ASC 815, Derivatives, contains eight subtopics:

  • ASC 815-10, Overall, which contains two subsections:
    • General
    • Certain Contracts on Debt and Equity Securities
  • ASC 815-15, Embedded Derivatives
  • ASC 815-20, Hedging—General
  • ASC 815-25, Fair Value Hedges
  • ASC 815-30, Cash Flow Hedges
  • ASC 815-35, Net Investment Hedges
  • ASC 815-40, Contracts in Entity’s Own Equity
  • ASC 815-45, Weather Derivatives

ASC 815-40 and ASC 815-45 address guidance on accounting for contracts that have characteristics of derivative instruments but that are not accounted for as derivative instruments under ASC 815. The other subtopics provide guidance on accounting for derivative instruments and hedging activities. ASC 815-10 focuses on whether a contract meets the definition of a derivative instrument. (ASC 815-10-05-2)


ASC 815 applies to all entities and to all derivative instruments, but contains extensive scope exceptions. (ASC 815-10-15-10) Some of those exceptions relate to items that fall under other guidance; other exceptions are aimed at simplifying the guidance.

Scope Exceptions.

The following instruments are not included in the ASC 815 guidance, provided they meet the specific exception criterion in ASC 815-10-15-14 through 15-42.

  • Regular-way security trades
  • Normal purchases and normal sales
  • Certain insurance contracts
  • Certain financial guarantee contracts
  • Certain contracts that are not traded on an exchange
  • Derivative instruments ...

Get Wiley GAAP 2019 now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.