# ASC 860-50-50: Transfers and Servicing — Servicing Assets and Liabilities — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/860/50/#50-disclosure) 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): 2026-09-10T02:08:26.048Z to 2026-09-10T02:08:26.048Z Record version: sha256:500c5b26573631c8178a667c5415a07a91ebb5d61939e9aba514da89d97988e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 860-50-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/860/50/#50-disclosure) SEC content: no #### All Entities within the Scope of Subtopic ##### [860-50-50-1](https://asc.understandingaccounting.org/asc/860/50/#860-50-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:26.048Z to 2026-09-10T02:08:26.048Z Record version: sha256:9e6277dee989a587db40972c6e3d3d425d7a729c465dde1db3c6ed78b88844e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section is organized as follows: 1. a All [servicing assets](https://asc.understandingaccounting.org/glossary/s/#servicing-assets "A contract to service financial assets under which the benefits of servicing are expected to more than adequately compensate the servicer for performing the servicing. A servicing contract is either: Undertaken in conjunction with selling or securitizing the financial assets being serviced Purchased or assumed separately.") and [servicing liabilities](https://asc.understandingaccounting.org/glossary/s/#servicing-liabilities "A contract to service financial assets under which the estimated future revenues from contractually specified servicing fees, late charges, and other ancillary revenues (benefits of servicing) are not expected to adequately compensate the servicer for performing the servicing.") 2. b Servicing assets and servicing liabilities subsequently measured at fair value 3. c Servicing assets and servicing liabilities subsequently amortized 4. d Servicing assets and servicing liabilities for which subsequent measurement at fair value is elected as of the beginning of the fiscal year. For overall guidance on Topic 860's disclosures, see Section 860-10-50. ##### [860-50-50-2](https://asc.understandingaccounting.org/asc/860/50/#860-50-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T02:08:26.048Z to 2026-09-10T02:08:26.048Z Record version: sha256:8c1802b53954475590a04f040d1360010969a56fe3fc31760cd86e0e9ad0d144 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For all servicing assets and servicing liabilities, all of the following shall be disclosed: 1. a Management's basis for determining its classes of servicing assets and servicing liabilities. 2. b A description of the risks inherent in servicing assets and servicing liabilities and, if applicable, the instruments used to mitigate the income statement effect of changes in fair value of the servicing assets and servicing liabilities. 3. c The amount of [contractually specified servicing fees](https://asc.understandingaccounting.org/glossary/c/#contractually-specified-servicing-fees "All amounts that, per contract, are due to the servicer in exchange for servicing the financial asset and would no longer be received by a servicer if the beneficial owners of the serviced assets (or their trustees or agents) were to exercise their actual or potential authority under the contract to shift the servicing to another servicer. Depending on the servicing contract, those fees may include some or all of the difference between the interest rate collectible on the financial asset being serviced and the rate to be paid to the beneficial owners of those financial assets."), late fees, and ancillary fees recognized for each period for which results of operations are presented, including a description of where each amount is reported in the statement of income. 4. d Quantitative and qualitative information about the assumptions used to estimate fair value (for example, discount rates, anticipated credit losses, and prepayment speeds). Disclosure of quantitative information about the instruments used to manage the risks inherent in servicing assets and servicing liabilities, including the fair value of those instruments at the beginning and end of the period, is encouraged but not required. An entity that provides such quantitative information is also encouraged, but not required, to disclose quantitative and qualitative information about the assumptions used to estimate the fair value of those instruments. Section 235-10-50 provides guidance on disclosures of accounting policies. 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 all servicing assets and servicing liabilities, all of the following shall be disclosed in interim and annual reporting periods: 1. a Management's basis for determining its classes of servicing assets and servicing liabilities. 2. b A description of the risks inherent in servicing assets and servicing liabilities and, if applicable, the instruments used to mitigate the income statement effect of changes in fair value of the servicing assets and servicing liabilities. 3. c The amount of [contractually specified servicing fees](https://asc.understandingaccounting.org/glossary/c/#contractually-specified-servicing-fees "All amounts that, per contract, are due to the servicer in exchange for servicing the financial asset and would no longer be received by a servicer if the beneficial owners of the serviced assets (or their trustees or agents) were to exercise their actual or potential authority under the contract to shift the servicing to another servicer. Depending on the servicing contract, those fees may include some or all of the difference between the interest rate collectible on the financial asset being serviced and the rate to be paid to the beneficial owners of those financial assets."), late fees, and ancillary fees recognized for each period for which results of operations are presented, including a description of where each amount is reported in the statement of income. 4. d Quantitative and qualitative information about the assumptions used to estimate fair value (for example, discount rates, anticipated credit losses, and prepayment speeds). Disclosure of quantitative information about the instruments used to manage the risks inherent in servicing assets and servicing liabilities, including the fair value of those instruments at the beginning and end of the period, is encouraged but not required. An entity that provides such quantitative information is also encouraged, but not required, to disclose quantitative and qualitative information about the assumptions used to estimate the fair value of those instruments. Section 235-10-50 provides guidance on disclosures of accounting policies. ##### [860-50-50-3](https://asc.understandingaccounting.org/asc/860/50/#860-50-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T02:08:26.048Z to 2026-09-10T02:08:26.048Z Record version: sha256:817a424627529a65850ecbab0bf5802d1fd7758098e9ceab13e85445dc233a87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For servicing assets and servicing liabilities subsequently measured at fair value, the following shall be disclosed: 1. a For each class of servicing assets and servicing liabilities, the activity in the balance of servicing assets and the activity in the balance of servicing liabilities (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including, but not limited to, the following: 1. 1 The beginning and ending balances 2. 2 Additions through any of the following: 1. i Purchases of servicing assets 2. ii Assumptions of servicing obligations 3. iii Recognition of servicing obligations that result from [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.") 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."). 3. 3 Disposals 4. 4 Changes in fair value during the period resulting from either of the following: 1. i Changes in valuation inputs or assumptions used in the valuation model 2. ii Other changes in fair value and a description of those changes. 5. 5 Other changes that affect the balance and a description of those changes. 2. b [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 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 servicing assets and servicing liabilities subsequently measured at fair value, the following shall be disclosed in interim and annual reporting periods: 1. a For each class of servicing assets and servicing liabilities, the activity in the balance of servicing assets and the activity in the balance of servicing liabilities (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including, but not limited to, the following: 1. 1 The beginning and ending balances 2. 2 Additions through any of the following: 1. i Purchases of servicing assets 2. ii Assumptions of servicing obligations 3. iii Recognition of servicing obligations that result from [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.") 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."). 3. 3 Disposals 4. 4 Changes in fair value during the period resulting from either of the following: 1. i Changes in valuation inputs or assumptions used in the valuation model 2. ii Other changes in fair value and a description of those changes. 5. 5 Other changes that affect the balance and a description of those changes. 2. b [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). ##### [860-50-50-4](https://asc.understandingaccounting.org/asc/860/50/#860-50-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T02:08:26.048Z to 2026-09-10T02:08:26.048Z Record version: sha256:74ca9b116a84dca503310cd61516a140962df15da82f08384d45a7ffb93f9161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For servicing assets and servicing liabilities measured subsequently under the amortization method in paragraph [860-50-35-1(a)](https://asc.understandingaccounting.org/asc/860/50/#860-50-35-1), all of the following shall be disclosed: 1. a For each class of servicing assets and servicing liabilities, the activity in the balance of servicing assets and the activity in the balance of servicing liabilities (including a description of where changes in the carrying amount are reported in the statement of income for each period for which results of operations are presented), including, but not limited to, the following: 1. 1 The beginning and ending balances 2. 2 Additions through any of the following: 1. i Purchases of servicing assets 2. ii Assumptions of servicing obligations 3. iii Recognition of servicing obligations that result from transfers of financial assets. 3. 3 Disposals 4. 4 Amortization 5. 5 Application of valuation allowance to adjust carrying value of servicing assets 6. 6 Other-than-temporary impairments 7. 7 Other changes that affect the balance and a description of those changes. 2. b For each class of servicing assets and servicing liabilities, the fair value of recognized servicing assets and servicing liabilities at the beginning and end of the period. 3. c [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 4. d The risk characteristics of the underlying financial assets used to stratify recognized servicing assets for purposes of measuring impairment in accordance with paragraph [860-50-35-9](https://asc.understandingaccounting.org/asc/860/50/#860-50-35-9). If the predominant risk characteristics and resulting stratums are changed, that fact and the reasons for those changes shall be included in the disclosures about the risk characteristics of the underlying financial assets used to stratify the recognized servicing assets in accordance with this paragraph. 5. e For each period for which results of operations are presented, the activity by class in any valuation allowance for impairment of recognized servicing assets, including all of the following: 1. 1 Beginning and ending balances 2. 2 Aggregate additions charged and recoveries credited to operations 3. 3 Aggregate write-downs charged against the allowance. 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 servicing assets and servicing liabilities measured subsequently under the amortization method in paragraph [860-50-35-1(a)](https://asc.understandingaccounting.org/asc/860/50/#860-50-35-1), all of the following shall be disclosed in interim and annual reporting periods: 1. a For each class of servicing assets and servicing liabilities, the activity in the balance of servicing assets and the activity in the balance of servicing liabilities (including a description of where changes in the carrying amount are reported in the statement of income for each period for which results of operations are presented), including, but not limited to, the following: 1. 1 The beginning and ending balances 2. 2 Additions through any of the following: 1. i Purchases of servicing assets 2. ii Assumptions of servicing obligations 3. iii Recognition of servicing obligations that result from transfers of financial assets. 3. 3 Disposals 4. 4 Amortization 5. 5 Application of valuation allowance to adjust carrying value of servicing assets 6. 6 Other-than-temporary impairments 7. 7 Other changes that affect the balance and a description of those changes. 2. b For each class of servicing assets and servicing liabilities, the fair value of recognized servicing assets and servicing liabilities at the beginning and end of the period. 3. c [Subparagraph superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/updates/asu-2009-16/). 4. d The risk characteristics of the underlying financial assets used to stratify recognized servicing assets for purposes of measuring impairment in accordance with paragraph [860-50-35-9](https://asc.understandingaccounting.org/asc/860/50/#860-50-35-9). If the predominant risk characteristics and resulting stratums are changed, that fact and the reasons for those changes shall be included in the disclosures about the risk characteristics of the underlying financial assets used to stratify the recognized servicing assets in accordance with this paragraph. 5. e For each period for which results of operations are presented, the activity by class in any valuation allowance for impairment of recognized servicing assets, including all of the following: 1. 1 Beginning and ending balances 2. 2 Aggregate additions charged and recoveries credited to operations 3. 3 Aggregate write-downs charged against the allowance. ##### [860-50-50-5](https://asc.understandingaccounting.org/asc/860/50/#860-50-50-5) Pending content: yes Source downloaded (UTC): 2026-09-10T02:08:26.048Z to 2026-09-10T02:08:26.048Z Record version: sha256:fcc723dc64f2323e5308ebefda9c130a9f7116eb75b920a5bcc3104609464731 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an entity elects under paragraph [860-50-35-3(d)](https://asc.understandingaccounting.org/asc/860/50/#860-50-35-3) to subsequently measure a class of servicing assets and servicing liabilities at fair value at the beginning of the fiscal year, the amount of the cumulative-effect adjustment to retained earnings shall be separately disclosed. 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 an entity elects under paragraph [860-50-35-3(d)](https://asc.understandingaccounting.org/asc/860/50/#860-50-35-3) to subsequently measure a class of servicing assets and servicing liabilities at fair value at the beginning of the fiscal year, the amount of the cumulative-effect adjustment to retained earnings shall be separately disclosed in the interim or annual reporting period in which the adjustment is recorded. ##### [860-50-50-6](https://asc.understandingaccounting.org/asc/860/50/#860-50-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:08:26.048Z to 2026-09-10T02:08:26.048Z Record version: sha256:419c3f98bf407ffdd69dc882a2f01c1a866d7d597154c3f4595f9b23f31d28b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraphs 860-50-50-6 through 50-9 superseded by Accounting Standards Update No. 2009-16](https://asc.understandingaccounting.org/asc/860/50/#860-50-50-6).