PERSPECTIVE AND ISSUES
ASC 825, Financial Instruments, contains two Subtopics:
- ASC 825-10, Overall, which has two Subsections:
- General, which provides guidance on credit losses on financial instruments with off-balance-sheet credit risk and some disclosures about financial instruments
- Fair Value Option, which provides guidance on the circumstances under which entities may choose the fair value option and the related presentation and disclosure requirements
- ASC 825-20, Registration Payment Arrangements.
Scope and Scope Exceptions
The following items are eligible for the fair value option (also see the chapter on ASC 820 – the summary table in the section entitled “The Mixed Attribute Model”):
- All recognized financial assets and financial liabilities except
- Investments in subsidiaries required to be consolidated by the reporting entity
- Interests in variable interest entities required to be consolidated by the reporting entity1
- c. Employers' and plans' obligations (unfunded or underfunded liabilities) or assets (representing net overfunded positions) for
- 1. Pension benefits
- 2. Other postretirement benefits (including health care and life insurance benefits)
- 3. Postemployment benefits ...