55ASC 825 Financial Instruments

  1. Perspective and Issues
    1. Subtopics
    2. Scope and Scope Exceptions
      1. ASC 825-10
      2. ASC 825-20
    3. Overview
  2. Definitions of Terms
  3. Concepts, Rules, and Examples
    1. ASC 825-10, Overall
      1. Fair value option—flexibility of application
      2. Timing of the election
    2. Financial Statement Presentation and Disclosure
  4. ASC 825-20

Perspective and Issues


ASC 825, Financial Instruments, contains two subtopics:

  • ASC 825-10, Overall, which has two subsections:
    • General, which provides guidance on the fair value option 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 825-10-05-2)

  • ASC 825-20, Registration Payment Arrangements, which provides guidance on financial instruments subject to registration payment arrangements.

Scope and Scope Exceptions

ASC 825-10

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”):

  1. All recognized financial assets and financial liabilities except for those listed in ASC 825-10-15-5 below:
  2. Firm commitments that would otherwise not be recognized at inception and that involve only financial instruments. An example is a forward purchase contract for a loan that is not readily convertible to cash. The commitment involves only financial instruments (the loan and cash) ...

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