What is ASC Topic 825?

ASC 825-20 notes the following: An entity may issue financial instruments (for example, equity shares, warrants, or debt instruments) that are subject to a registration payment arrangement. This Subtopic provides guidance related to such arrangements.

What is the fair value option ASC 825?

ASC 825-10-25, The Fair Value Option, encourages reporting entities to elect to use fair value to measure eligible assets and liabilities in their financial statements. Entities must recognize registration payment arrangements as separate units of account from the financial instruments subject to those arrangements.

Are all nonaccrual loans impaired?

Nonaccrual loans are by nature non-performing and, therefore, can easily be defined as impaired loans. Institutions will often use risk ratings (substandard or worse) and days past due to monitor loans that are deteriorating and should be considered impaired.

What type of account is mortgage loans?

A mortgage loan payable is a liability account that contains the unpaid principal balance for a mortgage. The amount of this liability to be paid within the next 12 months is reported as a current liability on the balance sheet, while the remaining balance is reported as a long-term liability.

How are equity securities measured under ASC 820?

If an entity applies the measurement alternative and a transaction price for a similar or identical security is observed, the equity security is measured at fair value under ASC 820.

What is the latest version of ASC 321?

KPMG addresses frequently asked questions on ASC 321 and changes to ASC 825. This latest edition includes new and updated interpretations on a variety of topics including ASU 2019-04 and 2020-01. Companies that have elected the fair value option for financial liabilities

How are irlcs accounted for in FASB ASC?

The FASB Accounting Standards Codification (“FASB ASC”) provides that IRLCs on mortgage loans that will be held for resale are derivatives and must be accounted for at fair value on the balance

What does subtopic 825-10 mean for financial instruments?

Financial Instruments—Overall (Subtopic 825-10) Financial Instruments—Overall (Subtopic 825-10) No. 2016-01 January 2016 Recognition and Measurement of Financial Assets and Financial Liabilities An Amendment of the FASB Accounting Standards Codification®