{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/835/30/#15-scope-and-scope-exceptions","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":"835","topic_title":"Interest","subtopic":"835-30","subtopic_title":"Imputation of Interest","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Entities","paragraphs":[{"citation":"835-30-15-1","para":"15-1","html":"
The guidance in this Subtopic applies to all entities. Specific guidance applies to finance companies, including finance company subsidiaries, and other entities that engage in transactions that involve lending to or financing the activities of others. For such entities, transactions in which captive finance companies offer favorable financing to increase sales of related entities are included in the scope of this Subtopic.
","snippet":"The guidance in this Subtopic applies to all entities. Specific guidance applies to finance companies, including finance company subsidiaries, and other entities that engage in transactions that involve lending to or fin…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76ac68c3a2ad0602aaa95effb1532e07cd16534b652a8c00e26c55c60f333133","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31111eda135ff6764ca18c16e1db13d3ece33e2daae9ed9d00b3232abd392af4","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}},{"block":null,"heading":"Instruments","paragraphs":[{"citation":"835-30-15-2","para":"15-2","html":"
The guidance in this Subtopic applies to receivables and payables that represent contractual rights to receive money or contractual obligations to pay money on fixed or determinable dates, whether or not there is any stated provision for interest, with certain exceptions noted below. Such receivables and payables are collectively referred to in this Subtopic as notes. Some examples are the following:
  1. a
    Secured and unsecured notes
  2. b
    Debentures
  3. c
    Bonds
  4. d
    Mortgage notes
  5. e
    Equipment obligations
  6. f
    Some accounts receivable and payable.
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With the exception of guidance in paragraphs
835-30-45-1A through 45-3
addressing the presentation of discount and premium in the financial statements, which is applicable in all circumstances, and the guidance in paragraphs
835-30-55-2 through 55-3
regarding the application of the interest method, the guidance in this Subtopic does not apply to the following:
  1. a
    Payables arising from transactions with suppliers in the normal course of business that are due in customary trade terms not exceeding approximately one year
  2. b
    Amounts that do not require repayment in the future, but rather will be applied to the purchase price of the property, goods, or service involved; for example, deposits or progress payments on construction contracts, advance payments for acquisition of resources and raw materials, advances to encourage exploration in the extractive industries (see paragraph 932-835-25-2)
  3. c
    Amounts intended to provide security for one party to an agreement (for example, security deposits, retainages on contracts)
  4. d
    The customary cash lending activities and demand or savings deposit activities of financial institutions whose primary business is lending money
  5. e
    Transactions where interest rates are affected by the tax attributes or legal restrictions prescribed by a governmental agency (for example, industrial revenue bonds, tax exempt obligations, government guaranteed obligations, income tax settlements)
  6. f
    Transactions between parent and subsidiary entities and between subsidiaries of a common parent
  7. g
    The application of the present value measurement (valuation) technique to estimates of contractual or other obligations assumed in connection with sales of property, goods, or service, for example, a warranty for product performance
  8. h
    Receivables, contract assets, and contract liabilities in contracts with customers, see paragraphs
    606-10-32-15 through 32-20
    for guidance on identifying a significant financing component in a contract with a customer.
","snippet":"With the exception of guidance in paragraphs 835-30-45-1A through 45-3 addressing the presentation of discount and premium in the financial statements, which is applicable in all circumstances, and the guidance in paragr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2211fe64635a42063e5ed0aa9bd772ed05396cf31573a103649115f69b40ec37","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a70a03f93c1eb01b21b0c5419ce4e58905d8f9c5ca11fc98c39ab87cd1907cfe","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"835-30-15-4","para":"15-4","html":"
This Subtopic does not modify the following accounting guidance addressed in other Topics:
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2020-06.
  2. b
    The guidance that deferred income taxes should not be accounted for on a discounted (present value) basis in Subtopic 740-10.
","snippet":"This Subtopic does not modify the following accounting guidance addressed in other Topics:\n(a) Subparagraph superseded by Accounting Standards Update No. 2020-06.\n(b) The guidance that deferred income taxes should not be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d552d69f433db5f399b341f409e7b137fe74d4809cd6bc6cd9eee5726093bba","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b29178b5d0f824207e3e99e82e1c91e72c02f89aded93eb441812a05bdf0cae","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7084b4f1158e2bced7a839cd06dd69b7f3bca64724312bb5b0f1f2f3e30d0d12","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7084b4f1158e2bced7a839cd06dd69b7f3bca64724312bb5b0f1f2f3e30d0d12","downloaded_from":"2026-09-10T01:49:42.386Z","last_downloaded_at":"2026-09-10T01:49:42.386Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483031","source_sha256":"7b3126b27b1a294daf4a19ec3466f526b25341548ceaacb365baa0347cc0b5e0"}}