaa4069166a2541e69f24b9eff476 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:05abe7d05418063ace1e7e34d03b22c28769491098cecc468e3bbef4983b3fcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-3](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:7704a62f068f115e1ef0c27d9d479c3826395ed92b1e275a15361e9b1e0e8921 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-4](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:b1092f37a9d3f15d2d9bb1464db194606ea458382e50250f2db742df2a0fe3de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-5](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:d328526d7599e7827dc8f70b3692ebb584eb79fbbad3b3bd3c1a127283f41f2c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-6](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:f54772362253c736f4b7c0ba1f311d13ff18a07603e20412347b3a07a4a0ac0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-7](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:dbd2fab4af6549597400a8122fd5b16818bd5b519e631f3f82f18dc658f399f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-8](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:12a66f6dda0ff66d5f58f9a40eaa81ccec0dd77f74a3d8a85f35b49d0824195f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-9](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:9a75e124163d7dfa6521edc80fc18081cf85bc42fd555632f721026cdb0f17a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-15-10](https://asc.understandingaccounting.org/asc/310/30/#310-30-15-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:28.199Z to 2026-09-09T23:26:28.199Z Record version: sha256:bd895ec7a713363a6b6dc29b0d12f90414aa87b302568366df263c2ab54e8149 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:33.721Z to 2026-09-09T23:26:33.721Z Record version: sha256:0fd96598371f6d02ffa953af77a92ef5df0ac694b7ed9792d41855fca1e48169 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/30/#25-recognition) SEC content: no ##### [310-30-25-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:33.721Z to 2026-09-09T23:26:33.721Z Record version: sha256:043ea402afaeae72696b68650ba5d6304cfd9d1fea3e5d9c4ee3a5bdb5e8eb9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-25-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:33.721Z to 2026-09-09T23:26:33.721Z Record version: sha256:cd7574b580f7048d363666f62215a06e7dc5554250a92e3df38de72455d08669 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:26:37.253Z to 2026-09-09T23:26:37.253Z Record version: sha256:a5a679bd802449818bbf4dbeb9d553b6cdae138f4c18d8ecea54931231ce1152 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/30/#30-initial-measurement) SEC content: no ##### [310-30-30-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:37.253Z to 2026-09-09T23:26:37.253Z Record version: sha256:efcae20fe5903b909ecd613c9ad02bf7eff6bfc50826bdf4cfa12740c708adc7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-30-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:37.253Z to 2026-09-09T23:26:37.253Z Record version: sha256:e9c13f77ea1f76bf5d4b8af88ef3c5af976fc0bfbf5cef7a3f1f7c555dcc5923 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:cf3d2064feeaa2d96f19bd3883d69224260404d14b0be78cd197334589846896 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/30/#35-subsequent-measurement) SEC content: no ##### [310-30-35-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:f69456a23172c9c935de8f629b12e7bada97f351a3c9cc15c1b02505a6aa12b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:a9fb650bf61484645cc66e0891e5ce2a0a0be24575b267628ffd759c5c87de6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-3](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:8e4827cb00b174c5690a6d2b46a5fe8516984f6f369d7f72278ab13ba704fce0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-4](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:0e6376319da501289cdb686516779c3f84f8ad928b93ba07d05d1597c3a79f47 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [310-30-35-5](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:773fc67054a078869b00f966b13a34a45d096371df794839b320a738f40bf9c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-6](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:58bba2947976d67278027a5340634315a85b0f58d9c3604796675d7eee947692 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-7](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:014d7e538a57e4a360d021844b34713bc248c351a5b4727244f4d49214560dba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-8](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:5d47d1a77339640618d49c025f04ff088f7f3cbdec655288689c02363f6706ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-9](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:e434b498e6a76400e9bb03a531ca34c6bd4c146da1ebdb30607bf9bf1175c71e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-10](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:314341c18dc17ca22d9fcf0dd5d5ef29a61ba94483768ab91cc705a610c5cb2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-11](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:450603455303a8c0759f0b3d1120ffdb228526981447e51eedd2adb6f0f65e57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-12](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:7744a3c5e1e99e8741241090aaf16d108494e38bbe042d072eb33b643ec0d7f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-13](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:d2fad6dc10d650edf6bba2d80f2b779cbd366b36f7670050dd1133b50fbf1dad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-14](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:4d9725d23b189f64aaf02289a8873005162a530ebad35cf49582cee8f1a65211 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-35-15](https://asc.understandingaccounting.org/asc/310/30/#310-30-35-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:40.479Z to 2026-09-09T23:26:40.479Z Record version: sha256:b06c63ffee447cba0622c77967a96a9e257d14cd215a3f4bb50d67a05eb290e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:43.850Z to 2026-09-09T23:26:43.850Z Record version: sha256:4da5e1ef56ba81e44d9363e5eb0bf1c67ee24284e8cc9b9025784a1640c285b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/30/#40-derecognition) SEC content: no ##### [310-30-40-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:43.850Z to 2026-09-09T23:26:43.850Z Record version: sha256:dc5ff87cf5e9f6e7c91b96435f2b9a8f37819c16e25428409e372d99778881bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-40-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:43.850Z to 2026-09-09T23:26:43.850Z Record version: sha256:588e4f23679dafc28e62ed940709c1158a2f2f07b3bba2fd0e46b17acc304159 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:47.071Z to 2026-09-09T23:26:47.071Z Record version: sha256:8ecf9e9dbb696b042dd0ef8a2bd86464bc4794d5703722b5b70615db130b99d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/30/#45-other-presentation-matters) SEC content: no ##### [310-30-45-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:47.071Z to 2026-09-09T23:26:47.071Z Record version: sha256:a4cafa63f0544888c835cc2f070c35af9088a08bc1890f28c5663107aaa068bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:48.967Z to 2026-09-09T23:26:48.967Z Record version: sha256:e07b800d14620a469024188ce065a5b48e8940655b5a638ef7d934ba2c691a16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/30/#50-disclosure) SEC content: no ##### [310-30-50-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:48.967Z to 2026-09-09T23:26:48.967Z Record version: sha256:3b73c911843d58178add58bfde11c1480d20a04dca353b7945088d8506fe7976 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-50-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:48.967Z to 2026-09-09T23:26:48.967Z Record version: sha256:244bc37d2a149399b978d1ce7eeda7ce6755cd6a56693419a870b2db5a867903 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-50-3](https://asc.understandingaccounting.org/asc/310/30/#310-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:48.967Z to 2026-09-09T23:26:48.967Z Record version: sha256:ca866d8c549fa7a55d94b87f20b72bbcfe0d7d110eb4028c486b0f19d289e4be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:af7eede34312eda5440153814aaa2d01e56410f5495b34130131dc0af9819412 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/30/#55-implementation-guidance-and-illustrations) SEC content: no ##### [310-30-55-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:73fd12ac92ad0e260494981151ca31e196b1af3de4023c920205148afa1c254b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:6019a9a717a23947992e1ef70e6f92a58c46a676660c55141429db1efb3f3225 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-3](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:9a04ed03487e341a5aa96553f4028311afe48068831a05ae057c3755c1a33eb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-4](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:0842d9678e6b78a68a9315721eb62248ff102a2fe5950d88bad74c6e2f26b091 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-5](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:99563a35838ce64d6336e48d67062ed7094ae94a3eed6c8c1c56881dec0d2339 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-6](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:75283f7289e04cac2763ceeeec0b2285df58990fdb01f3143ddc0f07628510fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-7](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:cd96d87d370977b220c1880a8e933962882dc9c9fbf4f71ce18e3a65e9e2568c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-8](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:3233e07763c02db84c534b05aa9438e52573e698acdbbbe33c88b990517637e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-9](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:c3d41d8b6a58d5d88cc9304fa3e64e2eabae6e7a8c61941251888363c95f47e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-10](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:64a19ad128f331345e5c51bc9181ef10f3d0037ee98d2c2d0dc645d015d3917a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-10A](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-10A) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:b76a3a5a6ab82e17762dd2fc8e5c65b762f1c79501150b40cf6aa791e05073c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-11](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:d8cba0b15235def50e23f883bbfb879488df1970ac239f91294f9a4731272de1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-11A](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-11A) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:e4c04032195ee0126a75f0e77a22538e739fdaba52c069b610ede57cec0a60b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-12](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:4fbb6f6ca21669e1f5f66fded37ae4ee460dd177ed24731c2676b2fd43074724 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-13](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:38a59efec4cbf6f237bb2a3cb3fb25be24863ce328147441b50f071fd4a11422 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-14](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:099cbfe213a38641b0b93fc967dad7b02d534aee303f371b170ebf8376474a16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-15](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:fd5c97be88314fe0ef96bc8e41266d869ff432f5f662a3eeeacedb8acf8d1a73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-16](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:0c2072c150a2edb71dac21f66a73e8178cb564c1ec6610a98372a1d69a0cd5b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-17](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:8819654cb7c5491067bcb5a792c17017d17809aa8e0281cb36a5a63a91bf9bf0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-18](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:1423a4e414ebfd176954e335434664f3a04453af703027542bce0f8aabb3c046 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-19](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:00283f4903b44360c4fcd9acde8a652958aa1bc584ec15a6dd7f5ef5b50be15a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-20](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:901b5dd02f85a555a4b3dae138e2fad6c7359e6fdf0d3dd2a6d5309d97cd90b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-21](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:a1015a0bf6e6369f04d79cb3907662d021b6cc9eadff94378b111531563a5ded Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-22](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:df22890ae6c482c14dc219a1e0ad70c3fcc25e1b4c4774fef2aebe75a9387d86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-23](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:952de8793a27248877e6124764cef6b3035219eca6d844329ef8bd76cc9365ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-24](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:b4b0e5102e26e8a8aa5c4856437133fb10b4ec3517acc2b6842738bb99620945 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-25](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:7146c5465a28d223d5e62e476dc873d03d6295c56864ebd18fed54fa8609c1d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-26](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:938ece417678f335252d496c672780dd43e42b510724628073272554b06aa371 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-27](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:56b188a8c0adc96c8a8b4854deecd28a74f0ba1404a4ce61efe5ede87b6039e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-28](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:299b0df32ee1c8b48dcb1c2e230cfb350c77ad39a2fe4c888dc6b0aa69b139d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-55-29](https://asc.understandingaccounting.org/asc/310/30/#310-30-55-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:51.406Z to 2026-09-09T23:26:51.406Z Record version: sha256:308adde45f5b72e89b99b4d540ddb76c5ab3ebf8a73f1e5ba10a37e6843e591d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:26:55.180Z to 2026-09-09T23:26:55.180Z Record version: sha256:f20a103aa381053aa82e71a2bb5261604d99c6e5d448983f2788d68eb96d6b8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-30-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/310/30/#60-relationships) SEC content: no ##### [310-30-60-1](https://asc.understandingaccounting.org/asc/310/30/#310-30-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:55.180Z to 2026-09-09T23:26:55.180Z Record version: sha256:fe5e845680dc41c5f108ff75c4dc24991aa22aec39f847f9a68ca9d2a2ce94db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-60-2](https://asc.understandingaccounting.org/asc/310/30/#310-30-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:55.180Z to 2026-09-09T23:26:55.180Z Record version: sha256:7d61a61a966e538542ef907bf99f22f8de82652cb12b897328c132ce10b6f78e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-30-60-3](https://asc.understandingaccounting.org/asc/310/30/#310-30-60-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:26:55.180Z to 2026-09-09T23:26:55.180Z Record version: sha256:bb8cf7ff15dde3b0e9db090bd9bc66718d618adfc09e9163ca63154486da7e7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:27:02.037Z to 2026-09-09T23:27:46.251Z Record version: sha256:031029a4d64da6e352ae9ca7bd7fbb691c82789802b2631db2f5265465f19495 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40: Receivables — Troubled Debt Restructurings by Creditors ### Machine-generated study aids ```json { "summary": "ASC 310-40 formerly contained the creditor's accounting for troubled debt restructurings (TDRs) — the definition of a TDR, measurement of impairment on restructured loans, accounting for assets or equity interests received in satisfaction of a receivable, and TDR-specific disclosures. Every operative paragraph has been superseded, principally by ASU 2022-02 (which eliminated the TDR model for creditors that have adopted ASC 326), with earlier deletions by ASU 2016-13 and ASU 2014-09. The subtopic is now an empty shell: creditors account for modifications to borrowers experiencing financial difficulty under ASC 326 and ASC 310-10 instead.", "key_points": [ "All recognition, measurement, derecognition, and disclosure paragraphs in 310-40 (Sections 05, 10, 15, 25, 30, 35, 40, 50, and 55) are marked 'superseded,' so the subtopic imposes no current requirements.", "ASU 2022-02 eliminated the TDR accounting model for creditors and superseded the bulk of 310-40, including 310-40-15-1 through 15-20 (scope), 310-40-25-1 and 25-2 (recognition), 310-40-30-1 (initial measurement), 310-40-35-1 through 35-12, and 310-40-50-1 and 50-1A (disclosure).", "ASU 2016-13 (CECL) had already superseded the impairment-measurement paragraphs 310-40-35-8 and 35-9 and disclosure paragraphs 310-40-50-2 through 50-4 and 50-6.", "ASU 2014-09 (Revenue from Contracts with Customers) superseded 310-40-40-6A and 40-7 and the related implementation guidance at 310-40-55-11 and 55-12 on assets received in satisfaction of a receivable.", "The transition paragraphs in Section 65 (310-40-65-1, 65-2, and 65-3), tied to ASUs 2011-02, 2014-04, and 2014-14, were themselves superseded after their transition periods ended in 2013 and 2017.", "Creditors now evaluate modifications to receivables from borrowers experiencing financial difficulty under Topic 326 (expected credit losses), with enhanced modification and vintage disclosures, rather than under a separate TDR framework." ], "categories": [ "Financial instruments", "Impairment", "Disclosure", "Transition and effective dates" ], "audience_level": "intermediate", "student_note": "Know that creditor TDR accounting is dead law after ASU 2022-02 — citing 310-40 for a live rule is the classic mistake, though older textbooks and exam questions still reference it. Modifications to loans of borrowers in financial difficulty now run through the CECL allowance in Topic 326 plus the new modification and vintage disclosures.", "related_topics": [ "326-20", "310-10", "470-60", "326-30", "606-10", "860-20" ], "key_concepts": [ "troubled debt restructuring", "superseded guidance", "loan modification", "borrower experiencing financial difficulty", "current expected credit losses", "creditor accounting", "concession", "foreclosure" ] } ``` Source downloaded (UTC): 2026-09-09T23:27:02.037Z to 2026-09-09T23:27:02.037Z Record version: sha256:575783dcc1b2d5bf205f8be656cb6a2004e173c15123e81d9de0222fe0d8903e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/40/#00-status) SEC content: no ##### [310-40-00-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:02.037Z to 2026-09-09T23:27:02.037Z Record version: sha256:f046aa8b62bfcbcd92958894273e2d2e684da049c5675d7e795f89316d462693 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Amortized Cost BasisSupersededAccounting Standards Update No. 2022-0203/31/2022
Amortized Cost BasisAddedAccounting Standards Update No. 2016-1306/16/2016
Carrying AmountSupersededAccounting Standards Update No. 2022-0203/31/2022
ContractSupersededAccounting Standards Update No. 2022-0203/31/2022
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
DebtSupersededAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateSupersededAccounting Standards Update No. 2022-0203/31/2022
Effective Interest RateAmendedAccounting Standards Update No. 2016-1912/14/2016
Effective Interest RateAmendedAccounting Standards Update No. 2016-1306/16/2016
Fair Value (2nd def.)SupersededAccounting Standards Update No. 2022-0203/31/2022
Financial AssetSupersededAccounting Standards Update No. 2022-0203/31/2022
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (2nd def.)AddedAccounting Standards Update No. 2016-1912/14/2016
Financing ReceivableSupersededAccounting Standards Update No. 2022-0203/31/2022
Financing ReceivableAddedAccounting Standards Update No. 2010-2007/21/2010
LeaseSupersededAccounting Standards Update No. 2022-0203/31/2022
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Lease ModificationSupersededAccounting Standards Update No. 2022-0203/31/2022
Lease ModificationAddedAccounting Standards Update No. 2016-0202/25/2016
Market ParticipantsSupersededAccounting Standards Update No. 2022-0203/31/2022
Not-for-Profit EntitySupersededAccounting Standards Update No. 2022-0203/31/2022
Not-for-Profit EntityAddedAccounting Standards Update No. 2014-0401/17/2014
Orderly TransactionSupersededAccounting Standards Update No. 2022-0203/31/2022
Probable (2nd def.)SupersededAccounting Standards Update No. 2022-0203/31/2022
ProbableSupersededAccounting Standards Update No. 2016-1306/16/2016
Public Business EntitySupersededAccounting Standards Update No. 2022-0203/31/2022
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Public Business EntityAddedAccounting Standards Update No. 2014-0401/17/2014
Purchased Financial Assets with Credit DeteriorationSupersededAccounting Standards Update No. 2022-0203/31/2022
Purchased Financial Assets with Credit DeteriorationAmendedAccounting Standards Update No. 2016-1912/14/2016
Purchased Financial Assets with Credit DeteriorationAddedAccounting Standards Update No. 2016-1306/16/2016
Recorded InvestmentSupersededAccounting Standards Update No. 2022-0203/31/2022
Recorded InvestmentAmendedAccounting Standards Update No. 2015-1006/12/2015
Recorded Investment in the ReceivableSupersededAccounting Standards Update No. 2016-1306/16/2016
Related PartiesSupersededAccounting Standards Update No. 2022-0203/31/2022
Security (2nd def.)SupersededAccounting Standards Update No. 2022-0203/31/2022
Time of RestructuringSupersededAccounting Standards Update No. 2022-0203/31/2022
Troubled Debt RestructuringSupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-05-1SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-10-1SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-10-1AmendedAccounting Standards Update No. 2016-1912/14/2016
310-40-10-2SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-15-1 through 15-20
SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-15-4AAddedAccounting Standards Update No. 2016-1912/14/2016
310-40-15-8AAddedAccounting Standards Update No. 2011-0204/05/2011
310-40-15-9AmendedAccounting Standards Update No. 2016-1912/14/2016
310-40-15-11AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-15-11AmendedAccounting Standards Update No. 2016-0202/25/2016
310-40-15-11AmendedAccounting Standards Update No. 2010-1804/29/2010
310-40-15-12AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-15-13 through 15-20
AddedAccounting Standards Update No. 2011-0204/05/2011
310-40-25-1SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-25-2SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-25-2AmendedAccounting Standards Update No. 2016-1912/14/2016
310-40-25-2AmendedAccounting Standards Update No. 2015-0202/18/2015
310-40-30-1SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-35-1 through 35-12
SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-35-2AmendedAccounting Standards Update No. 2016-1912/14/2016
310-40-35-2AmendedAccounting Standards Update No. 2012-0410/01/2012
310-40-35-6AmendedAccounting Standards Update No. 2012-0410/01/2012
310-40-35-7AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-35-8SupersededAccounting Standards Update No. 2016-1306/16/2016
310-40-35-9SupersededAccounting Standards Update No. 2016-1306/16/2016
310-40-35-10 through 35-12
AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-40-1 through 40-10
SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-40-1AmendedAccounting Standards Update No. 2016-1912/14/2016
310-40-40-3AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-40-6AmendedAccounting Standards Update No. 2014-1408/08/2014
310-40-40-6AmendedAccounting Standards Update No. 2014-0905/28/2014
310-40-40-6AmendedAccounting Standards Update No. 2014-0401/17/2014
310-40-40-6ASupersededAccounting Standards Update No. 2014-0905/28/2014
310-40-40-7SupersededAccounting Standards Update No. 2014-0905/28/2014
310-40-40-7AAddedAccounting Standards Update No. 2014-1408/08/2014
310-40-40-7BAddedAccounting Standards Update No. 2014-1408/08/2014
310-40-50-1 through 50-7
SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-50-1AAddedAccounting Standards Update No. 2010-2007/21/2010
310-40-50-2 through 50-4
SupersededAccounting Standards Update No. 2016-1306/16/2016
310-40-50-5AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-50-5AmendedAccounting Standards Update No. 2010-2007/21/2010
310-40-50-6SupersededAccounting Standards Update No. 2016-1306/16/2016
310-40-50-6AmendedAccounting Standards Update No. 2010-2007/21/2010
310-40-55-1 through 55-25
SupersededAccounting Standards Update No. 2022-0203/31/2022
310-40-55-1AmendedAccounting Standards Update No. 2016-1912/14/2016
310-40-55-1AmendedAccounting Standards Update No. 2014-0401/17/2014
310-40-55-7AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-55-9AmendedAccounting Standards Update No. 2009-1612/23/2009
310-40-55-10AmendedAccounting Standards Update No. 2009-1612/23/2009
310-40-55-10AAddedAccounting Standards Update No. 2014-0401/17/2014
310-40-55-11SupersededAccounting Standards Update No. 2014-0905/28/2014
310-40-55-12SupersededAccounting Standards Update No. 2014-0905/28/2014
310-40-55-13 through 55-15
AmendedAccounting Standards Update No. 2016-1306/16/2016
310-40-55-14AmendedAccounting Standards Update No. 2019-0404/25/2019
310-40-55-16 through 55-25
AddedAccounting Standards Update No. 2011-0204/05/2011
310-40-65-1AddedAccounting Standards Update No. 2011-0204/05/2011
310-40-65-2AddedAccounting Standards Update No. 2014-0401/17/2014
310-40-65-3AddedAccounting Standards Update No. 2014-1408/08/2014
Source downloaded (UTC): 2026-09-09T23:27:05.881Z to 2026-09-09T23:27:05.881Z Record version: sha256:744119e6aadcf7118f2cd640c2f5ef2862e2926260fe944d17655b35c53d6450 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/40/#05-overview-and-background) SEC content: no ##### [310-40-05-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:05.881Z to 2026-09-09T23:27:05.881Z Record version: sha256:6fd2c88a7d17fba6455238edb43866cfa7139a92541cecd8db3a5dda779589da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:09.820Z to 2026-09-09T23:27:09.820Z Record version: sha256:4153dc12ba34b5c1dd461f32b1c9dc5f1b5ed8494f090b56d4356f1aa618956e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/310/40/#10-objectives) SEC content: no ##### [310-40-10-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-10-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:09.820Z to 2026-09-09T23:27:09.820Z Record version: sha256:2bc94ceb8ef826648b80886eca62e4a9c1bde80a27fa576a9a913055266f0ce0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-10-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-10-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:09.820Z to 2026-09-09T23:27:09.820Z Record version: sha256:b7add928c633e153ad5fcf94baa4b3d085c963f60eb5d96081d20fc8143fdd6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:ba22deaeaab3d56eaf899e29104c498fe6fae00747a9e44d958b31a5d01c5b2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/40/#15-scope-and-scope-exceptions) SEC content: no ##### [310-40-15-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:8f5c7e3dab9ecc4000735870c2db0c42b329793dc7221dbbd550f2f105a4098e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:ce4251af690e823345caf6f2b51eb4d41363d5dff831b487972382f988fbd389 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-3](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:221e2fc0c9ecf5c843652125eac73191407854e26168cfadb458b39c01508ee8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-4](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:b1a1ac50a287f950fc803460e2a1de825b2f3b5c7d9b82976f51340115dec3bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-4A](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-4A) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:0058f85dc66c724376648d83dab3da682c4ce51592b2cc5fbea2509164a6dd31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-5](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:fe6885184386b2b345ac22e54ef9a8cd102a171a0f2ee256dba7862e92258452 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-6](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:204592b124cf5a155c4ca848baadf5b60087d333763799fb4e1d574d2756b588 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-7](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:9bdc41ebf6f611d8f5fb3e655a17deefa58f5eb404ef42b8431c9fab85216cf2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-8](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:466d34767200700aaed0093cd80046104cf4fd00427e93f02df854d373983964 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-8A](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:ac3871c1b9812c31d145c0811259d94e52bfae04b6ad6b769e06b9f7f5f47895 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-9](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:bf2684929f0d3d0faeefaabee5504880e4f9521e88ec1ec902231fc81bd7b53a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-10](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:2807fd7d013c04bf63bb8271ed0ca703f2bccfce1e45e4f6789f3c1d60a1f6ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-11](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:1541d3ec14c4959f7cd7b7febdb272bb464673f8a5b8e75cbc8fc0e5e559421e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-12](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:5dca5c5118a9babbbb9152a1fcbf924aee54fee5a86a95c431db55283749076f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-13](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:130971721c4d35ce964315447a6ae9789e0245499d981b9f9757e1f3c0c72f69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-14](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:8ae156dea1bad93fbed252d364e795b2206c7e35c5e4195448e021639e472554 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-15](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:57bb45c9691bbba22160467c258cff216b5d93bf30501edc5d67d0e8f0751a05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-16](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:cccfcf14d0b86fad009d724077c044e795e54fadb11a4ddb7b5ad41e10cb081b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-17](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:6dd221ea955ec5d11b718f3f43729f7cca5883ce12791a367a699adcaaacfbfe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-18](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:805953fb8a74e2be731967b10b9ecf1304777a15c5ba2317b29a7eb9f4b8ae42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-19](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:4873a0a7478fdb541867d3d1463b1c12b9c36feee4e489d56cbf5c39456643b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-15-20](https://asc.understandingaccounting.org/asc/310/40/#310-40-15-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:12.520Z to 2026-09-09T23:27:12.520Z Record version: sha256:aa3a01473c1f45951eb6ec6052612b685c696e52b3a977b610b54d92b4f3e1c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:17.653Z to 2026-09-09T23:27:17.653Z Record version: sha256:fed88109595e719f1f2177b7eca52fabb72d5aa705894b4fd2d6ca57c587c2a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/40/#25-recognition) SEC content: no ##### [310-40-25-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:17.653Z to 2026-09-09T23:27:17.653Z Record version: sha256:429b3b5388b169fb394be9245e4e1b2b94f161a5c73510bd76bf5e9c30d5b14d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-25-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:17.653Z to 2026-09-09T23:27:17.653Z Record version: sha256:c6d956618ae0376017bbf514ef698d983ba3be3819e8350f2d26af62050e8a7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:21.687Z to 2026-09-09T23:27:21.687Z Record version: sha256:cbc067bfe8306b82468b07ee869d8cd1b1a2c40f974a66c9ee99e120799290b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/40/#30-initial-measurement) SEC content: no ##### [310-40-30-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:21.687Z to 2026-09-09T23:27:21.687Z Record version: sha256:4fc774304d2e31fdfa0458131c5526ae824b137139d7b19339416ade510a8867 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:a1926004f51dee2b458ee971791efb158d9c3856bab2a53eee808b4165ff093c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/40/#35-subsequent-measurement) SEC content: no ##### [310-40-35-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:e2f31b732d77bb425a7b0127a15f3f03f502584845768dfe46c848d7436fcd1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:c327747809f2a384b1930541af04fde2b4fcbf67b380b0abc1e1c20a815625c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-3](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:9322364ca027a165cde7f038e76ea60fb3413547e4573a658a98e103a8728cc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [310-40-35-4](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:0a87162ee0b204dac4ff1a67c198be7a2509f28f6c677ec797a863b18cd2523b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-5](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:c7cc00ec5e50cb62f5e1cff1e0410bacb7f885bdf178f465be4218c1eb60218c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-6](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:da874fe26a28e3e47dc3503d1dacf2c9cfe938a5ac48d811b91829c0a8e41722 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-7](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:452141fd820d4382a539b545791ca2b18dcd7f81c5bc7f18e3201aa849270a31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-8](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:8933c77f43babbb59f21c6404e8e6f7f0f7530673aa3556b3ec8489881f635bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-40-35-9](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:e8495d423b4653bc9900270638338461e4975424fd4bbade3e93f2933fc7bd09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-40-35-10](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:a3e575f3e09ab0ccbb2f95d9bcf6fa534b3b59ca34ed5d9c200907724137d230 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-11](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:c9e3e7ef77e7ebdd80049c6da849dadc7510001db938a76d64df5a89daf5537c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-35-12](https://asc.understandingaccounting.org/asc/310/40/#310-40-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:23.897Z to 2026-09-09T23:27:23.897Z Record version: sha256:659036f0e9d206fd2a75c71b82fe1e650cf3f61ad89c3fd2496eb303793304b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:ec130001dca3c966c4214b36171755125ebd085dc48a6fd12df3f2840ee29156 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/40/#40-derecognition) SEC content: no ##### [310-40-40-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:f1699cb2fa2904eee8113a4f36882b128f117e8f61a2ec048eed3679a07cf5a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:f1c0c1602c30567d426d2510e3cb155f32ac18e07c37a691d1e7e1d76927c488 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-3](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:8744738c16f2585f7b088d76b18d7a0573e0175fb4077ffe7d54a1cd5f2993bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-4](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:ba69763b270e2946933094a4a34eddfb6c0c437a2f8e7832ad961b60e92cd107 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-5](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:8cf1517eeefedab12cd740b65bc19b0cc611ddb8b90717203de7629a08d4e320 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-6](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:ae2efed03338f2b6a8d482417934006d1f8e78606e35abaacc4ae22577691bfc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-6A](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-6A) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:38524aa907710286398262faa0894d986e311aa267bb48ed5b2f977ed2d3ed1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-40-40-7](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:c287237105a3185b1398bee63bbbb5b3ab913c37a892ca33a688e59ca978d094 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-40-40-7A](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-7A) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:f5ca9ed1a193111a22aacfd629d4af87dcd3fcfc0bcfdcdf189b9dc78e96c520 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-7B](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-7B) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:f797920bc1eb188de3e97db612bfc4e51977576c63c1e838f61d849ecde42b62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-8](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:a49fda77ed47c45f6a23b88ce53e5bb284d5152b722c35779782a3c0b11e47b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-8A](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-8A) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:b8b7594b69eab7f9e0161f6182357b736dffa7a80b856e2da96dde81d93a52d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-9](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:faa1702affb6d6243411b998d4d164ed630e72638b5cff75ff264fff82eddbc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-40-10](https://asc.understandingaccounting.org/asc/310/40/#310-40-40-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:26.256Z to 2026-09-09T23:27:26.256Z Record version: sha256:699590c5e3c4b618ed2cd8ec358ddf4765e8062ee04e41c1f1dcdffce979574f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:f370ecab0d844c706b9c3ba95824c76cad84229d28ed8295c15eb352f50744b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/40/#50-disclosure) SEC content: no ##### [310-40-50-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:ef4c7f47896c4702af357ef6f0da78370c2bfb9a540c265385451052e74d5a32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-50-1A](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:10ff5435b85dc38d189e9f955f9dd2abfff33b3fbfa96905f0ab543ae49f211c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-50-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:bf6d691d2c209507b68bc7c230c119d4d05e3eeb583227325eb96af86668be16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-40-50-3](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:638437ab944909514198b5f2f673e16b05addb7213d1275228a5cc5296dd708a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-40-50-4](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:f5b946c2759a40829e93e8a42d5ccbc4b80a03b590979740bd65cf68feadb3a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-40-50-5](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:8a3faeb052df8ad13f24cd65f827bc03a915bdb16e470632449e989fef56f966 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-50-6](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:d4cfb634b3f4fdf29812ea030a77726ba23918cbeef31af359f8b8dab2fda2ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-40-50-7](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:29.704Z to 2026-09-09T23:27:29.704Z Record version: sha256:e8db62ba4c5d0aeeca8719e12654085256c4573fb9e09f46c3f23afb17dceea7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:0b3768b91bc967536b2c67e11a7d0091e0bb85a757ebb2ad0467a5698ec2e820 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/40/#55-implementation-guidance-and-illustrations) SEC content: no ##### [310-40-55-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:8bae465a8442dcaf80f2db844792359b2f1e91932bcf8ad031943ee37b19d066 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:eb27db1ef4bfa6c4659d795e0d6f6a6e5f78aa30dff3ab30d3779fd109670058 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-3](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:7deddb0618ccc98df220dc4af298eaf9030541fd6a44ba67746d1d1d9f43c1e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-4](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:92224d5acff28a957eb63bb68913848ef66ef6438bd9f8d857d7be510c8a517e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-5](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:7ed8d4e4c8c793a0cc512ead6c9388e20afdb96e0460d6803c5e1c92b640b447 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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[Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-7](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:fe185e6bec9c740b84c1154df89a9dea2bdca082add125eae91c9d75f7bd29b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-8](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:35ae3551716af92cd791fe25aa0581cf9ee6c4b114a0687af174569f0f25a2a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-9](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:f38a4af04747a7976feb5b20098d0fcad2ae70a100266a981af6d8e6c9e9e794 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-10](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:8eefa7617b950dbd173257acbef965f1c52a24de35ca391d3a75272a5130a633 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-10A](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-10A) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:0966443fc5eb00b66682e43944d69a8aab2b3d96561fab08ca32030cffdce6ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-11](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:232399bdc82f3629d041b29f516fc0983a348c9ea1a0635fcd196f632a8d7c2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-40-55-12](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:675078419e38300e62fcee40cd1f721276c085c21594110fd0a36aa75a0bce03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-40-55-13](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:0c44ebe7107502d71e26be126d6a385d6fc7ec65d28b4884d88e0b1ea8d14b5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-14](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:4fd1aef689ebd18b284ca53817db990cea683e821a29c343885e519935e8f091 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-15](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:a28b100869d1a62beb6cd04f4d3c1adce75fa5f99792eb217eff590c2e5cf688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-16](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:9c4c855a2cd1e5fd809f9bee6d4a3b789ffb1e806fc0c31acaaa3da7bab016b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-17](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:50794feccad2d58ca0276ac79975b9e3a08c086effae0caf6039fe04a76ab737 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-18](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:8016b11fd91a6c534438cd1d771a8d500cd144a9f2c5d715ef0baeb8fa8c5663 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-19](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:d2259b5f4e182cb3114d4ecec99fcb3216785f41060bcbc3b67270eb3bb642fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-20](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:47d3969402c097b9a80225143553551e6afacb2c65da6e6d3d75bb4863d82b5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-21](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:9ebc7ac30b2a17c94635d62be75a2c51b66add36f7b5d1b7367facc5f58ab0d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-22](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:2f84473f8586e75d099ed178e855ca9665dad251bd67c5fb5d14c5bcf136887e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-23](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:6e15e86ec2a8a2af423145435cb87ba25206aa134795ed95f018590080705bed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-24](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:a301aef46e5d82b0b090dc75e2271e072d35c1f7567409b31822267f12df1097 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). ##### [310-40-55-25](https://asc.understandingaccounting.org/asc/310/40/#310-40-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:32.758Z to 2026-09-09T23:27:32.758Z Record version: sha256:7d242ec5ba8bd71d7d42a46dfc0be8b706cd7732ddf20d44cd5d372ad1f934df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2022-02](https://asc.understandingaccounting.org/updates/asu-2022-02/). Source downloaded (UTC): 2026-09-09T23:27:36.058Z to 2026-09-09T23:27:36.058Z Record version: sha256:37702151b3bb7751b0b8f003179472f0cbbfe1e5b4a74334aa118766330977e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/310/40/#65-transition-and-open-effective-date-information) SEC content: no ##### [310-40-65-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:36.058Z to 2026-09-09T23:27:36.058Z Record version: sha256:d6c557e820f9f8fafa29bb942d814db904f6027802e72558d4fa8d879980b425 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2011-02, _Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring_. ##### [310-40-65-2](https://asc.understandingaccounting.org/asc/310/40/#310-40-65-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:36.058Z to 2026-09-09T23:27:36.058Z Record version: sha256:6e8d314078f94cb63cd394ec43be6d357cbc61e81502d8baf47d653c45cfe961 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 10/26/2017 after the end of the transition period stated in Accounting Standards Update No. 2014-04, _Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure_. ##### [310-40-65-3](https://asc.understandingaccounting.org/asc/310/40/#310-40-65-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:36.058Z to 2026-09-09T23:27:36.058Z Record version: sha256:39dc4a5fe2400b27899c1191b9fe612e3cdf4724f8d4e8da5b51cef1bac652ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 10/26/2017 after the end of the transition period stated in Accounting Standards Update No. 2014-14, _Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure_. Source downloaded (UTC): 2026-09-09T23:27:42.384Z to 2026-09-09T23:27:42.384Z Record version: sha256:e97ba2ea21ced158ba87eb57e3ee719d4e34575ebae4cac2cd85d13ca258b053 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/40/#sec-50-disclosure) SEC content: yes #### Impaired Loans Restructured in a Troubled Debt Restructuring ##### [310-40-S50-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:42.384Z to 2026-09-09T23:27:42.384Z Record version: sha256:a460bf104de6ddefe10b0429318777811211067f7d9ab23a62deb489d9e49249 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [310-40-S99-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-S99-1), SEC Observer Comment: Applicability of the Disclosures Required by Topic 310 when a Loan is Restructured in a Troubled Debt Restructuring into Two or More Loans for SEC Staff views on disclosure related to the impact of restructuring a loan in a troubled debt restructuring into two (or more) loan agreements. Source downloaded (UTC): 2026-09-09T23:27:46.251Z to 2026-09-09T23:27:46.251Z Record version: sha256:8f0c585c118440e119dce04cf5cce2ab2bfe4062c8ead1930c6e48c8161ba72f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-40-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/310/40/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [310-40-S99-1](https://asc.understandingaccounting.org/asc/310/40/#310-40-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:46.251Z to 2026-09-09T23:27:46.251Z Record version: sha256:1dc1378f333228fd95ebbdd10c092b6c28b37301fa52bc6180ef939d2d8bfc1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SEC Observer Comment: Applicability of the Disclosures Required by Topic 310 when a Loan is Restructured in a Troubled Debt Restructuring into Two (or More) Loans. - Paragraph [310-40-50-5](https://asc.understandingaccounting.org/asc/310/40/#310-40-50-5) states that when a loan is restructured in a troubled debt restructuring into two (or more) loan agreements, the restructured loans should be considered separately when assessing the applicability of the disclosures in paragraphs [310-10-50-15(a) and (c)](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-15) in years after the restructuring because they are legally distinct from the original loan. The creditor would continue to base its measure of loan impairment on the contractual terms specified by the original loan agreement in accordance with paragraphs [310-10-35-20 through 35-30](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-20) . The SEC staff is concerned that disclosures of impaired loans after loans are restructured in troubled debt restructurings into multiple loan structures might, in some circumstances, imply that the quality of the loan portfolio had improved solely as a result of the troubled debt restructurings. Accordingly, the SEC staff believes that registrants should make clear to the users of the financial statements the impact of the multiple loan structures on the impaired loan disclosures. Source downloaded (UTC): 2026-09-09T23:27:49.582Z to 2026-09-09T23:28:04.502Z Record version: sha256:f02aa9c59434980d6d5a524e96ab4d168b9825cb9b9770abc970c8aebce3e00c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905: Receivables — Agriculture ### Machine-generated study aids ```json { "summary": "ASC 310-905 provides industry-specific guidance on receivables (loans, notes, and others) for agricultural entities, with dedicated Cooperatives—Patrons Subsections for patrons of agricultural cooperatives. Its core rules govern when a patron recognizes a patronage refund receivable and how a patron's unbilled receivable from products delivered to a cooperative is subsequently measured. Scope follows ASC 905-10-15.", "key_points": [ "Patrons recognize patronage refunds either when the related patronage occurs—if it is probable that a refund will be declared, confirming future events are expected, the amount is reasonably estimable, and the accrual can be made consistently year to year—or on notification by the distributing cooperative (310-905-25-3).", "Any accrual of a patronage refund must be based on the latest available reliable information (310-905-25-3).", "The accrual for patronage refunds is adjusted upon notification of an allocation by the cooperative (310-905-35-3).", "If indications exist that expected net proceeds will be less than cost, the patron's unbilled receivable is recorded at estimated net realizable value (310-905-35-1).", "Variances from the amount recorded as an unbilled receivable are recognized when reasonably determinable (310-905-35-1).", "Advances from a cooperative are financing devices treated as reductions of the patron's unbilled receivable and are not used as amounts for recording sales (310-905-35-2).", "Scope mirrors the Overall Agriculture Subtopic, with separate scope for the Cooperatives—Patrons Subsections (310-905-15-1; 310-905-15-2); certain recognition paragraphs were superseded by ASU 2014-09." ], "categories": [ "Recognition", "Subsequent measurement", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Exam traps here are (1) treating cooperative advances as sales revenue rather than reductions of the unbilled receivable, and (2) forgetting that a patron may accrue a patronage refund before notification only if all four conditions in 310-905-25-3(a) are met. Note that ASU 2014-09 superseded the old revenue-recognition paragraphs, so revenue questions go to ASC 606.", "related_topics": [ "905-10", "905-605", "606", "310-10", "905-330" ], "key_concepts": [ "patronage refund", "agricultural cooperative", "patron", "unbilled receivable", "net realizable value", "advances as financing device", "probable and reasonably estimable accrual" ] } ``` Source downloaded (UTC): 2026-09-09T23:27:49.582Z to 2026-09-09T23:27:49.582Z Record version: sha256:97b79b09bd5292c341625ee07220ad0f2ef007868b9874278f721465e85e1a7d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/905/#00-status) SEC content: no ##### [310-905-00-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:49.582Z to 2026-09-09T23:27:49.582Z Record version: sha256:c5e5cd4161db348243c0c22506ae5aacfe64013a76f9d541ac89ec00546ceeb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
CooperativesSupersededAccounting Standards Update No. 2014-0603/14/2014
Member of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
Net Realizable Value (2nd def.)AmendedAccounting Standards Update No. 2014-0603/14/2014
Nonmember of an Agricultural CooperativeAddedAccounting Standards Update No. 2014-0603/14/2014
PatronsAmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-05-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-25-1SupersededAccounting Standards Update No. 2014-0905/28/2014
905-310-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
905-310-25-2SupersededAccounting Standards Update No. 2014-0905/28/2014
905-310-25-3AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T23:27:52.896Z to 2026-09-09T23:27:52.896Z Record version: sha256:e03893fcea955c1cb094a2b007b4cf966e5766fb721795c7e81538108b32ac21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/905/#05-overview-and-background) SEC content: no ##### [310-905-05-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:52.896Z to 2026-09-09T23:27:52.896Z Record version: sha256:f515aa3b00da14692b5b5b5c420f2958613e07a46dffbc4a2b352b25f5d79eb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses accounting for receivables, including loans, notes, and others, for entities in the agricultural industry. The guidance for accounting for [patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") of [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.") is presented in the Cooperatives—Patrons Subsections. ### Cooperatives—Patrons ##### [310-905-05-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:52.896Z to 2026-09-09T23:27:52.896Z Record version: sha256:bf3041d9efde532f3d397c6dc1ef6c388069bdbb635c433ac3aa9025d21dcf0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—Patrons Subsections address accounting for receivables, including loans, notes, and others, for [patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") of [agricultural cooperatives](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association."). Source downloaded (UTC): 2026-09-09T23:27:56.481Z to 2026-09-09T23:27:56.481Z Record version: sha256:ec38f67a6caa5d5e720810a1da0f797844c2d972e8a9da07ab4cb6323c8ab3a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/905/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-905-15-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:56.481Z to 2026-09-09T23:27:56.481Z Record version: sha256:d69d58abc46db4e20e757b9d8baf1b3e5e438d8da75047445d1cde9f1db88b2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [General Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. ### Cooperatives—Patrons ##### [310-905-15-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:27:56.481Z to 2026-09-09T23:27:56.481Z Record version: sha256:7fb19863a8af6f6940c7502e92790852206c1860a31dea7533edcb83ec14fabc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Cooperatives—Patrons Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Cooperatives—Patrons Subsection](https://asc.understandingaccounting.org/asc/905/10/#15-scope-and-scope-exceptions) of Section 905-10-15. Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:121675179a4ad3e2720e8c1e584d2c005e1c9ab961fd9238497a71f87c4a6a53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/905/#25-recognition) SEC content: no ### Cooperatives—Patrons ##### [310-905-25-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:c802f62c3a807f38709a8c3354dda6e9486ecfdd14809eb6db2a5e3439073fca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-905-25-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:b8f8596aec8a96a0e73b88a3a732bd39150e87568d4b7b9164e12e0b2cb2c5eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Patronage Refunds ##### [310-905-25-3](https://asc.understandingaccounting.org/asc/310/905/#310-905-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:02.576Z to 2026-09-09T23:28:02.576Z Record version: sha256:ae47a8da02c221b307cd6ff0a2583ec3cf0e56925752d87711a81d3329d38e3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Patrons](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") shall recognize [patronage](https://asc.understandingaccounting.org/glossary/p/#patronage "The amount of business done with a cooperative by one of its patrons. Patronage is measured by either the quantity or value of commodities received from patrons by a marketing cooperative and the quantity or value of the goods and services sold to patrons by a supply cooperative.") refunds on either of the following occasions: 1. a When the related patronage occurs if all of the following are probable: 1. 1 A patronage refund applicable to the period will be declared. 2. 2 One or more future events confirming the receipt of a patronage refund are expected to occur. 3. 3 The amount of the refund can be reasonably estimated. 4. 4 The accrual can be consistently made from year to year. 2. b On notification by the distributing [agricultural cooperative](https://asc.understandingaccounting.org/glossary/a/#agricultural-cooperative "The Agricultural Marketing Act of 1929 defines a cooperative association as any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services. Provided, however, that such associations are operated for producers or purchasers and conform to one or both of the following requirements: No member of an agricultural cooperative association is allowed more than one vote because of the amount of stock or membership capital he may own therein. The association does not pay dividends on stock or membership capital in excess of 8 percent per year. In addition to meeting either of the requirements in this paragraph, the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers of an agricultural cooperative in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association."). The accrual shall be based on the latest available reliable information. Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:3b6a138e95085d965d64218a253d87e1078a465a07560a3e066d49a26e3cd955 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-905-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/905/#35-subsequent-measurement) SEC content: no ### Cooperatives—Patrons #### Deliveries to Marketing Cooperatives ##### [310-905-35-1](https://asc.understandingaccounting.org/asc/310/905/#310-905-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:f138d20cb82b8b749555f62d2ca1cdbb461dd4e5f0f51a49ce3da588dd87000f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If there are indications that the expected net proceeds will be less than cost, the [patron's](https://asc.understandingaccounting.org/glossary/p/#patrons "Any individual, trust, estate, partnership, corporation, or agricultural cooperative with or for whom a cooperative does business on a cooperative basis, whether a member of an agricultural cooperative or nonmember of an agricultural cooperative.") unbilled receivable shall be recorded at estimated [net realizable value](https://asc.understandingaccounting.org/glossary/n/#net-realizable-value "Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation."). Variances from the amount recorded as an unbilled receivable shall be recognized when reasonably determinable. #### Advances ##### [310-905-35-2](https://asc.understandingaccounting.org/asc/310/905/#310-905-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:7deed5221d92e4d882bdffbe4f59c0d04036aa62849387b70f47822067a46351 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Advances](https://asc.understandingaccounting.org/glossary/a/#advances "Generally used in marketing and pooling cooperatives to denote amounts paid to patrons before final settlement; for example, amounts paid to patrons on delivery of crops.") are financing devices and shall be treated as reductions in the patron's unbilled receivable and shall not be used as amounts for recording sales. #### Patronage Refunds ##### [310-905-35-3](https://asc.understandingaccounting.org/asc/310/905/#310-905-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:04.502Z to 2026-09-09T23:28:04.502Z Record version: sha256:4df2a2e2efd0b10255ee821c3e3e986d621a5bcfd888dad611f45cf695c6afa5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accrual for [patronage](https://asc.understandingaccounting.org/glossary/p/#patronage "The amount of business done with a cooperative by one of its patrons. Patronage is measured by either the quantity or value of commodities received from patrons by a marketing cooperative and the quantity or value of the goods and services sold to patrons by a supply cooperative.") refunds shall be adjusted on notification of an allocation by the cooperative. Source downloaded (UTC): 2026-09-09T23:28:06.186Z to 2026-09-09T23:28:18.985Z Record version: sha256:b12a41e367061753a1aea822a7d8772bf2fe820ae3adef078c3277e26fb408ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-910: Receivables — Contractors—Construction ### Machine-generated study aids ```json { "summary": "ASC 310-910 was the industry-specific guidance on receivables of construction contractors (classification and disclosure of contract receivables, retainage, and unbilled amounts). Every paragraph in the subtopic has been superseded — the presentation and disclosure paragraphs by ASU 2014-09 (the revenue standard) and the remainder by Maintenance Update No. 2019-01. As a result, the subtopic now contains no substantive guidance; contract asset, contract receivable, and retainage questions for contractors are addressed under ASC 606 (and ASC 326 for credit losses).", "key_points": [ "All content in this subtopic is superseded: 310-910-05-1, 15-1, 45-1, 50-3 and 50-4 by Maintenance Update No. 2019-01, and 310-910-45-2, 50-1 and 50-2 by Accounting Standards Update No. 2014-09.", "Because 310-910-45-2 (presentation) and 310-910-50-1 through 50-2 (disclosure) were removed by ASU 2014-09, contractors present and disclose contract balances — receivables, contract assets, contract liabilities, and retainage — under ASC 606-10-45 and 606-10-50.", "There is no longer any construction-contractor-specific receivables scope guidance (310-910-15-1 superseded), so the general receivables guidance in ASC 310 applies to contractor receivables.", "Measurement of expected credit losses on contractor receivables follows ASC 326-20 rather than any industry-specific rule in this subtopic.", "A reader should treat citations to 310-910 in older literature or textbooks as obsolete and redirect to ASC 606 and ASC 910." ], "categories": [ "Presentation", "Disclosure", "Transition and effective dates", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Know this subtopic mainly as a dead end: it is fully superseded, so any exam or research question about contractor receivables, unbilled amounts, or retainage should be answered from ASC 606 (contract assets/receivables) and ASC 326 (credit losses). The common mistake is citing legacy 310-910 or ASC 605-35 presentation rules that ASU 2014-09 eliminated.", "related_topics": [ "606", "910", "310", "326", "605" ], "key_concepts": [ "superseded guidance", "construction contractor receivables", "retainage", "contract asset", "contract receivable", "unbilled receivables", "industry-specific guidance" ] } ``` Source downloaded (UTC): 2026-09-09T23:28:06.186Z to 2026-09-09T23:28:06.186Z Record version: sha256:6cbb266aca6babf3b23f9e2a2d1b04fe9d19fa01d803bf54bb1bbbe91307b694 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-910-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/910/#00-status) SEC content: no ##### [310-910-00-1](https://asc.understandingaccounting.org/asc/310/910/#310-910-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:06.186Z to 2026-09-09T23:28:06.186Z Record version: sha256:f60b226969629bccd8b75f7bfd98a17f26ce3120b1943106b1ae70e9fdfaa6e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
910-310-05-1SupersededMaintenance Update No. 2019-01 (PDF)01/08/2019
910-310-15-1SupersededMaintenance Update No. 2019-01 (PDF)01/08/2019
910-310-45-1SupersededMaintenance Update No. 2019-01 (PDF)01/08/2019
910-310-45-2SupersededAccounting Standards Update No. 2014-0905/28/2014
910-310-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
910-310-50-2SupersededAccounting Standards Update No. 2014-0905/28/2014
910-310-50-3SupersededMaintenance Update No. 2019-01 (PDF)01/08/2019
910-310-50-4SupersededMaintenance Update No. 2019-01 (PDF)01/08/2019
Source downloaded (UTC): 2026-09-09T23:28:09.092Z to 2026-09-09T23:28:09.092Z Record version: sha256:c01788e0f9c210c0ef586fd445fb04dca06de9f5a140c02afc4f45b44b884106 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-910-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/910/#05-overview-and-background) SEC content: no ##### [310-910-05-1](https://asc.understandingaccounting.org/asc/310/910/#310-910-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:09.092Z to 2026-09-09T23:28:09.092Z Record version: sha256:a630f9bf8a767420da2107d0621d74e177d6596f77e880af52043c8b9237b346 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) Source downloaded (UTC): 2026-09-09T23:28:12.282Z to 2026-09-09T23:28:12.282Z Record version: sha256:331d3b0ca32b13000df08da8b81b69ae64801d7c4a874e08eb6ca70be6abb07b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-910-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/910/#15-scope-and-scope-exceptions) SEC content: no ##### [310-910-15-1](https://asc.understandingaccounting.org/asc/310/910/#310-910-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:12.282Z to 2026-09-09T23:28:12.282Z Record version: sha256:f803fcd5c9d18fa33adc5ff0c3e41a9b03fc2b9ca570a974fcc34ffe3583e844 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) Source downloaded (UTC): 2026-09-09T23:28:15.000Z to 2026-09-09T23:28:15.000Z Record version: sha256:93a2c7be681905925409bd8ea105f49c3e746ee33dd5fd140df386ff2b2df866 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-910-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/910/#45-other-presentation-matters) SEC content: no ##### [310-910-45-1](https://asc.understandingaccounting.org/asc/310/910/#310-910-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:15.000Z to 2026-09-09T23:28:15.000Z Record version: sha256:4dde54f0d787755ff2b2dae44775288a1fc308f80e43210c6c6e7f5d9dc5692e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) ##### [310-910-45-2](https://asc.understandingaccounting.org/asc/310/910/#310-910-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:15.000Z to 2026-09-09T23:28:15.000Z Record version: sha256:c2c3e0def28246e666b2f51d2612e362756ee17bd721447e16b7358ccd71c831 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:28:18.985Z to 2026-09-09T23:28:18.985Z Record version: sha256:827744ef31eb0d56a1b4a303061e7688dd7e859f0fbdcdf71bcfdff75c7663e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-910-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/910/#50-disclosure) SEC content: no ##### [310-910-50-1](https://asc.understandingaccounting.org/asc/310/910/#310-910-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:18.985Z to 2026-09-09T23:28:18.985Z Record version: sha256:f095444c0d99a99688cbc542afb7506b2ee48ad744bb901e2da51193c63918eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-910-50-2](https://asc.understandingaccounting.org/asc/310/910/#310-910-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:18.985Z to 2026-09-09T23:28:18.985Z Record version: sha256:9d544d0b24ae5204eff2a6315a5c08b3d6bf41fc2e2b10f9786e3e00c9e9e30a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-910-50-3](https://asc.understandingaccounting.org/asc/310/910/#310-910-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:18.985Z to 2026-09-09T23:28:18.985Z Record version: sha256:40477061177d89810be5549887b6f304671869263fea083e7d163d082b7e27fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) ##### [310-910-50-4](https://asc.understandingaccounting.org/asc/310/910/#310-910-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:18.985Z to 2026-09-09T23:28:18.985Z Record version: sha256:47718557d106e19a634656f6fd78ae0ccca8601adaa37ec5eb9311de5ac936b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Maintenance Update No. 2019-01.](https://asc.understandingaccounting.org/updates/maintenance-updates-2019/) Source downloaded (UTC): 2026-09-09T23:28:22.756Z to 2026-09-09T23:28:44.996Z Record version: sha256:d1001303526dada6679fe43294b70b598fb20c9b9158642cfaf5d3294082dfd5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912: Receivables — Contractors—Federal Government ### Machine-generated study aids ```json { "summary": "This Subtopic tells federal government contractors how to recognize, present, and disclose receivables arising from government contracts. Its core rules: unbilled costs and fees under cost-plus-fixed-fee contracts are receivables or contract assets (not advances or inventory); progress payments are applied first against unbilled receivables (or accounted for as financing if the government obtains only a secured interest); and a terminated contract converts contract inventory into a termination claim receivable classified as a current asset.", "key_points": [ "Unbilled costs and fees under cost-plus-fixed-fee contracts are receivables or contract assets rather than advances or inventory, because the right to bill generally exists upon expenditure or accrual and the delay is only to assemble billing data (310-912-25-1; 310-912-25-3).", "Fee payments are usually measured by the ratio of expenditures incurred to total estimated expenditures rather than by a measure of progress toward satisfying a performance obligation under 606-10-25-31 through 25-37 and 606-10-55-16 through 55-21 (310-912-25-2).", "If legal title to accumulated costs of contracts in progress vests with the U.S. government upon receipt of progress payments, those payments on fixed-price contracts are applied by individual contract first to unbilled receivables with any remainder to accumulated costs of contracts in progress; if the government receives only a secured interest, the progress payments are accounted for as a financing transaction (310-912-25-7).", "Disposal credits (amounts for termination inventory retained by the contractor at agreed value, or sold to others with government approval) are applied as a reduction of the termination claim receivable; items retained without claim for loss are excluded from the claim (310-912-25-4; 310-912-35-1).", "In no-cost settlements there is no sale to the government and no profit is accrued on termination; costs and retained property receive their usual accounting treatment (310-912-25-5).", "Government contract receivables are shown separately from other receivables, billed items are presented separately from unbilled costs, and termination claims are recorded in one account, presented separately, with claims against the government segregated from claims against other contractors (310-912-45-1; 45-2; 45-6).", "A termination claim is classified as a current asset unless there is indication of extended delay such as serious disagreement pointing to probable litigation; partial and advance payments are recorded as reductions of the claim receivable, and progress and advance payments are reported gross in operating cash flows (310-912-45-3; 45-5; 45-7; 45-4; 45-11)." ], "categories": [ "Recognition", "Presentation", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Exam traps here are classification, not measurement: unbilled costs are receivables/contract assets (never inventory or negative advances), and progress payments are netted against unbilled receivables on the balance sheet but must still be reported gross in the operating section of the cash flow statement. Also remember the title-versus-secured-interest test determines whether progress payments are an offset or a financing transaction.", "related_topics": [ "912-10", "912-330", "912-405", "606-10", "340-40", "705-20" ], "key_concepts": [ "unbilled costs and fees", "cost-plus-fixed-fee contract", "progress payments", "termination claim receivable", "disposal credits", "no-cost settlement", "contract asset", "government contract receivables" ] } ``` Source downloaded (UTC): 2026-09-09T23:28:22.756Z to 2026-09-09T23:28:22.756Z Record version: sha256:702c1da638dc1ea4d72c0e5da4e5eefe0b82d9fb2e8b99a562fe5fb353733f93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/912/#00-status) SEC content: no ##### [310-912-00-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:22.756Z to 2026-09-09T23:28:22.756Z Record version: sha256:52fd96dad50158719f6faa41ce1050cdf0b820907f0954b0083fbdcd7ab24871 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Contract AssetAddedAccounting Standards Update No. 2014-0905/28/2014
912-310-25-1AmendedAccounting Standards Update No. 2014-0905/28/2014
912-310-25-2AmendedAccounting Standards Update No. 2014-0905/28/2014
912-310-25-6SupersededAccounting Standards Update No. 2014-0905/28/2014
912-310-25-8SupersededAccounting Standards Update No. 2014-0905/28/2014
912-310-25-9SupersededAccounting Standards Update No. 2014-0905/28/2014
912-310-45-1AmendedMaintenance Update 2018-12 (PDF)09/10/2018
912-310-45-9SupersededAccounting Standards Update No. 2014-0905/28/2014
912-310-45-10SupersededAccounting Standards Update No. 2014-0905/28/2014
912-310-50-4AmendedMaintenance Update 2016-11 (PDF)06/27/2016
Source downloaded (UTC): 2026-09-09T23:28:26.165Z to 2026-09-09T23:28:26.165Z Record version: sha256:9736c8276705029e47e381a39ea66c2249da87c70f31a2a36ae416ff0b3fcac1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/912/#05-overview-and-background) SEC content: no ##### [310-912-05-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:26.165Z to 2026-09-09T23:28:26.165Z Record version: sha256:eaa10474898531bf046f9bf995173fe790fbc32e7ec25ce109cc30f3e11ab3f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to government contractors related to the recognition, presentation, and disclosure of receivables resulting from federal government contracts. Source downloaded (UTC): 2026-09-09T23:28:28.561Z to 2026-09-09T23:28:28.561Z Record version: sha256:5add5b97ae58f54406d1a04ce89ca3fbc5531ebaf80ea9debef7edf62e66e025 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/912/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-912-15-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:28.561Z to 2026-09-09T23:28:28.561Z Record version: sha256:9d5e307b3c6a91a86702baf90f838848afbb973edf66179e3d6710b4ebad6110 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 912-10-15. Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:b8b2b8a8a1fc74f11909b469d6ce310a0208ec7950f6c9ebcb5ea0ec91f19f45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/912/#25-recognition) SEC content: no #### Cost-Plus-Fixed-Fee Contracts ##### [310-912-25-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:05fb26a9aec05587eaa31f5d4d11da7b6e2f6121f4e1492e07a9eef94feb2ca7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unbilled costs and fees under [cost-plus-fixed-fee contracts](https://asc.understandingaccounting.org/glossary/c/#cost-plus-fixed-fee-contract "A contract under which the contractor is reimbursed for costs plus the provision for a fixed fee.") are receivables or [contract assets](https://asc.understandingaccounting.org/glossary/c/#contract-asset "An entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity's future performance).") rather than advances or inventory. ##### [310-912-25-2](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:aaef17f3bb446a0a291723667694c9d1c118bf4b02fdf49dbe126c2c7715321d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Payments on account of the fees (minus amounts withheld until completion) are made from time to time as specified in the agreements, usually subject to the approval of the contracting officer. In most circumstances the amount of each payment is determined by the ratio of expenditures made to the total estimated expenditures rather than on the basis of deliveries or other measures of progress toward complete satisfaction of a [performance obligation](https://asc.understandingaccounting.org/glossary/p/#performance-obligation "A promise in a contract with a customer to transfer to the customer either: A good or service (or a bundle of goods or services) that is distinct A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.") in accordance with the guidance in paragraphs [606-10-25-31 through 25-37](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-31) and paragraphs [606-10-55-16 through 55-21](https://asc.understandingaccounting.org/asc/606/10/#606-10-55-16) . ##### [310-912-25-3](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:551ca809dd3d29f81b9757bbb6950a7e410971cbca547653c3593cf87e4677de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The principal reason for the existence of unbilled costs is the time usually required, after receipt of material or expenditures for labor and other costs , to assemble data for billing. The right to bill usually exists upon expenditure or accrual, and that right represents a receivable rather than an advance or inventory. #### Termination Claims ##### [310-912-25-4](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:ca6e10d4d65a96971703808f5c931c141f4ffe52398bd2f3bb75d53ea4d1de15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disposal credits are amounts deducted from the contractor's termination claim receivable by reason of the contractor's retention, or sale to outsiders, of some or all of the termination inventory for which claim was made. In the circumstance of items retained, either as scrap or for use by the contractor, the amount of the credit shall be determined by agreement between the contractor and a representative of the government. The sale of inventory items by the contractor shall be likewise subject to approval by the government, except as permitted by regulation. Because the amount of the contractor's termination claim is properly recorded as a sale, any elements included in that claim for items of inventory retained by the contractor are, in effect, reacquired by the contractor and shall be treated as purchases at the agreed value. Amounts received for items sold to others with the approval of the government are collections for the account of the government and shall be applied as a reduction of the termination claim receivable. Inventories or other items that are retained by the contractor after termination without claim for loss shall not be included as an element of the termination claim. ##### [310-912-25-5](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:fd8887a637576c5d12bd6470523306fc22e612692697e411b7a2dab712091875 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A contractor whose contract is terminated may prefer to retain the termination inventory for use in other production or for disposal at the contractor's risk. For these or other reasons the contractor may prefer to make no claim against the government or a higher-tier contractor. In such no-cost settlements there is no sale of inventory or other items to the government and no occasion to accrue any profit arising from the termination. The costs otherwise applicable to the contract shall be given their usual treatment in the accounts. Items of inventory or other property retained, having been previously recorded, require no charge to purchases but shall be treated in accordance with the usual procedures applicable to such assets. ##### [310-912-25-6](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:7dbdbadad06c98759722537b63e778a6fd337f715a99ef72aea656f697b18c5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Progress Payments ##### [310-912-25-7](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:cd351919d306e8663822d6ea1d815a1d4d1b97a5a1437f554fc773063b083f6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting for progress payments under a government contract depends on the progress-payments clause as follows: 1. a If legal title to the related accumulated costs of contracts in progress vests with the U.S. government on the contractor's receipt of progress payments, progress payments received on fixed-price contracts shall be applied by individual contract first to amounts carried in unbilled receivables, with any remainder applied to accumulated costs of contracts in progress (often referred to as inventories). 2. b If a legal determination is made that the U.S. government receives only a secured interest in the accumulated costs of contracts in progress, progress payments received shall be accounted for as a financing transaction. ##### [310-912-25-8](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:c145284764531b6fa38800560612b8acaf3f99c34b03ade00a7d39e5ec207360 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-912-25-9](https://asc.understandingaccounting.org/asc/310/912/#310-912-25-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:34.318Z to 2026-09-09T23:28:34.318Z Record version: sha256:282158cebe92b87c3067bb5d5e161da3a4011b54df3f1534b68d0bdbdfe0d705 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:28:37.893Z to 2026-09-09T23:28:37.893Z Record version: sha256:d22d771b06afccc54d4bb2abfe6ec61266d9fbac468f4e05a1eea42b1fc9b1ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/912/#35-subsequent-measurement) SEC content: no #### Inventory Items Related to Termination Claims ##### [310-912-35-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:37.893Z to 2026-09-09T23:28:37.893Z Record version: sha256:610c37dc8748af9ca9e6fde1eb59c21bfaf4f544ff85a8b30a5619f757cef245 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A purchase of inventory items recognized in accordance with the guidance in paragraph [912-330-25-1](https://asc.understandingaccounting.org/asc/330/912/#330-912-25-1) shall be applied, together with other disposal credits, against the termination claim receivable. Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:894828f350c401630097cbadddc88c04c060f7f9e648c4f618031237cef11fc9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/912/#45-other-presentation-matters) SEC content: no #### Balance Sheet ##### [310-912-45-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:275a7acb17072a22da16d0a8d64eb6d8e601d5a7cf329efe8303b2fbdc3eac44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Government contract receivables usually are shown separately from other receivables in the balance sheet (or otherwise disclosed in the notes to financial statements). ##### [310-912-45-2](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:dbdfcc9a7c136b2984e80a93487f2d52daf318ae2c1ac1c8d771a9c8fb62768b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. There is a difference in character between billed items and unbilled costs and such amounts shall be presented separately on the balance sheet. ##### [310-912-45-3](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:bdcb1475877f6f30bedcde67a18d5577d5273894684a1b2319e8a4454c7d0d7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Termination claims shall be classified as a current asset. ##### [310-912-45-4](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:9d82ece89412d674e1b3f8bd0cd16800a8603d491c507dc59c6b9ca721bd1dbc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Advance payments](https://asc.understandingaccounting.org/glossary/a/#advance-payments "Government advances of cash as a revolving fund or against the final payment due under an agreement.") received before termination may be shown in financial statements after termination as a deduction from the claim receivable. ##### [310-912-45-5](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:6a7de56a95a8b61f63739294f948a01dbdb11c386452fa488529214e3f0aa3ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Termination has the effect of converting an active contract in process into a claim, or, from an accounting standpoint, from contract inventories and other charges into an account receivable. This receivable arises in the regular course of business; it is part of the working capital; and in view of the provisions made for financial assistance to the contractor during the period of termination, collection in large part may be expected within a relatively short time. The termination claim shall therefore be classified as a current asset, unless there is an indication of extended delay, such as serious disagreement pointing to probable litigation, which would exclude it from this classification. ##### [310-912-45-6](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:fc2a0dbbf073c1ad325af128500e8f82fb7622c02cd7d5859a909d5fabfdac8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although a claim may be composed of several elements representing reimbursable items of special equipment, deferred charges, inventories, and other items, as well as claims for profit, it is preferable to record the claim in one account. The total of termination claims shall be presented separately from other receivables. Claims directly against the government shall be segregated from claims against other contractors. ##### [310-912-45-7](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:0c5d11455632c0f1ef453164ee8d26459a6ed5b3660a47066be2b582195fe7d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To assure adequate financial assistance to contractors, legislation and regulations provide in some circumstances for partial payments and in others for such payments or guaranteed loans from the effective date of termination until final settlement. Partial payments shall be recorded as reductions of the termination claim receivable. ##### [310-912-45-8](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:3c98dc50e8af62c6129394d654a8dd9af9170dfa65c0f5cabaa0d869527af3c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The costs and expenses chargeable to the termination claim are given their usual classification in the accounts. ##### [310-912-45-9](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:ec875237dcb6fe516da903adbb6f454b1aa293ed0825da21f5f725f06fbb9557 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-912-45-10](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:94cea9e9464b062722a3e3c18f5be57f306b553a07aa7cffcfb775cfa86a4b72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Cash Flow Statement ##### [310-912-45-11](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:40.029Z to 2026-09-09T23:28:40.029Z Record version: sha256:fcc76caab97fa8459faf746f031c6607b254546536b40b0d83d045b272a589e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In reporting cash flows from operating activities, progress, and advance payments received on contracts shall be reported gross, regardless of whether those payments have been applied against unbilled contract receivables or accumulated costs of contracts in progress in the balance sheet. The manner of reporting depends on whether the entity uses the direct method or indirect method as follows: 1. a Direct method. Entities that use the direct method in reporting cash flows from operating activities shall show progress and advance payments received on contracts as a separate major class of cash receipts. 2. b Indirect method. Entities that use the indirect method shall show progress and advance payments as a separate adjustment in reconciling net income to net cash provided for operating activities. Source downloaded (UTC): 2026-09-09T23:28:43.048Z to 2026-09-09T23:28:43.048Z Record version: sha256:022e8afdc40fb2153c6399872d16c5c291c103743ee2d2f1a565215fba1b73e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-912-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/912/#50-disclosure) SEC content: no #### Termination Claims ##### [310-912-50-1](https://asc.understandingaccounting.org/asc/310/912/#310-912-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:43.048Z to 2026-09-09T23:28:43.048Z Record version: sha256:b5e5e5c006067b09c5d37e49c71d80919aec52ed4d24dc99cac566534a3c0875 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For those parts of the termination claim that are included in financial statements after termination, full disclosure of the essential facts shall be made. ##### [310-912-50-2](https://asc.understandingaccounting.org/asc/310/912/#310-912-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:43.048Z to 2026-09-09T23:28:43.048Z Record version: sha256:c3348a47d71765a53394c4407a9f706a89c4db9ce7bed25ac54da5216a7edc6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The termination claim shall be separately disclosed. #### Progress Payments ##### [310-912-50-3](https://asc.understandingaccounting.org/asc/310/912/#310-912-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:43.048Z to 2026-09-09T23:28:43.048Z Record version: sha256:5f404a13a18d3cbf5736fad3121d2035c2f6b1e8fadf2e85cf1895c1a9b1c27d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount of progress payments offset against unbilled receivables shall be disclosed. #### Advance Payments ##### [310-912-50-4](https://asc.understandingaccounting.org/asc/310/912/#310-912-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:43.048Z to 2026-09-09T23:28:43.048Z Record version: sha256:fb71472811b09955ffd57b968a8461a1033352d89f02a15a41d9a16056c07fcb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Advance payments](https://asc.understandingaccounting.org/glossary/a/#advance-payments "Government advances of cash as a revolving fund or against the final payment due under an agreement.") received on the contract before its termination shown as a deduction from the claim receivable in accordance with paragraph [912-310-45-4](https://asc.understandingaccounting.org/asc/310/912/#310-912-45-4) shall be explained in a note to financial statements. Source downloaded (UTC): 2026-09-09T23:28:48.719Z to 2026-09-09T23:28:53.444Z Record version: sha256:82f0292a9fbd5500c7338c1ccf1e7b07f7f82a345343dedaf2026579c843a814 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-920: Receivables — Entertainment—Broadcasters ### Machine-generated study aids ```json { "summary": "ASC 310-920 formerly provided industry-specific guidance on receivables arising in broadcasting arrangements. Both of its substantive paragraphs — the overview/background paragraph (310-920-05-1) and the recognition paragraph (310-920-25-1) — were superseded by ASU No. 2014-09 (Revenue from Contracts with Customers). As a result, the subtopic contains no remaining operative guidance.", "key_points": [ "310-920-05-1 (background/overview for broadcaster receivables) was superseded by Accounting Standards Update No. 2014-09.", "310-920-25-1 (recognition guidance for broadcaster receivables) was superseded by Accounting Standards Update No. 2014-09.", "Because both paragraphs are superseded, ASC 310-920 imposes no current recognition or measurement requirements for broadcaster receivables.", "Recognition of revenue and related receivables for broadcasters is now governed by ASC 606, Revenue from Contracts with Customers, as amended by ASU 2014-09.", "Entities still applying pre-ASU 2014-09 guidance (for periods before adoption) would look to the superseded text, but ASU 2014-09 is now fully effective for all entities." ], "categories": [ "Revenue", "Recognition", "Industry-specific", "Transition and effective dates" ], "audience_level": "introductory", "student_note": "This subtopic is a shell: everything in it was superseded by the revenue standard, so a student should not cite it as live guidance. The common mistake is treating an \"empty\" ASC location as meaning no guidance exists — instead, look to ASC 606 (and ASC 926/920 for other broadcaster matters).", "related_topics": [ "606", "610-20", "920", "926", "340-40" ], "key_concepts": [ "broadcaster receivables", "barter transactions", "superseded guidance", "revenue from contracts with customers", "industry-specific receivables" ] } ``` Source downloaded (UTC): 2026-09-09T23:28:48.719Z to 2026-09-09T23:28:48.719Z Record version: sha256:17119553309d8fd81ed1652fac23584d6acfbfac5051dda3bc75c7241ff9f38e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-920-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/920/#00-status) SEC content: no ##### [310-920-00-1](https://asc.understandingaccounting.org/asc/310/920/#310-920-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:48.719Z to 2026-09-09T23:28:48.719Z Record version: sha256:d84f8b641f80e1bbfdabbf0d479974cf12eca07ce492f65830e70e9ce83af0c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
BarterSupersededAccounting Standards Update No. 2014-0905/28/2014
920-310-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
920-310-25-1SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T23:28:51.110Z to 2026-09-09T23:28:51.110Z Record version: sha256:8e48787c479a92f1265150a9cf59ac50c0ed82774bd5a49d431276c6e531def6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-920-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/920/#05-overview-and-background) SEC content: no ##### [310-920-05-1](https://asc.understandingaccounting.org/asc/310/920/#310-920-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:51.110Z to 2026-09-09T23:28:51.110Z Record version: sha256:fad4a42a864ca8af0d7cb11976a93298fd8463956df15b3f9c13729f49f66773 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:28:53.444Z to 2026-09-09T23:28:53.444Z Record version: sha256:881d95de0b712aedf8422cc3d51f2d3f92668b2e7132dd3ecac590f72d8e8a91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-920-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/920/#25-recognition) SEC content: no ##### [310-920-25-1](https://asc.understandingaccounting.org/asc/310/920/#310-920-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:53.444Z to 2026-09-09T23:28:53.444Z Record version: sha256:c564a271c65d134141d32e610d0b8cadbc2760d351524d44480ad50660e6480b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:28:57.183Z to 2026-09-09T23:28:57.183Z Record version: sha256:f52267fc622577a2f5548cb9a4033c39591fbb1cf39f5d0fd9b894faca105b4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-940: Receivables — Financial Services—Brokers and Dealers ### Machine-generated study aids ```json { "summary": "ASC 310-940 is a \"link\" subtopic: it contains no substantive accounting guidance of its own. It simply directs readers looking for guidance on receivables of brokers and dealers in securities to other locations in the Codification — specifically, Subtopic 940-325 for receivables arising as part of a financial-restructuring transaction (310-940-05-2).", "key_points": [ "Per 310-940-05-1, this Subtopic only provides a link to guidance on receivables of brokers and dealers in securities (broker-dealers); it establishes no recognition, measurement, or disclosure requirements itself.", "Per 310-940-05-2, receivables that are part of a financial-restructuring transaction (as described in 940-325-05-1, 940-325-30-1, and 940-325-35-1) are accounted for under Subtopic 940-325.", "Because the industry guidance resides in Topic 940 (Financial Services—Brokers and Dealers), a researcher who starts in Topic 310 must follow the cross-reference rather than apply general receivables guidance by default.", "The Subtopic contains only Section 05 (Overview and Background); the absence of Sections 25, 30, 35, and 50 signals that no incremental broker-dealer receivables guidance is codified in Topic 310." ], "categories": [ "Financial instruments", "Industry-specific", "Recognition" ], "audience_level": "intermediate", "student_note": "The practical point is research navigation: ASC 310-940 exists only to route you to Subtopic 940-325, so don't waste time hunting for broker-dealer receivable rules inside Topic 310. A common misunderstanding is assuming a \"link\" subtopic imposes its own requirements or that general Topic 310 receivables guidance automatically governs broker-dealer financial-restructuring receivables.", "related_topics": [ "940-325", "940", "310-10", "326-20", "940-320" ], "key_concepts": [ "broker-dealer receivables", "link subtopic", "financial restructuring transaction", "industry-specific guidance", "codification cross-reference", "securities brokers and dealers" ] } ``` Source downloaded (UTC): 2026-09-09T23:28:57.183Z to 2026-09-09T23:28:57.183Z Record version: sha256:9de9b53038ec5a80f2306c882945478fe50eb15eea4678ea6a24edcbd0e30c26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-940-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/940/#05-overview-and-background) SEC content: no ##### [310-940-05-1](https://asc.understandingaccounting.org/asc/310/940/#310-940-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:57.183Z to 2026-09-09T23:28:57.183Z Record version: sha256:04554a9184c01fe168e7b29cb799bd4ff4bf5bbe161968f8d302ab733d559406 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic only provides a link to guidance on receivables of brokers and dealers in securities (broker-dealers). ##### [310-940-05-2](https://asc.understandingaccounting.org/asc/310/940/#310-940-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:57.183Z to 2026-09-09T23:28:57.183Z Record version: sha256:59434f2186c69251cdd8087b6f6853059a04e58d25b014ce493fb9903f4a5e3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on receivables that are part of a financial-restructuring transaction (as described in paragraphs [940-325-05-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-05-1), [940-325-30-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-30-1) and [940-325-35-1](https://asc.understandingaccounting.org/asc/325/940/#325-940-35-1)), see Subtopic 940-325. Source downloaded (UTC): 2026-09-09T23:28:59.076Z to 2026-09-09T23:29:40.889Z Record version: sha256:1a48a932776a431407911f1c02948a755cb862a89246112b764345fb932f2e27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942: Receivables — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "summary": "This Subtopic gives industry guidance for depository and lending institutions on receivables, principally debt-equity swap programs in which a bank converts U.S.-dollar-denominated loans to financially troubled countries into approved local equity investments. A swap is measured at fair value at the date both parties agree to the transaction, considering both the secondary market price of the loan given up and the fair value of the equity or net assets received; a shortfall against the recorded investment in the loan is a loss charged to the allowance for loan losses. It also addresses nonaccrual loans to troubled countries, when interest may again be recognized as income, and gross presentation of customers' liabilities on acceptances.", "key_points": [ "A debt-equity swap shall be measured at fair value at the date the transaction is agreed to by both parties, considering both the secondary market price of the loan given up and the fair value of the equity investment or net assets received, since the thin secondary market may not be the best indicator (310-942-30-1; 310-942-30-2).", "Management is responsible for measuring fair value using reasonable methods and assumptions consistent with Topic 820, considering similar cash transactions, estimated cash flows, fair value of similar equity investments, and currency/repatriation restrictions (310-942-30-3).", "If the fair value received is less than the recorded investment in the loan, the loss is recognized at the agreement date and generally charged to the allowance for loan losses, including any discount from the official exchange rate imposed as a transaction fee (310-942-35-5).", "Loss recoveries or gains indicated by the valuation ordinarily should not be recorded until the equity investment or net assets received are realized in unrestricted cash or cash equivalents (310-942-35-6).", "All other fees and transaction costs in a debt-equity swap are expensed as incurred, not capitalized (310-942-25-2).", "On a loan whose interest accrual has been suspended, payments received are applied to reduce principal to the extent necessary to eliminate doubt about ultimate collectibility of principal (310-942-35-2); interest may be recognized as income only once the country is current and has normalized relations with the international financial community and the allowance is adequate (310-942-35-3), and a period of payment performance is generally needed before returning loans to accrual status (310-942-35-4).", "Customers' liabilities on acceptances shall be reported gross rather than net of the related bankers' acceptance liability (310-942-45-1); loans held for disposition prior to maturity are carried at the lower of amortized cost basis or fair value (310-942-55-1)." ], "categories": [ "Initial measurement", "Subsequent measurement", "Impairment", "Industry-specific" ], "audience_level": "advanced", "student_note": "Practically, this is niche sovereign-debt/bank guidance, but it illustrates an important asymmetry students often miss: swap losses are recognized immediately at the agreement date (charged to the allowance for loan losses), while indicated gains or loss recoveries wait until the received investment is realized in unrestricted cash. Also note that meeting the \"normalized relations\" conditions permits interest income recognition but does not automatically restore accrual status.", "related_topics": [ "326-20", "310-20", "820", "805", "845", "942-210" ], "key_concepts": [ "debt-equity swap", "nonaccrual loans", "allowance for loan losses", "sovereign debt of financially troubled countries", "fair value measurement", "bankers' acceptances", "lower of amortized cost basis or fair value", "cost recovery of interest" ] } ``` Source downloaded (UTC): 2026-09-09T23:28:59.076Z to 2026-09-09T23:28:59.076Z Record version: sha256:dbb4218970882e0bca77415ca9d41b6743563ed4f61f57a4cf446ccc01c1ae21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/942/#00-status) SEC content: no ##### [310-942-00-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:28:59.076Z to 2026-09-09T23:28:59.076Z Record version: sha256:baea59a3d721c505a522e9c26fcd3fb977c2323369f03872693e1a0e014aa731 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
942-310-05-1AmendedAccounting Standards Update No. 2016-1306/16/2016
942-310-05-4SupersededAccounting Standards Update No. 2016-1306/16/2016
942-310-25-1SupersededAccounting Standards Update No. 2016-1306/16/2016
942-310-30-1AmendedAccounting Standards Update No. 2022-0203/31/2022
942-310-30-1 through 30-3
AmendedAccounting Standards Update No. 2012-0410/01/2012
942-310-35-1AmendedAccounting Standards Update No. 2016-1306/16/2016
942-310-55-1AmendedAccounting Standards Update No. 2016-1306/16/2016
Source downloaded (UTC): 2026-09-09T23:29:01.011Z to 2026-09-09T23:29:01.011Z Record version: sha256:ed32e04586366e507c95b43f8bb362ba2a4fed10a44307309403e2588635d253 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/942/#05-overview-and-background) SEC content: no ##### [310-942-05-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:01.011Z to 2026-09-09T23:29:01.011Z Record version: sha256:f8041999d4d445af9bb25c8f9ae50ae6cabddc5f3ad00517d7835c1b89c8ff43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for debt-equity swap programs. ##### [310-942-05-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:01.011Z to 2026-09-09T23:29:01.011Z Record version: sha256:e1b361aaa36ada0d2174f4b975aa9724bfd337e36e33ae62ac873afca77f760d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses situations where a financially troubled country may suspend the payment of interest on its loans. Banks with outstanding loans from such a country have also suspended accrual of interest income (placed them on nonaccrual status). A country that has suspended payment of interest may later resume payment. ##### [310-942-05-3](https://asc.understandingaccounting.org/asc/310/942/#310-942-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:01.011Z to 2026-09-09T23:29:01.011Z Record version: sha256:d426eb39a44009453604b350611add26ea8430c82cb16d988d73fe7d66964775 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") programs are in place in several financially troubled countries. Although the programs differ somewhat among the countries, the principal elements of each program generally are as follows: 1. a Holders of U.S.-dollar-denominated debt of these countries can choose to convert that debt into approved local equity investments. 2. b The holders are credited with local currency, at the official exchange rate, approximately equal to the U.S. dollar debt. 3. c A discount from the official exchange rate is usually imposed as a transaction fee. 4. d The local currency credited to the holder must be used for an approved equity investment. 5. e The local currency is not available to the holders for any other purpose. 6. f Dividends on the equity investment can generally be paid annually, although there may be restrictions on the amounts of the dividends or on payment of dividends in the early years of the investment. 7. g Capital usually cannot be repatriated for several years, and although some countries permit the investment to be sold, the proceeds from any such sale are generally subject to similar repatriation restrictions. ##### [310-942-05-4](https://asc.understandingaccounting.org/asc/310/942/#310-942-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:01.011Z to 2026-09-09T23:29:01.011Z Record version: sha256:4c9c1e376b915f04cbdeb8de61ecb40698db2f10fd636ca4024530ae4ce9867a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). Source downloaded (UTC): 2026-09-09T23:29:05.046Z to 2026-09-09T23:29:05.046Z Record version: sha256:3bb99446a1863b28f67da59d421dc86fb179bf809a4009b6a82191faa1ab295b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-942-15-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:05.046Z to 2026-09-09T23:29:05.046Z Record version: sha256:4dad315788f930535c965590568e27456f55c6f9d1a244345d921e4a178e5dec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 942-10-15, with specific transaction exceptions noted below. #### Transactions ##### [310-942-15-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:05.046Z to 2026-09-09T23:29:05.046Z Record version: sha256:d0014236c4c30d9bb31a1abfc07c0b6c3ac081eede324a48a145f035d0d34c84 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 Stock loans that fall under the scope of Topic 718. Source downloaded (UTC): 2026-09-09T23:29:09.773Z to 2026-09-09T23:29:09.773Z Record version: sha256:eed44f7d6b8cfa99778ba57e1fc11509a456031afa0dd707fd7359fe9d732eed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/942/#25-recognition) SEC content: no ##### [310-942-25-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:09.773Z to 2026-09-09T23:29:09.773Z Record version: sha256:537f9114732ecdb1aedd41259496ddae2135e0a5f7356722802f24387d776109 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). #### Debt-Equity Swap Fees and Costs ##### [310-942-25-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:09.773Z to 2026-09-09T23:29:09.773Z Record version: sha256:5c93e44320b9087f4b01b91e217d7e70e94273975c2c4d62f07c1a50ea16a5c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All other fees and transaction costs involved 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.") shall not be capitalized but shall be charged to expense as incurred. Source downloaded (UTC): 2026-09-09T23:29:13.270Z to 2026-09-09T23:29:13.270Z Record version: sha256:646824acbf9b7da75107f8f1d32b116e754a761b9f74cbde6d67d931dc140ea0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/942/#30-initial-measurement) SEC content: no #### Debt-Equity Swap Programs ##### [310-942-30-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:13.270Z to 2026-09-09T23:29:13.270Z Record version: sha256:25a43cc6ae90b94a0e2fbe39ebdba0de0d3a7b4a56ab3d3a508316d3981fb96c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.") shall be measured at [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.") at the date the transaction is agreed to by both parties. Debt-equity swaps have characteristics similar to both the acquisition of assets contemplated by Topics 805 and 845 and the receipt of assets in satisfaction of a loan contemplated by Subtopic 310-20. ##### [310-942-30-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:13.270Z to 2026-09-09T23:29:13.270Z Record version: sha256:eab90c287b8eab49e6e7e75e687f2a531eb31fea7677300dca269d1c6021af24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Since the secondary market for debt of financially troubled countries may be considered to be thin, it may not be the best indicator of the fair value of the equity investment or of net assets received. In light of this thin secondary market and of the unique nature of the transaction, it is also necessary to examine the fair value of the equity investment or net assets received. In arriving at the fair value of a debt-equity swap, both the secondary market price of the loan given up and the fair value of the equity investment or net assets received shall be considered. ##### [310-942-30-3](https://asc.understandingaccounting.org/asc/310/942/#310-942-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:13.270Z to 2026-09-09T23:29:13.270Z Record version: sha256:c24853c7bed0fb96d2968937be5aaffa6e9788d9fc03960e799f6ff11bf65fd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is the responsibility of management to measure fair value considering all of the circumstances and to see that the measurement of fair value is based on reasonable methods and assumptions consistent with Topic 820, including, as needed, information from independent appraisals. Factors to consider in measuring fair values include the following: 1. a Similar transactions for cash 2. b Estimated cash flows from the equity investment or net assets received 3. c Fair value of similar equity investments, if any 4. d Currency restrictions, if any, affecting dividends, the sale of the investment, or the repatriation of capital. 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. Source downloaded (UTC): 2026-09-09T23:29:18.091Z to 2026-09-09T23:29:18.091Z Record version: sha256:d1ee1a106618d07069c3e91e16451dea338c6a95741256e96e14c0fdae468969 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/942/#45-other-presentation-matters) SEC content: no #### Customers' Liabilities on Acceptances ##### [310-942-45-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:18.091Z to 2026-09-09T23:29:18.091Z Record version: sha256:921033b8a17b5dfbe3835a172b58eeda0a1517cd8190037f60ef68a3f2ba1e36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Customers' liabilities on acceptances shall be reported gross, rather than net of the related bankers' acceptance liability. #### Unearned Premiums and Unpaid Claims on Insurance Coverages ##### [310-942-45-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:18.091Z to 2026-09-09T23:29:18.091Z Record version: sha256:47ab2c197a801429c841e327fc11f23922170cfd883ffb49cc5ecad49eb8c285 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 942-210-45 regarding presentation guidance for unearned premiums and unpaid claims on insurance coverages issued to finance customers. Source downloaded (UTC): 2026-09-09T23:29:21.153Z to 2026-09-09T23:29:21.153Z Record version: sha256:1b0bc119e91aa141cfd9548314a73bc72fd3df24b56ff2a41ca747627ce1f6e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/942/#55-implementation-guidance-and-illustrations) SEC content: no #### Debt-Equity Swap Programs ##### [310-942-55-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:21.153Z to 2026-09-09T23:29:21.153Z Record version: sha256:9bba6d375f6974c31861cd8c1417664d4be5e6d96b5bd38ebd662f1dc88775fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Management may decide to dispose (by sale of swap) of loans prior to maturity for a number of reasons, including liquidity needs, tax considerations, portfolio diversification objectives, and management practices of generating loans specifically for disposition, in which case the loans shall be carried at the lower of amortized cost basis or fair value. Source downloaded (UTC): 2026-09-09T23:29:28.002Z to 2026-09-09T23:29:28.002Z Record version: sha256:1dec9acf57d79db06a4f5e348deb344b462c3b042c40799b8abaa404f692c601 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/942/#sec-00-status) SEC content: yes ##### [310-942-S00-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:28.002Z to 2026-09-09T23:29:28.002Z Record version: sha256:ff4348a194841fa3509467aec7d3b941ae6714414bf9a68f8c86bc0a2ceb1a8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No updates have been made to this subtopic. Source downloaded (UTC): 2026-09-09T23:29:31.969Z to 2026-09-09T23:29:31.969Z Record version: sha256:634631eac936cad83f8554e731b767d74710ebb904e7180b9459bb695db02d9f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-S35: SEC 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/942/#sec-35-subsequent-measurement) SEC content: yes #### Reporting of an Allocated Transfer Risk Reserve in Filings Under the Federal Securities Laws ##### [310-942-S35-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-S35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:31.969Z to 2026-09-09T23:29:31.969Z Record version: sha256:7f15443d809aa6fd55b2653b96e40cf02de5698120b207b65d0be39b8a44dd9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-310-S99-3](https://asc.understandingaccounting.org/asc/310/942/#310-942-S99-3), SAB Topic 11.I, for SEC Staff views on how the allocated transfer risk reserve should be reported in filings under Federal Securities Laws. Source downloaded (UTC): 2026-09-09T23:29:33.632Z to 2026-09-09T23:29:33.632Z Record version: sha256:e73c4921db826a6c08603785216ea8b792a8ed7048eaf4ed59649ee9eb71df69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-S45: SEC 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/942/#sec-45-other-presentation-matters) SEC content: yes #### Loans and Allowance For Loan Losses ##### [310-942-S45-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-S45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:33.632Z to 2026-09-09T23:29:33.632Z Record version: sha256:c6f09711ab0cfe6ff4a9e165d15739c0144690fc3c228453682b5f2255614e6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-210-S99-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S99-1), Regulation S-X Rule 9-03.7, for presentation requirements pertaining to loans and allowance for loan losses. #### Due from Customers on Acceptances ##### [310-942-S45-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-S45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:33.632Z to 2026-09-09T23:29:33.632Z Record version: sha256:f73d9a7fdf1d8024d9a97f408e9a76d2f87ca913218ad9961a4120f8465438af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-210-S99-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S99-1), Regulation S-X Rule 9-03.9, for presentation requirements pertaining to amounts receivable from customers on unmatured drafts and bills of exchange. Source downloaded (UTC): 2026-09-09T23:29:37.159Z to 2026-09-09T23:29:37.159Z Record version: sha256:78cfbef8de13d907b109c34e3ca3a2b3106dabaf9c80c0d30bd78c2d9e660234 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/942/#sec-50-disclosure) SEC content: yes #### Loans and Allowance for Loan Losses ##### [310-942-S50-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:37.159Z to 2026-09-09T23:29:37.159Z Record version: sha256:67770320fdeff999cee2c502a92b2dd2b156a09fca58d1bc0e3cba054e04bf6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-210-S99-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S99-1), Regulation S-X Rule 9-03.7, for disclosure requirements pertaining to loans and allowance for loan losses. #### Due from Customers on Acceptances ##### [310-942-S50-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:37.159Z to 2026-09-09T23:29:37.159Z Record version: sha256:4a2d8d7c5c2549c9904fd5709d005be398aea4600dc260912d36b5fdae3d8b64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-210-S99-1](https://asc.understandingaccounting.org/asc/210/942/#210-942-S99-1), Regulation S-X Rule 9-03.9, for disclosure requirements pertaining to amounts receivable from customers on unmatured drafts and bills of exchange. #### Deposit-Relending Arrangements ##### [310-942-S50-3](https://asc.understandingaccounting.org/asc/310/942/#310-942-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:37.159Z to 2026-09-09T23:29:37.159Z Record version: sha256:fea5a5bcc7f1fedf1ba2298fdcf1a6ad707833d0bd13655417963085c249f9b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-310-S99-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-S99-1), SAB Topic 11.H.1, for SEC Staff views regarding appropriate disclosures for deposit-relending arrangements between U.S. banks and certain foreign banks and borrowers. #### Accounting and Disclosures by Bank Holding Companies for a Mexican Debt Exchange Transaction ##### [310-942-S50-4](https://asc.understandingaccounting.org/asc/310/942/#310-942-S50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:37.159Z to 2026-09-09T23:29:37.159Z Record version: sha256:45e28a055f8d3d7aa1b4cebf91ffd0f7003c6c55f5a52568af53076408baa7fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-310-S99-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-S99-2), SAB Topic 11.H.2, for SEC Staff views on disclosure related to Mexican debt exchange transactions. #### Allocated Transfer Risk Reserve ##### [310-942-S50-5](https://asc.understandingaccounting.org/asc/310/942/#310-942-S50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:37.159Z to 2026-09-09T23:29:37.159Z Record version: sha256:88411397977b5f9d0e65505c136eb186fd84c62051b269751e8e6009ce6fbe17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [942-310-S99-3](https://asc.understandingaccounting.org/asc/310/942/#310-942-S99-3), SAB Topic 11.I, for SEC Staff views on disclosures pertaining to an allocated transfer risk reserve. Source downloaded (UTC): 2026-09-09T23:29:40.889Z to 2026-09-09T23:29:40.889Z Record version: sha256:046d4e384362b4cfbe239f6f3ff99e5835ee1372ae0a9bc573e4867766bb449b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-942-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/310/942/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [310-942-S99-1](https://asc.understandingaccounting.org/asc/310/942/#310-942-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:40.889Z to 2026-09-09T23:29:40.889Z Record version: sha256:bff485aae141657a86e6555a93450939d4d1c49577246305450dabcfdf7ae39d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text from SAB Topic 11.H.1, Disclosures by Bank Holding Companies Regarding Certain Foreign Loans. - Facts: Certain foreign countries experiencing liquidity problems, by agreement with U.S. banks, have instituted arrangements whereby borrowers in the foreign country may remit local currency to the foreign country's central bank, in return for the central bank's assumption of the borrowers' non-local currency obligations to the U.S. banks. The local currency is held on deposit at the central bank, for the account of the U.S. banks, and may be subject to relending to other borrowers in the country. Ultimate repayment of the obligations to the U.S. banks, in the requisite non-local currency, may not be due until a number of years hence. - Question: What disclosures are appropriate regarding deposit/relending arrangements of this general type? - Interpretive Response: The staff emphasizes that it is the responsibility of each registrant to determine the appropriate financial statement treatment and classification of foreign outstandings. The facts and circumstances surrounding deposit/relending arrangements should be carefully analyzed to determine whether the local currency payments to the foreign central bank represent collections of outstandings for financial reporting purposes, and whether such outstandings should be classified as nonaccrual, past due or restructured loans pursuant to Item III.C.1. of Industry Guide 3, Statistical Disclosure by Bank Holding Companies ("Guide 3"). - The staff believes, however, that the impact of deposit/relending arrangements covering significant amounts of outstandings to a foreign country should be disclosed pursuant to Guide 3, Item III.C.3., Instruction (6)(a). FN1 The disclosures should include a general description of the arrangements and, if significant, the amounts of interest income recognized for financial reporting purposes which has not been remitted in the requisite non-local currency to the U.S. bank. - FN1 Instruction (6)(a) calls for description of the nature and impact of developments in countries experiencing liquidity problems which are expected to have a material impact on timely repayment of principal or interest. Additionally, Instruction (6)(d)(ii) to Item III.C.3. calls for disclosure of commitments to relend, or to maintain on deposit, arising in connection with certain restructurings of foreign outstanding. ##### [310-942-S99-2](https://asc.understandingaccounting.org/asc/310/942/#310-942-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:40.889Z to 2026-09-09T23:29:40.889Z Record version: sha256:a69004ca7e7abcdd5684e938e4c7f5d0efe778b7aa52bc9427c90545a282c883 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text from SAB Topic 11.H.2, Accounting and Disclosures by Bank Holding Companies for a "Mexican Debt Exchange" Transaction. - Facts: Inquiries have been made of the staff regarding certain accounting and disclosure issues raised by a proposed "Mexican Debt Exchange" transaction which could involve numerous bank holding companies with existing obligations of the United Mexican States ("Mexico") or other Mexican public sector entities (collectively, "Existing Obligations"). The key elements of the Mexican Debt Exchange are as follows: - Mexico will offer for sale bonds ("Bonds"), denominated in U.S. dollars, which will pay interest at a LIBOR-based floating rate and mature in twenty years. Mexico will undertake to list the Bonds on the Luxembourg Stock Exchange. The Bonds will be secured, as to their ultimate principal value only, by non-interest bearing securities of the U.S. Treasury ("Zero Coupon Treasury Securities") which will be purchased by Mexico. The Zero Coupon Treasury Securities will be pledged to holders of the Bonds and held in custody at the Federal Reserve Bank of New York and will have a maturity date and ultimate principal value which match the maturity date and principal value of the Bonds. While the Bonds will have default and acceleration provisions, the holder of a Bond will not be permitted to have access to the collateral prior to the final scheduled maturity date, at which time the proceeds of the collateral will be available to pay the full principal amount of the Bonds. As such, the holder of a Bond ultimately will be secured as to principal at maturity; however, the interest payments will not be secured. The Bonds will not be subject to future restructurings of Mexico's Existing Obligations, and Mexico has indicated that neither the Bonds nor the Existing Obligations exchanged therefor will be considered part of a base amount with respect to any future requests by Mexico for new money. - The Mexican Debt Exchange will be structured in such a way that potential purchasers of the Bonds will submit bids on a voluntary basis to the auction agent. These bids will specify the face dollar amount of existing restructured commercial bank obligations of Mexico or of other Mexican public sector entities that the potential purchaser is willing to tender and the face dollar amount of Bonds that the purchaser is willing to accept in exchange for the Existing Obligations. Following the auction date, Mexico will determine the face dollar amount of Bonds to be issued and will exchange the Bonds for Existing Obligations taking first the offer of the largest face dollar amount of Existing Obligations per face dollar amount of Bonds, and so on, until all Bonds which Mexico is willing to issue have been subscribed. It is therefore possible that a greater amount of Existing Obligations could be tendered than Mexico is willing to accept. - The lender has appropriately accounted for the transaction as a troubled debt restructuring in accordance with the provisions of Statement 15 as amended by Statement 114 \[Topic 310\]. - Question 1: What financial statement and other disclosure issues regarding the Mexican Debt Exchange and the Bonds received should be considered by registrants? - Interpretive Response: The staff believes that disclosure of the nature of the transaction would be necessary, including: - Carrying value and terms of Existing Obligations exchanged; - Face value, carrying value, market value and terms of Bonds received; - The effect of the transaction on the allowance for loan losses and the provision for losses in the current period; and - Annual interest income on Existing Obligations exchanged and annual interest income on Bonds received. - On an ongoing basis, the staff believes that the terms, carrying value and market value of the Bonds should be disclosed, if material, due to their unique features. FN2 - FN2 Registrants also are reminded that if the security received in the exchange constitutes a debt security within the scope of Statement 115 \[Topic 320\], the disclosures required by Statement 115 \[Topic 320\] also would need to be provided. - Question 2: What disclosure with respect to the Bonds received would be acceptable under Industry Guide 3? - Interpretive Response: Instruction (4) to Item III.C.3. of Industry Guide 3 states: "The value of any tangible, liquid collateral may also be netted against cross-border outstandings of a country if it is held and realizable by the lender outside of the borrower's country." Given the unique features of the Bonds in that the ultimate repayment of the principal amount (but not interest) at maturity is assured, the staff will not object to either of two presentations. Under the first presentation, the carrying value of the Bonds, including any accrued but unpaid interest, would be included as a "cross-border outstanding" to the extent it exceeds the current fair value of the Zero Coupon Treasury Securities which collateralize the bonds. Alternatively, under the second presentation, the carrying value of the Bond principal would be excluded from Mexican cross-border outstandings provided (a) disclosure is made of the exclusion, (b) for purposes of determining the 1% and.75% of total assets disclosure thresholds of Item III.C.3. of Industry Guide 3, such carrying values are not excluded, and (c) all the Guide 3 disclosures relating to cross-border outstandings continue to be made, as discussed further below. - For registrants that adopt the alternative disclosure approach and whose Mexican cross-border outstandings (excluding the carrying value of the Bond principal) exceed 1% of total assets, appropriate footnote disclosure of the exclusions should be made. Such footnote should indicate the face amount and carrying value of the Bonds excluded, the market value of such Bonds, and the face amount and current fair value of the Zero Coupon Treasury Securities which secure the Bonds. - If the Mexican cross-border outstandings (excluding the carrying value of the Bond principal) are less than 1% of total assets but with the addition of the carrying value of the Bond principal would exceed 1%, the carrying value of the Mexican cross-border outstandings may be excluded from the list of countries whose cross-border outstandings exceed 1% of total assets provided that a footnote discloses the amount of Mexican cross-border outstandings (excluding the carrying value of the Bond principal) along with the footnote-type disclosure concerning the Bonds discussed in the previous paragraph. This disclosure and any other material disclosure specified by Item III.C.3. of Industry Guide 3 would continue to be made as long as Mexican exposure, including the carrying value of the Bond principal, exceeded 1%. - If the Mexican cross-border outstandings (excluding the carrying value of the Bond principal) are less than.75% of total assets but with the addition of the carrying value of the Mexican Bond principal would exceed .75% but be less than 1%, cross-border outstandings disclosed pursuant to Instruction (7) to Item III.C.3. of Industry Guide 3 may exclude Mexico provided a footnote is added to the aggregate disclosure which discloses the amount of Mexican cross-border outstandings and the fact that they have not been included. The carrying value of the Bond principal may be excluded from the amount of Mexican cross-border outstandings disclosed in the footnote provided the footnote-type disclosure discussed in the second preceding paragraph is also made. - In essence, the alternative discussed herein results in a change only in the method of presenting information, not in the total information required. FN3 - FN3 The following represents proposed disclosure using the alternative method discussed above. Of course, it would be necessary to supplement this disclosure with the additional disclosures regarding foreign outstandings that are called for by Guide 3 (e. g., an analysis of the changes in aggregate outstandings), and the disclosures called for by the Interpretive Responses to Question 1. - The appropriate disclosure would depend on the level of Mexican cross-border outstandings as follows: - A. Assuming that the remaining Mexican cross-border outstandings are in excess of 1% of total assets: - Mexican cross-border outstandings (which excludes the total amount of the carrying value of Bond principal) would be disclosed in the table presenting all such outstandings in excess of 1%. - Proposed footnote disclosure - - Not included in this amount is $\_\_\_ million of Mexican Government Bonds maturing in 2008, with a carrying value of $\_\_\_ million \[if different from face value\]. These Mexican Government Bonds had a market value of $\_\_\_ million on \[reporting date\]. The principal amount of these bonds is fully secured, at maturity, by $\_\_\_ million face value of U.S. zero coupon treasury securities that mature on the same date. The current fair value of these U.S. Government securities is $\_\_\_ million at \[reporting date\]. This collateral is pledged to holders of the bonds and held in custody at the Federal Reserve Bank of New York. The details of the transaction in which these bonds were acquired was reported in the Corporation's Form (8-K, 10-Q or 10-K) for (date). Accrued interest on the bonds, which is not secured, is included in the outstandings reported \[amount to be disclosed if material\]. Future interest on the bonds remains a cross-border risk. - B. Assuming that remaining Mexican cross-border outstandings are less than 1% of total assets but with the addition of the carrying value of the Mexican Bond principal would exceed 1%: - There would not be any disclosure included in any cross-border table. - The total amount of remaining cross-border Mexican outstandings would be disclosed in a footnote to the table. Such footnote would also explain that the Mexican outstandings are excluded from the table. - Additional footnote disclosure - (same disclosure in A above). - The disclosure required under this paragraph (plus any other disclosure required by Item III.C.3. of Guide 3) would continue so long as Mexican exposure, including the carrying value of the Mexican Bond principal, exceeded 1%. - C. Assuming that the remaining Mexican cross-border outstandings is less than.75% of total assets but with the addition of the carrying value of the Mexican Bond principal is greater than .75% but less than 1%: - Mexico would not be included in the list of names of countries required by Instruction 7 to Item III.C.3. of Industry Guide 3 and the amount of Mexican cross-border outstandings would not be included in the aggregate amount of outstandings attributable to all such countries. - A footnote would be added to this disclosure of aggregate outstandings which discusses the Mexican outstandings and the Mexican Bonds. An example follows: - Not included in the above aggregate outstandings are the Corporation's cross-border outstandings to Mexico which totaled $\_\_\_ million at (reporting date). This amount is less than .75% of total assets. (The remaining portion of this footnote is the same disclosure in A above.) - D. Assuming that the total of the Mexican cross-border outstanding plus the carrying value of the Bond principal is less than the.75% of total assets: - No disclosure would be required. - However, same disclosure as in A above would be provided if any other aspects of the financial statements are materially affected by this transaction (such as the allowance for loan losses). - Changes in aggregate outstandings to certain countries experiencing liquidity problems are required to be presented in tabular form in compliance with Instruction (6)(b) to Item III.C.3. In this table, Existing Obligations exchanged for the Bonds would generally be included in the aggregate cross-border outstandings at the beginning of the period during which the exchange occurred. For registrants using the alternative method, the amount of Existing Obligations which were exchanged would be included as a deduction in the "other changes" caption in the table. In addition, a footnote will be provided to the table as follows: - Relates primarily to the exchange of unsecured Mexican outstandings for Mexican bonds. The principal amount of these bonds is secured at maturity by $\_\_\_ face U.S. Zero Coupon Treasury Securities which mature on the same date and have a current fair value of $\_\_\_. Future interest on the bonds remains a cross-border risk.\] ##### [310-942-S99-3](https://asc.understandingaccounting.org/asc/310/942/#310-942-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:40.889Z to 2026-09-09T23:29:40.889Z Record version: sha256:f482b87010fdc0e277c4ee00643885051fe826656e6e4c4082e8fd0f612aca82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text from SAB Topic 11.I, Reporting of an Allocated Transfer Risk Reserve in Filings under the Federal Securities Laws: - Facts: The Comptroller of the Currency, Board of Governors of the Federal Reserve System and Federal Deposit Insurance Corporation jointly issued final rules, pursuant to the International Lending Supervision Act of 1983, requiring banking institutions to establish special reserves (Allocated Transfer Risk Reserve "ATRR") against the risks presented in certain international assets when the Federal banking agencies determine that such reserves are necessary. The rules provide that the ATRR is to be accounted for separately from the General Allowances for Possible Loan Losses, and shall not be included in the banking institution's capital or surplus. The rules also provide that no ATRR provisions are required if the banking institution writes down the assets in the requisite amount. - Question: How should the ATRR be reported in filings under the Federal Securities Laws? - Interpretive Response: It is the staff's understanding that the three banking agencies believe that those bank holding companies that have not written down the designated assets by the requisite amount and, therefore, are required to establish an ATRR should disclose the amount of the ATRR. The staff believes that such disclosure should be part of the discussion of Loan Loss Experience, Item IV of Guide 3. Part A under Item IV calls for an analysis of loss experience in the form of a reconciliation of the allowance for loan losses, and the staff believes that it would be appropriate to show and discuss separately the ATRR in the context of that reconciliation. - Registrants should recognize that the amount provided as an ATRR, or the write off of the requisite amount, represents the identification of an amount which those regulatory agencies have determined should not be included as a part of the institution's capital or surplus for purposes of administration of the regulatory and supervisory functions of those agencies. In this context, the staff believes that disclosure of the ATRR, as part of the footnote required to be presented in a registrant's financial statements by Item 7(d) of Rule 9-03 of Regulation S-X, may provide a more complete explanation of charge offs and provisions for loan losses. It should be noted, however, that the ATRR amount to be excluded from the institution's capital and surplus does not address the more general issue of the adequacy of allowances for any particular bank holding company's loans. It is still the responsibility of each registrant to determine whether GAAP require an additional provision for losses in excess of the amount required to be included in an ATRR (or the requisite amount written off). Source downloaded (UTC): 2026-09-09T23:29:42.889Z to 2026-09-09T23:30:17.133Z Record version: sha256:a1762b7727eba47eb240346daee378137b85ecdf0306298b4ef75dab2aad0450 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944: Receivables — Financial Services—Insurance ### Machine-generated study aids ```json { "summary": "ASC 310-944 tells insurance entities how to account for receivables: mortgage loans held as investments, reinsurance recoverables, and premium receivables on financial guarantee insurance contracts. Mortgage loans are recognized as assets at principal (or cost if bought at a discount/premium) and carried at amortized cost with an allowance for expected credit losses under Topic 326-20; reinsurance recoverables must be reported gross as assets (no netting against related liabilities absent a legal right of setoff). For financial guarantee contracts with installment premiums, the premium receivable is measured at the present value of premiums expected to be collected using a risk-free rate at inception, with the discount accreted to earnings.", "key_points": [ "Mortgage loans shall be recognized as assets (944-310-25-1), measured initially at outstanding principal if acquired at par or at cost if purchased at a discount or premium (944-310-30-1), and subsequently at outstanding principal or amortized cost with an allowance for estimated uncollectible amounts (944-310-35-1).", "Realized gains and losses on mortgage loan investments are reported pretax in other income in the statement of earnings (or disclosed in the notes), amortization goes to investment income, and changes in the allowance for credit losses follow Subtopic 326-20 (944-310-45-1 through 45-4; 944-310-50-1).", "Ceding entities must report estimated reinsurance recoverables separately as assets for both assumption-and-novation contracts and contracts where the ceding entity is not relieved of legal liability to the policyholder (944-310-25-2; 944-310-45-5).", "No single valuation method is prescribed for reinsurance recoverables; disputed amounts are contingent losses under Subtopic 450-20, while expected credit losses on recoverables follow Subtopic 326-20 (944-310-35-4).", "Receivables and payables between a ceding entity and an individual reinsurer may be offset only if a legal right of setoff exists under Subtopic 210-20, even for affiliates (though affiliate amounts are eliminated in consolidation) (944-310-45-7).", "For installment-premium financial guarantee insurance contracts, the premium receivable equals the present value of premiums due or expected to be collected discounted at the risk-free rate at inception over the contract period, with the discount accreted through earnings (944-310-25-3; 944-310-30-2).", "An expected (shorter) period may be used only if a homogenous pool of contractually prepayable assets underlies the insured obligation and prepayments are probable and reasonably estimable; this is an entity-wide accounting policy election, and changes in prepayment assumptions adjust premium receivable and unearned premium revenue by equal amounts with no earnings effect, updating the discount rate to a current risk-free rate (944-310-30-3; 944-310-35-5)." ], "categories": [ "Recognition", "Initial measurement", "Subsequent measurement", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Exam traps here are the gross-reporting rule for reinsurance recoverables (you cannot net them against reserves unless a legal right of setoff exists) and the fact that a change in prepayment assumptions on a financial guarantee premium receivable is a balance-sheet-only adjustment—the offsetting change to unearned premium revenue means no gain or loss at the date of change, only a revised revenue pattern going forward.", "related_topics": [ "944-605", "944-40", "944-20", "326-20", "210-20", "450-20" ], "key_concepts": [ "mortgage loan receivables", "reinsurance recoverable", "premium receivable", "financial guarantee insurance contract", "unearned premium revenue", "risk-free discount rate accretion", "prepayment assumptions", "right of setoff" ] } ``` Source downloaded (UTC): 2026-09-09T23:29:42.889Z to 2026-09-09T23:29:42.889Z Record version: sha256:3e817be3a6538d412104ed0b053496cb35602ca14d64c37739cab25a78af0c4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/944/#00-status) SEC content: no ##### [310-944-00-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:42.889Z to 2026-09-09T23:29:42.889Z Record version: sha256:61b8b31063f5f46e8d29cb0da5f399294a16270c8012c94b4502a2fa26cdac04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Reinsurance RecoverableAddedAccounting Standards Update No. 2016-1912/14/2016
944-310-05-1AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-05-2AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-25-2AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-35-3AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-35-4AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-35-4AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-35-6AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-45-1AmendedAccounting Standards Update No. 2018-0907/16/2018
944-310-45-2AmendedAccounting Standards Update No. 2018-0907/16/2018
944-310-45-4AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-45-4ASupersededAccounting Standards Update No. 2016-1306/16/2016
944-310-45-5AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-45-6AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-50-1AmendedAccounting Standards Update No. 2018-0907/16/2018
944-310-50-2AmendedAccounting Standards Update No. 2016-1912/14/2016
Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:03b71054738ebfe5d4d209f0ade9e70ae202f31b2114ee421489d216c8cadb33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/944/#05-overview-and-background) SEC content: no ##### [310-944-05-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:4c35d6ed7937b02454d7ca53e7fced520853d99eef552172a755f06e1f979a8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to insurance entities on accounting for and financial reporting of receivables, including mortgage loan receivables and [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."). The guidance in this Subtopic is provided in the following three Subsections: 1. a General 2. b [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.") Contracts 3. c Financial Guarantee Insurance Contracts. ### Reinsurance Contracts ##### [310-944-05-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:368ba664ccb1cfeda6424610f10318ce87ec9d5cbb6b93e1f151527b6e63fccc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.") Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting 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."). ### Financial Guarantee Insurance Contracts ##### [310-944-05-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:d206eb9cfa29e95754f4ddbfd089783be7f35426e80463a3a4ef53dda9c90d71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Financial Guarantee Insurance Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of premium receivable for financial guarantee insurance contracts. Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:8174d3d8890bae96c1c333037d9a27ec242ecbf6258b335224ea82c80017a9a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/944/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-944-15-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:da9e6334945cbaf94074c05a988345a8b153b5dde2e31593a9301b0d2650f6e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15. ### Reinsurance Contracts ##### [310-944-15-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:7bda3c1708b9ad7de659c7578c801ca286ac16cf1eaba03d2e608a1c500f4f3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.") Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below. #### Instruments ##### [310-944-15-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:dbc95bb0a60ad5e0b00c8bde7d3182e41a854e3c59ee62f76c537dfe9148b8df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to reinsurance contracts. For guidance on identifying a reinsurance contract, see the [Reinsurance Contracts Subsection](https://asc.understandingaccounting.org/asc/944/20/#15-scope-and-scope-exceptions) of Section 944-20-15. ### Financial Guarantee Insurance Contracts ##### [310-944-15-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:b9d8afd45a1a657f1fee3babd40cab8a944fc3cbf2dd35d2c6b2817fd658deaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Financial Guarantee Insurance Contracts Subsections of this Subtopic applies to all financial guarantee insurance contracts. For guidance in identifying a financial guarantee insurance contract, see the Financial Guarantee Insurance Contracts Subsection of Section 944-20-15. Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:de99a205770c4af9f23c18c86b03284a2aca3a5ffaec2c6e8b38e530a83d0841 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/944/#25-recognition) SEC content: no #### Mortgage Loans ##### [310-944-25-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:12f9bc12bf99284367a9520cdab1a92cea68f984e4c05aa4dfe535acaae953bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mortgage loans shall be recognized as assets. ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-25-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:0a44ae28edf072355695d65cc3c7113df1a968b2df3f02bd7904f10b5fe21764 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Ceding entities shall report separately as assets estimated [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.") arising from both of the following types of contracts: 1. a [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.") contracts that are legal replacements of one insurer by another (often referred to as assumption and novation) 2. b Reinsurance contracts in which a [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.") is not relieved of the legal liability to its policyholder. ### Financial Guarantee Insurance Contracts ##### [310-944-25-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:02bdd0de91bad95a6d9e8a146135f3bede4c9458d8272f9b6b80f2d138395d3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-605-30-7](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-7) states that if the premiums are received as payments over the period of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at an amount equal to the present value of the premiums due or expected to be collected over the period of the financial guarantee insurance contract. Example 1 in Section 944-605-55 (see paragraph [944-605-55-16](https://asc.understandingaccounting.org/asc/605/944/#605-944-55-16)) illustrates the application of this paragraph. Paragraph [944-310-30-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-2) provides guidance on the discount rate and the period used. Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:ad32f99464644b144bd6fc13419213e64748b08e386dbdde2c32639320fb7ce6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/944/#30-initial-measurement) SEC content: no #### Mortgage Loans ##### [310-944-30-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:27bed0634e16d13341993ab374e16fb827d5c141b3a8450e333f03db56ec56e5 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 initially at outstanding principal balances if acquired at par value, or at cost if purchased at a discount or premium. ### Financial Guarantee Insurance Contracts #### Receivable for Future Premiums ##### [310-944-30-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:7a957a5f1823526276aa4e5d82b138dce0b08ab541dd4a6cb46b7025fd25b1c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An insurance entity shall determine the present value of the premiums due or expected to be collected using a discount rate that reflects the risk-free rate at the inception of the contract. The risk-free rate shall be based on the contract period of the insurance contract unless the insurance entity is permitted to consider prepayments pursuant to the following paragraph. The discount amount shall be accreted on the premium receivable through earnings over that same period. Example 1 (see paragraph [944-310-55-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-1)) illustrates application of this guidance including the method of accretion. ##### [310-944-30-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:5e07d77c7575f6d504472440c2ed7773c22fba139c2bee16caefa9cd294de476 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The period of a financial guarantee insurance contract is the expected period of risk that generally equates to the contract period. However, in some instances, the expected period of risk is significantly shorter than the full contract period due to expected prepayments. The expected period may be used only if a homogenous pool of assets underlying the insured financial obligation is contractually prepayable. In those instances, prepayment assumptions may be used to determine an expected period if those prepayments are probable and the timing and amount of prepayments can be reasonably estimated. The election to use prepayment assumptions to determine an expected period is an accounting policy decision (that is, it is not a contract-by-contract election). 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. Source downloaded (UTC): 2026-09-09T23:30:06.079Z to 2026-09-09T23:30:06.079Z Record version: sha256:48d6acf5e38f7b380e5e0f8b80b844b04904b56ef7a3ffcf4ce736f29528bb80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/944/#40-derecognition) SEC content: no #### Mortgage Loans ##### [310-944-40-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:06.079Z to 2026-09-09T23:30:06.079Z Record version: sha256:dee0329edfd94756bb4c83b96370246ad2657c14ba87b34bfbf034d54f098bb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-325-40-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-40-1) states that realized gains and losses shall not be deferred, either directly or indirectly. Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:514251fa0360cceee5de2f8ff5e2989a1b5e6f5f79d04a1195458d13346c60b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/944/#45-other-presentation-matters) SEC content: no #### Mortgage Loans ##### [310-944-45-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:9b27f83c7ef8e93d977e075f3ed6d610aacdb5c83983a6b9bc4c9b06f0837e5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Realized gains and losses on investments in mortgage loans (except those that are accounted for as either hedges of net investments in foreign operations \[see Subtopic 815-35\] or cash flow hedges \[see Subtopic 815-30\]) shall be reported in the statement of earnings as a component of other income, on a pretax basis. ##### [310-944-45-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:e990c25db61cb66f5bba652b12ec94d3d7627fd826484f5a7cb4f96bf1ef5ca0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If not presented as a separate item in the statement of earnings, realized gains and losses shall be disclosed in the notes to financial statements (see paragraph [944-310-50-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-1)). ##### [310-944-45-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:75331a5ae9116a43392969bd1cb23a600a7ff112fced2da625f7ded4711c2558 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amortization and other related charges or credits shall be charged or credited to investment income. ##### [310-944-45-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:9d97ad8424651ff8fafa45ef42ab2cf1335e3dde69f19701d865b1e74e92a723 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [310-944-45-4A](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-4A) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:d05c40f5f8cf2ac93c58321e2c39372df7b32fc4d532dd8694a769b66b3ff8b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-45-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:f9c3469588eda045e92eb25a8e0f6232ad206441156abe24e55c186359448e17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [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 report an estimated [reinsurance recoverable](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.") arising from those contracts described in paragraph [944-310-25-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-2) separately as an asset. ##### [310-944-45-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:9bac7f0c61cbbb7772c37d2599f3515351894c7121f9df2d44f72f02c7eb4f1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although amounts recoverable on unasserted claims shall be reported as reinsurance recoverables, details of the amounts comprising reinsurance recoverables may be presented separately. ##### [310-944-45-7](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:0e84893f86dee392b72ed5c729455d10aaf94e3b346b49d199cd98b061298b57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts receivable and payable between the ceding entity and an individual [reinsurer](https://asc.understandingaccounting.org/glossary/r/#reinsurer "The assuming entity in a reinsurance transaction.") shall be offset only if a legal right of setoff exists as defined in Subtopic 210-20, even if the ceding entity and reinsurer are affiliated entities. However, if the ceding entity and reinsurer are affiliated entities, the amounts shall be eliminated in consolidation when the affiliated entities are included in consolidated financial statements. Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:bfd7e3c584c58a4ba38424f64530e20f65a2282235b60a9cca717e44ce238564 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/944/#50-disclosure) SEC content: no #### Mortgage Loans ##### [310-944-50-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:5117815c4a31b5d214d53f91da7a66e513bb0543dc170e7a5dc4626476c9d0e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If realized gains and losses are not presented as a separate item in the statement of earnings, they shall be disclosed in the notes to financial statements. ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-50-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:5a2efa74cc7a1e02753c5f4abb1fe4186488dc77008b55d1e3f753ecf8e59548 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-310-45-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-6) states that, although amounts recoverable on unasserted claims shall be reported as [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."), details of the amounts comprising reinsurance recoverables may be presented separately. ### Financial Guarantee Insurance Contracts ##### [310-944-50-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:999b9eac4771c7d2982e1befa93284ca8dcf0c09972cb55cfece0ebd81be2e80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To meet the disclosure objective in paragraph [944-20-50-7](https://asc.understandingaccounting.org/asc/944/20/#944-20-50-7), an insurance entity shall disclose all of the following information for each annual period and interim period: 1. a For financial guarantee insurance contracts where premiums are received as payments over the period of the contract, rather than at inception, all of the following: 1. 1 The premium receivable as of the date(s) of the statement of financial position and the line item in the statement of financial position where the amount is reported (if not presented separately) 2. 2 The unearned premium revenue as of the date(s) of the statement of financial position and the line item in the statement of financial position where the amount is reported (if not presented separately) 3. 3 The amount of accretion on the premium receivable and the line item in the statement of income where that amount is reported (if not presented separately) 4. 4 The weighted-average risk-free rate used to discount the premiums expected to be collected 5. 5 The weighted-average period of the premium receivable. 2. b A schedule of premiums expected to be collected related to the premium receivable detailing both of the following: 1. 1 The four quarters of the subsequent annual period and each of the next four annual periods 2. 2 The remaining periods aggregated in five-year increments. 3. c A rollforward of the premium receivable for the period, including all of the following: 1. 1 The beginning premium receivable 2. 2 Premium payments received 3. 3 New business written 4. 4 Adjustments to the premium receivable, including all of the following: 1. i Adjustments for changes in the period of a financial guarantee insurance contract 2. ii An explanation of why the adjustments in item (c)(4)(i) occurred 3. iii Accretion of the premium receivable discount 4. iv Other adjustments with explanations provided. 5. 5 The ending premium receivable. Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:847f0d0589f4dbaa0921acfe7f9dfeb312a95ab82fdc91c9d407539f9764d88e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/944/#55-implementation-guidance-and-illustrations) SEC content: no ### Financial Guarantee Insurance Contracts #### Illustrations ##### [310-944-55-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:13102a63eff80b499cfe38e5c92f5e812fc0743b1a8559f7b0213757bbd4f8bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the accounting when prepayment assumptions change and illustrates the resulting change to the expected period required by paragraph [944-310-35-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-5). This Example assumes that annual premiums are received as payments over the expected period of the financial guarantee insurance contract and further assumes all of the following: - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F02D2C57-AB60-47BB-BA63-10101BC184C3-low.gif) Key Facts: Total principal outstanding "$75,000,000" Premium rate "100 basis points, annually, received at the beginning of the period" Contract period 10 years Initial expected period 7 years Discount rate at inception 5% (a) (a) "For simplicity, the current risk-free discount rate has not been updated in this example when the prepayment assumptions change as required by paragraph 944-310-35-5. If the discount rate had changed at the time of the change in prepayment assumptions, that new discount rate would be used." ##### [310-944-55-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:8a1cedf627e2825b159aecb3378e40597b1d4d4cdf1f76d9a11c2399cebb43a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates all of the following, estimated at inception: 1. a The expected insured principal amounts outstanding during each period 2. b The expected insured principal payments 3. c The expected premium payments 4. d The present value of premiums expected. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-57EA8E3B-70AA-409B-BF39-63434F02ECCB-low.gif) Table 1 Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Payments" "Present Value of Premiums Expected" 1 " $75,000,000 " " $6,500,000 " " $750,000 " (a) " $750,000 " (b) 2 " 68,500,000 " " 7,800,000 " " 685,000 " " 652,381 " 3 " 60,700,000 " " 9,100,000 " " 607,000 " " 550,567 " 4 " 51,600,000 " " 11,700,000 " " 516,000 " " 445,740 " 5 " 39,900,000 " " 15,600,000 " " 399,000 " " 328,258 " 6 " 24,300,000 " " 15,600,000 " " 243,000 " " 190,397 " 7 " 8,700,000 " " 8,700,000 " " 87,000 " " 64,921 " 8 - - - - 9 - - - - 10 - - - - Total " $328,700,000 " " $75,000,000 " " $3,287,000 " " $2,982,264 " "Constant rate 0.0090729 ($2,982,264 ÷ $328,700,000)" (a) "Calculated as expected insured principal amount outstanding multiplied by the premium rate, which for Year 1 is $75,000,000 × 0.01 (100 basis points)." (b) "Calculated as the present value of the expected premium payments for the appropriate number of periods, which for Year 1 is $750,000 ÷ (1 + 0.05) t-1, where t represents the current year." ##### [310-944-55-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:f26615578460e968ff14401300eaa0e07cc9ea1f9e870ed2f875d3e40ecf8b37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The constant rate is calculated in the table in the preceding paragraph as the ratio of the present value of the premiums expected to be collected and the sum of all insured principal amounts outstanding during each reporting period. ##### [310-944-55-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:717e0a7ecbce330a71235365939d2f6feb34cee88ca2b86c817d925efa9cc972 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table presents the rollforward of the premium receivable from period to period. The premium receivable will decrease during the year as expected premium payments are received, and it will increase as a result of the accretion of the discount on the premium receivable each period that is recognized in earnings. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-FF91F9B2-BDBB-4A42-BB13-812F93ABB2C0-low.gif) Year "Premium Receivable at Beginning of Year" "Expected Premium Payments" "Accretion of Discount on Premium Receivable" "Premium Receivable at End of Year" 1 " $2,982,264 " " $750,000 " " $111,613 " (a) " $2,343,877 " (b) 2 " 2,343,877 " " 685,000 " " 82,944 " " 1,741,821 " 3 " 1,741,821 " " 607,000 " " 56,741 " " 1,191,562 " 4 " 1,191,562 " " 516,000 " " 33,778 " " 709,340 " 5 " 709,340 " " 399,000 " " 15,517 " " 325,857 " 6 " 325,857 " " 243,000 " " 4,143 " " 87,000 " 7 " 87,000 " " 87,000 " - - 8 - - - - 9 - - - - 10 - - - - Total " $3,287,000 " " $304,736 " (a) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payment multiplied by the discount rate, which for Year 1 is ($2,982,264 - $750,000) × 5%." (b) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payments, plus the accretion of the discount on the premium receivable, which for Year 1 is $2,982,264 - $750,000 + $111,613." ##### [310-944-55-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:e9e7bd44c0c29464053556c18565c6ed6a7f39b142cd2964eaeb0762f2a287c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates that the expected total revenue recognized each period will be the sum of the expected premium revenue recognized each period based on the constant rate of 0.0090729 and the accretion of the discount on the premium receivable each period. The depiction of _expected premium revenue recognized_ and _accretion of discount on premium receivable_ in the table is not intended to draw any conclusions about the presentation of these amounts in the statement of income. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-4786419C-F5FF-4892-82B2-36EAFD4BD862-low.gif) Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Revenue Recognized" "Accretion of Discount on Premium Receivable (b)" "Expected Total Revenue Recognized" 1 " $75,000,000 " " $6,500,000 " " $680,468 " (a) " $111,613 " " $792,081 " (c) 2 " 68,500,000 " " 7,800,000 " " 621,494 " " 82,944 " " 704,438 " 3 " 60,700,000 " " 9,100,000 " " 550,725 " " 56,741 " " 607,466 " 4 " 51,600,000 " " 11,700,000 " " 468,162 " " 33,778 " " 501,940 " 5 " 39,900,000 " " 15,600,000 " " 362,009 " " 15,517 " " 377,526 " 6 " 24,300,000 " " 15,600,000 " " 220,472 " " 4,143 " " 224,615 " 7 " 8,700,000 " " 8,700,000 " " 78,934 " - " 78,934 " 8 - - - - - 9 - - - - - 10 - - - - - Total " $328,700,000 " " $75,000,000 " " $2,982,264 " " $304,736 " " $3,287,000 " (a) "Calculated as the expected insured principal amount outstanding multiplied by the constant rate, which for Year 1 is $75,000,000 × 0.0090729." (b) See column titled Accretion of Discount on Premium Receivable in the table in paragraph 944-310-55-4. (c) "Calculated as the sum of the expected premium revenue recognized and the accretion of the discount on the premium receivable, which for Year 1 is $680,468 + $111,613." ##### [310-944-55-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:f3d9ec5e3dba747cc101b4a3beeb5b5a778f5074ab9bab74472d0f4c8cef4c7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the reduction of the unearned premium revenue due to the recognition of premium revenue during each reporting period. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-5A51D8BD-380A-49AF-9B5B-71A87057FFE2-low.gif) Year "Beginning Unearned Premium Revenue" "Expected Premium Revenue Recognized (a)" "Ending Unearned Premium Revenue" 1 " $2,982,264 " " $680,468 " " $2,301,796 " (b) 2 " 2,301,796 " " 621,494 " " 1,680,302 " 3 " 1,680,302 " " 550,725 " " 1,129,577 " 4 " 1,129,577 " " 468,162 " " 661,415 " 5 " 661,415 " " 362,009 " " 299,406 " 6 " 299,406 " " 220,472 " " 78,934 " 7 " 78,934 " " 78,934 " - 8 - - - 9 - - - 10 - - - Total " $2,982,264 " (a) See column titled Expected Premium Revenue Recognized in the table in paragraph 944-310-55-5. (b) "Calculated as the beginning unearned premium revenue balance less the expected premium revenue recognized during the period, which for Year 1 is $2,982,264 - $680,468." ##### [310-944-55-7](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:af2d1fbce1676d6bbaed20f27e406ba3380db29e7703a0ad770a6b96cdc1340d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the beginning of Year 3, the insurance entity estimates that prepayments will differ from its initial assumptions. Its new estimate is that the expected period is nine years from inception (the change represents a change in assumptions and not a change due to an error, which would be accounted for in accordance with Topic 250). ##### [310-944-55-8](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:da30450e657d23ad0794e0ad07eb80026ef328a299de3ee58a964356bcd6f249 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-2) as if the new prepayment assumptions were used from inception. The constant rate calculated in the table is not the new constant rate, but, rather, is presented here to assist in understanding the calculations necessary to determine the adjustment. For simplicity, the discount rate has not been updated when the prepayment assumptions change as required by paragraph [944-310-35-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-5). If the discount rate had changed at the time of the change in prepayment assumptions, that new discount rate would be used. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-7E460698-63CB-49A7-8F0A-B3A32D8CA650-low.gif) Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Payments" "Present Value of Premiums Expected" 1 " $75,000,000 " " $6,500,000 " " $750,000 " (a) " $750,000 " (b) 2 " 68,500,000 " " 7,800,000 " " 685,000 " " 652,381 " 3 " 60,700,000 " " 5,350,000 " " 607,000 " " 550,567 " 4 " 55,350,000 " " 7,450,000 " " 553,500 " " 478,134 " 5 " 47,900,000 " " 11,600,000 " " 479,000 " " 394,074 " 6 " 36,300,000 " " 11,600,000 " " 363,000 " " 284,420 " 7 " 24,700,000 " " 8,450,000 " " 247,000 " " 184,315 " 8 " 16,250,000 " " 8,250,000 " " 162,500 " " 115,486 " 9 " 8,000,000 " " 8,000,000 " " 80,000 " " 54,148 " 10 - - - - Total " $392,700,000 " " $75,000,000 " " $3,927,000 " " $3,463,525 " "Constant rate 0.00881977 ($3,463,525 ÷ $392,700,000)" (a) "Calculated as expected insured principal amount outstanding multiplied by the premium rate, which for Year 1 is $75,000,000 × 0.01 (100 basis points)." (b) "Calculated as the present value of the expected premium payments for the appropriate number of periods, which for Year 1 is $750,000 ÷ (1 + 0.05) t-1, where t represents the current year." ##### [310-944-55-9](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:9f9432c2a28286e18811e7aa62ce98f641c3a47c38a2b4447b4dd6f38be83a51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-4) as if the new prepayment assumptions were used from inception. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-0F12EF47-085A-4226-89EC-041BCA2FBC06-low.gif) Year "Premium Receivable at Beginning of Year" "Expected Premium Payments" "Accretion of Discount on Premium Receivable" "Premium Receivable at End of Year" 1 " $3,463,525 " " $750,000 " " $135,676 " (a) " $2,849,201 " (b) 2 " 2,849,201 " " 685,000 " " 108,210 " " 2,272,411 " 3 " 2,272,411 " " 607,000 " " 83,270 " " 1,748,681 " 4 " 1,748,681 " " 553,500 " " 59,759 " " 1,254,940 " 5 " 1,254,940 " " 479,000 " " 38,797 " " 814,737 " 6 " 814,737 " " 363,000 " " 22,587 " " 474,324 " 7 " 474,324 " " 247,000 " " 11,366 " " 238,690 " 8 " 238,690 " " 162,500 " " 3,810 " " 80,000 " 9 " 80,000 " " 80,000 " - - 10 - - - - Total " $3,927,000 " " $463,475 " (a) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payment multiplied by the discount rate, which for Year 1 is ($3,463,525 - $750,000) × 5%." (b) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payments, plus the accretion of the discount on the premium receivable, which for Year 1 is $3,463,525 - $750,000 + $135,676." ##### [310-944-55-10](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:7129a99315ed392be90a34d53138cfe4ef358f2dae5703405c13ced37d429bbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-5) as if the new prepayment assumptions were used from inception. The depiction of _expected premium revenue recognized_ and _accretion of discount on premium receivable_ in the table is not intended to draw any conclusions about the presentation of these amounts in the statement of income. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-3183908A-4532-4069-9638-225C5AF50EA0-low.gif) Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Revenue Recognized" "Accretion of Discount on Premium Receivable (b)" "Expected Total Revenue Recognized" 1 " $75,000,000 " " $6,500,000 " " $661,483 " (a) " $135,676 " " $797,159 " (c) 2 " 68,500,000 " " 7,800,000 " " 604,155 " " 108,210 " " 712,365 " 3 " 60,700,000 " " 5,350,000 " " 535,360 " " 83,270 " " 618,630 " 4 " 55,350,000 " " 7,450,000 " " 488,175 " " 59,759 " " 547,934 " 5 " 47,900,000 " " 11,600,000 " " 422,467 " " 38,797 " " 461,264 " 6 " 36,300,000 " " 11,600,000 " " 320,158 " " 22,587 " " 342,745 " 7 " 24,700,000 " " 8,450,000 " " 217,848 " " 11,366 " " 229,214 " 8 " 16,250,000 " " 8,250,000 " " 143,321 " " 3,810 " " 147,131 " 9 " 8,000,000 " " 8,000,000 " " 70,558 " - " 70,558 " 10 - - - - - Total " $392,700,000 " " $75,000,000 " " $3,463,525 " " $463,475 " " $3,927,000 " (a) "Calculated as the expected insured principal amount outstanding multiplied by the constant rate, which in Year 1 is $75,000,000 × 0.00881977." (b) "See column titled Accretion of Discount on Premium Receivable in the table in paragraph 944-310-55-9." (c) "Calculated as the sum of expected premium revenue recognized and the accretion of the discount on the premium receivable, which for Year 1 is $661,483 + $135,676." ##### [310-944-55-11](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:d2bb0edee0999c88a13a2c8fd48d4a72eb9c0c246a3e69b3dabfc3cb67cde9ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-6) as if the new prepayment assumptions were used from inception. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-CEF88900-B885-457B-A524-FA0667520F3F-low.gif) Year "Beginning Unearned Premium Revenue" "Expected Premium Revenue Recognized (a)" "Ending Unearned Premium Revenue" 1 " $3,463,525 " " $661,483 " " $2,802,042 " (b) 2 " 2,802,042 " " 604,155 " " 2,197,887 " 3 " 2,197,887 " " 535,360 " " 1,662,527 " 4 " 1,662,527 " " 488,175 " " 1,174,352 " 5 " 1,174,352 " " 422,467 " " 751,885 " 6 " 751,885 " " 320,158 " " 431,727 " 7 " 431,727 " " 217,848 " " 213,879 " 8 " 213,879 " " 143,321 " " 70,558 " 9 " 70,558 " " 70,558 " - 10 - - - Total " $3,463,525 " (a) See column titled Expected Premium Revenue Recognized in the table in paragraph 944-310-55-10. (b) "Calculated as the beginning unearned premium revenue balance less expected premium revenue recognized during the period, which for Year 1 is $3,463,525 - $661,483." ##### [310-944-55-12](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:675040c86465e86a74912e082c56b6f98a55b5d543d838fcb4a0774885014f68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Based on the new constant rate, the adjustment to the premium receivable and unearned premium revenue is an increase of $530,590 (calculated as the premium receivable end-of-year balance in Year 2 using the updated prepayment assumptions \[$2,272,411 from the table in paragraph [944-310-55-9](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-9)\] less the premium receivable end-of-year balance in Year 2 using the initial prepayment assumptions \[$1,741,821 from the table in paragraph [944-310-55-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-4)\]). ##### [310-944-55-13](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:71f8cca3a19314de461882d844a566df5447c99bfda3d1a9df527934d21920af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following calculation illustrates how the unearned premium revenue balance is determined at the beginning of Year 3. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-8EB3B37E-AC72-4B62-B34C-6F9A5471A134-low.gif) Beginning unearned premium revenue using original assumptions " $2,982,264 " (a) "Less: Premium revenue recognized to date in Years 1 and 2" " $1,301,962 " (b) Adjustment for change in prepayment assumptions " $530,590 " (c) "Adjusted unearned premium revenue at beginning of Year 3" " $2,210,892 " Sum of all expected insured principal amounts outstanding during each reporting period for Years 3-9 " $249,200,000 " (d) New constant rate 0.00887196 (e) (a) See column titled Present Value of Premiums Expected in the table in paragraph 944-330-55-2. (b) "Calculated as $680,468 + $621,494 (expected premium revenue recognized in Years 1 and 2 in the table in paragraph 944-310-55-5)." (c) See calculation in paragraph 944-310-55-12. (d) "Calculated as the sum of all insured principal amounts outstanding for Years 3-9 in the table in paragraph 944-310-55-8 ($60,700,000 + $55,350,000 + $47,900,000 + $36,300,000 + $24,700,000 + $16,250,000 + $8,000,000)." (e) "Calculated as the adjusted unearned premium revenue at the beginning of Year 3 divided by the sum of all expected insured principal amounts outstanding during each reporting period for Years 3 through 9, which equals $2,210,892 ÷ $249,200,000." ##### [310-944-55-14](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:3340354cd7387b65dcf41c9b77ed8748f6e405d9060be9e814898e394b5f86a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates both of the following: 1. a The actual premium revenue recognized and discount accreted on the premium receivable for Years 1 and 2 2. b The revised expected premium revenue recognition and accretion on the premium receivable from Years 3-9 based on the new prepayment assumptions. The depiction of _expected premium revenue recognized_ and _accretion of discount on premium receivable_ in the table is not intended to draw any conclusions about the presentation of these amounts in the statement of income. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-078B42D4-6412-4860-8348-FE112013B10F-low.gif) Year "Premium Revenue Recognized" "Accretion of Discount on Premium Receivable" "Expected Premium Revenue Recognized" "Accretion of Discount on Premium Receivable" "Total Revenue Recognized" 1 " $680,468 " " $111,613 " " $792,081 " 2 " 621,494 " " 82,944 " " 704,438 " 3 " $538,528 " (a) " $83,270 " " 621,798 " 4 " 491,063 " " 59,759 " " 550,822 " 5 " 424,967 " " 38,797 " " 463,764 " 6 " 322,052 " " 22,587 " " 344,639 " 7 " 219,137 " " 11,366 " " 230,503 " 8 " 144,169 " " 3,810 " " 147,979 " 9 " 70,976 " - " 70,976 " 10 - - - Total " $1,301,962 " " $194,557 " " $2,210,892 " " $219,589 " " $3,927,000 " (a) "Calculated as the insured principal amount outstanding multiplied by the new constant rate, which for Year 3 is $60,700,000 × 0.00887196." Source downloaded (UTC): 2026-09-09T23:30:18.988Z to 2026-09-09T23:30:40.180Z Record version: sha256:e6d05f03e65225ff3652ae25c93265add20e6a5b78c668acde8635c91d2098ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-946: Receivables — Financial Services—Investment Companies ### Machine-generated study aids ```json { "summary": "This Subtopic governs how an investment company presents receivables in its statement of assets and liabilities. Receivables must be listed separately at net realizable value by category — dividends and interest, investment securities sold, capital stock sold, and other accounts receivable (including related-party and affiliate expense-reimbursement receivables and variation margin on open futures contracts). Foreign-currency-denominated receivables are translated into the functional currency at current exchange rates and may be grouped with the corresponding functional currency receivables.", "key_points": [ "This Subtopic addresses an investment company's accounting for receivables (310-946-05-1) and follows the scope of Section 946-10-15 (310-946-15-1).", "Receivables shall be listed separately at net realizable value for categories including dividends and interest, investment securities sold, and capital stock sold (310-946-45-1(a)-(c)).", "Other accounts receivable — such as receivables from related parties, expense reimbursement receivables from affiliates, and variation margin on open futures contracts — must also be shown separately (310-946-45-1(d)).", "The listed categories are illustrative ('among others'), so other material receivable types warrant separate presentation as well (310-946-45-1).", "Receivables denominated in foreign currencies shall be converted into the functional currency at current exchange rates and may be categorized with the corresponding functional currency receivables (310-946-45-2)." ], "categories": [ "Presentation", "Industry-specific", "Foreign currency", "Subsequent measurement" ], "audience_level": "intermediate", "student_note": "This is a short, presentation-focused subtopic: the exam point is the required disaggregation of investment company receivables at net realizable value, not a separate measurement or impairment model. A common misunderstanding is thinking the four listed categories are exhaustive — the text says \"among others,\" so other significant receivables (e.g., affiliate reimbursements) also get their own line.", "related_topics": [ "946-10", "946-210", "830-20", "310-10", "850-10" ], "key_concepts": [ "investment company receivables", "net realizable value", "statement of assets and liabilities", "dividends and interest receivable", "receivable for securities sold", "capital stock sold receivable", "variation margin", "foreign currency translation at current rates" ] } ``` Source downloaded (UTC): 2026-09-09T23:30:18.988Z to 2026-09-09T23:30:18.988Z Record version: sha256:f66ceeb9e64d1b44879b8a8992b2653d705f51a41d1858edc1d3785120356331 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-946-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/946/#05-overview-and-background) SEC content: no ##### [310-946-05-1](https://asc.understandingaccounting.org/asc/310/946/#310-946-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:18.988Z to 2026-09-09T23:30:18.988Z Record version: sha256:ab437f8254fc489b7f5873d18e7bfbf0dec54626ad4e21b3f390733937420877 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses an investment company's accounting for receivables. Source downloaded (UTC): 2026-09-09T23:30:23.092Z to 2026-09-09T23:30:23.092Z Record version: sha256:7df5f58e3627a013837a5ca9f660ded15604d6fab434bf499c123bd2913d5377 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-946-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/946/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-946-15-1](https://asc.understandingaccounting.org/asc/310/946/#310-946-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:23.092Z to 2026-09-09T23:30:23.092Z Record version: sha256:8325cb74a2bca0c1c6cee00fa5b20bbb993b9cd854e7142633b0f17dd7631206 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 946-10-15. Source downloaded (UTC): 2026-09-09T23:30:29.522Z to 2026-09-09T23:30:29.522Z Record version: sha256:fefb5626ab81b861fa9ad6ad5741f3479f5a52b0cd4308add2ae17bd0549b18d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-946-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/946/#45-other-presentation-matters) SEC content: no #### Statement of Assets and Liabilities or Statement of Net Assets ##### [310-946-45-1](https://asc.understandingaccounting.org/asc/310/946/#310-946-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:29.522Z to 2026-09-09T23:30:29.522Z Record version: sha256:54ceb37ccaa6cc1da7de0f41eeb0a6b626dba54333097f84de927e5555fc104a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables shall be listed separately at net realizable value for all of the following categories, among others: 1. a Dividends and interest 2. b Investment securities sold 3. c Capital stock sold 4. d Other accounts receivable, such as receivables from [related parties](https://asc.understandingaccounting.org/glossary/r/#related-parties "Related parties include: Affiliates of the entity Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management Principal owners of the entity and members of their immediate families Management of the entity and members of their immediate families Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests."), including expense reimbursement receivables from affiliates, and variation margin on open futures contracts. ##### [310-946-45-2](https://asc.understandingaccounting.org/asc/310/946/#310-946-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:29.522Z to 2026-09-09T23:30:29.522Z Record version: sha256:234fd18a65cfc1503cac66848ec83951582b9fef1ca60f66b3f77230865cdbf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables denominated in foreign currencies shall be converted into the functional currency at current exchange rates and may be categorized with the corresponding functional currency receivables. Source downloaded (UTC): 2026-09-09T23:30:33.053Z to 2026-09-09T23:30:33.053Z Record version: sha256:39219de6c78fa4b69ff94b83cbd4c7703a7d5257ef003c40fb1a454c6aa28818 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-946-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/946/#sec-00-status) SEC content: yes ##### [310-946-S00-1](https://asc.understandingaccounting.org/asc/310/946/#310-946-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:33.053Z to 2026-09-09T23:30:33.053Z Record version: sha256:75e0f1670e8d7338884ffb3e387faa9e49568cda70e7d47188d034ffd55c03ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
946-310-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
Source downloaded (UTC): 2026-09-09T23:30:36.093Z to 2026-09-09T23:30:36.093Z Record version: sha256:5663207c6e7871aeb931923f5036a63d3e004b596c741e599d8214b25fc835d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-946-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/946/#sec-50-disclosure) SEC content: yes #### Mortgage Loans on Real Estate and Interest Earned on Mortgages ##### [310-946-S50-1](https://asc.understandingaccounting.org/asc/310/946/#310-946-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:36.093Z to 2026-09-09T23:30:36.093Z Record version: sha256:7cb53ee8943c0af756b7cf7255a5066838d07872f7e669e1a39a66dba323ab5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [946-310-S99-1](https://asc.understandingaccounting.org/asc/310/946/#310-946-S99-1), Regulation S-X Rule 12-23, for the requirements of Schedule III—Mortgage Loans on Real Estate and Interest Earned on Mortgages for face-amount certificate investment companies. Source downloaded (UTC): 2026-09-09T23:30:40.180Z to 2026-09-09T23:30:40.180Z Record version: sha256:3d76d3309cb6cd7c23eda5d59b3ec8c26bead74194776bde55764ad8cc8cbc41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-946-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/310/946/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [310-946-S99-1](https://asc.understandingaccounting.org/asc/310/946/#310-946-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:40.180Z to 2026-09-09T23:30:40.180Z Record version: sha256:3d7bbdca2ce1daeb7d12c0a2f19d3eb0450acbb4d23a61a110ae9d7ab83b5480 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-23, Mortgage Loans on Real Estate and Interest Earned on Mortgages (17 CFR 210.12-23). - ![](https://asc.understandingaccounting.org/asc-img/GUID-184E866A-3CAD-495D-A8B4-D42350CBF17A-low.gif) Reg. § 210.12-23 Mortgage Loans on Real Estate and Interest Earned on Mortgages 1 Part 1—Mortgage loans on real estate at close of period Part 2—Interest earned on mortgages Column A Column B Column C Column D Column E Column F Column G " List by classification indicated below2,3,7" Prior liens2 " Carrying amount of mortgages 8,9,10,11" "Amount of principal unpaid at close of period" Amount of mortgages being foreclosed " Interest due and accrued at end of period6 " "Interest income earned applicable to period5" " (1) Total " " (2) Subject to delinquent interest4" Liens on: ………………. ……………. …………… ……………….. ………… …………..……. ……………………… Farms (total)………....... Residential (total)…………… ……………... ……………… …………….. ………………… ………… ……………….. ……………..………. Apartments and business (total)………...……… ……………… ……………… …………… …...…………… …………. ………...……… …………………….… Unimproved (total)…….... ……………… ……………… …………….. …………… …………. ………………… …………………….. Total12…………… ……………. …………….. …………… …………… …………… …………… …………… 1 All money columns shall be totaled. 2 "If mortgages represent other than first liens, list separately in a schedule in a like manner, indicating briefly the nature of the lien. Information need not be furnished as to such liens which are fully insured or wholly guaranteed by an agency of the United States Government." 3 "In a separate schedule classify by states in which the mortgaged property is located the total amounts in support of columns B, C, D and E." 4 "(a) Interest in arrears for less than 3 months may be disregarded in computing the total amount of principal subject to delinquent interest. (b) Of the total principal amount, state the amount acquired from controlled and other affiliates." 5 "In order to reconcile the total of column G with the amount shown in the profit and loss or income statement, interest income earned applicable to period from mortgages sold or canceled during period should be added to the total of this column." 6 "If the information required by columns F and G is not reasonably available because the obtaining thereof would involve unreasonable effort or expense, such information may be omitted if the registrant shall include a statement showing that unreasonable effort or expense would be involved. In such an event, state in column G for each of the above classes of mortgage loans the average gross rate of interest on mortgage loans held at the end of the fiscal period." 7 "Each mortgage loan included in column C in an amount in excess of $500,000 shall be listed separately. Loans from $100,000 to $500,000 shall be grouped by $50,000 groups, indicating the number of loans in each group." 8 "In a footnote to this schedule, furnish a reconciliation, in the following form, of the carrying amount of mortgage loans at the beginning of the period with the total amount shown in column C: Balance at beginning of period ........................................................................................................................... $ Additions during period: New mortgage loans ............................................................................................. $ Other (describe) ................................................................................................... $ Deductions during period: ...................................................................................... $ Collections of principal .......................................................................................... Foreclosures ........................................................................................................ Cost of mortgages sold .......................................................................................... Amortization of premium ........................................................................................ Other (describe) .................................................................................................... Balance at close of period ................................................................................................................................... $ " "If additions represent other than cash expenditures, explain. If any of the changes during the period result from transactions, directly or indirectly with affiliates, explain the bases of such transactions, and amounts involved. State the aggregate amount of mortgages (a) renewed and (b) extended. If the carrying amount of the new mortgages is in excess of the unpaid amount (not including interest) of prior mortgages, explain." 9 If any item of mortgage loans on real estate investments has been written down or reserved against pursuant to § 210.6-03 describe the item and explain the basis for the write-down or reserve. 10 State in a footnote to column C the aggregate cost for Federal income tax purposes. 11 "If the total amount shown in column C includes intercompany profits, state the bases of the transactions resulting in such profits and, if practicable, state the amounts thereof." 12 Summarize the aggregate amounts for each column applicable to § 210.6-06(1) and 6-06(5)(a). \[16 FR 348, Jan. 13, 1951, as amended at 16 FR 2655, Mar. 24, 1951; 83 FR 50208, Oct. 4, 2018\] Source downloaded (UTC): 2026-09-09T23:30:42.417Z to 2026-09-09T23:31:26.845Z Record version: sha256:c697e1284f722fa53ae29dd30e0765d6b218d1b95e135ca9a4fd9cdb22425d97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948: Receivables — Financial Services—Mortgage Banking ### Machine-generated study aids ```json { "summary": "This subtopic governs how mortgage banking entities account for mortgage loans and mortgage-backed securities, including classification as held for sale versus held for long-term investment, related origination fees and costs, and transactions with affiliates. Loans held for sale are carried at the lower of amortized cost basis or fair value through a valuation allowance charged to income, while loans held for long-term investment are carried at amortized cost basis with credit losses measured under Subtopic 326-20. Transfers between classifications require reversal in earnings of any previously recorded allowance and re-measurement under the new classification.", "key_points": [ "A mortgage loan may be classified as a long-term investment only if the entity has both the ability and the intent to hold it for the foreseeable future or until maturity, and the transfer occurs on the transfer date (310-948-25-1); such loans are measured at amortized cost basis (310-948-30-4).", "For loans held for resale, origination fees and direct loan origination costs are deferred until the loan is sold; for loans held for investment they are deferred and recognized as a yield adjustment under 310-20-35-18 and 310-20-35-21 through 35-26 (310-948-25-3).", "Mortgage loans held for sale are reported at the lower of amortized cost basis or fair value at the balance sheet date, with any excess of amortized cost over fair value recorded as a valuation allowance whose changes flow through net income; purchase discounts are not amortized as interest revenue while held for sale (310-948-35-1; 310-948-35-2).", "Fair value of loans held for sale is measured by type of loan (residential and commercial separately, on an aggregate or individual basis), with committed loans valued based on investor commitments and uncommitted loans valued in the principal or most advantageous market under Topic 820 (310-948-35-3).", "On transfer from held-for-long-term-investment to held-for-sale, the entity reverses any allowance for credit losses in earnings, transfers the loan at amortized cost basis, and then assesses whether a valuation allowance is needed; the reverse process applies for transfers into held-for-long-term-investment (310-948-35-2A; 310-948-35-5A).", "Mortgage loans to be sold to an affiliate are adjusted to the lower of amortized cost basis or fair value as of the date management decides the sale will occur, with the adjustment charged to income; loans originated exclusively for an affiliate are transferred at the originator's acquisition cost because the originator acts as agent (310-948-30-1; 310-948-30-2).", "After securitization qualifying as a sale under 860-10-40-5, MBS received as proceeds are classified under Topic 320, except that MBS committed to be sold before or during securitization must be classified as trading (310-948-40-1); the balance sheet must distinguish held-for-sale from held-for-investment loans, transfer-related allowance amounts must be presented gross, and the aggregate-or-individual method must be disclosed (310-948-45-1; 310-948-45-2; 310-948-50-1)." ], "categories": [ "Subsequent measurement", "Financial instruments", "Industry-specific", "Presentation" ], "audience_level": "intermediate", "student_note": "The classification decision (held for sale vs. held for long-term investment) drives everything: fee deferral, measurement basis, and whether you record a valuation allowance or a CECL allowance. A common misunderstanding is treating transfers between classifications as simple reclassifications — the prior allowance must be reversed in earnings and presented gross, not netted.", "related_topics": [ "310-20", "326-20", "320", "860-50", "815-25", "820" ], "key_concepts": [ "mortgage loans held for sale", "held for long-term investment", "lower of amortized cost basis or fair value", "valuation allowance", "loan origination fees and costs", "securitization and sale accounting", "transactions with affiliates", "mortgage servicing rights" ] } ``` Source downloaded (UTC): 2026-09-09T23:30:42.417Z to 2026-09-09T23:30:42.417Z Record version: sha256:5d2abc8a941c787e1d3ced076dc413b32792d5647d0ee8eac5a19f854e6ef4e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/948/#00-status) SEC content: no ##### [310-948-00-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:42.417Z to 2026-09-09T23:30:42.417Z Record version: sha256:5541631d88fb5e39e75d2c0b75db02b12e396e7ab393a3c8950f1332b8e87019 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
Most Advantageous MarketAddedAccounting Standards Update No. 2012-0410/01/2012
Principal MarketAddedAccounting Standards Update No. 2012-0410/01/2012
948-310-30-1AmendedAccounting Standards Update No. 2016-1306/16/2016
948-310-30-4AmendedAccounting Standards Update No. 2019-0404/25/2019
948-310-30-4AmendedAccounting Standards Update No. 2016-1306/16/2016
948-310-35-1AmendedAccounting Standards Update No. 2022-0103/28/2022
944-310-35-1 through 35-3
AmendedAccounting Standards Update No. 2016-1306/16/2016
948-310-35-1AAddedAccounting Standards Update No. 2022-0103/28/2022
948-310-35-2AAddedAccounting Standards Update No. 2019-0404/25/2019
948-310-35-3AmendedAccounting Standards Update No. 2012-0410/01/2012
948-310-35-3AAmendedAccounting Standards Update No. 2012-0410/01/2012
948-310-35-3AAmendedAccounting Standards Update No. 2009-1612/23/2009
948-310-35-5SupersededAccounting Standards Update No. 2016-1306/16/2016
948-310-35-5AAmendedAccounting Standards Update No. 2019-0404/25/2019
948-310-35-5AAddedAccounting Standards Update No. 2016-1306/16/2016
948-310-40-1AmendedAccounting Standards Update No. 2009-1612/23/2009
948-310-45-2AddedAccounting Standards Update No. 2019-0404/25/2019
948-310-50-1AmendedAccounting Standards Update No. 2016-1306/16/2016
Source downloaded (UTC): 2026-09-09T23:30:44.378Z to 2026-09-09T23:30:44.378Z Record version: sha256:c28c1decfd7c2ee1975e1f194606d87f367b1bd428bfe481b240ff23c1bd0da8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/948/#05-overview-and-background) SEC content: no ##### [310-948-05-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:44.378Z to 2026-09-09T23:30:44.378Z Record version: sha256:21757b8d30a584801b9425eeca4611e1bd1becc81fd22bc8666868fe1f973985 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses the accounting and reporting for mortgage loans, [mortgage-backed securities](https://asc.understandingaccounting.org/glossary/m/#mortgage-backed-securities "Securities issued by a governmental agency or corporation (for example, Government National Mortgage Association [GNMA] or Federal Home Loan Mortgage Corporation [FHLMC]) or by private issuers (for example, Federal National Mortgage Association [FNMA], banks, and mortgage banking entities). Mortgage-backed securities generally are referred to as mortgage participation certificates or pass-through certificates. A participation certificate represents an undivided interest in a pool of specific mortgage loans. Periodic payments on GNMA participation certificates are backed by the U.S. government. Periodic payments on FHLMC and FNMA certificates are guaranteed by those corporations, but are not backed by the U.S. government."), and related fees and costs. The Subtopic also provides measurement guidance for mortgage loan transactions with affiliates. Source downloaded (UTC): 2026-09-09T23:30:47.305Z to 2026-09-09T23:30:47.305Z Record version: sha256:20bb065ea064956406e76d1e30bf68ce17c1b7556c5c35138c53aa051ae18637 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/948/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-948-15-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:47.305Z to 2026-09-09T23:30:47.305Z Record version: sha256:db700956f8ae3f7c2637936bbb09d0c38af780567d4e62e32ea1ba86ebe03c87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 948-10-15. Source downloaded (UTC): 2026-09-09T23:30:53.875Z to 2026-09-09T23:30:53.875Z Record version: sha256:3f427842672813bf78504d15da3a9a2ef6cca1d7c06388006fb7233829641387 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/948/#25-recognition) SEC content: no #### Loans Held as Long-Term Investments ##### [310-948-25-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:53.875Z to 2026-09-09T23:30:53.875Z Record version: sha256:e3f8e0b804b047fb933117993710f14051b6af83e62d9057355228ed82d309d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A mortgage loan transferred to a long-term-investment classification shall be transferred on the transfer date. A mortgage loan shall not be classified as a long-term investment unless the [mortgage banking entity](https://asc.understandingaccounting.org/glossary/m/#mortgage-banking-entity "An entity that is engaged primarily in originating, marketing, and servicing real estate mortgage loans for other than its own account. Mortgage banking entities, as local representatives of institutional lenders, act as correspondents between lenders and borrowers.") has both the ability and the intent to hold the loan for the foreseeable future or until maturity. ##### [310-948-25-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:53.875Z to 2026-09-09T23:30:53.875Z Record version: sha256:f8e2eb7af53dbc19618e90ff3bfbe12767b33c762c85f5f0bed59ed4ecb2072e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Fees and Costs ##### [310-948-25-3](https://asc.understandingaccounting.org/asc/310/948/#310-948-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:53.875Z to 2026-09-09T23:30:53.875Z Record version: sha256:8088fe70d36f8090955f179e8d626c9effb2aa19720b001756fbae5f0cb0f795 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a loan is held for resale, loan origination fees and the direct loan origination costs as specified in Topic 310 shall be deferred until the related loan is sold. If a loan is held for investment, such fees and costs shall be deferred and recognized as an adjustment of yield as specified in paragraphs [310-20-35-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18), [310-20-35-21 through 35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-21) , and [310-20-50-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-50-2). ##### [310-948-25-4](https://asc.understandingaccounting.org/asc/310/948/#310-948-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:53.875Z to 2026-09-09T23:30:53.875Z Record version: sha256:6638ac948b4d78223fdbc9d95f3a3becfb53f9dac199c66f6d73d6958112d803 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees and costs associated with originating or acquiring or committing to originate or acquire loans for investment shall be accounted for as prescribed in Topic 310. ##### [310-948-25-5](https://asc.understandingaccounting.org/asc/310/948/#310-948-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:53.875Z to 2026-09-09T23:30:53.875Z Record version: sha256:ff3d725f9f495baff5791957a71eee9eff5235ececeeef5986bc6cf4b985d36a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Fees received for guaranteeing the funding of mortgage loans to borrowers, builders, or developers shall be accounted for as prescribed in paragraph [310-20-35-3](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-3). Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z Record version: sha256:50f234b71f9cd3fe6478231589dfeb45a99a30648184ac10cfec2b25ff446b1b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/948/#30-initial-measurement) SEC content: no #### Affiliated Transactions ##### [310-948-30-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z Record version: sha256:589c1a868ef7a92ad6789a057f7fdf37b0fc56dd4710fe920dbbaadddaeb78a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying amount of mortgage loans to be sold to an [affiliated entity](https://asc.understandingaccounting.org/glossary/a/#affiliated-entity "An entity that directly or indirectly controls, is controlled by, or is under common control with another entity; also, a party with which the entity may deal if one party has the ability to exercise significant influence over the other's operating and financial policies as discussed in Section 323-10-15.") shall be adjusted to the lower of amortized cost basis or fair value of the loans as of the date management decides that a sale to an affiliated entity will occur. The date shall be determined based on, at a minimum, formal approval by an authorized representative of the purchaser, issuance of a commitment to purchase the loans, and acceptance of the commitment by the selling entity. The amount of any adjustment shall be charged to income. ##### [310-948-30-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z Record version: sha256:cafa1ff5b5bfbac555a81925a1b605ddb0dfaf809e405f3915ac39efd8863170 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a particular class of mortgage loans or all loans are originated exclusively for an affiliated entity, the originator is acting as an agent of the affiliated entity, and the loan transfers shall be accounted for at the [originator's acquisition cost](https://asc.understandingaccounting.org/glossary/o/#originator-s-acquisition-cost "Costs incurred by a mortgage banking entity that originates mortgage loans for a lender that intends to hold the loans to maturity.The originator's acquisition cost is equal to the principal amount of the loan adjusted for unamortized net fees and costs and any unearned discounts or premiums."). Such an agency relationship, however, would not exist in the case of right of first refusal contracts or similar types of agreements or commitments if the originator retains all the risks associated with ownership of the loans. ##### [310-948-30-3](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z Record version: sha256:bdd76c72d3573b00383a852f6b93ec77fc419fcdb649c6b26ef62d6921a66901 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The originator's acquisition cost must conform to the provisions set forth in Topic 310. #### Loans Held as Long-Term Investments ##### [310-948-30-4](https://asc.understandingaccounting.org/asc/310/948/#310-948-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:57.679Z to 2026-09-09T23:30:57.679Z Record version: sha256:3f801084ad2834613f9bb9e80781dfbc646f932842fc31af150daed65165fa32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A mortgage loan classified as held-for-long-term-investment shall be measured at amortized cost basis. See Subtopic 326-20 for guidance on the measurement of credit losses for financial assets measured at amortized cost basis. Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:389841f4ad341f843d58dba0af7060dba4b3096831c5105ce113c7e4587f80f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/948/#35-subsequent-measurement) SEC content: no #### Loans Held for Sale ##### [310-948-35-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:7ba54515b2e869c23fed2a61b177fcebf7764c52e53b264b0939dbac1766bf33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mortgage loans held for sale shall be reported at the lower of amortized cost basis or fair value, determined as of the balance sheet date. If a mortgage loan has been the hedged item in a fair value hedge that is not a portfolio layer method hedge (as addressed in Topic 815), the loan's amortized cost basis used in lower-of-amortized-cost-basis-or-fair-value accounting shall reflect the effect of the adjustments of its carrying amount made pursuant to paragraph [815-25-35-1(b)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1). ##### [310-948-35-1A](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:6c451137ba99c8b5f317de7c57d0815940a0e3e5b3eb4820a479a878bed57948 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a mortgage loan that is held for sale is included in a closed portfolio hedged in an existing portfolio layer method hedge, the loan’s amortized cost basis used in lower-of-amortized-cost-basis-or-fair-value accounting shall not reflect the effect of the adjustments made pursuant to paragraph [815-25-35-1(c)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1). If that portfolio layer method hedge is discontinued pursuant to paragraphs [815-25-40-7A through 40-8](https://asc.understandingaccounting.org/asc/815/25/#815-25-40-7A) , the loan’s amortized cost basis used in lower-of-amortized-cost-basis-or-fair-value accounting shall reflect the effect of the adjustments of its carrying amount made pursuant to paragraphs [815-25-35-1(b)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1) and [815-25-40-9 through 40-9A](https://asc.understandingaccounting.org/asc/815/25/#815-25-40-9). ##### [310-948-35-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:e8a708c9748b2be3baa943792f83f90c1fc83cee8c8b394212ca417f462e7a08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount by which amortized cost basis exceeds fair value shall be accounted for as a valuation allowance. Changes in the valuation allowances shall be included in the determination of net income of the period in which the change occurs. Purchase discounts on mortgage loans shall not be amortized as interest revenue during the period the loans or securities are held for sale. ##### [310-948-35-2A](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-2A) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:e42c8e5bcc004ad713a90689ab667e067cffaec5f2233ad28718bd1781ed7204 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a mortgage loan that is transferred into the held-for-sale classification from the held-for-long-term-investment classification, an entity shall reverse in earnings any allowance for credit losses previously recorded on the mortgage loan held-for-long-term-investment at the transfer date. An entity shall then reclassify and transfer the mortgage loan into the held-for-sale classification at its amortized cost basis (which is reduced by any previous writeoffs but excludes any allowance for credit losses). An entity shall then determine if a valuation allowance is necessary by following the applicable guidance in this Subtopic. ##### [310-948-35-3](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:9eccb10ae8d750affb4f43b6b00f58c9970694711232932a3f027a486b98e397 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [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.") of mortgage loans and [mortgage-backed securities](https://asc.understandingaccounting.org/glossary/m/#mortgage-backed-securities "Securities issued by a governmental agency or corporation (for example, Government National Mortgage Association [GNMA] or Federal Home Loan Mortgage Corporation [FHLMC]) or by private issuers (for example, Federal National Mortgage Association [FNMA], banks, and mortgage banking entities). Mortgage-backed securities generally are referred to as mortgage participation certificates or pass-through certificates. A participation certificate represents an undivided interest in a pool of specific mortgage loans. Periodic payments on GNMA participation certificates are backed by the U.S. government. Periodic payments on FHLMC and FNMA certificates are guaranteed by those corporations, but are not backed by the U.S. government.") held for sale shall be measured by type of loan. At a minimum, the fair value of residential (one- to four-family dwellings) and commercial mortgage loans shall be measured separately. Either the aggregate or individual loan basis may be used in determining the lower of amortized cost basis or fair value for each type of loan. Fair value for loans subject to investor purchase commitments (committed loans) and loans held on a speculative basis (uncommitted loans) shall be measured separately as follows: 1. a Committed loans. Mortgage loans covered by investor commitments shall be based on the fair values of the loans. 2. b [Uncommitted loans](https://asc.understandingaccounting.org/glossary/u/#uncommitted-loans "A mortgage loan that does not meet the specific terms of a commitment or for which a reasonable doubt exists about the acceptance of the loan under a commitment."). Fair value for uncommitted loans shall be based on [principal market](https://asc.understandingaccounting.org/glossary/p/#principal-market "The market with the greatest volume and level of activity for the asset or liability.") or, in the absence of a principal market, in the [most advantageous market](https://asc.understandingaccounting.org/glossary/m/#most-advantageous-market "The market that maximizes the amount that would be received to sell the asset or minimizes the amount that would be paid to transfer the liability, after taking into account transaction costs and transportation costs.") (see paragraphs [820-10-35-5 through 35-6C](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-5)). That determination relies on the principles in Topic 820 and would include consideration of the following: 1. 1 Market prices and yields sought by market participants in the principal or most advantageous market 2. 2 Quoted [Government National Mortgage Association](https://asc.understandingaccounting.org/glossary/g/#government-national-mortgage-association "Often referred to as Ginnie Mae, GNMA is a U.S. governmental agency that guarantees certain types of mortgage-backed securities and provides funds for and administers certain types of low-income housing assistance programs.") (GNMA) security prices or other public market quotations for long-term mortgage loan rates 3. 3 [Federal Home Loan Mortgage Corporation](https://asc.understandingaccounting.org/glossary/f/#federal-home-loan-mortgage-corporation "Often referred to as Freddie Mac, FHLMC is a private corporation authorized by Congress to assist in the development and maintenance of a secondary market in conventional residential mortgages. FHLMC purchases mortgage loans and sells mortgages principally through mortgage participation certificates representing an undivided interest in a group of conventional mortgages. FHLMC guarantees the timely payment of interest and the collection of principal on the participation certificates.") (FHLMC) and [Federal National Mortgage Association](https://asc.understandingaccounting.org/glossary/f/#federal-national-mortgage-association "Often referred to as Fannie Mae, FNMA is an investor-owned corporation established by Congress to support the secondary mortgage loan market by purchasing mortgage loans when other investor funds are limited and selling mortgage loans when other investor funds are available.") (FNMA) current delivery prices. 3. c [Subparagraph superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/updates/asu-2012-04/). ##### [310-948-35-3A](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-3A) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:6d90928d144cdb0d4b753cad56b9589185197434efb18628b113bccaa014d24e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [948-310-40-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-40-1) states that, after the securitization of a mortgage loan held for sale that meets paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5)'s conditions for a sale, any mortgage-backed securities received by the transferor as proceeds shall be classified in accordance with the provisions of Topic 320. However, a [mortgage banking entity](https://asc.understandingaccounting.org/glossary/m/#mortgage-banking-entity "An entity that is engaged primarily in originating, marketing, and servicing real estate mortgage loans for other than its own account. Mortgage banking entities, as local representatives of institutional lenders, act as correspondents between lenders and borrowers.") shall classify as trading any retained mortgage-backed securities that it commits to sell before or during the securitization process. Paragraph [948-310-40-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-40-1) states that an entity is prohibited from reclassifying loans as investment securities unless the transfer of those loans meets paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5)'s conditions for sale accounting. #### Loans Held as Long-Term Investments ##### [310-948-35-4](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:e93412c5dd486b37099b47c7462d0db7685eba75de82ec415234f47a219d2960 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any difference between the carrying amount of the loan and its outstanding principal balance shall be recognized as an adjustment to yield by the interest method. The interest method shall be applied as set forth in paragraphs [310-20-35-18](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-18), [310-20-35-26](https://asc.understandingaccounting.org/asc/310/20/#310-20-35-26), and [310-20-50-2](https://asc.understandingaccounting.org/asc/310/20/#310-20-50-2). ##### [310-948-35-5](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:757975608616548697d4608f1d8e7e315f2a12a740f8b5e57f20d0f461620741 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [310-948-35-5A](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-5A) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:c4d84d1e7f1dbbe4b2927811cb5d50c6fa68b32039d24bb605b4db6d297cd9e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a mortgage loan that is transferred into the held-for-long-term-investment classification from the mortgage loans held-for-sale classification, an entity shall reverse in earnings any valuation allowance previously recorded on the mortgage loan held for sale at the transfer date. An entity shall then reclassify and transfer the mortgage loan into the held-for-long-term-investment classification at its amortized cost basis (which is reduced by any previous writeoffs but excludes any valuation allowance). An entity shall then determine if an allowance for credit losses is necessary by following the guidance in Subtopic 326-20. #### Other Considerations ##### [310-948-35-6](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:b41b940fadcb8d9f69fcbbc3ed2a48ffe13b1963745465970d109174f947cedc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Capitalized costs of acquiring rights to service mortgage loans, associated with the purchase or origination of mortgage loans (see paragraph [860-50-25-1](https://asc.understandingaccounting.org/asc/860/50/#860-50-25-1)), shall be excluded from the cost of mortgage loans for the purpose of determining the lower of cost or fair value. ##### [310-948-35-7](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:00.735Z to 2026-09-09T23:31:00.735Z Record version: sha256:22dd2e4be6c16c5ae336323814c496947f5f6f23cd009042261f66d28ee028eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a loan commitment expires without the loan being made or if a loan is repaid before the estimated repayment date, any related unrecognized fees shall be recognized as revenue or expense at that time. Source downloaded (UTC): 2026-09-09T23:31:03.745Z to 2026-09-09T23:31:03.745Z Record version: sha256:fe08dead982cc610331b6912d0fc93cef8281a1554900b1a564aea1da8553539 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/948/#40-derecognition) SEC content: no #### Securitization of a Mortgage Loan Held for Sale ##### [310-948-40-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:03.745Z to 2026-09-09T23:31:03.745Z Record version: sha256:9228cdbc10bd80ff06dcb1aeffa47b0fad21058384fe4a0b290c8cd4133c907d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After the securitization of a mortgage loan held for sale that meets paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5)'s conditions for a sale, any mortgage-backed securities received by the transferor as proceeds shall be classified in accordance with the provisions of Topic 320. However, paragraph [948-310-35-3A](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-3A) states that a mortgage banking entity must classify as trading any mortgage-backed securities received as proceeds that it commits to sell before or during the securitization process. An entity is prohibited from reclassifying loans as investment securities unless the transfer of those loans meets paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5)'s conditions for sale accounting. Source downloaded (UTC): 2026-09-09T23:31:06.792Z to 2026-09-09T23:31:06.792Z Record version: sha256:46075faf8512348692fef6cceb878a07f3bbe854f88f9dab66a4947085121015 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/948/#45-other-presentation-matters) SEC content: no ##### [310-948-45-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:06.792Z to 2026-09-09T23:31:06.792Z Record version: sha256:203dc4bdb6036c3bcf92a72e97620a5e21d22c2a650f5fb0b84680c16e387804 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Mortgage banking entities](https://asc.understandingaccounting.org/glossary/m/#mortgage-banking-entity "An entity that is engaged primarily in originating, marketing, and servicing real estate mortgage loans for other than its own account. Mortgage banking entities, as local representatives of institutional lenders, act as correspondents between lenders and borrowers.") using either a classified or unclassified balance sheet shall distinguish between mortgage loans held for sale and mortgage loans held for long-term investment. ##### [310-948-45-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:06.792Z to 2026-09-09T23:31:06.792Z Record version: sha256:061c8f22805324530f37f2773b70723aa87148cd1a4cec25d1ad05203e65a087 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall present the amounts reversed or established for the valuation allowance and the allowance for credit losses, as applicable, related to the transfer of a mortgage loan between classifications (see paragraphs [948-310-35-2A](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-2A) and [948-310-35-5A](https://asc.understandingaccounting.org/asc/310/948/#310-948-35-5A)) on a gross basis in the income statement. An entity may present those amounts on the income statement or in the notes to financial statements. Source downloaded (UTC): 2026-09-09T23:31:09.036Z to 2026-09-09T23:31:09.036Z Record version: sha256:d02a5b7ea317de95192a8cd917a109f90f5cd64774368e54db7b9b480f546d53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/948/#50-disclosure) SEC content: no ##### [310-948-50-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:09.036Z to 2026-09-09T23:31:09.036Z Record version: sha256:83d26827c7c5e2411b5f66be49c875014bcbf0129a76f8e610be347ae29bf9ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The method used in determining the lower of amortized cost basis or fair value of mortgage loans (that is, aggregate or individual loan basis) shall be disclosed. Source downloaded (UTC): 2026-09-09T23:31:10.835Z to 2026-09-09T23:31:10.835Z Record version: sha256:41979884208c6a4e320d4695bb1d4268afc9977f2b6569fed5a03b7c4da4d30c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/310/948/#60-relationships) SEC content: no #### Receivables ##### [310-948-60-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:10.835Z to 2026-09-09T23:31:10.835Z Record version: sha256:681f27444ae95f6dfda4ced8027808e369ea23a88eb39f4e761b284fba963669 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the accounting for fees and costs associated with originating or acquiring or committing to originate or acquire loans for investment, see Topic 310. #### Not-for-Profit Entities ##### [310-948-60-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:10.835Z to 2026-09-09T23:31:10.835Z Record version: sha256:5fe0a8877cc6b4edff2bf4dd3f1cbcd798cfb5505690214c4642a7647026aa1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For reporting of [mortgage-backed securities](https://asc.understandingaccounting.org/glossary/m/#mortgage-backed-securities "Securities issued by a governmental agency or corporation (for example, Government National Mortgage Association [GNMA] or Federal Home Loan Mortgage Corporation [FHLMC]) or by private issuers (for example, Federal National Mortgage Association [FNMA], banks, and mortgage banking entities). Mortgage-backed securities generally are referred to as mortgage participation certificates or pass-through certificates. A participation certificate represents an undivided interest in a pool of specific mortgage loans. Periodic payments on GNMA participation certificates are backed by the U.S. government. Periodic payments on FHLMC and FNMA certificates are guaranteed by those corporations, but are not backed by the U.S. government.") held by not-for-profit entities (NFPs), see Topic 958. Source downloaded (UTC): 2026-09-09T23:31:15.473Z to 2026-09-09T23:31:15.473Z Record version: sha256:cf0bdad33b0d91a8be2da5977b79346d1b4bdf3d555b1a823fae484749fa0bf7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/948/#sec-00-status) SEC content: yes ##### [310-948-S00-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:15.473Z to 2026-09-09T23:31:15.473Z Record version: sha256:2313535f7380aa518cb2e52aafa4c81b39e7b092fcb9fb301d2acbd6e7be9eb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
948-310-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
Source downloaded (UTC): 2026-09-09T23:31:19.341Z to 2026-09-09T23:31:19.341Z Record version: sha256:7a1d8f46bd42c7db144f06e4a28a0dc8980d325e84b170866257f91ea00689aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/948/#sec-50-disclosure) SEC content: yes #### Supplemental Schedule ##### [310-948-S50-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:19.341Z to 2026-09-09T23:31:19.341Z Record version: sha256:3788f3ee9d48a8e36b8f41325b1deca872a89e62916d8b4f3e2b75b07a12b19d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-6](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-6), Regulation S-X Rule 5-04(c), for the entities required to include Schedule IV—Mortgage Loans on Real Estate. ##### [310-948-S50-2](https://asc.understandingaccounting.org/asc/310/948/#310-948-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:19.341Z to 2026-09-09T23:31:19.341Z Record version: sha256:34fe0b104d4ebd90cd2253e9862b6ebe01e947055fdb73ca83ed4102ecff20f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [948-310-S99-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-S99-1), Regulation S-X Rule 12-29, for the disclosure requirements of Schedule IV—Mortgage Loans on Real Estate. ##### [310-948-S50-3](https://asc.understandingaccounting.org/asc/310/948/#310-948-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:19.341Z to 2026-09-09T23:31:19.341Z Record version: sha256:58c1968bd157294d0a18c065ca92e758a1f6ad632ce6509baef538b94bb7ddc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [970-10-S99-1](https://asc.understandingaccounting.org/asc/970/10/#970-10-S99-1), SAB Topic 7.C, for SEC Staff views on whether certain supplemental schedules are required in annual reports. Source downloaded (UTC): 2026-09-09T23:31:26.845Z to 2026-09-09T23:31:26.845Z Record version: sha256:9e8439f60bea6963f353f75dfd862b0c1575bdfc2c764887b1cd95eb397fb9ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-948-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/310/948/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [310-948-S99-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:26.845Z to 2026-09-09T23:31:26.845Z Record version: sha256:56fce606b642a1433a406bd9467a397f9c57252e089c4636c599fedaea065b4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-29, Mortgage Loans on Real Estate (17 CFR 210.12-29). - ![](https://asc.understandingaccounting.org/asc-img/GUID-FAF62BD8-DFCA-49F4-83DE-E19BF59852B4-low.gif) Reg. § 210.12-29 Mortgage Loans on Real Estate 1 (For certain real estate companies) Column A Column B Column C Column D Column E Column F Column G Column H "Description2,3,4" Interest rate Final maturity date Periodic payment terms5 Prior liens Face amount of mortgages "Carrying amount of mortgages3,6,7,8,9 " "Principal amount of loans subject to delinquent principal or interest10" 1 All money columns shall be totaled. 2 The required information is to be given for each individual mortgage loan which exceeds three percent of the total of column G. 3 "If the portfolio includes large numbers of mortgages most of which are less than three percent of column G, the mortgages not required to be reported separately should be grouped by classifications that will indicate the dispersion of the portfolio, i.e., for a portfolio of mortgages on single family residential housing. The description should also include number of loans by original loan amounts (e.g., over $100,000, $50,000-$99,999, $20,000-$49,000, under $20,000) and type loan (e.g., VA, FHA, Conventional). Interest rates and maturity dates may be stated in terms of ranges. Data required by columns D, E and F may be omitted for mortgages not required to be reported individually." 4 "Loans should be grouped by categories, e.g., first mortgage, second mortgage, construction loans, etc., and for each loan the type of property, e.g., shopping center, high rise apartments, etc., and its geographic locations should be stated." 5 "State whether principal and interest is payable at level amount over life to maturity or at varying amounts over life to maturity. State amount of balloon payment at maturity, if any. Also state prepayment penalty terms, if any." 6 "In a note to this schedule, furnish a reconciliation, in the following form, of the carrying amount of mortgage loans at the beginning of each period for which statements of comprehensive income are required, with the total amount shown in column G: Balance at beginning of period ....................................................................................... $ ............................ Additions during period: New mortgage loans................................................ $ ............................... Other (describe) ...................................................... ................................ ............................ Deductions during period: Collections of principal ............................................ $................................ Foreclosures .......................................................... ................................ Cost of mortgages sold ........................................... ................................ Amortization of premium .......................................... ................................. Other (describe) ..................................................... ................................. ............................ Balance at close of period $ ............................" "If additions represent other than cash expenditures, explain. If any of the changes during the period result from transactions, directly or indirectly with affiliates, explain the bases of such transactions, and state the amounts involved. State the aggregate mortgages (a) renewed and (b) extended. If the carrying amount of new mortgages is in excess of the unpaid amount of the extended mortgages, explain." 7 "If any item of mortgage loans on real estate investments has been written down or reserved against, describe the item and explain the basis for the write-down or reserve." 8 State in a note to column G the aggregate cost for Federal income tax purposes. 9 "The amount of all intercompany profits in the total of column G shall be stated, if material." 10 "(a) Interest in arrears for less than 3 months may be disregarded in computing the total amount of principal subject to delinquent interest. (b) Of the total principal amount, state the amount acquired from controlled and other affiliates." \[38 FR 6069, Mar. 6, 1973; 38 FR 7323, Mar. 20, 1973. Redesignated at 45 FR 63680, Sept. 25, 1980; 83 FR 50209, Oct. 4, 2018\] Source downloaded (UTC): 2026-09-09T23:31:29.416Z to 2026-09-09T23:32:00.586Z Record version: sha256:6d2f00c97ed789649b1940fb6261d4a23792ccce133e0a56dad3de340202a80e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954: Receivables — Health Care Entities ### Machine-generated study aids ```json { "summary": "ASC 310-954 governs how health care entities recognize, measure, present, and disclose receivables, principally amounts due from patients and third-party payors (Blue Cross, Medicare, Medicaid, HMOs, workers' compensation). Contractual adjustments and discounts are treated as variable consideration under ASC 606 (606-10-32-5 through 32-14 and 32-42 through 32-45), while an allowance for credit losses is measured under Topic 326. Charity care is never recognized as a receivable, and amounts due from third-party payors for retroactive adjustments such as final settlements or appeals must be reported separately.", "key_points": [ "Charity care does not qualify for recognition as a receivable (310-954-25-1), while uncollected premiums and amounts recoverable from stop-loss insurers, net of appropriate valuation allowances, are included in receivables (310-954-25-2).", "Contractual adjustments and discounts are variable consideration measured initially and subsequently under 606-10-32-5 through 32-14 and 606-10-32-42 through 32-45 (310-954-30-1; 310-954-35-1).", "An allowance for credit losses is recorded and subsequently measured under Topic 326 (310-954-30-1; 310-954-35-1).", "Loans or advances to a related entity are recorded as a receivable/payable if repayment is reasonably assured (310-954-25-3); if repayment will not occur or the related entity is perceived unable to repay, the write-off may be recognized as an equity transfer, reducing the transferor's net assets and increasing the transferee's (310-954-40-1).", "Receivables are reported net of an allowance for doubtful accounts, but amounts due from third-party payors for retroactive adjustments such as final settlements or appeals must be reported separately (310-954-45-1).", "Estimated amounts receivable relating to contractual adjustments and third-party settlements must be identified and explained in the disclosures (310-954-50-1).", "Under Section 825-10-50, concentrations of credit risk must be disclosed, including the primary geographic sources of patients, an issue more acute for standalone facility statements than for consolidated system statements (310-954-50-2)." ], "categories": [ "Recognition", "Initial measurement", "Presentation", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The key exam trap is treating contractual adjustments as bad debt: after ASU 2014-09, price concessions and contractual allowances are variable consideration that reduces the transaction price under Topic 606, whereas only true credit deterioration goes through the Topic 326 credit loss allowance. Also remember charity care never becomes a receivable, and retroactive third-party settlements must be shown separately on the face of the statements.", "related_topics": [ "606-10", "326", "954-10", "954-605", "954-720", "825-10" ], "key_concepts": [ "third-party payor receivables", "contractual adjustments and discounts", "variable consideration", "charity care", "retrospective rate settlements", "stop-loss insurance recoverable", "allowance for credit losses", "concentration of credit risk" ] } ``` Source downloaded (UTC): 2026-09-09T23:31:29.416Z to 2026-09-09T23:31:29.416Z Record version: sha256:4058a484d8ac0f2c90914262bd0c36f945c077ff04ac989e8bd7c3fe4e61b11f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/954/#00-status) SEC content: no ##### [310-954-00-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:29.416Z to 2026-09-09T23:31:29.416Z Record version: sha256:f4f821badd67e5629b1063d458fd0229c7eeb620230f933308c8f6d7355f3bcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Contract AssetAddedAccounting Standards Update No. 2014-0905/28/2014
Contract LiabilityAddedAccounting Standards Update No. 2014-0905/28/2014
954-310-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
954-310-05-3AmendedAccounting Standards Update No. 2014-0905/28/2014
954-310-25-1AmendedAccounting Standards Update No. 2014-0905/28/2014
954-310-30-1AmendedAccounting Standards Update No. 2016-1306/16/2016
954-310-30-1AmendedAccounting Standards Update No. 2014-0905/28/2014
954-310-35-1AmendedAccounting Standards Update No. 2016-1306/16/2016
954-310-35-1AmendedAccounting Standards Update No. 2014-0905/28/2014
954-310-45-1AmendedAccounting Standards Update No. 2014-0905/28/2014
954-310-50-3SupersededAccounting Standards Update No. 2014-0905/28/2014
954-310-50-3AddedAccounting Standards Update No. 2011-0707/25/2011
954-310-55-1 through 55-3
SupersededAccounting Standards Update No. 2014-0905/28/2014
954-310-55-1 through 55-3
AddedAccounting Standards Update No. 2011-0707/25/2011
Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:bde92ebb7784d22ac8bfa60f970bd96eb36c21d3c5e014256551d5c488c5c2eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/954/#05-overview-and-background) SEC content: no ##### [310-954-05-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:383ee1e689c2a4458afe19a10c1e15f7b208efd100567fc8b8b6d470eb8e8c0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on receivables for health care entities within the scope of this Topic. ##### [310-954-05-2](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:b18c37fd0d940e11fa5e09acf4812e860569fcf811dc776611bf41242089c782 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts due from third-party payors for health care services are usually less than the provider's full established rates for those services. The receivable amounts may be determined by any of the following: 1. a Contractual agreement with others (such as Blue Cross plans, Medicare, Medicaid, or [health maintenance organizations](https://asc.understandingaccounting.org/glossary/h/#health-maintenance-organization "A generic group of medical care entities organized to provide defined health care services to members in return for fixed, periodic premiums (usually paid monthly) that are paid in advance.")) 2. b Legislation or regulation (such as workers' compensation or no-fault insurance) 3. c Provider policy or practice (such as courtesy discounts to medical staff members and employees or other administrative adjustments). #### Third-Party Settlements ##### [310-954-05-3](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:6eae2a108add11e2f2abac8ad2a0d95323c63d90ffb92e8614191aad6f84f545 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some third-party payors retrospectively determine final amounts reimbursable for services rendered to their beneficiaries based on allowable costs. These payors reimburse the health care entity on the basis of interim payment rates until the retrospective determination of allowable costs can be made. In most instances, the accumulation and allocation of allowable costs and other factors result in final settlements different from the interim payment rates. Final settlements are determined after the close of the fiscal periods to which they apply and may affect materially the health care entity's financial position and results of operations. #### Stop-Loss Insurance Receivables ##### [310-954-05-4](https://asc.understandingaccounting.org/asc/310/954/#310-954-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:31.153Z to 2026-09-09T23:31:31.153Z Record version: sha256:2bc5b0390b1c6f33362a00aba0a6003643d13504c3b9b7c17f39bd80ce75a1e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some health care entities, for example, [providers of prepaid health care services](https://asc.understandingaccounting.org/glossary/p/#prepaid-health-care-services-providers "Entities that provide or arrange for the delivery of health care services in accordance with the terms and provisions of a prepaid health care plan. Providers assume the financial risk of the cost of delivering health care services in excess of preestablished fixed premiums. However, some or all of the financial risk may be contractually transferred to other providers (affiliated entities) or by purchasing stop-loss insurance. Other providers of prepaid health care services may include comprehensive medical plans, physicians groups (for example, independent practice associations), and hospitals."), contract to provide comprehensive health care services for a fixed period in return for fixed periodic premiums. Many of those entities may transfer a portion of their financial risks under the contract to another entity by purchasing [stop-loss insurance](https://asc.understandingaccounting.org/glossary/s/#stop-loss-insurance "A contract in which an entity agrees to indemnify providers for certain health care costs incurred by members."). Receivables of those entities may include uncollected premiums and amounts recoverable from stop-loss insurers, reduced by appropriate valuation allowances. Source downloaded (UTC): 2026-09-09T23:31:33.302Z to 2026-09-09T23:31:33.302Z Record version: sha256:4ecb31a3134925246656802d679ec1ce7268b9e7b76e80869f9a22d7b4951eb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/954/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-954-15-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:33.302Z to 2026-09-09T23:31:33.302Z Record version: sha256:5bdc133523d960d4d6bde01c02bd679748426d61804a49be916d6322bca64cac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 954-10-15. Source downloaded (UTC): 2026-09-09T23:31:39.026Z to 2026-09-09T23:31:39.026Z Record version: sha256:b8d9e17ed483e50bbd78c32d4bd8d1d82b7018c8d6835b14771b05168440d4e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/954/#25-recognition) SEC content: no ##### [310-954-25-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:39.026Z to 2026-09-09T23:31:39.026Z Record version: sha256:78c44b0e26bd948ffd3fc8a418b824cd11a53a194909bab2821a393fa8e430ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The provision of charity care does not qualify for recognition as receivables in the financial statements. #### Stop-Loss Insurance Receivables ##### [310-954-25-2](https://asc.understandingaccounting.org/asc/310/954/#310-954-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:39.026Z to 2026-09-09T23:31:39.026Z Record version: sha256:c8c3c4d947e0c3137ab7d856137daf7c038c5a1380bf876aea1cd7c804aa8457 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any uncollected premiums and amounts recoverable from stop-loss insurers reduced by appropriate valuation allowances shall be included in receivables. See also paragraph [954-720-45-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-45-1). #### Receivables from Related Entities ##### [310-954-25-3](https://asc.understandingaccounting.org/asc/310/954/#310-954-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:39.026Z to 2026-09-09T23:31:39.026Z Record version: sha256:255795bd046225bf725ae27a165d98d6edd4e0097997b32012be636eb8fdc605 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health care entity may loan or advance resources to a related entity. If repayment is reasonably assured, a receivable or payable should be recorded by the entities. Source downloaded (UTC): 2026-09-09T23:31:42.203Z to 2026-09-09T23:31:42.203Z Record version: sha256:c8621853e32a0ecdecc24d255675c03bd913fe2f47e76f5398562139c9dcfa11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/954/#30-initial-measurement) SEC content: no ##### [310-954-30-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:42.203Z to 2026-09-09T23:31:42.203Z Record version: sha256:d40cc63d70f414d00a4481efceb81c25a1bbaf710125b31b956f79abf64a5b78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contractual adjustments and discounts are variable consideration and shall be measured in accordance with paragraphs [606-10-32-5 through 32-14](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-5) . An allowance for credit losses shall be recorded in accordance with Topic 326 on measurement of credit losses. Source downloaded (UTC): 2026-09-09T23:31:44.444Z to 2026-09-09T23:31:44.444Z Record version: sha256:9e347b70d177ce26cd94aef24b519e4b6077785b90adda3252cf3bab2508e684 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/954/#35-subsequent-measurement) SEC content: no ##### [310-954-35-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:44.444Z to 2026-09-09T23:31:44.444Z Record version: sha256:6b19144f26873e694313b7caea46951c5658b7dcc24109c534acd3f18b32c4da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contractual adjustments and discounts shall be subsequently measured in accordance with paragraphs [606-10-32-5 through 32-14](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-5) and paragraphs [606-10-32-42 through 32-45](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-42) . An allowance for credit losses shall be subsequently recorded in accordance with Topic 326 on measurement of credit losses. Source downloaded (UTC): 2026-09-09T23:31:46.704Z to 2026-09-09T23:31:46.704Z Record version: sha256:283dbffb8521e761321a048916c2348ce87784cc78c329b8ad0dc27cd05561bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/954/#40-derecognition) SEC content: no #### Receivables from Related Entities ##### [310-954-40-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:46.704Z to 2026-09-09T23:31:46.704Z Record version: sha256:b79e6c32b4fc8313924d7f8b560557e9a08e16034d7e055e0f168df542779f1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a receivable from a related entity is not to be repaid, or if the related entity is perceived as unable to repay, the write-off of the receivable may be recognized as an [equity transfer](https://asc.understandingaccounting.org/glossary/e/#equity-transfer "An equity transfer is nonreciprocal. An equity transfer is a transaction directly between a transferor and a transferee. Equity transfers are similar to ownership transactions between a for-profit parent and its owned subsidiary (for example, additional paid-in capital or dividends). However, equity transfers can occur only between related not-for-profit entities (NFPs) if one controls the other or both are under common control. An equity transfer embodies no expectation of repayment, nor does the transferor receive anything of immediate economic value (such as a financial interest or ownership).") (see paragraph [954-220-45-2](https://asc.understandingaccounting.org/asc/220/954/#220-954-45-2)) with the transferor reducing net assets and the transferee increasing net assets at the date such determination is made. Source downloaded (UTC): 2026-09-09T23:31:50.637Z to 2026-09-09T23:31:50.637Z Record version: sha256:0d079d934c11b119265c95ba9a37f52530beeff11ddd8169eb3888158a866389 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/954/#45-other-presentation-matters) SEC content: no #### Accounts Receivable ##### [310-954-45-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:50.637Z to 2026-09-09T23:31:50.637Z Record version: sha256:8e160618a46c6923dc469bd64d7049228c3ce81ca7632e816c6af33dff042b90 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables shall be reported net of an allowance for doubtful accounts. (See also the guidance in paragraphs [606-10-45-1 through 45-5](https://asc.understandingaccounting.org/asc/606/10/#606-10-45-1) on presenting receivables, [contract assets](https://asc.understandingaccounting.org/glossary/c/#contract-asset "An entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity's future performance)."), and [contract liabilities](https://asc.understandingaccounting.org/glossary/c/#contract-liability "An entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.")). Although the aggregate amount of receivables may include balances due from patients and third-party payors (including final settlements and appeals), the amounts due from third-party payors for retroactive adjustments of items such as final settlements or appeals shall be reported separately in the financial statements. Source downloaded (UTC): 2026-09-09T23:31:54.726Z to 2026-09-09T23:31:54.726Z Record version: sha256:d17a32a89885464f3ab87783dbf71fc90e8b3f130a095dbbc3522b28245a03f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/954/#50-disclosure) SEC content: no ##### [310-954-50-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:54.726Z to 2026-09-09T23:31:54.726Z Record version: sha256:81b63b2f33f74ddad29beadf61c2b658e31ce6fae1530bb72815939e9ae3449e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. With regard to contractual adjustments and third-party settlements, identification and explanation of the estimated amounts that are receivable by the entity shall be disclosed. ##### [310-954-50-2](https://asc.understandingaccounting.org/asc/310/954/#310-954-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:54.726Z to 2026-09-09T23:31:54.726Z Record version: sha256:593c318edfbaee911f84b86de54ab54e1febd77632c78557528bfcfbfecaff77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 825-10-50 provides guidance on the required disclosures about significant concentrations of credit risk arising from all financial instruments, including trade accounts receivable. Concentration of credit risk frequently is an issue because most health care entities generally tend to treat patients from their local or surrounding communities. Accordingly, disclosure shall be made of the primary geographic sources of patients. It should be noted that concentration of credit risk may be a significant issue in standalone financial statements issued for a member hospital of a large national multihospital system but may not be an issue for financial statements prepared for the hospital system. When the individual facilities' financial statements are consolidated into statements prepared for the entire system, the credit risk is dispersed over a much larger base of health plans, patients, and geographies and, therefore, is not as concentrated. ##### [310-954-50-3](https://asc.understandingaccounting.org/asc/310/954/#310-954-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:54.726Z to 2026-09-09T23:31:54.726Z Record version: sha256:566d1ee1c02352e25d2aef15dba541814bf63995191edcc4f10c17a31cf8dc5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:31:56.990Z to 2026-09-09T23:31:56.990Z Record version: sha256:29758e86b0afaee2505a9d6e82939adc6125aa3ee4a236925ed844d38a90cd0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-954-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/954/#55-implementation-guidance-and-illustrations) SEC content: no ##### [310-954-55-1](https://asc.understandingaccounting.org/asc/310/954/#310-954-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:56.990Z to 2026-09-09T23:31:56.990Z Record version: sha256:1363b10bffa2f2990c65c1e4bc82ffda19838b5e0057dc0af65c962cc9c685a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-954-55-2](https://asc.understandingaccounting.org/asc/310/954/#310-954-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:56.990Z to 2026-09-09T23:31:56.990Z Record version: sha256:b4dab92921b466d3179ee8e1b4b46d9df3358864c64e126d4691e9e07da0366e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-954-55-3](https://asc.understandingaccounting.org/asc/310/954/#310-954-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:31:56.990Z to 2026-09-09T23:31:56.990Z Record version: sha256:f4430532f2ab499b4e5b58d806d42d0f6af11d9b828d01a273ffaf92c8592dce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:32:03.631Z to 2026-09-09T23:32:29.176Z Record version: sha256:9d26d9a4d86fa3012fb078931a64f599c946cbaa56c3f4fffc2eb4162723f79e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958: Receivables — Not-for-Profit Entities ### Machine-generated study aids ```json { "summary": "This subtopic governs contributions (promises to give) receivable — a receivable unique to not-for-profit entities — focusing on subsequent measurement, presentation, and disclosure after initial recognition under 958-605. Unconditional promises are recognized as an asset and revenue when received (with verifiable documentation), measured initially under 958-605-30-4 through 30-8, and thereafter either at fair value under the 825-10 fair value option or under the change-in-value rules in Section 35 (interest accretion is contribution revenue; decreases in expected assets are bad debt expense/loss; increases generally are not recognized except as recovery of previously recognized bad debts).", "key_points": [ "A promise to give is a written or oral agreement to contribute cash or other assets; an unconditional promise is recognized as revenue or gain and as an asset in the period received, but only with sufficient verifiable documentation (310-958-25-1; 958-605-25-2).", "An NFP may irrevocably elect the fair value option of Subtopic 825-10 for most receivables; if a present value technique is used, discount rate and other assumptions are updated each measurement date, and donor restrictions specific to the donee affect net asset classification, not fair value (310-958-35-1).", "Subsequent accruals of the interest element on promises measured at present value are reported as contribution revenue (835-30-35), and as an increase in net assets with donor restrictions if the underlying promise is donor restricted (310-958-35-6; 45-2).", "Decreases in value from changes in the quantity or nature of assets expected to be received are recognized in the period the expectation changes as bad debt expense or loss; increases are not recognized except as a recovery to the extent bad debt expense or loss was previously recognized (310-958-35-7 through 35-9).", "For promises to give securities with readily determinable fair values or debt securities, observed changes in the underlying fair value are recognized as increases or decreases in contribution revenue; for other noncash assets, only decreases are recognized — increases are not (310-958-35-11 through 35-13).", "Contributions receivable are reported net of the present value discount, with the discount separately disclosed on the face of the statement of financial position or in the notes (310-958-45-1).", "Required disclosures include amounts receivable in less than one year, one to five years, and more than five years, the allowance for uncollectible promises, the unamortized discount, and, for conditional promises, the total promised plus a description and amount of each group with similar characteristics (310-958-50-1; 50-4)." ], "categories": [ "Subsequent measurement", "Not-for-profit", "Disclosure", "Presentation" ], "audience_level": "intermediate", "student_note": "Exam questions love the asymmetry: declines in the expected quantity/nature of promised assets (and declines in the future fair value of promised noncash assets) hit income, but increases generally do not — except as a recovery of previously recognized bad debt, or for promised marketable securities where both increases and decreases run through contribution revenue. A common mistake is reflecting donor-imposed restrictions in the fair value measurement instead of in the net asset classification.", "related_topics": [ "958-605", "958-310", "825-10", "820-10", "835-30", "958-10" ], "key_concepts": [ "promises to give", "contributions receivable", "unconditional promise", "conditional promise", "present value discount", "fair value option", "allowance for uncollectible promises", "net assets with donor restrictions" ] } ``` Source downloaded (UTC): 2026-09-09T23:32:03.631Z to 2026-09-09T23:32:03.631Z Record version: sha256:25f25dcad36aa60bffc40693b18fda149f00fec6eaf3bf33046162210d65d86f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/958/#00-status) SEC content: no ##### [310-958-00-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:03.631Z to 2026-09-09T23:32:03.631Z Record version: sha256:3dac1f742879983915bf3a6c891ed84425818e04e4af6827337790d42f7569a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
Conditional Promise to GiveAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Donor-Imposed RestrictionAddedAccounting Standards Update No. 2016-1408/18/2016
Net AssetsAmendedAccounting Standards Update No. 2016-1408/18/2016
Net Assets with Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Net Assets without Donor RestrictionsAddedAccounting Standards Update No. 2016-1408/18/2016
Permanently Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Temporarily Restricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
Unrestricted Net AssetsSupersededAccounting Standards Update No. 2016-1408/18/2016
958-310-35-1AmendedAccounting Standards Update No. 2011-0405/12/2011
958-310-35-3SupersededAccounting Standards Update No. 2025-1212/17/2025
958-310-35-7 through 35-9
AmendedAccounting Standards Update No. 2012-0410/01/2012
958-310-35-11AmendedAccounting Standards Update No. 2012-0410/01/2012
958-310-35-12AmendedAccounting Standards Update No. 2012-0410/01/2012
958-310-45-1AmendedMaintenance Update 2020-18 (PDF)11/25/2020
958-310-45-2AmendedAccounting Standards Update No. 2016-1408/18/2016
958-310-45-3AmendedAccounting Standards Update No. 2016-1408/18/2016
958-310-50-3AmendedAccounting Standards Update No. 2018-1308/28/2018
958-310-50-3AmendedAccounting Standards Update No. 2011-0405/12/2011
958-310-55-1AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T23:32:07.583Z to 2026-09-09T23:32:07.583Z Record version: sha256:bcb3e931b207bfeafc5d5e008d256cb2acff405ec4dc00b2b20e0f6275626235 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/958/#05-overview-and-background) SEC content: no ##### [310-958-05-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:07.583Z to 2026-09-09T23:32:07.583Z Record version: sha256:269a2b0f57e5a439b7ce9eff566c6644ef7322e1c6b81f32d881a062147788b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance about a type of receivable unique to [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFPs)—[promises to give](https://asc.understandingaccounting.org/glossary/p/#promise-to-give "A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.") ([contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.")) receivable. NFPs also shall apply the initial recognition and measurement standards for promises to give in Subtopic 958-605. Source downloaded (UTC): 2026-09-09T23:32:09.768Z to 2026-09-09T23:32:09.768Z Record version: sha256:ccb49dd6c26c7182f45a9f9bf13dd1de721e079ff9d7fe3abb3a06a5b28b6667 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-958-15-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:09.768Z to 2026-09-09T23:32:09.768Z Record version: sha256:40f1f9343b14d861c779a189b3d4bfa7e873bd7322db7a41de37a0ea740c8a55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15. Source downloaded (UTC): 2026-09-09T23:32:16.296Z to 2026-09-09T23:32:16.296Z Record version: sha256:bb6acb35a20395fc3184671d9a200868f3293ef25c2e773c9a876563e6fda888 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/958/#25-recognition) SEC content: no #### Contributions Receivable ##### [310-958-25-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:16.296Z to 2026-09-09T23:32:16.296Z Record version: sha256:b211c03092d90365c36b9daa779b1d7fb0c27ad57e5b06438dc7ebf8a4aedde9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [promise to give](https://asc.understandingaccounting.org/glossary/p/#promise-to-give "A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.") is a written or oral agreement to contribute cash or other assets to another entity. A promise to give may be either conditional or unconditional. An [unconditional promise to give](https://asc.understandingaccounting.org/glossary/u/#unconditional-promise-to-give "A promise to give that depends only on passage of time or demand by the promisee for performance.") shall be recognized as revenue or gain in the period received and as an asset in accordance with paragraphs [958-605-25-7 through 25-15](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-7) . Pursuant to paragraph [958-605-25-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-2), to be recognized in financial statements there must be sufficient evidence in the form of verifiable documentation that a promise was made and received. Source downloaded (UTC): 2026-09-09T23:32:19.409Z to 2026-09-09T23:32:19.409Z Record version: sha256:356a7e5dcd77b07cff97295b5039937267e7161e1fddf0e04da39ad8d03618f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/958/#30-initial-measurement) SEC content: no #### Contributions Receivable ##### [310-958-30-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:19.409Z to 2026-09-09T23:32:19.409Z Record version: sha256:dcecb779e154b7ffe269ca47f54692557cbe4b3e0d7323171232e0297d91c63e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An [unconditional promise to give](https://asc.understandingaccounting.org/glossary/u/#unconditional-promise-to-give "A promise to give that depends only on passage of time or demand by the promisee for performance.") shall be initially measured in accordance with paragraphs [958-605-30-4 through 30-8](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-4) . Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:1e68cb703d6c3facf8eebcadd5118ca807a0413725d120411151482c3f9c4b0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/958/#35-subsequent-measurement) SEC content: no #### Fair Value Measurement ##### [310-958-35-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:afcaf37ae68df7e486000414c7841cac9cfe995021eebf9fad250de1924bacf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Fair Value Option Subsections of Subtopic 825-10 create 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.") option under which a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) may irrevocably elect fair value as the initial and subsequent measure for most receivables. If an NFP elects to measure a receivable at fair value and uses a present value technique to measure fair value, the discount rate assumptions, and all other elements discussed in paragraph [820-10-55-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5) shall be revised at each measurement date to reflect current market conditions. Paragraph [820-10-35-2B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2B) states that a fair value measurement takes into account the effect of a restriction on the sale or use of an asset if market participants would take into account the effect of the restriction when pricing the asset. Example 6 (see paragraph [820-10-55-51](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-51)) illustrates that restrictions that are a characteristic of an asset and, therefore, would transfer to a market participant are the only restrictions reflected in fair value. Donor restrictions that are specific to the donee are reflected in the classification of [net assets](https://asc.understandingaccounting.org/glossary/n/#net-assets "The excess or deficiency of assets over liabilities of a not-for-profit entity, which is divided into two mutually exclusive classes according to the existence or absence of donor-imposed restrictions. See Net Assets with Donor Restrictions and Net Assets without Donor Restrictions."), not in the measurement of fair value. ##### [310-958-35-2](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:07e2c91a0b27da7bb447a61d68230a49710c8f6251a3b1d7e8027606d6d59eed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unless measured at fair value in conformity with the Fair Value Option Subsections of Subtopic 825-10, receivables shall be reported at the measures described in the remainder of this Section. #### Receivables from Exchange Transactions ##### [310-958-35-3](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:aadf1167c6d18749021ba037946e598b24eddabda7fe8f80542de07883a62d09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivables arising from exchange transactions shall be reported at net realizable value if the amounts are due within one year. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)
Editor's Note: Paragraph 958-310-35-3 will be superseded upon transition, together with its heading.
> Receivables from Exchange Transactions
[Paragraph superseded by Accounting Standards Update No. 2025-12.](https://asc.understandingaccounting.org/updates/asu-2025-12/) #### Contributions Receivable ##### [310-958-35-4](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:ef9b6150e812619ae06fb9c1e7577576de148e061ac1af71b9a02c21341e2fed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After recognition, the value of a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") arising from an [unconditional promise to give](https://asc.understandingaccounting.org/glossary/u/#unconditional-promise-to-give "A promise to give that depends only on passage of time or demand by the promisee for performance.") cash or noncash assets (contribution receivable) may change because of any of the following reasons: 1. a Accrual of the interest element for a [promise to give](https://asc.understandingaccounting.org/glossary/p/#promise-to-give "A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.") measured using present value techniques 2. b Changes in the quantity or nature of assets expected to be received (such as changes in the amounts of future cash flows) 3. c Changes in the projected fair value of the underlying noncash assets at the date that those assets are expected to be received (referred to in this Section as the _future fair value_ of underlying noncash assets) 4. d Changes in the timing of assets expected to be received (This Subtopic does not provide guidance for changes in the timing of assets expected to be received.) 5. e Changes in the time value of money. ##### [310-958-35-5](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:07c52d8481192561c80dc12fe6236b856f3e9429168cf3956f290f05b0fb344d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1 (paragraph [958-310-55-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-55-1)) for a summary of the guidance for accounting for changes in the value of promises to give subsequent to initial recognition but before collection. ##### [310-958-35-6](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:f7ab5ffa9ebd983905f4b71edc3182ba89ac5d196ecaa464a0cb384c9d6141dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a present value technique is used to measure the fair value of unconditional promises to give cash, subsequent accruals of the interest element pursuant to Section 835-30-35 shall be accounted for as contribution revenue by donees. ##### [310-958-35-7](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:bbf2f53adc235eaa664122dec6c738b4d045110c539567a3aa5948c78ed6957b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the value of a contribution receivable decreases because of changes in the quantity or nature of assets expected to be received, the decrease shall be recognized in the period(s) in which the expectation changes. That decrease shall be reported as an expense or loss (bad debt) in accordance with paragraph [958-310-45-3](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-3). ##### [310-958-35-8](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:aa38d1315a192181c69f552a173f6ed5fe16b5fb8cac6f06fc2b1e775ae582d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No increase in net assets shall be recognized if the value of a contribution receivable increases because of a change in the quantity or nature of assets expected to be received between the date the unconditional promise to give is recognized and the date it is collected, except as provided in the following paragraph. ##### [310-958-35-9](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:629f3a76fc099f7263d55174bcada7ac10d1d882fe9305f4e217fadba3e8e8f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the value of a contribution receivable increases because of changes in the quantity or nature of assets expected to be received and previous decreases in the value of that unconditional promise to give resulted in expenses or losses from bad debts, the increase shall be reported as a recovery of those expenses or losses to the extent that those expenses or losses were previously recognized. The recovery shall be reported in the net asset classes in which the net assets are represented. ##### [310-958-35-10](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:ce224942de03d30c46d00f0c3fa79b956f390953503eb11ecec37f9ce69e4a23 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts collected, other than a recovery of bad debt expenses or losses, in excess of the carrying amount of contributions receivable shall be reported as contribution revenue in the appropriate net asset class. ##### [310-958-35-11](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:34c19a6a1e8e58448d374f923193ef986e7cf41e487ff4e505465052d016e001 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The value of a contribution receivable arising from an unconditional promise to give equity securities with readily determinable fair values or debt securities may change between the date the unconditional promise to give is recognized and the date the asset promised is received because of changes in the future fair value of the underlying securities. For purposes of subsequent measurement, the method of determining the future fair value of the underlying securities shall be the same as the method used for determining that amount for purposes of initial measurement. Thus, if a promise to give securities is measured based on the fair value of the underlying securities at the date of gift, as described in paragraph [958-605-30-8](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-8), an observed change in the current fair value of the underlying securities shall be recognized. The change shall be reported as an increase or a decrease in contribution revenue in the period(s) in which the change occurs. The change shall be recognized in the net asset class in which the contribution was originally reported or in the net asset class in which the net assets are represented. ##### [310-958-35-12](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:4275da3bed90c8da89183193c0dba695cb37d8a1ba25854d0dee5a09ca627f25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The value of a contribution receivable arising from an unconditional promise to give noncash assets other than equity securities with readily determinable fair values or debt securities may change between the date the unconditional promise to give is recognized and the date the asset promised is received because of changes in the future fair value of the underlying noncash assets. For purposes of subsequent measurement, the method for determining the future fair value of the underlying noncash asset shall be the same as the method used for determining that amount for purposes of initial measurement. Accordingly, assumed relationships, such as the relationship between the market price of the noncash asset at the time the initial measurement is made and its projected market price at the date the asset is expected to be received, shall be presumed to continue in determining whether the future fair value of the underlying noncash asset has changed. ##### [310-958-35-13](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:21.843Z to 2026-09-09T23:32:21.843Z Record version: sha256:54ee904825e6cc1a9b408ca1f58627e1058a461ab14f89a1f13f6857b40c144f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the future fair value of the underlying noncash asset decreases, that decrease shall be reported as a decrease in contribution revenue in the period(s) in which the decrease occurs. The decrease shall be reported in the net asset class in which the contribution was originally reported or in the net asset class in which the net assets are represented. Thus, if a promise to give noncash assets is measured based on the fair value of those underlying noncash assets at the date of gift, as described in paragraph [958-605-30-8](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-8), an observed decrease in the current fair value of the underlying noncash asset shall be recognized. If the future fair value of the underlying noncash asset increases between the date the unconditional promise to give is recognized and the date the asset promised is received, no additional revenue shall be recognized. Source downloaded (UTC): 2026-09-09T23:32:23.859Z to 2026-09-09T23:32:23.859Z Record version: sha256:b118eeb758a83b07fe58386ad645e9e5d4443496e3758813d7c422f19e6cca9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/958/#45-other-presentation-matters) SEC content: no #### Contributions Receivable—Statement of Financial Position ##### [310-958-45-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:23.859Z to 2026-09-09T23:32:23.859Z Record version: sha256:0d5fc743f8d0fdfc7602928ad50c5f638ba055a2dade62caa3372aa95a7d5426 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") receivable shall be reported net of the discount that arises if measuring a [promise to give](https://asc.understandingaccounting.org/glossary/p/#promise-to-give "A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.") at present value. The discount shall be separately disclosed by reporting it as a deduction from contributions receivable either on the face of a statement of financial position or in the notes to financial statements (see paragraph [958-310-50-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-50-1)). #### Contributions Receivable—Statement of Activities ##### [310-958-45-2](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:23.859Z to 2026-09-09T23:32:23.859Z Record version: sha256:1540f4f631199b5ef1a1da59eef3e05f161164065f9b55dbbb2bff07a2fd01ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an [unconditional promise to give](https://asc.understandingaccounting.org/glossary/u/#unconditional-promise-to-give "A promise to give that depends only on passage of time or demand by the promisee for performance.") is measured using present value techniques, a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) shall report the subsequent accrual of the interest element recognized under paragraph [958-310-35-6](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-6) as an increase in [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") if the underlying promise to give is donor restricted. ##### [310-958-45-3](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:23.859Z to 2026-09-09T23:32:23.859Z Record version: sha256:619123ea23fedf9bfa244e90ed1e35120272844199f0925bc8a6bc9b5832ac20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Decreases recognized under paragraph [958-310-35-7](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-7) shall be reported as expenses or losses (bad debt) in the net asset class in which the net assets are represented. Because all expenses are reported in the [net asset without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") class, those decreases shall be reported as losses if they are decreases in net assets with donor restrictions. Source downloaded (UTC): 2026-09-09T23:32:26.682Z to 2026-09-09T23:32:26.682Z Record version: sha256:aac933ed0b70e80596fd1e2b6ead9345ca9d71bdbd5b7d4893408ff25667349f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/958/#50-disclosure) SEC content: no #### Contributions Receivable ##### [310-958-50-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:26.682Z to 2026-09-09T23:32:26.682Z Record version: sha256:e435a5bb791313d9692e8f88051a5c8441e1fc41b4813c3a18736bbc639144c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Recipients of [unconditional promises to give](https://asc.understandingaccounting.org/glossary/u/#unconditional-promise-to-give "A promise to give that depends only on passage of time or demand by the promisee for performance.") shall disclose all of the following: 1. a The amounts of promises receivable in less than one year, in one to five years, and in more than five years 2. b The amount of the allowance for uncollectible promises receivable 3. c The discount that arises if measuring a [promise to give](https://asc.understandingaccounting.org/glossary/p/#promise-to-give "A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.") at present value, if that discount is not separately disclosed by reporting it as a deduction from [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") receivable on the face of a statement of financial position pursuant to paragraph [958-310-45-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-1). ##### [310-958-50-2](https://asc.understandingaccounting.org/asc/310/958/#310-958-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:26.682Z to 2026-09-09T23:32:26.682Z Record version: sha256:569725cd934df454f5ecde78ee984a9d32bf0a37721dd36dcdb6405ad0f2296c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As illustrated in paragraph [958-605-55-22](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-22), the allowance for uncollectible promises to give does not include amounts determined to be uncollectible when the contributions receivable were initially measured. For example, assume that, on the last day of its fiscal year, a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) receives promises to give $100 in 5 years, that the estimated future cash flows from the promises are $70, and that the present value of the estimated future cash flows is $50. The notes to financial statements should disclose unconditional promises to give of $70 and unamortized discount of $20. ##### [310-958-50-3](https://asc.understandingaccounting.org/asc/310/958/#310-958-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:26.682Z to 2026-09-09T23:32:26.682Z Record version: sha256:7ef2759b87d7fd0ae7c32d857c7cee823e7e10c42a9c4ed7130bd80546d3211e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If unconditional promises to give are subsequently measured at [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."), the notes to financial statements shall also include the following disclosures: 1. a Disclosures required by paragraphs [820-10-50-1C through 50-2](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-1C) and [820-10-50-2B through 50-2E](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2B) in the format described in paragraph [820-10-50-8](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-8) 2. b Disclosures required by paragraphs [825-10-50-28 through 50-31](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-28) 3. c Disclosures required by paragraph [825-10-50-32](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-32), if an election to report unconditional promises to give is made after initial recognition pursuant to paragraph [825-10-25-4(e)](https://asc.understandingaccounting.org/asc/825/10/#825-10-25-4). #### Conditional Promises to Give ##### [310-958-50-4](https://asc.understandingaccounting.org/asc/310/958/#310-958-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:26.682Z to 2026-09-09T23:32:26.682Z Record version: sha256:05c41f94b74c301f094db32f8aa09e28db82bbc87268ffc482ac7ac6eb6a77f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Recipients of [conditional promises to give](https://asc.understandingaccounting.org/glossary/c/#conditional-promise-to-give "A promise to give that is subject to a donor-imposed condition.") shall disclose both of the following: 1. a The total of the amounts promised 2. b A description and amount for each group of promises having similar characteristics, such as amounts of promises conditioned on establishing new programs, completing a new building, and raising matching gifts by a specified date. Source downloaded (UTC): 2026-09-09T23:32:29.176Z to 2026-09-09T23:32:29.176Z Record version: sha256:8b561a888590352fc061e41326bcd843292c321b4c66f57c0ad230f850b81199 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/958/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [310-958-55-1](https://asc.understandingaccounting.org/asc/310/958/#310-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:29.176Z to 2026-09-09T23:32:29.176Z Record version: sha256:30535142ae040d4c82e2af6eb7547c511c0baacd794c96066a6d9d5c2687d673 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the accounting for changes in the value of [unconditional promises to give](https://asc.understandingaccounting.org/glossary/u/#unconditional-promise-to-give "A promise to give that depends only on passage of time or demand by the promisee for performance.") after initial recognition but before collection, pursuant to paragraphs [958-310-35-7 through 35-13](https://asc.understandingaccounting.org/asc/310/958/#310-958-35-7) , if those [promises to give](https://asc.understandingaccounting.org/glossary/p/#promise-to-give "A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.") are not measured subsequently at [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."). The following table illustrates the reason for the change in value. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-B43C28CB-FEFD-4760-B2AE-0A7CF114753E-low.gif) Reason for the Change in Fair Value Underlying Asset Change in Collectibility of the Receivable Change in the Fair Value of the Underlying Asset Increase in Fair Value Decrease in Fair Value Increase in Future Fair Value "Decrease in Future Fair Value" Cash No adjustment (a) Recognize expense or loss (bad debt) Not applicable Not applicable Securities (b) No adjustment (a) Recognize expense or loss (bad debt) Recognize additional contribution revenue Recognize a decrease in contribution revenue Other assets No adjustment (a) Recognize expense or loss (bad debt) No adjustment Recognize a decrease in contribution revenue (a) "Recoveries of previously recognized decreases in fair value resulting from changes in estimates of collectibility (up to the amount of decreases previously recognized), however, shall be recognized as reductions of bad debt expense or loss." (b) "For purposes of this table, securities are defined as equity securities with readily determinable fair values and all debt securities, consistent with the use of the terms in Subtopic 958-320." Source downloaded (UTC): 2026-09-09T23:32:31.640Z to 2026-09-09T23:32:45.897Z Record version: sha256:008850e9bf4b6e5705f28f6e1e6b6f7e39cc8ea573c77442748d27a95cfbe5e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-960: Receivables — Plan Accounting—Defined Benefit Pension Plans ### Machine-generated study aids ```json { "summary": "This Subtopic governs when a defined benefit pension plan recognizes contributions receivable in its own financial statements. Amounts due at the reporting date from employers, participants, or other funding sources (separately identified) are recognized when supported by legal or contractual requirements or a formal commitment, net of an allowance for estimated uncollectible amounts. Unfunded prior service costs and any excess of the actuarial present value of accumulated plan benefits over net assets available for benefits are not plan receivables.", "key_points": [ "Contributions receivable are amounts due as of the reporting date from employers, participants, or other sources of funding such as state subsidies or federal grants, which must be separately identified (310-960-25-1).", "Amounts due include those arising from formal commitments as well as legal or contractual requirements; evidence of an employer's formal commitment includes a governing-body resolution, a consistent pattern of post-year-end payments under an established funding policy attributed to the preceding plan year, a federal tax deduction for periods ending on or before the reporting date, or the employer's recognition of a contribution payable (310-960-25-2).", "The existence of accrued pension costs on the employer's books does not by itself support recognition of a contribution receivable, because employer measurement methods may differ from amounts formally committed (310-960-25-2(d)).", "Funds from sources like federal revenue-sharing used for plan funding at the employer's discretion are, in effect, employer contributions and are reported as such; receipt shortly after year-end is additional evidence of a receivable, and an adequate allowance for estimated uncollectible amounts must be provided (310-960-25-3).", "A multiemployer plan records a receivable for a withdrawing employer's share of the plan's unfunded liability, net of any allowance for uncollectible amounts, when entitlement has been determined (310-960-25-3A).", "Unfunded prior service costs are not plan receivables because they are not due from the employer at the reporting date and are not a recordable resource until formally committed (310-960-25-4).", "Any excess of the actuarial present value of accumulated plan benefits over net assets available for benefits (excluding contributions receivable) is not a plan asset unless legally, contractually, or by formal commitment due to the plan at the reporting date (310-960-25-4)." ], "categories": [ "Recognition", "Compensation and benefits", "Industry-specific", "Presentation" ], "audience_level": "intermediate", "student_note": "This is plan-level (not employer-level) accounting: the plan is the reporting entity, so the question is whether the plan has a receivable, not whether the employer has a liability. The classic trap is assuming an employer's accrued pension cost or an unfunded benefit obligation automatically creates a plan receivable — it does not without a legal, contractual, or formal commitment.", "related_topics": [ "960-10", "960-205", "960-325", "962", "965", "715" ], "key_concepts": [ "contributions receivable", "formal commitment", "defined benefit pension plan financial statements", "allowance for uncollectible amounts", "unfunded prior service cost", "multiemployer plan withdrawal liability", "accumulated plan benefits", "net assets available for benefits" ] } ``` Source downloaded (UTC): 2026-09-09T23:32:31.640Z to 2026-09-09T23:32:31.640Z Record version: sha256:4ed28ba0a65e090c19e2788033786d0fc1fe4185d29524755f56c31a245932a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-960-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/960/#00-status) SEC content: no ##### [310-960-00-1](https://asc.understandingaccounting.org/asc/310/960/#310-960-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:31.640Z to 2026-09-09T23:32:31.640Z Record version: sha256:872a03596c1582231bcc10980dc3acd0f18a8a7816a31c072f860403bb71a1c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Funding Policy (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Funding Policy (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Service (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Service (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
960-310-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-310-25-2AmendedAccounting Standards Update No. 2014-0603/14/2014
960-310-25-4AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-09T23:32:35.736Z to 2026-09-09T23:32:35.736Z Record version: sha256:54c261038ba46d2ff94e5c1ca6ab90433405d7166fdefa45b9a8aa881d53f399 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-960-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/960/#05-overview-and-background) SEC content: no ##### [310-960-05-1](https://asc.understandingaccounting.org/asc/310/960/#310-960-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:35.736Z to 2026-09-09T23:32:35.736Z Record version: sha256:a6559dbebaf7c33490bc2d20ef34f150d6982f29736a7711ac606811d1035cb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for receivables for [defined benefit pension plans](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)"). Source downloaded (UTC): 2026-09-09T23:32:39.489Z to 2026-09-09T23:32:39.489Z Record version: sha256:c3b9c6b5c9b54ea33141da3c86baee9e322a78713bbb817a405d19588846030f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-960-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/960/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-960-15-1](https://asc.understandingaccounting.org/asc/310/960/#310-960-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:39.489Z to 2026-09-09T23:32:39.489Z Record version: sha256:28f190ace2045b4373438b1a32c768ebfacb974ff7d4a0dc121a91feaae12b31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 960-10-15. Source downloaded (UTC): 2026-09-09T23:32:45.897Z to 2026-09-09T23:32:45.897Z Record version: sha256:4d068b95d66e0b6c058dc68c76f747cc7f5a3fe150f8c0a06643fab0cae75c69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-960-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/960/#25-recognition) SEC content: no #### Contributions Receivable ##### [310-960-25-1](https://asc.understandingaccounting.org/asc/310/960/#310-960-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:45.897Z to 2026-09-09T23:32:45.897Z Record version: sha256:d085911f5f2f8e9b5c5895811dfa20699f2d84572dfce68825fb536c9984c87c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contributions receivable are the amounts due as of the [reporting date](https://asc.understandingaccounting.org/glossary/r/#reporting-date "The date as of which information regarding the net assets available for benefits is presented.") to the plan from any of the following: 1. a Employer(s) 2. b Participants 3. c Other sources of funding (for example, state subsidies or federal grants—which shall be separately identified). ##### [310-960-25-2](https://asc.understandingaccounting.org/asc/310/960/#310-960-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:45.897Z to 2026-09-09T23:32:45.897Z Record version: sha256:6fecf08078f15b286216e214a79c830e97108d1cbefa1bd821f2a0eab4104167 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts due include those pursuant to formal commitments as well as legal or contractual requirements. With respect to an employer's contributions, evidence of a formal commitment may include any of the following: 1. a A resolution by the employer's governing body approving a specified contribution 2. b A consistent pattern of making payments after the plan's year-end pursuant to an established [funding policy](https://asc.understandingaccounting.org/glossary/f/#funding-policy "The program regarding the amounts and timing of contributions by the employers, plan participants, and any other sources (for example, state subsidies or federal grants) to provide the benefits a pension plan or other postretirement benefit plan specifies.") that attributes such subsequent payments to the preceding plan year 3. c A deduction of a contribution for federal tax purposes for periods ending on or before the reporting date 4. d The employer's recognition as of the reporting date of a contribution payable to the plan. The existence of accrued pension costs does not, by itself, provide sufficient support for recognition of a contribution receivable. For various reasons, amounts recorded as accrued pension costs by an employer may differ from amounts formally committed to the plan. For example, the method used for measurement of periodic pension costs for the employer's financial statements may differ from the method used for determining the amount and incidence of employer contributions. ##### [310-960-25-3](https://asc.understandingaccounting.org/asc/310/960/#310-960-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:45.897Z to 2026-09-09T23:32:45.897Z Record version: sha256:0ca6d4ecc2232d578c180e7bb1c080d28c689d950bb39cbcc709760527709b8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Funds from sources such as federal revenue-sharing programs that are used for plan funding purposes at the employer's discretion are, in effect, employer contributions and shall be reported as such. Receipt of formally committed amounts soon after the plan's year-end provides additional evidence of the existence of a receivable at year-end. An adequate allowance shall be provided for estimated uncollectible amounts. ##### [310-960-25-3A](https://asc.understandingaccounting.org/asc/310/960/#310-960-25-3A) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:45.897Z to 2026-09-09T23:32:45.897Z Record version: sha256:49eb3c71e98c19d176b0cee6566b2c72a7f5e7d0b610ba82feb89d6b0ed21da6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A multiemployer plan may also have a receivable for a withdrawing employer's share of the plan's unfunded liability. The plan should record the receivable, net of any allowance for an amount deemed uncollectible, when entitlement has been determined. #### Unfunded Prior Service Costs ##### [310-960-25-4](https://asc.understandingaccounting.org/asc/310/960/#310-960-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:45.897Z to 2026-09-09T23:32:45.897Z Record version: sha256:a17d4c79d51b9160dd528e253f62c08019a90442564b1c63017e3a675dbb7643 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unfunded [prior service costs](https://asc.understandingaccounting.org/glossary/p/#prior-service-costs "See Supplemental Actuarial Value.") are not receivables of the plan because at the reporting date those amounts are not due from the employer(s). The employer(s) may or may not intend to eventually contribute amounts sufficient to eliminate the unfunded prior [service](https://asc.understandingaccounting.org/glossary/s/#service "Employment taken into consideration under a pension plan. Years of employment before the inception of a plan constitute an employee's past service; years thereafter are classified in relation to the particular actuarial valuation being made or discussed. Years of employment (including past service) before the date of a particular valuation constitute prior service; years of employment following the date of the valuation constitute future service; a year of employment adjacent to the date of valuation, or in which such date falls, constitutes current service.") costs. Until such payments are formally committed to the plan, unfunded prior service costs do not constitute a recordable resource of the plan. For similar reasons, any existing excess of the [actuarial present value of accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#actuarial-present-value-of-accumulated-plan-benefits "The amount as of a benefit information date that results from applying actuarial assumptions to the benefit amounts determined pursuant to paragraphs 960-20-25-3960-20-25-4960-20-25-5 (that is, the accumulated plan benefits), with the actuarial assumptions being used to adjust those amounts to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the benefit information date and the expected date of payment.") over the [net assets available for benefits](https://asc.understandingaccounting.org/glossary/n/#net-assets-available-for-benefits "The difference between a plan's assets and its liabilities. For purposes of this definition, a plan's liabilities do not include participants' accumulated plan benefits.") (excluding contributions receivable) is not a plan asset unless at the reporting date that amount is legally, contractually, or pursuant to a formal commitment due the plan. Source downloaded (UTC): 2026-09-09T23:32:49.914Z to 2026-09-09T23:33:15.404Z Record version: sha256:88afaeef389f2253610a2ada68b903afe5f88907db67cf07b8e524a80279c324 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962: Receivables — Plan Accounting—Defined Contribution Pension Plans ### Machine-generated study aids ```json { "summary": "This Subtopic governs receivables in the financial statements of defined contribution pension plans — principally employer/participant contributions receivable and participant loans. Contributions receivable are recognized when supported by a formal commitment or legal/contractual requirement, are shown net of an allowance for estimated uncollectible amounts, and are separately identified. Participant loans are measured at unpaid principal plus accrued but unpaid interest and are reported as notes receivable from participants rather than as investments at fair value.", "key_points": [ "Contributions receivable include amounts due under formal commitments as well as legal or contractual requirements (310-962-25-1).", "Evidence of an employer's formal commitment may include a governing-body resolution approving a specified contribution, a consistent pattern of post-year-end payments attributed to the preceding plan year under an established policy, a federal tax deduction for periods ending on or before the financial statement date, or the employer's recognition of a contribution payable (310-962-25-1(a)-(d)).", "An accrued contribution payable in the employer's own financial statements does not, by itself, sufficiently support the plan's recognition of a contribution receivable (310-962-25-1(d)).", "Contributions receivable shall include an allowance for estimated uncollectible amounts (310-962-35-1).", "Participant loans shall be measured at unpaid principal balance plus accrued but unpaid interest (310-962-35-2), and classified for reporting purposes as notes receivable from participants (310-962-45-2).", "Contributions receivable shall be separately identified in the plan's statements (310-962-45-1).", "The fair value disclosures in paragraphs 825-10-50-10 through 50-16 are not required for participant loans (310-962-50-1)." ], "categories": [ "Recognition", "Subsequent measurement", "Presentation", "Compensation and benefits" ], "audience_level": "intermediate", "student_note": "The key exam trap is participant loans: after ASU 2010-25 they are notes receivable measured at unpaid principal plus accrued interest, not investments carried at fair value, so the ASC 825 fair value disclosures do not apply. Also remember that the employer's accrued payable alone is not enough evidence for the plan to book a contribution receivable.", "related_topics": [ "962-10", "962-325", "962-205", "965-310", "825-10", "310-10" ], "key_concepts": [ "contributions receivable", "formal commitment", "participant loans", "notes receivable from participants", "allowance for uncollectible amounts", "defined contribution plan", "unpaid principal plus accrued interest", "plan financial statements" ] } ``` Source downloaded (UTC): 2026-09-09T23:32:49.914Z to 2026-09-09T23:32:49.914Z Record version: sha256:9860a1ecafcbd421d90571b73a79114cda6782c2c8762f090d300277e9ff93e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/962/#00-status) SEC content: no ##### [310-962-00-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:49.914Z to 2026-09-09T23:32:49.914Z Record version: sha256:e54fe7c494221635c25fb55ad15b7b90e1b88a2ef49739d02839693b6e7909dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
962-310-35-2AddedAccounting Standards Update No. 2010-2509/28/2010
962-310-45-2AddedAccounting Standards Update No. 2010-2509/28/2010
962-310-50-1AddedAccounting Standards Update No. 2010-2509/28/2010
962-310-65-1AddedAccounting Standards Update No. 2010-2509/28/2010
Source downloaded (UTC): 2026-09-09T23:32:52.739Z to 2026-09-09T23:32:52.739Z Record version: sha256:e17204dd4fe06566d1ef2e9f5cd8a4f7a895950c8fe08716d197f563da7e3a8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/962/#05-overview-and-background) SEC content: no ##### [310-962-05-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:52.739Z to 2026-09-09T23:32:52.739Z Record version: sha256:1caa9445af616b8b90911aba2520b138b54a47a1e7892c4a3b3e55b8d8b81daa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for receivables for defined contribution plans. Source downloaded (UTC): 2026-09-09T23:32:55.031Z to 2026-09-09T23:32:55.031Z Record version: sha256:85049b41a2d4c9d6af973c5f02490c5edf0c79e6e35804322ea96ee62209fae0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/962/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-962-15-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:32:55.031Z to 2026-09-09T23:32:55.031Z Record version: sha256:ed1e56da5d1e874f3d4b307bc08ea9d84bb1d877f0e80cf6347e527e664a045d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 962-10-15. Source downloaded (UTC): 2026-09-09T23:33:01.571Z to 2026-09-09T23:33:01.571Z Record version: sha256:4644afed49f285d0a9a78b3f29663df1c9a3ca4b2e46debb8ab3f87f83aba179 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/962/#25-recognition) SEC content: no #### Employer Contributions ##### [310-962-25-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:01.571Z to 2026-09-09T23:33:01.571Z Record version: sha256:8f779e3b94370cd195a54af0f02aea806d348c6bc5a619a1d631669d950c6050 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contributions receivable](https://asc.understandingaccounting.org/glossary/c/#contributions-receivable "Contributions receivable are the amounts due, as of the date of the financial statements, to the plan from employers, participants, and other sources of funding (for example, state subsidies or federal grants). They include amounts due pursuant to firm commitments, as well as legal or contractual requirements.") include those pursuant to formal commitments as well as legal or contractual requirements. With respect to an employer's contributions, evidence of a formal commitment may include any of the following: 1. a A resolution by the employer's governing body approving a specified contribution 2. b A consistent pattern of making payments after the plan's year-end pursuant to an established contribution policy that attributes such subsequent payments to the preceding plan year 3. c A deduction of a contribution for federal tax purposes for periods ending on or before the financial statement date 4. d The employer's recognition as of the financial statement date of a contribution payable to the plan. The existence of an accrued contribution payable in the employer's financial statements does not, by itself, provide sufficient support for recognition of a contribution receivable by the plan. Source downloaded (UTC): 2026-09-09T23:33:05.694Z to 2026-09-09T23:33:05.694Z Record version: sha256:4a698119f9e7430268c80fda89a4844a004d9be539c4d973c2c14b483da48061 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/962/#35-subsequent-measurement) SEC content: no ##### [310-962-35-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:05.694Z to 2026-09-09T23:33:05.694Z Record version: sha256:141371f8cc10a59958537fe977319fab4a8747d92f9102a7e5301fd83e0dd697 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contributions receivable](https://asc.understandingaccounting.org/glossary/c/#contributions-receivable "Contributions receivable are the amounts due, as of the date of the financial statements, to the plan from employers, participants, and other sources of funding (for example, state subsidies or federal grants). They include amounts due pursuant to firm commitments, as well as legal or contractual requirements.") shall include an allowance for estimated uncollectible amounts. #### Participant Loans ##### [310-962-35-2](https://asc.understandingaccounting.org/asc/310/962/#310-962-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:05.694Z to 2026-09-09T23:33:05.694Z Record version: sha256:32b5586f7323f5e3e47b5fc78d8443ed644c7f69e5176f705c943efeed50954b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Participant loans shall be measured at their unpaid principal balance plus any accrued but unpaid interest. Source downloaded (UTC): 2026-09-09T23:33:07.850Z to 2026-09-09T23:33:07.850Z Record version: sha256:3844f625c6cae8d314b24095ba9dd8be9511f31a3e09df2481d2249ec7ea8314 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/962/#45-other-presentation-matters) SEC content: no ##### [310-962-45-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:07.850Z to 2026-09-09T23:33:07.850Z Record version: sha256:71e7d18b6b56773f2abdee746f1852e84ecc0f9d7f97ed2a38fe2fd8be58990c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contributions receivable](https://asc.understandingaccounting.org/glossary/c/#contributions-receivable "Contributions receivable are the amounts due, as of the date of the financial statements, to the plan from employers, participants, and other sources of funding (for example, state subsidies or federal grants). They include amounts due pursuant to firm commitments, as well as legal or contractual requirements.") shall be separately identified. #### Participant Loans ##### [310-962-45-2](https://asc.understandingaccounting.org/asc/310/962/#310-962-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:07.850Z to 2026-09-09T23:33:07.850Z Record version: sha256:ee4e0fc0d33cf162f08c525ab5f78e2f87303318700c8a40030babd92091aaea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For reporting purposes, participant loans shall be classified as notes receivable from participants. Source downloaded (UTC): 2026-09-09T23:33:11.774Z to 2026-09-09T23:33:11.774Z Record version: sha256:9565855052286bdf05a243ab6a54e03e49a8269d9e1686cc2cde0933240c8bf0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/962/#50-disclosure) SEC content: no #### Participant Loans ##### [310-962-50-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:11.774Z to 2026-09-09T23:33:11.774Z Record version: sha256:dbdf42ed8af066861ebb473e66353bcf688e8b3880bc0c0503315d1287c61718 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The fair value disclosures prescribed in paragraphs [825-10-50-10 through 50-16](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-10) are not required for participant loans. Source downloaded (UTC): 2026-09-09T23:33:15.404Z to 2026-09-09T23:33:15.404Z Record version: sha256:ea1c5e587935375d34b29828d6a8e40004f3fa23ef10f1edcd7d785e63e2691e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-962-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/310/962/#65-transition-and-open-effective-date-information) SEC content: no ##### [310-962-65-1](https://asc.understandingaccounting.org/asc/310/962/#310-962-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:15.404Z to 2026-09-09T23:33:15.404Z Record version: sha256:e3b0930aa20ae0d8876530fefa6fba9dcbcd90a5d441c1cf640da0a66d03626f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/29/2012 after the end of the transition period stated in Accounting Standards Update No. 2010-25, _Plan Accounting—Defined Contribution Pension Plans (Topic 962): Reporting Loans to Participants by Defined Contribution Pension Plans_. Source downloaded (UTC): 2026-09-09T23:33:19.513Z to 2026-09-09T23:33:42.861Z Record version: sha256:4bc9541e563c1e2cbe5eadf6695d05ddcd074c2f54a746636210379b34abf56d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965: Receivables — Plan Accounting—Health and Welfare Benefit Plans ### Machine-generated study aids ```json { "summary": "This Subtopic governs receivables of health and welfare benefit plans, principally contributions receivable from employers and amounts due from insurance entities. Employer contributions are recognized only when supported by a formal commitment (e.g., a governing-body resolution, an established pattern of post-year-end funding, a tax deduction, or the employer's own recorded payable), and contributions receivable must carry an allowance for estimated uncollectible amounts. Deposits with insurance entities or service providers and premium stabilization reserves remain plan assets until applied against premiums or claims, and experience-rating refunds are recorded when probable and reasonably estimable.", "key_points": [ "Evidence of a formal commitment supporting recognition of an employer contribution receivable may include a governing-body resolution, a consistent pattern of post-plan-year payments under an established funding policy, a federal income tax deduction for periods ending on or before the financial statement date, or the employer's recognition of a contribution payable (310-965-25-1).", "An accrued liability on the employer's balance sheet, or benefit obligations exceeding the plan's net assets available for benefits, does not by itself support recognizing a contribution receivable by the plan (310-965-25-1(d)).", "Payments to an insurance entity must be analyzed to determine the extent to which financial risk has actually been transferred from the plan versus merely constituting a deposit; see Subtopic 340-30 (310-965-25-2).", "Deposits held by insurance entities and premium stabilization reserves are generally reported as plan assets until used to pay premiums, with forfeitability on contract termination considered in recognizing the asset (310-965-25-3); deposits with service providers are plan assets until applied against paid claims (310-965-40-1).", "An experience-rating refund due at the financial statement date is reported as a plan asset if a refund is probable and the amount can be reasonably estimated (310-965-25-3).", "Contributions receivable shall include an allowance for estimated uncollectible amounts (310-965-35-1) and shall be separately identified (310-965-45-1).", "Disclosure is required of the nature of payments to insurance entities for required loss deposits and premium stabilization reserves (310-965-50-1), and of the fact that an experience-rating refund cannot be reasonably estimated (310-965-50-2)." ], "categories": [ "Recognition", "Subsequent measurement", "Presentation", "Disclosure" ], "audience_level": "intermediate", "student_note": "Exam questions hinge on the fact that a plan cannot book a contribution receivable merely because the employer has an accrued liability or the plan is underfunded — objective evidence of a formal commitment is required. Also remember that deposits and premium stabilization reserves stay on the plan's books as assets until actually applied to premiums or claims.", "related_topics": [ "965-10", "965-205", "340-30", "960", "962", "310-10" ], "key_concepts": [ "contributions receivable", "formal commitment", "allowance for estimated uncollectible amounts", "premium stabilization reserve", "experience-rating refund", "deposits with insurance entities", "risk transfer", "plan assets" ] } ``` Source downloaded (UTC): 2026-09-09T23:33:19.513Z to 2026-09-09T23:33:19.513Z Record version: sha256:d12e66a38959a4ac46c15e586f8882a3c6ca6318c9366f57159dfa8aa0de6e08 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/965/#00-status) SEC content: no ##### [310-965-00-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:19.513Z to 2026-09-09T23:33:19.513Z Record version: sha256:dffc35f7fcd6820574ba5564feb1eb59d7a958a1ddc78afdae54c4c09c624ba0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Plan Assets (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Plan Assets (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
965-310-25-3AmendedAccounting Standards Update No. 2014-0603/14/2014
965-310-40-1AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-09T23:33:22.346Z to 2026-09-09T23:33:22.346Z Record version: sha256:dc81384f30180044b0cc23638f7510ef57f3e5af4dc6d67cea906d9e1321ee4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/965/#05-overview-and-background) SEC content: no ##### [310-965-05-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:22.346Z to 2026-09-09T23:33:22.346Z Record version: sha256:95a4117798f5705280a74051786dd24d415ed9882fddff67ff258db98f0010b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on receivables for [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services."). Source downloaded (UTC): 2026-09-09T23:33:26.335Z to 2026-09-09T23:33:26.335Z Record version: sha256:c7ad5121e91c5d31a81d47c477894982b734986abaa978e047e0ed8fbdf6c994 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/965/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-965-15-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:26.335Z to 2026-09-09T23:33:26.335Z Record version: sha256:b98b781909a58819bfecc796414ac70da27b4afe128dfaa75257c024609eff77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 965-10-15. Source downloaded (UTC): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:252eb8626346786638928d4c8a1ca44d0d6f482fe3bc5c444051bfcf18bf767e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/965/#25-recognition) SEC content: no #### Employer Contributions ##### [310-965-25-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:95f2299039857af1102d3fd97e351fa630fc0e00fa7ff1765b2ada20ad09829f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. With respect to employers' contributions recognized pursuant to a formal commitment, evidence of such a commitment may include any of the following: 1. a A resolution by the employer's governing body approving a specified contribution 2. b A consistent pattern of making payments after the end of the plan year, pursuant to an established funding policy that attributes such subsequent payments to the preceding plan year 3. c A deduction of a contribution for federal income tax purposes for periods ending on or before the financial statement date 4. d The employer's recognition as of the financial statement date of a contribution payable to the plan. The existence of an accrued liability in the employer's statement of financial position or a plan's benefit obligations exceeding its net assets available for benefit obligations does not, by itself, provide sufficient support for recognition of a contribution receivable by the plan. #### Premiums Paid to Insurance Entities ##### [310-965-25-2](https://asc.understandingaccounting.org/asc/310/965/#310-965-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:9452c1478038107d2c12e3d15b8649091780b00bb01edf134c192034247e5969 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whether a premium paid to an insurance entity represents payment for the transfer of risk or merely represents a deposit will depend on the circumstances of the arrangement. The nature of payments made to an insurance entity shall be analyzed to determine the extent to which financial risk has been transferred from the plan to the insurance entity. Insurance entities may require that a deposit be maintained that can be applied against possible future losses in excess of current premiums. See Subtopic 340-30 for additional guidance on accounting for payments to insurance entities. ##### [310-965-25-3](https://asc.understandingaccounting.org/asc/310/965/#310-965-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:33a6936e20e684413a2c868a2667c6484cc5c79e14ddeb29433b05d54e816afe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. These deposits shall be reported as [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Securities of the employer held by the plan are includable in plan assets provided they are transferable. Assets not segregated in a trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes are not plan assets, even though the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify as plan assets.") until such amounts are used to pay premiums. Similarly, premium stabilization reserves, which exist when premiums paid to an insurance entity exceed the total of claims paid and other charges, are held by an insurance entity and used to reduce future premium payments. Premium stabilization reserves generally shall be reported as assets of the plan until such amounts are used to pay premiums. If such reserves are forfeitable when the insurance contract terminates, this possibility shall be considered in recognizing this asset. In the case of experience-rating refunds, and in cases when the policy year does not coincide with the plan's fiscal year, the refund due as of the financial statement date shall be reported as a plan asset if it is probable that a refund is due and the amount can be reasonably estimated. Source downloaded (UTC): 2026-09-09T23:33:34.671Z to 2026-09-09T23:33:34.671Z Record version: sha256:cdfb1a89a5075b12eb29bc4c86d6c0018089d9da2fc9cdc3b9da11b6712ec717 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/965/#35-subsequent-measurement) SEC content: no ##### [310-965-35-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:34.671Z to 2026-09-09T23:33:34.671Z Record version: sha256:5877aa9942a88129fab54daf84d6493bdbf0239cf62b6c38c856e75889895200 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contributions receivable](https://asc.understandingaccounting.org/glossary/c/#contributions-receivable "Contributions receivable are the amounts due, as of the date of the financial statements, to the plan from employers, participants, and other sources of funding (for example, state subsidies or federal grants). They include amounts due pursuant to firm commitments, as well as legal or contractual requirements.") shall include an allowance for estimated uncollectible amounts. Source downloaded (UTC): 2026-09-09T23:33:37.605Z to 2026-09-09T23:33:37.605Z Record version: sha256:f378e042df42f43fa553007fff8bd281c62269411b684b05f35dbb398937c4b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/965/#40-derecognition) SEC content: no ##### [310-965-40-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:37.605Z to 2026-09-09T23:33:37.605Z Record version: sha256:2ad90592c72cb367207d07a55629533b2c0a7a5462388b837c77fa5e7879e095 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Service providers may require that deposits by the plan be applied against claims paid on behalf of plan participants. Such deposits shall be reported as [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Securities of the employer held by the plan are includable in plan assets provided they are transferable. Assets not segregated in a trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes are not plan assets, even though the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify as plan assets.") until the deposit is applied against paid claims. Source downloaded (UTC): 2026-09-09T23:33:40.846Z to 2026-09-09T23:33:40.846Z Record version: sha256:c03fe13d39cb17bf6e84512ebc40ab2bbc6d9ad5d20b37fcf3e9fa2f309c7ef2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/965/#45-other-presentation-matters) SEC content: no ##### [310-965-45-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:40.846Z to 2026-09-09T23:33:40.846Z Record version: sha256:aca9aa9acdea18a69099fbbfb84c086135c97e4643291641e2bebf33993c1aaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Contributions receivable](https://asc.understandingaccounting.org/glossary/c/#contributions-receivable "Contributions receivable are the amounts due, as of the date of the financial statements, to the plan from employers, participants, and other sources of funding (for example, state subsidies or federal grants). They include amounts due pursuant to firm commitments, as well as legal or contractual requirements.") shall be separately identified. Source downloaded (UTC): 2026-09-09T23:33:42.861Z to 2026-09-09T23:33:42.861Z Record version: sha256:e013e4ce0da522cbe294ab7d07c3e9d7bc193ba84b86bab909459611ae8ffd84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/965/#50-disclosure) SEC content: no ##### [310-965-50-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:42.861Z to 2026-09-09T23:33:42.861Z Record version: sha256:b097c78b1d326de91c153cda7e4e318c804636bdff746fd518182497759e3b1d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of the nature of payments made to insurance entities shall be made for both of the following: 1. a Deposits required to be maintained to be applied against future losses in excess of current premiums 2. b Premium stabilization reserves. ##### [310-965-50-2](https://asc.understandingaccounting.org/asc/310/965/#310-965-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:42.861Z to 2026-09-09T23:33:42.861Z Record version: sha256:04690360341b86d33c4f99a10c941f0aebe7ef021c3db4b151da8563de239337 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the amount of the refund due from an insurance entity for experience-rating cannot be reasonably estimated, that fact shall be disclosed. Source downloaded (UTC): 2026-09-09T23:33:45.972Z to 2026-09-09T23:34:07.123Z Record version: sha256:4ea4105f101f9382d7d07a2b8e02e257d00832632db1ed5612f727b44f654737 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976: Receivables — Real Estate—Retail Land ### Machine-generated study aids ```json { "summary": "This subtopic governs the measurement, derecognition, and disclosure of receivables arising from retail land sales. Its core rule is that an allowance for contract cancellations must be provided for receivables not expected to be collected because of cancellation, estimated from historical collection data drawn from a representative, current sample covering an adequate period (310-976-35-1). Cancelled contract receivable balances are charged in full against that allowance (310-976-40-1), and specified receivable disclosures are required (310-976-50-1).", "key_points": [ "An allowance shall be provided for retail land sale receivables not expected to be collected because of cancellation in subsequent periods (310-976-35-1).", "The estimate must be based on historical data from a representative sample of receivables reflecting the latest available collection data and covering an adequate period of time (310-976-35-1).", "Sampled receivables with payments unpaid at the end of the sample period for the specified delinquency periods are treated as uncollectible, and the allowance for previously recognized sales is adjusted accordingly (310-976-35-1).", "The specified delinquency periods may be extended if the seller's recent experience has been better, or if the buyer has accepted or will accept personal liability on the debt and the buyer's ability to complete payment can be determined (310-976-35-2).", "When contracts are cancelled, the related receivable balances are charged in their entirety to the allowance for contract cancellations (310-976-40-1).", "Required disclosures are maturities of accounts receivable for each of the five years following the balance sheet date, delinquent accounts receivable and the method(s) of determining delinquency, and the weighted average and range of stated interest rates (310-976-50-1).", "Certain measurement paragraphs (310-976-30-1 and 35-3) were superseded by ASU 2014-09, which moved retail land sale revenue recognition into the ASC 606 framework." ], "categories": [ "Subsequent measurement", "Derecognition", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "This is a narrow industry-specific pocket of guidance: the key idea is that cancellation risk on retail land contracts is handled through a dedicated allowance estimated from delinquency sampling, not through general credit-loss judgment. A common misunderstanding is thinking ASU 2014-09 wiped out the whole subtopic — it superseded the revenue-related measurement paragraphs, but the cancellation allowance, charge-off, and disclosure requirements remain.", "related_topics": [ "976-10", "606-10", "326-20", "310-10", "340-40" ], "key_concepts": [ "retail land sales", "allowance for contract cancellations", "delinquency periods", "historical collection data", "receivable maturities disclosure", "stated interest rates", "charge-off to allowance" ] } ``` Source downloaded (UTC): 2026-09-09T23:33:45.972Z to 2026-09-09T23:33:45.972Z Record version: sha256:60866be4a4131dd92ced7328275a3e94d5cdf1f43eb0d30fb6cdffdfe3774258 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/976/#00-status) SEC content: no ##### [310-976-00-1](https://asc.understandingaccounting.org/asc/310/976/#310-976-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:45.972Z to 2026-09-09T23:33:45.972Z Record version: sha256:59624e22a07aa77d1505a115d13bdaebd7a505ddacd4c1cfa1de2836b1606e09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Full Accrual MethodSupersededAccounting Standards Update No. 2014-0905/28/2014
976-310-30-1SupersededAccounting Standards Update No. 2014-0905/28/2014
976-310-35-3SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T23:33:47.804Z to 2026-09-09T23:33:47.804Z Record version: sha256:15f8d94d1ab3899120f03fd1d62c65d1226adbe17b1225e2c68ff74dbdf91aa0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/976/#05-overview-and-background) SEC content: no ##### [310-976-05-1](https://asc.understandingaccounting.org/asc/310/976/#310-976-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:47.804Z to 2026-09-09T23:33:47.804Z Record version: sha256:5b025dcffb7388f6b88dc9d6064043bd69ca7e1852908e1215deac6e5c529b0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides measurement and disclosure guidance concerning receivables from retail land sales. Source downloaded (UTC): 2026-09-09T23:33:50.046Z to 2026-09-09T23:33:50.046Z Record version: sha256:f06aba9e499933025dac9274422fc857f9a890ebea1c7da5d5fef125e955b746 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/976/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-976-15-1](https://asc.understandingaccounting.org/asc/310/976/#310-976-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:50.046Z to 2026-09-09T23:33:50.046Z Record version: sha256:09a5c8f43f448959e59309bace744501c8816038c5e1004d48560bfcbb76707e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 976-10-15. Source downloaded (UTC): 2026-09-09T23:33:52.466Z to 2026-09-09T23:33:52.466Z Record version: sha256:bf80daccfc71ebb0d1c9b1bcb06f8014d57392beb32471eb856fa5712af96202 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-20: 20 Glossary [Read section](https://asc.understandingaccounting.org/asc/310/976/#20-glossary) SEC content: no Source downloaded (UTC): 2026-09-09T23:33:54.114Z to 2026-09-09T23:33:54.114Z Record version: sha256:f64455299fa2de5f6e83050cf062e672d0c514b18a20cc5dcb5ed3e47660b835 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/976/#30-initial-measurement) SEC content: no ##### [310-976-30-1](https://asc.understandingaccounting.org/asc/310/976/#310-976-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:54.114Z to 2026-09-09T23:33:54.114Z Record version: sha256:0770e96aa9cd3aa908b60e870fbe2cf77b03e66e116d623ef5012506e6abbbe7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:33:57.812Z to 2026-09-09T23:33:57.812Z Record version: sha256:9374ee7f9ae4edc0a401d7d0ab0e62de44263d63e658abdf35fe06f78a44081c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/976/#35-subsequent-measurement) SEC content: no ##### [310-976-35-1](https://asc.understandingaccounting.org/asc/310/976/#310-976-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:57.812Z to 2026-09-09T23:33:57.812Z Record version: sha256:f36045375865bab70c7b8a21a40f5efe912332dc5362b0194bd98ed5b8747f8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An allowance shall be provided for receivables that are not expected to be collected because of cancellation in subsequent periods. Historical data shall be evaluated to predict the collection of receivables from current sales. The historical data shall be selected from a representative sample of receivables that reflect the latest available collection data and cover an adequate period of time. The receivables in the sample shall be considered uncollectible and the allowance for contract cancellations provided for previously recognized sales shall be appropriately adjusted if payments due are unpaid at the end of the sample period selected for the following delinquency periods. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-69A1C71E-3795-4B1D-88A8-51C808E07D5D-low.gif) Percent of Contract Price Paid Delinquency Period Less than 25 percent 90 days 25 percent but less than 50 percent 120 days 50 percent and over 150 days ##### [310-976-35-2](https://asc.understandingaccounting.org/asc/310/976/#310-976-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:57.812Z to 2026-09-09T23:33:57.812Z Record version: sha256:6a2cf0577271ed89184453e96432a760f319140209174309076e7d0a53761609 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The specified delinquency periods may be extended if the seller's recent experience has been better or if the buyer has accepted, or is willing to accept, personal liability on its debt, provided that the buyer's ability to complete payment on the contract can be determined. ##### [310-976-35-3](https://asc.understandingaccounting.org/asc/310/976/#310-976-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:57.812Z to 2026-09-09T23:33:57.812Z Record version: sha256:215583d3caaa6cb27ecfd9b4be1233807718327878e5220e710adb0601f71933 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:34:00.582Z to 2026-09-09T23:34:00.582Z Record version: sha256:61ecd7e92feb51e9ca0de3b981723af087019e1d5ad8807515e95cf2973e38e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/976/#40-derecognition) SEC content: no ##### [310-976-40-1](https://asc.understandingaccounting.org/asc/310/976/#310-976-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:00.582Z to 2026-09-09T23:34:00.582Z Record version: sha256:18a42a6e537ad21f4ff1e876cb43c5fbeca2d9746678296cdd8340146c5a1f45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receivable balances applicable to cancelled contracts are charged in their entirety to the allowance for contract cancellations when those contracts are cancelled. Source downloaded (UTC): 2026-09-09T23:34:03.583Z to 2026-09-09T23:34:03.583Z Record version: sha256:864f107121753f4da7d27a9ee4a092c00c6567eaadb7939d69bd24cc9bd7dac3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-976-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/976/#50-disclosure) SEC content: no ##### [310-976-50-1](https://asc.understandingaccounting.org/asc/310/976/#310-976-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:03.583Z to 2026-09-09T23:34:03.583Z Record version: sha256:d8796684426a4832bcb06a820ad9311d63980b5470b701c602eba3d9835df996 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosures by entities with retail land sales operations shall include all of the following: 1. a Maturities of accounts receivable for each of the five years following the date of the financial statements 2. b Delinquent accounts receivable and the method(s) for determining delinquency 3. c The weighted average and range of stated interest rates of receivables. Source downloaded (UTC): 2026-09-09T23:34:09.771Z to 2026-09-09T23:34:36.034Z Record version: sha256:eab0c3b75b32b801124e1748c91889dd4923fee70b50929d87105c49e77473f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978: Receivables — Real Estate—Time-Sharing Activities ### Machine-generated study aids ```json { "summary": "This Subtopic governs the accounting for notes receivable arising from time-sharing interval sales, which are typically seller-financed recourse promissory notes with 5- to 10-year terms. It requires uncollectibility (of both principal and interest) to be measured on actual collection experience rather than on proceeds from receivable sales or securitizations, and requires an allowance for credit losses estimated each reporting period (at least quarterly) under Subtopic 326-20. It also prescribes specific disclosures about note maturities, interest rates, and allowance activity, including receivables sold with recourse.", "key_points": [ "Uncollectibility covers both principal and interest; accrued interest income receivable determined to be uncollectible is charged against interest income when so determined (310-978-35-2).", "Uncollectibility occurs when a receivable becomes wholly uncollectible or is modified so that less than 100 percent of the original note is collected, and is measured on actual collection experience—not on proceeds from receivable sales, securitizations, or hypothecations—regardless of who services the receivables (310-978-35-3).", "Note modifications and deferments are accounted for under Topic 310; downgrades resulting in an expected credit loss are accounted for under Topic 326, with resulting reductions in recorded investment charged against the allowance for uncollectibles (310-978-35-4).", "Incremental, direct costs of collection programs are charged to expense as incurred (310-978-35-4).", "The seller must evaluate receivables and the appropriateness of its allowance each reporting period and at least quarterly under Subtopic 326-20, with a corresponding adjustment to cost of sales and inventory (310-978-35-5).", "The allowance is determined considering expected credit losses by year of sale, aging, unit location, contract terms, collection experience, economic conditions, reasonable and supportable forecasts, and other qualitative factors (310-978-35-6).", "Required disclosures include five-year maturities of notes receivable reconciled to the balance sheet, weighted average and range of stated interest rates, estimated cost to complete improvements and promised amenities, and allowance activity—including activity on receivables sold with recourse (310-978-50-1)." ], "categories": [ "Subsequent measurement", "Impairment", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The trap here is measuring uncollectibility by what a seller nets from selling or securitizing its receivable portfolio—the Codification instead requires measurement based on actual collection experience, and recourse sales still require the seller to disclose allowance activity on the sold receivables. Note also that most of the old revenue/derecognition paragraphs were superseded by ASU 2014-09, so revenue on time-share sales now runs through Topic 606.", "related_topics": [ "310", "326", "978-330", "978-10", "606", "250" ], "key_concepts": [ "time-sharing notes receivable", "allowance for uncollectibles", "expected credit losses", "seller financing with recourse", "loan modification and deferment", "downgrade", "relative sales value method", "receivable securitization and hypothecation" ] } ``` Source downloaded (UTC): 2026-09-09T23:34:09.771Z to 2026-09-09T23:34:09.771Z Record version: sha256:3bcbbb72a20df6d93169ecc89c9db4876623a967037ed296f8c0c9b196d425d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/978/#00-status) SEC content: no ##### [310-978-00-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:09.771Z to 2026-09-09T23:34:09.771Z Record version: sha256:c3948cf5d82c3ee1012ad4a0dc50d70cb402c69e43cd03484e5e997f030a77ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AssumptionSupersededAccounting Standards Update No. 2014-0905/28/2014
Modification (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Percentage-of-Completion MethodSupersededAccounting Standards Update No. 2014-0905/28/2014
Sales ValueSupersededAccounting Standards Update No. 2014-0905/28/2014
Time-SharingAmendedAccounting Standards Update No. 2014-0603/14/2014
Undivided Interest (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
978-310-30-1SupersededAccounting Standards Update No. 2014-0905/28/2014
978-310-30-2SupersededAccounting Standards Update No. 2014-0905/28/2014
978-310-35-4AmendedAccounting Standards Update No. 2022-0203/31/2022
978-310-35-4 through 35-6
AmendedAccounting Standards Update No. 2014-0905/28/2014
978-310-35-4AmendedAccounting Standards Update No. 2014-0603/14/2014
978-310-35-5AmendedAccounting Standards Update No. 2016-1306/16/2016
978-310-35-6AmendedAccounting Standards Update No. 2016-1306/16/2016
978-310-35-7SupersededAccounting Standards Update No. 2014-0905/28/2014
978-310-40-1SupersededAccounting Standards Update No. 2014-0905/28/2014
978-310-40-2SupersededAccounting Standards Update No. 2014-0905/28/2014
978-310-45-1SupersededAccounting Standards Update No. 2014-0905/28/2014
978-310-50-1AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T23:34:12.208Z to 2026-09-09T23:34:12.208Z Record version: sha256:d5ac6e8dd47487a2aa2f03f8757a77fa4ab4c2d2b8b3cdd03b4294bf95d10567 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/978/#05-overview-and-background) SEC content: no ##### [310-978-05-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:12.208Z to 2026-09-09T23:34:12.208Z Record version: sha256:fc5131642fa10084e8fbddf89b24ab649b91c7c7d38350583e76363a55c7421d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses [time-sharing](https://asc.understandingaccounting.org/glossary/t/#time-sharing "An arrangement in which a seller sells or conveys the right to occupy a dwelling unit for specified periods in the future. Forms of time-sharing arrangements include but are not limited to fixed and floating time, interval ownership, undivided interests, points programs, vacation clubs, right-to-use arrangements such as tenancy-for-years arrangements, and arrangements involving special-purpose entities. In this context, an undivided interest is a time-sharing arrangement that involves a tenant-in-common interest in a condominium unit or entire improved property, and in which the interest holder is assigned a specific period (generally, a specific week). The interest holder is also assigned a specific unit if the undivided interest is in the entire improved property.") receivables recognition and measurement issues. ##### [310-978-05-2](https://asc.understandingaccounting.org/asc/310/978/#310-978-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:12.208Z to 2026-09-09T23:34:12.208Z Record version: sha256:052346739b6f3e59c5922b6887954590f95feff99183d2cafcdde309405235d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Most sales of time-sharing intervals are to retail consumers, who often choose to use seller-provided financing. Although certain financial institutions will participate in the securitization or hypothecation of portfolios of time-sharing receivables, financial institutions typically will not finance the purchase of individual time-sharing intervals. Therefore, a majority of the sales price is often financed by the [time-share](https://asc.understandingaccounting.org/glossary/t/#time-share "See Interval.") seller through a promissory note (generally, with a term of 5 to 10 years) signed by the buyer. The promissory note is typically a [recourse](https://asc.understandingaccounting.org/glossary/r/#recourse "The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: Failure of debtors to pay when due The effects of prepayments Adjustments resulting from defects in the eligibility of the transferred receivables.") note secured by the time-sharing [interval](https://asc.understandingaccounting.org/glossary/i/#interval "The specific period (generally, a specific week) during the year that a time-sharing unit is specified by agreement to be available for occupancy by a particular customer. Also denoted Time-Sharing Interest or Time-Share."). Delinquency and default rates on promissory notes vary widely among individual time-sharing entities and tend to fluctuate in line with the general state of the economy. ##### [310-978-05-3](https://asc.understandingaccounting.org/asc/310/978/#310-978-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:12.208Z to 2026-09-09T23:34:12.208Z Record version: sha256:1a7288ba5868bac150ae3a1119aa60646bd22d8e5d4d58b284f8e241e0d68209 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In an effort to manage cash flows, many time-share sellers will sell, hypothecate, securitize, or otherwise monetize their receivables through another party. In general, those transactions are completed with some recourse to the time-share seller (that is, if receivables are uncollectible, the seller is liable for the bad debts up to stated limits). Source downloaded (UTC): 2026-09-09T23:34:15.202Z to 2026-09-09T23:34:15.202Z Record version: sha256:9325c8947398c2e9f1bbdcfef8f6b39c0ea0d62795cc7aeeced70f39dc437b59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/978/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-978-15-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:15.202Z to 2026-09-09T23:34:15.202Z Record version: sha256:696e13a20797681c748e8afe15e265ba968fcaa9f54372a939c27ba43d1ccae3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 978-10-15. Source downloaded (UTC): 2026-09-09T23:34:21.100Z to 2026-09-09T23:34:21.100Z Record version: sha256:9d84886730062b7bb0a7416925a3aafe7645fe01c18a86501814539deec7b025 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/978/#30-initial-measurement) SEC content: no ##### [310-978-30-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:21.100Z to 2026-09-09T23:34:21.100Z Record version: sha256:3b8c67161e1fb444eb5b5cc370e6c17afcf25767730c6ee2b2e5d6f16a63fd60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-978-30-2](https://asc.understandingaccounting.org/asc/310/978/#310-978-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:21.100Z to 2026-09-09T23:34:21.100Z Record version: sha256:c9fac9efce074766d1f9e2d44a121b065796ed73dc827065655b94314449d600 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:6ed2edf4154896db621224172bf55e2bc736738892a0d38b5b69b4b7e28ad994 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/978/#35-subsequent-measurement) SEC content: no #### Collectibility of Receivable ##### [310-978-35-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:ba98418439c66a4855d41eb3686c4c7949cbd08513ee3b766eaad84cf03422ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The collection of notes receivable is an important function for sellers of [time-sharing](https://asc.understandingaccounting.org/glossary/t/#time-sharing "An arrangement in which a seller sells or conveys the right to occupy a dwelling unit for specified periods in the future. Forms of time-sharing arrangements include but are not limited to fixed and floating time, interval ownership, undivided interests, points programs, vacation clubs, right-to-use arrangements such as tenancy-for-years arrangements, and arrangements involving special-purpose entities. In this context, an undivided interest is a time-sharing arrangement that involves a tenant-in-common interest in a condominium unit or entire improved property, and in which the interest holder is assigned a specific period (generally, a specific week). The interest holder is also assigned a specific unit if the undivided interest is in the entire improved property.") intervals. [Time-share](https://asc.understandingaccounting.org/glossary/t/#time-share "See Interval.") sellers experience some level of [uncollectibility](https://asc.understandingaccounting.org/glossary/u/#uncollectibility "A situation in which, as a result of credit issues, the time-share seller is unable to collect all amounts due (both principal and interest) according to the contractual terms of a note receivable from a buyer, or a time-share receivable has not been written off but facts and circumstances indicate that it is probable that the seller will not collect all contractual payments. Any sale that, as a result of credit issues, is cancelled or modified subsequent to being recorded as a sale is considered uncollectible. For purposes of this definition, probable is defined in paragraph 450-20-25-1 as \"likely to occur\".") in a notes receivable portfolio in the ordinary course of business. To maximize collections, sellers use several kinds of collection programs, including modifications, deferments, assumptions, and downgrades. Sellers incur various costs in using those collection programs. The following provides guidance on accounting for various forms of uncollectibility and the associated costs. ##### [310-978-35-2](https://asc.understandingaccounting.org/asc/310/978/#310-978-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:7c8324838a2e7a8949ec12a68a9e7513768700d558ee60718260d05b882e1560 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Uncollectibility incorporates losses of both principal and interest. Accrued interest income receivable that is determined to be uncollectible shall be charged against interest income at the time the receivable is determined to be uncollectible. ##### [310-978-35-3](https://asc.understandingaccounting.org/asc/310/978/#310-978-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:faf5a415d5339a63dedf031028dea3880c09a221f6ad9e368fd009da84f2b732 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Uncollectibility occurs whenever a receivable either becomes wholly uncollectible or is modified in some manner that results in less than 100-percent collection of the original note. The measurement of uncollectibility shall be based on actual receivables collection experience (and other considerations)—whether the seller or a third party is the servicer of the receivables—rather than the amounts a seller receives as proceeds for receivables sales, securitizations, or hypothecations. ##### [310-978-35-4](https://asc.understandingaccounting.org/asc/310/978/#310-978-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:b0c3fb265c9956f0f5730106ded352b78cf549d3b2919a41320edf22935054c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A creditor (time-share seller) shall account for a note receivable modification or [deferment](https://asc.understandingaccounting.org/glossary/d/#deferment "The postponement of some or all of a debtor's payment obligations.") in accordance with Topic 310.A creditor shall account for a [downgrade](https://asc.understandingaccounting.org/glossary/d/#downgrade "A transaction under which, as a result of credit concerns, the holder of a time-sharing interval returns the interval to the seller in exchange for a lower-valued interval (and a corresponding reduction in contractual payment obligation). The determination of whether the value is lower is based on a comparison of the sales value of the new interval with the original sales value of the original interval.") that results in an expected credit loss in accordance with Topic 326 on credit losses.Any reductions in the recorded investment in a note receivable resulting from the application of that Topic shall be charged against the allowance for uncollectibles. Incremental, direct costs associated with uncollectibility, such as costs of collection programs, shall be charged to expense as incurred. ##### [310-978-35-5](https://asc.understandingaccounting.org/asc/310/978/#310-978-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:31b7f52c6c5e806a409260a1cd96be839ff55ee2765012e956335dc9764f474f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a time-sharing sale transaction has been recorded, accounting for the allowance for credit losses follows similar valuation principles as any receivable. Each reporting period and at least quarterly a seller evaluates its receivables, estimates the amount it expects to ultimately collect, and evaluates the appropriateness of its allowance pursuant to Subtopic 326-20 on financial instruments measured at amortized cost. The allowance is then adjusted in accordance with Subtopic 326-20. A corresponding adjustment is also made to cost of sales and inventory. ##### [310-978-35-6](https://asc.understandingaccounting.org/asc/310/978/#310-978-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:b66863bef97e814ea726ed79a321a720c01d8dc6e47b26c8784f45602a6263ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The allowance for credit losses shall be determined based on consideration of expected credit losses by year of sale, as well as the aging of notes receivable and factors such as the location of the time-sharing units, contract terms, collection experience, economic conditions, reasonable and supportable forecasts, and other qualitative factors as appropriate in the circumstances. ##### [310-978-35-7](https://asc.understandingaccounting.org/asc/310/978/#310-978-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:24.752Z to 2026-09-09T23:34:24.752Z Record version: sha256:3afa547f86247cb34973ddfb14362c7b7c4e7c42f8f0675c5408e83ba4017572 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:34:26.954Z to 2026-09-09T23:34:26.954Z Record version: sha256:571bfb363e14502206b23c75e576f9f6cb9506656d1009d582bba5dfe48cf44c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/978/#40-derecognition) SEC content: no ##### [310-978-40-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:26.954Z to 2026-09-09T23:34:26.954Z Record version: sha256:eb228cf0f9ddb86d1b01157d888d926d2a27af9c18bbc88589c781c29b0dc75c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [310-978-40-2](https://asc.understandingaccounting.org/asc/310/978/#310-978-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:26.954Z to 2026-09-09T23:34:26.954Z Record version: sha256:013758b291abdde15d47153e4c3ee465153a7ef81dd8182e000610a0d1e4cf03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:34:29.886Z to 2026-09-09T23:34:29.886Z Record version: sha256:95b06deb3afccc15d5e7253fae8a9d1e8281584531c283295673169bbcc7edaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/978/#45-other-presentation-matters) SEC content: no ##### [310-978-45-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:29.886Z to 2026-09-09T23:34:29.886Z Record version: sha256:004c3b778c73b298d606862c355118b3b9c85ae9866b22782537ee11941e757e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-09T23:34:33.920Z to 2026-09-09T23:34:33.920Z Record version: sha256:3cce7fa37f08dc66f75368855b78a1e7d4bcb00d8612589ee449b064fd2c40a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-978-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/978/#50-disclosure) SEC content: no ##### [310-978-50-1](https://asc.understandingaccounting.org/asc/310/978/#310-978-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:34:33.920Z to 2026-09-09T23:34:33.920Z Record version: sha256:f800867f3fa46afadc4db6c0051311dcabb940b4b0397b9ff91c90fb1cbb9306 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As noted in paragraph [978-330-35-1](https://asc.understandingaccounting.org/asc/330/978/#330-978-35-1), the effects of changes in estimate in the [relative sales value method](https://asc.understandingaccounting.org/glossary/r/#relative-sales-value-method "The relative sales value method is similar to a gross profit method and is used to allocate inventory cost and determine cost of sales in conjunction with a sale. Under the relative sales value method, cost of sales is calculated as a percentage of net sales using a cost-of-sales percentage—the ratio of total estimated cost (including costs to complete, if any) to total estimated time-sharing revenue. Time-sharing revenue is calculated as total expected future revenue adjusted for total expected future bad-debt expense.") shall be disclosed in accordance with Topic 250. In addition to the information otherwise required by generally accepted accounting principles (GAAP), the financial statements of entities with [time-sharing](https://asc.understandingaccounting.org/glossary/t/#time-sharing "An arrangement in which a seller sells or conveys the right to occupy a dwelling unit for specified periods in the future. Forms of time-sharing arrangements include but are not limited to fixed and floating time, interval ownership, undivided interests, points programs, vacation clubs, right-to-use arrangements such as tenancy-for-years arrangements, and arrangements involving special-purpose entities. In this context, an undivided interest is a time-sharing arrangement that involves a tenant-in-common interest in a condominium unit or entire improved property, and in which the interest holder is assigned a specific period (generally, a specific week). The interest holder is also assigned a specific unit if the undivided interest is in the entire improved property.") transactions shall disclose all of the following: 1. a Maturities of notes receivable for each of the five years following the date of the financial statements and in the aggregate for all years thereafter. The total of the notes receivable balances displayed with the various maturity dates shall be reconciled to the balance-sheet amount of notes receivable. 2. b The weighted average and range of stated interest rates of notes receivable. 3. c The estimated cost to complete improvements and [promised amenities](https://asc.understandingaccounting.org/glossary/p/#promised-amenities "Amenities that a developer is obligated to construct under the terms of time-sharing contracts with purchasers. See also Amenities."). 4. d The activity in the allowance for uncollectibles, including the balance in the allowance at the beginning and end of each period, additions associated with current-period sales, direct writeoffs charged against the allowance, and changes in estimate associated with prior-period sales. If the developer sells receivables with [recourse](https://asc.understandingaccounting.org/glossary/r/#recourse "The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: Failure of debtors to pay when due The effects of prepayments Adjustments resulting from defects in the eligibility of the transferred receivables."), the seller shall provide the same disclosure of activity on receivables sold. 5. e [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/).