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Disclosure requirement |
Codification references |
Guide reference |
Objectives of derivatives and qualitative disclosures
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Accounting policy disclosures
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Quantitative tables of balance sheet and income statement amounts
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- Fair value hedges
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- Derivatives not designated in hedging relationships
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An entity that holds or issues derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments pursuant to paragraphs 815-20-25-58 [fair value hedge of foreign currency risk] and 815-20-25-66 [net investment hedge]) shall disclose all of the following for every annual and interim reporting period for which a statement of financial position and statement of financial performance are presented:
An entity shall disclose in tabular format the following for items designated and qualifying as hedged items in fair value hedges:
Par amount |
Cumulative basis adjustment |
|
Total |
$1,000 |
$100 |
Hedged since inception |
$250 |
$30 |
Hedged since inception, dedesignated 2 years ago and redesignated in prior year |
$600 |
$70 ($50 from original, $20 from current hedge) |
Never hedged |
$150 |
N/A |
Disclosure requirement |
Description |
Amount |
Carrying amount of hedged assets and liabilities recognized on the balance sheet |
$950 (250+600+100) |
|
Cumulative amount of fair value hedging adjustments to hedged assets and liabilities included in the carrying amount of the hedged assets and liabilities recognized on the balance sheet |
$100 (30+70) |
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For each line item disclosed in accordance with paragraph 815-10-50-4EE(c) that includes hedging relationships designated under the portfolio layer method in accordance with paragraph 815-20-25-12A, the following information shall be disclosed separately:
Disclosure requirement |
Description |
Amount |
Carrying amount of hedged assets and liabilities recognized on the balance sheet |
$502 |
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Cumulative amount of fair value hedging adjustments to hedged assets and liabilities included in the carrying amount of the hedged assets and liabilities recognized on the balance sheet |
2 |
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See Section 815-10-50 for overall guidance on disclosures. An entity’s disclosures for every annual and interim reporting period for which a statement of financial position and a statement of financial performance is presented shall include all of the following for derivative instruments that have been designated and have qualified as cash flow hedging instruments and for the related hedged transactions:
As part of the disclosures of accumulated other comprehensive income, pursuant to paragraphs 220-10-45-14 through 45-14A, an entity shall separately disclose all of the following:
For qualifying fair value and cash flow hedges, the gains and losses disclosed pursuant to paragraph 815-10-50-4A(b) shall be presented separately for all of the following by type of contract (as discussed in paragraph 815-10-50-4D) and by income and expense line item (if applicable):
a. Derivative instruments (and nonderivative instruments) designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges.
b. The gains and losses on derivative instruments designated and qualifying in cash flow hedges included in the assessment of effectiveness that were recognized in other comprehensive income during the current period.
bb. Amounts excluded from the assessment of effectiveness that were recognized in other comprehensive income during the period for which an amortization approach is applied in accordance with paragraph 815-20-25-83A.
c. The gains and losses on derivative instruments designated and qualifying in cash flow hedges that are included in the assessment of effectiveness and recorded in accumulated other comprehensive income during the term of the hedging relationship and reclassified into earnings during the current period.
d. The portion of gains and losses on derivative instruments designated and qualifying in fair value and cash flow hedges representing the amount, if any, excluded from the assessment of hedge effectiveness that is recognized in earnings. When disclosing this amount, an entity shall disclose separately amounts that are recognized in earnings through an amortization approach in accordance with paragraph 815-20-25-83A and amounts recognized through changes in fair value in earnings in accordance with paragraph 815-20-25-83B.
e. Subparagraph superseded by Accounting Standards Update No. 2017-12
f. The gains and losses reclassified into earnings as a result of the discontinuance of cash flow hedges because it is probable that the original forecasted transactions will not occur by the end of the originally specified time period or within the additional period of time discussed in paragraphs 815-30-40-4 through 40-5.
g. The amount of net gain or loss recognized in earnings when a hedged firm commitment no longer qualifies as a fair value hedge.
For qualifying net investment hedges, an entity shall present the gains and losses disclosed in accordance with paragraph 815-10-50-4A(b) separately for all of the following by type of contract (as discussed in paragraph 815-10-50-4D):
For derivative instruments that are not designated or qualifying as hedging instruments under Subtopic 815-20, if an entity’s policy is to include those derivative instruments in its trading activities (for example, as part of its trading portfolio that includes both derivative instruments and nonderivative or cash instruments), the entity can elect to not separately disclose gains and losses as required by paragraph 815-10-50-4CC provided that the entity discloses all of the following:
A seller of credit derivatives shall disclose information about its credit derivatives and hybrid instruments (for example, a credit-linked note) that have embedded credit derivatives to enable users of financial statements to assess their potential effect on its financial position, financial performance, and cash flows. Specifically, for each statement of financial position presented, the seller of a credit derivative shall disclose all of the following information for each credit derivative, or each group of similar credit derivatives, even if the likelihood of the seller’s having to make any payments under the credit derivative is remote:
A reporting entity shall disclose the amounts recognized at the end of each reporting period for the right to reclaim cash collateral or the obligation to return cash collateral as follows:
Gross amounts not offset in the statement of financial position D |
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Description |
Gross amounts of recognized assets |
Gross amounts offset in the statement of financial position |
Net amounts of assets presented in the statement of financial position |
Financial instruments collateral |
Cash collateral received |
Net amount |
A |
B |
C = A – B |
Da |
Db |
F = C - D |
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