Handbooks | October 2020

 

Insight

Handbook: Derivatives and hedging

Latest edition: The KPMG in-depth guide to ASC 815 derivatives and hedge accounting post ASU 2017-02.

Mark Northan

Mark Northan

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-6927

Lisa Blackburn

Lisa Blackburn

Executive Director, Dept. of Professional Practice, KPMG US


This comprehensive update from KPMG adds guidance on the scope of ASC 815, the definition of derivative, accounting for derivatives and presentation to existing guidance on qualifying criteria and models to apply hedge accounting. This in-depth guide has also been updated for amendments to ASU 2017-12 and recent developments.

Applicability

ASC 815 (ASU 2017-12)

  • Companies that have derivative instruments
  • Companies that apply hedge accounting

Relevant dates

Effective Date Public entities All other entities

Annual periods – Fiscal years beginning after                                                  

Effective

December 15, 2020

Interim periods – In fiscal years beginning after

Effective

December 15, 2021

Early adoption allowed?

Permitted in any annual or interim period

 

Report contents

  • Scope of ASC 815
  • Definition of a derivative
  • Accounting for derivatives
  • General hedging requirements
  • Qualifying criteria and accounting for fair value hedges
  • Qualifying criteria and accounting for cash flow hedges
  • Hedging foreign currency exposures
  • Net investment hedges
  • Hedge effectiveness
  • Presentation
  • Private companies and entities that do not reporting earnings
  • Effective date and transition

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