{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/860/30/#40-derecognition","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"860","topic_title":"Transfers and Servicing","subtopic":"860-30","subtopic_title":"Secured Borrowing and Collateral","section":{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"860-30-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">In circumstances where an obligor (<a href=\"/glossary/t/#transferor\" class=\"term\" title=\"An entity that transfers a financial asset, an interest in a financial asset, or a group of financial assets that it controls to another entity.\"><span>transferor</span></a>) <a href=\"/glossary/t/#transfer\" class=\"term\" title=\"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.\"><span>transfers</span></a> noncash <a href=\"/glossary/c/#collateral\" class=\"term\" title=\"Personal or real property in which a security interest has been given.\"><span>collateral</span></a> in a secured borrowing and <span class=\"sfragment\" id=\"sfr_F90B7720-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">the obligor (transferor) defaults under the terms of the secured contract and is no longer entitled to redeem the pledged asset, the obligor shall <a href=\"/glossary/d/#derecognize\" class=\"term\" title=\"Remove previously recognized assets or liabilities from the statement of financial position.\"><span>derecognize</span></a> the pledged asset. If the secured party has already sold the collateral, the secured party shall derecognize its obligation to return the collateral. </span></span></div></div>","snippet":"In circumstances where an obligor (transferor) transfers noncash collateral in a secured borrowing and the obligor (transferor) defaults under the terms of the secured contract and is no longer entitled to redeem the ple…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3d112176619b6f8b18dba50a36a7610d3c52c7139ebea0dad8fce21a8ceb3627","downloaded_from":"2026-09-10T02:07:15.071Z","last_downloaded_at":"2026-09-10T02:07:15.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481474","source_sha256":"70c7270570112e0530c78fcb00249e41eef7525717843a5b91e6a5fcd62cb643"}},{"citation":"860-30-40-2","para":"40-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">Otherwise paragraph <a href=\"/asc/860/30/#860-30-25-5\" class=\"xref\">860-30-25-5(c)</a> addresses the secured party's accounting for the collateral.</div></div>","snippet":"Otherwise paragraph 860-30-25-5(c) addresses the secured party's accounting for the collateral.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:853d7e14ac95e5e68da6de85fa4aa83339b78322221c39c2249877d23000e94a","downloaded_from":"2026-09-10T02:07:15.071Z","last_downloaded_at":"2026-09-10T02:07:15.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481474","source_sha256":"70c7270570112e0530c78fcb00249e41eef7525717843a5b91e6a5fcd62cb643"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c0236ac5e1a0703c18fe60bc724c0d0f6d04aa2c02db71ed72906e9046525c84","downloaded_from":"2026-09-10T02:07:15.071Z","last_downloaded_at":"2026-09-10T02:07:15.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481474","source_sha256":"70c7270570112e0530c78fcb00249e41eef7525717843a5b91e6a5fcd62cb643"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2500931f33b0e9ceacc007e071a3bcf692fcdc2508fe05d0cf2aa4226ea800ee","downloaded_from":"2026-09-10T02:07:15.071Z","last_downloaded_at":"2026-09-10T02:07:15.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481474","source_sha256":"70c7270570112e0530c78fcb00249e41eef7525717843a5b91e6a5fcd62cb643"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2500931f33b0e9ceacc007e071a3bcf692fcdc2508fe05d0cf2aa4226ea800ee","downloaded_from":"2026-09-10T02:07:15.071Z","last_downloaded_at":"2026-09-10T02:07:15.071Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481474","source_sha256":"70c7270570112e0530c78fcb00249e41eef7525717843a5b91e6a5fcd62cb643"}}