{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/860/20/#30-initial-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":"860","topic_title":"Transfers and Servicing","subtopic":"860-20","subtopic_title":"Sales of Financial Assets","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"860-20-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_F6285DC6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/t/#transferor\" class=\"term\" title=\"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.\"><span>transferor</span></a> shall initially measure at fair value </span></span><span class=\"sfragment\" id=\"sfr_F6285EDD-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">any asset obtained (or liability incurred) and recognized under paragraph <a href=\"/asc/860/20/#860-20-25-1\" class=\"xref\">860-20-25-1</a>. </span></span></div></div>","snippet":"The transferor shall initially measure at fair value any asset obtained (or liability incurred) and recognized under paragraph 860-20-25-1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25256a755c64d9370d5d1885589d85c87c630f2cf2a649bcbd607d7f2fbe29f6","downloaded_from":"2026-09-10T02:06:31.009Z","last_downloaded_at":"2026-09-10T02:06:31.009Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481414","source_sha256":"da7f54ce82d5ac5d91de7bfd960cf8ccd8d67892d016302c82ab64398f73ec17"}},{"citation":"860-20-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_F62860BC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/t/#transferee\" class=\"term\" title=\"An entity that receives a financial asset, an interest in a financial asset, or a group of financial assets from a transferor.\"><span>transferee</span></a> shall initially measure, at fair value, any asset or liability recognized under paragraph <a href=\"/asc/860/20/#860-20-25-3\" class=\"xref\">860-20-25-3</a>, </span></span><span class=\"sfragment\" id=\"sfr_F6286181-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">unless it is a <a href=\"/glossary/p/#purchased-financial-assets-with-credit-deterioration\" class=\"term\" title=\"Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.\"><span>purchased financial asset with credit deterioration</span></a> or is a beneficial interest that meets the criteria in paragraph <a href=\"/asc/325/40/#325-40-30-1A\" class=\"xref\">325-40-30-1A</a>, in which case the transferee shall apply the guidance in Topic <a altsource=\"GUID-625589DC-9B5F-442F-8EE2-DE0905FB7CE6.ditamap\" class=\"ditamap\">326</a> on measurement of credit losses to determine the initial amortized cost basis. </span></span></div><div class=\"div pending-text\" id=\"pgroup_F6285482-6E92-1014-A13F-6E4B94C84136__GUID-C142BF10-2822-4EBA-8B28-E169BD123E7F\"><div class=\"div date-effective\"><span class=\"transition-header\">Transition date:</span><span class=\"p-alphabet\">(P) December 16, 2026; (N) December 16, 2026</span><span class=\"transition-header pipe-separator\">Transition guidance:</span></div><a href=\"/asc/326/10/#326-10-65-7\" class=\"xref\">326-10-65-7</a><span class=\"sfragment\" id=\"GUID-C8E40CFF-0D60-4B79-B483-E0EFBBD89108\"><span class=\"sfragment-source\">The <a href=\"/glossary/t/#transferee\" class=\"term\" title=\"An entity that receives a financial asset, an interest in a financial asset, or a group of financial assets from a transferor.\"><span>transferee</span></a> shall initially measure, at fair value, any asset or liability recognized under paragraph <a href=\"/asc/860/20/#860-20-25-3\" class=\"xref\">860-20-25-3</a>, </span></span><span class=\"sfragment\" id=\"GUID-BD63E1B3-4BBE-408F-8433-7181A83627F9\"><span class=\"sfragment-source\">unless it is a <a href=\"/glossary/p/#purchased-financial-assets-with-credit-deterioration\" class=\"term\" title=\"Acquired individual financial assets (or acquired groups of financial assets with similar risk characteristics) that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by an acquirer's assessment. See paragraph 326-20-55-5 for more information on the meaning of similar risk characteristics for assets measured on an amortized cost basis.\"><span>purchased financial asset with credit deterioration</span></a>, a beneficial interest that meets the criteria in paragraph <a href=\"/asc/325/40/#325-40-30-1A\" class=\"xref\">325-40-30-1A</a>, </span></span><span class=\"sfragment\" id=\"GUID-39A35254-C8B6-42E8-9B37-4C5A0443BB54\"><span class=\"sfragment-source\">or a <a href=\"/glossary/p/#purchased-seasoned-loans\" class=\"term\" title=\"(P) December 16, 2026; (N) December 16, 2026 326-10-65-7 Paragraphs 326-20-30-16326-20-30-17326-20-30-18 define the term purchased seasoned loans.\"><span>purchased seasoned loan</span></a>, </span></span><span class=\"sfragment\" id=\"GUID-0CB31D5E-01CE-4BAD-8228-A1E96F628DE9\"><span class=\"sfragment-source\">in which case the transferee shall apply the guidance in Topic <a altsource=\"GUID-625589DC-9B5F-442F-8EE2-DE0905FB7CE6.ditamap\" class=\"ditamap\">326</a> on measurement of credit losses to determine the initial amortized cost basis. </span></span></div></div>","snippet":"The transferee shall initially measure, at fair value, any asset or liability recognized under paragraph 860-20-25-3, unless it is a purchased financial asset with credit deterioration or is a beneficial interest that me…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e92b463735ff53af85f3e36197d5a9498ce0db5da0c8aaa76cf40a8a740740b","downloaded_from":"2026-09-10T02:06:31.009Z","last_downloaded_at":"2026-09-10T02:06:31.009Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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shall initially measure <a href=\"/glossary/t/#transferred-financial-assets\" class=\"term\" title=\"Transfers of any of the following: An entire financial asset A group of entire financial assets A participating interest in an entire financial asset.\"><span>transferred financial assets</span></a> and liabilities that are rerecognized under paragraph <a href=\"/asc/860/20/#860-20-25-10\" class=\"xref\">860-20-25-10(a)</a> as a result of regaining control of the <a href=\"/glossary/f/#financial-asset\" class=\"term\" title=\"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.\"><span>financial assets</span></a> sold at fair value on the date of the change as if the transferor purchased the transferred financial assets and assumed the liabilities on that date. </span></span></div></div>","snippet":"The transferor shall initially measure transferred financial assets and liabilities that are rerecognized under paragraph 860-20-25-10(a) as a result of regaining control of the financial assets sold at fair value on the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c12624b8cc4c8961c6fa2bdee7ce6141e226e789095eb0f79d64d09b629aa6db","downloaded_from":"2026-09-10T02:06:31.009Z","last_downloaded_at":"2026-09-10T02:06:31.009Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481414","source_sha256":"da7f54ce82d5ac5d91de7bfd960cf8ccd8d67892d016302c82ab64398f73ec17"}},{"citation":"860-20-30-4","para":"30-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2009-16/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2009-16</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2009-16.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3122e8e00f84b293b1f30a29461822532b4934368655c6cf48999745d03aaeb9","downloaded_from":"2026-09-10T02:06:31.009Z","last_downloaded_at":"2026-09-10T02:06:31.009Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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