# ASC 825-942: Financial Instruments — Financial Services—Depository and Lending Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/825/942/) 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): 2026-09-10T01:45:12.222Z to 2026-09-10T01:45:24.858Z Record version: sha256:e3782542bc6479e4f03b32d87a79a402188e3f1d7ca2845e1317c371ace549cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942: Financial Instruments — Financial Services—Depository and Lending ### Machine-generated study aids ```json { "summary": "This Subtopic sets the disclosure requirements for depository and lending institutions that hold financial instruments with off-balance-sheet credit risk — loan commitments, standby letters of credit, financial guarantees, loans sold with recourse, and similar instruments. For each such instrument an entity must disclose the face or contract amount, the nature and terms (including credit and market risk, cash requirements, and related accounting policy), and its collateral policies. Instruments within the scope of Topic 815 (derivatives) are excluded.", "key_points": [ "The Subtopic addresses financial institution disclosure for financial instruments with off-balance-sheet credit risk (825-942-05-1).", "Scope follows Section 942-10-15, but the guidance does not apply to financial instruments within the scope of Topic 815 (825-942-15-1 through 15-2).", "Off-balance-sheet credit risk covers off-balance-sheet loan commitments, standby letters of credit, financial guarantees, and similar instruments, excluding Topic 815 instruments (825-942-50-1).", "Required disclosures are the face or contract amount and the nature and terms, including at a minimum the credit and market risk, the cash requirements, and the related accounting policy under Subtopic 235-10 (825-942-50-1(a)-(b)).", "The entity must also disclose its policy for requiring collateral or other security, its access to that collateral, and a brief description of the collateral supporting those instruments (825-942-50-1(c)).", "Examples include loans sold with recourse, fixed- and variable-rate loan commitments, financial guarantees, floating-rate note issuance facilities, and letters of credit; a loan guarantee typically involves an initial fee and a continuing annual fee (825-942-50-2).", "A guarantor may also have to disclose and account for a financial guarantee under Topic 460, or under Topic 815 if the guarantee is accounted for as a derivative (825-942-50-2)." ], "categories": [ "Disclosure", "Financial instruments", "Contingencies and guarantees", "Industry-specific" ], "audience_level": "intermediate", "student_note": "This is a pure disclosure subtopic — it does not tell you whether to recognize or measure anything, only what a bank must tell readers about credit exposures that never hit the balance sheet. The common mistake is applying it to derivatives; anything in Topic 815's scope is carved out, and guarantees may instead fall under Topic 460.", "related_topics": [ "815", "460", "942-10", "235-10", "825-10", "326" ], "key_concepts": [ "off-balance-sheet credit risk", "loan commitments", "standby letters of credit", "financial guarantees", "loans sold with recourse", "face or contract amount", "collateral policy", "depository and lending institutions" ] } ``` Source downloaded (UTC): 2026-09-10T01:45:12.222Z to 2026-09-10T01:45:12.222Z Record version: sha256:87e2b26ccd704bb95379ff234dd8ed714e05aebf3617a2f36454744170dc809b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/825/942/#00-status) SEC content: no ##### [825-942-00-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:12.222Z to 2026-09-10T01:45:12.222Z Record version: sha256:967eb82109a82dd41ab3aef22020392f9715ba5ffa029b743609c0b866936efd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
942-825-50-2AmendedMaintenance Update 2021-02 (PDF)01/19/2021
942-825-50-2AmendedAccounting Standards Update No. 2016-2012/21/2016
942-825-50-2AmendedAccounting Standards Update No. 2016-0101/05/2016
942-825-50-2AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T01:45:15.772Z to 2026-09-10T01:45:15.772Z Record version: sha256:68e57736985254caf6edb11133c24bc6619182d4ec9afb2e6358917442ed8b13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/825/942/#05-overview-and-background) SEC content: no ##### [825-942-05-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:15.772Z to 2026-09-10T01:45:15.772Z Record version: sha256:967349531436179c184ceb8f42ea1ec87737ce9d6374b6d322ce1f5dcddefd8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses financial institution disclosure matters for financial instruments with off-balance-sheet credit risk. Source downloaded (UTC): 2026-09-10T01:45:17.919Z to 2026-09-10T01:45:17.919Z Record version: sha256:c8a71b7343111fb3da2eee2d155f9d432e4888439c70095769ea97dbe24b9117 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/825/942/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [825-942-15-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:17.919Z to 2026-09-10T01:45:17.919Z Record version: sha256:47844efd079ab1f5be6eb11f3366d9a620f086c597a8707400dd0cf16b363436 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 942-10-15, with specific instrument exceptions noted below. #### Instruments ##### [825-942-15-2](https://asc.understandingaccounting.org/asc/825/942/#825-942-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:17.919Z to 2026-09-10T01:45:17.919Z Record version: sha256:7ee294f307ee8bd5ad8f66dd85f7b5def8fb65f9f2b31121d18d92d959dc986b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following instruments: 1. a Financial instruments within the scope of Topic 815. Source downloaded (UTC): 2026-09-10T01:45:21.330Z to 2026-09-10T01:45:21.330Z Record version: sha256:cdda969a73d8cf3c9fedf6de1389eaac33eec9da6c6410ccda11623299111d98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 825-942-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/825/942/#50-disclosure) SEC content: no #### Off-Balance-Sheet Credit Risk ##### [825-942-50-1](https://asc.understandingaccounting.org/asc/825/942/#825-942-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:21.330Z to 2026-09-10T01:45:21.330Z Record version: sha256:7a21bfdb061321f9a155170c1fedf4a62e0531b6d6a78159990300ac51934539 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Off-balance-sheet credit risk refers to credit risk on off-balance-sheet loan commitments, standby letters of credit, financial guarantees, and other similar instruments, except for instruments within the scope of Topic 815. For financial instruments with off-balance-sheet credit risk, except for those instruments within the scope of that Topic, an entity shall disclose all of the following information: 1. a The face or contract amount 2. b The nature and terms, including, at a minimum, a discussion of the: 1. 1 Credit and market risk of those instruments 2. 2 Cash requirements of those instruments 3. 3 Related accounting policy pursuant to Subtopic 235-10. 3. c The entity's policy for requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments. ##### [825-942-50-2](https://asc.understandingaccounting.org/asc/825/942/#825-942-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:45:21.330Z to 2026-09-10T01:45:21.330Z Record version: sha256:c2c40e53960c9d181becd4c1a0699fe898d2fca36a30331875320a243905475d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of activities and financial instruments with off-balance-sheet credit risk include obligations for loans sold with recourse (with or without a floating-interest-rate provision), fixed-rate and variable-rate loan commitments, financial guarantees, note issuance facilities at floating rates, and letters of credit. An entity (guarantor) may "lend" its creditworthiness to another party (borrower) for a fee, thereby enhancing that other party's ability to borrow funds. The guarantor may provide a general guarantee of repayment of the borrower's obligation or may pledge specific assets that may be claimed by the creditor in the event of the borrower's default. A loan guarantee typically involves two sets of fees: an initial fee due at the consummation of the transaction and a continuing (annual) fee due over the term of the guarantee. A guarantor may be required to disclose and account for a financial guarantee under Topic 460 on guarantees. See Topic 815 on derivatives and hedging for guarantees accounted for as a derivative.