Handbook | July 2019

Derivatives and hedging accounting handbook

Filed under: Broad transactions, Derivatives and hedging

KPMG’s guidance and interpretation on ASC 815. KPMG explains the accounting for derivatives and hedging in detail, providing examples and analysis, before the adoption of ASU 2017-12. 


  • Company engaged in derivatives and hedging activities before the adoption of ASU 2017-12

Relevant dates

  • Effective immediately

Key impacts

  • Provides interpretive guidance on ASC 815 before the adoption of ASU 2017-12
  • Includes illustrative examples and Q&As, and addresses specific accounting issues

Report contents

  • Applicability and freestanding derivative instruments
  • Embedded derivative instruments
  • Recognition and measurement
  • Fair value hedging
  • Cash flow hedging
  • Accounting by entities that do not report earnings as a separate caption in a statement of financial performance
  • Disclosure
  • Transition issues
  • Tax issues relating to derivative instruments
  • DIG issues index

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