# ASC 835-10: Interest — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/835/10/) 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): 2026-09-10T01:48:44.160Z to 2026-09-10T01:48:52.102Z Record version: sha256:d11045a1d0c23effeca8eea31cf59b08a4693fd99dc49ab8cef967980bf59fd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 835-10: Interest — Overall ### Machine-generated study aids ```json { "summary": "ASC 835-10 is the Overall subtopic of the Interest Topic; it does little more than map the Topic's structure and point readers elsewhere. It explains that Topic 835 addresses interest recognition in two instances — capitalization of interest costs incurred in connection with an investment in an asset (Subtopic 835-20) and imputation of interest where required (Subtopic 835-30) — and acknowledges that interest income/expense for specific transactions and instrument types is governed by other Topics.", "key_points": [ "Topic 835 comprises three Subtopics: Overall (835-10), Capitalization of Interest (835-20), and Imputation of Interest (835-30) (835-10-05-1).", "Topic 835 gives interest recognition guidance in only two instances — capitalization of interest costs in connection with an investment in an asset and situations requiring imputation of interest (835-10-05-2).", "Interest income and expense for specific transactions and instrument types is addressed in other Topics, not in Topic 835 (835-10-05-3).", "Loan origination fees and costs and commitment fees affect the yield of the related loan under Section 310-20-35, not Topic 835 (835-10-60-4).", "Interest income on debt securities (320-10-35-4), structured notes (320-10-35-38), and dividend income on equity securities (321-10-35-6) are recognized under Topic 320/321 (835-10-60-5 through 60-6A).", "Debt-specific interest guidance resides in Topic 470 — increasing-rate debt (470-10-35-1 through 35-2), conversion with forfeited accrued interest (470-20-35-11), modifications/exchanges (Section 470-50-40), and troubled debt restructurings (470-60-35-5 through 35-6).", "Interest accrued on unrecognized tax benefits and on income tax underpayments follows 740-10-25-56 (835-10-60-14)." ], "categories": [ "Recognition", "Subsequent measurement", "Debt and equity", "Financial instruments" ], "audience_level": "introductory", "student_note": "Treat 835-10 as a signpost, not a rulebook: the substantive rules live in 835-20 (capitalization) and 835-30 (imputation). The common misunderstanding is assuming Topic 835 governs all interest recognition — in fact interest on loans, debt securities, restructured debt, and tax underpayments is governed by Topics 310, 320, 470, and 740.", "related_topics": [ "835-20", "835-30", "310-20", "320-10", "470-50", "740-10" ], "key_concepts": [ "interest income", "interest expense", "capitalization of interest", "imputation of interest", "effective yield", "scope and cross-references", "interest cost" ] } ``` Source downloaded (UTC): 2026-09-10T01:48:44.160Z to 2026-09-10T01:48:44.160Z Record version: sha256:1c83bd5abe9a3a60eb7e101ec19c6aec5c0139e30625a354137e402e670412c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 835-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/835/10/#00-status) SEC content: no ##### [835-10-00-1](https://asc.understandingaccounting.org/asc/835/10/#835-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:44.160Z to 2026-09-10T01:48:44.160Z Record version: sha256:c48eb57d0ab720f2c7ff5ec48e605b7dcea46d5d2600d9671c89e8320871418d 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
835-10-05-3AmendedAccounting Standards Update No. 2012-0410/01/2012
835-10-60-2SupersededAccounting Standards Update No. 2016-1306/16/2016
835-10-60-3SupersededAccounting Standards Update No. 2016-1306/16/2016
835-10-60-5AmendedAccounting Standards Update No. 2016-0101/05/2016
835-10-60-6AAddedAccounting Standards Update No. 2016-0101/05/2016
835-10-60-7AmendedAccounting Standards Update No. 2009-1612/23/2009
Source downloaded (UTC): 2026-09-10T01:48:47.504Z to 2026-09-10T01:48:47.504Z Record version: sha256:f6ee856d23942597e594e3b5511e46f846d762ee26979d7f6d5da0477bac5b34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 835-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/835/10/#05-overview-and-background) SEC content: no ##### [835-10-05-1](https://asc.understandingaccounting.org/asc/835/10/#835-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:47.504Z to 2026-09-10T01:48:47.504Z Record version: sha256:48542e70ca86fea9eb484202762393a7c2ea86f4ac69148ac4e2ba7611bd464c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Interest Topic contains the following Subtopics: 1. a Overall 2. b Capitalization of Interest 3. c Imputation of Interest. ##### [835-10-05-2](https://asc.understandingaccounting.org/asc/835/10/#835-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:47.504Z to 2026-09-10T01:48:47.504Z Record version: sha256:0eb37e5e790b4c0743ba86d33a5e6ee019402e11ae5bf86937a81def2c7156b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic provides guidance for interest income or expense recognition in two instances. Subtopic 835-20 provides guidance for capitalization of interest costs in connection with an investment in an asset. Subtopic 835-30 provides guidance for situations in which imputation of interest is required. ##### [835-10-05-3](https://asc.understandingaccounting.org/asc/835/10/#835-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:47.504Z to 2026-09-10T01:48:47.504Z Record version: sha256:0e147a13e65f99af7a4666f559ba1f8fde143264e4727394ca7d6f7d503d5091 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The recognition of interest income and interest expense for specific transactions and specific instrument types is also addressed in various other Topics. Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:f2644d145f8515a55485d38b7f63e9e8e1276dfaef1f7e54695456689ca8333b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 835-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/835/10/#60-relationships) SEC content: no #### Presentation of Financial Statements ##### [835-10-60-1](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:3c3eba22a3166bd7e9870637f1ff84b8d7e9ba363ba9dc8fb524ae857d57a099 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the allocation of interest to discontinued operations, see paragraphs [205-20-45-6 through 45-8](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-6) . #### Receivables ##### [835-10-60-2](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:d0d54e9dd698593841325f42cd531b4a3f11e0204daf4e5a14b8bd1f629576bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [835-10-60-3](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:dbabc3e3d07bd7175cd2a13865420ba3262fcd8d5588f794575a875dade4a950 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ##### [835-10-60-4](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:691b608e3433f69acdcdfa76e88522b50cc02299940903e6c9a05f5ad7ea78e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the recognition of loan origination fees and costs and commitment fees and costs and the effect on the yield of the related loan, see Section 310-20-35. #### Investments—Debt Securities ##### [835-10-60-5](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:8c7a5472f1a90cc263ec0dad4f3101e74250150883c41ba4c3dc2432baa6eafe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition of interest income on investments in debt securities, see paragraph [320-10-35-4](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-4). ##### [835-10-60-6](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:68305679b5fe755ac618796c561a0b4d644fb137417a470a05f0130919a64ec1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition of interest income on structured notes, see paragraph [320-10-35-38](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-38). #### Investments—Equity Securities ##### [835-10-60-6A](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-6A) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:4252b95b93fcd441d54a1c26d484b8b2de94cb4d38cba34d18284674cd004a7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on recognition of dividend income on investments in equity securities, see paragraph [321-10-35-6](https://asc.understandingaccounting.org/asc/321/10/#321-10-35-6). #### Investments—Other ##### [835-10-60-7](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:8526af8756a3563951f34a27092b769375af2ba2c8e912663bf964c60116f4ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on accounting for a transferor's interests in securitized transactions accounted for as sales (see Topic 860) and purchased beneficial interests, see Subtopic 325-40. #### Other Assets and Deferred Costs ##### [835-10-60-8](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:84bdaaae937bfddf1dc4597f7375ad9a9ff95c1ee671f7906e8ca58c0b70be3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the recognition of changes in the carrying amount of a deposit as interest income or interest expense when an insurance contract is accounted for as a deposit, see paragraph [340-30-45-2](https://asc.understandingaccounting.org/asc/340/30/#340-30-45-2). #### Debt ##### [835-10-60-9](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:f1229af67085806325ef69869c3e2526cd3606f43dbd7d8c729e6fadb9e55902 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the method of determining interest expense to be recognized for increasing-rate debt, see paragraphs [470-10-35-1 through 35-2](https://asc.understandingaccounting.org/asc/470/10/#470-10-35-1) . ##### [835-10-60-10](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:a132c0743a28012029cf7970ee21599130d3304bf49f5dd3117faa18c4f8d53d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on whether interest should be accrued or imputed to the date of conversion of a debt instrument to an equity instrument where the terms provide that accrued but unpaid interest at the date of the conversion is forfeited by the debt holder, see paragraph [470-20-35-11](https://asc.understandingaccounting.org/asc/470/20/#470-20-35-11). ##### [835-10-60-11](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:acba17ba003a1c8aac09c1109346a5693adee1fe8d581d36906a394b5b5d5e46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on a debtor's accounting for a modification or exchange of debt instruments, see Section 470-50-40. ##### [835-10-60-12](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:7f274e2bccd32373fd9adc2222b9f4476d91145eedd573c022e879f9181f743e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the recognition of interest expense on a payable restructured in a troubled debt restructuring, see paragraphs [470-60-35-5 through 35-6](https://asc.understandingaccounting.org/asc/470/60/#470-60-35-5) . #### Distinguishing Liabilities from Equity ##### [835-10-60-13](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:cfe58b054c8c2ef017000d0e80c86942670dc6131b2aa67461aab7c2d11aeea0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the recognition of interest cost on forward contracts that require physical settlement by repurchase of a fixed number of the issuer's equity shares in exchange for cash, see paragraph [480-10-35-3](https://asc.understandingaccounting.org/asc/480/10/#480-10-35-3). #### Income Taxes ##### [835-10-60-14](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:c4f31d9081002f56a68405e9b378e23b905d2fff211e73c804d8dc45925f2fbb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For recognition and measurement requirements for the accrual of interest on unrecognized tax benefits and for guidance on the recognition of interest expense when the tax law requires interest to be paid on an underpayment of income taxes, see paragraph [740-10-25-56](https://asc.understandingaccounting.org/asc/740/10/#740-10-25-56). #### Derivatives and Hedging ##### [835-10-60-15](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:5a661527ef8c4d1a1dce37724f7efef1d76b71b9fd5f0700e2e5049b219ae7cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the accounting for embedded features that alter net interest payments on an interest-bearing host contract, see paragraphs [815-15-25-26 through 25-27](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-26) . #### Not-for-Profit Entities ##### [835-10-60-16](https://asc.understandingaccounting.org/asc/835/10/#835-10-60-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:48:49.212Z to 2026-09-10T01:48:49.212Z Record version: sha256:6aeda68dd22a0df06cb662e2b3b39314b2ab0791e2649669b5ffd2c6f1fd511e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the presentation of accruals of the interest element related to unconditional promises to give by donees and by donors, see paragraph [958-310-45-2](https://asc.understandingaccounting.org/asc/310/958/#310-958-45-2).