# ASC 860-20: Transfers and Servicing — Sales of Financial Assets Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/860/20/) 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): 2026-09-10T02:06:13.207Z to 2026-09-10T02:06:48.464Z Record version: sha256:3ad7b9d92f7626e9f2d100380ffee3772570971732261c93eba5cb2f726a3276 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20: Transfers and Servicing — Sales of Financial Assets ### Machine-generated study aids ```json { "summary": "ASC 860-20 tells a transferor what to record once a transfer of financial assets qualifies as a sale under 860-10-40-5, and what happens if the transferor later regains control. For a sale of entire financial assets, the transferor derecognizes the assets, recognizes at fair value all assets obtained and liabilities incurred (cash, servicing assets/liabilities, beneficial interests, options, forwards, swaps), and books the gain or loss in earnings; for a participating interest, the prior carrying amount is allocated between the interest sold and the interest retained on relative fair values. If a change in law or circumstance causes the transferor to regain control, it rerecognizes the assets and related liabilities at fair value as if it purchased them, with no gain or loss on its beneficial interests.", "key_points": [ "On a sale of an entire financial asset or group, the transferor derecognizes the transferred assets, recognizes assets obtained/liabilities incurred, and recognizes gain or loss in earnings (860-20-40-1B); any amount in AOCI for an available-for-sale asset is recognized in earnings at the transfer date.", "On a sale of a participating interest, the previous carrying amount of the entire financial asset is allocated between the participating interest sold and the interest retained based on relative fair values at the transfer date; the retained interest equals the carrying amount less the amount derecognized (860-20-40-1A).", "Assets obtained and liabilities incurred by the transferor (cash, servicing assets and liabilities, beneficial interests, puts/calls including recourse obligations, forwards, swaps) are recognized (860-20-25-1) and initially measured at fair value (860-20-30-1); the transferee recognizes all assets obtained and liabilities incurred (860-20-25-3) at fair value, except PCD assets and 325-40-30-1A beneficial interests (860-20-30-2).", "Proceeds equal cash and other assets obtained (including beneficial interests and separately recognized servicing assets) less liabilities incurred, with concurrent derivatives part of the proceeds (860-20-25-4); no portion of the resulting gain or loss may be deferred (860-20-25-6).", "Retained credit risk is a separate liability only if the transferor could be required to pay more than the cash flows of the interest it obtained; otherwise it is reflected in measuring the beneficial interest (860-20-25-6; 860-20-55-24).", "If the transferor regains control, it accounts for the change as a purchase of the assets in exchange for liabilities assumed, rerecognizing them at fair value on that date (860-20-25-9 through 25-10; 860-20-30-3), with no gain or loss on its beneficial interests (860-20-25-12), no change to the servicing asset (860-20-25-10(b)), and an allowance for credit losses under Topic 326 (860-20-25-13).", "Financial assets (other than those within Subtopic 815-10) that can contractually be prepaid or settled such that the holder would not recover substantially all of its recorded investment must be measured like available-for-sale or trading debt securities and can never be held-to-maturity, however remote prepayment is (860-20-35-2; 860-20-35-5)." ], "categories": [ "Derecognition", "Financial instruments", "Initial measurement", "Disclosure" ], "audience_level": "advanced", "student_note": "This is the \"what do I book after the sale test is passed\" half of Topic 860 — the sale/secured-borrowing test itself lives in 860-10-40-5. A common misunderstanding is thinking retained recourse or credit risk lets you defer part of the gain: 860-20-25-6 expressly forbids deferring gain, requiring instead a separately recognized liability at fair value (or reflection in the beneficial interest's measurement).", "related_topics": [ "860-10", "860-30", "860-50", "325-40", "326", "320" ], "key_concepts": [ "sale accounting for transfers", "participating interest", "beneficial interest", "servicing asset and liability", "proceeds and gain or loss on sale", "regaining control / rerecognition", "removal-of-accounts provision", "continuing involvement disclosures" ] } ``` Source downloaded (UTC): 2026-09-10T02:06:13.207Z to 2026-09-10T02:06:13.207Z Record version: sha256:7355df9f94d118b62c736db47d8c24cf17ff2227bb83a634369f39ec516bc600 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/860/20/#00-status) SEC content: no ##### [860-20-00-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:13.207Z to 2026-09-10T02:06:13.207Z Record version: sha256:e581f81a62461bc21cfc38f53073f340d952c4a4e229e15b065b861b67c89e5b 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
AffiliateRemoved from SubtopicAccounting Standards Update No. 2009-1612/23/2009
Beneficial InterestsAmendedAccounting Standards Update No. 2009-1612/23/2009
CashAddedAccounting Standards Update No. 2009-1612/23/2009
Continuing InvolvementAmendedAccounting Standards Update No. 2009-1612/23/2009
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
Derivative Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
Derivative InstrumentAddedAccounting Standards Update No. 2009-1612/23/2009
Financial Asset (1st def.)SupersededAccounting Standards Update No. 2016-1912/14/2016
Financial Asset (1st def.)AddedAccounting Standards Update No. 2016-1306/16/2016
Financial Asset (2nd def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Financial AssetAddedAccounting Standards Update No. 2009-1612/23/2009
Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Lease PaymentsAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Participating InterestAddedAccounting Standards Update No. 2009-1612/23/2009
ProceedsAmendedAccounting Standards Update No. 2009-1612/23/2009
Purchased Financial Assets with Credit DeteriorationAmendedAccounting Standards Update No. 2016-1912/14/2016
Purchased Financial Assets with Credit DeteriorationAddedAccounting Standards Update No. 2016-1306/16/2016
Repurchase AgreementAddedAccounting Standards Update No. 2014-1106/12/2014
Servicing AssetsAddedAccounting Standards Update No. 2009-1612/23/2009
TransfereeAmendedAccounting Standards Update No. 2009-1612/23/2009
TransferorAmendedAccounting Standards Update No. 2009-1612/23/2009
Transferred Financial AssetsAmendedAccounting Standards Update No. 2014-0603/14/2014
Transferred Financial AssetsAddedAccounting Standards Update No. 2009-1612/23/2009
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
860-20-10-1SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-25-1AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-25-3AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-25-4AmendedAccounting Standards Update No. 2015-1006/12/2015
860-20-25-4AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-25-5SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-25-6AmendedAccounting Standards Update No. 2012-0410/01/2012
860-20-25-6AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-25-7SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-25-8 through 25-12
AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-25-9AmendedMaintenance Update 2016-05 (PDF)04/12/2016
860-20-25-13AmendedAccounting Standards Update No. 2020-0303/09/2020
860-20-30-1 through 30-3
AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-30-2AmendedAccounting Standards Update No. 2016-1306/16/2016
860-20-30-4SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-35-1 through 35-3
AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-35-3AmendedAccounting Standards Update No. 2016-1306/16/2016
860-20-35-5AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-35-6AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-35-7SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-35-8AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-35-9AmendedAccounting Standards Update No. 2016-1306/16/2016
860-20-40-1SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-40-1AAmendedAccounting Standards Update No. 2022-0103/28/2022
860-20-40-1AAddedAccounting Standards Update No. 2009-1612/23/2009
860-20-40-1BAmendedAccounting Standards Update No. 2022-0103/28/2022
860-20-40-1BAddedAccounting Standards Update No. 2009-1612/23/2009
860-20-40-2SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-40-3AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-50-1AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-50-2AddedAccounting Standards Update No. 2009-1612/23/2009
860-20-50-2A through 50-4
AmendedAccounting Standards Update No. 2025-1112/08/2025
860-20-50-2AAddedAccounting Standards Update No. 2016-1912/14/2016
860-20-50-3 through 50-5
AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-50-4A through 50-4D
AddedAccounting Standards Update No. 2014-1106/12/2014
860-20-50-4DAmendedAccounting Standards Update No. 2025-1112/08/2025
860-20-50-5AmendedAccounting Standards Update No. 2025-1112/08/2025
860-20-50-5AmendedAccounting Standards Update No. 2016-1306/16/2016
860-20-50-6 through 50-9SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-55-1AmendedAccounting Standards Update No. 2016-0202/25/2016
860-20-55-1AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-2 through 55-15SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-55-16AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-18AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-19AmendedAccounting Standards Update No. 2016-1306/16/2016
860-20-55-19AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-24AmendedMaintenance Update 2014-07 (PDF)03/17/2014
860-20-55-24AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-24AAddedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-25AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-26AmendedAccounting Standards Update No. 2016-0202/25/2016
860-20-55-26AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-27AmendedAccounting Standards Update No. 2016-0202/25/2016
860-20-55-28SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-55-29AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-31AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-32AmendedAccounting Standards Update No. 2012-0410/01/2012
860-20-55-33AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-38 through 55-41
AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-41AmendedAccounting Standards Update No. 2016-1912/14/2016
860-20-55-43 through 55-47
AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-49 through 55-57SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-55-58AmendedAccounting Standards Update No. 2016-0202/25/2016
860-20-55-58AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-59AmendedAccounting Standards Update No. 2016-0202/25/2016
860-20-55-60 through 55-82SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-55-83AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-85 through 55-88
AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-89SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-55-90AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-91AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-92AmendedAccounting Standards Update No. 2009-1612/23/2009
860-20-55-93 through 55-107SupersededAccounting Standards Update No. 2009-1612/23/2009
860-20-55-108AmendedMaintenance Update 2016-11 (PDF)06/27/2016
860-20-55-108AddedAccounting Standards Update No. 2014-1106/12/2014
Source downloaded (UTC): 2026-09-10T02:06:15.692Z to 2026-09-10T02:06:15.692Z Record version: sha256:aa120b68f5648b8e098acd55ca68ec37dbdb06b4e3240d735f51cdc6ef1a59e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/860/20/#05-overview-and-background) SEC content: no ##### [860-20-05-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:15.692Z to 2026-09-10T02:06:15.692Z Record version: sha256:5c5bc79d2d5841fadacfb2ed7d28fbe780f79b186b295ebcb82beefbf363fee2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. Source downloaded (UTC): 2026-09-10T02:06:19.355Z to 2026-09-10T02:06:19.355Z Record version: sha256:3a503de32a32973b3e43ac128ae5fb2c6a0bc618965908b89f8769134827d079 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/860/20/#10-objectives) SEC content: no ##### [860-20-10-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:19.355Z to 2026-09-10T02:06:19.355Z Record version: sha256:ca2e31c35a810e38c0fdd7f47cc7490c59cbd4b1eec488dece33aa242bf04030 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). Source downloaded (UTC): 2026-09-10T02:06:22.795Z to 2026-09-10T02:06:22.795Z Record version: sha256:31de706e1e4f95200916eff95240abc9a6fc4525bf8947fddcccd326dac0722c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/860/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [860-20-15-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:22.795Z to 2026-09-10T02:06:22.795Z Record version: sha256:8bf1ba147ee782269216a5c8533f9869989a4e0f1eae200ff0818e5cf5796a68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 860-10-15. Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:3e91504ff564cbd0279e32a941332f29cfd5605abd633ccc225226eeeaf83d96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/860/20/#25-recognition) SEC content: no ##### [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:fc52af69548b7078cf8547a29b7c224936068d4b6a8f838e28996542a9fd3ec4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 860-20-40 provides derecognition guidance 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.") ([seller](https://asc.understandingaccounting.org/glossary/s/#seller "A transferor that relinquishes control over financial assets by transferring them to a transferee in exchange for consideration.")) applies upon completion of 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 paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5)'s conditions to be accounted for as a sale. Upon completion of such a transfer, the transferor (seller) shall also recognize any assets obtained or liabilities incurred in the sale, including, but not limited to, any of the following: 1. a Cash 2. b Servicing assets 3. c Servicing liabilities 4. d In a sale of an entire financial asset or a group of entire financial assets, any of the following: 1. 1 The transferor's beneficial interest in the [transferred financial assets](https://asc.understandingaccounting.org/glossary/t/#transferred-financial-assets "Transfers of any of the following: An entire financial asset A group of entire financial assets A participating interest in an entire financial asset.") 2. 2 Put or call options held or written (for example, guarantee or recourse obligations) 3. 3 Forward commitments (for example, commitments to deliver additional receivables during the revolving periods of some [securitizations](https://asc.understandingaccounting.org/glossary/s/#securitization "The process by which financial assets are transformed into securities.")) 4. 4 Swaps (for example, provisions that convert interest rates from fixed to variable). See Examples 1, 2, and 5 (paragraphs [860-20-55-43 through 55-59](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-43) ) for illustration of this guidance. ##### [860-20-25-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:98ba35ff80103998e1faf4a423bcb499cd447cf01ad508d0ece20af1046b1054 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although a transfer of securities may not be considered to have reached completion until the settlement date, this Subtopic does not modify other generally accepted accounting principles (GAAP) that require accounting at the trade date for certain contracts to purchase or sell securities. ##### [860-20-25-3](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:8e2d3ee42fb339c5550fab93b8df4b068c3280a9e917550671ff3438d128b1ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [transferee](https://asc.understandingaccounting.org/glossary/t/#transferee "An entity that receives a financial asset, an interest in a financial asset, or a group of financial assets from a transferor.") shall recognize all assets obtained (including any [participating interest(s)](https://asc.understandingaccounting.org/glossary/p/#participating-interest "Paragraph 860-10-40-6A defines the term participating interest.") obtained) and any liabilities incurred. #### Assets Obtained and Liabilities Incurred as Proceeds ##### [860-20-25-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:ae722494bc438693db45e2b246b2458204e94d7444b16700543f4d06dc6b1647 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The proceeds from a sale of financial assets consist of the cash and any other assets obtained, including beneficial interests and separately recognized servicing assets, in the transfer less any liabilities incurred, including separately recognized servicing liabilities. Any asset obtained is part of the proceeds from the sale. Any liability incurred, even if it is related to the transferred financial assets, is a reduction of the proceeds. Any [derivative financial instrument](https://asc.understandingaccounting.org/glossary/d/#derivative-financial-instrument "A derivative instrument that is a financial instrument.") entered into concurrently with a transfer of financial assets is either an asset obtained or a liability incurred and part of the proceeds received in the transfer. ##### [860-20-25-5](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:1693a078159ee7e4f9788c7e7da429597f71d625a97d23e566939905da2c4482 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). #### Distinguishing New Interests Obtained from Part of a Beneficial Interest Obtained ##### [860-20-25-6](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:92e8d128f23347e60e52bbbe8e9d78704babc6abcecb605f0651eb0b8eecb9a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining whether credit risk is a separate liability or part of a beneficial interest that has been obtained by the transferor, the transferor should focus on the source of cash flows in the event of a claim by the transferee. If the transferee can only look to cash flows from the underlying financial assets, the transferor has obtained a portion of the credit risk only through the interest it obtained and a separate obligation shall not be recognized. Credit losses from the underlying assets would affect the measurement of the interest that the transferor obtained. In contrast, if the transferor could be obligated for more than the cash flows provided by the interest it obtained and, therefore, could be required to reimburse the transferee for credit-related losses on the underlying assets, the transferor shall record a separate liability. It is not appropriate for the transferor to defer any portion of a resulting gain or loss (or to eliminate gain on sale accounting, as it is sometimes described in practice). ##### [860-20-25-7](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:73f991aed7733806814ab0a2a6a2b4c1d0a75d0b6f3f0a9d5eae5ac3c86dc6f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). #### Regaining Control of Financial Assets Sold ##### [860-20-25-8](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:6c698b8b05fcf8fa77a32e689a9d30cf2b924ab966ca6dee5d7351bb41814bab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [860-10-40-41](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-41) explains that a change in law or other circumstance may result in a transferred portion of an entire financial asset no longer meeting the conditions of a participating interest (see paragraph [860-10-40-6A](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-6A)) or the transferor's regaining control of transferred financial assets after a transfer that was previously accounted for as a sale, because one or more of the conditions in paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) are no longer met. ##### [860-20-25-9](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:269ff6f800a6e9e964b43dec28fe13254ecf7677ae0a77862e471ce56271449b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Such changes shall be accounted for in the same manner as a purchase of the transferred financial assets from the former transferee(s) in exchange for liabilities assumed unless they arise solely from either: 1. a Consolidation of an entity involved in the transfer at a subsequent date (see paragraph [860-20-25-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-10)) 2. b A change in market prices (for example, an increase in price that moves into the money a [freestanding call option](https://asc.understandingaccounting.org/glossary/f/#freestanding-call-option "A call option that is neither embedded in nor attached to an asset subject to that call option.") on a non-readily-obtainable, transferred financial asset that was originally sufficiently out of the money that it was judged not to constrain the transferee). See the related guidance beginning in paragraph [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1). ##### [860-20-25-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:95e198bdf09f1abec42f815199ef6373544683ff995655425aee28baf43b1cfe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After that change, the transferor shall do all of the following: 1. a Recognize in its financial statements those transferred financial assets together with liabilities to the former transferee(s) or beneficial interest holders of the former transferee(s). 2. b Not change the accounting for the servicing asset related to the previously sold financial assets. That is, even though the transferor has regained control over the previously sold assets, the cash flows from those assets will contractually be paid to the special-purpose entity, which will then distribute the proceeds to satisfy its contractual obligations (including obligations to the beneficial interest holders). Because the transferor, as servicer, is still contractually required to collect the asset's cash flows for the benefit of the special-purpose entity and otherwise service the assets, it shall continue to recognize the servicing asset and assess the asset for impairment if subsequently measured using the amortization method, as required by paragraph [860-50-35-9](https://asc.understandingaccounting.org/asc/860/50/#860-50-35-9). Once a servicing asset is recognized it shall not be added back to the underlying asset. Even when the transferor has regained control over the underlying assets through an event that triggers a transferor to rerecognize previously transferred assets that were accounted for as having been sold, the related servicing asset shall continue to be separately recognized. 3. c Continue to account for the transferor's interests in those underlying financial assets apart from any rerecognized financial assets. That is, the transferor's interests shall not be combined with and accounted for with the rerecognized financial assets. Example 10 (see paragraph [860-20-55-83](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-83)) illustrates this guidance. However, a subsequent event that results in the transferor reclaiming those financial assets from the transferee, for example, the exercise of a removal-of-accounts provision or the consolidation by the transferor of the securitization entity in accordance with applicable GAAP, including the Variable Interest Entities Subsections of Subtopic 810-10, would result in a recombination of the transferor's interests with the underlying financial assets. For guidance on consolidation, which is relevant to determining whether a transferor must consolidate an entity involved in a transfer that was accounted for as a sale, see Topic 810. ##### [860-20-25-11](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:ffc6d93864f9640615a3503f021d706f1a15d7beae95767c1430dbcc75e978dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whether the removal-of-accounts provision is exercised or not, the transferor shall recognize any financial assets subject to the removal-of-accounts provision if all of the following conditions are met: 1. a A third party's action (such as default or cancellation) or decision not to act (expiration) occurs. 2. b The occurrence allows removal of assets to be initiated solely by the transferor. 3. c The provision provides a more-than-trivial benefit to the transferor. For example, once a contingency is met (such as when a given loan goes into default), the call option on that asset (loan) is no longer contingent. ##### [860-20-25-12](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:1dfa7963d7555f5fda90c5e07023cf98004ce8c2fa88abc2c65f0ca313462f5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon application of paragraph [860-20-25-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-10), no gain or loss shall be recognized in earnings with respect to any of the transferor's [beneficial interests](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity."). A gain or loss may be recognized upon the exercise of a removal-of-accounts provision or similar contingent right with respect to the repurchased transferred financial assets that were sold if the removal-of-accounts provision or similar contingent right held by the transferor is not accounted for as a derivative instrument under Subtopic 815-10 and is not at the money, resulting in the fair value of those repurchased financial assets being greater or less than the related obligation to the transferee. ##### [860-20-25-13](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-13) Pending content: yes Source downloaded (UTC): 2026-09-10T02:06:28.412Z to 2026-09-10T02:06:28.412Z Record version: sha256:ede16de8b0dd3c9fb42f51b4b5f20a2ad8837c5c413c3caa2a667897432be36f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For financial assets rerecognized in accordance with paragraph [860-20-25-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-10), an entity shall initially recognize a financial asset at fair value. An entity shall then apply relevant guidance, including this Topic, Topic 310 on receivables, Topic 320 on investments—debt securities, Topic 321 on investments—equity securities, Topic 323 on investments—equity method and joint ventures, and Topic 325 on investments—other. In addition, an entity shall measure an allowance for credit losses in accordance with Topic 326, if applicable. 1. a For those financial assets that are not [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "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.") within the scope of Topic 326, an entity shall recognize an allowance for credit losses with a corresponding charge to credit loss expense as of the reporting date. 2. b For those financial assets that are purchased financial assets with credit deterioration (which includes beneficial interest that meets the criteria in paragraph [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A)) within the scope of Topic 326, an entity shall recognize an allowance for credit losses in accordance with Topic 326 with a corresponding increase to the amortized cost basis of the financial asset(s) as of the recognition date. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [326-10-65-7](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-7)For financial assets rerecognized in accordance with paragraph [860-20-25-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-10), an entity shall initially recognize a financial asset at fair value. An entity shall then apply relevant guidance, including this Topic, Topic 310 on receivables, Topic 320 on investments—debt securities, Topic 321 on investments—equity securities, Topic 323 on investments—equity method and joint ventures, and Topic 325 on investments—other. In addition, an entity shall measure an allowance for credit losses in accordance with Topic 326, if applicable. 1. a For those financial assets that are not [purchased financial assets with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "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.")or [purchased seasoned loans](https://asc.understandingaccounting.org/glossary/p/#purchased-seasoned-loans "(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.")within the scope of Topic 326, an entity shall recognize an allowance for credit losses with a corresponding charge to credit loss expense as of the reporting date. 2. b For those financial assets that are purchased financial assets with credit deterioration (which includes beneficial interest that meets the criteria in paragraph [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A)) and purchased seasoned loans within the scope of Topic 326, an entity shall recognize an allowance for credit losses in accordance with Topic 326 with a corresponding increase to the amortized cost basis of the financial asset(s) as of the recognition date. Source downloaded (UTC): 2026-09-10T02:06:31.009Z to 2026-09-10T02:06:31.009Z Record version: sha256:9461de76621084096b569effeb6e1c8db083589ecdd43ff15f5fa44b301c9317 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/860/20/#30-initial-measurement) SEC content: no ##### [860-20-30-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:31.009Z to 2026-09-10T02:06:31.009Z Record version: sha256:25256a755c64d9370d5d1885589d85c87c630f2cf2a649bcbd607d7f2fbe29f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [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.") shall initially measure at fair value any asset obtained (or liability incurred) and recognized under paragraph [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1). ##### [860-20-30-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-2) Pending content: yes Source downloaded (UTC): 2026-09-10T02:06:31.009Z to 2026-09-10T02:06:31.009Z Record version: sha256:4e92b463735ff53af85f3e36197d5a9498ce0db5da0c8aaa76cf40a8a740740b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [transferee](https://asc.understandingaccounting.org/glossary/t/#transferee "An entity that receives a financial asset, an interest in a financial asset, or a group of financial assets from a transferor.") shall initially measure, at fair value, any asset or liability recognized under paragraph [860-20-25-3](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-3), unless it is a [purchased financial asset with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "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.") or is a beneficial interest that meets the criteria in paragraph [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A), in which case the transferee shall apply the guidance in Topic 326 on measurement of credit losses to determine the initial amortized cost basis. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [326-10-65-7](https://asc.understandingaccounting.org/asc/326/10/#326-10-65-7)The [transferee](https://asc.understandingaccounting.org/glossary/t/#transferee "An entity that receives a financial asset, an interest in a financial asset, or a group of financial assets from a transferor.") shall initially measure, at fair value, any asset or liability recognized under paragraph [860-20-25-3](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-3), unless it is a [purchased financial asset with credit deterioration](https://asc.understandingaccounting.org/glossary/p/#purchased-financial-assets-with-credit-deterioration "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."), a beneficial interest that meets the criteria in paragraph [325-40-30-1A](https://asc.understandingaccounting.org/asc/325/40/#325-40-30-1A), or a [purchased seasoned loan](https://asc.understandingaccounting.org/glossary/p/#purchased-seasoned-loans "(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."), in which case the transferee shall apply the guidance in Topic 326 on measurement of credit losses to determine the initial amortized cost basis. #### Regaining Control of Financial Assets Sold ##### [860-20-30-3](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:31.009Z to 2026-09-10T02:06:31.009Z Record version: sha256:c12624b8cc4c8961c6fa2bdee7ce6141e226e789095eb0f79d64d09b629aa6db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The transferor shall initially measure [transferred financial assets](https://asc.understandingaccounting.org/glossary/t/#transferred-financial-assets "Transfers of any of the following: An entire financial asset A group of entire financial assets A participating interest in an entire financial asset.") and liabilities that are rerecognized under paragraph [860-20-25-10(a)](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-10) as a result of regaining control of the [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.") 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. ##### [860-20-30-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:31.009Z to 2026-09-10T02:06:31.009Z Record version: sha256:3122e8e00f84b293b1f30a29461822532b4934368655c6cf48999745d03aaeb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:e575a4420b1e1ae2dfb312c509cd80db8f78c30b00ba46bb3f43988402b8df68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/860/20/#35-subsequent-measurement) SEC content: no ##### [860-20-35-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:4d2dfa50960bb3f8665c214a26ee086a1e3fb70342e387a4b9df2d930722c8e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section is organized as follows: 1. a [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.") subject to prepayment 2. b [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 3. c Credit enhancements 4. d [Beneficial interests](https://asc.understandingaccounting.org/glossary/b/#beneficial-interests "Rights to receive all or portions of specified cash inflows received by a trust or other entity, including, but not limited to, all of the following: Senior and subordinated shares of interest, principal, or other cash inflows to be passed-through or paid-through Premiums due to guarantors Commercial paper obligations Residual interests, whether in the form of debt or equity.") 5. e Transaction costs. #### Financial Assets Subject to Prepayment ##### [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:350a23666ea7f2020097eecbd6301c8ba8e6b3924383975759d3326af4a6c0c9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial assets, except for instruments that are within the scope of Subtopic 815-10, that can contractually be prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment shall be subsequently measured like investments in debt securities classified as available for sale or trading under Topic 320. Examples of such financial assets include, but are not limited to, [interest-only strips](https://asc.understandingaccounting.org/glossary/i/#interest-only-strip "A contractual right to receive some or all of the interest due on a bond, mortgage loan, collateralized mortgage obligation, or other interest-bearing financial asset."), other beneficial interests, loans, or other receivables. Interest-only strips and similar interests that meet the definition of [securities](https://asc.understandingaccounting.org/glossary/s/#security "A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations.") are included in the scope of that Topic. Therefore, all relevant provisions of that Topic (including the disclosure requirements) shall be applied. See related implementation guidance beginning in paragraph [860-20-55-33](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-33). ##### [860-20-35-3](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:7b5ba859b5e1fa20c05d2fb25414594bc08730c451caee21d4113986c0916049 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interest-only strips and similar interests that are not in the form of securities are not within the scope of Topic 320 but shall be measured like investments in debt securities classified as available for sale or trading. In that circumstance, all of the measurement provisions of that Topic, as well as the provisions of Topic 326 on measurement of credit losses, shall be followed. However, other provisions of Topics 320 and 326, such as those addressing disclosures, are not required to be applied. Paragraph [320-10-15-9](https://asc.understandingaccounting.org/asc/320/10/#320-10-15-9) explains that, for debt securities within its scope, Subtopic 325-40 provides incremental guidance on accounting for and reporting discount and credit losses. ##### [860-20-35-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:785f534dfc893f506eba690ed75c0a3936fb0dfb5d778e4178867ddd0c985f9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The requirement in paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) does not apply to situations in which events that are not the result of contractual provisions, for example, borrower default or changes in the value of an instrument's denominated currency relative to the entity's functional currency, cause the holder not to recover substantially all of its recorded investment. ##### [860-20-35-5](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:5877804c1b4090b5034c3098100c66965b5e58b9e34c1b0eabac0ab2806d8f65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A financial asset that can be contractually prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment shall not be classified as held-to-maturity even if the investor concludes that prepayment or other forms of settlement are remote. The probability of prepayment or other forms of settlement that would result in the holder's not recovering substantially all of its recorded investment is not relevant in deciding whether the provisions of paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) apply to those financial assets. ##### [860-20-35-6](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:50ced2ed1679d0cf9572a8060cec506a7e89d8eefa50503fcb2083ecdb36b4bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not specifically address the subsequent measurement of a transferor's beneficial interests that cannot be contractually prepaid or settled in such a way that the owner would not recover substantially all of its recorded investment. ##### [860-20-35-7](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:ebb757474ccb7aa324077caff7d3c1c39821d76d4c5422142ece9e422369a3ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). #### Credit Enhancements ##### [860-20-35-8](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:f2e2f5bd448937b0ce9a16c00fe3d76eb3aa58d7ca0029ffd1da63fe35d5a008 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. While this Subtopic does not specifically address the subsequent measurement of credit enhancements, there are some factors to consider. Factors such as how much cash the transferor will receive from, for example, a cash reserve account, and when it will receive cash inflows depend on the performance of the transferred financial assets. Entities shall regularly review those assets for impairment because of their nature. Entities shall look to other guidance for subsequent measurement including guidance for impairment based on the nature of the credit enhancement. #### Beneficial Interests ##### [860-20-35-9](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:666cc64e21605f3c5efa286ff5bd9d4d633990dc0c4269687117227b36c2690b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Beneficial interests shall be evaluated for credit losses, including at the time paragraphs [860-20-25-8 through 25-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-8) are applied. See Section 325-40-35 for guidance on credit losses applicable to beneficial interests in securitized financial assets. #### Transaction Costs ##### [860-20-35-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:35.142Z to 2026-09-10T02:06:35.142Z Record version: sha256:803b755d8d6666762408e0ad69daf8bc83ab8fb37b84abfe23748bd3ca9afca3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transaction costs relating to a sale of the receivables may be recognized over the initial and reinvestment periods in a rational and systematic manner unless the transaction results in a loss. Transaction costs for a past sale are not an asset and thus are part of the gain or loss on sale. In a credit card [securitization](https://asc.understandingaccounting.org/glossary/s/#securitization "The process by which financial assets are transformed into securities."), however, some of the transaction costs incurred at the outset relate to the future sales that are to occur during the revolving period, and thus can qualify as an asset. Source downloaded (UTC): 2026-09-10T02:06:38.468Z to 2026-09-10T02:06:38.468Z Record version: sha256:924e7935f59482248838a8ac2c86df84458b77900a459b52c4bfe25b6ea60264 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/860/20/#40-derecognition) SEC content: no ##### [860-20-40-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:38.468Z to 2026-09-10T02:06:38.468Z Record version: sha256:fa9dcdddea8dc4277e190d534586b7f646030244f0bb04ad38faf0b12a379f09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). #### Sale of a Participating Interest ##### [860-20-40-1A](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-1A) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:38.468Z to 2026-09-10T02:06:38.468Z Record version: sha256:e4eb79b1374f35733f3e5c1368e08aaa80f6b5879fa6154ea6d7a0cedf0efddf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon completion of 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 a [participating interest](https://asc.understandingaccounting.org/glossary/p/#participating-interest "Paragraph 860-10-40-6A defines the term participating interest.") that satisfies the conditions in paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) to be accounted for as a sale, the [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.")[(seller)](https://asc.understandingaccounting.org/glossary/s/#seller "A transferor that relinquishes control over financial assets by transferring them to a transferee in exchange for consideration.") shall: 1. a Allocate the previous carrying amount of the entire [financial asset](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.") between both of the following on the basis of their relative fair values at the date of the transfer: 1. 1 The participating interest(s) sold 2. 2 The participating interest that continues to be held by the transferor. 2. b [Derecognize](https://asc.understandingaccounting.org/glossary/d/#derecognize "Remove previously recognized assets or liabilities from the statement of financial position.") the participating interest(s) sold 3. c Apply the guidance in paragraphs [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1) and [860-20-30-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-1) on recognition and measurement of assets obtained and liabilities incurred in the sale 4. d Recognize in earnings any gain or loss on the sale 5. e Report any participating interest(s) that continue to be held by the transferor as the difference between the following amountsmeasured at the date of the transfer: 1. 1 The previous carrying amount of the entire financial asset 2. 2 The amount derecognized. For the transfer of a participating interest in a financial asset included in a closed portfolio hedged in an existing portfolio layer method hedge in accordance with Topic 815 on derivatives and hedging, when applying the guidance in (a) through (e) an entity shall not include any portion of the hedge basis adjustment that is maintained on the closed portfolio basis in accordance with paragraphs [815-20-25-12A(b)](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-12A) and [815-25-35-1(c)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1). #### Sale of an Entire Financial Asset or Group of Entire Financial Assets ##### [860-20-40-1B](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-1B) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:38.468Z to 2026-09-10T02:06:38.468Z Record version: sha256:e07f5193692194f4d47d515e69ba6e90a403e5d28adc9f7ea22e56bce547402a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Upon completion of a transfer of an entire financial asset or a group of entire financial assets that satisfies the conditions in paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) to be accounted for as a sale, the transferor (seller) shall: 1. a Derecognize the [transferred financial assets](https://asc.understandingaccounting.org/glossary/t/#transferred-financial-assets "Transfers of any of the following: An entire financial asset A group of entire financial assets A participating interest in an entire financial asset.") 2. b Apply the guidance in paragraphs [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1) and [860-20-30-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-1) on recognition and measurement of assets obtained and liabilities incurred in the sale 3. c Recognize in earnings any gain or loss on the sale. If the transferred financial asset was accounted for under Topic 320 as available for sale before the transfer, item (a) requires that the amount in other comprehensive income be recognized in earnings at the date of transfer. If the transferred financial asset was included in a closed portfolio hedged in an existing portfolio layer method hedge in accordance with Topic 815 before the transfer, when applying the guidance in (a) through (c) an entity shall not include any portion of the hedge basis adjustment that is maintained on the closed portfolio basis in accordance with paragraphs [815-20-25-12A(b)](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-12A) and [815-25-35-1(c)](https://asc.understandingaccounting.org/asc/815/25/#815-25-35-1). ##### [860-20-40-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:38.468Z to 2026-09-10T02:06:38.468Z Record version: sha256:da7b0c1a94558f2a40cd48828361ff3ef666aa9ca2b1e21e7c797c9db877c90c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). #### Transferor and Transferee Accounting Circumstances upon Regaining Control ##### [860-20-40-3](https://asc.understandingaccounting.org/asc/860/20/#860-20-40-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:38.468Z to 2026-09-10T02:06:38.468Z Record version: sha256:fbdacba323fc5fd8754d97937fbeb277d98375847ea7abdfe210cbf2b96329f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance beginning in paragraph [860-20-25-8](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-8) discusses the transferor's accounting upon regaining control of financial assets sold. In such circumstances, the former transferee would derecognize the transferred financial assets on that date, as if it had sold the transferred financial assets in exchange for a receivable from the transferor. Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:d350e577c5f8f96b80fe874d865b5da97df301117cd778622dd4d503a63e9a1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/860/20/#50-disclosure) SEC content: no #### All Entities within Scope of Subtopic ##### [860-20-50-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:ba89ef5dfc6a62bb04ecb1b6a257f2435fe2f076f7d64258e2b064edde28cc94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section is organized as follows: 1. a Disclosures for each income statement presented 2. b Disclosures for each statement of financial position presented 3. c Sales of loans and trade receivables. For overall guidance on Topic 860's disclosures, see Section 860-10-50. ##### [860-20-50-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:3d8c8049a43e0795a184cd871d1c98d0aaf57547034bb28175f7ce7634260013 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [860-20-50-3 through 50-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) address disclosures for [securitizations](https://asc.understandingaccounting.org/glossary/s/#securitization "The process by which financial assets are transformed into securities."), asset-backed financing arrangements, and similar [transfers](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.") that have both of the following characteristics: 1. a The transfer is accounted for as a sale 2. b The transferor has continuing involvement with the [transferred financial assets](https://asc.understandingaccounting.org/glossary/t/#transferred-financial-assets "Transfers of any of the following: An entire financial asset A group of entire financial assets A participating interest in an entire financial asset."). ##### [860-20-50-2A](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-2A) Pending content: yes Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:111590e3987ca5cc9f5f47c3ebce037c8d4e11fb02e680a549b0a41f62053e29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If specific disclosures are required for a particular form of a transferor's continuing involvement by other Topics, the transferor shall provide the information required in paragraphs [860-20-50-3(b) through (cc)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) and [860-20-50-4(a)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4) with a cross-reference to the separate notes to financial statements so a financial statement user can understand the risks retained in the transfer. The entity does not need to provide each specific disclosure required in paragraphs [860-20-50-3(d)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) and [860-20-50-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4) if the disclosure is not required by other Topics and the objectives of paragraphs [860-10-50-3 through 50-4](https://asc.understandingaccounting.org/asc/860/10/#860-10-50-3) are met. For example, if the transferor's only form of continuing involvement is a derivative, the entity shall provide the disclosures required in paragraphs [860-20-50-3(b) through (cc)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) and [860-20-50-4(a)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4) and the disclosures about derivatives required by applicable Topics. In addition, the entity shall evaluate whether the other disclosures in paragraphs [860-20-50-3 through 50-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) are necessary for the entity to meet the objectives in those paragraphs. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If specific disclosures are required for a particular form of a transferor's continuing involvement by other Topics, the transferor shall provide the information required in paragraphs [860-20-50-3(b) through (cc)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) and [860-20-50-4(a)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4) with a cross-reference to the separate notes to financial statements in interim and annual reporting periods so a financial statement user can understand the risks retained in the transfer. The entity does not need to provide each specific disclosure required in paragraphs [860-20-50-3(d)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) and [860-20-50-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4) if the disclosure is not required by other Topics and the objectives of paragraphs [860-10-50-3 through 50-4](https://asc.understandingaccounting.org/asc/860/10/#860-10-50-3) are met. For example, if the transferor's only form of continuing involvement is a derivative, the entity shall provide the disclosures required in paragraphs [860-20-50-3(b) through (cc)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) and [860-20-50-4(a)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4) and the disclosures about derivatives required by applicable Topics. In addition, the entity shall evaluate whether the other disclosures in paragraphs [860-20-50-3 through 50-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) are necessary for the entity to meet the objectives in those paragraphs. ##### [860-20-50-3](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:4fa74bd3d7143da9528149d1d04c027abc424def7dfd45054d0622e3a274ef3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each income statement presented, the entity shall disclose all of the following: 1. a [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 2. b The characteristics of the [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.") including all of the following: 1. 1 A description of the transferor's [continuing involvement](https://asc.understandingaccounting.org/glossary/c/#continuing-involvement "Any involvement with the transferred financial assets that permits the transferor to receive cash flows or other benefits that arise from the transferred financial assets or that obligates the transferor to provide additional cash flows or other assets to any party related to the transfer. For related implementation guidance, see paragraph 860-10-55-79A.") with the transferred financial assets 2. 2 The nature and initial fair value of both of the following: 1. i The asset obtained as proceeds 2. ii The liabilities incurred in the transfer. 3. 3 The gain or loss from sale of transferred financial assets. 3. bb For the initial fair value measurements in item (b)(2), the level within the fair value hierarchy in Topic 820 in which the fair value measurements fall, segregating fair value measurements using each of the following: 1. 1 Quoted prices in active markets for identical assets or liabilities (Level 1) 2. 2 Significant other observable inputs (Level 2) 3. 3 Significant unobservable inputs (Level 3). 4. c For the initial fair value measurements in item (b)(2), the key inputs and assumptions used in measuring the fair value of assets obtained and liabilities incurred as a result of the sale that relate to the transferor's continuing involvement, including quantitative information about all of the following: 1. 1 Discount rates. 2. 2 Expected prepayments including the expected weighted-average life of prepayable financial assets. The weighted-average life of prepayable assets in periods (for example, months or years) can be calculated by multiplying the principal collections expected in each future period by the number of periods until that future period, summing those products, and dividing the sum by the initial principal balance. 3. 3 Anticipated credit losses, including expected static pool losses. If an entity has aggregated transfers during a period in accordance with the guidance beginning in paragraph [860-10-50-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-50-5), it may disclose the range of assumptions. 5. cc For the initial fair value measurements in item (b)(2), the valuation technique(s) used to measure fair value. 6. d Cash flows between a transferor and transferee, including all of the following: 1. 1 [Proceeds](https://asc.understandingaccounting.org/glossary/p/#proceeds "Cash, beneficial interests, servicing assets, derivative instruments, or other assets that are obtained in a transfer of financial assets, less any liabilities incurred.") from new transfers 2. 2 Proceeds from collections reinvested in revolving-period transfers 3. 3 Purchases of previously transferred financial assets 4. 4 Servicing fees 5. 5 Cash flows received from a transferor's interests. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each interim and annual income statement presented, the entity shall disclose all of the following: 1. a [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 2. b The characteristics of the [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.") including all of the following: 1. 1 A description of the transferor's [continuing involvement](https://asc.understandingaccounting.org/glossary/c/#continuing-involvement "Any involvement with the transferred financial assets that permits the transferor to receive cash flows or other benefits that arise from the transferred financial assets or that obligates the transferor to provide additional cash flows or other assets to any party related to the transfer. For related implementation guidance, see paragraph 860-10-55-79A.") with the transferred financial assets 2. 2 The nature and initial fair value of both of the following: 1. i The asset obtained as proceeds 2. ii The liabilities incurred in the transfer. 3. 3 The gain or loss from sale of transferred financial assets. 3. bb For the initial fair value measurements in item (b)(2), the level within the fair value hierarchy in Topic 820 in which the fair value measurements fall, segregating fair value measurements using each of the following: 1. 1 Quoted prices in active markets for identical assets or liabilities (Level 1) 2. 2 Significant other observable inputs (Level 2) 3. 3 Significant unobservable inputs (Level 3). 4. c For the initial fair value measurements in item (b)(2), the key inputs and assumptions used in measuring the fair value of assets obtained and liabilities incurred as a result of the sale that relate to the transferor's continuing involvement, including quantitative information about all of the following: 1. 1 Discount rates. 2. 2 Expected prepayments including the expected weighted-average life of prepayable financial assets. The weighted-average life of prepayable assets in periods (for example, months or years) can be calculated by multiplying the principal collections expected in each future period by the number of periods until that future period, summing those products, and dividing the sum by the initial principal balance. 3. 3 Anticipated credit losses, including expected static pool losses. If an entity has aggregated transfers during a period in accordance with the guidance beginning in paragraph [860-10-50-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-50-5), it may disclose the range of assumptions. 5. cc For the initial fair value measurements in item (b)(2), the valuation technique(s) used to measure fair value. 6. d Cash flows between a transferor and transferee, including all of the following: 1. 1 [Proceeds](https://asc.understandingaccounting.org/glossary/p/#proceeds "Cash, beneficial interests, servicing assets, derivative instruments, or other assets that are obtained in a transfer of financial assets, less any liabilities incurred.") from new transfers 2. 2 Proceeds from collections reinvested in revolving-period transfers 3. 3 Purchases of previously transferred financial assets 4. 4 Servicing fees 5. 5 Cash flows received from a transferor's interests. ##### [860-20-50-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:4a737a59d82eed1501298b67326b0c1390fe19433ed94344e374ebf9b2b7295f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each statement of financial position presented, regardless of when the transfer occurred, an entity shall disclose all of the following: 1. a Qualitative and quantitative information about the transferor's continuing involvement with transferred financial assets that provides financial statement users with sufficient information to assess the reasons for the continuing involvement and the risks related to the transferred financial assets to which the transferor continues to be exposed after the transfer and the extent that the transferor's risk profile has changed as a result of the transfer (including, but not limited to, credit risk, interest rate risk, and other risks), including all of the following: 1. 1 The total principal amount outstanding 2. 2 The amount that has been derecognized 3. 3 The amount that continues to be recognized in the statement of financial position 4. 4 The terms of any arrangements that could require the transferor to provide financial support (for example, liquidity arrangements and obligations to purchase assets) to the transferee or its beneficial interest holders, including both of the following: 1. i A description of any events or circumstances that could expose the transferor to loss 2. ii The amount of the maximum exposure to loss. 5. 5 Whether the transferor has provided financial or other support during the periods presented that it was not previously contractually required to provide to the transferee or its beneficial interest holders, including—when the transferor assisted the transferee or its beneficial interest holders in obtaining support—both of the following: 1. i The type and amount of support 2. ii The primary reasons for providing the support. An entity also is encouraged to disclose information about any liquidity arrangements, guarantees, or other commitments by third parties related to the transferred financial assets that may affect the fair value or risk of the related transferor's interest. 2. aa The entity's accounting policies for subsequently measuring assets or liabilities that relate to the continuing involvement with the transferred financial assets. 3. b The key inputs and assumptions used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement including, at a minimum, but not limited to, quantitative information about all of the following: 1. 1 Discount rates 2. 2 Expected prepayments including the expected weighted-average life of prepayable financial assets (see paragraph [860-20-50-3(c)(2)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3)) 3. 3 Anticipated credit losses, including expected static pool losses, if applicable. Expected static pool losses can be calculated by summing the actual and projected future credit losses and dividing the sum by the original balance of the pool of assets. If an entity has aggregated transfers during a period in accordance with the guidance beginning in paragraph [860-10-50-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-50-5), it may disclose the range of assumptions. 4. c For the transferor's interest in the transferred financial assets, a sensitivity analysis or stress test showing the hypothetical effect on the fair value of those interests (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported under item (b) of this paragraph independently from any change in another key assumption. 5. d A description of the objectives, methodology, and limitations of the sensitivity analysis or stress test. 6. e Information about the asset quality of transferred financial assets and any other financial assets that it manages together with them. This information shall be separated between assets that have been derecognized and assets that continue to be recognized in the statement of financial position. This information is intended to provide financial statement users with an understanding of the risks inherent in the transferred financial assets as well as in other financial assets and liabilities that it manages together with transferred financial assets. For example, information for receivables shall include, but is not limited to both of the following: 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 4. 4 Delinquencies at the end of the period 5. 5 Credit losses, net of recoveries, during the period. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each interim and annual statement of financial position presented, regardless of when the transfer occurred, an entity shall disclose all of the following: 1. a Qualitative and quantitative information about the transferor's continuing involvement with transferred financial assets that provides financial statement users with sufficient information to assess the reasons for the continuing involvement and the risks related to the transferred financial assets to which the transferor continues to be exposed after the transfer and the extent that the transferor's risk profile has changed as a result of the transfer (including, but not limited to, credit risk, interest rate risk, and other risks), including all of the following: 1. 1 The total principal amount outstanding 2. 2 The amount that has been derecognized 3. 3 The amount that continues to be recognized in the statement of financial position 4. 4 The terms of any arrangements that could require the transferor to provide financial support (for example, liquidity arrangements and obligations to purchase assets) to the transferee or its beneficial interest holders, including both of the following: 1. i A description of any events or circumstances that could expose the transferor to loss 2. ii The amount of the maximum exposure to loss. 5. 5 Whether the transferor has provided financial or other support during the periods presented that it was not previously contractually required to provide to the transferee or its beneficial interest holders, including—when the transferor assisted the transferee or its beneficial interest holders in obtaining support—both of the following: 1. i The type and amount of support 2. ii The primary reasons for providing the support. An entity also is encouraged to disclose information about any liquidity arrangements, guarantees, or other commitments by third parties related to the transferred financial assets that may affect the fair value or risk of the related transferor's interest. 2. aa The entity's accounting policies for subsequently measuring assets or liabilities that relate to the continuing involvement with the transferred financial assets. 3. b The key inputs and assumptions used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement including, at a minimum, but not limited to, quantitative information about all of the following: 1. 1 Discount rates 2. 2 Expected prepayments including the expected weighted-average life of prepayable financial assets (see paragraph [860-20-50-3(c)(2)](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3)) 3. 3 Anticipated credit losses, including expected static pool losses, if applicable. Expected static pool losses can be calculated by summing the actual and projected future credit losses and dividing the sum by the original balance of the pool of assets. If an entity has aggregated transfers during a period in accordance with the guidance beginning in paragraph [860-10-50-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-50-5), it may disclose the range of assumptions. 4. c For the transferor's interest in the transferred financial assets, a sensitivity analysis or stress test showing the hypothetical effect on the fair value of those interests (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported under item (b) of this paragraph independently from any change in another key assumption. 5. d A description of the objectives, methodology, and limitations of the sensitivity analysis or stress test. 6. e Information about the asset quality of transferred financial assets and any other financial assets that it manages together with them. This information shall be separated between assets that have been derecognized and assets that continue to be recognized in the statement of financial position. This information is intended to provide financial statement users with an understanding of the risks inherent in the transferred financial assets as well as in other financial assets and liabilities that it manages together with transferred financial assets. For example, information for receivables shall include, but is not limited to both of the following: 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 4. 4 Delinquencies at the end of the period 5. 5 Credit losses, net of recoveries, during the period. ##### [860-20-50-4A](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4A) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:151ecc406f92cbbe2f05b1546f68e99599313238eef822de015da163813acc06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirement in paragraph [860-20-50-4D](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4D) applies to transactions accounted for as a sale that comprise both of the following: 1. a A transfer of financial assets to a transferee 2. b An agreement entered into in contemplation of the initial transfer with the transferee that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. For purposes of this paragraph, an agreement entered into in contemplation of the initial transfer refers to transactions that depend on the execution of one another and that are entered into for the same business purpose. ##### [860-20-50-4B](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4B) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:33badc795e48e0d812e5437d6be8e33963d7fe75e4b396ca33271729f9b0f26d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The transactions described in paragraph [860-20-50-4A](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4A) include both of the following types: 1. a Transfers of financial assets with an agreement to repurchase the transferred financial asset (or a substantially-the-same financial asset) before maturity at a fixed or determinable price that will be settled in a form other than the return of the transferred financial asset (for example, the transaction is cash-settled) 2. b Transfers of financial assets with an agreement that requires that the transferor retain substantially all of the exposure to the economic return on the transferred financial asset (for example, a sale with a total return swap). ##### [860-20-50-4C](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4C) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:1e5db2913e460a346b5388ec0cfa925da117f454c5319504575efadc4b7adbec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following items are not subject to the requirements in paragraph [860-20-50-4D](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4D): 1. a Transfers of financial assets with an agreement to purchase another financial asset that is not substantially the same as the initial transferred financial asset in accordance with paragraph [860-10-40-24(a)](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-24), for example, a dollar roll transaction accounted for as a sale because the financial asset to be purchased is not substantially the same as the initially transferred financial asset in accordance with paragraph [860-10-40-24(a)](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-24) 2. b Transactions described in paragraph [860-20-50-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-2) that are subject to the disclosures in paragraphs [860-20-50-3 through 50-4](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-3) . ##### [860-20-50-4D](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4D) Pending content: yes Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:c5be989f206ef2152e41773cd7a6ff7a1f4592cb5237e378ec8821af34ac6460 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To provide an understanding of the nature of the transactions, the transferor's continuing exposure to the transferred financial assets, and the presentation of the components of the transaction in the financial statements, an entity shall disclose the following for outstanding transactions at the reporting date that meet the scope guidance in paragraphs [860-20-50-4A through 50-4B](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4A) by type of transaction (for example, [repurchase agreement](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement "An agreement under which the transferor (repo party) transfers a financial asset to a transferee (repo counterparty or reverse party) in exchange for cash and concurrently agrees to reacquire that financial asset at a future date for an amount equal to the cash exchanged plus or minus a stipulated interest factor. Instead of cash, other securities or letters of credit sometimes are exchanged. Some repurchase agreements call for repurchase of financial assets that need not be identical to the financial assets transferred."), securities lending transaction, and sale and total return swap) (except for those transactions that are excluded from the scope, as described in paragraph [860-20-50-4C](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4C)): 1. a The carrying amount of assets derecognized as of the date of derecognition: 1. 1 If the amounts that have been derecognized have changed significantly from the amounts that have been derecognized in prior periods or are not representative of the activity throughout the period, a discussion of the reasons for the change shall be disclosed. 2. b The amount of gross cash proceeds received by the transferor for the assets derecognized as of the date of derecognition. 3. c Information about the transferor's ongoing exposure to the economic return on the transferred financial assets: 1. 1 As of the reporting date, the fair value of assets derecognized by the transferor. 2. 2 Amounts reported in the statement of financial position arising from the transaction (for example, the carrying value or fair value of forward repurchase agreements or swap contracts). To the extent that those amounts are captured in the derivative disclosures presented in accordance with paragraph [815-10-50-4B](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4B), an entity shall provide a cross-reference to the appropriate line item in that disclosure. 3. 3 A description of the arrangements that result in the transferor retaining substantially all of the exposure to the economic return on the transferred financial assets and the risks related to those arrangements. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)To provide an understanding of the nature of the transactions, the transferor's continuing exposure to the transferred financial assets, and the presentation of the components of the transaction in the financial statements, an entity shall disclose the following for outstanding transactions at the interim and annual reporting dates that meet the scope guidance in paragraphs [860-20-50-4A through 50-4B](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4A) by type of transaction (for example, [repurchase agreement](https://asc.understandingaccounting.org/glossary/r/#repurchase-agreement "An agreement under which the transferor (repo party) transfers a financial asset to a transferee (repo counterparty or reverse party) in exchange for cash and concurrently agrees to reacquire that financial asset at a future date for an amount equal to the cash exchanged plus or minus a stipulated interest factor. Instead of cash, other securities or letters of credit sometimes are exchanged. Some repurchase agreements call for repurchase of financial assets that need not be identical to the financial assets transferred."), securities lending transaction, and sale and total return swap) (except for those transactions that are excluded from the scope, as described in paragraph [860-20-50-4C](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4C)): 1. a The carrying amount of assets derecognized as of the date of derecognition: 1. 1 If the amounts that have been derecognized have changed significantly from the amounts that have been derecognized in prior periods or are not representative of the activity throughout the period, a discussion of the reasons for the change shall be disclosed. 2. b The amount of gross cash proceeds received by the transferor for the assets derecognized as of the date of derecognition. 3. c Information about the transferor's ongoing exposure to the economic return on the transferred financial assets: 1. 1 As of the reporting date, the fair value of assets derecognized by the transferor. 2. 2 Amounts reported in the statement of financial position arising from the transaction (for example, the carrying value or fair value of forward repurchase agreements or swap contracts). To the extent that those amounts are captured in the derivative disclosures presented in accordance with paragraph [815-10-50-4B](https://asc.understandingaccounting.org/asc/815/10/#815-10-50-4B), an entity shall provide a cross-reference to the appropriate line item in that disclosure. 3. 3 A description of the arrangements that result in the transferor retaining substantially all of the exposure to the economic return on the transferred financial assets and the risks related to those arrangements. ##### [860-20-50-5](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-5) Pending content: yes Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:9a3c2bdfa177662cdf798c77bd32af1fd6b83308ab7d0ad06684ca082a9b3974 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregate amount of gains or losses on sales of loans or trade receivables (including adjustments to record loans held for sale at the lower of amortized cost basis or fair value) shall be presented separately in the financial statements or disclosed in the notes to financial statements. See Topic 310 on receivables and Topic 326 on measurement of credit losses for a full discussion of disclosure requirements for loans and trade receivables. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, the aggregate amount of gains or losses on sales of loans or trade receivables (including adjustments to record loans held for sale at the lower of amortized cost basis or fair value) shall be presented separately in the financial statements or disclosed in the notes to financial statements. See Topic 310 on receivables and Topic 326 on measurement of credit losses for a full discussion of disclosure requirements for loans and trade receivables. ##### [860-20-50-6](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:42.500Z to 2026-09-10T02:06:42.500Z Record version: sha256:84920fd220d62dab80b00f42cc199933208a837906de22d1089f8ba00911848d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-20-50-6 through 50-9 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-6). Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:8e864779a0c6656a18094dc6023ddb9f355ce5ae485dcf3bff6a62eae347fe13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/860/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [860-20-55-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:19a8e1a7e1979a9fc1fdccf26c4daf450e815049ab3a5195771f51bfa63a5e63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is implementation guidance related to the guidance in this Subtopic, specifically: 1. a [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 2. b Estimating the fair value of certain beneficial interests 3. c Accrued interest receivable 4. d Options embedded in transferred securities 5. e Credit risk associated with transferred assets 6. f [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 a bond purchased at a premium 7. g Sales or [securitizations](https://asc.understandingaccounting.org/glossary/s/#securitization "The process by which financial assets are transformed into securities.") of lease receivables 8. h [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 9. i Forward contracts in [revolving-period securitizations](https://asc.understandingaccounting.org/glossary/r/#revolving-period-securitizations "Securitizations in which receivables are transferred at the inception and also periodically (daily or monthly) thereafter for a defined period (commonly three to eight years), referred to as the revolving period. During the revolving period, the special-purpose entity uses most of the cash collections to purchase additional receivables from the transferor on prearranged terms.") 10. j Subsequent measurement of interests issued in securitization transactions 11. k [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 through a removal-of-accounts provision. ##### [860-20-55-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:07260ef8a8ea607f07bfbd4b48db420e005133f5e542136cd75aec75e30b0db5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-20-55-2 through 55-15 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-2). ##### [860-20-55-16](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:9363053b852705354dc1fae1519b063a61007481f72d5347e5527ebfa08da75d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Trust liquidation methods that allocate receipts of principal or interest between beneficial interest holders and transferors in proportions different from their stated percentage of ownership interests do not affect whether the transferor should obtain sale accounting and [derecognize](https://asc.understandingaccounting.org/glossary/d/#derecognize "Remove previously recognized assets or liabilities from the statement of financial position.") those transferred assets, assuming the trust is not required to be consolidated by the transferor. However, both turbo and bullet provisions in securitization structures (as discussed in paragraph [860-10-05-3](https://asc.understandingaccounting.org/asc/860/10/#860-10-05-3)) should be taken into consideration in determining the fair values of assets obtained by the transferor and transferee. ##### [860-20-55-17](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:abe79b4fa9f1090a2ee6ef0f51c10f2dbd28fe922867d2c8a9d0f088a1853f69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The receivables for accrued fee and finance charge income on an investors' portion of the transferred credit card receivables, whether billed but uncollected or accrued but unbilled, are commonly referred to as accrued interest receivable. The following addresses how the accrued interest receivable related to securitized and sold receivables should be accounted for and reported under this Subtopic. This guidance applies to credit card securitizations as well as other kinds of securitizations. ##### [860-20-55-18](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:3c3afdbb99b573bdb2bdcafda337b1dfacdbfe2386027014332f8c0892aa9521 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The right to receive the accrued interest receivable, if and when collected, is transferred to the securitization trust. Generally, if a securitization transaction meets the criteria for sale treatment and the accrued interest receivable is subordinated either because the asset has been isolated from the transferor (see paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5)) or because of the operation of the cash flow distribution (or waterfall) through the securitization trust, the total accrued interest receivable should be considered to be one of the components of the sale transaction. Therefore, under the circumstances described, the accrued interest receivable asset should be accounted for as a transferor's interest.It is inappropriate to report the accrued interest receivable related to securitized and sold receivables as loans receivable or other terminology implying that it has not been subordinated to the senior interests in the securitization. ##### [860-20-55-19](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:a74876a4fbdbf0a060ee5054723477b5bf3ac607d5324050d01d4019d9fd3237 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. While, under the circumstances described, the accrued interest receivable is a transferor's interest, it is not required to be subsequently measured like an investment in debt securities classified as available for sale or trading under Topic 320 or the Transfers and Servicing Topic because the accrued interest receivable cannot be contractually prepaid or settled in such a way that the owner would not recover substantially all of its recorded investment. Entities should follow existing applicable accounting standards, including Topic 326 on measurement of credit losses, in subsequent accounting for the accrued interest receivable asset. ##### [860-20-55-20](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:cb77561fc1357055aea5c08943c9e049e4906d0dd7a11672ea04b4ccdb1feb6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses transactions that involve the sale of a marketable security to a third-party buyer, with the buyer's having an option to put the security back to the seller at a specified future date or dates for a fixed price. Because of the put option, the seller generally receives a premium price for the security. ##### [860-20-55-21](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:ee183c12568c1cf0a08a2cc72aa8dd7fc5ae4e910a93bbc6a621f7b2527ac1f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the transfer is accounted for as a sale, a put option that enables the holder to require the writer of the option to reacquire for cash or other assets a marketable security or an equity instrument issued by a third party should be accounted for as a derivative by both the holder and the writer, provided the put option meets the definition of a derivative in paragraph [815-10-15-83](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-83) (including meeting the net settlement requirement, which may be met if the option can be net settled in cash or other assets or if the asset required to be delivered is readily convertible to cash). If multiple put options exist, recognition of the multiple put options as liabilities, and initial measurement at fair value, are required. ##### [860-20-55-22](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:980421ec86cf12e7c917835f7c0164dd4a40f83e5e88b18e13ad6c42c8952321 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A put option that is issued as part of a transfer being accounted for as a sale that is not accounted for as a derivative under Subtopic 815-10 would be considered a guarantee under paragraph [460-10-55-2(b)](https://asc.understandingaccounting.org/asc/460/10/#460-10-55-2) and would be subject to its initial recognition, initial measurement, and disclosure requirements. If the written put option is accounted for as a derivative under Subtopic 815-10 by the seller-transferor, then the put option would be subject to only the disclosure requirements of Topic 460. ##### [860-20-55-23](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:df50740d6973301050fe0e10a0d62a4f05065410eeddef39be9d1d552c1e23e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the transaction is accounted for as a secured borrowing under Subtopic 860-30, any difference between the sale proceeds and the put price shall be accrued as interest expense, and any impairment of the underlying security would generally not be recognized. The difference between the original sale price and the put price should be amortized over the period to the first date the securities are eligible to be put back. If the transfer is accounted for as a secured borrowing, the put option falls under paragraph [815-10-15-63](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-63), which provides a scope exception for a derivative instrument (such as the put option) that serves as an impediment to sale accounting under Subtopic 860-10. The guidance in paragraph [815-10-55-41](https://asc.understandingaccounting.org/asc/815/10/#815-10-55-41) may also be relevant. ##### [860-20-55-24](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:420f45e27e6da8023d925b930274855aaf488f340655dcdf71de3511d50834a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A transferor may hold some portion of the credit risk associated with a transfer of an entire [financial asset](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.") or group of entire financial assets. For example, a transferor may incur a liability to reimburse the [transferee](https://asc.understandingaccounting.org/glossary/t/#transferee "An entity that receives a financial asset, an interest in a financial asset, or a group of financial assets from a transferor."), up to a certain limit, for a failure of debtors to pay when due (a recourse liability). In that circumstance, a liability should be separately recognized and initially measured at fair value. That liability should be subsequently measured according to guidance in other Topics for measuring similar liabilities. In other circumstances, a transferor may provide credit enhancement through its ownership of a beneficial interest in the [transferred financial assets](https://asc.understandingaccounting.org/glossary/t/#transferred-financial-assets "Transfers of any of the following: An entire financial asset A group of entire financial assets A participating interest in an entire financial asset.") if that beneficial interest is not paid until the other investors in the transferred financial assets are paid, thereby resulting in the transferor absorbing much of the related credit risk. As a result, the beneficial interests that are obtained by the transferor should be initially recognized according to paragraph [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1). ##### [860-20-55-24A](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-24A) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:c424b0fde532c176267845e5a019c6770f65f43bbf4948c22b56a7a523b94c3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the transfer does not consist of an entire financial asset or group of entire financial assets, the transferred financial asset must meet the definition of a [participating interest](https://asc.understandingaccounting.org/glossary/p/#participating-interest "Paragraph 860-10-40-6A defines the term participating interest."). Paragraph [860-10-40-6A(c)(4)](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-6A) states that, to meet that definition, participating interest holders shall have no recourse to the transferor (or its [consolidated affiliates](https://asc.understandingaccounting.org/glossary/c/#consolidated-affiliate "An entity whose assets and liabilities are included in the consolidated, combined, or other financial statements being presented.") included in the financial statements being presented or its [agents](https://asc.understandingaccounting.org/glossary/a/#agent "A party that acts for and on behalf of another party. For example, a third-party intermediary is an agent of the transferor if it acts on behalf of the transferor.")) or to each other, other than any of the following: 1. a Standard representations and warranties 2. b Ongoing contractual obligations to service the entire financial asset and administer the transfer contract 3. c Contractual obligations to share in any set-off benefits received by any participating interest holder. That recourse would result in the transfer being accounted for as a secured borrowing under Subtopic 860-30. ##### [860-20-55-25](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:d37a51a389cbd5cd4449090e3807786783426f91d9924d1e5d23db291a928729 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume an entity transfers a bond to an unconsolidated entity for cash and beneficial interests. When the transferor purchased the bond, it paid a premium for it (or bought it at a discount), and that premium (or discount) was not fully amortized (or accreted) at the date of the transfer. In other words, the carrying amount of the bond included a premium (or discount) at the date of the transfer. If the transfer of the bond is accounted for as a secured borrowing under Subtopic 860-30, the transferor would continue to amortize (or accrete) the premium (or discount) because paragraph [860-30-25-2](https://asc.understandingaccounting.org/asc/860/30/#860-30-25-2) requires that the transferor continue to report the transferred financial assets in its statement of financial position with no change in their measurement (that is, basis of accounting). If the transfer of the bond satisfies the conditions to be accounted for as a sale, any beneficial interests received as proceeds would be initially recognized at fair value. As a result, the previously existing premium (or discount) would not continue to be amortized (or accreted); rather, the unamortized (or nonaccreted) amount would be included in the calculation of the gain (or loss) as of the transfer date. ##### [860-20-55-26](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:63b8e6c8df93cfa3c1c4b6719569ecdf7c6ae3fa80d48ca6e6ddcc7d3dd73697 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A transferor of lease receivables shall allocate the gross investment in receivables between [lease payments](https://asc.understandingaccounting.org/glossary/l/#lease-payments "See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor."), residual values guaranteed at commencement, and residual values not guaranteed at commencement using the individual carrying amounts of those components at the date of transfer. Those transferors also shall record a servicing asset or liability in accordance with Subtopic 860-50, if appropriate. ##### [860-20-55-27](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:30a070285d87e8844759742e2a31750ffaa3158d72bb756c53be95a34e0a3d21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [860-10-55-6](https://asc.understandingaccounting.org/asc/860/10/#860-10-55-6) for further discussion of lease receivables. ##### [860-20-55-28](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:3dc246ace89043d72096fcf8a1f74631a5c0691c724e791247bc6f0a6a43768c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). ##### [860-20-55-29](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:ade6ca33ec77152c6fc9ac404ca568bf71ef316e007af679fa4caf892fbbed91 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The requirement that all financial assets obtained and liabilities incurred by the transferor of a securitization that qualifies as a sale shall be recognized and measured as provided in this Subtopic includes the implicit forward contract to sell additional financial assets during a revolving period. Such a forward contract may become valuable or onerous to the transferor as interest rates and other market conditions change. ##### [860-20-55-30](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:08306cfa03b2bec7707fa2e9a494f253895e62f5c3b67bf965c06050963b058e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The value of the forward contract implicit in a revolving-period securitization arises from the difference between the agreed-upon rate of return to investors on their beneficial interests in the trust and current market rates of return on similar investments. For example, if the agreed-upon annual rate of return to investors in a trust is 6 percent, and later market rates of return for those investments increased to 7 percent, the forward contract's value to the transferor (and burden to the investors) would approximate the present value of 1 percent of the amount of the investment for each year remaining in the revolving structure after the receivables already transferred have been collected. If a forward contract to sell receivables is entered into at the market rate, its value at inception may be zero. Changes in the fair value of the forward contract are likely to be greater if the investors receive a fixed rate than if the investors receive a rate that varies based on changes in market rates. ##### [860-20-55-31](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:cff29a4b290e129408e07abb1d2eb011cd5ac7acae14145bdb2ec24f62ecf075 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gain or loss recognition for revolving-period receivables sold to a securitization trust is limited to receivables that exist and have been sold. ##### [860-20-55-32](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:539cadac1bd379bd9abf052710d4fcb9780a1d491b22f540f504dfec8497839e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is implementation guidance related to the subsequent measurement of various types of financial assets subject to prepayment, specifically: 1. a Instruments that can be prepaid or otherwise settled in such a way that the holder would not recover substantially all of the recorded investment 2. b Loan that can be prepaid or otherwise settled in such a way that the holder would not recover substantially all of the recorded investment at initial acquisition 3. c Classification of a residual tranche in a securitization as held to maturity. ##### [860-20-55-33](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:c8abbf304c8223c89aaa4ffff4ed58a2510f6a188bee75726bbfdb8cab47ec03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following discusses whether the following types of instruments are subject to the subsequent measurement guidance in paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2): 1. a A [financial asset](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 is not a debt security denominated in a foreign currency 2. b A note for which the repayment amount is indexed to the creditworthiness of a party other than the issuer. ##### [860-20-55-34](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:ced6ce616dbbf8ce0d64871349cc90ac30dbea7ea37586f9b68feaa46c0964ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investing in a financial asset that is denominated in a foreign currency often exposes an entity to foreign currency exchange rate risk; however, that risk is not addressed in paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2). ##### [860-20-55-35](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:b035c83f8150c340cb4ab939104e63e62df7c1aee040bd18e9949df59e6c7843 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A financial asset that is not a debt security under Topic 320 is not subject to the requirements of paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) because it is denominated in a foreign currency. ##### [860-20-55-36](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:74dcf89731e5b14a57f3bf681c68ba871880d4d62ff5d84361ab24896ebfeb8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity is not required to measure such an investment like a debt security under paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) unless it has provisions that allow it to be contractually prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment, as denominated in the foreign currency. For example, an investment denominated in deutsche marks by an entity with a U.S. dollar functional currency would not be subject to that paragraph if the contract requires that substantially all of the invested deutsche marks be repaid. ##### [860-20-55-37](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-37) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:e802bf02fb6f867ae589d5a0cd2869f177ea61f695c7a412b1eef758e63ed44b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A note for which the repayment amount is indexed to the creditworthiness of a party other than the issuer is subject to the provisions of paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) because the event that might cause the holder to receive less than substantially all of its recorded investment is based on a contractual provision, not on a default by the borrower (that is, the issuer of the note). That contractual provision indexes the payment terms of the note to a default by a third party unrelated to the issuer of the note. If that note is within the scope of Subtopic 815-10 the guidance of paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) would not apply. ##### [860-20-55-38](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-38) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:ba145bdaa2882c31cac0c9b027fdd7aac216aca32fab5cc8e29896163db96036 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A loan (that is not a debt security) that when initially obtained could be contractually prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment may be reclassified as held for investment later in its life (that is, at a date that is so close to the financial asset's maturity that the holder would recover substantially all of its recorded investment even if it was prepaid). That is, the loan would no longer be required to be measured in accordance with the guidance in paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2)if both of the following conditions are met: 1. a It would no longer be possible for the holder not to recover substantially all of its recorded investment upon contractual prepayment or settlement. 2. b The conditions for amortized cost accounting are met (for example, paragraphs [310-10-35-47](https://asc.understandingaccounting.org/asc/310/10/#310-10-35-47) and [948-310-25-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-25-1)). However, any unrealized holding gain or loss arising under the available-for-sale classification that exists at the date of the reclassification would continue to be reported in other comprehensive income but should be amortized over the remaining life of the loan as an adjustment of yield. (The loan would not be classified as held to maturity because under Topic 320 only debt securities may be classified as held to maturity.) ##### [860-20-55-39](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-39) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:d29f1d5b648249fe8501061e3cea1cdc57293e157dcf71902301da8eeaf5e210 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whether a residual tranche debt security in a securitization of financial assets (for example, receivables) using a securitization entity can be classified as held to maturity depends on the facts and circumstances. If the contractual provisions of the residual tranche debt security provide that the residual tranche can contractually be prepaid or otherwise settled in such a way that the holder would not recover substantially all of its recorded investment, paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2) precludes the residual tranche debt security from being accounted for as held to maturity. In contrast, if the only way that the holder of the residual tranche would not recover substantially all of its recorded investment would be in response to a default by the borrower (debtor), then a held-to-maturity classification is acceptable if the conditions specified for a held-to-maturity classification in paragraphs [320-10-25-1(c)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-1) and [320-10-25-5(a)](https://asc.understandingaccounting.org/asc/320/10/#320-10-25-5) have been met. ##### [860-20-55-40](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-40) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:d02a33ec74001178ab3f24eac6a63516bed70a3c1988fbf99aa6305e31bb67ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance addresses implementation of paragraph [860-20-25-11](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-11). Under that paragraph's guidance, if the removal-of-accounts provision is not exercised, the financial assets are recognized because the transferor now can unilaterally cause the transferee to return those specific financial assets and, therefore, the transferor once again has effective control over those transferred financial assets (see paragraphs [860-20-25-8 through 25-10](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-8) ). ##### [860-20-55-41](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-41) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:70e315870cfeb6469170413bdcb748823060f3179997f517352c0394e9b3d02e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Similarly, when a contingency related to a transferor's contingent right has been met, the transferor generally must account for the repurchase of a specific subset of the financial assets transferred to and held by the entity. When the contingency has been met, the transferor has a unilateral right to purchase a specific transferred financial asset. At that point, the transferor must determine whether the unilateral right to purchase a specific transferred financial asset provides the transferor with a more-than-trivial benefit. If the unilateral right to purchase a specific transferred financial asset provides the transferor with a more-than-trivial benefit, the transfer fails the criterion in paragraph [860-10-40-5(c)(2)](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5). The transferor must perform this analysis regardless of whether it intends to exercise its call option. ##### [860-20-55-42](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-42) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:f26c779a5fe5f965f3b9edad59392ed0fda7fd8f227d7e601e2c9be335dbaf06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although this guidance uses removal-of-accounts provisions as an example, the guidance is not limited to removal-of-accounts provisions. Contingent rights can arise in many other situations. See paragraphs [860-10-55-39 through 55-42](https://asc.understandingaccounting.org/asc/860/10/#860-10-55-39) for more information. #### Illustrations ##### [860-20-55-43](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-43) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:d5e0c921525caaf9865d8596ab0fe5453877a2dc14c9d4c39c460d8746bcda9c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1) and [860-20-30-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-30-1). Entity A transfers entire loans with a carrying amount of $1,000 to an unconsolidated securitization entity and receives proceeds with a fair value of $1,030, and the transfer is accounted for as a sale. Entity A undertakes no obligation to service and assumes a limited recourse obligation to repurchase delinquent loans. Entity A agrees to provide the transferee a return at a variable rate of interest even though the contractual terms of the loan are fixed rate in nature (that provision is effectively an interest rate swap). ##### [860-20-55-44](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-44) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:101f900423cde2a7a5315dd77b1e43f88f9631399491c7a80ee99ba4381976a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions. - ![](https://asc.understandingaccounting.org/asc-img/GUID-303D7D6C-1FF0-4687-A95F-7AB67EA5ABE2-low.gif) Fair Values Cash proceeds " $1,050 " Interest rate swap asset 40 Recourse obligation 60 Net Proceeds Cash received " $1,050 " Plus: Interest rate swap asset 40 Less: Recourse obligation (60) Net proceeds " $1,030 " Gain on Sale Net proceeds " $1,030 " Less: Carrying amount of loans sold " (1,000)" Gain on sale $30 ##### [860-20-55-45](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-45) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:bcdc68b259520559b16a2f67d77fed227394f631013351dc71a5af9a5581615e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following journal entry is made by Entity A. - ![](https://asc.understandingaccounting.org/asc-img/GUID-5E5C4FFE-2512-462B-804B-0D750D74D2EF-low.gif) Journal Entry Cash " $1,050 " Interest rate swap asset 40 Loans " $1,000 " Recourse obligation 60 Gain on sale 30 To record transfer ##### [860-20-55-46](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-46) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:b288a693094932b06fa437a944ce4e51c38c31cc3b57217e16ca94cdf95f18bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1). This Example assumes the conditions for a sale in paragraph [860-10-40-5](https://asc.understandingaccounting.org/asc/860/10/#860-10-40-5) are met. Entity B transfers a nine-tenths participating interest in a loan with a fair value of $1,100 and a carrying amount of $1,000, and the transfer is accounted for as a sale. The servicing contract has a fair value of zero because Entity B estimates that the benefits of servicing are just adequate to compensate it for its servicing responsibilities. ##### [860-20-55-47](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-47) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:87dfa873ee20d0894893954941f16ea3e4a8083db7fc7a8766dfa5033d719ec0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions. - ![](https://asc.understandingaccounting.org/asc-img/GUID-5DE2DCDA-CE45-48B8-A48C-267EB6A60E22-low.gif) Fair Values "Cash proceeds for nine-tenths participating interest sold ($1,100 x 9/10) " $990 "One-tenth participating interest that continues to be held by the transferor ($1,100 x 1/10) " 110 - ![](https://asc.understandingaccounting.org/asc-img/GUID-D72C8C1B-E90B-4CD2-AAB5-62933372D724-low.gif) Allocated Carrying Amount Based on Relative Fair Values Fair Value Percentage of Total Fair Value Allocated Carrying Amount Nine-tenths participating interest sold $990 90 $900 One-tenth participating interest that continues to be held by the transferor 110 10 100 Total $1,100 100 $1,000 - ![](https://asc.understandingaccounting.org/asc-img/GUID-CE8E7541-34B8-4F4A-A0F3-4CF5F12B43CF-low.gif) Gain on Sale Net proceeds $990 Less: Carrying amount of loans sold (900) Gain on sale $90 ##### [860-20-55-48](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-48) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:3f1277e74ef3bcfd7a536594c90c5f81e452563b4a33d4428028f054f6e2247b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following journal entry is made by Entity B. - ![](https://asc.understandingaccounting.org/asc-img/GUID-9C1EBA41-258D-4725-B617-FB414FC5F0BD-low.gif) Journal Entry Cash $990 Loans $900 Gain on sale 90 To record transfer ##### [860-20-55-49](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-49) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:2a7f82dae7666020268de7467c19695fe115a4768030ddef01e46df84e1dfb5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-20-55-49 through 55-57 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-49). ##### [860-20-55-58](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-58) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:9988b489e2a265df132953f1dfe0a7f9662779461f629e5fd193872ab6ec5af9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [860-20-25-1](https://asc.understandingaccounting.org/asc/860/20/#860-20-25-1)At the beginning of the second year in a 10-year sales-type lease, Entity E transfers for $505 a nine-tenths participating interest in the lease receivable to an independent third party, and the transfer is accounted for as a sale. Entity E retains a one-tenth participating interest in the lease receivable and a 100 percent interest in the unguaranteed residual asset, which is not subject to the requirements of this Subtopic as discussed in paragraph [860-10-55-6](https://asc.understandingaccounting.org/asc/860/10/#860-10-55-6) because it is not a financial asset and, therefore, is excluded from the analysis of whether the transfer of the nine-tenths participating interest in the lease receivable meets the definition of a participating interest. The servicing asset has a fair value of zero because Entity E estimates that the benefits of servicing are just adequate to compensate it for its servicing responsibilities. The carrying amounts and related gain computation are as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-FB58F22A-04AB-412A-A671-C72142061BEA-low.gif) Carrying Amounts Lease receivable $540 Unearned income related to lease receivable 370 Gross investment in lease receivable 910 Unguaranteed residual asset $30 Unearned income related to unguaranteed residual asset 60 Gross investment in unguaranteed residual asset 90 Total gross investment in lease receivable " $1,000 " Gain on Sale Cash received $505 Nine-tenths of carrying amount of gross investment in lease receivable $819 Nine-tenths of carrying amount of unearned income related to lease receivable 333 Net carrying amount of lease receivable sold 486 Gain on sale $19 ##### [860-20-55-59](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-59) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:a1507049ef3c0d82b440107e2e26b355349e6a2694670bb25d31a694f3692805 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following journal entry is made by Entity E. - ![](https://asc.understandingaccounting.org/asc-img/GUID-FF66109F-F224-46F2-92D2-9C62F4FB3BDC-low.gif) Journal Entry Cash $505 Unearned income 333 Lease receivable $819 Gain on sale 19 To record sale of nine-tenths of the lease receivable at the beginning of Year 2 ##### [860-20-55-60](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-60) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:102c012c0cdcbe898391834a04d010dff590eda099c8af90b4d2e622794db7ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-20-55-60 through 55-82 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-60). ##### [860-20-55-83](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-83) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:e41f36a0fc429352644b1a5d084e449423c68489f372f405798e0ae2b1eb0060 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the accounting for a sale of loans in their entirety by a transferor to an unconsolidated entity and the subsequent accounting for the transferor's interest and a servicing asset. In this Example, the transferor's interest is an [interest-only strip](https://asc.understandingaccounting.org/glossary/i/#interest-only-strip "A contractual right to receive some or all of the interest due on a bond, mortgage loan, collateralized mortgage obligation, or other interest-bearing financial asset.") that is accounted for at fair value in the same manner as an available-for-sale security under paragraph [860-20-35-2](https://asc.understandingaccounting.org/asc/860/20/#860-20-35-2). ##### [860-20-55-84](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-84) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:bebfe3f58af1b799a515ba71fdabc4966a6a6fdb1fa4a5a2788bc156c1880bb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions. ##### [860-20-55-85](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-85) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:c2b7f59115eef41747dc4fc156651d9457ddb1630744a5feb2d5170ffeedaa04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 2, 20X1, Entity I (the transferor) originates $1,000 of loans, yielding 10.5 percent interest income for their estimated life of 9 years. Entity I later transfers the loans in their entirety to an unconsolidated entity and accounts for the transfer as a sale. Entity I receives as proceeds $1,000 cash plus a beneficial interest that entitles it to receive 1 percent of the contractual interest (an interest-only strip receivable). Entity I will continue to service the loans for a fee of 100 basis points. The guarantor, a third party, receives 50 basis points as a guarantee fee. ##### [860-20-55-86](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-86) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:20d61847941cfde82c77102b00e986cc7df9942cfaab6b262e182bfd32d4e95a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the date of transfer, the following facts are assumed. 1. a The fair value of the servicing asset is $40. 2. b The total fair value of the loans including servicing is $1,040. 3. c The fair value of the interest-income strip receivable is $60. ##### [860-20-55-87](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-87) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:19ed2e4da05e9d122418fb933c8ab74636bc8f35892b687b0c51a61aca3c08a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On December 1, 20X1, an event occurs that results in the transfer not meeting the conditions for sale accounting. The fair value of the originally transferred financial assets that remain outstanding in the entity on that date is $929. The fair value of Entity I's interest (in the form of an interest-only strip) on that date is $58. The fair value of the servicing asset on that date is $38. The guarantee that was entered into by the entity does not trade with the underlying financial assets. The fees on this guarantee will be paid as part of the cash waterfall. ##### [860-20-55-88](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-88) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:954adb7bc7911bf490dd9bd717e3e9ebe2c9bd0da6a68eacb81f07e42f6d360a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All cash flows from the financial assets transferred to the trust are initially sent directly to the trust and then distributed in order of priority. The priority of payments in the cash waterfall is as follows: servicing fees, guarantees, amounts due to outside beneficial interest holders, and amounts due to Transferor's beneficial interest. ##### [860-20-55-89](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-89) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:e8f8cfa3393887c917e67dcf16e60aae572e510033b91cdfba3c0a96ee29a5b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). ##### [860-20-55-90](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-90) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:73438457e03d17eab636a398af3b1a168eb76b96c21f429fc70ecc405d0bc965 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following journal entries would be made. - January 2, 20X1 - ![](https://asc.understandingaccounting.org/asc-img/GUID-9704F8AD-DE2B-407C-B6F0-F6AE0A3F1B9D-low.gif) Cash $1000 Transferor's interest (available for sale) 60 Servicing asset 40 Loans $1000 Gain on sale 100 To record the sale of the assets and to recognize Entity I's interest and a servicing asset at fair value. - December 1, 20X1 - ![](https://asc.understandingaccounting.org/asc-img/GUID-283BCED7-C67C-4DA4-A1BC-9507C3B8B0A3-low.gif) Other comprehensive income $2 Entity I's interest (available for sale) $2 To subsequently measure Entity I's interest in the same manner as an available-for-sale security. ##### [860-20-55-91](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-91) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:6c4280b330a3a7bd2b69e698c49151126e3568e0de02f8b0bec185f25c089ae6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the accounting entry to be made after the event occurs that results in the transfer not meeting the conditions for sale accounting. - December 1, 20X1 - ![](https://asc.understandingaccounting.org/asc-img/GUID-F9E2AD18-1682-44E0-A2F8-D699AB17ADF2-low.gif) Loans $929 Due to Securitization Entity $929 To recognize the previously sold loans on Entity I's books along with the obligation to pass the cash flows associated with those loans to Securitization Entity. ##### [860-20-55-92](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-92) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:b27a1f67f733858a67684faf663ba1b42b8ef28978827f65dca8b26851b3d74b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity I would account for the rerecognized financial assets and transferor's interests as follows: 1. a Entity I would continue to account for transferor's interests (in accordance with paragraph [320-10-35-1](https://asc.understandingaccounting.org/asc/320/10/#320-10-35-1)) at fair value with changes in fair value recognized in other comprehensive income. 2. b Entity I would account for the loans at cost plus accrued interest in accordance with Subtopic 310-20. ##### [860-20-55-93](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-93) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:0b0244cb0e62f4919594ddd2b63ff595d2e5d9d680986622ca92649611fde823 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-20-55-93 through 55-107 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-93). ##### [860-20-55-108](https://asc.understandingaccounting.org/asc/860/20/#860-20-55-108) Pending content: no Source downloaded (UTC): 2026-09-10T02:06:46.480Z to 2026-09-10T02:06:46.480Z Record version: sha256:4a2aa404a742f05596e9c262a1976f4ebf3496748ac20db42dc90b992a5fedae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates one approach for satisfying the quantitative disclosure requirements in paragraph [860-20-50-4D](https://asc.understandingaccounting.org/asc/860/20/#860-20-50-4D). - ![](https://asc.understandingaccounting.org/asc-img/GUID-C2B8A55A-CAA2-4A63-B4D9-413313C75D08-low.gif) "Transfers of Financial Assets Accounted for as Sales (Dollars in millions)" At the Date of Derecognition for Transactions Outstanding At the Reporting Date " Type of Transaction" Carrying Amount Derecognized Gross Cash Proceeds Received for Assets Derecognized Fair Value of Transferred Assets Gross Derivative Assets Recorded (a) (b) Gross Derivative Liabilities Recorded (a) (b) Repurchase agreements $ XX $ XX $ XX $ XX $ XX Repo financings xx xx xx xx xx Sale and a total return swap XX XX XX XX XX Securities lending XX XX XX XX XX Total $ XX $ XX $ XX $ XX $ XX (a) "Balances are presented on a gross basis, before the application of counterparty and cash collateral offsetting." (b) "$XX of gross derivative assets and $XX of gross derivative liabilities are included as interest rate contracts in footnote X on derivative disclosures. $XX of gross derivative assets and $XX of gross derivative liabilities are included as credit risk contracts in footnote X on derivative disclosures. "