U.S. GAAP Codification of Accounting Standards

U.S. GAAP Codification   Accounting Standards, ASC

U.S. GAAP Codification of Accounting Standards
Codification Topic 825: Financial Instruments


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Codification Topic 825
Financial Instruments


Fair Value Option

   SFAS No. 159, February 2007
   " The Fair Value Option for Financial Assets and Financial Liabilities"

   Fair Value Option(FVO)
   --> Option to measure eligible items at fair value

   Eligible items: asc 825-10-15-4
   (a) Financial assets and financial liabilities
         --> except the items not eligible listed in asc 825-10-15-4
   (b) Other eligible items listed in asc 825-10-15-4

   Items not eligible: asc 825-10-15-5
   (a) Investment in a subsidiary to be consolidated
   (b) Investment in a Variable Interest Entities (VIE) to be consolidated
   (c) Other items listed in asc 825-10-15-5

Election of FVO

   FVO is applied "instrument by instrument."

   FVO is elected when the eligible item is "first recognized."

   Once FVO is elected
   --> the decision is "irrevocable."

Items Fair Value Option was elected for

   Measured at "fair value"

   Unrealized gains and losses are recognized in "earnings."

FVO may be elected for the following:

   1. Investment in HTM securities
   2. Investment in AFS securities
   3. Investment in equity securities for "equity method"
    --> 20% or more, but no more than 50% of ownership
   4. Financial liabilities

   HTM: Held-to-Maturity
   AFS: Available for Sale

   For HTM and AFS, refer to asc 320

 




   Codification Topic 825
   Financial Instruments
 
Subtopics of Codification Topic 825
 
   825-10 Overall
   825-20 Registration payment arrangements
 
Accounting Terms of Codification Topic 825-10
 
   Conduit debt securities
   Fair value
   Financial asset
   Financial instrument
   Financial liability
   Firm commitment
   Nonpublic entity
   Publicly traded company
 
Accounting Terms of Codification Topic 825-20
 
 

 

   Other Topics at the Codification 800 
Accounting Standards Codification, ASC, Overview
 
ASC Codification Topic 805: Business Combinations
ASC Codification Topic 808: Collaborative Arrangements
 
ASC Codification Topic 810: Consolidation
ASC Codification Topic 815: Derivatives and Hedging
 
ASC Codification Topic 820: Fair Value Measurements and Disclosures
ASC Codification Topic 825: Financial Instruments
 
ASC Codification Topic 830: Foreign Currency Matters
ASC Codification Topic 835: Interest
 
ASC Codification Topic 840: Leases
ASC Codification Topic 845: Nonmonetary Transactions
 
ASC Codification Topic 850: Related Party Disclosures
ASC Codification Topic 852: Reorganizations
ASC Codification Topic 855: Subsequent Events
 
ASC Codification Topic 860: Transfers and Servicing


   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

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