A Guide to Accounting for Derivatives

Jan 11, 2023
Audit Financial assets Financial reporting Technical accounting

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:

Technical accounting guides

We have prepared in-depth guides on several particularly complex and challenging accounting topics, with comprehensive discussion of the applicable U.S. GAAP and many examples.

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