{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/835/30/#35-subsequent-measurement","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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"835-30-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Section provides guidance for the measurement of interest income or expense over the term of a note.</div></div>","snippet":"This Section provides guidance for the measurement of interest income or expense over the term of a note.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2268ee184fe0d86ea8c8031202b7ca6ffaf074a8f6b3b1c57cdd6d9e06abb618","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90656766f0ccd1c95d8906797d3f818e754ef61ead25e1cd43b9feb78e5e0a78","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}},{"block":null,"heading":"The Interest Method","paragraphs":[{"citation":"835-30-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D51072E8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">With respect to a note for which the imputation of interest is required, the difference between the present value and the face amount shall be treated as <a href=\"/glossary/d/#discount\" class=\"term\" title=\"The difference between the net proceeds, after expense, received upon issuance of debt and the amount repayable at its maturity. See Premium.\"><span>discount</span></a> or <a href=\"/glossary/p/#premium\" class=\"term\" title=\"The excess of the net proceeds, after expense, received upon issuance of debt over the amount repayable at its maturity. See Discount.\"><span>premium</span></a> and amortized as interest expense </span></span><span class=\"sfragment\" id=\"sfr_D510745D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">or income over the life of the note in such a way as to result in a constant rate of interest when applied to the amount outstanding at the beginning of any given period. </span></span><span class=\"sfragment\" id=\"sfr_D510758E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This is the <a href=\"/glossary/i/#interest-method\" class=\"term\" title=\"The method used to arrive at a periodic interest cost (including amortization) that will represent a level effective rate on the sum of the face amount of the debt and (plus or minus) the unamortized premium or discount and expense at the beginning of each period.\"><span>interest method</span></a>. </span></span></div></div>","snippet":"With respect to a note for which the imputation of interest is required, the difference between the present value and the face amount shall be treated as discount or premium and amortized as interest expense or income ov…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a5416811fbbb4f2083dc6ae0bb01a1002daea5391c372de52f0205af71c7efbf","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}},{"citation":"835-30-35-3","para":"35-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D51076FC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The difference between the periodic interest cost so calculated using the interest method and the nominal interest on the outstanding amount of the debt is the amount of periodic amortization. </span></span></div></div>","snippet":"The difference between the periodic interest cost so calculated using the interest method and the nominal interest on the outstanding amount of the debt is the amount of periodic amortization.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f70d8edfb8899e9161c74639a72d994e7f934972194fd83ad9cfcaec1cafcca","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c5c8eb46a987bf31c9b7c0416c671194546d92696be8efb81de96e0fb40d6a5d","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}},{"block":null,"heading":"Other Methods of Amortization","paragraphs":[{"citation":"835-30-35-4","para":"35-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D5107842-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Other methods of amortization may be used if the results obtained are not materially different from those that would result from the interest method. </span></span></div></div>","snippet":"Other methods of amortization may be used if the results obtained are not materially different from those that would result from the interest method.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c1d7b0700c462f878e9147cc5f400f151680125266fe013fc25237daea655c3e","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e2f85b93b4ba147f95ff711d3671691f6dda6b04e0422a4846f86afaef773ba0","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}},{"block":null,"heading":"Eligibility for Interest Capitalization","paragraphs":[{"citation":"835-30-35-5","para":"35-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_D510796D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount chargeable to interest expense under the guidance in this Subtopic is eligible for inclusion in the amount of interest cost capitalized in accordance with Subtopic <a altsource=\"GUID-07251D70-AAFA-429D-B7E1-4BA74D4FD303.ditamap\" class=\"ditamap\">835-20</a>. </span></span></div></div>","snippet":"The amount chargeable to interest expense under the guidance in this Subtopic is eligible for inclusion in the amount of interest cost capitalized in accordance with Subtopic 835-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25baf65491a54a8be75799a64afd1a89acf913c5174159adc68628272b369613","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482953","source_sha256":"2708f9c4a5ca8f8f2ec5d285723d4aa7872b98050461f697a314b89a24d356c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa790056a988b4a371095d3a5d8f453200136a25bb9c7346b85fb5e1130a4369","downloaded_from":"2026-09-10T01:49:51.488Z","last_downloaded_at":"2026-09-10T01:49:51.488Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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