{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/815/10/#35-subsequent-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"815","topic_title":"Derivatives and Hedging","subtopic":"815-10","subtopic_title":"Overall","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"815-10-35-1","para":"35-1","html":"
All derivative instruments shall be measured subsequently at fair value.
","snippet":"All derivative instruments shall be measured subsequently at fair value.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a21915074cfedae11dc559b05150df512639e5c28fd13cc8341e6bc72863da3","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"citation":"815-10-35-1A","para":"35-1A","html":"
As a practical expedient, a receive-variable, pay-fixed interest rate swap for which the simplified hedge accounting approach (see paragraphs
815-20-25-133 through 25-138
for scope) is applied may be measured subsequently at settlement value instead of fair value.
","snippet":"As a practical expedient, a receive-variable, pay-fixed interest rate swap for which the simplified hedge accounting approach (see paragraphs 815-20-25-133 through 25-138 for scope) is applied may be measured subsequentl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:230e3504a9ec6978314ba38befc5bd1369f076d29652648efdca26004496e2cc","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"citation":"815-10-35-1B","para":"35-1B","html":"
The primary difference between settlement value and fair value is that nonperformance risk is not considered in determining settlement value. One approach for estimating the receive-variable, pay-fixed interest rate swap's settlement value is to perform a present value calculation of the swap's remaining estimated cash flows using a valuation technique that is not adjusted for nonperformance risk.
","snippet":"The primary difference between settlement value and fair value is that nonperformance risk is not considered in determining settlement value. One approach for estimating the receive-variable, pay-fixed interest rate swap…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05a5d6232407f02516962def5f06235be36d8822af3a7bacfff6ee137ceb94f7","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"citation":"815-10-35-1C","para":"35-1C","html":"
If any of the conditions in paragraph 815-20-25-131D for applying the simplified hedge accounting approach subsequently cease to be met or the relationship otherwise ceases to qualify for hedge accounting, the General Subsections of this Topic shall apply at the date of change and on a prospective basis. For example, if the related variable-rate borrowing is prepaid without terminating the receive-variable, pay-fixed interest rate swap, the gain or loss on the swap in accumulated other comprehensive income shall be reclassified to earnings in accordance with paragraphs
815-30-40-1 through 40-6
with the swap measured at fair value on the date of change and subsequent changes in fair value reported in earnings in accordance with paragraph 815-10-35-2. Similarly, if the receive-variable, pay-fixed interest rate swap is terminated early without the related variable-rate borrowing being prepaid, the gain or loss on the swap in accumulated other comprehensive income shall be reclassified to earnings in accordance with paragraphs
815-30-40-1 through 40-6
.
","snippet":"If any of the conditions in paragraph 815-20-25-131D for applying the simplified hedge accounting approach subsequently cease to be met or the relationship otherwise ceases to qualify for hedge accounting, the General Su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83e2e393a437c13d83a98dfe2c8f2ff54222615b0fb237421e54acf3f3b2816b","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"citation":"815-10-35-2","para":"35-2","html":"
The accounting for changes in the fair value (that is, gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding it. Subtopic 815-20 discusses the accounting for the gain or loss on a derivative instrument that is designated as a hedging instrument. Except as noted in the following paragraph, the gain or loss on a derivative instrument not designated as a hedging instrument shall be recognized currently in earnings.
","snippet":"The accounting for changes in the fair value (that is, gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for h…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a1d1cf3bdf9967879f86554008150ee2dcae3110ac24dfcc28811e5f0213ec7","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"citation":"815-10-35-3","para":"35-3","html":"
An entity that does not report earnings as a separate caption in a statement of financial performance (for example, a not-for-profit entity [NFP] or a defined benefit pension plan) shall recognize the gain or loss on a nonhedging derivative instrument as a change in net assets in the period of change.
","snippet":"An entity that does not report earnings as a separate caption in a statement of financial performance (for example, a not-for-profit entity [NFP] or a defined benefit pension plan) shall recognize the gain or loss on a n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d08ccf64e0a18569b28fb7e53823fb07eec61744b80d1713a852680a2fbd4314","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:04840227fe61584ef3bf8b7e8c666f6c83ee30850ecff128c06982a8a7d3ea41","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"block":null,"heading":"Forward Commitment Dollar Rolls","paragraphs":[{"citation":"815-10-35-4","para":"35-4","html":"
A forward commitment dollar roll that is not subject otherwise to this Subtopic's provisions shall be measured subsequently at fair value.
","snippet":"A forward commitment dollar roll that is not subject otherwise to this Subtopic's provisions shall be measured subsequently at fair value.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51fd7fd8d6b12edc904854076a5c50127eb2c1a4d3aacce769280d5feb2850d5","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1cf8c0aab347e3f26ade2d2524f156a7b2a2bf9ca7c39a876450e90f5b52ad05","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"block":"Certain Contracts on Debt and Equity Securities","heading":null,"paragraphs":[{"citation":"815-10-35-5","para":"35-5","html":"
Forward contracts and purchased options on debt securities within the scope of this Subsection shall be measured subsequently according to their initial classification as follows:
  1. a
    Held to maturity:
    1. 1
      Changes in the fair value of the forward contract or purchased option shall not be recognized. Credit losses on the underlying securities in a forward contract shall be recorded through an allowance for credit losses in accordance with Subtopic 326-20 on financial instruments measured at amortized cost. Credit losses on the underlying securities in a purchased option shall be recorded through an allowance for credit losses in accordance with Subtopic 326-20 and shall be limited by the amount of the option premium.
    2. 2
      Debt securities purchased under a forward contract shall be recorded at the forward contract price at the settlement date.
    3. 3
      Debt securities purchased by exercising an option shall be recorded at the option strike price plus any remaining carrying amount for the option premium at the exercise date.
    4. 4
      If an option expires worthless and the same debt security is purchased in the market, the security shall be recorded at its market price plus any remaining carrying amount for the option premium.
    5. 5
      If an entity does not take delivery under the forward contract or purchase the same security in the market if the option expires worthless, the entity's intent to hold other debt securities to maturity will be called into question.
  2. b
    Available for sale:
    1. 1
      Changes in the fair value of the forward contract or purchased option shall be recognized as part of the separate component of shareholders' equity under Topic 320 as they occur. Credit losses on the underlying securities in a forward contract shall be recorded through an allowance for credit losses in accordance with Subtopic 326-30 on measuring credit losses on available-for-sale debt securities. Credit losses on the underlying securities in a purchased option shall be recorded through an allowance for credit losses in accordance with Subtopic 326-30 and shall be limited by the amount of the option premium.
    2. 2
      Debt securities purchased under a forward contract shall be recorded at their fair values at the settlement date.
    3. 3
      Debt securities purchased by exercising an option shall be recorded at the option strike price plus the fair value of the option at the exercise date.
    4. 4
      If the option expires worthless and the same debt security is purchased in the market, the security shall be recorded at its market price plus any remaining carrying amount for the option premium.
  3. c
    Trading:
    1. 1
      Changes in the fair value of the forward contract or purchased option shall be recognized in earnings as they occur.
    2. 2
      Debt securities purchased under a forward contract or by exercising an option shall be recorded at their fair values at the settlement date.
","snippet":"Forward contracts and purchased options on debt securities within the scope of this Subsection shall be measured subsequently according to their initial classification as follows:\n(a) Held to maturity:\n(1) Changes in the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0e919a5bb5e0242af33bae77f626c7dcc29c0a05cea24b5d54b3f534760dcfa","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},{"citation":"815-10-35-6","para":"35-6","html":"
Changes in the fair value of forward contracts and purchased options on equity securities within the scope of this Subsection shall be recognized in earnings as they occur. Changes in observable price or impairment of forward contracts and purchased options on equity securities without readily determinable fair value within the scope of this Subsection measured in accordance with paragraph 321-10-35-2 shall be recognized in earnings as they occur. A change in observable price or impairment of the underlying securities of forward contracts and purchased options on equity securities shall result in a remeasurement of the entire fair value of the forward contracts and purchased options as of the date that the observable transaction took place. Equity securities within the scope of this Subsection purchased under a forward contract or by exercising an option shall be recorded at their fair values at the settlement date.
","snippet":"Changes in the fair value of forward contracts and purchased options on equity securities within the scope of this Subsection shall be recognized in earnings as they occur. Changes in observable price or impairment of fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5161809e0fa19db688cfb5e9620b631f5427245130955a31fd51a5da0959c521","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:381697f21aa2c014c7f79d534dd4ac092781a558de976a23ec6bfc3cfceab1d3","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fff333ba5a92da05f7530cd8db8f4300645d9ae2fa65d0f5f13ca40d9a11a05a","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fff333ba5a92da05f7530cd8db8f4300645d9ae2fa65d0f5f13ca40d9a11a05a","downloaded_from":"2026-09-10T01:35:09.320Z","last_downloaded_at":"2026-09-10T01:35:09.320Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480526","source_sha256":"4546687f3f0fe216266d0f0b1c064b4e1d2e1d0fb2e328b2ed2da1fb51adfe18"}}