# ASC 815-15-15: Derivatives and Hedging — Embedded Derivatives — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/815/15/#15-scope-and-scope-exceptions) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:bdd0d3a84db781ed5451507cb6e3eb427e38014e22bd0315bafb3b59a7649b37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 815-15-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/815/15/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [815-15-15-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:1ed3cb17d190ef0d244ce793a0e79b1149ca72f0c09a6f9637ad82e5cd4cf5d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Instruments ##### [815-15-15-2](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:a560abd1c82798a750adad4f6789a487ea99992050b29032adf5869789b784c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies only to contracts that do not meet the definition of a [derivative instrument](https://asc.understandingaccounting.org/glossary/d/#derivative-instrument "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.") in their entirety. ##### [815-15-15-3](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:dec326062543471b3b0f7a65cdf701bfdeb1bde924866035f7629bb899dd9d2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to any of the following items, as discussed further in this Section: 1. a Normal purchases and normal sales contracts 2. b Unsettled foreign currency transactions 3. c Plain-vanilla servicing rights 4. d Features involving certain aspects of credit risk 5. e Features involving certain currencies. ##### [815-15-15-4](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:b71cf5ea88e737d33718b03232e753f4205af1f3fce071370e09227ac9f8af36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A contract that meets the definition of a derivative instrument in its entirety but qualifies for the normal purchases and normal sales scope exception as discussed beginning in paragraph [815-10-15-22](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-22) shall not also be assessed under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1). ##### [815-15-15-5](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:33f6a422023bc037d8a1b649fdaa6892bb6fa4a6f43478a734957de12d447f60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unsettled foreign currency transactions, including [financial instruments](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity."), shall not be considered to contain embedded foreign currency derivatives under this Subtopic if the transactions meet all of the following criteria: 1. a They are monetary items. 2. b They have their principal payments, interest payments, or both denominated in a foreign currency. 3. c They are subject to the requirement in Subtopic 830-20 to recognize any foreign currency transaction gain or loss in earnings. ##### [815-15-15-6](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:f2f53ae8c334226ef2a8456b6134524eab97380be9f1a40b37c36f4553305c4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The proscription in paragraph [815-15-15-5](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-5) applies to available-for-sale or [trading](https://asc.understandingaccounting.org/glossary/t/#trading "An activity involving securities sold in the near term and held for only a short period of time. The term trading contemplates a holding period generally measured in hours and days rather than months or years. See paragraph 948-310-40-1 for clarification of the term trading for a mortgage banking entity.") debt securities that have cash flows denominated in a foreign currency. ##### [815-15-15-7](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:475c394b722b0c2b2ee6b1ed18bf419c1e20ab58c12e64d11fa07f552a1e8010 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plain-vanilla servicing rights, which involve an obligation to perform servicing and the right to receive fees for performing that servicing, do not contain an [embedded derivative](https://asc.understandingaccounting.org/glossary/e/#embedded-derivative "Implicit or explicit terms that affect some or all of the cash flows or the value of other exchanges required by a contract in a manner similar to a derivative instrument.") that would be separated from those servicing rights and accounted for as a derivative instrument. ##### [815-15-15-8](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:1b6d5bd822c9be853fd4d33c8a416ca007daeb619f3f5b5593ac534f278bdd3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2010-11](https://asc.understandingaccounting.org/updates/asu-2010-11/). ##### [815-15-15-9](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:048b0249a2752d9ee43aaeaa4eb12af1dff06f8f36a74b9c91a70a11caea4f86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The transfer of [credit risk](https://asc.understandingaccounting.org/glossary/c/#credit-risk "For purposes of a hedged item in a fair value hedge, credit risk is the risk of changes in the hedged item's fair value attributable to both of the following: Changes in the obligor's creditworthiness Changes in the spread over the benchmark interest ratewith respect to the hedged item's credit sector at inception of the hedge. For purposes of a hedged transaction in a cash flow hedge, credit risk is the risk of changes in the hedged transaction's cash flows attributable to all of the following: Default Changes in the obligor's creditworthiness Changes in the spread over the contractually specified interest rate or the benchmark interest rate with respect to the related financial asset's or liability's credit sector at inception of the hedge.") that is only in the form of subordination of one financial instrument to another (such as the subordination of one beneficial interest to another tranche of a securitization, thereby redistributing credit risk) is an embedded derivative feature that shall not be subject to the application of paragraph [815-10-15-11](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-11) and Section 815-15-25. Only the [embedded credit derivative](https://asc.understandingaccounting.org/glossary/e/#embedded-credit-derivative "An embedded derivative that is also a credit derivative.") feature created by subordination between the financial instruments is not subject to the application of paragraph [815-10-15-11](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-11) and Section 815-15-25. However, other embedded credit derivative features (for example, those related to credit default swaps on a referenced credit) would be subject to the application of paragraph [815-10-15-11](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-11) and Section 815-15-25 even if their effects are allocated to interests in tranches of securitized financial instruments in accordance with those subordination provisions. Consequently, the following circumstances (among others) would not qualify for the scope exception and are subject to the application of paragraph [815-10-15-11](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-11) and Section 815-15-25 for potential bifurcation: 1. a An embedded derivative feature relating to another type of risk (including another type of credit risk) is present in the securitized financial instruments. 2. b The holder of an interest in a tranche of that securitized financial instrument is exposed to the possibility (however remote) of being required to make potential future payments (not merely receive reduced cash inflows) because the possibility of those future payments is not created by subordination. (Note, however, that the securitized financial instrument may involve other tranches that are not exposed to potential future payments and, thus, those other tranches might qualify for the scope exception.) 3. c The holder owns an interest in a single-tranche securitization vehicle; therefore, the subordination of one tranche to another is not relevant. ##### [815-15-15-10](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:689aad1254f4a256422d69151130c7576972481c7a59f7d9ae072ce52c8f9136 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An embedded foreign currency derivative shall not be separated from the host contract and considered a derivative instrument under paragraph [815-15-25-1](https://asc.understandingaccounting.org/asc/815/15/#815-15-25-1) if all of the following criteria are met: 1. a The host contract is not a financial instrument. 2. b The host contract requires payment(s) denominated in any of the following currencies: 1. 1 The functional currency of any substantial party to that contract 2. 2 The currency in which the price of the related good or service that is acquired or delivered is routinely denominated in international commerce (for example, the U.S. dollar for crude oil transactions) 3. 3 The local currency of any substantial party to the contract 4. 4 The currency used by a substantial party to the contract as if it were the functional currency because the primary economic environment in which the party operates is highly inflationary (as discussed in paragraph [830-10-45-11](https://asc.understandingaccounting.org/asc/830/10/#830-10-45-11)). 3. c Other aspects of the embedded foreign currency derivative are clearly and closely related to the host contract. The evaluation of whether a contract qualifies for the scope exception in this paragraph shall be performed only at inception of the contract. ##### [815-15-15-11](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:d18cd0da66b17d337c7a2f736a104234c27deffe65bfc2b0890f3324ad178a7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The decision about the currency of the primary economic environment in which a counterparty to a contract operates can be based on available information and reasonable assumptions about the counterparty; representations from the counterparty are not required. ##### [815-15-15-12](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:b0e45de58a14684f4d298f60f7cead3e91e89d17d255236c130b1a55ff709bb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When determining who is a substantial party to the contract for purposes of applying paragraph [815-15-15-10(b)(1)](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10), the entity shall do both of the following: 1. a Consider all facts and circumstances pertaining to that contract (including whether the contracting party possesses the requisite knowledge, resources, and technology to fulfill the contract without relying on related parties) 2. b Look through the legal form to evaluate the substance of the underlying relationships. ##### [815-15-15-13](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:78c7c0a9529dbc6967ead832968a102c4f5a8ead58dc829753885a2ed28eac00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 1 (see paragraph [815-15-55-83](https://asc.understandingaccounting.org/asc/815/15/#815-15-55-83)) illustrates the application of this guidance. ##### [815-15-15-14](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:e0d7f388d71572df0f6aaa5cd394306bd4394c897b40e563b3013e42cb792ea1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The application of the phrase _routinely denominated in international commerce_ in paragraph [815-15-15-10(b)(2)](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10) shall be based on how similar transactions for a certain product or service are routinely structured around the world, not just in one local area. If similar transactions for a certain product or service are routinely denominated in international commerce in various different currencies, the scope exception in that paragraph shall not apply to any of those similar transactions. ##### [815-15-15-15](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:ddfd4f29b3ee9df172bf5f4889f341719a0914ebb397e263009ff8957a43fad7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraph [815-15-15-10](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10) relating to embedded foreign currency derivatives within nonfinancial contracts relates to all embedded foreign currency caps or floors within such contracts. That guidance does not relate to all embedded foreign currency options within such contracts (such as an embedded foreign currency option that merely introduces a cap or floor on the functional currency equivalent price under a purchase contract). The embedded foreign currency cap or floor (or combination thereof) within a nonfinancial contract shall be considered clearly and closely related to the host nonfinancial contract, and thus not be accounted for separately as a derivative instrument, only if all of the following criteria are met: 1. a The nonfinancial contract requires payment(s) denominated in any of the currencies permitted by paragraphs [815-15-15-10(b)](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10). 2. b The embedded cap or floor (or combination thereof) does not contain leverage features. 3. c The embedded cap or floor (or combination thereof) does not represent a written or net written option. ##### [815-15-15-16](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:78db6f26dce4e03c5473eb93f9e81444abf1fe30e503084ff82694c722a7e3f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When an embedded cap or floor (or combination thereof) represents a purchased or net purchased option to one party to the contract, it represents a written or net written option to the counterparty to that contract. In that circumstance, that counterparty does not qualify for the paragraph [815-15-15-10](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10) exclusion because the criterion in (c) in the preceding paragraph would not be met (due to the embedded foreign currency cap or floor \[or combination thereof\] representing a written or net written option). ##### [815-15-15-17](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:25afbad91c75aa3e164c01d4fd4a2f57abca1dae75c0a87ee70c5c00a4ccc26f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the embedded derivative represented a zero-cost collar (as described beginning in paragraph [815-20-25-88](https://asc.understandingaccounting.org/asc/815/20/#815-20-25-88)), both parties to the contract would meet the criterion in paragraph [815-15-15-15(c)](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-15) and be eligible to qualify for the exclusion in paragraph [815-15-15-10](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10). ##### [815-15-15-18](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:f3b06266c384a21626139e39c2f05568ad8ade78e81d277b05883e12c16aef99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a financial or nonfinancial contract contained an option that allowed the payer to remit funds in an equivalent amount of a currency other than the functional currency of a substantial party to the contract at the payment date, that option shall not be separated from the host contract because the option merely allows the payer to make an equivalent payment in a choice of currencies (based on current spot prices). ##### [815-15-15-19](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:85d4bc4091a26666fddf9cd1a8f554eb67be6e0046c79392350e9cbf9898ff00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in paragraphs [815-15-15-15 through 15-18](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-15) is not meant to address every possible type of foreign currency option that may be embedded in a nonfinancial contract, and an analogy to that guidance may not be appropriate for such foreign currency options. ##### [815-15-15-20](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-20) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:50bb056821962b9223f725e9a619a01a86fc7decfffea2ef0b27c90971b4ff82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although the scope exception in paragraph [815-15-15-10](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10) does not apply to financial instruments, that paragraph applies if a normal insurance contract involves payment in the functional currency of either of the two parties to the contract. ##### [815-15-15-21](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-21) Pending content: no Source downloaded (UTC): 2026-09-10T01:36:03.191Z to 2026-09-10T01:36:03.191Z Record version: sha256:d39e7b41641a3adfd685dcfa34c07a4153a92562fa3933758ac29522097ed6c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-15-15-10](https://asc.understandingaccounting.org/asc/815/15/#815-15-15-10) applies also to a normal insurance contract if it involves payment in the local currency of the country in which the loss is incurred, irrespective of the functional currencies of the parties to the transaction.