{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/470/30/","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.","number":"470-30","topic":"470","title":"Participating Mortgage Loans","area":"Liabilities","paragraphs":31,"summary":"ASC 470-30 governs how a *borrower* accounts for a participating mortgage loan — a mortgage in which the lender is entitled to share in appreciation in the fair value of the mortgaged real estate project, in its results of operations, or both. If the lender participates in fair value appreciation, the borrower recognizes a participation liability at the fair value of the participation feature at loan inception with an offsetting debt discount, remeasures the liability to current fair value each reporting period (adjusting the discount), and amortizes the discount to interest expense using the interest method. Participations in results of operations are charged to interest expense in the period incurred with a credit to the participation liability.","concepts":["participating mortgage loan","participation liability","debt discount","interest method","effective interest rate","fair value appreciation participation","participation in results of operations","debt extinguishment gain or loss"],"categories":["Recognition","Subsequent measurement","Disclosure","Fair value"],"level":"intermediate","topic_title":"Debt","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
DebtSupersededAccounting Standards Update No. 2016-1912/14/2016
470-30-05-1AmendedAccounting Standards Update No. 2012-0410/01/2012
470-30-05-4AmendedAccounting Standards Update No. 2012-0410/01/2012
470-30-05-6AmendedAccounting Standards Update No. 2012-0410/01/2012
470-30-05-7AmendedAccounting Standards Update No. 2016-1912/14/2016
470-30-05-9AmendedAccounting Standards Update No. 2012-0410/01/2012
470-30-15-3AmendedAccounting Standards Update No. 2016-1912/14/2016
470-30-25-1AmendedAccounting Standards Update No. 2016-1912/14/2016
470-30-25-1AmendedAccounting Standards Update No. 2015-1006/12/2015
470-30-30-1AmendedAccounting Standards Update No. 2012-0410/01/2012
470-30-35-1AmendedAccounting Standards Update No. 2016-1912/14/2016
470-30-35-2AmendedAccounting Standards Update No. 2012-0410/01/2012
470-30-35-4AmendedAccounting Standards Update No. 2015-1006/12/2015
470-30-35-4AmendedAccounting Standards Update No. 2012-0410/01/2012
470-30-35-4AAddedAccounting Standards Update No. 2015-1006/12/2015
470-30-40-1AmendedAccounting Standards Update No. 2016-1912/14/2016
470-30-45-1AmendedAccounting Standards Update No. 2016-1912/14/2016
470-30-45-3SupersededAccounting Standards Update No. 2015-0101/09/2015
470-30-50-1AmendedAccounting Standards Update No. 2016-1912/14/2016
470-30-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nDebt | Superseded | Accounting Standards Update No. 2016-19 | 12/14/2016 |\n| | | |\n470-3…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d32300b0128fcc6a13d4c9b20784453fc0c2d67e91b0b9499a7114857a43ed90","downloaded_from":"2026-09-10T00:31:54.980Z","last_downloaded_at":"2026-09-10T00:31:54.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481478","source_sha256":"57fc2b12784c0914a51d96c2dfd964bd0f8d32dfb0e355e7652a26b50e897baa"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7142cf611e93f9b4957994aaa49d860736bdb38b00aeeda607c1ed24d61d22b0","downloaded_from":"2026-09-10T00:31:54.980Z","last_downloaded_at":"2026-09-10T00:31:54.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481478","source_sha256":"57fc2b12784c0914a51d96c2dfd964bd0f8d32dfb0e355e7652a26b50e897baa"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6950b34e7ac470917a93eb3b7847f41cb3bdc0b9b9fd7d7b9e1795e272c5b585","downloaded_from":"2026-09-10T00:31:54.980Z","last_downloaded_at":"2026-09-10T00:31:54.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481478","source_sha256":"57fc2b12784c0914a51d96c2dfd964bd0f8d32dfb0e355e7652a26b50e897baa"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-05-1","para":"05-1","html":"
This Subtopic establishes the borrower's accounting for a participating mortgage loan if the lender is entitled to participate in any of the following:
  1. a
    Appreciation in the fair value of the mortgaged real estate project
  2. b
    The results of operations of the mortgaged real estate project.
","snippet":"This Subtopic establishes the borrower's accounting for a participating mortgage loan if the lender is entitled to participate in any of the following:\n(a) Appreciation in the fair value of the mortgaged real estate proj…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62d24965808b260b4c09738253e5e50c01d9fa919f6d1bd953c0466aaf49d756","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-2","para":"05-2","html":"
The desire for instruments in which the return to the lenders was tied more closely to the performance of the property led to the introduction of participating mortgage loans.
","snippet":"The desire for instruments in which the return to the lenders was tied more closely to the performance of the property led to the introduction of participating mortgage loans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ed4210f659f8ad2b872a136e624207eb6557640cf77573ba992333647d720c1","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-3","para":"05-3","html":"
Participating mortgage loans and nonparticipating mortgage loans share all of the following characteristics:
  1. a
    Debtor-creditor relationships between those who provide initial cash outlays and hold the mortgages, and those who are obligated to make subsequent payments to the mortgage holders
  2. b
    Real estate collateral
  3. c
    Periodic fixed-rate or floating-rate interest payments
  4. d
    Fixed maturity dates for stated principal amounts.
","snippet":"Participating mortgage loans and nonparticipating mortgage loans share all of the following characteristics:\n(a) Debtor-creditor relationships between those who provide initial cash outlays and hold the mortgages, and th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59133c3612685e732c5c976050afd84163e85cd8471ecc17ef5935fbd0619e2d","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-4","para":"05-4","html":"
However, unlike a nonparticipating mortgage loan arrangement, in a participating mortgage loan, the lender participates in appreciation in the fair value of the mortgaged real estate project or the results of operations of the mortgaged real estate project, or in both.
","snippet":"However, unlike a nonparticipating mortgage loan arrangement, in a participating mortgage loan, the lender participates in appreciation in the fair value of the mortgaged real estate project or the results of operations …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e361b63c2913a66395bfca77a0d4fc8182956bd3d026e1b05ee5d5a48db6549","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-5","para":"05-5","html":"
The terms and economics of participating mortgage loan agreements vary by agreement. The terms and economics of one agreement may create a circumstance in which any participation payment is remote. In another agreement, the terms and economics may transfer many of the risks and rewards of property ownership.
","snippet":"The terms and economics of participating mortgage loan agreements vary by agreement. The terms and economics of one agreement may create a circumstance in which any participation payment is remote. In another agreement, …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20f4d9cfe93040e0679e62675fb8cc421705f17a556d726e873e4a1d39216528","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-6","para":"05-6","html":"
A lender may be entitled to participate in appreciation in the fair value of a project at any one of the following times:
  1. a
    Upon the sale of the project
  2. b
    At a deemed sale date
  3. c
    At the maturity or refinancing of the loan.
","snippet":"A lender may be entitled to participate in appreciation in the fair value of a project at any one of the following times:\n(a) Upon the sale of the project\n(b) At a deemed sale date\n(c) At the maturity or refinancing of t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bd75fcb3986a9ee3be904364e0a279b9a08abc670b90268bbe2e2512e3d039df","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-7","para":"05-7","html":"
In agreements in which lenders participate in results of operations, the definition of the results of operations may vary among agreements. Examples of these definitions include, but are not limited to, the following:
  1. a
    Revenue
  2. b
    Income
  3. c
    Cash flows before or after debt service.
","snippet":"In agreements in which lenders participate in results of operations, the definition of the results of operations may vary among agreements. Examples of these definitions include, but are not limited to, the following:\n(a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3ffb6e4cf176ef46f621dc02a64fbe9eb067be00a57a11d9f03d347769fb87a","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-8","para":"05-8","html":"
The participation terms of a participating mortgage loan agreement usually are negotiated concurrently with the other terms of the underlying mortgage loan. A borrower agrees to participation rights generally because of market conditions, or in exchange for concessions granted by the lender on some other term(s) of the loan, such as a lower interest rate or a higher loan-to-value ratio.
","snippet":"The participation terms of a participating mortgage loan agreement usually are negotiated concurrently with the other terms of the underlying mortgage loan. A borrower agrees to participation rights generally because of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a8fdf1eb2d107857032bab45900a349627810b00040b5f445f7fd1316847fb2d","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"citation":"470-30-05-9","para":"05-9","html":"
The lender's participation reduces the borrower's potential realization of operating results or gain on the sale of the real estate. However, the participation also may reduce any of the following:
  1. a
    The contract interest the borrower is required to pay
  2. b
    The risk that the borrower will be unable to pay interest at the stated or floating rate in the loan agreement and, consequently, the risk that the borrower will default on the loan and need to sell the property
  3. c
    The amount of capital the borrower has at risk, because the loan-to-value ratio normally is higher.
Further, the obligation to pay the lender a share of the property appreciation does not increase the current exposure of the borrower to loss in its investment, because the participation payments are made only if the fair value of the property appreciates.
","snippet":"The lender's participation reduces the borrower's potential realization of operating results or gain on the sale of the real estate. However, the participation also may reduce any of the following:\n(a) The contract inter…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:012224be308d74f32acdb45ae545af2d179485932928cf95990fdbb3b1a38515","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bbd6304351330e71fd201c2954d8fb9313a748fa03867e8644b0a1a3121f56f2","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8f96a20df8a7b79f4b4144225a5b7a6925e9f34d82564deccf9237b3f2e5404","downloaded_from":"2026-09-10T00:31:58.075Z","last_downloaded_at":"2026-09-10T00:31:58.075Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481448","source_sha256":"de1b3afeb4c1d151d23bb59866577185b0579cd40a045efc83123b83a9e1fe31"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Entities","paragraphs":[{"citation":"470-30-15-1","para":"15-1","html":"
The guidance in this Subtopic applies to the following entities:
  1. a
    All borrowers in participating mortgage loan arrangements.
","snippet":"The guidance in this Subtopic applies to the following entities:\n(a) All borrowers in participating mortgage loan arrangements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9acd2f576cc5c93150b3e7f42b2753883b65707dc8d5518e44d34f94abca5dc3","downloaded_from":"2026-09-10T00:32:01.971Z","last_downloaded_at":"2026-09-10T00:32:01.971Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481417","source_sha256":"e3c0212779ac2ca9c4af74d875449da34d6adcc9a6505124cc2556bb8d6897a6"}},{"citation":"470-30-15-2","para":"15-2","html":"
The guidance in this Subtopic does not apply to the following entities:
  1. a
    Creditors in participating mortgage loan arrangements.
","snippet":"The guidance in this Subtopic does not apply to the following entities:\n(a) Creditors in participating mortgage loan arrangements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83fc35285e4f6212d518236b63c97e40c3fbec8b8f7b0a862134c8635ac955a2","downloaded_from":"2026-09-10T00:32:01.971Z","last_downloaded_at":"2026-09-10T00:32:01.971Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481417","source_sha256":"e3c0212779ac2ca9c4af74d875449da34d6adcc9a6505124cc2556bb8d6897a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ceb48491a8200d485ce4d9227f16c9074c4382f32b7aa8f495d47e65a7cb8893","downloaded_from":"2026-09-10T00:32:01.971Z","last_downloaded_at":"2026-09-10T00:32:01.971Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481417","source_sha256":"e3c0212779ac2ca9c4af74d875449da34d6adcc9a6505124cc2556bb8d6897a6"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"470-30-15-3","para":"15-3","html":"
The guidance in this Subtopic does not apply to the following transactions and activities:
  1. a
    Participating leases
  2. b
    Debt convertible at the option of the lender into equity ownership of the property
  3. c
    Participating loans resulting from troubled debt restructurings.
","snippet":"The guidance in this Subtopic does not apply to the following transactions and activities:\n(a) Participating leases\n(b) Debt convertible at the option of the lender into equity ownership of the property\n(c) Participating…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2939a84c91ef16c7152924c4740cbac95ef1927cbf66adb2ee5b307fef8887c","downloaded_from":"2026-09-10T00:32:01.971Z","last_downloaded_at":"2026-09-10T00:32:01.971Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481417","source_sha256":"e3c0212779ac2ca9c4af74d875449da34d6adcc9a6505124cc2556bb8d6897a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91a9b6f537c371b78fda901771ecf6358ad6713ba11e5d2d063f1013cf3dfde8","downloaded_from":"2026-09-10T00:32:01.971Z","last_downloaded_at":"2026-09-10T00:32:01.971Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481417","source_sha256":"e3c0212779ac2ca9c4af74d875449da34d6adcc9a6505124cc2556bb8d6897a6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b83df8c006fc6f82de38bf1ff71256814e411d5767c15844b76a42d7d8f7c029","downloaded_from":"2026-09-10T00:32:01.971Z","last_downloaded_at":"2026-09-10T00:32:01.971Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481417","source_sha256":"e3c0212779ac2ca9c4af74d875449da34d6adcc9a6505124cc2556bb8d6897a6"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-25-1","para":"25-1","html":"
If a lender is entitled to participate in the appreciation of the market value of a mortgaged real estate project, the borrower shall recognize a participation liability with a corresponding debit to a debt discount account.
","snippet":"If a lender is entitled to participate in the appreciation of the market value of a mortgaged real estate project, the borrower shall recognize a participation liability with a corresponding debit to a debt discount acco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ec939cce2345761f570082e0e7ff581990940656c8106cd205605bd260946d1","downloaded_from":"2026-09-10T00:32:09.032Z","last_downloaded_at":"2026-09-10T00:32:09.032Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481359","source_sha256":"a75fc1b4564bf85ff29913234b5c7ecaea6d7085a2ab94c1de7b8475e23767b5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90b548729a388fec78b6a3fd3dde6381d0dc9e39800f7df6e9dbf33ba90ae101","downloaded_from":"2026-09-10T00:32:09.032Z","last_downloaded_at":"2026-09-10T00:32:09.032Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481359","source_sha256":"a75fc1b4564bf85ff29913234b5c7ecaea6d7085a2ab94c1de7b8475e23767b5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28853a10184bb708aacac826d448fa89a62d76ea21df2a932f42c50360aecfd3","downloaded_from":"2026-09-10T00:32:09.032Z","last_downloaded_at":"2026-09-10T00:32:09.032Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481359","source_sha256":"a75fc1b4564bf85ff29913234b5c7ecaea6d7085a2ab94c1de7b8475e23767b5"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-30-1","para":"30-1","html":"
If the lender is entitled to participate in appreciation in the fair value of the mortgaged real estate project, the borrower shall determine the fair value (see Subtopic 820-10) of the participation feature at the inception of the loan (see paragraph 470-30-25-1 for guidance on how to recognize the participation feature).
","snippet":"If the lender is entitled to participate in appreciation in the fair value of the mortgaged real estate project, the borrower shall determine the fair value (see Subtopic 820-10) of the participation feature at the incep…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:160d4f4ff7ea9a51fd3606b47111bd1ef32b05951ab103f4983648ddadf78efc","downloaded_from":"2026-09-10T00:32:11.186Z","last_downloaded_at":"2026-09-10T00:32:11.186Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481328","source_sha256":"252059aa57a80984898d45b7d2638b9cfd5419ebd923cabb37f2680ba436436d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9fd4be047e9222cb68d59035be631a9af6ba4bc78728cdec7373592c3660b59","downloaded_from":"2026-09-10T00:32:11.186Z","last_downloaded_at":"2026-09-10T00:32:11.186Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481328","source_sha256":"252059aa57a80984898d45b7d2638b9cfd5419ebd923cabb37f2680ba436436d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbabfe973e7209a541409cc7cb95dc2d6369a672bb6c03f081ecb322c9e1e414","downloaded_from":"2026-09-10T00:32:11.186Z","last_downloaded_at":"2026-09-10T00:32:11.186Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481328","source_sha256":"252059aa57a80984898d45b7d2638b9cfd5419ebd923cabb37f2680ba436436d"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-35-1","para":"35-1","html":"
The debt discount shall be amortized by the interest method, using the effective interest rate.
","snippet":"The debt discount shall be amortized by the interest method, using the effective interest rate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0117dbfda6423977fcf57dcc2306d1a64b4cc9bb71757e75b563cc9078fff522","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}},{"citation":"470-30-35-2","para":"35-2","html":"
Interest expense on participating mortgage loans consists of the following three components:
  1. a
    Amounts designated in the mortgage agreement as interest
  2. b
    Amounts related to the lender's participation in results of operations
  3. c
    Amortization of debt discount related to the lender's participation in the fair value appreciation of the mortgaged real estate project.
","snippet":"Interest expense on participating mortgage loans consists of the following three components:\n(a) Amounts designated in the mortgage agreement as interest\n(b) Amounts related to the lender's participation in results of op…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff2aa5e29a4b76bb14632113d8131a0fc0fa7304e23d4c809c060695bdaa51d2","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}},{"citation":"470-30-35-3","para":"35-3","html":"
Amounts designated in the mortgage agreement as interest shall be charged to income in the period in which the interest is incurred. If the loan's stated interest rate varies based on 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 interest shall be based on the factor (the index or the rate) as it changes over the life of the loan. Interest recognized pursuant to this guidance is subject to the requirements of Subtopic 835-20. Once capitalized, amounts shall not be adjusted for the effects of reversals of appreciation.
","snippet":"Amounts designated in the mortgage agreement as interest shall be charged to income in the period in which the interest is incurred. If the loan's stated interest rate varies based on changes in an independent factor, su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41af7f73a787d611a5d5a94ab58a30ba80151b1d4c4296976be58deb45739b5b","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}},{"citation":"470-30-35-4","para":"35-4","html":"
Amounts due to a lender pursuant to the lender's participation in the real estate project's results of operations (as defined in the participating mortgage loan agreement) shall be charged to interest expense in the borrower's corresponding financial reporting period, with a corresponding credit to the participation liability.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2015-10.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2015-10.
","snippet":"Amounts due to a lender pursuant to the lender's participation in the real estate project's results of operations (as defined in the participating mortgage loan agreement) shall be charged to interest expense in the borr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c264ec8382159bb498c4c173177659ea17e34c317d067bf5b34fe7bd16865d74","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}},{"citation":"470-30-35-4A","para":"35-4A","html":"
If a lender is entitled to participate in the appreciation of the market value of a mortgaged real estate project, both of the following are required at the end of each reporting period:
  1. a
    The balance of the participation liability shall be adjusted to equal the current fair value of the participation feature.
  2. b
    The corresponding debit or credit shall be recorded in the related debt-discount account.
","snippet":"If a lender is entitled to participate in the appreciation of the market value of a mortgaged real estate project, both of the following are required at the end of each reporting period:\n(a) The balance of the participat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e18842d6af04d0a0cd8fd92b40e2167052182e48bb82cd81d3299c9272c9440c","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}},{"citation":"470-30-35-5","para":"35-5","html":"
The revised debt discount shall be amortized prospectively, using the effective interest rate.
","snippet":"The revised debt discount shall be amortized prospectively, using the effective interest rate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02a84b3578c1776b399c0ce1bd9e3e8188dc02e479539e01159ba4d2bfe7a388","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bd55ad75e5a2d8b66b1d29f875f105c47deeafbc5eb8d40ab42adb5db90d4334","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:514377c2f7127340d3a4d5a43c59fb4a264d134bdc7d6fc2c7302f37db747d8c","downloaded_from":"2026-09-10T00:32:12.876Z","last_downloaded_at":"2026-09-10T00:32:12.876Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481298","source_sha256":"df41dcbab8a5fb82e676a7639307d1a7e766f03ab71aa448f789d39025d73acf"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-40-1","para":"40-1","html":"
If the participating mortgage loan is extinguished before its due date, the difference between the recorded amount of the debt (including the unamortized debt discount and the participation liability) and the amount exchanged to extinguish the debt is a debt extinguishment gain or loss.
","snippet":"If the participating mortgage loan is extinguished before its due date, the difference between the recorded amount of the debt (including the unamortized debt discount and the participation liability) and the amount exch…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a726b049a4d9a6f90113d193f38b607784e40a4a225380ddc2aac9038b1c8095","downloaded_from":"2026-09-10T00:32:14.766Z","last_downloaded_at":"2026-09-10T00:32:14.766Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481269","source_sha256":"cc8be5f792c2c4465b5586cdae8aa405c229450ecea6478d26365085c3d3a9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8d550cbd7fb87d0f40dc72f9f5b6906d8b7b270191dec438e191e8f0458ee80","downloaded_from":"2026-09-10T00:32:14.766Z","last_downloaded_at":"2026-09-10T00:32:14.766Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481269","source_sha256":"cc8be5f792c2c4465b5586cdae8aa405c229450ecea6478d26365085c3d3a9ee"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e27040948363532772f3e801638fb486dc5c5e77f6827486f64a616354ee630a","downloaded_from":"2026-09-10T00:32:14.766Z","last_downloaded_at":"2026-09-10T00:32:14.766Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481269","source_sha256":"cc8be5f792c2c4465b5586cdae8aa405c229450ecea6478d26365085c3d3a9ee"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-45-1","para":"45-1","html":"
The amortization of the debt discount relating to the participation liability shall be included in interest expense.
","snippet":"The amortization of the debt discount relating to the participation liability shall be included in interest expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f9779b7537fb631f07171d31f0fc7cf5b699cc3a43aa290e6cf5c50fafa4867","downloaded_from":"2026-09-10T00:32:18.105Z","last_downloaded_at":"2026-09-10T00:32:18.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481241","source_sha256":"37ee43112478734725292a5feba357ad98217b4bc4c30eb387e6a7a86e8e51e1"}},{"citation":"470-30-45-2","para":"45-2","html":"
If the participating mortgage loan is extinguished before its due date, the debt extinguishment gain or loss shall be reported as required by paragraph 470-50-40-2.
","snippet":"If the participating mortgage loan is extinguished before its due date, the debt extinguishment gain or loss shall be reported as required by paragraph 470-50-40-2.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:254d0359469e5af72af99ce1c96fcbca0b756b4fa6ab79207522246f12a0639d","downloaded_from":"2026-09-10T00:32:18.105Z","last_downloaded_at":"2026-09-10T00:32:18.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481241","source_sha256":"37ee43112478734725292a5feba357ad98217b4bc4c30eb387e6a7a86e8e51e1"}},{"citation":"470-30-45-3","para":"45-3","html":"
Paragraph superseded by Accounting Standards Update No. 2015-01.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-01.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f02251dfe276cfcfad13e440c901f21998f3d22cb697a5e44282aade4e3a55d","downloaded_from":"2026-09-10T00:32:18.105Z","last_downloaded_at":"2026-09-10T00:32:18.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481241","source_sha256":"37ee43112478734725292a5feba357ad98217b4bc4c30eb387e6a7a86e8e51e1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bef6375362afa08f510de3ff4356596ef0253d4d518ce98cd0b0d34d853d33fe","downloaded_from":"2026-09-10T00:32:18.105Z","last_downloaded_at":"2026-09-10T00:32:18.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481241","source_sha256":"37ee43112478734725292a5feba357ad98217b4bc4c30eb387e6a7a86e8e51e1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e1438d1763070af7b6c15768203f0cee688dbcf545a43e5333be8f88bf8f211d","downloaded_from":"2026-09-10T00:32:18.105Z","last_downloaded_at":"2026-09-10T00:32:18.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481241","source_sha256":"37ee43112478734725292a5feba357ad98217b4bc4c30eb387e6a7a86e8e51e1"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-30-50-1","para":"50-1","html":"
The borrower's financial statements shall disclose both of the following:
  1. a
    The aggregate amount of participating mortgage obligations at the balance sheet date, with separate disclosure of the aggregate participation liabilities and related debt discounts
  2. b
    Terms of the participations by the lender in either the appreciation in the fair value of the mortgaged real estate project or the results of operations of the mortgaged real estate project, or both.
","snippet":"The borrower's financial statements shall disclose both of the following:\n(a) The aggregate amount of participating mortgage obligations at the balance sheet date, with separate disclosure of the aggregate participation …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0dc16a3e09c3aa20045775a60e4f9e432dba82033db4e8be7eb92f8a408f2736","downloaded_from":"2026-09-10T00:32:19.774Z","last_downloaded_at":"2026-09-10T00:32:19.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481212","source_sha256":"21bb1c9a9021129800680f55056dcf15dab1f352cb13ab14f485e9cbce5c35a9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:365d683ed64c6c7c5983f589ed1329a4f166be7f60671687e529e005987c4c2f","downloaded_from":"2026-09-10T00:32:19.774Z","last_downloaded_at":"2026-09-10T00:32:19.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481212","source_sha256":"21bb1c9a9021129800680f55056dcf15dab1f352cb13ab14f485e9cbce5c35a9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f916b685bd5e9d638ed67e36fef18f688aa9585a7d7e80cb16545a73528bfc6e","downloaded_from":"2026-09-10T00:32:19.774Z","last_downloaded_at":"2026-09-10T00:32:19.774Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481212","source_sha256":"21bb1c9a9021129800680f55056dcf15dab1f352cb13ab14f485e9cbce5c35a9"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"470-30-55-1","para":"55-1","html":"
This Example illustrates the guidance in this Subtopic.
","snippet":"This Example illustrates the guidance in this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6333593e876d6a621d863098878f72989f59e3cf5a8d5cc51ec7574687f81193","downloaded_from":"2026-09-10T00:32:22.883Z","last_downloaded_at":"2026-09-10T00:32:22.883Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481177","source_sha256":"92eb1a5856a10d51fd6bbb4441a489d3804161cec6213b18d1905ae43f9a48b2"}},{"citation":"470-30-55-2","para":"55-2","html":"
Assume that on January 1, 19X1, Borrower Co. purchased a property for $10 million. On that date, Borrower paid $1 million cash and entered into a participating mortgage loan agreement with Lender Co. in the amount of $9 million.
","snippet":"Assume that on January 1, 19X1, Borrower Co. purchased a property for $10 million. On that date, Borrower paid $1 million cash and entered into a participating mortgage loan agreement with Lender Co. in the amount of $9 …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc046e36092c7bb6c65ad7fde4bda6aa29564bd296f342ee9c3078268e81cc17","downloaded_from":"2026-09-10T00:32:22.883Z","last_downloaded_at":"2026-09-10T00:32:22.883Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481177","source_sha256":"92eb1a5856a10d51fd6bbb4441a489d3804161cec6213b18d1905ae43f9a48b2"}},{"citation":"470-30-55-3","para":"55-3","html":"
The loan agreement has the following terms:
  1. a
    15 year term
  2. b
    Interest-only periodic payments, principal to be repaid at end of term
  3. c
    5% stated interest rate
  4. d
    20% participation in appreciation in the value of the property above $10 million, payable at maturity (or earlier if the asset is sold or the loan is refinanced).
","snippet":"The loan agreement has the following terms:\n(a) 15 year term\n(b) Interest-only periodic payments, principal to be repaid at end of term\n(c) 5% stated interest rate\n(d) 20% participation in appreciation in the value of th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9a6f9505ec13a95e41557f7bb532621bffe66052c7e1fc6722f6d821c3c626d","downloaded_from":"2026-09-10T00:32:22.883Z","last_downloaded_at":"2026-09-10T00:32:22.883Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481177","source_sha256":"92eb1a5856a10d51fd6bbb4441a489d3804161cec6213b18d1905ae43f9a48b2"}},{"citation":"470-30-55-4","para":"55-4","html":"
Assumptions related to the fair value of the participation feature are as follows.
","snippet":"Assumptions related to the fair value of the participation feature are as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0f2595a048569f392e6d3b3a2fdf2e689f4d25b26554414d9622fcac5cd51bb","downloaded_from":"2026-09-10T00:32:22.883Z","last_downloaded_at":"2026-09-10T00:32:22.883Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481177","source_sha256":"92eb1a5856a10d51fd6bbb4441a489d3804161cec6213b18d1905ae43f9a48b2"}},{"citation":"470-30-55-5","para":"55-5","html":"
Based on the preceding assumptions, Borrower Co. should make the following journal entries for this participating mortgage loan.
","snippet":"Based on the preceding assumptions, Borrower Co. should make the following journal entries for this participating mortgage loan.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:189e317b3d5d058bae84fdef915bef28a51c2233e9f51ed7bc3f60f3926d2514","downloaded_from":"2026-09-10T00:32:22.883Z","last_downloaded_at":"2026-09-10T00:32:22.883Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481177","source_sha256":"92eb1a5856a10d51fd6bbb4441a489d3804161cec6213b18d1905ae43f9a48b2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f004e88878d4b12c14d81d3bb6b4318ae53b37844409782f43f6d6ce96c8f1b","downloaded_from":"2026-09-10T00:32:22.883Z","last_downloaded_at":"2026-09-10T00:32:22.883Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481177","source_sha256":"92eb1a5856a10d51fd6bbb4441a489d3804161cec6213b18d1905ae43f9a48b2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d8e7b5eeff85ad524271a70560f4d1c95e9e2e17af231f34e9bd9bd6dfb57447","downloaded_from":"2026-09-10T00:32:22.883Z","last_downloaded_at":"2026-09-10T00:32:22.883Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481177","source_sha256":"92eb1a5856a10d51fd6bbb4441a489d3804161cec6213b18d1905ae43f9a48b2"}}],"enrichment":{"summary":"ASC 470-30 governs how a *borrower* accounts for a participating mortgage loan — a mortgage in which the lender is entitled to share in appreciation in the fair value of the mortgaged real estate project, in its results of operations, or both. If the lender participates in fair value appreciation, the borrower recognizes a participation liability at the fair value of the participation feature at loan inception with an offsetting debt discount, remeasures the liability to current fair value each reporting period (adjusting the discount), and amortizes the discount to interest expense using the interest method. Participations in results of operations are charged to interest expense in the period incurred with a credit to the participation liability.","key_points":["A participation liability with a corresponding debit to a debt discount account is recognized when the lender is entitled to participate in appreciation in the market value of the mortgaged real estate project (470-30-25-1).","The participation feature is measured at fair value (per Subtopic 820-10) at inception of the loan (470-30-30-1).","Interest expense has three components: stated interest, amounts for the lender's participation in results of operations, and amortization of the debt discount related to participation in fair value appreciation (470-30-35-2); the discount is amortized by the interest method using the effective interest rate (470-30-35-1).","At the end of each reporting period the participation liability is adjusted to the current fair value of the participation feature, with the offsetting debit or credit to the debt discount account (470-30-35-4A), and the revised discount is amortized prospectively at the effective interest rate (470-30-35-5).","Amounts due for participation in results of operations are charged to interest expense in the corresponding reporting period with a credit to the participation liability (470-30-35-4); stated interest is charged to income as incurred, based on the index/rate as it changes, and is subject to Subtopic 835-20 capitalization rules, with capitalized amounts not adjusted for reversals of appreciation (470-30-35-3).","Early extinguishment produces a gain or loss equal to the difference between the recorded amount of the debt (including unamortized discount and the participation liability) and the amount exchanged, reported as required by 470-50-40-2 (470-30-40-1; 470-30-45-2).","Borrowers must disclose the aggregate amount of participating mortgage obligations at the balance sheet date, separately showing aggregate participation liabilities and related debt discounts, plus the terms of the lender's participations (470-30-50-1)."],"categories":["Recognition","Subsequent measurement","Disclosure","Fair value"],"audience_level":"intermediate","student_note":"Exam traps: this Subtopic applies only to borrowers (not lenders) and excludes participating leases, lender-option equity-convertible debt, and participations arising from troubled debt restructurings. Remember the participation liability is remeasured to fair value every period through the debt discount (not through earnings directly) — earnings are affected only via prospective amortization of the revised discount.","related_topics":["470-50","835-20","820-10","470-60","310-10"],"key_concepts":["participating mortgage loan","participation liability","debt discount","interest method","effective interest rate","fair value appreciation participation","participation in results of operations","debt extinguishment gain or loss"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09a486ff56b7161393389ab609712dcd8f6149725fa5fb4baeafe591060b5dff","downloaded_from":"2026-09-10T00:31:54.980Z","last_downloaded_at":"2026-09-10T00:32:26.321Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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