Wiley GAAP 2024

52ASC 825 FINANCIAL INSTRUMENTS

• Perspective and Issues
  • Subtopics
  • Scope and Scope Exceptions
    • ASC 825-10
    • ASC 825-20
  • Overview
• Definitions of Terms
  • Fully Benefit-Responsive Investment Contract
• Concepts, Rules, and Examples
  • ASC 825-10, Overall
    • Election Dates
    • Unit of Accounting
  • Financial Statement Presentation and Disclosure
• ASC 825-20, Registration Payment Arrangements
  • Recognition and Initial Measurement
  • Other Sources

PERSPECTIVE AND ISSUES

Subtopics

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 (FVO), 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, which provides guidance on financial instruments subject to registration payment arrangements.

  (ASC 825-10-05-1 and 05-2)

Scope and Scope Exceptions

ASC 825-10 ASC 825-10 General Subsection applies to all entities. (ASC 825-10-15-2) The FVO Subsection follows the General Subsection scope with the exceptions noted below. (ASC 825-10-15-3) The following items are eligible for the fair value option:

• All recognized financial assets and financial liabilities except for those listed in ASC 825-10-15-5 below.
• Firm commitments that would otherwise not be recognized at inception and that ...