# ASC 815-10-65: Derivatives and Hedging — Overall — 65 Transition and Open Effective Date Information
Source: FASB Accounting Standards Codification, Basic View
[Read online](https://asc.understandingaccounting.org/asc/815/10/#65-transition-and-open-effective-date-information)
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## ASC 815-10-65: 65 Transition and Open Effective Date Information
[Read section](https://asc.understandingaccounting.org/asc/815/10/#65-transition-and-open-effective-date-information)
SEC content: no
##### [815-10-65-1](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-1)
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Paragraph superseded on 04/13/2010 after the end of the transition period stated in FASB Statement No. 161, _Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133_.
##### [815-10-65-2](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-2)
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Paragraph superseded on 03/23/2010 after the end of the transition period stated in FASB Staff Position No. FAS 133-1 and FIN 45-4, _Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161_.
##### [815-10-65-3](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-3)
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Paragraph superseded on 07/01/2010 after the end of the transition period stated in EITF Issue No. 07-5, "Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity's Own Stock."
##### [815-10-65-4](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-4)
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Paragraph superseded on 07/01/2010 after the end of the transition period stated in EITF Issue No. 08-8, "Accounting for an Instrument (or an Embedded Feature) with a Settlement Amount That Is Based on the Stock of an Entity's Consolidated Subsidiary."
##### [815-10-65-5](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-5)
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Paragraph superseded on 03/15/2011 after the end of the transition period stated in Accounting Standards Update No. 2010-11, _Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives_.
#### Transition Related to Accounting Standards Update No. 2014-03, Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach
##### [815-10-65-6](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-6)
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The following represents the transition information related to Accounting Standards Update No. 2014-03, _Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach,_ referenced in paragraph [815-20-25-131AA](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-131AA):
1. a
[Subparagraph superseded by Accounting Standards Update No. 2016-03](https://asc.understandingaccounting.org/updates/asu-2016-03/).
2. b
Upon adoption of the simplified hedge accounting approach in this Subtopic and adoption of the guidance in paragraphs [825-10-50-3](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-3) and [825-10-50-8](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-8), that guidance shall be applied as of the beginning of the first fiscal year in which the approach is elected and in either of the following ways:
1. 1
Using a modified retrospective approach in which corresponding adjustments shall be made to the assets, liabilities, and opening balance of accumulated other comprehensive income and retained earnings (or other appropriate components of equity) of the current period presented to reflect application of hedge accounting under this Topic from the date the receive-variable, pay-fixed interest rate swap was entered into (or acquired) by the entity.
2. 2
Using a full retrospective approach in which:
1. i
The financial statements for each individual prior period presented shall be adjusted to reflect the period-specific effects of applying hedge accounting under this Topic from the date the receive-variable, pay-fixed interest rate swap was entered into (or acquired) by the entity.
2. ii
Corresponding adjustments shall be made to the assets, liabilities, and opening balance of accumulated other comprehensive income and retained earnings (or other appropriate components of equity) of the earliest period presented to reflect application of hedge accounting under this Topic from the date the receive-variable, pay-fixed interest rate swap was entered into (or acquired) by the entity.
3. c
The simplified hedge accounting approach may be elected for any qualifying receive-variable, pay-fixed interest rate swap, whether existing at the date of its adoption or entered into after that date. The election to apply the simplified hedge accounting approach to an existing swap shall be made upon its adoption and can be applied only to existing swaps the first time the election is made. After the initial election is made to apply the simplified hedge accounting approach to existing swaps, no further retrospective applications to existing swaps (full or modified) are permitted. In determining whether an existing swap meets all of the conditions in paragraph [815-20-25-131D](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-131D) to qualify for applying the simplified hedge accounting approach, the condition that the swap's fair value at the time of application of this approach is at or near zero need not be considered. Instead, as long as the swap's fair value was at or near zero at the time the swap was entered into (or acquired) by the entity, the entity may apply the simplified hedge accounting approach. For an existing swap, the documentation required by paragraph [815-20-25-3](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-3) to qualify for hedge accounting must be completed in the period of adoption by the date on which the first annual [financial statements are available to be issued](https://asc.understandingaccounting.org/glossary/f/#financial-statements-are-available-to-be-issued "Financial statements are considered available to be issued when they are complete in a form and format that complies with GAAP and all approvals necessary for issuance have been obtained, for example, from management, the board of directors, and/or significant shareholders. The process involved in creating and distributing the financial statements will vary depending on an entity's management and corporate governance structure as well as statutory and regulatory requirements.") rather than concurrently at hedge inception.
4. d
[Subparagraph superseded by Accounting Standards Update No. 2016-03](https://asc.understandingaccounting.org/updates/asu-2016-03/).
5. e
An entity shall provide the required disclosures in paragraphs
[250-10-50-1 through 50-3](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1)
in the period that the entity adopts the simplified hedge accounting approach in this Subtopic.
6. f
A private company that makes an accounting policy election to apply the simplified hedge accounting approach for the first time need not justify that the use of that approach is preferable as described in paragraph [250-10-45-2](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-2).
##### [815-10-65-7](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-7)
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Paragraph superseded on 07/05/2017 after the end of the transition period stated in Accounting Standards Update No. 2015-13, _Derivatives and Hedging (Topic 815): Application of the Normal Purchases and Normal Sales Scope Exception to Certain Electricity Contracts within Nodal Energy Markets_.
#### Transition Related to Accounting Standards Update No. 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract
##### [815-10-65-8](https://asc.understandingaccounting.org/asc/815/10/#815-10-65-8)
Pending content: no
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[Accounting Standards Update 2025-07](https://asc.understandingaccounting.org/updates/asu-2025-07/)
2028-6-13
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
2026-12-16
The following represents the transition and effective date information related to Accounting Standards Update No. 2025-07, _Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract_:
**Effective date and early adoption**
1. a
All entities shall apply the pending content that links to this paragraph for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods.
2. b
Early adoption of the pending content that links to this paragraph is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. If an entity early adopts the pending content that links to this paragraph in an interim reporting period, it shall apply the pending content as of the beginning of the annual reporting period that includes that interim reporting period. If an entity early adopts the pending content that links to this paragraph, it also shall early adopt the pending content that links to paragraph [606-10-65-3](https://asc.understandingaccounting.org/asc/606/10/#606-10-65-3) simultaneously.
**Transition method**
1. c
An entity shall apply the pending content that links to this paragraph using one of the following transition methods:
1. 1
Prospectively to new contracts entered into on or after the date of adoption.
2. 2
On a modified retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the annual reporting period of adoption for contracts existing as of the beginning of the annual reporting period of adoption.
2. d
If an entity applies the transition method in (c)(2) and the entity had contracts or embedded features that were accounted for as derivatives but are no longer accounted for as derivatives as a result of applying the pending content that links to this paragraph, the entity has an option as of the beginning of the annual reporting period for which the pending content is adopted to elect to apply the fair value option on an instrument-by-instrument basis and measure the contract in its entirety at fair value with changes in fair value recognized in earnings if that instrument is within the scope of paragraph [825-10-15-4](https://asc.understandingaccounting.org/asc/825/10/#825-10-15-4). For financial liabilities, an entity shall present separately in accumulated other comprehensive income the portion of the total change in the fair value of the liability that results from a change in the instrument-specific credit risk. If an entity had previously elected the fair value option for contracts that contained embedded derivatives that otherwise would have been bifurcated but are no longer required to be bifurcated as a result of applying the pending content that links to this paragraph upon adoption, the entity has an option on an instrument-by-instrument basis to revoke the fair value option as of the beginning of the annual reporting period for which the pending content is adopted and measure the contract in accordance with other generally accepted accounting principles. For those instruments for which the entity elects or revokes its election of the fair value option, the effects of initially complying with the pending content that links to this paragraph shall be reported as a cumulative-effect adjustment directly to the opening balance of retained earnings (or other appropriate components of equity or net assets in the statement of financial position) as of the beginning of the annual reporting period in which the pending content is adopted.
**Transition disclosures**
1. e
An entity that applies the transition method in (c)(1) shall disclose the nature of and reason for the change in accounting principle in both the interim reporting period and the annual reporting period in which the entity adopts the pending content that links to this paragraph.
2. f
An entity that applies the transition method in (c)(2) shall disclose the following in both the interim reporting period and the annual reporting period in which the entity adopts the pending content that links to this paragraph:
1. 1
The nature of and reason for the change in accounting principle
2. 2
The cumulative effect of the change on retained earnings or other components of equity or net assets in the statement of financial position as of the beginning of the annual reporting period of adoption and a description of the financial statement line items affected by the adjustment.