Derivative instruments and the related accounting guidance and their financial reporting considerations are complex. We have developed this guide to provide a high-level overview of the accounting for, financial statement presentation and disclosure of derivative instruments. Accounting Standards Codification (ASC) 815, Derivatives and Hedging, provides the authoritative guidance for the areas covered by this guide.
This guide is based primarily on the content within ASC 815-10 and ASC 815-15 and is composed of the following chapters:
- Chapter 1: Introduction to derivatives and how they are accounted for
- Chapter 2: Definition of a derivative and scope exceptions to derivative accounting
- Chapter 3: Embedded derivatives
- Chapter 4: Presentation and disclosure of derivatives and hedging activity
- Appendix A: Accounting Standards Updates mentioned in this guide
- Appendix B: Acronyms and literature references
Refer also to our companion guides:
- A guide to hedge accounting upon the adoption of ASU 2017-12, which is based on the content within ASC 815-20, ASC 815-25, ASC 815-30 and ASC 815-35
- A guide to accounting for debt and equity instruments in financing transactions
