{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/610/20/#32-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":"610","topic_title":"Other Income","subtopic":"610-20","subtopic_title":"Gains and Losses from the Derecognition of Nonfinancial Assets","section":{"number":"32","label":"32 Measurement","anchor":"32-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"610-20-32-1","para":"32-1","html":"
Paragraph superseded by Accounting Standards Update No. 2017-05.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2017-05.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4d82dd19417cf298884398dbe38367a4b397c3adf79480ea8e0744ac25bb4388","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}},{"citation":"610-20-32-2","para":"32-2","html":"
When an entity meets the criteria to derecognize a distinct nonfinancial asset or a distinct in substance nonfinancial asset, it shall recognize a gain or loss for the difference between the amount of consideration measured and allocated to that distinct asset in accordance with paragraphs
610-20-32-3 through 32-6
and the carrying amount of the distinct asset. The amount of consideration promised in a contract that is included in the calculation of a gain or loss includes both the transaction price and the carrying amount of liabilities assumed or relieved by a counterparty.
","snippet":"When an entity meets the criteria to derecognize a distinct nonfinancial asset or a distinct in substance nonfinancial asset, it shall recognize a gain or loss for the difference between the amount of consideration measu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a64e5d860cbb3acc517c26dea824052239f765e0c1c0065292bcd6bdc5516956","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}},{"citation":"610-20-32-3","para":"32-3","html":"
To determine the transaction price, an entity shall apply the following paragraphs in Topic 606 on revenue from contracts with customers:
  1. a
    Paragraphs
    606-10-32-2 through 32-27
    on determining the transaction price, including all of the following:
    1. 1
      Estimating variable consideration
    2. 2
      Constraining estimates of variable consideration
    3. 3
      The existence of a significant financing component
    4. 4
      Noncash consideration
    5. 5
      Consideration payable to a customer.
  2. b
    Paragraphs
    606-10-32-42 through 32-45
    on accounting for changes in the transaction price.
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If an entity transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset in exchange for a noncontrolling interest, the entity shall consider the noncontrolling interest received from the counterparty as noncash consideration and shall measure it in accordance with the guidance in paragraphs
606-10-32-21 through 32-24
. Similarly, if a parent transfers control of a distinct nonfinancial asset or in substance nonfinancial asset by transferring ownership interests in a consolidated subsidiary but retains a noncontrolling interest in its former subsidiary, the entity shall consider the noncontrolling interest retained as noncash consideration and shall measure it in accordance with the guidance in paragraphs
606-10-32-21 through 32-24
. (See Case A of Example 2 in paragraphs
610-20-55-11 through 55-14
.)
","snippet":"If an entity transfers control of a distinct nonfinancial asset or distinct in substance nonfinancial asset in exchange for a noncontrolling interest, the entity shall consider the noncontrolling interest received from t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cfca7024a84e6c74c498b0a09c2fe0a2610f00ac5a1f70d80897222833992564","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}},{"citation":"610-20-32-5","para":"32-5","html":"
If a counterparty promises to assume or relieve a liability of an entity in exchange for a transfer of nonfinancial assets or in substance nonfinancial assets within the scope of this Subtopic, the transferring entity shall include the carrying amount of the liability in the consideration used to calculate the gain or loss. Although a liability assumed or relieved by a counterparty shall be included in the consideration used to calculate a gain or loss, an entity shall not derecognize the liability until it has been extinguished in accordance with the guidance in paragraph 405-20-40-1 (see paragraph 610-20-45-3 on how to present the liability if it is extinguished before or after the entity transfers control of the nonfinancial assets or in substance nonfinancial assets). If an entity transfers control of the nonfinancial assets or in substance nonfinancial assets before a liability is extinguished, it shall apply the guidance on constraining estimates of variable consideration in paragraph 606-10-32-11 to determine the carrying amount of the liability to be included in the gain or loss calculation.
","snippet":"If a counterparty promises to assume or relieve a liability of an entity in exchange for a transfer of nonfinancial assets or in substance nonfinancial assets within the scope of this Subtopic, the transferring entity sh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:838ed67e131d918fb4f6ee8d75b3eb1d2822b21f5ba072fe06255aa79af958e0","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}},{"citation":"610-20-32-6","para":"32-6","html":"
An entity shall allocate the consideration calculated in accordance with the guidance in paragraphs
610-20-32-2 through 32-5
to each distinct nonfinancial asset or in substance nonfinancial asset by applying the guidance in paragraphs
606-10-32-28 through 32-41
.
","snippet":"An entity shall allocate the consideration calculated in accordance with the guidance in paragraphs 610-20-32-2 through 32-5 to each distinct nonfinancial asset or in substance nonfinancial asset by applying the guidance…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb8644151f7cf018151db7eea9534aecda49c516693dd92bd3fc47cfd03465d9","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c49e7ad37c142032b72a361a3df9b35b7153a02de1133577df4cc186a0fcc17c","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb95451d8ad77eb8e63aee00652a3b9ae9da15856337ceccc4ced3b5a1355a3e","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb95451d8ad77eb8e63aee00652a3b9ae9da15856337ceccc4ced3b5a1355a3e","downloaded_from":"2026-09-10T00:55:03.648Z","last_downloaded_at":"2026-09-10T00:55:03.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479759","source_sha256":"7baf743bfe5cb1f508c2000a99dd57f8eddf1d034adc0b4ebb7fdcbcf8ebe9df"}}