# ASC 810-10-30: Consolidation — Overall — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/810/10/#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): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:f1a6537f34422b5ce97fe6a50a5a105cb88712ed8f2fe3ea6cc34533a58b5d55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/810/10/#30-initial-measurement) SEC content: no ### Variable Interest Entities #### Valuation of Assets, Liabilities, and Noncontrolling Interests in a Newly Consolidated VIE ##### [810-10-30-1](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:d8128d86e550fc984fa6b94d73becb7d1495ef1357dc0cabc087208f5b98bffb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the [primary beneficiary](https://asc.understandingaccounting.org/glossary/p/#primary-beneficiary "An entity that consolidates a variable interest entity (VIE). See paragraphs 810-10-25-38 through 25-38J for guidance on determining the primary beneficiary.") of a [variable interest entity](https://asc.understandingaccounting.org/glossary/v/#variable-interest-entity "A legal entity subject to consolidation according to the provisions of the Variable Interest Entities Subsections of Subtopic 810-10.") (VIE) and the VIE are under common control, the primary beneficiary shall initially measure the assets, liabilities, and [noncontrolling interests](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest.") of the VIE at amounts at which they are carried in the accounts of the reporting entity that controls the VIE (or would be carried if the reporting entity issued financial statements prepared in conformity with generally accepted accounting principles \[GAAP\]). ##### [810-10-30-2](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-2) Pending content: yes Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:1ba2a19a555a9ef695e0a63762d5000400fa73172e1926f0cce031661e2324fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The initial consolidation of a VIE that is a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") is a [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.") and shall be accounted for in accordance with the provisions in Topic 805. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [805-10-65-5](https://asc.understandingaccounting.org/asc/805/10/#805-10-65-5)The initial consolidation of a VIE that is a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") in which the primary beneficiary is the accounting [acquirer](https://asc.understandingaccounting.org/glossary/a/#acquirer "The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer. (P) December 16, 2026; (N) December 16, 2026805-10-65-5The entity that obtains control of the acquiree.See paragraphs 805-10-25-4805-10-25-5 for guidance on determining the acquirer.")is a [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.") and shall be accounted for in accordance with the provisions in Topic 805. If a business combination in which a VIE is acquired is effected primarily by exchanging [equity interests](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities."), the factors in paragraphs [805-10-55-12 through 55-15](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-12) shall be considered in determining which entity is the accounting acquirer. If an acquisition transaction is a [reverse acquisition](https://asc.understandingaccounting.org/glossary/r/#reverse-acquisition "An acquisition in which the entity that issues securities (the legal acquirer) is identified as the acquiree for accounting purposes based on the guidance in paragraphs 805-10-55-11805-10-55-12805-10-55-13805-10-55-14805-10-55-15. The entity whose equity interests are acquired (the legal acquiree) must be the acquirer for accounting purposes for the transaction to be considered a reverse acquisition.") and the accounting [acquiree](https://asc.understandingaccounting.org/glossary/a/#acquiree "The business or businesses that the acquirer obtains control of in a business combination. This term also includes a nonprofit activity or business that a not-for-profit acquirer obtains control of in an acquisition by a not-for-profit entity.") meets the definition of a business, the provisions of Subtopic 805-40 shall be applied. For a business combination that is not effected primarily by exchanging equity interests in which a VIE is acquired, the primary beneficiary of that entity is the accounting acquirer. ##### [810-10-30-3](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:cf560cef2b4afac84d758bc25cb660f41f5f90f589bad8ab8866660ae9b7150d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a reporting entity becomes the primary beneficiary of a VIE that is not a business, no goodwill shall be recognized. The primary beneficiary initially shall measure and recognize the assets (except for goodwill) and liabilities of the VIE in accordance with Sections 805-20-25 and 805-20-30. However, the primary beneficiary initially shall measure assets and liabilities that it has transferred to that VIE at, after, or shortly before the date that the reporting entity became the primary beneficiary at the same amounts at which the assets and liabilities would have been measured if they had not been transferred. No gain or loss shall be recognized because of such transfers. ##### [810-10-30-3A](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-3A) Pending content: yes Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:79e90cbc5ea7439875b6ae1d8d4eb2a64736488511b9047522e8536c5e547efd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [326-10-65-7](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-7)A reporting entity that recognizes loans within the scope of Subtopic 326-20 on financial instruments measured at amortized cost through the consolidation of a VIE that is not a business in accordance with paragraph [810-10-30-3](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-3) shall apply the guidance in paragraph [326-20-30-16](https://asc.understandingaccounting.org/asc/326/20/#326-20-30-16). ##### [810-10-30-4](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:286062dd33c6977e9659fabaf6d8f193e5b01d98d10dc9dea9667c76bb7c427c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The primary beneficiary of a VIE that is not a business shall recognize a gain or loss for the difference between (a) and (b): 1. a The sum of: 1. 1 The fair value of any consideration paid 2. 2 The fair value of any noncontrolling interests 3. 3 The reported amount of any previously held interests 2. b The net amount of the VIE's identifiable assets and liabilities recognized and measured in accordance with Topic 805. 1. 1 [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 2. 2 [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 3. 3 [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [810-10-30-5](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:6e0a370ffde686e4388585332ea46195644e1f2b26e016c366a078a3c3eba970 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [810-10-30-3 through 30-4](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-3) shall not apply to a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") reporting entity that becomes the primary beneficiary of a VIE that is not a business upon a joint venture formation accounted for in accordance with Subtopic 805-60. ##### [810-10-30-6](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:50dd97cb37a56f1308e03ee7f08ed1817e9250fa540f8bc08e668e1cd9341485 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Initial Consolidation when Earlier Consolidation Was Prevented Due to Lack of Information ##### [810-10-30-7](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:b66f62e182b989333710576fdb9c8395618b14d35fbc147d1b9d9c5e45fe34ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity that has not applied the Variable Interest Entities Subsections to a [legal entity](https://asc.understandingaccounting.org/glossary/l/#legal-entity "Any legal structure used to conduct activities or to hold assets. Some examples of such structures are corporations, partnerships, limited liability companies, grantor trusts, and other trusts.") because of the condition described in paragraph [810-10-15-17(c)](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17) and that subsequently obtains the information necessary to apply the Variable Interest Entities Subsections to that entity shall apply the provisions of the Variable Interest Entities Subsections as of the date the information is acquired in accordance with the following paragraph. ##### [810-10-30-8](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:f03d9ce2584b5770bd6a468731c35b65f8fd7d3feb5a5718126af920c29175a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The initial measurement by a consolidating entity of the assets, liabilities, and noncontrolling interests of the VIE at the date the requirements of the Variable Interest Entities Subsections first apply depends on whether the determination of their carrying amounts is practicable. In this context, _carrying amounts_ refers to the amounts at which the assets, liabilities, and noncontrolling interests would have been carried in the consolidated financial statements if the Variable Interest Entities Subsections had been effective when the reporting entity first met the conditions to be the primary beneficiary. ##### [810-10-30-8A](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-8A) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:83396cf5a3e261d5774b2d61be827f5e92009b8960ce75760964a15934d7fc4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If determining the carrying amounts is practicable, the consolidating entity shall initially measure the assets, liabilities, and noncontrolling interests of the VIE at their carrying amounts at the date the Variable Interest Entities Subsections first apply. ##### [810-10-30-8B](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-8B) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:f845487643503671ba7e06a2e7bb70614888edd18c4ccfbead07b62c7363e208 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If determining the carrying amounts is not practicable, the assets, liabilities, and noncontrolling interests of the VIE shall be measured at fair value at the date the Variable Interest Entities Subsections first apply. However, as an alternative to this fair value measurement requirement, the assets and liabilities of the VIE may be measured at their unpaid principal balances at the date the Variable Interest Entities Subsections first apply if both of the following conditions are met: 1. a The activities of the VIE are primarily related to securitizations or other forms of asset-backed financings. 2. b The assets of the VIE can be used only to settle obligations of the entity. ##### [810-10-30-8C](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-8C) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:c964fe9c17385f8d5c379864b1f13efc22528bde6f42ab3e455250e199b90729 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The measurement alternative in the preceding paragraph does not obviate the need for the primary beneficiary to recognize any accrued interest or record an allowance for credit losses, as appropriate. Other assets, liabilities, or noncontrolling interests, if any, that do not have an unpaid principal balance, and any items that are required to be carried at fair value under other applicable standards, shall be measured at fair value. ##### [810-10-30-8D](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-8D) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:427c094ab7eacbf275e292745cf43bc627bfc709bcad081c4b5f50efdc55c9b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any difference between the net amount added to the balance sheet of the consolidating entity and the amount of any previously recognized interest in the newly consolidated VIE shall be recognized as a cumulative-effect adjustment to retained earnings. ##### [810-10-30-9](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:ac3c0aa4998ececc1dfd02852f44155b83d387c0531237989e5f4010f4e108de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Variable Interest Entities Subsections may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. #### Collateralized Financing Entities ##### [810-10-30-10](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:2d53d6b02c439dcad171350c86bbe03a8e18ef17593629b583b11b0496a4a0ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When a reporting entity initially consolidates a [variable interest entity](https://asc.understandingaccounting.org/glossary/v/#variable-interest-entity "A legal entity subject to consolidation according to the provisions of the Variable Interest Entities Subsections of Subtopic 810-10.") that is a [collateralized financing entity](https://asc.understandingaccounting.org/glossary/c/#collateralized-financing-entity "A variable interest entity that holds financial assets, issues beneficial interests in those financial assets, and has no more than nominal equity. The beneficial interests have contractual recourse only to the related assets of the collateralized financing entity and are classified as financial liabilities. A collateralized financing entity may hold nonfinancial assets temporarily as a result of default by the debtor on the underlying debt instruments held as assets by the collateralized financing entity or in an effort to restructure the debt instruments held as assets by the collateralized financing entity. A collateralized financing entity also may hold other financial assets and financial liabilities that are incidental to the operations of the collateralized financing entity and have carrying values that approximate fair value (for example, cash, broker receivables, or broker payables).") that meets the scope requirements in paragraph [810-10-15-17D](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17D), it may elect to measure the financial assets and the financial liabilities of the collateralized financing entity using a measurement alternative to Topic 820 on fair value measurement. ##### [810-10-30-11](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:85c8983941a2f75dcbb358bb86dd7c13292d991ea7dc2d82e3f2b4d7926973bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the measurement alternative, the reporting entity shall measure both the financial assets and the financial liabilities of the collateralized financing entity using the more observable of the fair value of the financial assets and the fair value of the financial liabilities. Any gain or loss that results from the initial application of this measurement alternative shall be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss). ##### [810-10-30-12](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:1bb1a734bed426a82e4da8e7bbaed7a8fa780aab8528b7e8ec6bfb178ddf9b59 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of the financial assets of the [collateralized financing entity](https://asc.understandingaccounting.org/glossary/c/#collateralized-financing-entity "A variable interest entity that holds financial assets, issues beneficial interests in those financial assets, and has no more than nominal equity. The beneficial interests have contractual recourse only to the related assets of the collateralized financing entity and are classified as financial liabilities. A collateralized financing entity may hold nonfinancial assets temporarily as a result of default by the debtor on the underlying debt instruments held as assets by the collateralized financing entity or in an effort to restructure the debt instruments held as assets by the collateralized financing entity. A collateralized financing entity also may hold other financial assets and financial liabilities that are incidental to the operations of the collateralized financing entity and have carrying values that approximate fair value (for example, cash, broker receivables, or broker payables).") is more observable, those financial assets shall be measured at fair value. The financial liabilities shall be measured in the initial consolidation as the difference between the following two amounts: 1. a The sum of: 1. 1 The fair value of the financial assets 2. 2 The carrying value of any nonfinancial assets held temporarily 2. b The sum of: 1. 1 The fair value of any [beneficial interests](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.") retained by the reporting entity (other than those that represent compensation for services) 2. 2 The reporting entity's carrying value of any beneficial interests that represent compensation for services. The fair value of the financial assets in (a)(1) should include the carrying values of any financial assets that are incidental to the operations of the collateralized financing entity because the financial assets' carrying values approximate their fair values. ##### [810-10-30-13](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:6221b6a8be3dcf9a6e63d9eecf0baa4a80297445795261d43c3ec639e32a7392 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of the financial liabilities of the collateralized financing entity is more observable, those financial liabilities shall be measured at fair value. The financial assets shall be measured in the initial consolidation as the difference between the following two amounts: 1. a The sum of: 1. 1 The fair value of the financial liabilities (other than the beneficial interests retained by the reporting entity) 2. 2 The fair value of any beneficial interests retained by the reporting entity (other than those that represent compensation for services) 3. 3 The reporting entity's carrying value of any beneficial interests that represent compensation for services 2. b The carrying value of any nonfinancial assets held temporarily. The fair value of the financial liabilities in (a)(1) should include the carrying values of any financial liabilities that are incidental to the operations of the collateralized financing entity because the financial liabilities' carrying values approximate their fair values. ##### [810-10-30-14](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:db576f7cdeb4717fc15e78be0d872cbb009712f68779c469a692567596d9f971 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount resulting from paragraph [810-10-30-12](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-12) or paragraph [810-10-30-13](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-13) shall be allocated to the less observable of the financial assets and financial liabilities (other than the beneficial interests retained by the reporting entity), as applicable, using a reasonable and consistent methodology. ##### [810-10-30-15](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:5d51ca42d9298859b3efb4caec69a4dececf5a179acfa617c4cb7e4b9cd17db4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The carrying value of the beneficial interests that represent compensation for services (for example, rights to receive management fees or servicing fees) and the carrying value of any nonfinancial assets held temporarily by the [collateralized financing entity](https://asc.understandingaccounting.org/glossary/c/#collateralized-financing-entity "A variable interest entity that holds financial assets, issues beneficial interests in those financial assets, and has no more than nominal equity. The beneficial interests have contractual recourse only to the related assets of the collateralized financing entity and are classified as financial liabilities. A collateralized financing entity may hold nonfinancial assets temporarily as a result of default by the debtor on the underlying debt instruments held as assets by the collateralized financing entity or in an effort to restructure the debt instruments held as assets by the collateralized financing entity. A collateralized financing entity also may hold other financial assets and financial liabilities that are incidental to the operations of the collateralized financing entity and have carrying values that approximate fair value (for example, cash, broker receivables, or broker payables).") shall be measured in accordance with other applicable Topics. ##### [810-10-30-16](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:28:57.969Z to 2026-09-10T01:28:57.969Z Record version: sha256:749b1fd0cced50a207ab908de855896501506180dd81f2641ea5ce8e1694973b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting entity does not elect to apply the measurement alternative to a collateralized financing entity that meets the scope requirements in paragraph [810-10-15-17D](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17D), the reporting entity shall measure the fair value of the financial assets and the fair value of the financial liabilities of the collateralized financing entity using the requirements of Topic 820 on fair value measurement. If Topic 820 is applied, any initial difference in the fair value of the financial assets and the fair value of the financial liabilities of the collateralized financing entity shall be reflected in earnings and attributed to the reporting entity in the consolidated statement of income (loss).