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A Guide to Accounting for Derivatives

GUIDE | January 11, 2023

Authored by RSM US LLP

Derivative instruments and the related accounting guidance and their financial reporting considerations are complex. We have developed this guide to provide a high-level overview of the accounting for, financial statement presentation and disclosure of derivative instruments. Accounting Standards Codification (ASC) 815, Derivatives and Hedging, provides the authoritative guidance for the areas covered by this guide.

This guide is based primarily on the content within ASC 815-10 and ASC 815-15 and is composed of the following chapters:

  • Chapter 1: Introduction to derivatives and how they are accounted for
  • Chapter 2: Definition of a derivative and scope exceptions to derivative accounting
  • Chapter 3: Embedded derivatives
  • Chapter 4: Presentation and disclosure of derivatives and hedging activity
  • Appendix A: Accounting Standards Updates mentioned in this guide
  • Appendix B: Acronyms and literature references

Refer also to our companion guides:

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This article was written by RSM US LLP and originally appeared on Jan 11, 2023.
2022 RSM US LLP. All rights reserved.

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