# ASC 325-40-25: Investments—Other — Beneficial Interests in Securitized Financial Assets — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/325/40/#25-recognition)

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## ASC 325-40-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/325/40/#25-recognition)

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##### [325-40-25-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-25-1)

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The carrying amount of the [beneficial interest](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.") used for purposes of measuring interest income shall be adjusted based on the application of the accounting model described in this Subtopic.

##### [325-40-25-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-25-2)

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The difference between the carrying amount and the fair value of a beneficial interest classified as a trading debt security shall be recorded through earnings as a gain or a loss.

##### [325-40-25-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-25-3)

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Paragraph [325-40-35-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-35-1) addresses how the holder shall recognize accretable yield.