# ASC 325-40-30: Investments—Other — Beneficial Interests in Securitized Financial Assets — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/325/40/#30-initial-measurement) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:d1d25e137cf37f192db33829afba96a05b4d37b1cf48345ceae90f2854258b35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-40-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/325/40/#30-initial-measurement) SEC content: no #### Initial Investment ##### [325-40-30-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:5efb8678ad9ec802e1d6fb0020f99e44f075fda8278e9edbb1b9cd13b547db26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the holder 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.") 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](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-1). ##### [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:e1b11e2e98370156e2e7d5a1f06716eb62dc1eb3b6bed33ecb10709dade6db9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall apply the initial measurement guidance for [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.") 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. #### Accretable Yield ##### [325-40-30-2](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:c2cad393c129272cbb2623c5ccc2b06e9d9b5b5feac48e32a54fe54d8aa8eff0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). ##### [325-40-30-3](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:6f3bcbe0a0da6eacd1dd11ac861cd70945cad4745854a6eef2ffe17c65b8d94e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [325-40-30-4](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:44:41.675Z to 2026-09-09T23:44:41.675Z Record version: sha256:7311e28f8e2d30d2e4391b3c07a5b2e42361a0f5935021f8fd14ef290c2514c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [325-40-55-1](https://asc.understandingaccounting.org/asc/325/40/#325-40-55-1) for implementation guidance.