# ASC 810-10-35: Consolidation — Overall — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/810/10/#35-subsequent-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): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:4e9df16e34870920e6ddb8f936320c927f45cf28eb9162035ef1124f60445be2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 810-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/810/10/#35-subsequent-measurement) SEC content: no ##### [810-10-35-1](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:32ac6e39f407075b8c917fa3ea31fec9299357763bf846c1459095b9074d9381 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [810-10-35-2](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:d9c4fcd3821395869d75225bc858748d7f551bf30797f48c6d27fcb3809d5cc4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ### Variable Interest Entities ##### [810-10-35-3](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:e7be7304b85cdfe486fe7de842dc477d77ec3beb378ce8d57ce5fe3b29b26d33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The principles of [consolidated financial statements](https://asc.understandingaccounting.org/glossary/c/#consolidated-financial-statements "The financial statements of a consolidated group of entities that include a parent and all its subsidiaries presented as those of a single economic entity.") in this Topic apply to primary beneficiaries' accounting for consolidated [variable interest entities](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.") (VIEs). After the initial measurement, 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 a consolidated VIE shall be accounted for in consolidated financial statements as if the VIE were consolidated based on voting interests. Any specialized accounting requirements applicable to the type of business in which the VIE operates shall be applied as they would be applied to a consolidated [subsidiary](https://asc.understandingaccounting.org/glossary/s/#subsidiary "An entity, including an unincorporated entity such as a partnership or trust, in which another entity, known as its parent, holds a controlling financial interest. (Also, a variable interest entity that is consolidated by a primary beneficiary.)"). The consolidated entity shall follow the requirements for elimination of intra-entity balances and transactions and other matters described in Section 810-10-45 and paragraphs [810-10-50-1 through 50-1B](https://asc.understandingaccounting.org/asc/810/10/#810-10-50-1) and existing practices for consolidated subsidiaries. Fees or other sources of income or expense between a [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.") and a consolidated VIE shall be eliminated against the related expense or income of the VIE. The resulting effect of that elimination on the net income or expense of the VIE shall be attributed to the primary beneficiary (and not to noncontrolling interests) in the consolidated financial statements. #### Reconsideration of Initial Determination of VIE Status ##### [810-10-35-4](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:87aa832cc356501d538177346a03d3843fa643c8d0318ea595e77d01a383b693 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A legal entity that previously was not subject to the Variable Interest Entities Subsections shall not become subject to them simply because of losses in excess of its [expected losses](https://asc.understandingaccounting.org/glossary/e/#expected-losses "A legal entity that has no history of net losses and expects to continue to be profitable in the foreseeable future can be a variable interest entity (VIE). A legal entity that expects to be profitable will have expected losses. A VIE's expected losses are the expected negative variability in the fair value of its net assets exclusive of variable interests and not the anticipated amount or variability of the net income or loss.") that reduce the equity investment. The initial determination of whether a legal entity is a VIE shall be reconsidered if any of the following occur: 1. a The legal entity's governing documents or contractual arrangements are changed in a manner that changes the characteristics or adequacy of the legal entity's equity investment at risk. 2. b The equity investment or some part thereof is returned to the equity investors, and other interests become exposed to expected losses of the legal entity. 3. c The legal entity undertakes additional activities or acquires additional assets, beyond those that were anticipated at the later of the inception of the entity or the latest reconsideration event, that increase the entity's expected losses. 4. d The legal entity receives an additional equity investment that is at risk, or the legal entity curtails or modifies its activities in a way that decreases its expected losses. 5. e Changes in facts and circumstances occur such that the holders of the equity investment at risk, as a group, lose the power from voting rights or similar rights of those investments to direct the activities of the entity that most significantly impact the entity's economic performance. ##### [810-10-35-5](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:ceb2c18028cdbe5cbe7f704c8b6ac98808ffd4f610835a82e54b35cb6e04dfd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-17](https://asc.understandingaccounting.org/updates/asu-2009-17/). #### Collateralized Financing Entities ##### [810-10-35-6](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:1c18e44093fabc61c798896ccc698324bc2b2c0fa9e77abe04de332041792aea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity that elects to apply the measurement alternative to Topic 820 on fair value measurement upon initial consolidation of 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) shall consistently apply the measurement alternative for the subsequent measurement of the financial assets and the financial liabilities of that consolidated collateralized financing entity provided that it continues to meet the scope requirements in paragraph [810-10-15-17D](https://asc.understandingaccounting.org/asc/810/10/#810-10-15-17D). If a collateralized financing entity subsequently fails to meet the scope requirements, a reporting entity shall no longer apply the measurement alternative to that collateralized financing entity. Instead, it shall apply Topic 820 to measure those financial assets and financial liabilities that were previously measured using the measurement alternative. ##### [810-10-35-7](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:cbf606e7b4e8c626c458e4ab29b572e5cd78cae36becfa71970147e6179aa046 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under the measurement alternative, a 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, as described in paragraphs [810-10-30-12 through 30-15](https://asc.understandingaccounting.org/asc/810/10/#810-10-30-12) . ##### [810-10-35-8](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:f50f0cbb452e70a1b2df42ccfbe06a1b7b0ec04c43b874f71067272cc788e634 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A reporting entity that applies the measurement alternative shall recognize in its earnings all amounts that reflect its own economic interests in the consolidated [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)."), including both of the following: 1. a The changes in the fair value of any beneficial interests retained by the reporting entity (other than those that represent compensation for services) 2. b Beneficial interests that represent compensation for services (for example, management fees or servicing fees). ##### [810-10-35-9](https://asc.understandingaccounting.org/asc/810/10/#810-10-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:29:00.226Z to 2026-09-10T01:29:00.226Z Record version: sha256:f498ae374fec95019a56983774d86ba0cf4090bd9f7f3346e9d31747d746c7fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reporting entity does not 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 subsequent changes in the fair value of the financial assets and the changes in 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).