# ASC 860-20-05: Transfers and Servicing — Sales of Financial Assets — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

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## ASC 860-20-05: 05 Overview and Background

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##### [860-20-05-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-05-1)

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This Subtopic provides guidance on the accounting for a [transfer](https://asc.understandingaccounting.org/glossary/t/#transfer "The conveyance of a noncash financial asset by and to someone other than the issuer of that financial asset. A transfer includes the following: Selling a receivable Putting a receivable into a securitization trust Posting a receivable as collateral. A transfer excludes the following: The origination of a receivable Settlement of a receivable The restructuring of a receivable into a security in a troubled debt restructuring.") of [financial assets](https://asc.understandingaccounting.org/glossary/f/#financial-asset "Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity.") that satisfies the conditions for sale accounting in paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) and the accounting if a [transferor](https://asc.understandingaccounting.org/glossary/t/#transferor "An entity that transfers a financial asset, an interest in a financial asset, or a group of financial assets that it controls to another entity.") regains control of assets previously sold.