Wiley GAAP: Financial Statement Disclosure Manual

52ASC 825 FINANCIAL INSTRUMENTS

1. Authoritative Literature
   1. Subtopics
   2. Scope and Scope Exceptions
   3. ASC 825‐10, Overall
   4. ASC 825‐20, Registration Payment Arrangements
2. Practice Alert
3. Presentation and Disclosure Requirements
   1. Presentation
      1. Statement of Financial Position
      2. Fair Value Option—Statement of Financial Position
      3. Statement of Cash Flows
      4. Fair Value Option—Statement of Comprehensive Income
   2. Disclosure
      1. Entities
      2. Transactions
      3. Fair Value of Financial Instruments
      4. Concentrations of Credit Risk of All Financial Instruments
      5. Fair Value Option
      6. Required Disclosures for Each Period for Which an Interim or Annual Income Statement Is Presented
4. Presentation and Disclosure Examples
   1. Example 52.1: Fair Value of Financial Instruments
   2. Example 52.2: Description and Fair Value of Financial Instruments
   3. Example 52.3: Determination of Fair Value
   4. Example 52.4: Fair Value Measurement of Acquisitions
   5. Example 52.5: Estimate of Fair Value of Contingent Liability Updated
   6. Example 52.6: Write Down to Fair Value of Long‐Lived Assets

AUTHORITATIVE LITERATURE

ASC 825‐10 contains the fair value option, which encourages reporting entities to elect to use fair value to measure eligible assets and liabilities in their financial statements. The objective is to improve financial reporting by mitigating the volatility in reported earnings that is caused by measuring related assets and liabilities differently. Electing entities obtain relief from the onerous and complex documentation requirements that apply to ...