{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/325/40/#30-initial-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"325","topic_title":"Investments—Other","subtopic":"325-40","subtopic_title":"Beneficial Interests in Securitized Financial Assets","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Initial Investment","paragraphs":[{"citation":"325-40-30-1","para":"30-1","html":"
If the holder of the beneficial interest is the transferor, the initial investment would be the fair value of the beneficial interest as of the date of transfer, as required by paragraph 860-20-30-1.
","snippet":"If the holder of the beneficial interest is the transferor, the initial investment would be the fair value of the beneficial interest as of the date of transfer, as required by paragraph 860-20-30-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5efb8678ad9ec802e1d6fb0020f99e44f075fda8278e9edbb1b9cd13b547db26","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}},{"citation":"325-40-30-1A","para":"30-1A","html":"
An entity shall apply the initial measurement guidance for purchased financial assets with credit deterioration in Subtopic 326-20 to a beneficial interest classified as held-to-maturity and in Subtopic 326-30 to a beneficial interest classified as available for sale, if it meets either of the following conditions:
  1. a
    There is a significant difference between contractual cash flows and expected cash flows at the date of recognition.
  2. b
    The beneficial interests meet the definition of purchased financial assets with credit deterioration.
","snippet":"An entity shall apply the initial measurement guidance for purchased financial assets with credit deterioration in Subtopic 326-20 to a beneficial interest classified as held-to-maturity and in Subtopic 326-30 to a benef…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e1b11e2e98370156e2e7d5a1f06716eb62dc1eb3b6bed33ecb10709dade6db9c","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d78e6f14ff521a7b8c053ee4fa621f644927cace8619bfbf78f7881124fe7388","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}},{"block":null,"heading":"Accretable Yield","paragraphs":[{"citation":"325-40-30-2","para":"30-2","html":"
For beneficial interests that do not apply the accounting for purchased financial assets with credit deterioration, the holder shall measure accretable yield initially as the excess of all cash flows expected to be collected attributable to the beneficial interest estimated at the acquisition-transaction date (the transaction date) over the initial investment. For beneficial interests that apply the accounting for purchased financial assets with credit deterioration, the holder shall measure accretable yield initially as the excess of all contractual cash flows attributable to the beneficial interest at the acquisition-transaction date (the transaction date) over the amortized cost basis (the purchase price plus the initial allowance for credit losses).
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At the transaction date, all cash flows expected to be collected means the holder's estimate of the amount and timing of estimated future principal and interest cash flows used in determining the purchase price or the holder's fair value determination for purposes of determining a gain or loss under Topic 860.
","snippet":"At the transaction date, all cash flows expected to be collected means the holder's estimate of the amount and timing of estimated future principal and interest cash flows used in determining the purchase price or the ho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f3bcbe0a0da6eacd1dd11ac861cd70945cad4745854a6eef2ffe17c65b8d94e","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}},{"citation":"325-40-30-4","para":"30-4","html":"
See paragraph 325-40-55-1 for implementation guidance.
","snippet":"See paragraph 325-40-55-1 for implementation guidance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7311e28f8e2d30d2e4391b3c07a5b2e42361a0f5935021f8fd14ef290c2514c1","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4321fabeebf92f1102d193ece816b860daa7f2e63cb46b499687bfc93f684d7b","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1d25e137cf37f192db33829afba96a05b4d37b1cf48345ceae90f2854258b35","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1d25e137cf37f192db33829afba96a05b4d37b1cf48345ceae90f2854258b35","downloaded_from":"2026-09-09T23:44:41.675Z","last_downloaded_at":"2026-09-09T23:44:41.675Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481458","source_sha256":"dfab4021a9c132bc28f6876a2f3a5b087cc57b31f2e41d03f71a6e8bc55b4b79"}}