When a reporting entity enters into forward contracts or purchased options that (1) are not derivatives subject to ASC 815 and (2) involve the acquisition of securities that will be accounted for under ASC 320 or ASC 321, it should report those contracts consistent with the accounting, presentation, and disclosure requirements of ASC 320 or ASC 321. Reporting entities should not consider whether upon settlement of the forward contract or purchased option, the underlying securities would be accounted for under the equity method in ASC 323. Thus, purchased options and forwards that are not derivatives subject to ASC 815 to acquire securities that, upon acquisition, will be accounted for under ASC 323 should apply the guidance in ASC 321.

ASC 815-10-50-9 requires that the reporting entity disclose its accounting policy for the premium paid to acquire such an option that is classified as held to maturity or available-for-sale.

Specific disclosures are required when loans, trade receivables, securities, and financial instruments serve as collateral for borrowings. See ASC 860-30-50-1A and FSP 22.6.6 for these disclosure requirements.

S-X 4-08(b) requires disclosure of the amount of assets mortgaged, pledged, or otherwise subject to lien. Any obligations collateralized should also be identified.