# ASC 326-20-15: Financial Instruments—Credit Losses — Measured at Amortized Cost — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/326/20/#15-scope-and-scope-exceptions)

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## ASC 326-20-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/326/20/#15-scope-and-scope-exceptions)

SEC content: no

#### Entities

##### [326-20-15-1](https://asc.understandingaccounting.org/asc/326/20/#326-20-15-1)

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The guidance in this Subtopic applies to all entities.

#### Instruments

##### [326-20-15-2](https://asc.understandingaccounting.org/asc/326/20/#326-20-15-2)

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The guidance in this Subtopic applies to the following items:

1.  a
    
    Financial assets measured at amortized cost basis, including the following:
    
    1.  1
        
        [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).")
        
    2.  2
        
        Held-to-maturity [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.")
        
    3.  3
        
        Receivables that result from revenue transactions within the scope of Topic 605 on revenue recognition, Topic 606 on revenue from contracts with customers, and Topic 610 on other income
        
    4.  4
        
        [Subparagraph superseded by Accounting Standards Update No. 2019-04](https://asc.understandingaccounting.org/updates/asu-2019-04/).
        
    5.  5
        
        Receivables that relate to repurchase agreements and securities lending agreements within the scope of Topic 860.
        
2.  b
    
    Net investments in leases recognized by a lessor in accordance with Topic 842 on leases.
    
3.  c
    
    Off-balance-sheet credit exposures not accounted for as insurance. Off-balance-sheet credit exposure refers to credit exposures on off-balance-sheet loan commitments, standby letters of credit, financial guarantees not accounted for as insurance, and other similar instruments, except for instruments within the scope of Topic 815 on derivatives and hedging.
    
4.  d
    
    [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.") that result from insurance transactions within the scope of Topic 944 on insurance.

##### [326-20-15-3](https://asc.understandingaccounting.org/asc/326/20/#326-20-15-3)

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Effective as of: not established by retrieval timestamps.


The guidance in this Subtopic does not apply to the following items:

1.  a
    
    Financial assets 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.") through net income
    
2.  b
    
    Available-for-sale debt securities
    
3.  c
    
    [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.") made to participants by defined contribution employee benefit plans
    
4.  d
    
    Policy loan receivables of an insurance entity
    
5.  e
    
    Promises to give (pledges receivable) of a not-for-profit entity
    
6.  f
    
    Loans and receivables between entities under common control.
    
7.  g
    
    Receivables arising from operating leases accounted for in accordance with Topic 842.