{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/815/10/#40-derecognition","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":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"815-10-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">Extinguishments of <a href=\"/glossary/d/#derivative-instrument\" class=\"term\" title=\"Paragraphs 815-10-15-83815-10-15-84815-10-15-85815-10-15-86815-10-15-87815-10-15-88815-10-15-89815-10-15-90815-10-15-91815-10-15-92815-10-15-93815-10-15-94815-10-15-95815-10-15-96815-10-15-97815-10-15-98815-10-15-99815-10-15-100815-10-15-101815-10-15-102815-10-15-103815-10-15-104815-10-15-105815-10-15-106815-10-15-107815-10-15-108815-10-15-109815-10-15-110815-10-15-111815-10-15-112815-10-15-113815-10-15-114815-10-15-115815-10-15-116815-10-15-117815-10-15-118815-10-15-119815-10-15-120815-10-15-121815-10-15-122815-10-15-123815-10-15-124815-10-15-125815-10-15-126815-10-15-127815-10-15-128815-10-15-129815-10-15-130815-10-15-131815-10-15-132815-10-15-133815-10-15-134815-10-15-135815-10-15-136815-10-15-137815-10-15-138815-10-15-139 define the term derivative instrument.\"><span>derivative instruments</span></a> that are liabilities are addressed by paragraph <a href=\"/asc/405/20/#405-20-40-1\" class=\"xref\">405-20-40-1</a>. Transfers of derivative instruments that are financial assets are addressed by Section <a altsource=\"GUID-2B788674-9D0A-432B-A59D-B1470F2DC999.ditamap\" class=\"ditamap\">860-10-40</a>.</div></div>","snippet":"Extinguishments of derivative instruments that are liabilities are addressed by paragraph 405-20-40-1. Transfers of derivative instruments that are financial assets are addressed by Section 860-10-40.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62ae50d41e21ab7487ab6d7b39a5a56146da086d0362d01630d80cd0377fc0ab","downloaded_from":"2026-09-10T01:35:11.105Z","last_downloaded_at":"2026-09-10T01:35:11.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480495","source_sha256":"67c75bb05fe4be6522fa1039f5e6f0b535b12f7f2915a8302ac60fda2514507d"}},{"citation":"815-10-40-2","para":"40-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_977F7AFF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Transfers of assets that are derivative instruments and subject to the requirements of this Subtopic but that are not financial assets shall be accounted for by analogy to Subtopic <a altsource=\"GUID-2083F382-3063-4262-8657-7F27F701112A.ditamap\" class=\"ditamap\">860-10</a>. </span></span><span class=\"sfragment\" id=\"sfr_977F7C26-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This guidance is limited to transfers of nonfinancial assets that are derivative instruments that are or will be subject to the requirements of this Subtopic. </span></span><span class=\"sfragment\" id=\"sfr_977F7D04-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An example would be a transfer to another entity of a derivative instrument, such as a forward contract to purchase gold that requires physical settlement and is or will be subject to the requirements of this Subtopic. </span></span></div></div>","snippet":"Transfers of assets that are derivative instruments and subject to the requirements of this Subtopic but that are not financial assets shall be accounted for by analogy to Subtopic 860-10. This guidance is limited to tra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54e265c0140da7652410f4525aa11a33b8c243602d0bc5474db711ca5f9742a1","downloaded_from":"2026-09-10T01:35:11.105Z","last_downloaded_at":"2026-09-10T01:35:11.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480495","source_sha256":"67c75bb05fe4be6522fa1039f5e6f0b535b12f7f2915a8302ac60fda2514507d"}},{"citation":"815-10-40-3","para":"40-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_977F7DE8-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a derivative instrument has the potential to be both a nonfinancial asset and a nonfinancial liability (such as a commodity forward contract that is a nonfinancial derivative instrument), then, as described in paragraph <a href=\"/asc/860/10/#860-10-40-40\" class=\"xref\">860-10-40-40</a>, the criteria of both Sections <a altsource=\"GUID-F7EBC768-960A-467F-992E-73EC5FF19D94.ditamap\" class=\"ditamap\">405-20-40</a> and <a altsource=\"GUID-2B788674-9D0A-432B-A59D-B1470F2DC999.ditamap\" class=\"ditamap\">860-10-40</a> shall be met to qualify for derecognition. </span></span></div></div>","snippet":"If a derivative instrument has the potential to be both a nonfinancial asset and a nonfinancial liability (such as a commodity forward contract that is a nonfinancial derivative instrument), then, as described in paragra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e484827d42beb544ec508a87e7e3dbb85f35a701190d4d60b8241a0b54f8cbf","downloaded_from":"2026-09-10T01:35:11.105Z","last_downloaded_at":"2026-09-10T01:35:11.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480495","source_sha256":"67c75bb05fe4be6522fa1039f5e6f0b535b12f7f2915a8302ac60fda2514507d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b63ad044e4d8fa3d48029df72888807827afaf93b927d6b21d34b903e4a68111","downloaded_from":"2026-09-10T01:35:11.105Z","last_downloaded_at":"2026-09-10T01:35:11.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480495","source_sha256":"67c75bb05fe4be6522fa1039f5e6f0b535b12f7f2915a8302ac60fda2514507d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30d7175e9d5ef5ca398911118be7230bbae94fa0241ba2b4ef70365ecc0d7229","downloaded_from":"2026-09-10T01:35:11.105Z","last_downloaded_at":"2026-09-10T01:35:11.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480495","source_sha256":"67c75bb05fe4be6522fa1039f5e6f0b535b12f7f2915a8302ac60fda2514507d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30d7175e9d5ef5ca398911118be7230bbae94fa0241ba2b4ef70365ecc0d7229","downloaded_from":"2026-09-10T01:35:11.105Z","last_downloaded_at":"2026-09-10T01:35:11.105Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480495","source_sha256":"67c75bb05fe4be6522fa1039f5e6f0b535b12f7f2915a8302ac60fda2514507d"}}