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FASB ASC Guide > FASB ASC 815

The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 815 (ASC 815) to address derivatives and hedging.  Some of the main items included are:

• Weather Derivatives
• Contracts in Entity’s own Equity
• Net Investment Hedges
• Cash Flow Hedges
• Fair Value Hedges
• General Hedging
• Embedded Derivatives

How are these derivative and hedging instruments to be accounted for?  Each has its own specific treatment which is addressed in this FASB ASC.  As more companies are purchasing these and because they can be very complex instruments, as they are most famously known to be, it is important that they are accounted for correctly.

Check out more high level explanations of the FASB ASC in our Guide to the Accounting Standards Codification!

For more in depth information on this and other FASB ASC topics, check out the following books.